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Fact Book 2009/2010
  • The McGraw-Hill Companies Reports 43.2%
    Increase in Fourth Quarter EPS (Jan 26) More
  • McGraw-Hill Increases Dividend; Will Resume
    Share Repurchase Program (Jan 20) More

Quarterly Revenue and Operating Profit by Segment
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2008 Quarterly Revenue and Operating Profit by Segment
2007 Quarterly Revenue and Operating Profit by Segment
2006 Quarterly Revenue and Operating Profit by Segment

Notes for Quarterly Revenue and Operating Profit by Segment:

Basic and diluted earnings per share are computed independently for each quarter and full year presented. The number of weighted average shares outstanding changes as common shares are issued pursuant to employee stock option plans, as shares are repurchased by the Corporation and as other activity occurs throughout the year. Accordingly, the sum of the quarterly earnings per share data may not agree with the calculated full year earnings per share. All per share data have been adjusted for all stock splits
2008: In the second quarter, net income includes a $23.7 million pre-tax restructuring charge ($14.8 million after-tax, or $0.05 per diluted share). The pre-tax restructuring charge by segment is as follows: McGraw-Hill Education of $8.5 million, and Financial Services of $15.2 million. In the third quarter, net income includes a $23.4 million pre-tax restructuring charge ($14.6 million after-tax, or $0.05 per diluted share). The pre-tax restructuring charge by segment is as follows: McGraw-Hill Education of $5.4 million, Financial Services of $4.1 million, and Information & Media of $13.9 million. In the fourth quarter, net income includes a $26.3 million pre-tax restructuring charge ($16.4 million after-tax, or $0.05 per diluted share). The pre-tax restructuring charge by segment is as follows: McGraw-Hill Education of $11.4 million, Financial Services of $6.6 million, Information & Media of $5.3 million, and Corporate of $3.0 million
  The Corporation adopted Statement of Financial Accounting Standards No. 160, “Noncontrolling interests in Consolidated Financial Statements, an amendment of ARB 51” (SFAS 160), in the first quarter of 2009. Please refer to 2008 Operating Profit/(Loss) and Operating Profit Margin by Segment, as adjusted for SFAS 160
2007: In the first quarter, operating profit at the Financial Services segment includes a $17.3 million pre-tax gain ($10.3 million after-tax, or $0.03 per diluted share) on the divestiture of the Corporation’s mutual fund data business. In the third quarter, operating profit at the McGraw-Hill Education Segment includes a $4.1 million gain on the divestiture of a product line. In the fourth quarter, net income includes a $43.7 million pre-tax restructuring charge ($27.3 million after-tax, or $0.08 per diluted share). The pre-tax restructuring charge by segment is as follows: McGraw-Hill Education of $16.3 million, Financial Services of $18.8 million, Information & Media of $6.7 million, and Corporate of $1.9 million. 2007 revenue and operating profit also include the impact of the Sweets transformation (see 2006 note below)
2006: In 2006, the Corporation adopted Financial Accounting Standards Board Statement No. 123(R), “Share Based Payment.” In the first, second, third and fourth quarters of 2006, respectively, the Corporation incurred stock-based compensation expense of $54.0 million ($33.9 million after-tax charge, or $0.09 per diluted share), $23.0 million ($14.4 million after-tax charge, or $0.04 per diluted share), $29.2 million ($18.3 million after-tax charge, or $0.05 per diluted share), and $30.0 million ($18.8 million after-tax charge, or $0.05 per diluted share). The first quarter expense includes a one-time charge of $23.8 million ($14.9 million after-tax, or $0.04 per diluted share) for the elimination of the Corporation’s restoration stock option program. In the third quarter, net income includes a $15.4 million pre-tax restructuring charge ($9.7 million after-tax charge, or $0.03 per diluted share). The pre-tax restructuring charge by segment is as follows: McGraw-Hill Education of $5.6 million; Information & Media of $5.7 million; and Corporate of $4.1 million. In the fourth quarter, net income includes a $16.1 million pre-tax restructuring charge ($10.1 million after-tax charge, or $0.03 per diluted share). The pre-tax restructuring charge by segment is as follows: McGraw-Hill Education of $10.4 million; Information & Media of $3.0 million; and Corporate of $2.7 million. For the Information & Media segment, fourth quarter results also reflect deferrals of revenue of $23.8 million and operating profit of $21.1 million ($13.3 million after-tax charge, or $0.04 per diluted share) due to a change in revenue recognition related to the transformation of the Sweets building products database from a primarily print catalog offering to an integrated online service, which was recognized ratably over 2007
2005: In the third quarter, operating profit at the Financial Services segment includes a $6.8 million pre-tax gain ($4.2 million after-tax, or $0.01 per diluted share) on the sale of the Corporate Value Consulting business. In the fourth quarter, operating profit at the Information & Media segment includes a $5.5 million loss ($3.3 million after-tax) on the sale of the Healthcare Information Group. In the fourth quarter, net income includes the impact of a $23.2 million pre-tax charge ($14.6 million after-tax, or $0.04 per diluted share) for restructuring. The pre-tax restructuring charge by segment is as follows: McGraw-Hill Education of $9.0 million; Financial Services of $1.2 million; Information & Media of $10.2 million; and Corporate of $2.8 million. Net income in the fourth quarter also includes a $10.0 million ($0.03 per diluted share) increase in income taxes on the repatriation of funds