S&P Global (SPGI) 10-Q 28 Apr 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
Share data in Millions	3 Months Ended Mar. 31, 2010	Apr. 16, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	MCGRAW-HILL COMPANIES INC
Entity Central Index Key	0000064040
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
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		315.5

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenue
Product	$310,822	$289,398
Service	879,568	858,809
Total revenue	1,190,390	1,148,207
Operating-related
Product	172,983	174,273
Service	303,243	314,666
Operating-related expenses	476,226	488,939
Selling and general
Product	186,686	181,994
Service	301,285	309,317
Selling and general expenses	487,971	491,311
Depreciation	25,948	29,412
Amortization of intangibles	9,981	14,204
Total expenses	1,000,126	1,023,866
Income from operations	190,264	124,341
Interest expense - net	22,039	20,591
Income before taxes on income	168,225	103,750
Provision for taxes on income	61,234	37,765
Net income	106,991	65,985
Less: net income attributable to noncontrolling interests	(3,705)	(2,981)
Net income attributable to The McGraw-Hill Companies, Inc.	$103,286	$63,004
Earnings per common share:
Basic	0.33	0.2
Diluted	0.33	0.2
Average number of common shares outstanding:
Basic	313,372	312,017
Diluted	316,264	312,017
Dividend declared per common share	0.235	0.225

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009	12 Months Ended Dec. 31, 2009
Current assets:
Cash and equivalents	$1,209,370	$496,799	$1,209,927
Short-term investments	25,140	0	24,602
Accounts receivable (net of allowance for doubtful accounts and sales returns)	766,467	832,339	969,662
Inventories	319,126	386,400	301,229
Deferred income taxes	289,524	281,275	278,414
Prepaid and other current assets	165,366	131,112	152,562
Total current assets	2,774,993	2,127,925	2,936,396
Prepublication costs (net of accumulated amortization)	465,245	567,212	460,843
Investments and other assets:
Assets for pension benefits	80,447	48,299	78,522
Deferred income taxes	22,694	61,022	24,072
Other	168,619	169,334	166,379
Total investments and other assets	271,760	278,655	268,973
Property and equipment - at cost	1,565,899	1,553,904	1,570,450
Less: accumulated depreciation	(1,007,092)	(957,250)	(990,654)
Net property and equipment	558,807	596,654	579,796
Goodwill and other intangible assets:
Goodwill - net	1,689,627	1,702,152	1,690,507
Indefinite-lived intangible assets	202,065	202,065	202,065
Copyrights - net	142,168	158,253	146,239
Other intangible assets - net	184,571	216,502	190,431
Net goodwill and other intangible assets	2,218,431	2,278,972	2,229,242
Total assets	6,289,236	5,849,418	6,475,250
Current liabilities:
Notes payable	22	159,922	22
Accounts payable	293,373	275,457	301,828
Accrued royalties	30,953	31,409	114,157
Accrued compensation and contributions to retirement plans	285,136	294,150	450,673
Income taxes currently payable	16,550	19,234	17,086
Unearned revenue	1,117,448	1,087,269	1,115,357
Deferred gain on sale-leaseback	11,367	10,851	11,236
Other current liabilities	451,518	475,726	441,595
Total current liabilities	2,206,367	2,354,018	2,451,954
Other liabilities:
Long-term debt	1,197,835	1,197,656	1,197,791
Deferred income taxes	9,428	2,087	9,965
Liability for pension and other postretirement benefits	516,180	604,788	511,683
Deferred gain on sale-leaseback	144,936	156,345	147,838
Other non-current liabilities	229,505	228,540	226,842
Total other liabilities	2,097,884	2,189,416	2,094,119
Total liabilities	4,304,251	4,543,434	4,546,073
Commitments and Contingencies (Note 12)
Equity:
Common stock	411,709	411,709	411,709
Additional paid-in capital	34,710	11,093	5,125
Retained income	6,551,841	6,062,946	6,522,613
Accumulated other comprehensive loss	(350,654)	(457,644)	(343,017)
Less: common stock in treasury - at cost	(4,746,810)	(4,792,898)	(4,749,143)
Total equity - controlling interests	1,900,796	1,235,206	1,847,287
Total equity - noncontrolling interests	84,189	70,778	81,890
Total equity	1,984,985	1,305,984	1,929,177
Total liabilities and equity	$6,289,236	$5,849,418	$6,475,250

