S&P Global Inc.
For the period ended Jun 30, 2024. Filed Jul 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 30, 2024
SPGI$467.80-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-25.
0000064040-24-000125
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-30.
0000064040-24-000150
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 246 previous paragraphs and 289 current paragraphs.
174 unchanged; 56 reworded; 47 added; 14 removed; 2 previous and 12 current paragraphs rearranged.
Tables are not compared: 16 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (47)
Current report
2 Operating profit for the three and six months ended June 30, 2024 includes legal costs of $20 million, IHS Markit merger costs of $36 million and $72 million, respectively, a net acquisition-related benefit of $4 million and net acquisition-related costs of $1 million, respectively, employee severance charges of $11 million and $46 million, respectively, disposition-related costs of $3 million and asset write-offs of $2 million. Operating profit for the six months ended June 30, 2024 includes recovery of lease-related costs of $1 million. Operating profit for the three and six months ended June 30, 2023 includes a loss on disposition of $120 million and $69 million, respectively, IHS Markit merger costs of $51 million and $115 million, respectively, employee severance charges of $51 million and $62 million, respectively, lease impairments of $15 million, an asset impairment of $5 million, disposition-related costs of $3 million and $16 million, respectively, and acquisition-related costs of $2 million and $3 million, respectively. Operating profit also includes amortization of intangibles from acquisitions of $281 million and $275 million for the three months ended June 30, 2024 and 2023, respectively, and $560 million and $550 million for the six months ended June 30, 2024 and 2023, respectively.
Current report
Operating profit increased 59%. Excluding the impact of a loss on disposition in 2023 of 23 percentage points, higher employee severance charges in 2023 of 8 percentage points, higher IHS Markit merger costs in 2023 of 3 percentage points, lease impairments in 2023 of 3 percentage points and an asset impairment in 2023 of 1 percentage point, partially offset by legal costs in 2024 of 4 percentage points and higher amortization of intangibles from acquisitions in 2024 of 1 percentage point, operating profit increased 26%. The increase was primarily due to revenue growth, partially offset by higher compensation costs driven by annual merit increases, increased incentives as a result of financial performance and higher technology costs. Foreign exchange rates had a favorable impact of 1 percentage point.
Current report
Operating profit increased 38%. Excluding the impact of loss on dispositions, net in 2023 of 8 percentage points, higher IHS Markit merger costs in 2023 of 5 percentage points, lease impairments in 2023 of 2 percentage points, higher disposition-related costs in 2023 of 2 percentage points, higher employee severance charges in 2023 of 1 percentage point and an asset impairment in 2023 of 1 percentage point, partially offset by legal costs in 2024 of 2 percentage points and higher amortization of intangibles from acquisitions in 2024 of 1 percentage point, operating profit increased 22%. The increase was primarily due to revenue growth, partially offset by higher compensation costs driven by annual merit increases, increased incentives as a result of financial performance and higher technology costs. Foreign exchange rates had a favorable impact of 2 percentage points.
Current report
1 In 2024, selling and general expenses include a net acquisition-related benefit of $11 million, IHS Markit merger costs of $9 million and employee severance charges of $4 million. In 2023, selling and general expenses include employee severance charges of $16 million, IHS Markit merger costs of $12 million and an asset impairment of $5 million.
Current report
2 In 2024, selling and general expenses include legal costs of $20 million. In 2023, selling and general expenses include employee severance charges of $4 million.
Current report
3 In 2024, selling and general expenses include IHS Markit merger costs of $5 million, an asset write-off of $1 million and disposition-related costs of $1 million. In 2023, selling and general expenses include employee severance charges of $14 million and IHS Markit merger costs of $8 million.
Current report
4 In 2024, selling and general expenses include employee severance charges of $6 million, IHS Markit merger costs of $1 million and acquisition-related costs of $1 million. In 2023, selling and general expenses include employee severance charges of $3 million and acquisition-related costs of $1 million.
Current report
7 In 2024, selling and general expenses include IHS Markit merger costs of $20 million, acquisition-related costs of $6 million and disposition-related costs of $2 million. In 2023, selling and general expenses include IHS Markit merger costs of $30 million, lease impairments of $15 million, employee severance charges of $12 million, disposition-related costs of $3 million and acquisition-related costs of $1 million.
Current report
Operating-related expenses increased 6% primarily driven by higher compensation costs, increased incentives and higher technology costs, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023.
Current report
Depreciation and amortization increased 3% to $291 million primarily due to higher intangible asset amortization driven by the acquisition of Visible Alpha in May of 2024.
Current report
1 In 2024, selling and general expenses include a net acquisition-related benefit of $8 million, IHS Markit merger costs of $20 million and employee severance charges of $35 million. In 2023, selling and general expenses include IHS Markit merger costs of $25 million, employee severance charges of $22 million and an asset impairment of $5 million.
Current report
2 In 2024, selling and general expenses include legal costs of $20 million and employee severance charges of $2 million. In 2023, selling and general expenses include employee severance charges of $5 million, respectively.
Current report
3 In 2024, selling and general expenses include IHS Markit merger costs of $10 million, an asset write-off of $1 million and disposition-related costs of $1 million. In 2023, selling and general expenses include IHS Markit merger costs of $20 million and employee severance charges of $15 million.
Current report
4 In 2024, selling and general expenses include employee severance charges of $6 million, IHS Markit merger costs of $1 million and acquisition-related costs of $1 million. In 2023, selling and general expenses include employee severance charges of $4 million, acquisition-related costs of $1 million and IHS Markit merger costs of $1 million.
Current report
5 In 2024, selling and general expenses include IHS Markit merger costs of $3 million and employee severance charges of $1 million. In 2023, selling and general expenses include employee severance charges of $3 million and IHS Markit merger costs of $2 million.
Current report
7 In 2024, selling and general expenses include IHS Markit merger costs of $38 million, acquisition-related costs of $7 million, disposition-related costs of $3 million, employee severance charges of $2 million and recovery of lease-related costs of $1 million. In 2023, selling and general expenses include IHS Markit merger costs of $66 million, lease impairments of $15 million, disposition-related costs of $16 million, employee severance charges of $14 million and acquisition-related costs of $2 million.
Current report
Operating-Related Expenses
Current report
Operating-related expenses increased 4% primarily driven by higher compensation costs, increased incentives and higher technology costs, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023.
Current report
Selling and General Expenses
Current report
Selling and general expenses decreased 3%. Excluding the impact of higher IHS Markit merger costs in 2023 of 3 percentage points, lease impairments in 2023 of 1 percentage point, higher disposition-related costs in 2023 of 1 percentage point, higher employee severance charges in 2023 of 1 percentage point and a net acquisition-related benefit in 2024 of 1 percentage point, partially offset by legal costs in 2024 of 1 percentage point, selling and general expenses increased 3%. The increase was primarily driven by higher compensation costs, increased incentives and higher technology costs, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023.
