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Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements | 6 Months Ended | 12 Months Ended
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Jun. 30, 2015 | Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |  |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements 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 due in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026. 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 McGraw Hill Financial, Inc., Standard & Poor's Financial Services LLC, and the Non-Guarantor Subsidiaries of McGraw Hill Financial, Inc. and Standard & Poor's Financial Services LLC, and the eliminations necessary to arrive at the information for the Company on a consolidated basis.
| Statement of Income
| Three Months Ended June 30, 2015
| (Unaudited)
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Revenue | $ | 161 |  |  | $ | 573 |  |  | $ | 636 |  |  | $ | (28 | ) |  | $ | 1,342 |
Expenses: |  |  |  |  |  |  |  |  |
Operating-related expenses | 21 |  |  | 154 |  |  | 259 |  |  | (28 | ) |  | 406 |
Selling and general expenses | 1 |  |  | 101 |  |  | 230 |  |  | — |  |  | 332 |
Depreciation | 10 |  |  | 5 |  |  | 7 |  |  | — |  |  | 22 |
Amortization of intangibles | 1 |  |  | — |  |  | 10 |  |  | — |  |  | 11 |
Total expenses | 33 |  |  | 260 |  |  | 506 |  |  | (28 | ) |  | 771 |
Other income | — |  |  | — |  |  | (11 | ) |  | — |  |  | (11 | )
Operating profit | 128 |  |  | 313 |  |  | 141 |  |  | — |  |  | 582 |
Interest expense (income), net | 20 |  |  | — |  |  | (4 | ) |  | — |  |  | 16 |
Non-operating intercompany transactions | 71 |  |  | 59 |  |  | (130 | ) |  | — |  |  | — |
Income from continuing operations before taxes on income | 37 |  |  | 254 |  |  | 275 |  |  | — |  |  | 566 |
Provision for taxes on income | 11 |  |  | 99 |  |  | 75 |  |  | — |  |  | 185 |
Equity in net income of subsidiaries | 338 |  |  | 68 |  |  | — |  |  | (406 | ) |  | — |
Net income | $ | 364 |  |  | $ | 223 |  |  | $ | 200 |  |  | $ | (406 | ) |  | $ | 381 |
Less: net income from continuing operations attributable to noncontrolling interests | — |  |  | — |  |  | — |  |  | (28 | ) |  | (28 | )
Net income attributable to McGraw Hill Financial, Inc. | $ | 364 |  |  | $ | 223 |  |  | $ | 200 |  |  | $ | (434 | ) |  | $ | 353 |
Comprehensive income | $ | 384 |  |  | $ | 222 |  |  | $ | 262 |  |  | $ | (405 | ) |  | $ | 463 |
| Statement of Income
| Six Months Ended June 30, 2015
| (Unaudited)
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Revenue | $ | 317 |  |  | $ | 1,117 |  |  | $ | 1,237 |  |  | $ | (56 | ) |  | $ | 2,615 |
Expenses: |  |  |  |  |  |  |  |  |
Operating-related expenses | 53 |  |  | 311 |  |  | 504 |  |  | (56 | ) |  | 812 |
Selling and general expenses | 67 |  |  | 162 |  |  | 436 |  |  | — |  |  | 665 |
Depreciation | 19 |  |  | 10 |  |  | 14 |  |  | — |  |  | 43 |
Amortization of intangibles | 2 |  |  | — |  |  | 21 |  |  | — |  |  | 23 |
Total expenses | 141 |  |  | 483 |  |  | 975 |  |  | (56 | ) |  | 1,543 |
Other income | — |  |  | — |  |  | (11 | ) |  | — |  |  | (11 | )
Operating profit | 176 |  |  | 634 |  |  | 273 |  |  | — |  |  | 1,083 |
Interest expense (income), net | 37 |  |  | — |  |  | (5 | ) |  | — |  |  | 32 |
Non-operating intercompany transactions | 129 |  |  | 91 |  |  | (220 | ) |  | — |  |  | — |
Income from continuing operations before taxes on income | 10 |  |  | 543 |  |  | 498 |  |  | — |  |  | 1,051 |
Provision for taxes on income | 17 |  |  | 190 |  |  | 133 |  |  | — |  |  | 340 |
Equity in net income of subsidiaries | 703 |  |  | 134 |  |  | — |  |  | (837 | ) |  | — |
Net income | $ | 696 |  |  | $ | 487 |  |  | $ | 365 |  |  | $ | (837 | ) |  | $ | 711 |
Less: net income from continuing operations attributable to noncontrolling interests | — |  |  | — |  |  | — |  |  | (55 | ) |  | (55 | )
Net income attributable to McGraw Hill Financial, Inc. | $ | 696 |  |  | $ | 487 |  |  | $ | 365 |  |  | $ | (892 | ) |  | $ | 656 |
Comprehensive income | $ | 710 |  |  | $ | 486 |  |  | $ | 357 |  |  | $ | (839 | ) |  | $ | 714 |
| Statement of Income
| Three Months Ended June 30, 2014
| (Unaudited)
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Revenue | $ | 148 |  |  | $ | 542 |  |  | $ | 640 |  |  | $ | (28 | ) |  | $ | 1,302 |
Expenses: |  |  |  |  |  |  |  |  |
Operating-related expenses | 21 |  |  | 164 |  |  | 250 |  |  | (28 | ) |  | 407 |
Selling and general expenses | 27 |  |  | 132 |  |  | 217 |  |  | — |  |  | 376 |
Depreciation | 11 |  |  | 4 |  |  | 7 |  |  | — |  |  | 22 |
Amortization of intangibles | 1 |  |  | — |  |  | 11 |  |  | — |  |  | 12 |
Total expenses | 60 |  |  | 300 |  |  | 485 |  |  | (28 | ) |  | 817 |
Other loss | 3 |  |  | — |  |  | 6 |  |  | — |  |  | 9 |
Operating profit | 85 |  |  | 242 |  |  | 149 |  |  | — |  |  | 476 |
Interest expense (income), net | 15 |  |  | — |  |  | (1 | ) |  | — |  |  | 14 |
Non-operating intercompany transactions | 15 |  |  | 7 |  |  | (22 | ) |  | — |  |  | — |
Income from continuing operations before taxes on income | 55 |  |  | 235 |  |  | 172 |  |  | — |  |  | 462 |
Provision for taxes on income | 21 |  |  | 86 |  |  | 45 |  |  | — |  |  | 152 |
Equity in net income of subsidiaries | 241 |  |  | 58 |  |  | — |  |  | (299 | ) |  | — |
Income from continuing operations | 275 |  |  | 207 |  |  | 127 |  |  | (299 | ) |  | 310 |
Income from discontinued operations, net of tax | 6 |  |  | — |  |  | — |  |  | — |  |  | 6 |
Net income | $ | 281 |  |  | $ | 207 |  |  | $ | 127 |  |  | $ | (299 | ) |  | $ | 316 |
Less: net income from continuing operations attributable to noncontrolling interests | — |  |  | — |  |  | — |  |  | (24 | ) |  | (24 | )
Net income attributable to McGraw Hill Financial, Inc. | $ | 281 |  |  | $ | 207 |  |  | $ | 127 |  |  | $ | (323 | ) |  | $ | 292 |
Comprehensive income | $ | 240 |  |  | $ | 208 |  |  | $ | 146 |  |  | $ | (302 | ) |  | $ | 292 |
| Statement of Income
| Six Months Ended June 30, 2014
| (Unaudited)
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Revenue | $ | 294 |  |  | $ | 1,028 |  |  | $ | 1,233 |  |  | $ | (57 | ) |  | $ | 2,498 |