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities
Net income	$106,991	$65,985
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	25,948	29,412
Amortization of intangibles	9,981	14,204
Amortization of prepublication costs	25,803	27,291
Provision for losses on accounts receivable	9,752	10,272
Net change in deferred income taxes	(10,808)	(2,174)
Stock-based compensation	8,337	7,830
Other	(1,821)	(1,348)
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	190,657	211,766
Inventories	(17,110)	(20,797)
Prepaid and other current assets	(26,897)	(19,862)
Accounts payable and accrued expenses	(253,527)	(265,577)
Unearned revenue	9,180	(7,725)
Other current liabilities	9,153	20,236
Net change in prepaid/accrued income taxes	12,304	1,608
Net change in other assets and liabilities	4,881	(3,990)
Cash provided by operating activities	102,824	67,131
Cash flows from investing activities
Investments in prepublication costs	(29,904)	(42,723)
Purchase of property and equipment	(7,623)	(8,025)
Disposition of property and equipment	5,085	31
Additions to technology projects	(4,021)	(1,711)
Change in short-term investments	(538)	0
Cash used for investing activities	(37,001)	(52,428)
Cash flows from financing activities
Additions to short-term debt - net	0	89,900
Dividends paid to shareholders	(74,058)	(70,851)
Exercise of stock options	22,168	0
Excess tax benefits from share-based payments	1,132	0
Cash (used for)/provided by financing activities	(50,758)	19,049
Effect of exchange rate changes on cash	(15,622)	(8,624)
Net change in cash and equivalents	(557)	25,128
Cash and equivalents at beginning of period	1,209,927	471,671
Cash and equivalents at end of period	$1,209,370	$496,799

Basis of Presentation

Basis of Presentation
	3 Months Ended Mar. 31, 2010
Basis of Presentation [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited financial statements of The McGraw-Hill Companies, Inc. (together with its consolidated subsidiaries, the Company, we, us or our) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule10-01 of RegulationS-X. The financial statements included herein should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December31, 2009 (the Annual Report). In the opinion of management all normal recurring adjustments considered necessary for a fair statement of the results of the interim periods have been included. The operating results for the three months ended March31, 2010 are not necessarily indicative of results to be expected for the full year due to the seasonal nature of some of our businesses. Certain prior-year amounts have been reclassified for comparability purposes. Our critical accounting policies are disclosed in Item7, Managements Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report. On an ongoing basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowance for doubtful accounts and sales returns, prepublication costs, valuation of inventories, valuation of long-lived assets, goodwill and other intangible assets, pension plans, income taxes, incentive compensation and stock-based compensation. Since the date of the Annual Report, there have been no material changes to our critical accounting policies.

Comprehensive Income

Comprehensive Income
	3 Months Ended Mar. 31, 2010
Comprehensive Income [Abstract]
Comprehensive Income	2. Comprehensive Income The following table is a reconciliation of net income to comprehensive income for the periods ended March31: 2010 2009 Net income $ 106,991 $ 65,985 Other comprehensive income: Foreign currency translation adjustment (8,194 ) (16,747 ) Pension and other postretirement benefit plans, net of tax 2,156 637 Unrealized gain/(loss) on investment, net of tax 465 (146 ) Comprehensive income 101,418 49,729 Less: comprehensive income attributable to noncontrolling interests (5,769 ) (347 ) Comprehensive income attributable to The McGraw-Hill Companies, Inc. $ 95,649 $ 49,382

