10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-1023

McGraw Hill Financial, Inc.

(Exact name of registrant as specified in its charter)

New York	13-1026995
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1221 Avenue of the Americas, New York, New York	10020
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 212-512-2000

Title of each class	Name of exchange on which registered
Common Stock — $1 par value	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

YES þ    NO ¨

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

YES ¨    NO þ

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES þ    NO ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

YES þ    NO ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

þ Large accelerated filer	o Accelerated filer	o Non-accelerated filer	o Smaller reporting company
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES ¨    NO þ

The aggregate market value of voting stock held by non-affiliates of the Registrant as of the last business day of the second fiscal quarter ended June 30, 2013, was $14.6 billion, based on the closing price of the common stock as reported on the New York Stock Exchange of $53.19 per common share. For purposes of this calculation, it is assumed that directors, executive officers and beneficial owners of more than 10% of the registrant outstanding stock are affiliates. The number of shares of common stock of the Registrant outstanding as of January 31, 2014 was 271.0 million shares.

Part III incorporates information by reference from the definitive proxy statement for the 2014 annual meeting of shareholders.

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TABLE OF CONTENTS

	PART I
Item		Page
1	Business	5
1a.	Risk Factors	9
1b.	Unresolved Staff Comments	12
2	Properties	12
3	Legal Proceedings	12
4	Mine Safety Disclosures	12
	Executive Officers of the Registrant	13
	PART II
5	Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	14
6	Selected Financial Data	17
7	Management’s Discussion and Analysis of Financial Condition and Results of Operation	18
7a.	Quantitative and Qualitative Disclosures about Market Risk	45
8.	Consolidated Financial Statements and Supplementary Data	46
9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	88
9a.	Controls and Procedures	88
9b.	Other Information	88
	PART III
10	Directors, Executive Officers and Corporate Governance	89
11	Executive Compensation	89
12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	89
13	Certain Relationships and Related Transactions, and Director Independence	89
14	Principal Accounting Fees and Services	89
	PART IV
15	Exhibits and Financial Statement Schedules	91
	Schedule II — Valuation and Qualifying Accounts	92
	Signatures	93
	Exhibit Index and Exhibits	94

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FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements, including without limitation statements relating to our businesses and our prospects, new products, sales, expenses, tax rates, cash flows, and operating and capital requirements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance and are based on assumptions management believes are reasonable at the time they are made.

Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “plan,” “estimate,” “project,” “target,” “anticipate,” “intend,” “may,” “will,” “continue” and other words of similar meaning in connection with a discussion of future operating or financial performance. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict; therefore, actual outcomes and results could differ materially from what is expected or forecasted. These risks and uncertainties include, among others:

• worldwide economic, financial, political and regulatory conditions;

• currency and foreign exchange volatility;

• the effect of competitive products and pricing;

• the level of success of new product development and global expansion;

• the level of future cash flows;

• the levels of capital investments;

• income tax rates;

• restructuring charges;

• the health of debt and equity markets, including credit quality and spreads, the level of liquidity and future debt issuances;

• the level of interest rates and the strength of the capital markets in the U.S. and abroad;

• the demand and market for debt ratings, including collateralized debt obligations, residential and commercial mortgage and asset-backed securities and related asset classes;

• the state of the credit markets and their impact on Standard & Poor’s Ratings and the economy in general;

• the regulatory environment affecting Standard & Poor’s Ratings and our other businesses;

• the likely outcome and impact of litigation and investigations on our operations and financial condition;

• the level of merger and acquisition activity in the U.S. and abroad;

• continued investment by the construction, automotive and computer industries;

• the strength and performance of the domestic and international automotive markets;

• the volatility of the energy marketplace;

• and the contract value of public works, manufacturing and single-family unit construction.

We caution readers not to place undue reliance on forward-looking statements.