Expenses: |  |  |  |  |  |  |  |  |
Operating-related expenses | 40 |  |  | 315 |  |  | 505 |  |  | (57 | ) |  | 803 |
Selling and general expenses | 92 |  |  | 237 |  |  | 395 |  |  | — |  |  | 724 |
Depreciation | 20 |  |  | 9 |  |  | 13 |  |  | — |  |  | 42 |
Amortization of intangibles | 2 |  |  | — |  |  | 22 |  |  | — |  |  | 24 |
Total expenses | 154 |  |  | 561 |  |  | 935 |  |  | (57 | ) |  | 1,593 |
Other loss | 3 |  |  | — |  |  | 6 |  |  | — |  |  | 9 |
Operating profit | 137 |  |  | 467 |  |  | 292 |  |  | — |  |  | 896 |
Interest expense (income), net | 31 |  |  | — |  |  | (3 | ) |  | — |  |  | 28 |
Non-operating intercompany transactions | 74 |  |  | 14 |  |  | (88 | ) |  | — |  |  | — |
Income from continuing operations before taxes on income | 32 |  |  | 453 |  |  | 383 |  |  | — |  |  | 868 |
Provision for taxes on income | 13 |  |  | 173 |  |  | 104 |  |  | — |  |  | 290 |
Equity in net income of subsidiaries | 500 |  |  | 124 |  |  | — |  |  | (624 | ) |  | — |
Income from continuing operations | 519 |  |  | 404 |  |  | 279 |  |  | (624 | ) |  | 578 |
Income from discontinued operations, net of tax | 12 |  |  | — |  |  | — |  |  | — |  |  | 12 |
Net income | $ | 531 |  |  | $ | 404 |  |  | $ | 279 |  |  | $ | (624 | ) |  | $ | 590 |
Less: net income from continuing operations attributable to noncontrolling interests | — |  |  | — |  |  | — |  |  | (50 | ) |  | (50 | )
Net income attributable to McGraw Hill Financial, Inc. | $ | 531 |  |  | $ | 404 |  |  | $ | 279 |  |  | $ | (674 | ) |  | $ | 540 |
Comprehensive income | $ | 515 |  |  | $ | 380 |  |  | $ | 305 |  |  | $ | (628 | ) |  | $ | 572 |
| Balance Sheet
| June 30, 2015
| (Unaudited)
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
ASSETS |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |
Cash and equivalents | $ | 531 |  |  | $ | — |  |  | $ | 1,189 |  |  | $ | — |  |  | $ | 1,720 |
Accounts receivable, net of allowance for doubtful accounts | 118 |  |  | 318 |  |  | 627 |  |  | — |  |  | 1,063 |
Intercompany receivable | 246 |  |  | 1,114 |  |  | 1,304 |  |  | (2,664 | ) |  | — |
Deferred income taxes | 72 |  |  | 173 |  |  | (42 | ) |  | — |  |  | 203 |
Prepaid and other current assets | 74 |  |  | 30 |  |  | 123 |  |  | — |  |  | 227 |
Total current assets | 1,041 |  |  | 1,635 |  |  | 3,201 |  |  | (2,664 | ) |  | 3,213 |
Property and equipment, net of accumulated depreciation | 113 |  |  | 3 |  |  | 92 |  |  | — |  |  | 208 |
Goodwill | 107 |  |  | 41 |  |  | 1,226 |  |  | 9 |  |  | 1,383 |
Other intangible assets, net | 12 |  |  | — |  |  | 968 |  |  | (3 | ) |  | 977 |
Asset for pension benefits | — |  |  | — |  |  | 58 |  |  | — |  |  | 58 |
Investments in subsidiaries | 2,516 |  |  | 695 |  |  | 7,227 |  |  | (10,438 | ) |  | — |
Intercompany loans receivable | 17 |  |  | 361 |  |  | 1,816 |  |  | (2,194 | ) |  | — |
Other non-current assets | 73 |  |  | 20 |  |  | 81 |  |  | — |  |  | 174 |
Total assets | $ | 3,879 |  |  | $ | 2,755 |  |  | $ | 14,669 |  |  | $ | (15,290 | ) |  | $ | 6,013 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |
Accounts payable | $ | 53 |  |  | $ | 46 |  |  | $ | 82 |  |  | $ | — |  |  | $ | 181 |
Intercompany payable | 1,280 |  |  | 611 |  |  | 772 |  |  | (2,663 | ) |  | — |
Accrued compensation and contributions to retirement plans | 106 |  |  | 53 |  |  | 105 |  |  | — |  |  | 264 |
Income taxes currently payable | — |  |  | — |  |  | 51 |  |  | — |  |  | 51 |
Unearned revenue | 270 |  |  | 600 |  |  | 517 |  |  | — |  |  | 1,387 |
Accrued legal and regulatory settlements | — |  |  | 23 |  |  | — |  |  | — |  |  | 23 |
Other current liabilities | 156 |  |  | 9 |  |  | 169 |  |  | — |  |  | 334 |
Total current liabilities | 1,865 |  |  | 1,342 |  |  | 1,696 |  |  | (2,663 | ) |  | 2,240 |
Long-term debt | 1,494 |  |  | — |  |  | — |  |  | — |  |  | 1,494 |
Intercompany loans payable | 22 |  |  | — |  |  | 2,173 |  |  | (2,195 | ) |  | — |
Pension and postretirement benefits | 226 |  |  | — |  |  | 59 |  |  | — |  |  | 285 |
Deferred income taxes | (226 | ) |  | 52 |  |  | 261 |  |  | — |  |  | 87 |
Other non-current liabilities | 322 |  |  | 9 |  |  | (49 | ) |  | — |  |  | 282 |
Total liabilities | 3,703 |  |  | 1,403 |  |  | 4,140 |  |  | (4,858 | ) |  | 4,388 |
Redeemable noncontrolling interest | — |  |  | — |  |  | — |  |  | 810 |  |  | 810 |
Equity: |  |  |  |  |  |  |  |  |
Common stock | 412 |  |  | — |  |  | 2,316 |  |  | (2,316 | ) |  | 412 |
Additional paid-in capital | (201 | ) |  | 1,166 |  |  | 7,078 |  |  | (7,608 | ) |  | 435 |
Retained income | 7,281 |  |  | 186 |  |  | 1,382 |  |  | (1,411 | ) |  | 7,438 |
Accumulated other comprehensive loss | (305 | ) |  | — |  |  | (244 | ) |  | 38 |  |  | (511 | )
Less: common stock in treasury | (7,011 | ) |  | — |  |  | (4 | ) |  | 4 |  |  | (7,011 | )
Total equity - controlling interests | 176 |  |  | 1,352 |  |  | 10,528 |  |  | (11,293 | ) |  | 763 |
Total equity - noncontrolling interests | — |  |  | — |  |  | 1 |  |  | 51 |  |  | 52 |
Total equity | 176 |  |  | 1,352 |  |  | 10,529 |  |  | (11,242 | ) |  | 815 |
Total liabilities and equity | $ | 3,879 |  |  | $ | 2,755 |  |  | $ | 14,669 |  |  | $ | (15,290 | ) |  | $ | 6,013 |
| Balance Sheet
| December 31, 2014
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
ASSETS |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |
Cash and equivalents | $ | 1,402 |  |  | $ | — |  |  | $ | 1,095 |  |  | $ | — |  |  | $ | 2,497 |
Accounts receivable, net of allowance for doubtful accounts | 120 |  |  | 293 |  |  | 519 |  |  | — |  |  | 932 |
Intercompany receivable | 525 |  |  | 2,125 |  |  | 1,998 |  |  | (4,648 | ) |  | — |
Deferred income taxes | 72 |  |  | 334 |  |  | (43 | ) |  | — |  |  | 363 |
Prepaid and other current assets | 80 |  |  | 27 |  |  | 67 |  |  | — |  |  | 174 |
Total current assets | 2,199 |  |  | 2,779 |  |  | 3,636 |  |  | (4,648 | ) |  | 3,966 |
Property and equipment, net of accumulated depreciation | 111 |  |  | 5 |  |  | 90 |  |  | — |  |  | 206 |
Goodwill | 109 |  |  | 41 |  |  | 1,228 |  |  | 9 |  |  | 1,387 |
Other intangible assets, net | 13 |  |  | — |  |  | 991 |  |  | — |  |  | 1,004 |