Segment and Related Information

Segment and Related Information
	3 Months Ended Mar. 31, 2010
Segment and Related Information [Abstract]
Segment and Related Information	3. Segment and Related 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, college and university, 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 Information Media segment includes business, professional and broadcast media, offering information, insight and analysis. Operating profit by segment is the primary basis for our chief operating decision maker, the Executive Committee, to evaluate the performance of each segment. A summary of operating results by segment for the periods ended March31 is as follows: 2010 2009 Operating Operating Revenue Profit (Loss) Revenue Profit (Loss) McGraw-Hill Education $ 317,247 $ (61,792 ) $ 312,628 $ (76,596 ) Financial Services 666,983 260,016 610,154 231,593 Information Media 206,160 27,829 225,425 2,772 Total operating segments 1,190,390 226,053 1,148,207 157,769 General corporate expense (35,789 ) (33,428 ) Interest expense net (22,039 ) (20,591 ) Total Company $ 1,190,390 $ 168,225 * $ 1,148,207 $ 103,750 * * Income before taxes on income

Acquisitions and Dispositions

Acquisitions and Dispositions
	3 Months Ended Mar. 31, 2010
Acquisitions and Dispositions [Abstract]
Acquisitions and Dispositions	4. Acquisitions and Dispositions There were no acquisitions or dispositions by the Company for the three months ended March31, 2010 and 2009.

Stock-Based Compensation

Stock-Based Compensation
	3 Months Ended Mar. 31, 2010
Stock-Based Compensation [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation Stock-based compensation for the three months ended March31 is as follows: 2010 2009 Stock option expense $ 4,318 $ 6,388 Restricted stock and unit awards expense 4,019 1,442 Total stock-based compensation expense $ 8,337 $ 7,830 The number of common shares issued upon exercise of stock options and the vesting of restricted stock and unit awards are as follows: March 31, December 31, March 31, (in thousands) 2010 2009 2009 Stock options exercised 882 943 Restricted stock and units vested 7 1,430 1,417 Total shares issued 889 2,373 1,417

Allowances, Inventories and Acc

Allowances, Inventories and Accumulated Amortization of Prepublication Costs
	3 Months Ended Mar. 31, 2010
Allowances, Inventories and Accumulated Amortization of Prepublication Costs [Abstract]
Allowances, Inventories and Accumulated Amortization of Prepublication Costs	6. Allowances, Inventories and Accumulated Amortization of Prepublication Costs The allowances for doubtful accounts and sales returns, the components of inventory and the accumulated amortization of prepublication costs are as follows: March 31, December 31, March 31, 2010 2009 2009 Allowance for doubtful accounts $ 77,943 $ 74,193 $ 71,938 Allowance for sales returns $ 144,535 $ 201,917 $ 128,492 Inventories: Finished goods $ 305,579 $ 290,415 $ 372,138 Work-in-process 4,704 3,858 3,748 Paper and other materials 8,843 6,956 10,514 Total inventories $ 319,126 $ 301,229 $ 386,400 Accumulated amortization of prepublication costs $ 886,407 $ 1,005,114 $ 766,739

Debt

Debt
	3 Months Ended Mar. 31, 2010
Debt [Abstract]
Debt	7. Debt A summary of short-term and long-term debt outstanding is as follows: March 31, December 31, March 31, 2010 2009 2009 5.375% Senior notes, due 2012 (a) $ 399,816 $ 399,798 $ 399,745 5.900% Senior notes, due 2017 (b) 399,272 399,248 399,176 6.550% Senior notes, due 2037 (c) 398,547 398,534 398,494 Commercial paper 159,900 Note payable 222 233 263 Total debt 1,197,857 1,197,813 1,357,578 Less: short-term debt including current maturities 22 22 159,922 Long-term debt $ 1,197,835 $ 1,197,791 $ 1,197,656 Senior Notes (a) As of March31, 2010, our 2012 senior notes consisted of $400million principal and an unamortized debt discount of $0.2million. The 2012 senior notes, when issued in November 2007, were priced at 99.911% with a yield of 5.399%. Interest payments are due semiannually on February15 and August15. (b) As of March31, 2010, our 2017 senior notes consisted of $400million principal and an unamortized debt discount of $0.7million. The 2017 senior notes, when issued in November 2007, were priced at 99.76% with a yield of 5.933%. Interest payments are due semiannually on April15 and October15. (c) As of March31, 2010, our 2037 senior notes consisted of $400million principal and an unamortized debt discount of $1.5million. The 2037 senior notes, when issued in November 2007, were priced at 99.605% with a yield of 6.580%. Interest payments are due semiannually on May15 and November15. The fair value of the Companys long-term borrowings was approximately $1.3billion at March31, 2010. We paid interest on our debt totaling $10.8million for both three month periods ended March31, 2010 and 2009. Additional Financing Currently, we have the ability to borrow additional funds through our commercial paper program, which is supported by our credit facility. Historically, we have also had the ability to borrow additional funds through Extendible Commercial Notes (ECNs) and a promissory note. However, in the current credit environment the market for ECNs and financing through our promissory note are not available and, as such, we have no short-term plans to utilize these sources for additional funds. As of March31, 2010 and December31, 2009, we have not utilized any of these sources for additional funds. As of March31, 2009, we have only borrowed under the commercial paper program. Commercial Paper Program The size of our total commercial paper program is $1.2billion and is supported by the revolving credit agreements described below. Commercial paper borrowings outstanding at March31, 2009 totaled $159.9million, with an average interest rate and average term of 0.3% and 15days, respectively. These borrowings are classified as current notes payable in the consolidated balance sheet as of March31, 2009. Credit Facility Our credit facility serves as a backup facility for short-term financing requi