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PART I

Item 1. Business

Overview

McGraw Hill Financial, Inc. (together with its consolidated subsidiaries, the “Company,” the “Registrant,” “we,” “us” or “our”) is a leading ratings, benchmarks and analytics provider serving the global capital, commodities and commercial markets. The capital markets include asset managers, banks, exchanges, issuers and financial advisors; the commodities markets include producers, traders and intermediaries within energy, metals, and agriculture; and the commercial markets include professionals and corporate executives within automotive, construction and marketing / research information services. We serve our global customers through a broad range of products and services available through both third-party and proprietary distribution channels.

On March 22, 2013, we completed the sale of McGraw-Hill Education ("MHE") to investment funds affiliated with Apollo Global Management, LLC for a purchase price of $2.4 billion in cash. We recorded an after-tax gain on the sale of $589 million, which is included in income from discontinued operations, net of tax in the consolidated statement of income for the year endedDecember 31, 2013. We have used a portion of the after-tax proceeds from the sale to pay down short-term debt, for the special dividend paid in 2012, and to continue share repurchases. We intend to continue to use a portion of the after-tax proceeds to make selective acquisitions and investments.

The completion of the sale was a key milestone in our Growth and Value Plan that we began in September of 2011. In addition to the sale, we were also successful in other Growth and Value Plan objectives, including, increased shareholder return, investments in targeted financial assets, divested selected non-core assets and reductions in our real estate portfolio.

Increased Shareholder Return

During the three years ended December 31, 2013, we have returned $4.4 billion to our shareholders through a combination of share repurchases, our quarterly dividend and a special dividend.

We completed share repurchases of $2.8 billion and distributed regular quarterly dividends totaling approximately $900 million during the three years ended December 31, 2013. On December 6, 2012, our Board of Directors approved a special dividend in the amount of $2.50 per share on our common stock, payable on December 27, 2012 to shareholders of record on December 18, 2012. This returned an additional approximately $700 million to our shareholders. Also, on January 29, 2014, the Board of Directors approved an increase in the quarterly common stock dividend from $0.28 per share to $0.30 per share.

Investments in Targeted Financial Assets / Divested Selected Non-Core Assets

We continued to execute our strategy of exiting non-core assets while investing for growth in markets that have size and scale.

During 2013, we acquired approximately 11 million equity shares representing 15.07% of CRISIL's total outstanding equity shares for $214 million, increasing our ownership percentage in CRISIL to 67.84% from 52.77%.

In 2013, we also completed certain dispositions of our non-core assets that allow us to apply greater focus on our high-growth, high-margin benchmark businesses.

• Commodities & Commercial— we completed the sale of Aviation Week to Penton, a privately held business information company;

• S&P Capital IQ— we completed the sale of Financial Communications as well as the closure of several non-core businesses.

During 2012, we completed several acquisitions that we believe position us for long-term growth across all our segments.

• S&P Dow Jones Indices— our transaction with CME Group, Inc. and CME Group Index Services LLC to form a new company, S&P Dow Jones Indices LLC;

• S&P Capital IQ— Credit Market Analysis Limited, a provider of independent data concerning the over-the-counter markets; QuantHouse, an independent global provider of end-to-end systematic low-latency market data solutions; and R² Technologies, a provider of advanced risk and scenario-based analytics;

• Commodities & Commercial— Kingsman SA, a privately-held, Switzerland-based provider of price information and analytics for the global sugar and biofuels markets;

• Standard & Poor's Ratings— Coalition Development Ltd., a privately-held U.K. analytics company.

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On December 30, 2011, we completed the sale of our Broadcasting Group, previously included in our Commodities & Commercial segment.

On July 11, 2013, our Board of Directors elected Douglas Peterson, President and Chief Executive Officer of the Company, effective November 1, 2013. He was also elected a member of the Company's Board of Directors, effective immediately. Mr. Peterson was President of Standard & Poor's Ratings. He succeeded Harold (Terry) McGraw III, who was Chairman, President and Chief Executive Officer of the Company. Mr. McGraw has continued as Chairman of the Board of Directors.