Asset for pension benefits | — |  |  | — |  |  | 28 |  |  | — |  |  | 28 |
Investments in subsidiaries | 1,258 |  |  | 653 |  |  | 7,125 |  |  | (9,036 | ) |  | — |
Intercompany loans receivable | 19 |  |  | 358 |  |  | 1,595 |  |  | (1,972 | ) |  | — |
Other non-current assets | 81 |  |  | 25 |  |  | 74 |  |  | — |  |  | 180 |
Total assets | $ | 3,790 |  |  | $ | 3,861 |  |  | $ | 14,767 |  |  | $ | (15,647 | ) |  | $ | 6,771 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |
Accounts payable | $ | 59 |  |  | $ | 45 |  |  | $ | 87 |  |  | $ | — |  |  | $ | 191 |
Intercompany payable | 2,566 |  |  | 617 |  |  | 1,376 |  |  | (4,559 | ) |  | — |
Accrued compensation and contributions to retirement plans | 133 |  |  | 121 |  |  | 156 |  |  | — |  |  | 410 |
Income taxes currently payable | 15 |  |  | 1 |  |  | 16 |  |  | — |  |  | 32 |
Unearned revenue | 259 |  |  | 585 |  |  | 479 |  |  | — |  |  | 1,323 |
Accrued legal and regulatory settlements | — |  |  | 1,609 |  |  | — |  |  | — |  |  | 1,609 |
Other current liabilities | 194 |  |  | — |  |  | 208 |  |  | — |  |  | 402 |
Total current liabilities | 3,226 |  |  | 2,978 |  |  | 2,322 |  |  | (4,559 | ) |  | 3,967 |
Long-term debt | 799 |  |  | — |  |  | — |  |  | — |  |  | 799 |
Intercompany loans payable | 109 |  |  | — |  |  | 1,952 |  |  | (2,061 | ) |  | — |
Pension and postretirement benefits | 272 |  |  | — |  |  | 61 |  |  | — |  |  | 333 |
Deferred income taxes | (245 | ) |  | 51 |  |  | 250 |  |  | — |  |  | 56 |
Other non-current liabilities | 219 |  |  | 8 |  |  | 40 |  |  | — |  |  | 267 |
Total liabilities | 4,380 |  |  | 3,037 |  |  | 4,625 |  |  | (6,620 | ) |  | 5,422 |
Redeemable noncontrolling interest | — |  |  | — |  |  | — |  |  | 810 |  |  | 810 |
Equity: |  |  |  |  |  |  |  |  |
Common stock | 412 |  |  | — |  |  | 2,316 |  |  | (2,316 | ) |  | 412 |
Additional paid-in capital | (116 | ) |  | 1,153 |  |  | 7,016 |  |  | (7,560 | ) |  | 493 |
Retained income | 6,282 |  |  | (329 | ) |  | 1,053 |  |  | (60 | ) |  | 6,946 |
Accumulated other comprehensive loss | (319 | ) |  | — |  |  | (236 | ) |  | 41 |  |  | (514 | )
Less: common stock in treasury | (6,849 | ) |  | — |  |  | (7 | ) |  | 7 |  |  | (6,849 | )
Total equity - controlling interests | (590 | ) |  | 824 |  |  | 10,142 |  |  | (9,888 | ) |  | 488 |
Total equity - noncontrolling interests | — |  |  | — |  |  | — |  |  | 51 |  |  | 51 |
Total equity | (590 | ) |  | 824 |  |  | 10,142 |  |  | (9,837 | ) |  | 539 |
Total liabilities and equity | $ | 3,790 |  |  | $ | 3,861 |  |  | $ | 14,767 |  |  | $ | (15,647 | ) |  | $ | 6,771 |
| Statement of Cash Flows
| Six Months Ended June 30, 2015
| (Unaudited)
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Operating Activities: |  |  |  |  |  |  |  |  |
Net income | $ | 696 |  |  | $ | 487 |  |  | $ | 365 |  |  | $ | (837 | ) |  | $ | 711 |
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations: |  |  |  |  |  |  |  |  |
Depreciation | 19 |  |  | 10 |  |  | 14 |  |  | — |  |  | 43 |
Amortization of intangibles | 2 |  |  | — |  |  | 21 |  |  | — |  |  | 23 |
Provision for losses on accounts receivable | — |  |  | (2 | ) |  | 6 |  |  | — |  |  | 4 |
Deferred income taxes | (138 | ) |  | 161 |  |  | 143 |  |  | — |  |  | 166 |
Stock-based compensation | 11 |  |  | 11 |  |  | 15 |  |  | — |  |  | 37 |
Other | 6 |  |  | 10 |  |  | 6 |  |  | — |  |  | 22 |
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: |  |  |  |  |  |  |  |  |
Accounts receivable | 1 |  |  | (23 | ) |  | (114 | ) |  | — |  |  | (136 | )
Prepaid and current assets | 32 |  |  | (3 | ) |  | (53 | ) |  | — |  |  | (24 | )
Accounts payable and accrued expenses | (99 | ) |  | (43 | ) |  | (115 | ) |  | — |  |  | (257 | )
Unearned revenue | 11 |  |  | 15 |  |  | 45 |  |  | — |  |  | 71 |
Accrued legal and regulatory settlements | — |  |  | (1,609 | ) |  | — |  |  | — |  |  | (1,609 | )
Other current liabilities | (31 | ) |  | (3 | ) |  | (2 | ) |  | — |  |  | (36 | )
Net change in prepaid/accrued income taxes | 108 |  |  | — |  |  | 11 |  |  | — |  |  | 119 |
Net change in other assets and liabilities | 62 |  |  | 3 |  |  | (96 | ) |  | — |  |  | (31 | )
Cash provided by (used for) operating activities from continuing operations | 680 |  |  | (986 | ) |  | 246 |  |  | (837 | ) |  | (897 | )
Investing Activities: |  |  |  |  |  |  |  |  |
Capital expenditures | (18 | ) |  | (4 | ) |  | (20 | ) |  | — |  |  | (42 | )
Acquisitions, net of cash acquired | — |  |  | — |  |  | (2 | ) |  | — |  |  | (2 | )
Proceeds from dispositions | — |  |  | — |  |  | 14 |  |  | — |  |  | 14 |
Changes in short-term investments | — |  |  | — |  |  | (7 | ) |  | — |  |  | (7 | )
Cash used for investing activities from continuing operations | (18 | ) |  | (4 | ) |  | (15 | ) |  | — |  |  | (37 | )
Financing Activities: |  |  |  |  |  |  |  |  |
Proceeds from issuance of senior notes, net | 690 |  |  | — |  |  | — |  |  | — |  |  | 690 |
Dividends paid to shareholders | (185 | ) |  | — |  |  | — |  |  | — |  |  | (185 | )
Dividends and other payments paid to noncontrolling interests | — |  |  | — |  |  | (49 | ) |  | — |  |  | (49 | )
Repurchase of treasury shares | (274 | ) |  | — |  |  | — |  |  | — |  |  | (274 | )
Exercise of stock options | 71 |  |  | — |  |  | 2 |  |  | — |  |  | 73 |
Excess tax benefits from share-based payments | 38 |  |  | — |  |  | — |  |  | — |  |  | 38 |
Intercompany financing activities | (1,870 | ) |  | 990 |  |  | 43 |  |  | 837 |  |  | — |
Cash (used for) provided by financing activities from continuing operations | (1,530 | ) |  | 990 |  |  | (4 | ) |  | 837 |  |  | 293 |
Effect of exchange rate changes on cash from continuing operations | (3 | ) |  | — |  |  | (4 | ) |  | — |  |  | (7 | )
Cash (used for) provided by continuing operations | (871 | ) |  | — |  |  | 223 |  |  | — |  |  | (648 | )
Discontinued Operations: |  |  |  |  |  |  |  |  |
Cash used for operating activities | — |  |  | — |  |  | (129 | ) |  | — |  |  | (129 | )
Cash used for discontinued operations | — |  |  | — |  |  | (129 | ) |  | — |  |  | (129 | )
Net change in cash and equivalents | (871 | ) |  | — |  |  | 94 |  |  | — |  |  | (777 | )
