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v3.23.1

Segment and Related Information | 3 Months Ended
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Mar. 31, 2023
Segment Reporting [Abstract] |
Segment and Related Information | Segment and Related Information We have six reportable segments: Market Intelligence, Ratings, Commodity Insights, Mobility, Indices, and Engineering Solutions. 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 expense, equity in income on unconsolidated subsidiaries, other expense (income), net, interest expense, net, or loss on extinguishment of debt, net, as these are amounts that do not affect the operating results of our reportable segments. A summary of operating results for the three months ended March 31 is as follows:
Revenue |  |  |
(in millions) | 2023 |  | 2022 |  |  |  |  |  |
Market Intelligence | $ | 1,071 |  |  | $ | 727 |  |  |  |  |  |  |
Ratings | 824 |  |  | 868 |  |  |  |  |  |  |
Commodity Insights | 508 |  |  | 363 |  |  |  |  |  |  |
Mobility | 358 |  |  | 115 |  |  |  |  |  |  |
Indices | 341 |  |  | 322 |  |  |  |  |  |  |
Engineering Solutions | 100 |  |  | 33 |  |  |  |  |  |  |
Intersegment elimination 1 | (42) |  |  | (39) |  |  |  |  |  |  |
Total revenue | $ | 3,160 |  |  | $ | 2,389 |  |  |  |  |  |  |
Operating Profit |  |  |
(in millions) | 2023 |  | 2022 |  |  |  |  |  |
Market Intelligence 2 | $ | 229 |  |  | $ | 1,489 |  |  |  |  |  |  |
Ratings 3 | 477 |  |  | 511 |  |  |  |  |  |  |
Commodity Insights 4 | 187 |  |  | 158 |  |  |  |  |  |  |
Mobility 5 | 64 |  |  | 18 |  |  |  |  |  |  |
Indices 6 | 238 |  |  | 224 |  |  |  |  |  |  |
Engineering Solutions 7 | 14 |  |  | 1 |  |  |  |  |  |  |
Total reportable segments | 1,209 |  |  | 2,401 |  |  |  |  |  |  |
Corporate Unallocated expense 8 | (79) |  |  | (512) |  |  |  |  |  |  |
Equity in Income on Unconsolidated Subsidiaries 9 | 14 |  |  | 3 |  |  |  |  |  |  |
Total operating profit | $ | 1,144 |  | $ | 1,892 |  |  |  |  |  |
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 for 2023 includes a gain on dispositions of $46 million, IHS Markit merger costs of $13 million, and employee severance charges of $6 million. Operating profit for 2022 includes a gain on disposition of $1.3 billion, employee severance charges of $18 million, and acquisition-related costs of $2 million. Additionally, operating profit for 2023 and 2022 includes amortization of intangibles from acquisitions of $141 million and $64 million, respectively. 3 Operating profit for 2023 and 2022 includes employee severance charges of $1 million and $5 million, respectively. Additionally, operating profit for 2023 and 2022 includes amortization of intangibles from acquisitions of $2 million. 4 Operating profit for 2023 includes IHS Markit merger costs of $13 million and employee severance charges of $2 million. Operating profit for 2022 includes employee severance costs of $7 million and acquisition-related costs of $2 million. Additionally, operating profit for 2023 and 2022 includes amortization of intangibles from acquisitions of $33 million and $13 million, respectively. 5 Operating profit for 2023 includes IHS Markit merger costs of $1 million and acquisition-related costs of $1 million. 2022 includes acquisition-related costs of $1 million. Additionally, operating profit for 2023 and 2022 includes amortization of intangibles from acquisitions of $74 million and $24 million, respectively. 6 Operating profit for 2023 includes a gain on disposition of $4 million, employee severance charges of $1 million and IHS Markit merger costs of $1 million. Operating profit for 2022 includes employee severance charges of $2 million. Additionally, operating profit for 2023 and 2022 includes amortization of intangibles from acquisitions of $9 million and $4 million, respectively. 7 Operating profit for 2022 includes employee severance charges of $1 million. Additionally, operating profit for 2023 and 2022 includes amortization of intangibles from acquisitions of $2 million and $4 million, respectively. 8 Corporate Unallocated expense for 2023 includes IHS Markit merger costs of $37 million, disposition-related costs of $13 million, employee severance charges of $1 million, and acquisition-related costs of $1 million. Corporate Unallocated expense for 2022 includes IHS Markit merger costs of $230 million, a S&P Foundation grant of $200 million, employee severance charges of $46 million, acquisition-related costs of $11 million and lease impairments of $5 million. Additionally, Corporate Unallocated expense for 2023 includes amortization of intangibles from acquisitions of $1 million. 9 Equity in Income on Unconsolidated Subsidiaries for 2023 and 2022 includes amortization of intangibles from acquisitions of $14 million. The following table presents our revenue disaggregated by revenue type for the three months ended March 31:
(in millions) |  | Market Intelligence |  | Ratings |  | Commodity Insights |  | Mobility |  | Indices |  |  |  | Engineering Solutions |  | Intersegment Elimination 1 |  | Total
| 2023
Subscription |  | $ | 890 |  |  | $ | — |  |  | $ | 409 |  |  | $ | 281 |  |  | $ | 66 |  |  |  |  | $ | 94 |  |  | $ | — |  |  | $ | 1,740 |
Non-subscription / Transaction |  | 56 |  |  | 379 |  |  | 80 |  |  | 77 |  |  | — |  |  |  |  | 6 |  |  | — |  |  | 598 |
Non-transaction |  | — |  |  | 445 |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (42) |  |  | 403 |
Asset-linked fees |  | — |  |  | — |  |  | — |  |  | — |  |  | 210 |  |  |  |  | — |  |  | — |  |  | 210 |
Sales usage-based royalties |  | — |  |  | — |  |  | 19 |  |  | — |  |  | 65 |  |  |  |  | — |  |  | — |  |  | 84 |
Recurring variable revenue |  | 125 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  |  |  | 125 |
Total revenue |  | $ | 1,071 |  |  | $ | 824 |  |  | $ | 508 |  |  | $ | 358 |  |  | $ | 341 |  |  |  |  | $ | 100 |  |  | $ | (42) |  |  | $ | 3,160 |
Timing of revenue recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Services transferred at a point in time |  | $ | 56 |  |  | $ | 379 |  |  | $ | 80 |  |  | $ | 77 |  |  | $ | — |  |  |  |  | $ | 6 |  |  | $ | — |  |  | $ | 598 |
Services transferred over time |  | 1,015 |  |  | 445 |  |  | 428 |  |  | 281 |  |  | 341 |  |  |  |  | 94 |  |  | (42) |  |  | 2,562 |
Total revenue |  | $ | 1,071 |  |  | $ | 824 |  |  | $ | 508 |  |  | $ | 358 |  |  | $ | 341 |  |  |  |  | $ | 100 |  |  | $ | (42) |  |  | $ | 3,160 |
(in millions) | Market Intelligence |  | Ratings |  | Commodity Insights |  | Mobility |  | Indices |  |  |  | Engineering Solutions |  | Intersegment Elimination 1 |  | Total |
| 2022
Subscription | $ | 659 |  |  | $ | — |  |  | $ | 296 |  |  | $ | 86 |  |  | $ | 54 |  |  |  |  | $ | 30 |  |  | $ | — |  |  | $ | 1,125 |  |
Non-subscription / Transaction | 28 |  |  | 404 |  |  | 48 |  |  | 29 |  |  | — |  |  |  |  | 3 |  |  | — |  |  | 512 |  |
Non-transaction | — |  |  | 464 |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (39) |  |  | 425 |  |
Asset-linked fees | — |  |  | — |  |  | — |  |  | — |  |  | 218 |  |  |  |  | — |  |  | — |  |  | 218 |  |
Sales usage-based royalties | — |  |  | — |  |  | 19 |  |  | — |  |  | 50 |  |  |  |  | — |  |  | — |  |  | 69 |  |
Recurring variable revenue | 40 |  |  | — |  |  | — |  |  |  |  | — |  |  |  |  |  |  | — |  |  | 40 |  |
Total revenue | $ | 727 |  |  | $ | 868 |  |  | $ | 363 |  |  | $ | 115 |  |  | $ | 322 |  |  |  |  | $ | 33 |  |  | $ | (39) |  |  | $ | 2,389 |  |
Timing of revenue recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Services transferred at a point in time | $ | 28 |  |  | $ | 404 |  |  | $ | 48 |  |  | $ | 29 |  |  | $ | — |  |  |  |  | $ | 3 |  |  | $ | — |  |  | $ | 512 |  |
Services transferred over time | 699 |  |  | 464 |  |  | 315 |  |  | 86 |  |  | 322 |  |  |  |  | 30 |  |  | (39) |  |  | 1,877 |  |
Total revenue | $ | 727 |  |  | $ | 868 |  |  | $ | 363 |  |  | $ | 115 |  |  | $ | 322 |  |  |  |  | $ | 33 |  |  | $ | (39) |  |  | $ | 2,389 |  |
1 Intersegment eliminations primarily consists of a royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings. The following provides revenue by geographic region for the three months ended March 31:
(in millions) | 2023 |  | 2022 |  |  |  |
U.S. | $ | 1,926 |  |  | $ | 1,426 |  |  |  |  |
European region | 711 |  |  | 567 |  |  |  |  |
Asia | 337 |  |  | 264 |  |  |  |  |
Rest of the world | 186 |  |  | 132 |  |  |  |  |
Total | $ | 3,160 |  |  | $ | 2,389 |  |  |  |  |
See Note 2 — Acquisitions and Divestitures and Note 10 — Restructuring for additional 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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