S&P Global (SPGI) 10-K 24 Feb 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
Share data in Millions	12 Months Ended Dec. 31, 2009	Feb. 12, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	MCGRAW-HILL COMPANIES INC
Entity Central Index Key	0000064040
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$9,476,022,642
Entity Common Stock, Shares Outstanding		315.7

Consolidated Statement of Incom

Consolidated Statement of Income (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenue
Product	$2,362,235	$2,582,553	$2,604,432
Service	3,589,547	3,772,502	4,167,849
Total Revenue	5,951,782	6,355,055	6,772,281
Operating - related
Product	1,132,302	1,181,322	1,129,519
Service	1,253,705	1,337,108	1,398,081
Operating - related Expenses	2,386,007	2,518,430	2,527,600
Selling and general (Note 14)
Product	897,946	998,989	1,014,070
Service	1,243,305	1,284,606	1,410,015
Selling and General Expenses	2,141,251	2,283,595	2,424,085
Depreciation	112,764	119,849	112,586
Amortization of intangibles	52,720	58,497	48,403
Total Expenses	4,692,742	4,980,371	5,112,674
Other (loss)/income - net (Note 2 )	(3,304)	0	17,305
Income from Operations	1,255,736	1,374,684	1,676,912
Interest expense - net	76,867	75,624	40,581
Income before Taxes on Income	1,178,869	1,299,060	1,636,331
Provision for taxes on income	429,108	479,695	608,973
Net income	749,761	819,365	1,027,358
Less: net income attributable to noncontrolling interests	(19,259)	(19,874)	(13,799)
Net income attributable to the McGraw-Hill Companies, Inc.	$730,502	$799,491	$1,013,559
Earnings per Common Share
Basic	2.34	2.53	3.01
Diluted	2.33	2.51	2.94
Average Number of Common Shares Outstanding
Basic	312,223	315,559	336,210
Diluted	313,296	318,687	344,785
Dividend Declared per Common Share	0.9	0.88	0.82

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Current Assets
Cash and equivalents	$1,209,927	$471,671
Short-term investments	24,602	0
Accounts receivable (net of allowances for doubtful accounts and sales returns: 2009 - $276,110; 2008 - $268,685)	969,662	1,060,858
Inventories:
Finished goods	290,415	349,203
Work-in-process	3,858	4,359
Paper and other materials	6,956	16,117
Total inventories	301,229	369,679
Deferred income taxes	278,414	285,364
Prepaid and other current assets	152,562	115,151
Total current assets	2,936,396	2,302,723
Prepublication Costs (net of accumulated amortization: 2009 - $1,005,114; 2008 - $943,022	460,843	552,534
Investments and Other Assets
Assets for pension benefits	78,522	52,994
Deferred income taxes	24,072	79,559
Other	166,379	176,900
Total investments and other assets	268,973	309,453
Property and Equipment - At Cost
Land	14,281	13,841
Buildings and leasehold improvements	598,472	575,850
Equipment and furniture	957,697	984,260
Total property and equipment	1,570,450	1,573,951
Less - accumulated depreciation	(990,654)	(952,889)
Net property and equipment	579,796	621,062
Goodwill and Other Intangible Assets
Goodwill - net	1,690,507	1,703,240
Indefinite-lived intangible assets	202,065	202,065
Copyrights - net	146,239	162,307
Other intangible assets - net	190,431	226,758
Net goodwill and other intangible assets	2,229,242	2,294,370
Total Assets	6,475,250	6,080,142
Current Liabilities
Notes payable	22	70,022
Accounts payable	301,828	337,459
Accrued royalties	114,157	111,471
Accrued compensation and contributions to retirement plans	450,673	420,515
Income taxes currently payable	17,086	17,209
Unearned revenue	1,115,357	1,099,167
Deferred gain on sale leaseback	11,236	10,726
Other current liabilities	441,595	464,134
Total current liabilities	2,451,954	2,530,703
Other Liabilities
Long-term debt	1,197,791	1,197,611
Deferred income taxes	9,965	3,406
Liability for pension and other postretirement benefits	511,683	606,331
Deferred gain on sale leaseback	147,838	159,115
Other non-current liabilities	226,842	230,105
Total other liabilities	2,094,119	2,196,568
Total liabilities	4,546,073	4,727,271
Equity
Common stock, $1 par value: authorized - 600,000,000 shares; issued 411,709,328 shares in 2009 and 2008)	411,709	411,709
Additional paid-in capital	5,125	55,150
Retained income	6,522,613	6,070,793
Accumulated other comprehensive loss	(343,017)	(444,022)
Less - Common stock in treasury - at cost (96,368,589 shares in 2009 and 97,303,901 shares in 2008)	(4,749,143)	(4,811,294)
Total equity - controlling interests	1,847,287	1,282,336
Total equity - noncontrolling interests	81,890	70,535
Total equity	1,929,177	1,352,871
Total Liabilities and Equity	$6,475,250	$6,080,142

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
In Thousands, except Share data	Dec. 31, 2009	Dec. 31, 2008
Current Assets
Allowance for doubtful accounts and sales returns	$276,110	$268,685
Accumulated amortization, prepublication costs	$1,005,114	$943,022
Equity
Common stock, par value	1	1
Common stock, shares authorized	600,000,000	600,000,000
Common stock, shares issued	411,709,328	411,709,328
Common stock in treasury at cost, shares	96,368,589	97,303,901