Cash and equivalents at beginning of period | 1,402 |  |  | — |  |  | 1,095 |  |  | — |  |  | 2,497 |
Cash and equivalents at end of period | $ | 531 |  |  | $ | — |  |  | $ | 1,189 |  |  | $ | — |  |  | $ | 1,720 |
| Statement of Cash Flows
| Six Months Ended June 30, 2014
| (Unaudited)
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Operating Activities: |  |  |  |  |  |  |  |  |
Net income | $ | 531 |  |  | $ | 404 |  |  | $ | 279 |  |  | $ | (624 | ) |  | $ | 590 |
Less: discontinued operations, net | 12 |  |  | — |  |  | — |  |  | — |  |  | 12 |
Income from continuing operations | 519 |  |  | 404 |  |  | 279 |  |  | (624 | ) |  | 578 |
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations: |  |  |  |  |  |  |  |  |
Depreciation | 20 |  |  | 9 |  |  | 13 |  |  | — |  |  | 42 |
Amortization of intangibles | 2 |  |  | — |  |  | 22 |  |  | — |  |  | 24 |
Provision for losses on accounts receivable | (1 | ) |  | (3 | ) |  | 4 |  |  | — |  |  | — |
Deferred income taxes | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Stock-based compensation | 16 |  |  | 15 |  |  | 16 |  |  | — |  |  | 47 |
Other | (3 | ) |  | — |  |  | 11 |  |  | — |  |  | 8 |
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: |  |  |  |  |  |  |  |  |
Accounts receivable | 1 |  |  | 41 |  |  | (53 | ) |  | — |  |  | (11 | )
Prepaid and current assets | (11 | ) |  | (4 | ) |  | 4 |  |  | — |  |  | (11 | )
Accounts payable and accrued expenses | (125 | ) |  | (110 | ) |  | (13 | ) |  | — |  |  | (248 | )
Unearned revenue | (12 | ) |  | (3 | ) |  | 30 |  |  | — |  |  | 15 |
Other current liabilities | (34 | ) |  | (8 | ) |  | (27 | ) |  | — |  |  | (69 | )
Net change in prepaid/accrued income taxes | 111 |  |  | 3 |  |  | (3 | ) |  | — |  |  | 111 |
Net change in other assets and liabilities | (10 | ) |  | 2 |  |  | (34 | ) |  | — |  |  | (42 | )
Cash provided by operating activities from continuing operations | 473 |  |  | 346 |  |  | 251 |  |  | (624 | ) |  | 446 |
Investing Activities: |  |  |  |  |  |  |  |  |
Capital expenditures | (9 | ) |  | (9 | ) |  | (19 | ) |  | — |  |  | (37 | )
Acquisitions, net of cash acquired | — |  |  | — |  |  | (16 | ) |  | — |  |  | (16 | )
Changes in short-term investments | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Cash used for investing activities from continuing operations | (9 | ) |  | (9 | ) |  | (34 | ) |  | — |  |  | (52 | )
Financing Activities: |  |  |  |  |  |  |  |  |
Dividends paid to shareholders | (164 | ) |  | — |  |  | — |  |  | — |  |  | (164 | )
Dividends and other payments paid to noncontrolling interests | — |  |  | — |  |  | (30 | ) |  | — |  |  | (30 | )
Contingent consideration payments | — |  |  | — |  |  | (11 | ) |  | — |  |  | (11 | )
Repurchase of treasury shares | (362 | ) |  | — |  |  | — |  |  | — |  |  | (362 | )
Exercise of stock options | 130 |  |  | — |  |  | 3 |  |  | — |  |  | 133 |
Excess tax benefits from share-based payments | 82 |  |  | — |  |  | — |  |  | — |  |  | 82 |
Intercompany financing activities | (200 | ) |  | (337 | ) |  | (87 | ) |  | 624 |  |  | — |
Cash used for financing activities from continuing operations | (514 | ) |  | (337 | ) |  | (125 | ) |  | 624 |  |  | (352 | )
Effect of exchange rate changes on cash from continuing operations | — |  |  | — |  |  | 19 |  |  | — |  |  | 19 |
Cash (used for) provided by continuing operations | (50 | ) |  | — |  |  | 111 |  |  | — |  |  | 61 |
Discontinued Operations: |  |  |  |  |  |  |  |  |
Cash provided by operating activities | 14 |  |  | — |  |  | — |  |  | — |  |  | 14 |
Cash provided by discontinued operations | 14 |  |  | — |  |  | — |  |  | — |  |  | 14 |
Net change in cash and equivalents | (36 | ) |  | — |  |  | 111 |  |  | — |  |  | 75 |
Cash and equivalents at beginning of period | 685 |  |  | — |  |  | 857 |  |  | — |  |  | 1,542 |
Cash and equivalents at end of period | $ | 649 |  |  | $ | — |  |  | $ | 968 |  |  | $ | — |  |  | $ | 1,617 |
| Condensed Consolidating Financial Statements 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 due in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026. 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 McGraw Hill Financial, Inc., Standard & Poor's Financial Services LLC, and the Non-Guarantor Subsidiaries of McGraw Hill Financial, 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, 2014
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Revenue | $ | 598 |  |  | $ | 2,043 |  |  | $ | 2,525 |  |  | $ | (115 | ) |  | $ | 5,051 |
Expenses: |  |  |  |  |  |  |  |  |
Operating-related expenses | 78 |  |  | 389 |  |  | 1,275 |  |  | (115 | ) |  | 1,627 |
Selling and general expenses | 296 |  |  | 2,350 |  |  | 522 |  |  | — |  |  | 3,168 |
Depreciation | 41 |  |  | 17 |  |  | 28 |  |  | — |  |  | 86 |
Amortization of intangibles | 4 |  |  | — |  |  | 44 |  |  | — |  |  | 48 |
Total expenses | 419 |  |  | 2,756 |  |  | 1,869 |  |  | (115 | ) |  | 4,929 |
Other loss | 3 |  |  | — |  |  | 6 |  |  | — |  |  | 9 |
Operating profit (loss) | 176 |  |  | (713 | ) |  | 650 |  |  | — |  |  | 113 |
Interest expense (income), net | 66 |  |  | — |  |  | (7 | ) |  | — |  |  | 59 |
Non-operating intercompany transactions | 193 |  |  | 38 |  |  | (231 | ) |  | — |  |  | — |
(Loss) income from continuing operations before taxes on income | (83 | ) |  | (751 | ) |  | 888 |  |  | — |  |  | 54 |
(Benefit) provision for taxes on income | (22 | ) |  | 16 |  |  | 251 |  |  | — |  |  | 245 |
Equity in net (loss) income of subsidiaries | (443 | ) |  | 248 |  |  | — |  |  | 195 |  |  | — |
(Loss) income from continuing operations | (504 | ) |  | (519 | ) |  | 637 |  |  | 195 |  |  | (191 | )
Discontinued operations, net of tax: |  |  |  |  |  |  |  |  |
Income from discontinued operations | 18 |  |  | — |  |  | — |  |  | — |  |  | 18 |
Gain on sale of discontinued operations | 160 |  |  | — |  |  | — |  |  | — |  |  | 160 |
Discontinued operations, net | 178 |  |  | — |  |  | — |  |  | — |  |  | 178 |
Net (loss) income | $ | (326 | ) |  | $ | (519 | ) |  | $ | 637 |  |  | $ | 195 |  |  | (13 | )
Less: net income from continuing operations attributable to noncontrolling interests | — |  |  | — |  |  | — |  |  | (102 | ) |  | (102 | )