Common Shares Outstanding

Common Shares Outstanding
	3 Months Ended Mar. 31, 2010
Common Shares Outstanding [Abstract]
Common Shares Outstanding	8. Common Shares Outstanding A reconciliation of the number of shares used for calculating diluted earnings per common share for the three months ended March31 is as follows: (in thousands) 2010 2009 Average number of common shares outstanding basic 313,372 312,017 Effect of stock options and other dilutive securities 2,892 Average number of common shares outstanding dilutive 316,264 312,017 The computation of diluted earnings per share excludes certain restricted performance shares outstanding and certain stock options outstanding. Restricted performance shares outstanding of 1.7million and 2.4million at March31, 2010 and 2009, respectively, were not included in the computation of diluted earnings per common share because the necessary vesting conditions have not yet been met. The effect of the potential exercise of stock options is excluded from the computation of diluted earnings per share when the average market price of the common stock is lower than the exercise price of the related option during the period because the effect would have been antidilutive. For the three months ended March31, 2010 and 2009, the number of stock options excluded from the computation was 19.1million and 30.8million, respectively.

Retirement Plans and Postretire

Retirement Plans and Postretirement Healthcare and Other Benefits
	3 Months Ended Mar. 31, 2010
Retirement Plans and Postretirement Healthcare and Other Benefits [Abstract]
Retirement Plans and Postretirement Healthcare and Other Benefits	9. Retirement Plans and Postretirement Healthcare and Other Benefits A summary of net periodic benefit cost for our defined benefit plans and postretirement healthcare and other benefits plan for the three months ended March31 is as follows: Postretirement Healthcare and Pension Benefits Other Benefits 2010 2009 2010 2009 Service cost $ 16,187 $ 14,422 $ 641 $ 698 Interest cost 23,736 21,586 2,016 2,162 Expected return on plan assets (27,925 ) (25,973 ) Amortization of prior service credit (82 ) (61 ) (296 ) (296 ) Amortization of loss 3,760 1,655 143 Net periodic benefit cost $ 15,676 $ 11,629 $ 2,504 $ 2,564 The amortization of prior service credit and amortization of loss for the three months ended March31, 2010 and 2009, included in the above table, have been included in other comprehensive income, net of tax. In 2010, the expected rate of return on plan assets is 8.0% based on a market-related value of assets, which recognizes changes in market value over five years. We changed certain assumptions on our pension and postretirement healthcare and other benefit plans which became effective on January1, 2010: We changed our discount rate assumption on our U.S. retirement plans to 5.95% from 6.10% in 2009. We changed our discount rate assumption on our United Kingdom (U.K.) retirement plan to 5.90% from 5.80% and our assumed compensation increase factor for our U.K. retirement plan to 6.25% from 5.50%. We changed our discount rate on our postretirement healthcare benefit plan to 5.30% from 5.95% in 2009. The effect of the assumption changes on pension and other postretirement healthcare expense for the three months ended March31, 2010 and 2009 did not have a material effect on earnings per share. In 2010, we contributed $7.2million to our retirement plans, primarily related to our U.K. retirement plan. Additionally, for the rest of 2010 we expect to contribute approximately $21.0 million to our retirement plans.

