Document
false0000064040 0000064040 2020-03-26 2020-03-26


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
 
Securities Exchange Act of 1934
 
Date of Report: March 26, 2020
 
 
S&P Global Inc.
 
(Exact Name of Registrant as specified in its charter)
 
New York
1-1023
13-1026995
(State or other jurisdiction of incorporation or organization)
(Commission File No.)
(IRS Employer Identification No.)
 
55 Water Street, New York, New York 10041
(Address of Principal Executive Offices) (Zip Code)
 
(212) 438-1000
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Class
Trading Symbol
Name of Exchange on which registered
Common stock (par value $1.00 per share)
SPGI
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company                ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                                             ☐





Item 2.02 and 7.01.   Results of Operations and Financial Condition and Regulation FD Disclosure
 
In the first quarter of 2020, S&P Global Inc. (the “Registrant” or the "Company") changed its allocation methodology for allocating its centrally managed technology-related expenses to its reportable segments to more accurately reflect each segments respective usage. There was no impact on the Company's historical consolidated balance sheets, consolidated statements of income, and consolidated statements of cash flows as a result of this change.

The Company is furnishing this Form 8-K to provide investors with historical segment financial information that is consistent with its new allocation methodology. Exhibit 99 provides unaudited segment financial information which reflects the allocation methodology change to technology-related expenses for each of the four quarters and the full years of 2019 and 2018 and does not represent a restatement of the Company's previously issued consolidated financial statements.
 
The recast financial information is attached as Exhibit 99 to this Form 8-K and is incorporated in this Item 2.02 and Item 7.01 by reference. Pursuant to general instruction B.2 to Form 8-K, the information furnished pursuant to Items 2.02 and 7.01, including Exhibit 99, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
 
The information in this Form 8-K shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

Use of Non-GAAP Financial Measures

Non-GAAP financial measures contained in the exhibits to this report are derived from the Company's financial statements. This Non-GAAP information is provided in order to allow investors to make meaningful comparisons of the Company's operating performance between periods and to view the Company's business from the same perspective of Company management. The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP on Exhibit 99.
 
 
Item 9.01.   Financial Statements and Exhibits.
 
(d) Exhibits. The following exhibit is furnished with this report:
 
(99)        Recast segment financial information of the Registrant for each of the four quarters and full years of 2019 and 2018
(104)    Cover Page Interactive Data File (formatted as Inline XBRL)





SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Form 8-K Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
S&P Global Inc.
 
 
 
 
/s/  
Alma Rosa Montanez
 
 
 
By:   
Alma Rosa Montanez
 
 
 
Assistant Corporate Secretary & Associate General Counsel
 
 
 
 
 
 
Dated:  March 26, 2020




INDEX TO EXHIBITS

Exhibit Number
 
(99)    Recast segment financial information of the Registrant for each of the four quarters and full years of 2019 and 2018
(104)    Cover Page Interactive Data File (formatted as Inline XBRL)




S&P Global
Recast of 2019 and 2018 Results to Reflect the Allocation Methodology Change to Technology-Related Expenses
Periods Ended December 31, 2019 and 2018
 
(unaudited, dollars in millions)
 
 
2019
 
 
 
 
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Full Year
 
 
Ratings
Operating Profit as Previously Reported
 
 
$
363

 
$
455

 
$
472

 
$
473

 
$
1,763

 
 
Net Impact from Allocation Methodology Change
 
 
5

 
5

 
5

 
5

 
20

 
 
Operating Profit
 
 
368

 
460

 
477

 
478

 
1,783

 
 
Non-GAAP Adjustments (a)
 
 
—

 
11

 
—

 
—

 
11

 
 
Deal-Related Amortization
 
 
1

 
1

 
—

 
—

 
2

 
 
Adjusted Operating Profit
 
 
$
369

 
$
472

 
$
477

 
$
478

 
$
1,796

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Intelligence
Operating Profit as Previously Reported
 
 
$
145

 
$
147

 
$
171

 
$
145

 
$
607

 
 
Net Impact from Allocation Methodology Change
 
 
(11
)
 
(10
)
 
(10
)
 
(10
)
 
(41
)
 
 
Operating Profit
 
 
134

 
137

 
161

 
135

 
566

 
 
Non-GAAP Adjustments (b)
 
 
—

 
1

 
(22
)
 
8

 
(13
)
 
 
Deal-Related Amortization
 
 
18

 
19

 
19

 
19

 
75

 
 
Adjusted Operating Profit
 
 
$
153

 
$
157

 
$
157

 
$
162

 
$
629

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Platts
Operating Profit as Previously Reported
 
