Exhibit (12)
The McGraw Hill Companies, Inc.
Computation of Ratio of Earnings to Fixed Charges
(in millions)
|
| | | | | | | | | | | | | | | | | | | | |
| | Years ended December 31, | |
| | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | |
| Earnings: | | | | | | | | | | |
| Income from continuing operations before taxes on income | $ | 1,130 |
| 1 | $ | 1,000 |
| 2 | $ | 943 |
| 3 | $ | 876 |
| 4 | $ | 932 |
| 5 |
Fixed charges 6 | 130 |
| | 134 |
| | 137 |
| | 132 |
| | 136 |
| |
| Total earnings | $ | 1,260 |
| | $ | 1,134 |
| | $ | 1,080 |
| | $ | 1,008 |
| | $ | 1,068 |
| |
Fixed charges: 6 | | | | | | | | | | |
| Interest expense | $ | 81 |
| | $ | 86 |
| | $ | 89 |
| | $ | 89 |
| | $ | 92 |
| |
| Portion of rental payments deemed to be interest | 48 |
| | 47 |
| | 47 |
| | 42 |
| | 43 |
| |
| Amortization of debt issuance costs and discount | 1 |
| | 1 |
| | 1 |
| | 1 |
| | 1 |
| |
| Total fixed charges | $ | 130 |
| | $ | 134 |
| | $ | 137 |
| | $ | 132 |
| | $ | 136 |
| |
| Ratio of earnings to fixed charges: | 9.7 |
| x | 8.5 |
| x | 7.9 |
| x | 7.6 |
| x | 7.9 |
| x |
| |
1 | Includes the impact of the following items: $135 million charge for Growth and Value Plan costs, a $68 million restructuring charge, transaction costs of $15 million for our S&P Dow Jones Indices LLC joint venture, an $8 million charge related to a reduction in our lease commitments, partially offset by a vacation accrual reversal of $52 million. |
| |
2 | Includes the impact of the following items: a $32 million restructuring charge and a $10 million charge for Growth and Value Plan costs. |
| |
3 | Includes the impact of the following items: a $16 million charge for subleasing excess space in our New York facilities, an $11 million restructuring charge and a $7 million gain on the sale of certain equity interests at Standard & Poor's Ratings. |
| |
4 | Includes the impact of the following items: a $14 million loss on the sale of Vista Research, Inc., an $11 million gain on the sale of BusinessWeek and a $4 million net restructuring charge. |
5 Includes a $48 million restructuring charge.
6 "Fixed charges" consist of (1) interest on debt and interest related to the sale leaseback of Rock-McGraw, Inc. (see Note 13 - Commitments and Contingencies to the consolidated financial statements under Item 8, Consolidated Financial Statements and Supplementary Data, in this Form 10-K), (2) the portion of our rental expense deemed representative of the interest factor in rental expense, and (3) amortization of debt issue costs and discount to any indebtedness.
