| Segment and Related Information |
| 12. |
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Segment and Related Information |
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We have four reportable segments: Standard & Poor’s (“S&P”), McGraw-Hill Financial (“MH
Financial”), McGraw-Hill Education (“MHE”) and McGraw-Hill Information & Media (“I&M”). |
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S&P is the world’s foremost provider of credit ratings providing investors with
information and independent ratings benchmarks for their investment and financial
decisions. |
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MH Financial is a leading global provider of digital and traditional research and
analytical tools for investment advisors, wealth managers and institutional investors. |
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MHE is a leading global provider of educational materials, information and solutions
serving the elementary and high school, college, professional, international and adult
education markets. |
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I&M consists of business-to-business and business-to-consumer companies, each an
expert in its industry, that deliver their customers access to actionable data and
analytics. The Broadcasting Group has historically been part of the I&M segment. In
accordance with the presentation of the Broadcasting Group as discontinued operations,
the results of operations for all periods presented have been reclassified to reflect
this change. See Note 2 for further discussion. |
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The Executive Committee, consisting of our principal corporate executives, is our chief
operating decision-maker and evaluates performance of our segments and allocates resources based
primarily on operating income. A summary of operating results by segment for the periods ended
September 30 is as follows: |
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2011 |
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2010 |
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Operating |
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Operating |
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| Three Months |
|
Revenue |
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Income |
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Revenue |
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|
Income |
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S&P
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$ |
409.9 |
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|
$ |
169.1 |
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$ |
417.5 |
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$ |
187.3 |
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MH Financial
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348.5 |
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112.6 |
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294.3 |
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85.8 |
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MHE
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937.3 |
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314.7 |
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1,054.7 |
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357.5 |
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I&M
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228.5 |
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51.3 |
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204.1 |
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43.8 |
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Intersegment elimination
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(16.2 |
) 1 |
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— |
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(14.4 |
) 1 |
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— |
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Total operating segments
|
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1,908.0 |
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647.7 |
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1,956.2 |
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674.4 |
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General corporate expense
|
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— |
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(40.9 |
) |
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— |
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|
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(44.4 |
) |
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Total
|
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$ |
1,908.0 |
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|
$ |
606.8 |
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|
$ |
1,956.2 |
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|
$ |
630.0 |
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|
2011 |
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2010 |
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Operating |
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|
Operating |
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| Nine Months |
|
Revenue |
|
|
Income |
|
|
Revenue |
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|
Income |
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S&P
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|
$ |
1,333.1 |
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|
$ |
572.2 |
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|
$ |
1,223.8 |
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$ |
557.5 |
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MH Financial
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1,005.9 |
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|
306.7 |
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|
866.8 |
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240.3 |
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MHE
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1,776.6 |
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281.4 |
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1,936.9 |
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347.3 |
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I&M
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657.6 |
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|
139.1 |
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|
590.4 |
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|
118.0 |
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Intersegment elimination
|
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(46.8 |
)1 |
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— |
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(41.3 |
)1 |
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— |
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Total operating segments
|
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4,726.4 |
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1,299.4 |
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4,576.6 |
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1,263.1 |
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General corporate expense
|
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|
— |
|
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(119.3 |
) |
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— |
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|
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(117.7 |
) |
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Total
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$ |
4,726.4 |
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$ |
1,180.1 |
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$ |
4,576.6 |
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$ |
1,145.4 |
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| 1 |
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Revenue for S&P and expenses for MH Financial include an intersegment
royalty charged to MH Financial for the rights to use and distribute content and data
developed by S&P. |
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See Note 2 — Acquisitions and Divestitures, and Note 11 — Restructuring for actions that
impacted the segment operating results. |
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