Current report
Depreciation and Amortization
Current report
Depreciation and amortization increased 1% to $579 million primarily due to higher intangible asset amortization driven by the acquisition of Visible Alpha in May of 2024.
Current report
Loss on Dispositions, net
Current report
•During the three months ended June 30, 2023, we recorded a pre-tax loss of $120 million in Loss on dispositions, net and disposition-related costs of $3 million in selling and general expenses in the consolidated statement of income ($189 million after-tax, net of a release of a deferred tax liability of $101 million) related to the sale of Engineering Solutions. During the six months ended June 30, 2023, we recorded a pre-tax loss of $120 million in Loss on dispositions, net and disposition-related costs of $16 million in selling and general expenses in the consolidated statement of income ($182 million after-tax, net of a release of a deferred tax liability of $157 million) related to the sale of Engineering Solutions.
Current report
1 2024 includes a net acquisition-related benefit of $11 million, IHS Markit merger costs of $9 million and employee severance charges of $4 million. 2023 includes employee severance charges of $16 million, IHS Markit merger costs of $12 million and an asset impairment of $5 million. 2024 and 2023 include amortization of intangibles from acquisitions of $147 million and $140 million, respectively.
Current report
5 2024 includes IHS Markit merger costs of $2 million and a loss on disposition of $1 million. 2023 includes employee severance charges of $2 million and IHS Markit merger costs of $1 million. 2024 and 2023 include amortization of intangibles from acquisitions of $9 million.
Current report
6 2024 includes IHS Markit merger costs of $20 million, acquisition-related costs of $6 million, disposition-related costs of $2 million and a gain on disposition of $2 million. 2023 includes a loss on disposition of $120 million, IHS Markit merger costs of $30 million, lease impairments of $15 million, employee severance charges of $12 million, disposition-related costs of $3 million and acquisition-related costs of $1 million. 2024 and 2023 includes amortization of intangibles from acquisitions of $1 million.
Current report
Segment Operating Profit — Segment operating profit increased 35% as compared to 2023. Excluding the impact of higher employee severance charges in 2023 of 13 percentage points, a net acquisition-related benefit in 2024 of 5 percentage points, higher IHS Markit merger costs in 2023 of 3 percentage point and an asset impairment in 2023 of 2 percentage points, partially offset by legal costs in 2024 of 10 percentage points, higher amortization of intangibles from acquisitions in 2024 of 3 percentage points and an asset write-off in 2024 of 1 percentage point, segment operating profit increased 26%. The increase was primarily due to revenue growth, partially offset by higher compensation costs driven by annual merit increases, increased incentives as a result of financial performance and higher technology costs. See “Segment Review” below for further information.
Current report
2 2024 includes legal costs of $20 million and employee severance charges of $2 million. 2023 includes employee severance charges $5 million. 2024 and 2023 include amortization of intangibles from acquisitions of $9 million and $4 million, respectively.
Current report
32024 includes IHS Markit merger costs of $10 million, an asset write-off of $1 million and disposition-related costs of $1 million. 2023 includes IHS Markit merger costs of $20 million and employee severance charges of $15 million. 2024 and 2023 include amortization of intangibles from acquisitions of $65 million and $66 million, respectively.
Current report
4 2024 includes employee severance charges of $6 million, IHS Markit merger costs of $1 million and acquisition-related costs of $1 million. 2023 includes employee severance charges of $4 million, acquisition-related costs of $1 million and IHS Markit merger costs of $1 million. 2024 and 2023 include amortization of intangibles from acquisitions of $151 million and $150 million, respectively.
Current report
72024 includes IHS Markit merger costs of $38 million, acquisition-related costs of $7 million, disposition-related costs of $3 million, a gain on disposition of $2 million, employee severance charges of $2 million and recovery of lease-related costs of $1 million. 2023 includes a loss on disposition of $120 million, IHS Markit merger costs of $66 million, lease impairments of $15 million, disposition-related costs of $16 million, employee severance charges of $14 million and acquisition-related costs of $2 million. 2024 and 2023 include amortization of intangibles from acquisitions of $1 million and $2 million, respectively.
Current report
8 2024 and 2023 include amortization of intangibles from acquisitions of $28 million.
Current report
Other Income, net
Current report
1 Operating profit for thethree and six months ended June 30, 2024 includes a net acquisition-related benefit of $11 million and $8 million, respectively, IHS Markit merger costs of $9 million and $20 million, respectively, and employee severance charges of $4 million and $35 million, respectively. Operating profit for the three and six months ended June 30, 2023 includes employee severance charges of $16 million and $22 million, respectively, IHS Markit merger costs of $12 million and $25 million, respectively, and an asset impairment of $5 million. Operating profit for the six months ended June 30, 2023 includes a gain on disposition of $46 million. Additionally, operating profit includes amortization of intangibles from acquisitions of $147 million and $140 million for the three months ended June 30, 2024 and 2023, respectively, and $288 million and $281 million for the six months ended June 30, 2024 and 2023, respectively.
Current report
Revenue increased 7% primarily due to subscription revenue growth for work flow solutions at Enterprise Solutions, data feed products within Data and Advisory Solutions, Market Intelligence Desktop products, and RatingsXpress®, RatingsDirect® within Credit & Risk Solutions. An increase in recurring variable revenue due to increased volumes and an increase in non-subscription revenue also contributed to revenue growth. Foreign exchange rates had an unfavorable impact of less than 1 percentage point.
Current report
1 Operating profit for the three and six months ended June 30, 2024 includes legal costs of $20 million. Operating profit for the six months ended June 30, 2024 includes employee severance charges of $2 million. Operating profit for the three and six months ended June 30,
Current report
2023 includes employee severance charges of $4 million and $5 million, respectively. Additionally, operating profit includes amortization of intangibles from acquisitions of $2 million for the three months ended June 30, 2024 and 2023, and $9 million and $4 million for the six months ended June 30, 2024 and 2023, respectively.
Current report
Operating profit increased 49%. Excluding the impact of legal costs in 2024 of 4 percentage points, partially offset by higher employee severance charges in 2023 of 1 percentage point, operating profit increased 52% due to revenue growth. This growth was partially offset by increased incentives as result of financial performance and higher compensation costs driven by annual merit increases and additional headcount. Foreign exchange rates had a favorable impact of 1 percentage point.
Current report
Note - Totals presented may not sum due to rounding.