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows from Operating Activities
Net income	$749,761	$819,365	$1,027,358
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	112,764	119,849	112,586
Amortization of intangibles	52,720	58,497	48,403
Amortization of prepublication costs	270,469	270,442	240,182
Provision for losses on accounts receivable	31,635	27,098	14,991
Net change in deferred income taxes	5,688	(17)	(46,615)
Stock-based compensation	22,268	(1,934)	124,692
Loss/(gain) on disposition of businesses, net	3,304	0	(21,432)
Other	2,377	(16,029)	(1,160)
Change in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	50,313	95,070	71,448
Inventories	67,645	(26,482)	(11,601)
Prepaid and other current assets	(11,807)	1,702	(4,717)
Accounts payable and accrued expenses	79	(242,327)	34,840
Unearned revenue	25,619	25,145	86,877
Other current liabilities	(14,453)	26,317	71,636
Net change in prepaid/accrued income taxes	(17,892)	7,354	(36,940)
Net change in other assets and liabilities	(29,711)	4,703	6,403
Cash provided by operating activities	1,320,779	1,168,753	1,716,951
Cash Flows from Investing Activities
Investment in prepublication costs	(176,996)	(254,106)	(298,984)
Purchase of property and equipment	(68,526)	(105,978)	(229,609)
Acquisition of businesses and equity interests	0	(48,261)	(86,707)
Disposition of businesses and property and equipment	15,196	440	62,261
Additions to technology projects	(23,764)	(25,353)	(16,654)
Change in short-term investments	(24,602)	0	0
Cash used for investing activities	(278,692)	(433,258)	(569,693)
Cash Flows from Financing Activities
Dividends paid to shareholders	(281,553)	(280,455)	(277,746)
Proceeds from issuance of senior notes, net	0	0	1,188,803
Payments/additions on short-term debt, net	(70,000)	70,000	(2,345)
Repurchase of treasury shares	0	(447,233)	(2,212,655)
Exercise of stock options	25,174	41,420	146,867
Excess tax benefit from share-based payments	329	3,981	35,849
Cash used for financing activities	(326,050)	(612,287)	(1,121,227)
Effect of exchange rate changes on cash	22,219	(47,633)	16,567
Net change in cash and equivalents	738,256	75,575	42,598
Cash and equivalents at beginning of year	471,671	396,096	353,498
Cash and equivalents at end of year	$1,209,927	$471,671	$396,096

Consolidated Statement of Share

Consolidated Statement of Shareholders Equity (USD $)
In Thousands	Common stock $1 par	Additional paid-in capital	Retained income	Accumulated other comprehensive loss	Less - common stock in treasury at cost	Noncontrolling interests	Total
Balance at Dec. 31, 2006	$411,709	$114,596	$4,821,118	($115,212)	$2,552,593	$50,425	$2,730,043
Net income	0	0	1,013,559		0	13,799	1,027,358
Other comprehensive income/(loss):
Foreign currency translation adjustment	0	0	0	28,618	0	5,915	34,533
Unrealized gain (loss) on investment, net of tax	0	0	0	3,747	0	0	3,747
Pension and other postretirement benefit plans, net of tax	0	0	0	70,224	0	0	70,224
Adjustment to initially apply FIN 48	0	0	(5,174)	0	0	0	(5,174)
Dividends	0	0	(277,746)	0	0	(3,747)	(281,493)
Share repurchases	0	0	0	0	2,212,655	0	(2,212,655)
Employee stock plans, net of tax benefit	0	54,683	0	0	(251,701)	0	306,384
Other	0	(92)	0	0	(167)	4,720	4,795
Balance at Dec. 31, 2007	411,709	169,187	5,551,757	(12,623)	4,513,380	71,112	1,677,762
Net income	0	0	799,491			19,874	819,365
Other comprehensive income/(loss):
Foreign currency translation adjustment	0	0	0	(96,683)	0	(11,158)	(107,841)
Unrealized gain (loss) on investment, net of tax	0	0	0	(3,443)	0	0	(3,443)
Pension and other postretirement benefit plans, net of tax	0	0	0	(331,273)	0	65	(331,208)
Dividends	0	0	(280,455)	0	0	(9,297)	(289,752)
Share repurchases	0	0	0	0	447,233	0	(447,233)
Employee stock plans, net of tax benefit	0	(114,037)	0	0	(149,319)	0	35,282
Other	0	0	0	0	0	(61)	(61)
Balance at Dec. 31, 2008	411,709	55,150	6,070,793	(444,022)	4,811,294	70,535	1,352,871
Net income	0	0	730,502		0	19,259	749,761
Other comprehensive income/(loss):
Foreign currency translation adjustment	0	0	0	43,023	0	3,596	46,619
Unrealized gain (loss) on investment, net of tax	0	0	0	1,655	0	0	1,655
Pension and other postretirement benefit plans, net of tax	0	0	0	56,327	0	(96)	56,231
Dividends	0	0	(278,682)	0	0	(9,162)	(287,844)
Employee stock plans, net of tax benefit	0	(50,025)	0	0	(62,151)	0	12,126
Other	0	0	0	0	0	(2,242)	(2,242)
Balance at Dec. 31, 2009	$411,709	$5,125	$6,522,613	($343,017)	$4,749,143	$81,890	$1,929,177

Accounting Policies

Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Accounting Policies [Abstract]
Accounting Policies	1. ACCOUNTING POLICIES NATURE OF OPERATIONS. We are a leading global information services provider serving the financial services, education and business information markets with information products and services. Other markets include energy; automotive; construction; aerospace and defense; broadcasting; and marketing information services. The operations consist of three business segments: McGraw-Hill Education, Financial Services and Information Media. The McGraw-Hill Education segment is one of the premier global educational publishers. This segment consists of two operating groups: the School Education Group (SEG), serving the elementary and high school (el-hi) markets, and the Higher Education, Professional and International (HPI) Group, serving the college, professional, international and adult education markets. The Financial Services segment operates under the Standard Poors brand. This segment provides services to investors, corporations, governments, financial institutions, investment managers and advisors globally. The segment and the markets it serves are impacted by interest rates, the state of global economies, credit quality and investor confidence. The segment consists of two operating groups: Credit Market Services and Investment Services. Credit Market Services provides independent global credit ratings, credit risk evaluations, and ratings-related information and products. Investment Services provides comprehensive value added financial data, information, indices and research. The Information Media segment includes business, professional and broadcast media, offering information, insight and analysis; and consists of two operating groups, the Business-to-Business Group (including such brands as J.D. Power and Associates, McGraw-Hill Construction, Platts and Aviation Week) and the Broadcasting Group, which operates nine television stations, four ABC affiliated and five Azteca America affiliated stations. PRINCIPLES OF CONSOLIDATION. The consolidated financial statements include the accounts of all subsidiaries and our share of earnings or losses of joint ventures and affiliated companies under the equity method of accounting. All significant intercompany accounts and transactions have been eliminated. USE OF ESTIMATES. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. CASH AND CASH EQUIVALENTS. Cash and cash equivalents include ordinary bank deposits and highly liquid investments with original maturities of three months or less that consist primarily of money market funds with unrestricted daily liquidity and fixed term time deposits. Such investments and bank deposits are stated at cost, which approximates market value and were $1.2billion and $471.7million at December31, 2009 and 2008, respectively. These investments are not subject to significant market risk. SHORT-TERM INVESTMENTS. Short-term investments are securities with original maturities greater th

