Financial Review: 73
Free Cash Flow | Capital Investments

Capital Expenditures

(dollars in millions)

'18
'19
'20
'21
'22
Market Intelligence
$30
$44
$28
$12
$43
Ratings
$42
$41
$33
$18
$23
Commodity Insights
$9
$13
$7
$2
$4
Mobility
–
–
–
–
$6
Indices
$3
$5
$4
$2
$2
Engineering Solutions
–
–
–
–
$4
Corporate
$29
$12
$4
$1
$7
Total
$113
$115
$76
$35
$89
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Depreciation

(dollars in millions)

'18
'19
'20
'21
'21
Market Intelligence
$26
$24
$25
$26
$35
Ratings
$30
$32
$33
$36
$39
Commodity Insights
$9
$9
$8
$4
$4
Mobility
–
–
–
–
$7
Indices
$3
$2
$3
$4
$8
Engineering Solutions
–
–
–
–
–
Corporate
$16
$14
$13
$12
$17
Total
$84
$82
$83
$82
$108

Note:  Depreciation includes amortization of technology projects

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Amortization of Intangibles

(dollars in millions)

'18
'19
'20
'21
'22
Market Intelligence
$73
$75
$76
$65
$474
Ratings
$2
$2
$7
$10
$7
Commodity Insights
$18
$12
$9
$8
$111
Mobility
–
–
–
–
$241
Indices
$6
$6
$6
$6
$31
Engineering Solutions
–
–
–
–
$35
Corporate
$23
$28
$26
$7
$4
Total
$122
$122
$123
$96
$905
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Free Cash Flow (1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)

Reconciliation of Non-GAAP Financial Information

Years ended December 31
(dollars in millions)

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Cash provided by operating activities

$730

$782

$1,428

$356

$1,560

$2,016

$2,064

$2,776

$3,567

$3,598

$2,603

Capital expenditures

(96)

(117)

(92)

(139)

(115)

(123)

(113)

(115)

(76)

(35)

(89)

Distributions to noncontrolling interest holders

(24)

(75)

(84)

(104)

(116)

(111)

(154)

(143)

(194)

(227)

(270)

Free cash flow

$610

$590

$1,252

$113

$1,329

$1,782

$1,797

$2,518

$3,297

$3,336

$2,244

Tax on gain from sale of J.D. Power

–

–

–

–

200

–

–

–

–

–

–

Tax on gain from sale of SPSE and CMA

–

–

–

–

–

67

–

–

–

–

–

Tax on gain from sale of SPIAS and RigData

–

–

–

–

–

–

–

13

–

–

–

Payment of legal and regulatory settlements

–

–

35

1,624

150

4

180

1

–

–

–

Legal settlement insurance recoveries

–

–

–

(101)

(77)

–

–

–

–

–

–

Settlement from prior-year tax audits

–

–

–

–

–

–

73

51

–

–

–

Tax benefit from legal settlements

–

–

–

(250)

(24)

(2)

(44)

–

–

–

–

IHS Markit merger costs

–

–

–

–

–

–

–

–

–

178

727

Tax on gain from sale of divestitures

–

–

–

–

–

–

–

–

–

–

704

S&P Global Foundation grant

–

–

–

–

–

–

–

–

–

–

200

Debt financing derivative

–

–

–

–

–

–

–

–

–

–

85

IHS Markit operating cash outflow prior to acquisition

–

–

–

–

–

–

–

–

–

–

(15)

Russia suspension costs

–

–

–

–

–

–

–

–

–

–

10

Free cash flow excluding above items (2012-2021) /Non-GAAP pro forma adjusted free cash flow excluding above items (2022)

$610

$590

$1,287

$1,386

$1,578

$1,851

$2,006

$2,583

$3,297

$3,514

$3,955

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Cash provided by operating activities

$730

$782

$1,428

$356

$1,560

$2,016

$2,064

$2,776

$3,567

$3,598

$2,603

Capital expenditures

(96)

(117)

(92)

(139)

(115)

(123)

(113)

(115)

(76)

(35)

(89)

Distributions to noncontrolling interest holders

(24)

(75)

(84)

(104)

(116)

(111)

(154)

(143)

(194)

(227)

(270)

Free cash flow

$610

$590

$1,252

$113

$1,329

$1,782

$1,797

$2,518

$3,297

$3,336

$2,244

Tax on gain from sale of J.D. Power

–

–

–

–

200

–

–

–

–

–

–

Tax on gain from sale of SPSE and CMA

–

–

–

–

–

67

–

–

–

–

–

Tax on gain from sale of SPIAS and RigData

–

–

–

–

–

–

–

13

–

–

–

Payment of legal and regulatory settlements

–

–

35

1,624

150

4

180

1

–

–

–

Legal settlement insurance recoveries

–

–

–

(101)

(77)

–

–

–

–

–

–

Settlement from prior-year tax audits

–

–

–

–

–

–

73

51

–

–

–

Tax benefit from legal settlements

–

–

–

(250)

(24)

(2)

(44)

–

–

–

–

IHS Markit merger costs

–

–

–

–

–

–

–

–

–

178

727

Tax on gain from sale of divestitures

–

–

–

–

–

–

–

–

–

–

704

S&P Global Foundation grant

–

–

–

–

–

–

–

–

–

–

200

Debt financing derivative

–

–

–

–

–

–

–

–

–

–

85

IHS Markit operating cash outflow prior to acquisition

–

–

–

–

–

–

–

–

–

–

(15)

Russia suspension costs

–

–

–

–

–

–

–

–

–

–

10

Free cash flow excluding above items (2012-2021) /Non-GAAP pro forma adjusted free cash flow excluding above items (2022)

$610

$590

$1,287

$1,386

$1,578

$1,851

$2,006

$2,583

$3,297

$3,514

$3,955

Download Excel

 

Non-GAAP pro forma adjusted free cash flow excluding certain items was approximately $4 billion in 2022

Notes:
(1)

The free cash flow presentation for 2012-2014 reflects McGraw Hill Construction as a discontinued operation and 2012-2013 reflects McGraw-Hill Education as a discontinued operation. Prior years were not restated

(2)

2012 free cash flow was impacted by costs to enable the separation of McGraw-Hill Education and a pension contribution in Q4 2012

(3)

2013 free cash flow was impacted by a tax payment in Q1 2013 that was extended from Q4 2012, a legal settlement, and a payment related to an early lease termination

(4)

2014 free cash flow was impacted by a tax refund received in Q1 2014 for an overpayment in 2013 and improved collections impacting accounts receivable

(5)

2015 free cash flow was impacted by after-tax legal and regulatory settlements and insurance recoveries

(6)

2016 free cash flow was impacted by after-tax legal settlements, insurance recoveries, and tax on gain from sale of J.D. Power

(7)

2017 free cash flow was impacted by after-tax legal settlements and tax on gain from sale of SPSE and CMA

(8)

2018 free cash flow was impacted by after-tax legal settlements and settlement of prior-year tax audits

(9)

2019 free cash flow was impacted by legal settlements, settlement of prior-year tax audits, and tax on gain from sale of SPIAS and RigData

(10)

2021 free cash flow was impacted by IHS Markit merger costs

(11)

2022 free cash flow was impacted by IHS Markit merger costs, tax on gain from sale of divestitures, S&P Global Foundation grant, debt financing derivative, IHS Markit operating cash outflow prior to acquisition, and Russia suspension costs

(12)

2014-2022 free cash flow presentation reflects the adoption of Accounting Standards Update (ASU) 2016-09. Prior years were not restated

Details may not sum to total due to rounding