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Removed paragraphs (14)
Previous report
2 2024 includes IHS Markit merger costs of $36 million, employee severance charges of $35 million, acquisition-related costs of $5 million and recovery of lease-related costs of $1 million. 2023 includes IHS Markit merger costs of $64 million, a gain on dispositions of $50 million, disposition-related costs of $13 million, employee severance charges of $12 million and acquisition-related costs of $2 million. 2024 and 2023 also include amortization of intangibles from acquisitions of $278 million and $275 million, respectively.
Previous report
1 In 2024, selling and general expenses include employee severance charges of $31 million, IHS Markit merger costs of $11 million and acquisition-related costs of $3 million. In 2023, selling and general expenses include IHS Markit merger costs of $13 million and employee severance charges of $6 million.
Previous report
2 In 2024 and 2023, selling and general expenses include employee severance charges of $2 million and $1 million, respectively.
Previous report
3 In 2024, selling and general expenses include IHS Markit merger costs of $5 million. In 2023, selling and general expenses includes IHS Markit merger costs of $13 million and employee severance charges of $2 million.
Previous report
4 In 2024, selling and general expenses include IHS Markit merger costs of $1 million. In 2023, selling and general expenses includes IHS Markit merger costs of $1 million and acquisition-related costs of $1 million.
Previous report
7 In 2024, selling and general expenses include 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. In 2023, selling and general expenses 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.
Previous report
Operating-related expenses increased 3% primarily driven by higher compensation costs, increased incentives and higher technology costs, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023.
Previous report
Depreciation and amortization remained unchanged at $287 million due to higher intangible asset amortization offset by lower depreciation driven by asset disposals.
Previous report
Gain on Disposition
Previous report
2 2024 and 2023 include include employee severance charges of $2 million and $1 million, respectively, and amortization of intangibles from acquisitions of $7 million and $2 million, respectively.
Previous report
Other (Income) Expense, net
Previous report
1 2024 includes employee severance charges of $31 million, IHS Markit merger costs of $11 million and acquisition-related costs of $3 million. 2023 includes a gain on disposition of $46 million, IHS Markit merger costs of $13 million and employee severance charges of $6 million. 2024 and 2023 also include amortization of intangibles from acquisitions of $140 million and $141 million, respectively.
Previous report
12024 and 2023 include employee severance charges of $2 million and $1 million, respectively, and amortization of intangibles from acquisitions of $7 million and $2 million, respectively.
Previous report
1 2024 includes IHS Markit merger costs of $1 million. 2023 includes IHS Markit merger costs of $1 million and acquisition-related costs of $1 million. 2024 and 2023 also include amortization of intangibles from acquisitions of $76 million and $74 million, respectively.
Reworded paragraphs (56)
Previous wording
The following Management’s Discussion and Analysis (“MD&A”) provides a narrative of the results of operations and financial condition of S&P Global Inc. (together with its consolidated subsidiaries, “S&P Global,” the “Company,” “we,” “us” or “our”) for the three months ended March 31, 2024. The MD&A should be read in conjunction with the consolidated financial statements, accompanying notes and MD&A included in our Form 10-K for the year ended December 31, 2023 (our “Form 10-K”), which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The MD&A includes the following sections:
Current wording
The following Management’s Discussion and Analysis (“MD&A”) provides a narrative of the results of operations and financial condition of S&P Global Inc. (together with its consolidated subsidiaries, “S&P Global,” the “Company,” “we,” “us” or “our”) for the three and six months ended June 30, 2024. The MD&A should be read in conjunction with the consolidated financial statements, accompanying notes and MD&A included in our Form 10-K for the year ended December 31, 2023 (our “Form 10-K”), which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The MD&A includes the following sections:
Previous wording
•Results of Operations — Comparing the Three Months Ended March 31, 2024 and 2023
Current wording
•Results of Operations — Comparing the Three and Six Months Ended June 30, 2024 and 2023
Previous wording
Key results for the three months ended March 31 are as follows:
Current wording
Key results for the periods ended June 30 are as follows:
Previous wording
Revenue increased 10% driven by increases at Ratings, Market Intelligence, Commodity Insights, Indices and Mobility, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023. The increase at Ratings was driven by growth in both transaction revenue and non-transaction revenue. Transaction revenue increased primarily due to growth in corporate bond ratings revenue and bank loan ratings revenue driven by increased issuance volumes due to higher refinancing activity. Non-transaction revenue increased due to an increase in surveillance revenue, higher Ratings Evaluation Service (“RES”) revenue and an increase in new entity credit ratings revenue. The increase at Market Intelligence was primarily due to subscription revenue growth for data feed products within Data and Advisory Solutions, work flow solutions at Enterprise Solutions, RatingsXpress®, RatingsDirect® within Credit & Risk Solutions, and Market Intelligence Desktop products. Revenue growth at Commodity Insights was primarily due to continued demand for market data and market insights products. The increase at Mobility was primarily due to new business growth within the Dealer business as well as the favorable impact of the acquisition of Market Scan in February of 2023. The increase at Indices was primarily due to higher asset-linked fees revenue and higher exchange-traded derivative revenue. Foreign exchange rates had a favorable impact of less than 1 percentage point.
Current wording
Revenue increased 12% driven by increases at Ratings, Market Intelligence, Commodity Insights, Indices and Mobility, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023. The increase at Ratings was driven by growth in both transaction revenue and non-transaction revenue. Transaction revenue increased primarily due to growth in corporate bond ratings revenue and bank loan ratings revenue driven by increased issuance volumes due to higher refinancing activity. Non-transaction revenue increased due to an increase in surveillance revenue, an increase in new entity credit ratings revenue and higher Ratings Evaluation Service (“RES”) revenue. The increase at Market Intelligence was primarily due to subscription revenue growth for work flow solutions at Enterprise Solutions, data feed products within Data and Advisory Solutions, Market Intelligence Desktop products, and RatingsXpress®, RatingsDirect® within Credit & Risk Solutions. Revenue growth at Commodity Insights was primarily due to continued demand for market data and market insights products. The increase at Indices was primarily due to higher asset-linked fees revenue, higher exchange-traded derivative revenue and higher data subscription revenue. The increase at Mobility was primarily due to new business growth within the Dealer business, strong underwriting volumes within the Financial business as well as the favorable impact of the acquisition of Market Scan in February of 2023. Foreign exchange rates had an unfavorable impact of less than 1 percentage point.