Our Businesses

Our operations consist of four reportable segments: Standard & Poor’s Ratings (“S&P Ratings”), S&P Capital IQ, S&P Dow Jones Indices ("S&P DJ Indices") and Commodities & Commercial (“C&C”).

S&P Ratings

S&P Ratings is an independent provider of credit ratings, research and analytics, offering investors and market participants information, ratings and benchmarks. Credit ratings are one of several tools that investors can use when making decisions about purchasing bonds and other fixed income investments. They are opinions about credit risk and our ratings express our opinion about the ability and willingness of an issuer, such as a corporation or state or city government, to meet its financial obligations in full and on time. Our credit ratings can also relate to the credit quality of an individual debt issue, such as a corporate or municipal bond, and the relative likelihood that the issuer may default.

With offices in over 23 countries around the world, S&P Ratings is an important part of the world's financial infrastructure and has played a leading role for over 150 years in providing investors with information and independent benchmarks for their investment and financial decisions as well as access to the capital markets. The key constituents S&P Ratings serves are investors; corporations; governments; municipalities; commercial and investment banks; insurance companies; asset managers; and other debt issuers.

As the capital markets continue to evolve, S&P Ratings is well-positioned to capitalize on opportunities driven by continuing regulatory changes through its global network, well-established position in corporate markets and strong investor reputation.

S&P Ratings differentiates its revenue between transaction and non-transaction. Transaction revenue primarily includes fees associated with:

• ratings related to new issuance of corporate and government debt instruments, and structured finance debt instruments;

• bank loan ratings; and

• corporate credit estimates, which are intended, based on an abbreviated analysis, to provide an indication of our opinion regarding creditworthiness of a company which does not currently have an S&P Ratings credit rating.

Non-transaction revenue primarily includes fees for surveillance of a credit rating, annual fees for customer relationship-based pricing programs and fees for entity credit ratings.

S&P Capital IQ

S&P Capital IQ is a global provider of digital and traditional financial research and analytical tools for capital market participants. It deploys the latest technology-driven strategies to deliver to customers an integrated portfolio of cross-asset analytics, desktop services, and investment information in the rapidly growing financial information, data and analytics market. The key constituents S&P Capital IQ serves are asset managers; investment banks; investors; brokers; financial advisors; investment sponsors; and companies’ back-office functions, including compliance, operations, risk, clearance, and settlement.

S&P Capital IQ's portfolio of capabilities are designed to help the financial community track performance, generate better investment returns (alpha), identify new trading and investment ideas, perform risk analysis, and develop mitigation strategies. Specific capabilities include:

• Desktop Solutions — a product suite that provides data, analytics and third-party research for global finance professionals, which include Capital IQ and MarketScope Advisor;

• Enterprise Solutions — integrated bulk data feeds that can be customized, which include QuantHouse, S&P Securities Evaluations, CUSIP and Compustat;

• Ratings Intellectual Property ("IP") — commercial arm that sells Standard & Poor's Ratings' IP, which includes RatingsDirect® and RatingsXpress®; and

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• Proprietary Research — comprehensive source of market research for financial professionals, which includes Leveraged Commentary & Data, Global Market Intelligence and multi-asset-class research.

S&P Dow Jones Indices

S&P DJ Indices is a global index provider that maintains a wide variety of investable and benchmark indices to meet an array of investor needs. S&P DJ Indices’ mission is to provide benchmarks to help with decision making, create transparent indices, collaborate with the financial community to create innovative products and provide investors with tools to monitor world markets.