Acquisitions and Dispositions

Acquisitions and Dispositions
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions and Dispositions [Abstract]
Acquisitions and Dispositions	2. ACQUISITIONS AND DISPOSITIONS ACQUISITIONS. In 2009, we did not make any acquisitions. In 2008, we paid $48.3million for the acquisition of several businesses and for purchase price adjustments from our prior years acquisitions. In 2007, we paid $86.7million for the acquisition of several businesses and for purchase price adjustments from our prior years acquisitions. All of these acquisitions were accounted for under the purchase method. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill and other intangibles. Intangible assets recorded for all current transactions are amortized using the straight-line method for periods not exceeding 18years. NON-CASH INVESTING ACTIVITIES. Liabilities assumed in conjunction with the acquisition of businesses are as follows: (in millions) 2009 2008 2007 Fair value of assets acquired $ $ 50.8 $ 102.5 Cash paid (net of cash acquired) 48.3 86.7 Liabilities assumed $ $ 2.5 $ 15.8 All of these acquisitions are immaterial to us individually and in the aggregate. DISPOSITIONS. In May2009, we sold our Vista Research, Inc. business which was part of our Financial Services segment. This business was selected for divestiture as it no longer fit within our strategic plans. This divestiture enables the Financial Services segment to focus on its core business of providing independent research, ratings, data indices and portfolio services. We recognized a pre-tax loss of $13.8million ($8.8million after-tax or $0.03 per diluted share), recorded as other (loss)/income-net. In December2009, we sold BusinessWeek which was part of our Information Media segment. This business was selected for divestiture as it no longer fit within our strategic plans. We recognized a pre-tax gain of $10.5million ($6.7million after tax or $0.02 per diluted share). In 2008, we did not make any dispositions. In 2007, we sold our mutual fund data business which was part of the Financial Services segment. This business was selected for divestiture as it no longer fit within our strategic plans. The divestiture of the mutual fund data business enables the Financial Services segment to focus on its core business of providing independent research, ratings, data indices and portfolios services. We recognized a pre-tax gain of $17.3million ($10.3million after-tax, or $0.03 per diluted share). In 2007, all dispositions including the sale of the mutual fund data business were immaterial to us individually and in the aggregate.

Debt and Other Commitments

Debt and Other Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Debt and Other Commitments [Abstract]
Debt and Other Commitments	3. DEBT AND OTHER COMMITMENTS A summary of short-term and long-term debt outstanding as of December31, is as follows: (in millions) 2009 2008 5.375% Senior Notes, due 2012(a) $ 399.8 $ 399.7 5.900% Senior Notes, due 2017(b) 399.3 399.1 6.550% Senior Notes, due 2037(c) 398.5 398.5 Commercial paper 0.0 70.0 Notes payable 0.2 0.3 Total debt 1,197.8 1,267.6 Less: Short-term debt including current maturities 0.0 70.0 Long-term debt $ 1,197.8 $ 1,197.6 SENIOR NOTES (a)As of December31, 2009, we had outstanding $399.8million of 2012 senior notes consisting of $400million principal and an unamortized debt discount of $0.2million. The 2012 senior notes, when issued in November2007, were priced at 99.911% with a yield of 5.399%. Interest payments are due semiannually on February15 and August15. (b)As of December31, 2009, the Company had outstanding $399.3million of 2017 senior notes consisting of $400million principal and an unamortized debt discount of $0.7million. The 2017 senior notes, when issued in November2007, were priced at 99.76% with a yield of 5.933%. Interest payments are due semiannually on April15 and October15. (c)As of December31, 2009, the Company had outstanding $398.5million of 2037 senior notes consisting of $400million principal and an unamortized debt discount of $1.5million. The 2037 senior notes, when issued in November2007, were priced at 99.605% with a yield of 6.580%. Interest payments are due semiannually on May15 and November15. AVAILABLE FINANCING. The size of our total commercial paper program remains $1.2billion and is supported by the revolving credit agreement described below. There were no commercial paper borrowings outstanding at December31, 2009. Commercial paper borrowings outstanding at December 31, 2008 totaled $70.0million, with an average interest rate and average term of 1.4% and 29days. On September12, 2008 we closed on two new revolving credit facility agreements totaling $1.15 billion collectively (the 2008 credit facility) to replace the existing $1.2billion five-year credit facility that expired on July20, 2009. The 2008 credit facility was with a syndicate of 14 banks led by JP Morgan Chase and Bank of America. The previous credit facility was cancelled once the 2008 facility became effective. On August14, 2009 we entered into a new $433.3 million 364-day revolving credit facility (the new 364-day facility) which replaces our existing $383.3million 364-day credit agreement entered into on September12, 2008. The previous credit facility was cancelled after the new 364-day facility became effective. The combined credit facility now totals $1.2billion and consists of two separate tranches, a $433.3million 364-day facility that will terminate on August13, 2010 and a $766.7million 3-year facility that will terminate on September12, 2011. We pay a commitment fee of 12.537.5 basis points for the new 364-day facility and a commitment fee of 1020 basis points for the 3-year facility, depending upon our credit rating, whether or not amounts have been

