Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Share

Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares is increased to include additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Potential common shares consist primarily of stock options, restricted stock and restricted stock units calculated using the treasury stock method. The calculation for basic and diluted EPS is as follows:

(in millions, except per share data)	Years ended December 31,
	2012			2011		2010
Amount attributable to The McGraw-Hill Companies, Inc. common shareholders:
Income from continuing operations	$	676		$	607	$	581
(Loss) income from discontinued operations	(239		)	304		247
Net income attributable to the Company	$	437		$	911	$	828
Basic weighted-average number of common shares outstanding	278.6			298.1		309.4
Effect of stock options and other dilutive securities	6.0			5.5		2.8
Diluted weighted-average number of common shares outstanding	284.6			303.6		312.2
Basic EPS:
Income from continuing operations	$	2.43		$	2.03	$	1.88
(Loss) income from discontinued operations	(0.86		)	1.02		0.80
Net income	$	1.57		$	3.05	$	2.68
Diluted EPS:
Income from continuing operations	$	2.37		$	2.00	$	1.86
(Loss) income from discontinued operations	(0.84		)	1.00		0.79
Net income	$	1.53		$	3.00	$	2.65

There were 1.4 million, 1.6 million and 1.4 million restricted performance shares outstanding as of December 31, 2012, 2011 and 2010, respectively, that 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 years ended December 31, 2012, 2011 and 2010, the number of stock options excluded from the computation was 3.4 million, 10.1 million and 23.2 million, respectively.