Previous wording
RESULTS OF OPERATIONS — COMPARING THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023
Current wording
RESULTS OF OPERATIONS — COMPARING THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
Previous wording
The following table provides consolidated revenue information for the three months ended March 31:
Current wording
The following table provides consolidated revenue information for the periods ended June 30:
Previous wording
Revenue increased 10% as compared to the three months ended March 31, 2023. Subscription revenue increased in the three month period primarily due to growth in data feed products within Data and Advisory Solutions, work flow solutions at Enterprise Solutions, RatingsXpress®, RatingsDirect® within Credit & Risk Solutions and Desktop products at Market Intelligence, continued demand for Commodity Insights market data and market insights products and new business growth within the Dealer business as well as the favorable impact of the acquisition of Market Scan in February of 2023 at Mobility, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023. Non-subscription / transaction revenue increased primarily due to growth in corporate bond ratings revenue and bank loan ratings revenue driven by increased issuance volumes due to higher refinancing activity. Non-transaction revenue increased due to an increase in surveillance revenue, higher RES revenue and an increase in new entity credit ratings revenue. Asset linked fees increased at Indices primarily due to higher levels of assets under management (“AUM”) for ETFs and mutual funds. The increase in sales-usage based royalties was primarily driven by higher exchange-traded derivative revenue at Indices. An increase in sales usage-based royalties from the licensing of our proprietary market data and price assessments to commodity exchanges at Commodity Insights also contributed to revenue growth. Recurring variable revenue at Market Intelligence increased due to increased volumes. See “Segment Review” below for further information.
Current wording
Revenue increased 12% as compared to the six months ended June 30, 2023. Subscription revenue increased in the six month period primarily due to growth in work flow solutions at Enterprise Solutions, data feed products within Data and Advisory Solutions, Market Intelligence Desktop products, and RatingsXpress®, RatingsDirect® within Credit & Risk Solutions at Market Intelligence, continued demand for Commodity Insights market data and market insights products and new business growth within the Dealer business, strong underwriting volumes within the Financial business as well as the favorable impact of the acquisition of Market Scan in February of 2023 at Mobility, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023. Non-subscription / transaction revenue increased primarily due to growth in corporate bond ratings revenue and bank loan ratings revenue driven by increased issuance volumes due to higher refinancing activity. Non-transaction revenue increased due to an increase in surveillance revenue, an increase in new entity credit ratings revenue and higher RES revenue. Asset linked fees increased at Indices primarily due to higher levels of AUM for ETFs and mutual funds. The increase in sales-usage based royalties was driven by the licensing of our proprietary market data to commodity exchanges at Commodity Insights and higher exchange-traded derivative revenue at Indices. Recurring variable revenue at Market Intelligence increased due to increased volumes. See “Segment Review” below for further information.
Previous wording
The favorable impact of foreign exchange rates increased revenue by less than 1 percentage point. This impact refers to constant currency comparisons estimated by recalculating current year results of foreign operations using the average exchange rate from the prior year.
Current wording
The unfavorable impact of foreign exchange rates reduced revenue by less than 1 percentage point. This impact refers to constant currency comparisons estimated by recalculating current year results of foreign operations using the average exchange rate from the prior year.
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The following tables provide an analysis by segment of our operating-related expenses and selling and general expenses for the three months ended March 31:
Current wording
The following tables provide an analysis by segment of our operating-related expenses and selling and general expenses for the periods ended June 30:
Previous wording
5 In 2024, selling and general expenses include IHS Markit merger costs of $1 million and employee severance charges of $1 million. In 2023, selling and general expenses include employee severance charges of $1 million and IHS Markit merger costs of $1 million.
Current wording
5 In 2024, selling and general expenses include IHS Markit merger costs of $2 million. In 2023, selling and general expenses include employee severance charges of $2 million and IHS Markit merger costs of $1 million.
Previous wording
Selling and general expenses remained unchanged compared to 2023. Excluding the impact of higher IHS Markit merger costs in 2023 of 5 percentage points and higher disposition-related costs in 2023 of 2 percentage points, partially offset by higher employee severance charges in 2024 of 4 percentage points, selling and general expenses increased 3%. The increase was primarily driven by higher compensation costs and increased incentives, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023.
Current wording
Selling and general expenses decreased 5%. Excluding the impact of higher employee severance charges in 2023 of 6 percentage points, higher IHS Markit merger costs in 2023 of 2 percentage points, lease impairments in 2023 of 2 percentage points, a net acquisition-related benefit in 2024 of 1 percentage point and an asset impairment in 2023 of 1 percentage point, partially offset by legal costs in 2024 of 3 percentage points, selling and general expenses increased 4%. The increase was primarily driven by higher compensation costs, increased incentives and higher technology costs, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023.
Previous wording
During the three months ended March 31, 2023, we received a contingent payment that resulted in a pre-tax gain of $50 million which was included in Gain on disposition in the consolidated statement of income:
Current wording
During the three and six months ended June 30, 2023, we completed the following disposition and received a contingent payment that were included in Loss on dispositions, net in the consolidated statement of income:
Previous wording
•In the first quarter of 2023, we received a contingent payment following the sale of Leveraged Commentary and Data (“LCD”) along with a related family of leveraged loan indices in June of 2022. The contingent payment was payable six months following the closing upon the achievement of certain conditions related to the transition of LCD customer relationships. During the three months ended March 31, 2023, the contingent payment resulted in a pre-tax gain of $46 million ($34 million after-tax) related to the sale of LCD in our Market Intelligence segment and $4 million ($3 million after-tax) related to the sale of a family of leveraged loan indices in our Indices segment.
Current wording
•In the first quarter of 2023, we received a contingent payment following the sale of Leveraged Commentary and Data (“LCD”) along with a related family of leveraged loan indices in June of 2022. The contingent payment was payable six months following the closing upon the achievement of certain conditions related to the transition of LCD customer relationships. During the six months ended June 30, 2023, the contingent payment resulted in a pre-tax gain of $46 million ($34 million after-tax) related to the sale of LCD in our Market Intelligence segment and $4 million ($3 million after-tax) related to the sale of a family of leveraged loan indices in our Indices segment.
Previous wording
The tables below reconcile segment operating profit to total operating profit for the three months ended March 31:
Current wording
The tables below reconcile segment operating profit to total operating profit for the periods ended June 30:
Previous wording
62023 includes amortization of intangibles from acquisitions of $2 million.
Current wording
2 2024 includes legal costs of $20 million. 2023 includes employee severance charges of $4 million. 2024 and 2023 include amortization of intangibles from acquisitions of $2 million.
Previous wording
32024 includes IHS Markit merger costs of $5 million. 2023 includes IHS Markit merger costs of $13 million and employee severance charges of $2 million. 2024 and 2023 include amortization of intangibles from acquisitions of $32 million and $33 million, respectively.
Current wording
32024 includes IHS Markit merger costs of $5 million, an asset write-off of $1 million and disposition-related costs of $1 million. 2023 includes employee severance charges of $14 million and IHS Markit merger costs of $8 million. 2024 and 2023 include amortization of intangibles from acquisitions of $32 million and $33 million, respectively.