Segment Reporting and Geographi

Segment Reporting and Geographic Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Reporting and Geographic Information [Abstract]
Segment Reporting and Geographic Information	4. SEGMENT REPORTING AND GEOGRAPHIC INFORMATION We have three reportable segments: McGraw-Hill Education, Financial Services and Information Media. The McGraw-Hill Education segment is one of the premier global educational publishers serving the elementary and high school (el-hi), college and university, professional, international and adult education markets. During 2009, 2008 and 2007, the segment incurred pre-tax restructuring charges that reduced operating profit by $14.0million, $25.3million and $16.3 million, respectively. Additionally, in 2009 we revised our estimate for previously recorded restructuring charges and reversed $2.4million for the segment (see Note 14). Included in 2007 operating profit is a $4.1million gain resulting from a divestiture of a product line in July 2007. The Financial Services segment operates under the Standard Poors brand. This segment provides services to investors, corporations, governments, financial institutions, investment managers and advisors globally. The segment and the markets it serves are impacted by interest rates, the state of global economies, credit quality and investor confidence. During 2009, 2008 and 2007, the segment incurred pre-tax restructuring charges that reduced operating profit by $4.5million, $25.9 million and $18.8million, respectively. Additionally, in 2009 we revised our estimate for previously recorded restructuring charges and reversed $4.9million for the segment (see Note 14). Included in 2009 operating profit is a pre-tax loss of $13.8million resulting from the sale of our Vista Research, Inc. business. Included in 2007 operating profit is a pre-tax gain of $17.3million from the sale of our mutual fund data business. The Information Media segment includes business, professional and broadcast media, offering information, insight and analysis. During 2009, 2008 and 2007, the segment incurred pre-tax restructuring charges that reduced operating profit by $5.8million, $19.2million and $6.7 million, respectively. Additionally, in 2009 we revised our estimate for previously recorded restructuring charges and reversed $1.8million for the segment (see Note 14). Included in 2009 operating profit is a pre-tax gain of $10.5million related to the divestiture of BusinessWeek. The results of 2009 reflect a deferral of $11.4million of revenue and $7.1million of operating profit related to the transitioning of a number of syndicated studies to an online service platform, which will be recognized over the service period. In 2008, as a result of a reduction in the change in the projected payout of restricted performance stock awards and reductions in other incentive compensation projections, we recorded a decrease in incentive compensation as follows: McGraw-Hill Education, $29.3million; Financial Services, $166.0 million; Information Media, $22.6million and Corporate, $55.8million. In 2009, we further reduced the projected payout of our restricted performance stock awards, although to a much lesser extent than 2008. Information as to the operations of our three segments is set forth below based on the nature of the products and services offered. The Executive Commi

Taxes on Income

Taxes on Income
	12 Months Ended Dec. 31, 2009 USD / shares
Taxes on Income [Abstract]
Taxes on Income	5. TAXES ON INCOME Income before taxes on income resulted from domestic and foreign operations as follows: (in millions) 2009 2008 2007 Domestic operations $ 878.5 $ 981.0 $ 1,349.3 Foreign operations 300.4 318.1 287.0 Total income before taxes $ 1,178.9 $ 1,299.1 $ 1,636.3 The provision/(benefit) for taxes on income consists of the following: (in millions) 2009 2008 2007 Federal: Current $ 281.0 $ 319.6 $ 455.7 Deferred (17.5 ) 1.8 (59.7 ) Total federal 263.5 321.4 396.0 Foreign: Current 101.6 77.8 96.8 Deferred 6.6 3.8 8.1 Total foreign 108.2 81.6 104.9 State and local: Current 46.0 78.7 122.3 Deferred 11.4 (2.0 ) (14.2 ) Total state and local 57.4 76.7 108.1 Total provision for taxes $ 429.1 $ 479.7 $ 609.0 A reconciliation of the U.S. statutory tax rate to the Companys effective tax rate for financial reporting purposes follows: 2009 2008 2007 U.S. statutory rate 35.0 % 35.0 % 35.0 % Effect of state and local income taxes 3.9 4.2 4.4 Other net (2.5 ) (2.3 ) (2.2 ) Effective tax rate 36.4 % 36.9 % 37.2 % The effective tax rates include the impact of a new accounting rule adopted on January1, 2009 for noncontrolling interests in subsidiaries (see Note 1 to our consolidated financial statements), which resulted in a change to the calculated effective tax rates for 2008 and 2007. The principal temporary differences between the accounting for income and expenses for financial reporting and income tax purposes as of December31, are as follows: (in millions) 2009 2008 Deferred tax assets: Reserves and accruals $ 329.4 $ 349.6 Postretirement benefits 306.9 343.6 Deferred gain 63.5 68.7 Unearned revenue 4.2 Other net 65.1 78.9 Total deferred tax assets 769.1 840.8 Deferred tax liabilities: Fixed assets and intangible assets (367.4 ) (380.7 ) Prepaid pension and other expenses (90.2 ) (76.5 ) Unearned revenue (4.1 ) Total deferred tax liabilities (457.6 ) (461.3 ) Net deferred income tax asset before valuation allowance 311.5 379.5 Valuation allowance (19.0 ) (18.0 ) Net deferred income tax asset $ 292.5 $ 361.5 Reported as: Current deferred tax assets $ 278.4 $ 285.4 Non-current deferred tax assets 24.1 79.5 Non-current deferred tax liabilities (10.0 ) (3.4 ) Net deferred income tax asset $ 292.5 $ 361.5 We record valuation allowances against deferred income tax assets when we determine that it is more likely than not based upon all the available evidence