Net (loss) income attributable to McGraw Hill Financial, Inc. | $ | (326 | ) |  | $ | (519 | ) |  | $ | 637 |  |  | $ | 93 |  |  | $ | (115 | )
Comprehensive (loss) income | $ | (495 | ) |  | $ | (544 | ) |  | $ | 513 |  |  | $ | 195 |  |  | $ | (331 | )
| Statement of Income
| Year Ended December 31, 2013
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Revenue | $ | 570 |  |  | $ | 1,931 |  |  | $ | 2,306 |  |  | $ | (105 | ) |  | $ | 4,702 |
Expenses: |  |  |  |  |  |  |  |  |
Operating-related expenses | 128 |  |  | 556 |  |  | 985 |  |  | (105 | ) |  | 1,564 |
Selling and general expenses | 338 |  |  | 532 |  |  | 761 |  |  | — |  |  | 1,631 |
Depreciation | 40 |  |  | 19 |  |  | 27 |  |  | — |  |  | 86 |
Amortization of intangibles | 5 |  |  | — |  |  | 46 |  |  | — |  |  | 51 |
Total expenses | 511 |  |  | 1,107 |  |  | 1,819 |  |  | (105 | ) |  | 3,332 |
Other loss (income) | 25 |  |  | 3 |  |  | (16 | ) |  | — |  |  | 12 |
Operating profit | 34 |  |  | 821 |  |  | 503 |  |  | — |  |  | 1,358 |
Interest expense (income), net | 65 |  |  | — |  |  | (6 | ) |  | — |  |  | 59 |
Non-operating intercompany transactions | 245 |  |  | 66 |  |  | (311 | ) |  | — |  |  | — |
Income from continuing operations before taxes on income | (276 | ) |  | 755 |  |  | 820 |  |  | — |  |  | 1,299 |
(Benefit) provision for taxes on income | (121 | ) |  | 283 |  |  | 263 |  |  | — |  |  | 425 |
Equity in net income of subsidiaries | 1,937 |  |  | 197 |  |  | — |  |  | (2,134 | ) |  | — |
Income from continuing operations | 1,782 |  |  | 669 |  |  | 557 |  |  | (2,134 | ) |  | 874 |
Discontinued operations, net of tax: |  |  |  |  |  |  |  |  |
Income (loss) from discontinued operations | 82 |  |  | — |  |  | (79 | ) |  | — |  |  | 3 |
Gain (loss) on sale of discontinued operations | 644 |  |  | — |  |  | (55 | ) |  | — |  |  | 589 |
Discontinued operations, net | 726 |  |  | — |  |  | (134 | ) |  | — |  |  | 592 |
Net income | $ | 2,508 |  |  | $ | 669 |  |  | $ | 423 |  |  | $ | (2,134 | ) |  | $ | 1,466 |
Less: net income from continuing operations attributable to noncontrolling interests | — |  |  | — |  |  | — |  |  | (91 | ) |  | (91 | )
Less: net loss from discontinued operations attributable to noncontrolling interests | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Net income attributable to McGraw Hill Financial, Inc. | $ | 2,508 |  |  | $ | 669 |  |  | $ | 423 |  |  | $ | (2,224 | ) |  | $ | 1,376 |
Comprehensive income | $ | 2,773 |  |  | $ | 669 |  |  | $ | 452 |  |  | $ | (2,106 | ) |  | $ | 1,788 |
| Statement of Income
| Year Ended December 31, 2012
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Revenue | $ | 522 |  |  | $ | 1,964 |  |  | $ | 1,889 |  |  | $ | (105 | ) |  | $ | 4,270 |
Expenses: |  |  |  |  |  |  |  |  |
Operating-related expenses | 83 |  |  | 587 |  |  | 868 |  |  | (105 | ) |  | 1,433 |
Selling and general expenses | 360 |  |  | 504 |  |  | 714 |  |  | — |  |  | 1,578 |
Depreciation | 45 |  |  | 19 |  |  | 29 |  |  | — |  |  | 93 |
Amortization of intangibles | 6 |  |  | — |  |  | 42 |  |  | — |  |  | 48 |
Total expenses | 494 |  |  | 1,110 |  |  | 1,653 |  |  | (105 | ) |  | 3,152 |
Other income | (52 | ) |  | — |  |  | — |  |  | — |  |  | (52 | )
Operating profit | 80 |  |  | 854 |  |  | 236 |  |  | — |  |  | 1,170 |
Interest expense (income), net | 85 |  |  | — |  |  | (4 | ) |  | — |  |  | 81 |
Non-operating intercompany transactions | 201 |  |  | 11 |  |  | (212 | ) |  | — |  |  | — |
Income from continuing operations before taxes on income | (206 | ) |  | 843 |  |  | 452 |  |  | — |  |  | 1,089 |
(Benefit) provision for taxes on income | (106 | ) |  | 320 |  |  | 174 |  |  | — |  |  | 388 |
Equity in net income of subsidiaries | 2,713 |  |  | 91 |  |  | — |  |  | (2,804 | ) |  | — |
Income from continuing operations | 2,613 |  |  | 614 |  |  | 278 |  |  | (2,804 | ) |  | 701 |
Loss from discontinued operations | (147 | ) |  | — |  |  | (33 | ) |  | (29 | ) |  | (209 | )
Net income | $ | 2,466 |  |  | $ | 614 |  |  | $ | 245 |  |  | $ | (2,833 | ) |  | $ | 492 |
Less: net income from continuing operations attributable to noncontrolling interests | — |  |  | — |  |  | — |  |  | (50 | ) |  | (50 | )
Less: net income from discontinued operations attributable to noncontrolling interests | — |  |  | — |  |  | — |  |  | (5 | ) |  | (5 | )
Net income attributable to McGraw Hill Financial, Inc. | $ | 2,466 |  |  | $ | 614 |  |  | $ | 245 |  |  | $ | (2,888 | ) |  | $ | 437 |
Comprehensive income | $ | 2,338 |  |  | $ | 638 |  |  | $ | 262 |  |  | $ | (2,839 | ) |  | $ | 399 |
| Balance Sheet
| December 31, 2014
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
ASSETS |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |
Cash and equivalents | $ | 1,402 |  |  | $ | — |  |  | $ | 1,095 |  |  | $ | — |  |  | $ | 2,497 |
Accounts receivable, net of allowance for doubtful accounts | 120 |  |  | 293 |  |  | 519 |  |  | — |  |  | 932 |
Intercompany receivable | 525 |  |  | 2,125 |  |  | 1,998 |  |  | (4,648 | ) |  | — |
Deferred income taxes | 72 |  |  | 334 |  |  | (43 | ) |  | — |  |  | 363 |
Prepaid and other current assets | 80 |  |  | 27 |  |  | 67 |  |  | — |  |  | 174 |
Total current assets | 2,199 |  |  | 2,779 |  |  | 3,636 |  |  | (4,648 | ) |  | 3,966 |
Property and equipment, net of accumulated depreciation | 111 |  |  | 5 |  |  | 90 |  |  | — |  |  | 206 |
Goodwill | 109 |  |  | 41 |  |  | 1,228 |  |  | 9 |  |  | 1,387 |
Other intangible assets, net | 13 |  |  | — |  |  | 991 |  |  | — |  |  | 1,004 |
Asset for pension benefits | — |  |  | — |  |  | 28 |  |  | — |  |  | 28 |
Investments in subsidiaries | 1,258 |  |  | 653 |  |  | 7,125 |  |  | (9,036 | ) |  | — |
Intercompany loans receivable | 19 |  |  | 358 |  |  | 1,595 |  |  | (1,972 | ) |  | — |
Other non-current assets | 81 |  |  | 25 |  |  | 74 |  |  | — |  |  | 180 |
Total assets | $ | 3,790 |  |  | $ | 3,861 |  |  | $ | 14,767 |  |  | $ | (15,647 | ) |  | $ | 6,771 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |
Accounts payable | $ | 59 |  |  | $ | 45 |  |  | $ | 87 |  |  | $ | — |  |  | $ | 191 |
Intercompany payable | 2,566 |  |  | 617 |  |  | 1,376 |  |  | (4,559 | ) |  | — |