Previous wording
4 2024 includes IHS Markit merger costs of $1 million. 2023 includes IHS Markit merger costs of $1 million and acquisition-related costs of $1 million. 2024 and 2023 include amortization of intangibles from acquisitions of $76 million and $74 million, respe ctively.
Current wording
4 2024 includes employee severance charges of $6 million, IHS Markit merger costs of $1 million and acquisition-related costs of $1 million. 2023 includes employee severance charges of $3 million and acquisition-related costs of $1 million. 2024 and 2023 include amortization of intangibles from acquisitions of $76 million.
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8 2024 and 2023 include amortization of intangibles from acquisitions of $14 million.
Current wording
7 2024 and 2023 include amortization of intangibles from acquisitions of $14 million.
Previous wording
Corporate Unallocated Expense — Corporate Unallocated expense includes costs for corporate functions, select initiatives, unoccupied office space and Kensho, included in selling and general expenses. Corporate Unallocated expense decreased 27% compared to 2023. Excluding the impact of higher IHS Markit merger costs in 2023 of 40 percentage points, higher disposition-related costs in 2023 of 27 percentage points and recovery of lease-related costs in 2024 of 2 percentage point, partially offset by employee severance costs in 2024 of 1 percentage point, Corporate Unallocated expense increased 41% primarily due to higher compensation costs.
Current wording
Corporate Unallocated Expense — Corporate Unallocated expense includes costs for corporate functions, select initiatives, unoccupied office space and Kensho, included in selling and general expenses. Corporate Unallocated expense decreased 70% compared to 2023. Excluding the impact of a loss on disposition in 2023 of 62 percentage points, lease impairments in 2023 of 7 percentage points, higher employee severance costs in 2023 of 6 percentage points, higher IHS Markit merger costs in 2023 of 5 percentage points and higher disposition-related costs in 2023 of 1 percentage point, partially offset by higher acquisition-related costs in 2024 of 3 percentage points, Corporate Unallocated expense increased 8% primarily due to higher compensation costs.
Previous wording
1 2024 includes employee severance charges of $31 million, IHS Markit merger costs of $11 million and acquisition-related costs of $3 million. 2023 includes a gain on disposition of $46 million, IHS Markit merger costs of $13 million and employee severance charges of $6 million. 2024 and 2023 include amortization of intangibles from acquisitions of $140 million and $141 million, respectively.
Current wording
1 2024 includes a net acquisition-related benefit of $8 million, IHS Markit merger costs of $20 million and employee severance charges of $35 million. 2023 includes a gain on disposition of $46 million, IHS Markit merger costs of $25 million, employee severance charges of $22 million and an asset impairment of $5 million. 2024 and 2023 include amortization of intangibles from acquisitions of $288 million and $281 million, respectively.
Previous wording
5 2024 includes IHS Markit merger costs of $1 million and employee severance charges of $1 million. 2023 includes a gain on disposition of $4 million, employee severance charges of $1 million and IHS Markit merger costs of $1 million. 2024 and 2023 include amortization of intangibles from acquisitions of $9 million.
Current wording
5 2024 includes IHS Markit merger costs of $3 million, a loss on disposition of $1 million and employee severance charges of $1 million. 2023 includes a gain on disposition of $4 million, employee severance charges of $3 million and IHS Markit merger costs of $2 million. 2024 and 2023 include amortization of intangibles from acquisitions of $18 million.
Previous wording
7 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. 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. 2023 includes amortization of intangibles from acquisitions of $1 million.
Current wording
6 2023 includes amortization of intangibles from acquisitions of $1 million.
Previous wording
Segment Operating Profit — Segment operating profit increased 19% as compared to 2023. Excluding the impact of a gain on disposition in 2023 of 1 percentage point, segment operating profit increased 20%. The increase was primarily due to revenue growth, higher compensation costs driven by annual merit increases, increased incentives as a result of financial performance and higher technology costs. See “Segment Review” below for further information.
Current wording
Segment Operating Profit — Segment operating profit increased 26% as compared to 2023. Excluding the impact of a gain on disposition in 2023 of 3 percentage points, higher amortization of intangibles from acquisitions in 2024 of 1 percentage point and legal costs in 2024 of 1 percentage point, partially offset by higher IHS Markit merger costs in 2023 of 1 percentage point and a net acquisition-related benefit in 2024 of 1 percentage point, segment operating profit increased 23%. The increase was primarily due to revenue growth, partially offset by higher compensation costs driven by annual merit increases, increased incentives as a result of financial performance and higher technology costs. See “Segment Review” below for further information.
Previous wording
Equity in Income on Unconsolidated Subsidiaries — The Company holds an investment in a 50/50 joint venture arrangement with shared control with CME Group that combined each company’s post-trade services into a joint venture, OSTTRA. The joint venture provides trade processing and risk mitigation operations and incorporates CME’s optimization businesses (Traiana, TriOptima, and Reset) and the Company’s MarkitSERV business. The combination is intended to increase operating efficiencies of both businesses to more effectively service clients with enhanced platforms and services for OTC markets across interest rate, FX, equity, and credit asset classes. Equity in Income on Unconsolidated Subsidiaries includes the OSTTRA joint venture acquired in connection with the merger with IHS Markit. Equity in Income on Unconsolidated Subsidiaries was$6 million for the three months ended March 31, 2024 compared to$14 million for the three months ended March 31, 2023.
Current wording
Equity in Income on Unconsolidated Subsidiaries — The Company holds an investment in a 50/50 joint venture arrangement with shared control with CME Group that combines each company’s post-trade services into a joint venture, OSTTRA. The joint venture provides trade processing and risk mitigation operations and incorporates CME’s optimization businesses (Traiana, TriOptima, and Reset) and the Company’s MarkitSERV business. The combination is intended to increase operating efficiencies of both businesses to more effectively service clients with enhanced platforms and services for OTC markets across interest rate, FX, equity, and credit asset classes. Equity in Income on Unconsolidated Subsidiaries includes the OSTTRA joint venture acquired in connection with the merger with IHS Markit. Equity in Income on Unconsolidated Subsidiaries was $19 million for the six months ended June 30, 2024 compared to $25 million for the six months ended June 30, 2023.
Previous wording
Other (income) expense, net includes gains and losses on our mark-to-market investments and the net periodic benefit cost for our retirement and post retirement plans. Other income, net was $9 million for the three months ended March 31, 2024 compared to Other expense, net of $11 million for the three months ended March 31, 2023 primarily due to gains on our mark-to-market investments in 2024 compared to losses in 2023.
Current wording
Other income, net includes gains and losses on our mark-to-market investments and the net periodic benefit cost for our retirement and post retirement plans. Other income, net was $3 million for the three months ended June 30, 2024 compared to $11 million for the three months ended June 30, 2023 primarily due to losses on our mark-to-market investments in 2024 compared to gains in 2023. Other income, net increased to $13 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily due to gains on our mark-to-market investments in 2024 compared to losses in 2023.
