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Acquisitions and Divestitures (Tables) | 6 Months Ended
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Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract] |
Schedule of preliminary estimated fair value | The preliminary estimated fair value of the consideration transferred for IHS Markit was approximately $43.5 billion as of the merger date, which consisted of the following:
(in millions, except for share and per share data) | February 28, 2022
Number of shares IHS Markit issued and outstanding* | 400,988,207 |
Exchange ratio | 0.2838
Number of S&P Global common stock transferred to IHS Markit stockholders | 113,800,453 |
Closing price per share of S&P Global common stock** | $ | 380.89 |
Fair value of S&P Global common stock transferred IHS Markit stockholders | $ | 43,345 |
Fair value of S&P Global replacement equity awards attributable to pre-combination service | $ | 191 |
Total equity consideration | $ | 43,536 |
*Excludes 25,219,470 IHS Markit shares held by the Markit Group Holdings Limited Employee Benefit Trust ("EBT"). The shares held by the EBT were converted in the merger into S&P Global shares at the exchange ratio of 0.2838 and will continue to be held by the trustee in the EBT. **Based on S&P Global's closing stock price on February 25, 2022.
Schedule of preliminary allocation of purchase price recorded | The preliminary allocation of purchase price recorded for IHS Markit was as follows:
(in millions) | February 28, 2022
Assets acquired |
Cash and cash equivalents | $ | 310 |
Accounts receivable, net | 968 |
Prepaid and other current assets | 242 |
Assets of a business held for sale | 1,519 |
Property and equipment | 122 |
Right of use assets | 240 |
Goodwill | 30,986 |
Other intangible assets | 19,162 |
Equity investment in unconsolidated subsidiaries | 1,644 |
Other non-current assets | 86 |
Total assets acquired | $ | 55,279 |
Liabilities assumed |
Account payable | $ | 174 |
Accrued compensation | 81 |
Short-term debt | 968 |
Unearned revenue | 1,053 |
Other current liabilities | 584 |
Liabilities of a business held for sale | 72 |
Long-term debt | 4,191 |
Lease liabilities - non-current | 231 |
Deferred tax liability - non-current | 4,333 |
Other non-current liabilities | 56 |
Total liabilities assumed | $ | 11,743 |
Total consideration transferred | $ | 43,536 |
Schedule of finite-lived intangible assets | The following table sets forth preliminary estimated fair values of the components of the identifiable intangible assets acquired and their estimated useful lives:
(in millions) | Fair Value | Weighted Average Useful Lives
Customer relationships | $ | 14,082 |  | 25 years
Trade names and trademarks | 1,459 |  | 14 years
Developed technology | 1,042 |  | 10 years
Databases | 2,579 |  | 12 years
Total Identified Intangible Assets | $ | 19,162 |  | 21 years
Schedule of expected amortization expense | Expected amortization expense for the Company's intangible assets over the next five years for the years ended December 31 is as follows:
(in millions) | 2022 | 2023 | 2024 | 2025 | 2026
Amortization expense | $ | 926 |  | $ | 1,090 |  | $ | 1,089 |  | $ | 1,053 |  | $ | 1,038 |
Schedule of acquisition, pro forma information | The pro forma results do not include anticipated synergies or other expected benefits of the acquisition.
| Three months ended June 30 | Six months ended June 30
(in millions) | 2022 | 2021 | 2022 | 2021
Revenue | $ | 2,970 |  | $ | 3,113 |  | $ | 6,042 |  | $ | 6,135 |
Net income | $ | 961 |  | $ | 865 |  | $ | 2,491 |  | $ | 1,539 |
Schedule of components of assets and liabilities held for sale | The components of assets and liabilities held for sale in the consolidated balance sheet consist of the following:
(in millions) | June 30, | December 31,
| 2022 | 2021 1
Accounts Receivable, net | $ | — |  | $ | 59 |
Goodwill | — |  | 255 |
Other assets | — |  | 7 |
Assets of businesses held for sale | $ | — |  | $ | 321 |
Accounts payable and accrued expenses | $ | — |  | $ | 11 |
Unearned revenue | — |  | 138 |
Liabilities of businesses held for sale | $ | — |  | $ | 149 |
1 Assets and liabilities held for sale as of December 31, 2021 relate to CGS and LCD. The operating profit of our businesses that were disposed of for the periods ended June 30 is as follows:
(in millions) | Three Months |  | Six Months
| 2022 |  | 2021 |  | 2022 |  | 2021
Operating profit 2 | $ | 15 |  |  | $ | 42 |  |  | $ | 48 |  |  | $ | 84 |
2 The operating profit presented includes the revenue and recurring direct expenses associated with businesses disposed of or held for sale. The three and six months ended June 30, 2022 excludes pre-tax gains related to the sale LCD and a related family of leveraged loan indices of $518 million and $38 million, respectively. The six months ended June 30, 2022 also excludes a pre-tax gain related to the sale of CGS of $1.3 billion. The six months ended June 30, 2021 excludes a pre-tax gain related to the sale of SPIAS of $2 million.

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