Accrued compensation and contributions to retirement plans | 133 |  |  | 121 |  |  | 156 |  |  | — |  |  | 410 |
Income taxes currently payable | 15 |  |  | 1 |  |  | 16 |  |  | — |  |  | 32 |
Unearned revenue | 259 |  |  | 585 |  |  | 479 |  |  | — |  |  | 1,323 |
Accrued legal and regulatory settlements | — |  |  | 1,609 |  |  | — |  |  | — |  |  | 1,609 |
Other current liabilities | 194 |  |  | — |  |  | 208 |  |  | — |  |  | 402 |
Total current liabilities | 3,226 |  |  | 2,978 |  |  | 2,322 |  |  | (4,559 | ) |  | 3,967 |
Long-term debt | 799 |  |  | — |  |  | — |  |  | — |  |  | 799 |
Intercompany loans payable | 109 |  |  | — |  |  | 1,952 |  |  | (2,061 | ) |  | — |
Pension and postretirement benefits | 272 |  |  | — |  |  | 61 |  |  | — |  |  | 333 |
Deferred income taxes | (245 | ) |  | 51 |  |  | 250 |  |  | — |  |  | 56 |
Other non-current liabilities | 219 |  |  | 8 |  |  | 40 |  |  | — |  |  | 267 |
Total liabilities | 4,380 |  |  | 3,037 |  |  | 4,625 |  |  | (6,620 | ) |  | 5,422 |
Redeemable noncontrolling interest | — |  |  | — |  |  | — |  |  | 810 |  |  | 810 |
Equity: |  |  |  |  |  |  |  |  |
Common stock | 412 |  |  | — |  |  | 2,316 |  |  | (2,316 | ) |  | 412 |
Additional paid-in capital | (116 | ) |  | 1,153 |  |  | 7,016 |  |  | (7,560 | ) |  | 493 |
Retained income | 6,282 |  |  | (329 | ) |  | 1,053 |  |  | (60 | ) |  | 6,946 |
Accumulated other comprehensive loss | (319 | ) |  | — |  |  | (236 | ) |  | 41 |  |  | (514 | )
Less: common stock in treasury | (6,849 | ) |  | — |  |  | (7 | ) |  | 7 |  |  | (6,849 | )
Total equity - controlling interests | (590 | ) |  | 824 |  |  | 10,142 |  |  | (9,888 | ) |  | 488 |
Total equity - noncontrolling interests | — |  |  | — |  |  | — |  |  | 51 |  |  | 51 |
Total equity | (590 | ) |  | 824 |  |  | 10,142 |  |  | (9,837 | ) |  | 539 |
Total liabilities and equity | $ | 3,790 |  |  | $ | 3,861 |  |  | $ | 14,767 |  |  | $ | (15,647 | ) |  | $ | 6,771 |
| Balance Sheet
| December 31, 2013
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
ASSETS |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |
Cash and equivalents | $ | 685 |  |  | $ | — |  |  | $ | 857 |  |  | $ | — |  |  | $ | 1,542 |
Accounts receivable, net of allowance for doubtful accounts | 108 |  |  | 345 |  |  | 496 |  |  | — |  |  | 949 |
Intercompany receivable | 234 |  |  | 1,394 |  |  | 2,002 |  |  | (3,630 | ) |  | — |
Deferred income taxes | 55 |  |  | 34 |  |  | 19 |  |  | — |  |  | 108 |
Prepaid and other current assets | 161 |  |  | 1 |  |  | 83 |  |  | — |  |  | 245 |
Assets held for sale | 97 |  |  | — |  |  | — |  |  | — |  |  | 97 |
Total current assets | 1,340 |  |  | 1,774 |  |  | 3,457 |  |  | (3,630 | ) |  | 2,941 |
Property and equipment, net of accumulated depreciation | 135 |  |  | 7 |  |  | 107 |  |  | — |  |  | 249 |
Goodwill | 138 |  |  | 41 |  |  | 1,221 |  |  | 9 |  |  | 1,409 |
Other intangible assets, net | 17 |  |  | — |  |  | 1,013 |  |  | 3 |  |  | 1,033 |
Asset for pension benefits | 232 |  |  | — |  |  | 29 |  |  | — |  |  | 261 |
Investments in subsidiaries | 2,215 |  |  | 646 |  |  | 6,114 |  |  | (8,975 | ) |  | — |
Intercompany loans receivable | 40 |  |  | 344 |  |  | (20 | ) |  | (364 | ) |  | — |
Other non-current assets | 92 |  |  | 27 |  |  | 49 |  |  | — |  |  | 168 |
Total assets | $ | 4,209 |  |  | $ | 2,839 |  |  | $ | 11,970 |  |  | $ | (12,957 | ) |  | $ | 6,061 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |
Accounts payable | $ | 52 |  |  | $ | 56 |  |  | $ | 102 |  |  | $ | — |  |  | $ | 210 |
Intercompany payable | 1,665 |  |  | 391 |  |  | 1,484 |  |  | (3,540 | ) |  | — |
Accrued compensation and contributions to retirement plans | 145 |  |  | 119 |  |  | 159 |  |  | — |  |  | 423 |
Income taxes currently payable | 3 |  |  | — |  |  | 12 |  |  | — |  |  | 15 |
Unearned revenue | 251 |  |  | 559 |  |  | 458 |  |  | — |  |  | 1,268 |
Other current liabilities | 227 |  |  | — |  |  | 175 |  |  | — |  |  | 402 |
Liabilities held for sale | 54 |  |  | — |  |  | — |  |  | — |  |  | 54 |
Total current liabilities | 2,397 |  |  | 1,125 |  |  | 2,390 |  |  | (3,540 | ) |  | 2,372 |
Long-term debt | 799 |  |  | — |  |  | — |  |  | — |  |  | 799 |
Intercompany loans payable | 89 |  |  | — |  |  | 363 |  |  | (452 | ) |  | — |
Pension and postretirement benefits | 220 |  |  | — |  |  | 44 |  |  | — |  |  | 264 |
Deferred income taxes | (155 | ) |  | 24 |  |  | 337 |  |  | — |  |  | 206 |
Other non-current liabilities | 235 |  |  | 3 |  |  | 29 |  |  | (1 | ) |  | 266 |
Total liabilities | 3,585 |  |  | 1,152 |  |  | 3,163 |  |  | (3,993 | ) |  | 3,907 |
Redeemable noncontrolling interest | — |  |  | — |  |  | — |  |  | 810 |  |  | 810 |
Equity: |  |  |  |  |  |  |  |  |
Common stock | 412 |  |  | — |  |  | 2,305 |  |  | (2,305 | ) |  | 412 |
Additional paid-in capital | (87 | ) |  | 1,121 |  |  | 7,099 |  |  | (7,686 | ) |  | 447 |
Retained income | 7,195 |  |  | 542 |  |  | (462 | ) |  | 109 |  |  | 7,384 |
Accumulated other comprehensive loss | (150 | ) |  | 24 |  |  | (111 | ) |  | 41 |  |  | (196 | )
Less: common stock in treasury | (6,746 | ) |  | — |  |  | (24 | ) |  | 24 |  |  | (6,746 | )
Total equity - controlling interests | 624 |  |  | 1,687 |  |  | 8,807 |  |  | (9,817 | ) |  | 1,301 |
Total equity - noncontrolling interests | — |  |  | — |  |  | — |  |  | 43 |  |  | 43 |
Total equity | 624 |  |  | 1,687 |  |  | 8,807 |  |  | (9,774 | ) |  | 1,344 |
Total liabilities and equity | $ | 4,209 |  |  | $ | 2,839 |  |  | $ | 11,970 |  |  | $ | (12,957 | ) |  | $ | 6,061 |
| Statement of Cash Flows
| Year Ended December 31, 2014
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Operating Activities: |  |  |  |  |  |  |  |  |
Net (loss) income | $ | (326 | ) |  | $ | (519 | ) |  | $ | 637 |  |  | $ | 195 |  |  | $ | (13 | )
Less: discontinued operations, net | 178 |  |  | — |  |  | — |  |  | — |  |  | 178 |
(Loss) income from continuing operations | (504 | ) |  | (519 | ) |  | 637 |  |  | 195 |  |  | (191 | )
Adjustments to reconcile (loss) income from continuing operations to cash (used for) provided by operating activities from continuing operations: |  |  |  |  |  |  |  |  |