Previous wording
Interest expense, net decreased $7 million or 8% compared to the three months ended March 31, 2023 primarily due to higher interest income from invested cash due to a more favorable interest rate environment combined with a benefit from our net investment hedge program.
Current wording
Interest expense, net decreased $11 million or 13% compared to the three months ended June 30, 2023 and $18 million or 11% compared to the six months ended June 30, 2023 primarily due to higher interest income from invested cash due to a more favorable interest rate environment combined with a benefit from our net investment hedge program.
Previous wording
The effective income tax rate was 18.8% and 17.9% for the three months ended March 31, 2024 and 2023, respectively. The increase in the three months ended March 31, 2024 was primarily due to change in mix of income by jurisdiction.
Current wording
The effective income tax rate was 21.3% and 20.1% for the three and six months ended June 30, 2024, respectively, and 31.1% and 23.8% for the three and six months ended June 30, 2023, respectively. The higher 2023 rates are primarily due to the tax charge on divestitures and change in mix of income by jurisdiction.
Previous wording
On February 20, 2024, we entered into an agreement to acquire Visible Alpha, the financial technology provider of deep industry and segment consensus data, sell-side analyst models and analytics from high-quality, exclusive sources. The acquisition is expected to create a premium offering of fundamental investment research capabilities on Market Intelligence’s Capital IQ Pro platform. The combination of Visible Alpha with S&P Capital IQ Pro, the flagship S&P Global platform for research and analysis across institutional and corporate markets, reflects S&P Global’s continued commitment to be the foremost provider in this space. The transaction with Visible Alpha is subject to customary closing conditions, including receipt of certain regulatory approvals, and is expected to close during 2024. The proposed acquisition of Visible Alpha is not expected to be material to our consolidated financial statements.
Current wording
On May 1, 2024, we completed the acquisition of Visible Alpha, the financial technology provider of deep industry and segment consensus data creating a premium offering of fundamental investment research capabilities on Market Intelligence’s Capital IQ Pro platform. The acquisition is part of our Market Intelligence segment and further enhances the depth and breadth of the overall Visible Alpha and S&P Capital IQ Pro offering. The acquisition of Visible Alpha is not material to our consolidated financial statements.
Previous wording
On February 20, 2024 we announced our intent to explore strategic opportunities for Fincentric, formerly known as Markit Digital. Fincentric is S&P Global’s premier digital solutions provider focused on developing mobile applications and websites for retail brokerages and other financial institutions. Fincentric specializes in designing cutting-edge financial data visualizations, interfaces and investor experiences. Fincentric joined S&P Global through the merger with IHS Markit and is part of our Market Intelligence segment. The assets and liabilities of Fincentric were classified as held for sale in our consolidated balance sheet as of March 31, 2024. The proposed divestiture of Fincentric is not expected to be material to our consolidated financial statements.
Current wording
On July 26, 2024, we entered into an agreement to sell Fincentric, formerly known as Markit Digital. This agreement follows our announced intent to explore strategic opportunities for Fincentric in February of 2024. Fincentric is S&P Global’s premier digital solutions provider focused on developing mobile applications and websites for retail brokerages and other financial institutions. Fincentric specializes in designing cutting-edge financial data visualizations, interfaces and investor experiences. Fincentric joined S&P Global through the merger with IHS Markit and is part of our Market Intelligence segment. The assets and liabilities of Fincentric were classified as held for sale in our consolidated balance sheet as of June 30, 2024. This transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the third quarter of 2024. The anticipated divestiture of Fincentric is not expected to be material to our consolidated financial statements.
Previous wording
In the first quarter of 2023, we received a contingent payment following the sale of Leveraged Commentary and Data (“LCD”) that resulted in a pre-tax gain of $46 million ($34 million after-tax) which was included in Gain on disposition in the consolidated statements of income.
Current wording
In the first quarter of 2023, we received a contingent payment following the sale of Leveraged Commentary and Data (“LCD”) that resulted in a pre-tax gain of $46 million ($34 million after-tax) which was included in Loss on dispositions, net in the consolidated statements of income.
Previous wording
Operating profit decreased 17%. Excluding the impact of a gain on disposition in 2023 of 17 percentage points and higher employee severance charges in 2024 of 9 percentage points, operating profit increased 9% primarily due to revenue growth, partially offset by higher compensation costs driven by annual merit increases and increased technology costs. Foreign exchange rates had a favorable impact of 4 percentage points.
Current wording
Operating profit increased 31%. Excluding the impact of a net acquisition-related benefit in 2024 of 10 percentage points, higher employee severance charges in 2023 of 11 percentage points, an asset-impairment in 2023 of 5 percentage points and higher IHS merger costs in 2023 of 3 percentage points, partially offset by higher amortization of intangibles from acquisitions of 7 percentage points, operating profit increased 9% primarily due to revenue growth, partially offset by higher compensation costs driven by annual merit increases and increased technology costs. Foreign exchange rates had a favorable impact of 5 percentage points.
Previous wording
Revenue increased 7% primarily due to subscription revenue growth for data feed products within Data and Advisory Solutions, work flow solutions at Enterprise Solutions, RatingsXpress®, RatingsDirect® within Credit & Risk Solutions, and Market Intelligence Desktop products. An increase in recurring variable revenue due to increased volumes also contributed to revenue growth. These increases were partially offset by a slight decrease in non-subscription revenue. Foreign exchange rates had a favorable impact of 1 percentage point.
Current wording
Revenue increased 7% primarily due to subscription revenue growth for work flow solutions at Enterprise Solutions, data feed products within Data and Advisory Solutions, Market Intelligence Desktop products, and RatingsXpress®, RatingsDirect® within Credit & Risk Solutions. An increase in recurring variable revenue due to increased volumes and an increase in non-subscription revenue also contributed to revenue growth. Foreign exchange rates had a favorable impact of less than 1 percentage point.
Previous wording
Operating profit increased 21%. Excluding the impact of a gain on disposition in 2023 of 3 percentage points and higher employee severance charges in 2024 of 1 percentage point, partially offset by higher IHS Markit merger costs in 2023 of 1 percentage point and higher disposition-related costs in 2023 of 1 percentage point, operating profit increased 19%. The increase was primarily due to revenue growth, partially offset by higher compensation costs driven by annual merit increases, increased incentives as a result of financial performance and higher technology costs. Foreign exchange rates had a favorable impact of 2 percentage points.