S&P DJ Indices generates subscription revenue but primarily derives revenue from non-subscription products based on the S&P and Dow Jones Indices. Specifically, S&P DJ Indices generate revenue from the following sources:

• Investment vehicles — such as, exchange traded funds (“ETFs”), which are based on the S&P and Dow Jones Indices and generate revenue through fees based on assets and underlying funds;

• Listed derivatives — which generate royalties based on trading volumes of derivatives contracts listed on various exchanges;

• Index-related licensing fees — which are either fixed or variable annual and per-issue fees for over-the-counter derivatives and retail-structured products; and

• Data subscription — which support index fund management, portfolio analytics and research.

Commodities & Commercial

C&C consists of business-to-business companies specializing in the commodities and commercial markets that deliver their customers access to high-value information, data, analytic services and pricing benchmarks. C&C includes the following brands:

• Platts — provides essential price data, analytics, and industry insight that enable commodities markets to perform with greater transparency and efficiency;

• J.D. Power — provides essential consumer intelligence to help businesses measure, understand, and improve the key performance metrics that drive growth and profitability; and

• McGraw Hill Construction — provides essential data, news, insights, and intelligence to better inform construction professionals' decisions and strengthen their market position.

The C&C business is driven by the need for high-value information and transparency in a variety of industries. C&C seeks to deliver premier content that is deeply embedded in customer workflows and decision making processes. Our commodities business serves producers, traders, intermediaries within energy, metals and agriculture markets. Our commercial business serves professionals and executives within automotive, construction and marketing / research services markets.

C&C's revenue is generated primarily through the following sources:

• Subscription revenue — subscriptions to our real-time news, market data and price assessments, along with other print and digital information products, primarily serving the energy and construction markets and the automotive industry; and

• Non-subscription revenue — primarily from licensing of our proprietary market price data and price assessments to commodity exchanges, syndicated and proprietary research studies, conference sponsorship, consulting engagements and events.

Our Strategy

We strive to be the leading provider of essential intelligence such as ratings, benchmarks and analytics to the global capital and commodities markets. We also seek to leverage the strength of our globally recognized brands and content to promote sustainable growth by bringing transparency and independent insights to the markets we serve.

With the successful completion of the Growth & Value Plan, we are aligning our efforts against two key strategic priorities, growth and performance.

We will strive to deliver on our strategic priorities through a clear set of growth drivers which are underpinned by excellence in management and execution.

We believe the key drivers of our growth are:

• Serving our customers with innovative, must-have solutions;

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• Leveraging our unique portfolio of powerful brands and distinctive opportunities in the financial and commodity markets; and

• Winning as a dynamic, global company.

We believe the key elements of management and execution are:

• Ensuring quality and excellence in everything we do;

• Attracting and developing top-performing people; and

• Delivering together as one connected company.

Integrating and leveraging our key capabilities will also be critical to improving performance and delivering against our strategic priorities. We will strive to enhance analytical and product quality through technology, data and process improvements. Our businesses will also strive to continue to extend efforts in external outreach and advocacy, control and compliance. We will seek to further engage the customer by strengthening our sales, customer service, customer management processes and global operations. Finally, we will look to continue to put efforts and resources into developing high-performing talent driving to a common purpose.

We believe our strategic priorities are designed to deliver global growth in both new and existing markets. We intend to expand our coverage of core customer segments and markets by leveraging existing products and capabilities while also developing new products and capabilities to meet evolving customer needs in new markets.

There can be no assurance that we will achieve success in implementing any one or more of these strategies as a variety of factors could unfavorably impact operating results, including prolonged difficulties in the global credit markets and a change in the regulatory environment affecting our businesses.

Further projections and discussion on our 2014 outlook for our segments can be found within “Results of Operations”.

Segment and Geographic Data

The relative contribution of our operating segments to operating revenue, operating profit, long-lived assets and geographic area for the three years ended December 31, 2013 is included in Note 11 – Segment and Geographic Information to the consolidated financial statements under Item 8, Consolidated Financial Statements and Supplementary Data, in this Form 10-K.

Our Personnel

As of December 31, 2013, we have approximately 17,000 employees located worldwide, of which approximately 5,700 were employed in the United States.