Rental Expense and Lease Obliga

Rental Expense and Lease Obligations
	12 Months Ended Dec. 31, 2009 USD / shares
Rental Expense and Lease Obligations [Abstract]
Rental Expense and Lease Obligations	6. RENTAL EXPENSE AND LEASE OBLIGATIONS Rental expense for property and equipment under all operating lease agreements is as follows: (in millions) 2009 2008 2007 Gross rental expense $ 236.8 $ 241.0 $ 228.2 Less: sublease revenue (2.1 ) (2.4 ) (5.5 ) Less: Rock-McGraw rent credit (18.4 ) (18.4 ) (17.6 ) Net rental expense $ 216.3 $ 220.2 $ 205.1 We are committed under lease arrangements covering property, computer systems and office equipment. Leasehold improvements are amortized straight-line over the shorter of their economic lives or their lease term. Certain lease arrangements contain escalation clauses covering increased costs for various defined real estate taxes and operating services. Rent escalation fees are recognized straight-line over the lease term. Minimum rental commitments, including rent payments on the sale-leaseback described in Note 13 to the consolidated financial statements, under existing non-cancelable leases with a remaining term of more than one year, are shown in the following table. The annual rental commitments for real estate are reduced by $2.4million in 2010, $2.1million in 2011, $1.3million in 2012, $1.0 million in 2013 and $0.8million in 2014 for sublease income. (in millions) 2010 $ 183.4 2011 167.9 2012 149.4 2013 136.4 2014 130.1 2015 and beyond 695.3 Total $ 1,462.5

Equity

Equity
	12 Months Ended Dec. 31, 2009 USD / shares
Equity [Abstract]
Equity	7. EQUITY CAPITAL STOCK. Two million shares of preferred stock, par value $1 per share, are authorized; none have been issued. In 2009, dividends were paid at the quarterly rate of $0.225 per common share. Dividends were paid at an annualized rate of $0.90, $0.88 and $0.82 per common share in 2009, 2008 and 2007, respectively. Total dividends paid in 2009, 2008 and 2007 were $281.6million, $280.5million and $277.7million, respectively. On January20, 2010, the Board of Directors approved an increase in the dividends for 2010 to a quarterly rate of $0.235 per common share. STOCK REPURCHASES. On January24, 2006, the Board of Directors approved a stock repurchase program (the 2006 program) authorizing the purchase of up to 45.0million shares, which was approximately 12.1% of our total outstanding common stock at that time. At December31, 2006, authorization for the repurchase of 20.0million shares remained under the 2006 program. On January31, 2007, the Board of Directors approved a new stock repurchase program (the 2007 program) authorizing the repurchase of up to 45.0million additional shares, which was approximately 12.7% of our total outstanding common stock at that time. During 2007, we repurchased 37.0million shares, which included the remaining 20.0million shares under the 2006 program, for $2.2billion at an average price of $59.80. At December31, 2007, authorization for the repurchase of 28.0million shares remained under the 2007 program. During 2008, we repurchased 10.9million shares under the 2007 program, for $0.4billion at an average price of $41.03. At December31, 2008, authorization for the repurchase of 17.1million shares remained under the 2007 program. During 2009, no shares were repurchased. Share repurchases for the years ended December31, are as follows: (in millions, except average price) 2009 2008 2007 Shares repurchased 10.9 37.0 Average price $ $ 41.03 $ 59.80 Amount $ $ 447.2 $ 2,212.7 Shares repurchased were used for general corporate purposes, including the issuance of shares for stock compensation plans and to offset the dilutive effect of the exercise of employee stock options. In any period, cash used in financing activities related to common stock repurchased may differ from the comparable change in equity, reflecting timing differences between the recognition of share repurchase transactions and their settlement for cash. ACCUMULATED OTHER COMPREHENSIVE LOSS. Accumulated other comprehensive loss at December31, consists of the following: (in thousands) 2009 2008 2007 Foreign currency translation adjustments $ (61,734 ) $ (104,757 ) $ (8,074 ) Unrealized gain on investment, net of tax 1,959 304 3,747 Pension and other postretirement plans, net of tax (283,242 ) (339,569 ) (8,296 ) Total accumulated other comprehensive loss $ (343,017 ) $ (444,022 ) $ (12,623 )

Stock Plan Awards

Stock Plan Awards
	12 Months Ended Dec. 31, 2009 USD / shares
Stock Plan Awards [Abstract]
Stock Plan Awards	8. STOCK PLAN AWARDS We have a Director Deferred Stock Ownership Plan and three employee stock ownership plans: the 1987, 1993 and 2002 Employee Stock Incentive Plans. DIRECTOR DEFERRED STOCK OWNERSHIP PLAN Under this Plan, common stock reserved may be credited to deferred stock accounts for eligible Directors. In general, the Plan requires that 50% of eligible Directors annual compensation plus dividend equivalents be credited to deferred stock accounts. Each Director may also elect to defer all or a portion of the remaining compensation and have an equivalent number of shares credited to the deferred stock account. Recipients under this Plan are not required to provide consideration to us other than rendering service. Shares will be delivered as of the date a recipient ceases to be a member of the Board of Directors or within five years thereafter, if so elected. The Plan will remain in effect until terminated by the Board of Directors or until no shares of stock remain available under the Plan. 1987 AND 1993 EMPLOYEE STOCK INCENTIVE PLANS These plans provided for the granting of incentive stock options, nonqualified stock options, stock appreciation rights (SARs), restricted stock awards, deferred stock (applicable to the 1987 Plan only) or other stock-based awards. No further awards may be granted under these Plans; although awards granted prior to the adoption of the 2002 Plan, as amended, remain outstanding under these Plans in accordance with their terms. 2002 EMPLOYEE STOCK INCENTIVE PLAN AS AMENDED IN 2004 (THE 2002 PLAN) The 2002 Plan permits the granting of nonqualified stock options, SARs, performance stock, restricted stock, and other stock-based awards. Shares subject to awards other than stock options or SARS count against the pool as three shares for every one share granted. The number of common shares reserved for issuance at December31, are as follows: (in thousands) 2009 2008 Shares available for granting under the 2002 Plan 18,956 20,526 Options outstanding 31,406 32,469 Shares reserved for issuance for employee stock plan awards 50,362 52,995 Director Deferred Stock Ownership Plan 536 556 Total shares reserved for issuance 50,898 53,551 We issue treasury shares upon exercise of stock options and the issuance of restricted stock and unit awards. To offset the dilutive effect of the exercise of employee stock options, we periodically repurchase shares. STOCK OPTIONS Stock options, which may not be granted at a price less than the fair market value of our common stock on the date of grant, vest over a two year service period in equal annual installments and have a maximum term of 10years. We receive a tax deduction for certain stock option exercises during the period in which the options are exercised, generally for the excess of the quoted market value of the stock at the time of the exercise of the options over the exercise price of the options. The actual income tax benefit realized from stock option exercises for the years ended December31, is as follows: (in millions)