Depreciation | 41 |  |  | 17 |  |  | 28 |  |  | — |  |  | 86 |
Amortization of intangibles | 4 |  |  | — |  |  | 44 |  |  | — |  |  | 48 |
Provision for losses on accounts receivable | — |  |  | 5 |  |  | 6 |  |  | — |  |  | 11 |
Deferred income taxes | 42 |  |  | (272 | ) |  | (15 | ) |  | — |  |  | (245 | )
Stock-based compensation | 31 |  |  | 34 |  |  | 35 |  |  | — |  |  | 100 |
Accrued legal and regulatory settlements | — |  |  | 1,587 |  |  | — |  |  | — |  |  | 1,587 |
Other | 21 |  |  | 39 |  |  | 20 |  |  | — |  |  | 80 |
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: |  |  |  |  |  |  |  |  |
Accounts receivable | (11 | ) |  | 47 |  |  | (45 | ) |  | — |  |  | (9 | )
Prepaid and current assets | (42 | ) |  | (17 | ) |  | 52 |  |  | — |  |  | (7 | )
Accounts payable and accrued expenses | (83 | ) |  | (47 | ) |  | — |  |  | — |  |  | (130 | )
Unearned revenue | 8 |  |  | 26 |  |  | 44 |  |  | — |  |  | 78 |
Other current liabilities | (55 | ) |  | 10 |  |  | (6 | ) |  | — |  |  | (51 | )
Net change in prepaid/accrued income taxes | 13 |  |  | 3 |  |  | (109 | ) |  | — |  |  | (93 | )
Net change in other assets and liabilities | (117 | ) |  | 5 |  |  | 57 |  |  | — |  |  | (55 | )
Cash (used for) provided by operating activities from continuing operations | (652 | ) |  | 918 |  |  | 748 |  |  | 195 |  |  | 1,209 |
Investing Activities: |  |  |  |  |  |  |  |  |
Capital expenditures | (26 | ) |  | (14 | ) |  | (52 | ) |  | — |  |  | (92 | )
Acquisitions, net of cash acquired | — |  |  | — |  |  | (71 | ) |  | — |  |  | (71 | )
Proceeds from dispositions | 63 |  |  | — |  |  | 20 |  |  | — |  |  | 83 |
Changes in short-term investments | — |  |  | — |  |  | 15 |  |  | — |  |  | 15 |
Cash provided by (used for) investing activities from continuing operations | 37 |  |  | (14 | ) |  | (88 | ) |  | — |  |  | (65 | )
Financing Activities: |  |  |  |  |  |  |  |  |
Dividends paid to shareholders | (326 | ) |  | — |  |  | — |  |  | — |  |  | (326 | )
Dividends and other payments paid to noncontrolling interests | — |  |  | — |  |  | (84 | ) |  | — |  |  | (84 | )
Repurchase of treasury shares | (362 | ) |  | — |  |  | — |  |  | — |  |  | (362 | )
Exercise of stock options | 184 |  |  | — |  |  | 9 |  |  | — |  |  | 193 |
Contingent payments | — |  |  | — |  |  | (11 | ) |  | — |  |  | (11 | )
Excess tax benefits from share-based payments | 128 |  |  | — |  |  | — |  |  | — |  |  | 128 |
Intercompany financing activities | 1,367 |  |  | (904 | ) |  | (268 | ) |  | (195 | ) |  | — |
Cash provided by (used for) financing activities from continuing operations | 991 |  |  | (904 | ) |  | (354 | ) |  | (195 | ) |  | (462 | )
Effect of exchange rate changes on cash from continuing operations | 3 |  |  | — |  |  | (68 | ) |  | — |  |  | (65 | )
Cash provided by continuing operations | 379 |  |  | — |  |  | 238 |  |  | — |  |  | 617 |
Discontinued Operations: |  |  |  |  |  |  |  |  |
Cash provided by operating activities | 18 |  |  | — |  |  | — |  |  | — |  |  | 18 |
Cash provided by investing activities | 320 |  |  | — |  |  | — |  |  | — |  |  | 320 |
Cash provided by discontinued operations | 338 |  |  | — |  |  | — |  |  | — |  |  | 338 |
Net change in cash and equivalents | 717 |  |  | — |  |  | 238 |  |  | — |  |  | 955 |
Cash and equivalents at beginning of year | 685 |  |  | — |  |  | 857 |  |  | — |  |  | 1,542 |
Cash and equivalents at end of year | $ | 1,402 |  |  | $ | — |  |  | $ | 1,095 |  |  | $ | — |  |  | $ | 2,497 |
| Statement of Cash Flows
| Year Ended December 31, 2013
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Operating Activities: |  |  |  |  |  |  |  |  |
Net income | $ | 2,508 |  |  | $ | 669 |  |  | $ | 423 |  |  | $ | (2,134 | ) |  | $ | 1,466 |
Less: discontinued operations, net | 726 |  |  | — |  |  | (134 | ) |  | — |  |  | 592 |
Income from continuing operations | 1,782 |  |  | 669 |  |  | 557 |  |  | (2,134 | ) |  | 874 |
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations: |  |  |  |  |  |  |  |  |
Depreciation | 40 |  |  | 19 |  |  | 27 |  |  | — |  |  | 86 |
Amortization of intangibles | 5 |  |  | — |  |  | 46 |  |  | — |  |  | 51 |
Provision for losses on accounts receivable | 1 |  |  | 7 |  |  | 14 |  |  | — |  |  | 22 |
Deferred income taxes | 39 |  |  | — |  |  | 4 |  |  | — |  |  | 43 |
Stock-based compensation | 35 |  |  | 33 |  |  | 28 |  |  | — |  |  | 96 |
Accrued legal and regulatory settlements | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | 68 |  |  | 10 |  |  | 18 |  |  | — |  |  | 96 |
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: |  |  |  |  |  |  |  |  |
Accounts receivable | (2 | ) |  | (4 | ) |  | (29 | ) |  | — |  |  | (35 | )
Prepaid and current assets | (14 | ) |  | (7 | ) |  | (8 | ) |  | — |  |  | (29 | )
Accounts payable and accrued expenses | (120 | ) |  | 18 |  |  | 8 |  |  | — |  |  | (94 | )
Unearned revenue | 17 |  |  | 43 |  |  | 49 |  |  | — |  |  | 109 |
Other current liabilities | (43 | ) |  | (24 | ) |  | (22 | ) |  | — |  |  | (89 | )
Net change in prepaid/accrued income taxes | (265 | ) |  | (3 | ) |  | 30 |  |  | — |  |  | (238 | )
Net change in other assets and liabilities | (190 | ) |  | 84 |  |  | (4 | ) |  | — |  |  | (110 | )
Cash provided by operating activities from continuing operations | 1,353 |  |  | 845 |  |  | 718 |  |  | (2,134 | ) |  | 782 |
Investing Activities: |  |  |  |  |  |  |  |  |
Capital expenditures | (61 | ) |  | (19 | ) |  | (37 | ) |  | — |  |  | (117 | )
Acquisitions, net of cash acquired | — |  |  | — |  |  | (47 | ) |  | — |  |  | (47 | )
Proceeds from dispositions | 35 |  |  | — |  |  | 16 |  |  | — |  |  | 51 |
Changes in short-term investments | — |  |  | — |  |  | (17 | ) |  | — |  |  | (17 | )
Cash used for investing activities from continuing operations | (26 | ) |  | (19 | ) |  | (85 | ) |  | — |  |  | (130 | )
Financing Activities: |  |  |  |  |  |  |  |  |
Payments on short-term debt | (457 | ) |  | — |  |  | — |  |  | — |  |  | (457 | )
Dividends paid to shareholders | (308 | ) |  | — |  |  | — |  |  | — |  |  | (308 | )
Dividends and other payments paid to noncontrolling interests | — |  |  | — |  |  | (75 | ) |  | — |  |  | (75 | )