 
$
94

 
$
107

 
$
132

 
$
105

 
$
438

 
 
Net Impact from Allocation Methodology Change
 
 
5

 
4

 
4

 
5

 
19

 
 
Operating Profit
 
 
99

 
111

 
136

 
110

 
457

 
 
Non-GAAP Adjustments (c)
 
 
—

 
1

 
(27
)
 
—

 
(26
)
 
 
Deal-Related Amortization
 
 
3

 
3

 
2

 
2

 
12

 
 
Adjusted Operating Profit
 
 
$
103

 
$
116

 
$
112

 
$
112

 
$
443

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indices
Operating Profit as Previously Reported
 
 
$
149

 
$
162

 
$
161

 
$
157

 
$
630

 
 
Net Impact from Allocation Methodology Change
 
 
1

 
1

 
1

 
—

 
2

 
 
Operating Profit
 
 
150

 
163

 
162

 
157

 
632

 
 
Deal-Related Amortization
 
 
1

 
1

 
1

 
1

 
6

 
 
Adjusted Operating Profit
 
 
$
151

 
$
164

 
$
163

 
$
159

 
$
637

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, dollars in millions)
 
 
2018
 
 
 
 
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Full Year
 
 
Ratings
Operating Profit as Previously Reported
 
 
$
408

 
$
369

 
$
395

 
$
357

 
$
1,530

 
 
Net Impact from Allocation Methodology Change
 
 
6

 
6

 
6

 
6

 
24

 
 
Operating Profit
 
 
414

 
375

 
401

 
363

 
1,554

 
 
Non-GAAP Adjustments (a)
 
 
—

 
73

 
—

 
9

 
82

 
 
Deal-Related Amortization
 
 
—

 
1

 
1

 
1

 
2

 
 
Adjusted Operating Profit
 
 
$
415

 
$
449

 
$
402

 
$
373

 
$
1,637

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Intelligence
Operating Profit as Previously Reported
 
 
$
110

 
$
127

 
$
147

 
$
161

 
$
545

 
 
Net Impact from Allocation Methodology Change
 
 
(11
)
 
(11
)
 
(12
)
 
(12
)
 
(46
)
 
 
Operating Profit
 
 
99

 
116

 
135

 
149

 
500

 
 
Non-GAAP Adjustments (b)
 
 
—

 
—

 
2

 
5

 
7

 
 
Deal-Related Amortization
 
 
18

 
18

 
19

 
18

 
73

 
 
Adjusted Operating Profit
 
 
$
117

 
$
135

 
$
156

 
$
173

 
$
580

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Platts
Operating Profit as Previously Reported
 
 
$
90

 
$
98

 
$
98

 
$
97

 
$
383

 
 
Net Impact from Allocation Methodology Change
 
 
5

 
5

 
5

 
5

 
19

 
 
Operating Profit
 
 
95

 
103

 
103

 
102

 
401

 
 
Deal-Related Amortization
 
 
5

 
4

 
4

 
4

 
18

 
 
Adjusted Operating Profit
 
 
$
99

 
$
107

 
$
107

 
$
106

 
$
419

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indices
Operating Profit as Previously Reported
 
 
$
149

 
$
137

 
$
135

 
$
143

 
$
563

 
 
Net Impact from Allocation Methodology Change
 
 
—

 
—

 
1

 
1

 
3

 
 
Operating Profit
 
 
149

 
137

 
136

 
144

 
566

 
 
Deal-Related Amortization
 
 
1

 
1

 
1

 
1

 
6

 
 
Adjusted Operating Profit
 
 
$
150

 
$
139

 
$
137

 
$
145

 
$
571

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Note - Totals presented may not sum due to rounding.


(a) Q2 2019 and full year 2019 includes employee severance charges of $11 million. Q2 2018 and full year 2018 includes legal settlement expenses of
$73 million. Q4 2018 and full year 2018 includes employee severance charges of $8 million and legal settlement expenses of $1 million.

(b) Q2 2019 and full year 2019 includes employee severance charges $1 million. Q3 2019 and full year 2019 includes a gain on a disposition of $22
million. Q4 2019 and full year 2019 includes employee severance charges of $4 million and acquisition-related costs of $4 million. Q3 2018 and full
year 2018 includes restructuring charges related to a business disposition and employee severance charges of $2 million. Q4 2018 and full year 2018
includes employee severance charges of $5 million.

(c) Q2 2019 and full year 2019 includes employee severance charges of $1 million. Q3 2019 and full year 2019 includes a gain on disposition of $27
million.