Retirement Plans

Retirement Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Retirement Plans [Abstract]
Retirement Plans	9. RETIREMENT PLANS We have a number of defined benefit pension plans and defined contribution plans covering substantially all employees. Our primary pension plan is a noncontributory plan under which benefits are based on employee career employment compensation. We also have unfunded non-U.S. and supplemental benefit plans. The supplemental benefit plans provide senior management with supplemental retirement, disability and death benefits. Certain supplemental retirement benefits are based on final monthly earnings. In addition, we sponsor voluntary 401(k) plans under which we may match employee contributions up to certain levels of compensation as well as profit-sharing plans under which we contribute a percentage of eligible employees compensation to the employees accounts. We recognize the funded status of our pension plans in the consolidated balance sheet, with a corresponding adjustment to accumulated other comprehensive income, net of taxes. The amounts in accumulated other comprehensive income represent net unrecognized actuarial losses and unrecognized prior service costs. These amounts will be subsequently recognized as net periodic pension cost pursuant to our accounting policy for amortizing such amounts. A summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the defined benefit plans as of December31, is as follows: CHANGE IN BENEFIT OBLIGATION (in millions) 2009 2008 Net benefit obligation at beginning of year $ 1,395.8 $ 1,380.8 Service cost 58.1 58.3 Interest cost 86.4 86.0 Plan participants contributions 0.6 0.9 Actuarial loss/(gain) 63.6 (4.8 ) Gross benefits paid (55.7 ) (70.4 ) Foreign currency effect 15.6 (55.0 ) Other adjustments 5.0 Net benefit obligation at end of year $ 1,569.4 $ 1,395.8 CHANGE IN PLAN ASSETS (in millions) 2009 2008 Fair value of plan assets at beginning of year $ 972.3 $ 1,493.9 Actual return on plan assets 268.1 (445.0 ) Employer contributions 78.0 39.3 Plan participants contributions 0.6 0.9 Gross benefits paid (55.7 ) (70.4 ) Foreign currency effect 13.7 (46.4 ) Fair value of plan assets at end of year 1,277.0 972.3 Funded status $ (292.4 ) $ (423.5 ) Benefits paid in the above table include only those amounts contributed directly to or paid directly from plan assets. The funded status of the defined benefit plans includes $78.5million in non-current assets for pension benefits, $5.0million in other current liabilities and $365.9million in liability for pension and other postretirement benefits in the consolidated balance sheet as of December31, 2009, and $53.0million in non-current assets for pension benefits, $4.5million in other current liabilities and $472.0million in liability for pension and other postretirement benefits in the consolidated balance sheet as of December31, 2008. The accumulated benefit obligation as of December31,

Postretirement Healthcare and O

Postretirement Healthcare and Other Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Postretirement Healthcare and Other Benefits [Abstract]
Postretirement Healthcare and Other Benefits	10. POSTRETIREMENT HEALTHCARE AND OTHER BENEFITS We provide certain medical, dental and life insurance benefits for retired employees and eligible dependents. The medical and dental plans are contributory while the life insurance plan is noncontributory. We currently do not prefund any of these plans. We recognize the funded status of our Postretirement Healthcare and Other Benefits plans in the consolidated balance sheet, with a corresponding adjustment to accumulated other comprehensive income, net of taxes. The actuarial gains and losses that arise are not recognized as net periodic benefit cost in the same periods and are recognized as a component of other comprehensive income. Those amounts will be subsequently recognized as a component of net periodic benefit cost pursuant to our accounting policy for amortizing such amounts. The reconciliation of the beginning and ending balances in the benefit obligation as well as the funded status as of December31, is as follows: CHANGE IN BENEFIT OBLIGATION (in millions) 2009 2008 Net benefit obligation at beginning of year $ 150.6 $ 142.4 Service cost 2.4 2.4 Interest cost 8.3 8.4 Plan participants contributions 5.2 4.3 Actuarial loss 8.6 12.7 Gross benefits paid (19.1 ) (20.6 ) Federal subsidy benefits received 1.0 1.0 Net benefit obligation at end of year $ 157.0 $ 150.6 The discount rate used to determine the benefit obligations as of December31, 2009 and 2008 was 5.30% and 5.95%, respectively. As of December31, 2009, the unfunded status of the postretirement benefit obligation of $157.0million includes $13.2million in other current liabilities and $143.8million in liabilities for pension and other postretirement benefits in the consolidated balance sheet. As of December31, 2008, the unfunded status of the postretirement benefit obligation of $150.6million includes $16.3million in other current liabilities and $134.3million in liabilities for pension and other postretirement benefits in the consolidated balance sheet. Amounts recognized in accumulated other comprehensive loss, net of tax as of December31, consist of: (in millions) 2009 2008 Net actuarial loss/(gain) $ 12.3 $ 7.1 Prior service credit (3.4 ) (4.1 ) Total recognized in accumulated other comprehensive loss, net of tax $ 8.9 $ 3.0 The prior service credit and actuarial loss included in accumulated other comprehensive loss and expected to be recognized in net periodic benefit cost during the fiscal year ending December31, 2010 is $1.2million and $0.6million, respectively. A summary of the components of the net periodic benefit cost is as follows: COMPONENTS OF NET PERIODIC BENEFIT COST (in millions) 2009 2008 2007 Service cost $ 2.4 $ 2.4 $ 2.5 Interest cost 8.3 8.4 7.9 Amortization of prior service credit (1.2 ) (1.2 ) (1.2 ) Net periodic benefit cost $ 9.5 $ 9.6 $ 9.2 Other change

