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Segment and Related Information | 3 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
Segment and Related Information | Segment and Related Information We have five reportable segments: Market Intelligence, Ratings, Commodity Insights, Mobility 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 expense, equity in income on unconsolidated subsidiaries, other (income) expense, net, or interest expense, net, as these are amounts that do not affect the operating results of our reportable segments. As of May 2, 2023, we completed the sale of Engineering Solutions and the results are included through that date. A summary of operating results for the three months ended March 31 is as follows:
Revenue |  |  |
(in millions) | 2024 |  | 2023 |  |  |  |  |  |
Market Intelligence | $ | 1,142 |  |  | $ | 1,071 |  |  |  |  |  |  |
Ratings | 1,062 |  |  | 824 |  |  |  |  |  |  |
Commodity Insights | 559 |  |  | 508 |  |  |  |  |  |  |
Mobility | 386 |  |  | 358 |  |  |  |  |  |  |
Indices | 387 |  |  | 341 |  |  |  |  |  |  |
Engineering Solutions | — |  |  | 100 |  |  |  |  |  |  |
Intersegment elimination 1 | (45) |  |  | (42) |  |  |  |  |  |  |
Total revenue | $ | 3,491 |  |  | $ | 3,160 |  |  |  |  |  |  |
Operating Profit |  |  |
(in millions) | 2024 |  | 2023 |  |  |  |  |  |
Market Intelligence 2 | $ | 189 |  |  | $ | 229 |  |  |  |  |  |  |
Ratings 3 | 679 |  |  | 477 |  |  |  |  |  |  |
Commodity Insights 4 | 226 |  |  | 187 |  |  |  |  |  |  |
Mobility 5 | 70 |  |  | 64 |  |  |  |  |  |  |
Indices 6 | 272 |  |  | 238 |  |  |  |  |  |  |
Engineering Solutions 7 | — |  |  | 14 |  |  |  |  |  |  |
Total reportable segments | 1,436 |  |  | 1,209 |  |  |  |  |  |  |
Corporate Unallocated expense 8 | (57) |  |  | (79) |  |  |  |  |  |  |
Equity in Income on Unconsolidated Subsidiaries 9 | 6 |  |  | 14 |  |  |  |  |  |  |
Total operating profit | $ | 1,385 |  | $ | 1,144 |  |  |  |  |  |
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 2024 includes employee severance charges of $31 million, IHS Markit merger costs of $11 million and acquisition-related costs of $3 million. Operating profit for 2023 includes a gain on disposition of $46 million, IHS Markit merger costs of $13 million and employee severance charges of $6 million. Additionally, operating profit includes amortization of intangibles from acquisitions of $140 million and $141 million for 2024 and 2023, respectively. 3 Operating profit for 2024 and 2023 includes employee severance charges of $2 million and $1 million, respectively. Additionally, operating profit includes amortization of intangibles from acquisitions of $7 million and $2 million for 2024 and 2023, respectively. 4 Operating profit for 2024 includes IHS Markit merger costs of $5 million. Operating profit for 2023 includes IHS Markit merger costs of $13 million and employee severance charges of $2 million. Additionally, operating profit includes amortization of intangibles from acquisitions of $32 million and $33 million for 2024 and 2023, respectively. 5 Operating profit for 2024 includes IHS Markit merger costs of $1 million. Operating profit for 2023 includes IHS Markit merger costs of $1 million and acquisition-related costs of $1 million. Additionally, operating profit includes amortization of intangibles from acquisitions of $76 million and $74 million for 2024 and 2023, respectively. 6 Operating profit for 2024 includes IHS Markit merger costs of $1 million and employee severance charges of $1 million. 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. Additionally, operating profit includes amortization of intangibles from acquisitions of $9 million for 2024 and 2023. 7 Operating profit for 2023 includes amortization of intangibles from acquisitions of $2 million. 8 Corporate Unallocated expense for 2024 includes IHS Markit merger costs of $18 million, employee severance charges of $2 million, acquisition-related costs of $1 million and recovery of lease-related costs of $1 million. 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. Additionally, Corporate Unallocated expense includes amortization of intangibles from acquisitions of $1 million for 2023. 9 Equity in Income on Unconsolidated Subsidiaries includes amortization of intangibles from acquisitions of $14 million for 2024 and 2023. 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 1 |  | Intersegment Elimination 2 |  | Total
| 2024
Subscription |  | $ | 947 |  |  | $ | — |  |  | $ | 450 |  |  | $ | 311 |  |  | $ | 70 |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 1,778 |
Non-subscription / Transaction |  | 54 |  |  | 582 |  |  | 83 |  |  | 75 |  |  | — |  |  |  |  | — |  |  | — |  |  | 794 |
Non-transaction |  | — |  |  | 480 |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (45) |  |  | 435 |
Asset-linked fees |  | — |  |  | — |  |  | — |  |  | — |  |  | 244 |  |  |  |  | — |  |  | — |  |  | 244 |
Sales usage-based royalties |  | — |  |  | — |  |  | 26 |  |  | — |  |  | 73 |  |  |  |  | — |  |  | — |  |  | 99 |
Recurring variable revenue |  | 141 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 141 |
Total revenue |  | $ | 1,142 |  |  | $ | 1,062 |  |  | $ | 559 |  |  | $ | 386 |  |  | $ | 387 |  |  |  |  | $ | — |  |  | $ | (45) |  |  | $ | 3,491 |
Timing of revenue recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Services transferred at a point in time |  | $ | 54 |  |  | $ | 582 |  |  | $ | 83 |  |  | $ | 75 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 794 |
Services transferred over time |  | 1,088 |  |  | 480 |  |  | 476 |  |  | 311 |  |  | 387 |  |  |  |  | — |  |  | (45) |  |  | 2,697 |
Total revenue |  | $ | 1,142 |  |  | $ | 1,062 |  |  | $ | 559 |  |  | $ | 386 |  |  | $ | 387 |  |  |  |  | $ | — |  |  | $ | (45) |  |  | $ | 3,491 |
(in millions) | Market Intelligence |  | Ratings |  | Commodity Insights |  | Mobility |  | Indices |  |  |  | Engineering Solutions 1 |  | Intersegment Elimination 2 |  | 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 |  |
1 As of May 2, 2023, we completed the sale of Engineering Solutions and the results are included through that date. 2 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) | 2024 |  | 2023 |  |  |  |
U.S. | $ | 2,150 |  |  | $ | 1,926 |  |  |  |  |
European region | 776 |  |  | 711 |  |  |  |  |
Asia | 356 |  |  | 337 |  |  |  |  |
Rest of the world | 209 |  |  | 186 |  |  |  |  |
Total | $ | 3,491 |  |  | $ | 3,160 |  |  |  |  |
See Note 2 — Acquisitions and Divestitures and Note 10 — Restructuring for additional actions that impacted the segment operating results.

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