Current wording
Operating profit increased 4%. Excluding the impact of a gain on disposition in 2023 of 5 percentage points, higher employee severance charges in 2024 of 1 percentage point and higher amortization of intangibles from acquisitions in 2024 of 1 percentage point, partially offset by higher IHS Markit merger costs in 2023 of 1 percentage point and an asset impairment in 2023 of 1 percentage point, operating profit increased 9% primarily due to revenue growth, partially offset by higher compensation costs driven by annual merit increases and increased technology costs. Foreign exchange rates had a favorable impact of 5 percentage points.
Previous wording
Non-transaction revenue primarily includes fees for surveillance of a credit rating, annual fees for customer relationship-based pricing programs, fees for entity credit ratings and global research and analytics at CRISIL. Non-transaction revenue also includes an intersegment royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings. Royalty revenue was $40 million and $36 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Non-transaction revenue primarily includes fees for surveillance of a credit rating, annual fees for customer relationship-based pricing programs, fees for entity credit ratings and global research and analytics at CRISIL. Non-transaction revenue also includes an intersegment royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings. Royalty revenue was $40 million and $79 million for the three and six months ended June 30, 2024, respectively, and $38 million and $74 million for the three and six months ended June 30, 2023, respectively.
Previous wording
Revenue increased 29%, with a favorable impact from foreign exchange rates of less than 1 percentage point. Transaction revenue increased primarily due to growth in corporate bond ratings revenue and bank loan ratings revenue driven by increased issuance volumes due to higher refinancing activity. An increase in structured finance revenue driven by increased collateralized loan obligations issuance also contributed to transaction revenue growth. Non-transaction revenue increased due to an increase in surveillance revenue, higher Ratings Evaluation Service revenue driven by scenario testing and credit rating profile evaluations and an increase in new entity credit ratings revenue. Transaction and non-transaction revenue also benefited from improved contract terms across product categories.
Current wording
Revenue increased 31%, with a favorable impact from foreign exchange rates of less than 1 percentage point. Transaction revenue increased primarily due to growth in corporate bond ratings revenue and bank loan ratings revenue driven by increased issuance volumes due to higher refinancing activity. An increase in structured finance revenue driven by increased CLOs issuance also contributed to transaction revenue growth. Non-transaction revenue increased due to an increase in surveillance revenue, an increase in new entity credit ratings revenue and higher Ratings Evaluation Service revenue driven by scenario testing and credit rating profile evaluations. Transaction and non-transaction revenue also benefited from improved contract terms across product categories.
Previous wording
Operating profit increased 42%. Excluding the impact of higher amortization of intangibles in 2024 of 1 percentage point, operating profit increased 43% due to revenue growth, partially offset by higher compensation costs driven by annual merit increases and additional headcount, increased incentives as result of financial performance, and an increase in travel and entertainment expenses. Foreign exchange rates had a favorable impact of 2 percentage points.
Current wording
Operating profit increased 46%. Excluding the impact of legal costs in 2024 of 2 percentage points, operating profit increased 48% due to revenue growth, partially offset by increased incentives as result of financial performance and higher compensation costs driven by annual merit increases and additional headcount. Foreign exchange rates had a favorable impact of 2 percentage points.
Previous wording
The following table provides billed issuance levels based on Ratings’ internal data feeds for the three months ended March 31:
Current wording
The following table provides billed issuance levels based on Ratings’ internal data feeds for the periods ended June 30:
Previous wording
Billed issuance was up as favorable market conditions enticed issuers to capitalize on tightening spreads. Investment-grade, high-yield and bank loan billed issuance were up due to an increase in refinancing activity. Structured Finance billed issuance increases were driven by new CLO issuances.
Current wording
Billed issuance was up as continued favorable market conditions drove issuers to capitalize on tightening borrowing spreads. Investment-grade, high-yield and bank loan billed issuance were up primarily due to an increase in refinancing activity. Structured Finance billed issuance increases were driven by new CLO issuance in the quarter.
Previous wording
Revenue increased 10% primarily due to continued demand for market data and market insights products driven by expanded product offerings to our existing customers under enterprise use contracts. An increase in sales usage-based royalties from the licensing of our proprietary market data and price assessments to commodity exchanges mainly due to increased trading volumes in Petroleum, Metals and LNG and an increase in conference revenue driven by CERAweek in 2024. All four business lines contributed to revenue growth in the first quarter of 2024 with the Price Assessments, Energy & Resources Data & Insights and Advisory & Transactional Services businesses being the most significant drivers, followed by the Upstream Data & Insights business. Foreign exchange rates had a favorable impact of less than 1 percentage point.
Current wording
Revenue increased 12% primarily due to continued demand for market data and market insights products driven by expanded product offerings to our existing customers under enterprise use contracts. An increase in sales usage-based royalties from the licensing of our proprietary market data to commodity exchanges due to increased trading volumes for Platts based contracts across all commodity sectors and higher consulting revenue also contributed to revenue growth. All four business lines contributed to revenue growth in the second quarter of 2024 with the Energy & Resources Data & Insights, Price Assessments and Advisory & Transactional Services businesses being the most significant drivers, followed by the Upstream Data & Insights business. Foreign exchange rates had an unfavorable impact of less than 1 percentage point.
Previous wording
Operating profit increased 21%. Excluding the impact of lower IHS Markit merger costs in 2024 of 6 percentage points, lower employee severance charges in 2024 of 1 percentage point and lower amortization of intangibles in 2024 of 1 percentage point, operating profit increased 13%. The increase was primarily due to revenue growth partially offset by higher compensation costs driven by annual merit increases and investment in strategic initiatives. Foreign exchange rates had a favorable impact of 1 percentage point.
Current wording
Operating profit increased 26%. Excluding the impact of lower employee severance charges in 2024 of 7 percentage points, lower IHS Markit merger costs in 2024 of 5 percentage points and lower amortization of intangibles in 2024 of 1 percentage point, partially offset by an asset write-off in 2024 of 1 percentage point, operating profit increased 14%. The increase was primarily due to revenue growth partially offset by higher compensation costs driven by annual merit increases and investment in strategic initiatives. Foreign exchange rates had a favorable impact of 1 percentage point.
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Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
Revenue increased 14% driven by increases at Ratings, Market Intelligence, Commodity Insights, Indices and Mobility, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023. The increase at Ratings was driven by growth in both transaction revenue and non-transaction revenue. Transaction revenue increased primarily due to growth in corporate bond ratings revenue and bank loan ratings revenue driven by increased issuance volumes due to higher refinancing activity. Non-transaction revenue increased due to an increase in surveillance revenue and an increase in new entity credit ratings revenue. The increase at Market Intelligence was primarily due to subscription revenue growth for work flow solutions at Enterprise Solutions, data feed products within Data and Advisory Solutions, Market Intelligence Desktop products, and RatingsXpress®, RatingsDirect® within Credit & Risk Solutions. Revenue growth at Commodity Insights was primarily due to continued demand for market data and market insights products. The increase at Indices was primarily due to higher asset-linked fees revenue, higher data subscription revenue and higher exchange-traded derivative revenue.The increase at Mobility was primarily due to new business growth within the Dealer business and strong underwriting volumes within the Financial business. Foreign exchange rates had an unfavorable impact of 1 percentage point.