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	11. EARNINGS PER SHARE A reconciliation of the number of shares used for calculating basic earnings per common share and diluted earnings per common share is as follows: (in thousands) 2009 2008 2007 Net income $ 730,502 $ 799,491 $ 1,013,559 Average number of common shares outstanding 312,223 315,559 336,210 Effect of stock options and other dilutive securities 1,073 3,128 8,575 Average number of common shares outstanding including effect of dilutive securities 313,296 318,687 344,785 Restricted performance shares outstanding of 2.3million, 2.3million and 2.0million at December31, 2009, 2008 and 2007, respectively, were not included in the computation of diluted earnings per common share because the necessary vesting conditions have not yet been met. The weighted-average diluted shares outstanding for the years ended December31, 2009, 2008 and 2007 excludes the effect of approximately 27.9million, 21.7million and 1.7million, respectively, of potentially dilutive outstanding stock options from the calculation of diluted earnings per common share because the effects were not dilutive.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and other intangible assets Abstract
Goodwill And Other Intangible Assets	12. GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the activity in goodwill for the years ended December31: (in thousands) 2009 2008 Beginning balance $ 1,703,240 $ 1,697,621 (Dispositions)/additions (21,011 ) 17,267 Other 8,278 (11,648 ) Total $ 1,690,507 $ 1,703,240 The following table summarizes the activity in goodwill by segment for the years ended December 31: (in thousands) 2009 2008 McGraw-Hill Education Beginning balance $ 927,128 $ 931,066 Other 2,270 (3,938 ) Total McGraw-Hill Education $ 929,398 $ 927,128 Financial Services Beginning balance $ 487,539 $ 487,877 (Dispositions)/additions (20,628 ) 4,537 Other 5,275 (4,875 ) Total Financial Services $ 472,186 $ 487,539 Information Media Beginning balance $ 288,573 $ 278,678 (Dispositions)/additions (383 ) 12,730 Other 733 (2,835 ) Total Information Media $ 288,923 $ 288,573 Total Company $ 1,690,507 $ 1,703,240 In 2009, the change in goodwill is primarily attributable to the effect of dispositions and foreign exchange translation. In 2008, the change in goodwill is primarily attributable to the effect of acquisitions and foreign exchange translation. The following table summarizes other intangible assets subject to amortization at December31: (in thousands) 2009 2008 Copyrights $ 462,148 $ 461,520 Accumulated amortization (315,909 ) (299,213 ) Net copyrights $ 146,239 $ 162,307 Other intangibles $ 435,512 $ 445,087 Accumulated amortization (245,081 ) (218,329 ) Net other intangibles $ 190,431 $ 226,758 Total gross intangible assets $ 897,660 $ 906,607 Total accumulated amortization (560,990 ) (517,542 ) Total net intangible assets $ 336,670 $ 389,065 Intangible assets are being amortized on a straight-line basis over periods of up to 40years. Amortization expense for intangible assets totaled $52.7million, $58.5million and $48.4million for the years ended December31, 2009, 2008 and 2007, respectively. The weighted-average life of the intangible assets at December31, 2009 is 13years. The projected amortization expense for intangible assets, assuming no further acquisitions or dispositions, is approximately $34.0million per year over the next five years. The following table summarizes other intangible assets not subject to amortization as of December 31: (in thousands) 2009 2008 Trade name J.D. Power and Associates $ 164,000 $ 164,000 FCC licenses $ 38,065 $ 38,065

Sale-Leaseback Transaction

Sale-Leaseback Transaction
	12 Months Ended Dec. 31, 2009 USD / shares
Sale-Leaseback Transaction [Abstract]
Sale-Leaseback Transaction	13. SALE-LEASEBACK TRANSACTION In December2003, we sold our 45% equity investment in Rock-McGraw, Inc., which owns our headquarters building in New York City. The transaction was valued at $450.0million, including assumed debt. Proceeds from the disposition were $382.1million. The sale resulted in a pre-tax gain of $131.3million and an after-tax benefit of $58.4million, or $0.15 per diluted share. We remain an anchor tenant of what continues to be known as The McGraw-Hill Companies building and will continue to lease space from Rock-McGraw, Inc., under an existing lease through March2020. Currently, we lease approximately 17% of the building space. The lease is being accounted for as an operating lease. Pursuant to sale-leaseback accounting rules, as a result of our continued involvement, a gain of approximately $212.3million ($126.3million after-tax) was deferred at December31, 2003, and is being amortized over the remaining lease term as a reduction in rent expense. At the time of the sale, our degree of involvement was determined to be more than minor since the present value of future minimum lease payments under the current lease was greater than 10% of the fair value of the property. Information relating to the sale-leaseback transaction for the year ended December31, 2009, is as follows: (in millions) Deferred gain at December 31, 2008 $ 169.8 Reduction in rent expense (18.4 ) Interest expense 7.6 Deferred gain at December 31, 2009 $ 159.0 As of December31, 2009, the minimum lease payments to be paid each year are as follows: (in millions) 2010 $ 18.4 2011 18.4 2012 19.1 2013 19.9 2014 19.9 Thereafter 104.5 Total $ 200.2