Available Information

The Company's investor kit includes the current Annual Report, Proxy Statement, Form 10-Qs, Form 10-K, and the current earnings release. For online access to the Digital Investor Kit, go to http://investor.mhfi.com. Requests for printed copies, free of charge, can be e-mailed to investor.relations@mhfi.com or mailed to Investor Relations, McGraw Hill Financial, Inc., 1221 Avenue of the Americas, New York, NY 10020-1095. Interested parties can also call Investor Relations toll-free at 866-436-8502 (domestic callers) or 212-512-2192 (international callers).

Access to more than 10 years of the Company's filings made with the Securities and Exchange Commission is available through the Company's Investor Relations Web site. Go to http://investor.mhfi.com and click on the SEC Filings link. In addition, these filings are available to the public on the Commission's Web site through their EDGAR filing system at www.sec.gov. Interested parties may also read and copy materials that the Company has filed with the Securities and Exchange Commission (“SEC”) at the SEC's public reference room located at 450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549. Please call the Commission at 1-800-SEC-0330 for further information on the public reference room.

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Item 1a. Risk Factors

We are providing the following cautionary statements which identify all known material risks, uncertainties and other factors that could cause our actual results to differ materially from historical and expected results.

We operate in the capital, commodities and commercial markets. The capital markets include asset managers, banks, exchanges, issuers and financial advisors; the commodities markets include producers, traders and intermediaries within energy, metals, and agriculture; and the commercial markets include professionals and corporate executives within construction and marketing / research information services. Certain risk factors are applicable to individual markets while other risk factors are applicable company-wide.

Market Risks

Introduction of new products, services or technologies could impact our profitability

• We operate in highly competitive markets that continue to change to adapt to customer needs. In order to maintain a competitive position, we must continue to invest in new offerings and new ways to deliver our products and services.

◦ These investments may not be profitable or may be less profitable than what we have experienced historically.

• We could experience threats to our existing businesses from the rise of new competitors due to the rapidly changing environment within which we operate.

• We rely on our information technology environment and certain critical databases, systems and applications to support key product and service offerings. We believe we have appropriate policies, processes and internal controls to ensure the stability of our information technology, provide security from unauthorized access to our systems and maintain business continuity, but our business could be subject to significant disruption and our operating results may be adversely impacted by unanticipated system failures, data corruption or unauthorized access to our systems.

Exposure to litigation could have a material effect on our financial position and results of operations

• We are involved in legal actions and claims arising from our business practices, as discussed under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in this Form 10-K and in Note 12 – Commitments and Contingencies to the consolidated financial statements under Item 8, Consolidated Financial Statements and Supplementary Data, in this Form 10-K, and face the risk that additional actions and claims will be filed in the future. Due to the inherent uncertainty of the litigation process, the resolution of any actions or claims that may be brought in the future, or the change in applicable legal standards could have a material effect on our financial position and results of operations.

Changes in the volume of securities issued and traded in domestic and/or global capital markets and changes in interest rates and volatility in the financial markets could have a material impact on our results of operations

• Unfavorable financial or economic conditions that either reduce investor demand for debt securities or reduce issuers' willingness or ability to issue such securities could reduce the number and dollar volume of debt issuance for which S&P Ratings provides credit ratings.

• Unfavorable financial or economic conditions could also adversely impact S&P DJ Indices, which receives a portion of its revenue from fees based on derivatives trading volumes and index-based ETF assets under management.

• Increases in interest rates or credit spreads, volatility in financial markets or the interest rate environment, significant political or economic events, defaults of significant issuers and other market and economic factors may negatively impact the general level of debt issuance, the debt issuance plans of certain categories of borrowers, the level of derivatives trading and/or the types of credit-sensitive products being offered.

• Any weakness in the macroeconomic environment could constrain customer budgets across the markets we serve, potentially leading to a reduction in their employee headcount and a decrease in demand for our subscription-based products.