Sale-Leaseback

Sale-Leaseback
	3 Months Ended Mar. 31, 2010
Sale-Leaseback [Abstract]
Sale-Leaseback	10. Sale-Leaseback In December2003, we sold our 45% equity investment in Rock-McGraw, Inc., which owns our headquarters building in New York City, and remained an anchor tenant of what continues to be known as The McGraw-Hill Companies building by concurrently leasing back space through 2020. As of March31, 2010, we leased approximately 17% of the building space. Proceeds from the disposition were $382.1million and the sale resulted in a pre-tax gain, net of transaction costs, of $131.3million ($58.4million after-tax) upon disposition. Due to our continued involvement in the building it was determined that we did not qualify for sale-leaseback accounting and, as a result, a pre-tax gain of $212.3million ($126.3million after-tax) was deferred upon the disposition in 2003. This gain is being amortized over the remaining lease term as a reduction in rent expense. For the first quarter of 2010, $4.6million was amortized, reducing the deferred gain to $156.3million. Interest expense associated with our operating lease is $1.8million for the first quarter of 2010.

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Income Taxes [Abstract]
Income Taxes	11. Income Taxes At the end of each interim period, we estimate the annual effective tax rate and apply that rate to our ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect, and are individually computed, are recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws or rates or tax status is recognized in the interim period in which the change occurs. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent and temporary differences, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is acquired, additional information is obtained or as the tax environment changes. For the three months ended March31, 2010 and 2009, the effective tax rate was 36.4%.

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies The following amends the disclosure in Note 15 Commitments and Contingencies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2009. In connection with the Patrick Gearren, et al and the Sullivan class actions both plaintiffs are seeking to appeal the dismissals of their actions. In connection with the Teamsters Allied Benefit Funds v. Harold McGraw III, et al derivative action on March11, 2010 the Court granted the Companys motion to dismiss the complaint, and on March23, 2010, after the plaintiffs time to file an amended complaint expired, the Court directed the clerk to close the case.

Restructuring

Restructuring
	3 Months Ended Mar. 31, 2010
Restructuring [Abstract]
Restructuring	13. 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 $14.0 million 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 $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. For the three months ended March31, 2010, we have paid $5.3million related to the 2009 restructuring, consisting of employee severance costs. The remaining reserve at March31, 2010 is $7.7million 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 pre-tax 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 $18.9million classified as selling and general service expenses, and $0.3million classified as selli

Recently Issued or Adopted Acco

Recently Issued or Adopted Accounting Standards
	3 Months Ended Mar. 31, 2010
Recently Issued or Adopted Accounting Standards [Abstract]
Recently Issued or Adopted Accounting Standards	14. Recently Issued or Adopted Accounting Standards In October2009, the Financial Accounting Standards Board (FASB) issued an update to authoritative guidance for revenue recognition, specifically amending the existing multiple-element arrangement guidance. This new guidance eliminates the requirement that all undelivered elements have objective and reliable evidence of fair value before a company can recognize the portion of the overall arrangement fee that is attributable to the items that have already been delivered. Further, companies will be required to allocate revenue in arrangements involving multiple deliverables based on estimated selling price of each deliverable, even though such deliverables are not sold separately by either the company itself or other vendors. This new guidance also significantly expands the disclosures required for multiple-element revenue arrangements. The revised guidance will be effective for the fiscal year ending December 31, 2011. We are currently evaluating the impact this update will have on our Consolidated Financial Statements. In June2009, the FASB issued amended guidance related to the accounting for variable interest entities (VIEs), which we adopted beginning January1, 2010. This guidance requires a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE; requires ongoing reassessments of whether an enterprise is a primary beneficiary of a VIE; enhances disclosures about an enterprises involvement with a VIE; and amends certain guidance for determining whether an entity is a VIE. We have evaluated our VIEs in accordance with this amended guidance and have determined that it does not have an impact on our Consolidated Financial Statements.