Restructuring

Restructuring
	12 Months Ended Dec. 31, 2009 USD / shares
Restructuring [Abstract]
Restructuring	14. RESTRUCTURING 2009 RESTRUCTURING During the second quarter 2009, we initiated a restructuring plan that included a realignment of select business operations within the McGraw-Hill Education segment to further strengthen our position in the market by creating a market focused organization that enhances our ability to address the changing needs of our customers. Additionally, we continued to implement restructuring plans related to a limited number of our business operations to contain costs and mitigate the impact of the current and expected future economic conditions. We recorded a pre-tax restructuring charge of $24.3million, consisting primarily of employee severance costs related to a workforce reduction of approximately 550 positions. This charge consisted of $14.0million for McGraw-Hill Education, $4.5million for Financial Services and $5.8million for Information Media. In addition, during the second quarter 2009, we revised our estimate of previously recorded restructuring charges and reversed approximately $9.1million, consisting of $2.4million for McGraw-Hill Education, $4.9million for Financial Services and $1.8million for Information Media. The net after-tax charge recorded was $9.7million, or $0.03 per diluted share. Net restructuring expenses for McGraw-Hill Education were $11.6million classified as selling and general product expenses, within the statement of income. Net restructuring benefit for Financial Services was $0.4million classified as selling and general service expenses within the statement of income. Net restructuring expenses for Information Media were $2.3million classified as selling and general service expenses, and $1.7million classified as selling and general product expenses, within the statement of income. At December31, 2009, we have paid approximately $11.3million, related to the 2009 restructuring, consisting primarily of employee severance costs. The remaining reserve at December31, 2009 is approximately $13.0million and is included in other current liabilities. 2008 RESTRUCTURING During 2008, we continued to implement restructuring plans related to a limited number of business operations to contain costs and mitigate the impact of the current and expected future economic conditions. We recorded a pretax restructuring charge of $73.4million, consisting primarily of employee severance costs related to a workforce reduction of approximately 1,045 positions. This charge consisted of $25.3million for McGraw-Hill Education, $25.9million for Financial Services, $19.2million for Information Media and $3.0million for Corporate. The after-tax charge recorded was $45.9million, or $0.14 per diluted share. Restructuring expenses for McGraw-Hill Education were $20.8million classified as selling and general product expenses, and $4.5million classified as selling and general service expenses, within the statement of income. Restructuring expenses for Financial Services were classified as selling and general service expenses within the statement of income. Restructuring expenses for Information Media were $18.9 million classified as selling and general service expenses, and $0.3million cl

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies [Abstract]
Commitments and Contingencies	15. COMMITMENTS AND CONTINGENCIES In the normal course of business both in the United States and abroad, the Company and its subsidiaries are defendants in numerous legal proceedings and are involved, from time to time, in governmental and self-regulatory agency proceedings which may result in adverse judgments, damages, fines or penalties. Also, various governmental and self-regulatory agencies regularly make inquiries and conduct investigations concerning compliance with applicable laws and regulations. A writ of summons was served on The McGraw-Hill Companies, SRL and on The McGraw-Hill Companies, SA (both indirect subsidiaries of the Company) (collectively, Standard Poors) on September29, 2005 and October7, 2005, respectively, in an action brought in the Tribunal of Milan, Italy by Enrico Bondi (Bondi), the Extraordinary Commissioner of Parmalat Finanziaria S.p.A. and Parmalat S.p.A. (collectively, Parmalat). Bondi has brought numerous other lawsuits in both Italy and the United States against entities and individuals who had dealings with Parmalat. In this suit, Bondi claims that Standard Poors, which had issued investment grade ratings on Parmalat until shortly before Parmalats collapse in December2003, breached its duty to issue an independent and professional rating and negligently and knowingly assigned inflated ratings in order to retain Parmalats business. Alleging joint and several liability, Bondi claims damages of euros 4,073,984,120 (representing the value of bonds issued by Parmalat and the rating fees paid by Parmalat) with interest, plus damages to be ascertained for Standard Poors alleged complicity in aggravating Parmalats financial difficulties and/or for having contributed in bringing about Parmalats indebtedness towards its bondholders, and legal fees. Standard Poors filed its answer, counterclaim and third-party claims on March16, 2006. The court has appointed two experts to assist in its determinations. In a separate proceeding, the prosecutors office in Parma, Italy is conducting an investigation into the bankruptcy of Parmalat. In June2006, the prosecutors office issued a Note of Completion of an Investigation (Note of Completion) concerning allegations, based on Standard Poors investment grade ratings of Parmalat, that individual Standard Poors rating analysts conspired with Parmalat insiders and rating advisors to fraudulently or negligently cause the Parmalat bankruptcy. The Note of Completion was served on eight Standard Poors rating analysts. While not a formal charge, the Note of Completion indicates the prosecutors intention that the named rating analysts should appear before a judge in Parma for a preliminary hearing, at which hearing the judge will determine whether there is sufficient evidence against the rating analysts to proceed to trial. No date has been set for the preliminary hearing. On July7, 2006, a defense brief was filed with the Parma prosecutors office on behalf of the rating analysts. On October8, 2009, an action was filed in the District Court for the Southern District of New York entitled Reed Construction Data, Inc. v. The McGraw-Hill Companies, Inc. in which Reed C

Reserves for Doubtful Accounts

Reserves for Doubtful Accounts and Sales Returns
	12 Months Ended Dec. 31, 2009 USD / shares
Reserves for Doubtful Accounts and Sales Returns [Abstract]
Schedule II - Reserves for Doubtful Accounts and Sales Returns	The McGraw-Hill Companies, Inc. Schedule Of Valuation and Qualifying Accounts Disclosure ScheduleII Reserves for Doubtful Accounts and Sales Returns (In thousands) Balance at Balance Additions/(deductions) beginning Charged at end of year to income Deductions of year (A) Year ended 12/31/09 Allowance for doubtful accounts $ 76,341 $ 31,635 $ (33,783 ) $ 74,193 Allowance for returns 192,344 9,573 201,917 $ 268,685 $ 41,208 $ (33,783 ) $ 276,110 Year ended 12/31/08 Allowance for doubtful accounts $ 70,586 $ 27,098 $ (21,343 ) $ 76,341 Allowance for returns 197,095 (4,751 ) 192,344 $ 267,681 $ 22,347 $ (21,343 ) $ 268,685 Year ended 12/31/07 Allowance for doubtful accounts $ 73,405 $ 14,991 $ (17,810 ) $ 70,586 Allowance for returns 188,515 8,580 197,095 $ 261,920 $ 23,571 $ (17,810 ) $ 267,681 (A) Accounts written off, less recoveries.