Segment and Related Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information

We have four reportable segments: Standard & Poor’s Ratings (“S&P Ratings”), S&P Capital IQ / S&P Indices, C&C and MHE.

• S&P Ratings provides independent global credit ratings, credit risk evaluations, and ratings-related information research to investors, corporations, governments, financial institutions, investment managers and advisers globally.

• S&P Capital IQ / S&P Indices provides comprehensive value-added financial data, information, indices and research services to investors, corporations, governments, financial institutions, investment managers and advisers globally.

• C&C includes business and professional media, offering information, insight and analysis; and consists of business to business companies (including such brands as Platts, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week). In accordance with the presentation of the Broadcasting Group as discontinued operations, the results of operations for all prior periods presented have been reclassified to reflect this change. See Note 3 for further discussion.

• MHE is one of the leading global educational publishers. This segment consists of two operating groups: the Higher Education, Professional and International Group (“HPI”), serving the college, professional, international and adult education markets, and the School Education Group (“SEG”), serving the elementary and high school markets.

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 profit. A summary of operating results by segment for the periods ended September 30 is as follows:

Three Months	2012						2011
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings	$	502		$	209		$	410		$	169
S&P Capital IQ / S&P Indices	393			101			349			113
C&C	239			60			228			51
MHE	836			253			937			315
Intersegment elimination 1	(17		)	—			(16		)	—
Total operating segments	1,953			623			1,908			648
General corporate expense 2	—			(95		)	—			(41		)
Total	$	1,953		$	528		$	1,908		$	607

Nine Months	2012						2011
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings	$	1,451		$	603		$	1,333		$	572
S&P Capital IQ / S&P Indices	1,112			308			1,006			307
C&C	713			195			657			139
MHE	1,606			245			1,777			281
Intersegment elimination 1	(52		)	—			(47		)	—
Total operating segments	4,830			1,351			4,726			1,299
General corporate expense 2	—			(237		)	—			(119		)
Total	$	4,830		$	1,114		$	4,726		$	1,180

¹  Revenue for S&P Ratings and expenses for S&P Capital IQ / S&P Indices include an intersegment royalty charged to S&P Capital IQ / S&P Indices for the rights to use and distribute content and data developed by S&P Ratings.

²  General corporate expense includes Growth and Value Plan costs, which includes restructuring charges of $52 million and $112 million for the three and nine months ended September 30, 2012, respectively.

See Note 3 —Acquisitions and Divestitures and Note 12 —Restructuring for additional actions that impacted the segment operating results.