Current report — wording carried from elsewhere
Revenue increased 14% as compared to the three months ended June 30, 2023. Subscription revenue increased in the three month period primarily due to growth in work flow solutions at Enterprise Solutions, data feed products within Data and Advisory Solutions, Market Intelligence Desktop products, and RatingsXpress®, RatingsDirect® within Credit & Risk Solutions at Market Intelligence, continued demand for Commodity Insights market data and market insights products and new business growth within the Dealer business and strong underwriting volumes within the Financial business at Mobility, partially offset by a decrease at Engineering Solutions due to its sale on May 2, 2023. Non-subscription / transaction revenue increased primarily due to growth in corporate bond ratings revenue and bank loan ratings revenue driven by increased issuance volumes due to higher refinancing activity. Non-transaction revenue increased due to an increase in surveillance revenue and an increase in new entity credit ratings revenue. Asset linked fees increased at Indices primarily due to higher levels of assets under management (“AUM”) for ETFs and mutual funds. The increase in sales-usage based royalties was driven by the licensing of our proprietary market data to commodity exchanges at Commodity Insights and higher exchange-traded derivative revenue at Indices. Recurring variable revenue at Market Intelligence increased due to increased volumes. See “Segment Review” below for further information.
Current report — wording carried from elsewhere
The unfavorable impact of foreign exchange rates reduced revenue by 1 percentage point. This impact refers to constant currency comparisons estimated by recalculating current year results of foreign operations using the average exchange rate from the prior year.
Current report — wording carried from elsewhere
6 Intersegment eliminations primarily relate to a royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings.
Current report — wording carried from elsewhere
Intersegment eliminations primarily relate to a royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings.
Current report — wording carried from elsewhere
Equity in Income on Unconsolidated Subsidiaries — The Company holds an investment in a 50/50 joint venture arrangement with shared control with CME Group that combines each company’s post-trade services into a joint venture, OSTTRA. The joint venture provides trade processing and risk mitigation operations and incorporates CME’s optimization businesses (Traiana, TriOptima, and Reset) and the Company’s MarkitSERV business. The combination is intended to increase operating efficiencies of both businesses to more effectively service clients with enhanced platforms and services for OTC markets across interest rate, FX, equity, and credit asset classes. Equity in Income on Unconsolidated Subsidiaries includes the OSTTRA joint venture. Equity in Income on Unconsolidated Subsidiaries was$13 million for the three months ended June 30, 2024 compared to$11 million for the three months ended June 30, 2023.
Current report — wording carried from elsewhere
Foreign exchange rates had a favorable impact on operating profit of 1 percentage point. This impact refers to constant currency comparisons and the remeasurement of monetary assets and liabilities. Constant currency impacts are estimated by re-calculating current year results of foreign operations using the average exchange rate from the prior year. Remeasurement impacts are based on the variance between current-year and prior-year foreign exchange rate fluctuations on assets and liabilities denominated in currencies other than the individual business’s functional currency.
Current report — wording carried from elsewhere
Corporate Unallocated Expense — Corporate Unallocated expense includes costs for corporate functions, select initiatives, unoccupied office space and Kensho, included in selling and general expenses. Corporate Unallocated expense decreased 58% compared to 2023. Excluding the impact of loss on dispositions, net in 2023 of 53 percentage points, higher IHS Markit merger costs in 2023 of 12 percentage points, lease impairments in 2023 of 7 percentage points, an asset impairment in 2023 of 7 percentage points and higher employee severance costs in 2023 of 4 percentage points, partially offset by higher acquisition-related costs in 2024 of 2 percentage points and higher disposition-related costs in 2024 of 1 percentage point, Corporate Unallocated expense increased 22% primarily due to higher compensation costs.
Current report — wording carried from elsewhere
Revenue increased 33%, with an unfavorable impact from foreign exchange rates of 1 percentage point. Transaction revenue increased primarily due to growth in corporate bond ratings revenue and bank loan ratings revenue driven by increased issuance volumes due to higher refinancing activity. An increase in structured finance revenue driven by increased collateralized loan obligations (“CLOs”) issuance also contributed to transaction revenue growth. Non-transaction revenue increased due to an increase in surveillance revenue and an increase in new entity credit ratings revenue. Transaction and non-transaction revenue also benefited from improved contract terms across product categories.
Current report — wording carried from elsewhere
Revenue increased 11% primarily due to continued demand for market data and market insights products driven by expanded product offerings to our existing customers under enterprise use contracts. An increase in sales usage-based royalties from the licensing of our proprietary market data to commodity exchanges due to increased trading volumes for Platts based contracts across all commodity sectors and higher consulting revenue also contributed to revenue growth. All four business lines contributed to revenue growth in the first six months of 2024 with the Price Assessments, Energy & Resources Data & Insights and Advisory & Transactional Services businesses being the most significant drivers, followed by the Upstream Data & Insights business. Foreign exchange rates had an unfavorable impact of less than 1 percentage point.
Current report — wording carried from elsewhere
Revenue increased 8% primarily due to growth within the Dealer and Financial businesses driven by continued new business growth within the Dealer business and strong underwriting volumes within the Financial business. These increases were partially offset by a decrease in non-subscription revenue in the Manufacturing business due to lower recall activity and marketing services. Foreign exchange rates had an unfavorable impact of 1 percentage point.
Current report — wording carried from elsewhere
Revenue at Indices increased 13% primarily due to an increase in asset linked fees revenue driven by higher levels of AUM for ETFs and mutual funds, higher exchange-traded derivative revenue driven by continued strength in trading volume and higher data subscription revenue. Ending AUM for ETFs increased 29% to $3.777 trillion compared to June 30, 2023 and average levels of AUM for ETFs increased 30% to $3.543 trillion compared to the six months ended June 30, 2023. Foreign exchange rates had an unfavorable impact of less than 1 percentage point.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
12024 includes IHS Markit merger costs of $5 million. 2023 includes IHS Markit merger costs of $13 million and employee severance costs of $2 million. 2024 and 2023 also include amortization of intangibles from acquisitions of $32 million and $33 million, respectively.
Previous report — wording carried elsewhere
1 2024 includes IHS Markit merger costs of $1 million and employee severance charges of $1 million. 2023 includes a gain on disposition of $4 million, employee severance charges of $1 million and IHS Markit merger costs of $1 million. 2024 and 2023 also include amortization of intangibles from acquisitions of $9 million.