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Segment and Geographic Information | 12 Months Ended
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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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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