Repurchase of treasury shares | (978 | ) |  | — |  |  | — |  |  | — |  |  | (978 | )
Exercise of stock options | 254 |  |  | — |  |  | 4 |  |  | — |  |  | 258 |
Contingent payments | — |  |  | — |  |  | (12 | ) |  | — |  |  | (12 | )
Purchase of additional CRISIL shares | — |  |  | — |  |  | (214 | ) |  | — |  |  | (214 | )
Excess tax benefits from share-based payments | 43 |  |  | — |  |  | — |  |  | — |  |  | 43 |
Intercompany financing activities | (43 | ) |  | (826 | ) |  | (1,265 | ) |  | 2,134 |  |  | — |
Cash used for financing activities from continuing operations | (1,489 | ) |  | (826 | ) |  | (1,562 | ) |  | 2,134 |  |  | (1,743 | )
Effect of exchange rate changes on cash from continuing operations | 8 |  |  | — |  |  | (9 | ) |  | — |  |  | (1 | )
Cash used for continuing operations | (154 | ) |  | — |  |  | (938 | ) |  | — |  |  | (1,092 | )
Discontinued Operations: |  |  |  |  |  |  |  |  |
Cash provided by (used for) operating activities | 720 |  |  | — |  |  | (951 | ) |  | — |  |  | (231 | )
Cash provided by investing activities | — |  |  | — |  |  | 2,129 |  |  | — |  |  | 2,129 |
Cash used for financing activities | — |  |  | — |  |  | (25 | ) |  | — |  |  | (25 | )
Effect of exchange rate changes on cash | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Cash provided by discontinued operations | 720 |  |  | — |  |  | 1,154 |  |  | — |  |  | 1,874 |
Net change in cash and equivalents | 566 |  |  | — |  |  | 216 |  |  | — |  |  | 782 |
Cash and equivalents at beginning of year | 119 |  |  | — |  |  | 641 |  |  | — |  |  | 760 |
Cash and equivalents at end of year | $ | 685 |  |  | $ | — |  |  | $ | 857 |  |  | $ | — |  |  | $ | 1,542 |
| Statement of Cash Flows
| Year Ended December 31, 2012
(in millions) | McGraw Hill Financial, Inc. |  | Standard & Poor's Financial Services LLC |  | Non-Guarantor Subsidiaries |  | Eliminations |  | McGraw Hill Financial Inc. Consolidated
Operating Activities: |  |  |  |  |  |  |  |  |
Net income | $ | 2,466 |  |  | $ | 614 |  |  | $ | 245 |  |  | $ | (2,833 | ) |  | $ | 492 |
Less: discontinued operations, net | (147 | ) |  | — |  |  | (33 | ) |  | (29 | ) |  | (209 | )
Income from continuing operations | 2,613 |  |  | 614 |  |  | 278 |  |  | (2,804 | ) |  | 701 |
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations: |  |  |  |  |  |  |  |  |
Depreciation | 45 |  |  | 19 |  |  | 29 |  |  | — |  |  | 93 |
Amortization of intangibles | 6 |  |  | — |  |  | 42 |  |  | — |  |  | 48 |
Provision for losses on accounts receivable | 1 |  |  | 16 |  |  | 15 |  |  | — |  |  | 32 |
Deferred income taxes | 100 |  |  | (41 | ) |  | (6 | ) |  | — |  |  | 53 |
Stock-based compensation | 21 |  |  | 32 |  |  | 37 |  |  | — |  |  | 90 |
Accrued legal and regulatory settlements | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | (16 | ) |  | 23 |  |  | (4 | ) |  | — |  |  | 3 |
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: |  |  |  |  |  |  |  |  |
Accounts receivable | 64 |  |  | (53 | ) |  | (261 | ) |  | — |  |  | (250 | )
Prepaid and current assets | — |  |  | (18 | ) |  | 21 |  |  | — |  |  | 3 |
Accounts payable and accrued expenses | 53 |  |  | (71 | ) |  | 91 |  |  | — |  |  | 73 |
Unearned revenue | 11 |  |  | (29 | ) |  | 41 |  |  | — |  |  | 23 |
Other current liabilities | (29 | ) |  | (21 | ) |  | (18 | ) |  | — |  |  | (68 | )
Net change in prepaid/accrued income taxes | 135 |  |  | — |  |  | (16 | ) |  | — |  |  | 119 |
Net change in other assets and liabilities | (144 | ) |  | 8 |  |  | (54 | ) |  | — |  |  | (190 | )
Cash provided by operating activities from continuing operations | 2,860 |  |  | 479 |  |  | 195 |  |  | (2,804 | ) |  | 730 |
Investing Activities: |  |  |  |  |  |  |  |  |
Capital expenditures | (50 | ) |  | (23 | ) |  | (23 | ) |  | — |  |  | (96 | )
Acquisitions, net of cash acquired | — |  |  | — |  |  | (177 | ) |  | — |  |  | (177 | )
Changes in short-term investments | — |  |  | — |  |  | 27 |  |  | — |  |  | 27 |
Cash used for investing activities from continuing operations | (50 | ) |  | (23 | ) |  | (173 | ) |  | — |  |  | (246 | )
Financing Activities: |  |  |  |  |  |  |  |  |
Payments on short-term debt | 457 |  |  | — |  |  | — |  |  | — |  |  | 457 |
Payments on senior notes | (400 | ) |  | — |  |  | — |  |  | — |  |  | (400 | )
Dividends paid to shareholders | (984 | ) |  | — |  |  | — |  |  | — |  |  | (984 | )
Dividends and other payments paid to noncontrolling interests | — |  |  | — |  |  | (24 | ) |  | — |  |  | (24 | )
Repurchase of treasury shares | (295 | ) |  | — |  |  | — |  |  | — |  |  | (295 | )
Exercise of stock options | 299 |  |  | — |  |  | — |  |  | — |  |  | 299 |
Excess tax benefits from share-based payments | 42 |  |  | — |  |  | — |  |  | — |  |  | 42 |
Intercompany financing activities | (3,402 | ) |  | (456 | ) |  | 1,025 |  |  | 2,833 |  |  | — |
Cash (used for) provided by financing activities from continuing operations | (4,283 | ) |  | (456 | ) |  | 1,001 |  |  | 2,833 |  |  | (905 | )
Effect of exchange rate changes on cash from continuing operations | 2 |  |  | — |  |  | 3 |  |  | — |  |  | 5 |
Cash (used for) provided by continuing operations | (1,471 | ) |  | — |  |  | 1,026 |  |  | 29 |  |  | (416 | )
Discontinued Operations: |  |  |  |  |  |  |  |  |
Cash provided by (used for) operating activities | 1,301 |  |  | — |  |  | (735 | ) |  | (29 | ) |  | 537 |
Cash used for investing activities | — |  |  | — |  |  | (199 | ) |  | — |  |  | (199 | )
Cash used for financing activities | — |  |  | — |  |  | (12 | ) |  | — |  |  | (12 | )
Effect of exchange rate changes on cash | — |  |  | — |  |  | 3 |  |  | — |  |  | 3 |
Effect of change in cash and equivalents | — |  |  | — |  |  | 12 |  |  | — |  |  | 12 |
Cash provided by (used for) discontinued operations | 1,301 |  |  | — |  |  | (931 | ) |  | (29 | ) |  | 341 |
Net change in cash and equivalents | (170 | ) |  | — |  |  | 95 |  |  | — |  |  | (75 | )
Cash and equivalents at beginning of year | 289 |  |  | — |  |  | 546 |  |  | — |  |  | 835 |
Cash and equivalents at end of year | $ | 119 |  |  | $ | — |  |  | $ | 641 |  |  | $ | — |  |  | $ | 760 |

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