Increased domestic and foreign regulation may adversely impact our businesses

• Our results could be adversely affected because of public statements or actions by market participants, government officials and others who may be advocates of increased regulation or regulatory scrutiny.

• The financial services industry is subject to the potential for increasing regulation in the United States and abroad. The businesses conducted by S&P Ratings are in certain cases regulated under the U.S. Credit Rating Agency Reform Act of

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2006, the U.S. Securities Exchange Act of 1934, and/or the laws of the states or other jurisdictions in which they conduct business.

◦ In the past several years, the U.S. Congress, the SEC and the European Commission, through regulators including the International Organization of Securities Commissions and the European Securities and Markets Authority, as well as regulators in other countries in which S&P Ratings operates have been reviewing the role of rating agencies and their processes and the need for greater oversight or regulations concerning the issuance of credit ratings or the activities of credit rating agencies.

▪ We do not believe that the laws, regulations and rules that have been adopted as part of this process will have a material adverse effect on our financial condition or results of operations.

◦ Other laws, regulations and rules relating to credit rating agencies are being considered by local, national, foreign and multinational bodies and are likely to continue to be considered in the future, including provisions seeking to reduce regulatory and investor reliance on credit ratings, rotation of credit rating agencies and liability standards applicable to credit rating agencies. The impact on us of the adoption of any such laws, regulations or rules remains uncertain, but could increase the costs and legal risks relating to S&P Rating's rating activities.

◦ Additional information regarding rating agencies is provided under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in this Form 10-K.

• Our commodities business is subject to the potential for increasing regulatory review in the United States and abroad.

◦ In the fall of 2011, the G20 Cannes Final Summit Declaration called upon the International Organization of Securities Commissions ("IOSCO"), International Energy Forum, International Energy Agency and the Organization of Petroleum Exporting Countries to prepare recommendations to improve the functioning and oversight of price reporting companies by mid-2012.

◦ In a meeting with representatives of IOSCO in January 2012, principals at IOSCO advised Platts management that among the recommendations the regulatory group is considering is establishment of formal oversight of price reporting organizations and their processes, or a self-regulatory oversight regime.

◦ In addition, new rules adopted by the U.S. Commodity Futures Trading Commission in 2013 affecting transactions in oil derivatives may hinder Platts in relation to its administration of the Platts electronic window (eWindow) as a means of determining price assessments in oil. Similar new rules and regulations in Europe are currently under consideration, albeit on a slower time frame.

◦ On October 5, 2012, IOSCO issued its final report to the G-20, including Principles for Oil Price Reporting Agencies, which sets out principles IOSCO states are intended to enhance the reliability of oil price assessments that are referenced in derivative contracts subject to regulation by IOSCO members. Platts undertook steps to align its operations with the Principles including an assurance review by an external auditor and after doing so believes that the Principles will not have a significant negative impact on its ongoing business operations.

◦ We do not believe that any new regulatory or self-regulatory oversight regime would have a material adverse effect on our financial condition or results of operations.

• The S&P DJ Indices business is subject to the potential for increasing regulatory review in the United States and abroad.

◦ In July 2013, IOSCO issued its Principles for Financial Benchmarks, which is a set of principles intended to promote the reliability of Benchmark determinations, and address governance, Benchmark quality and accountability mechanisms, including with regard to the indices published by S&P DJ Indices.

◦ S&P DJ Indices is currently undertaking steps to ensure that its operations are aligned with the IOSCO Financial Benchmark Principles.

◦ We do not believe that any new regulatory or self-regulatory oversight regime would have a material adverse effect on our financial condition or results of operations.

Operating Risks

A significant increase in operating costs and expenses could have a material adverse effect on our profitability

• Our major expenses include employee compensation and capital investments.

◦ We offer competitive salary and benefit packages in order to attract and retain the quality employees required to grow and expand our businesses. Compensation costs are influenced by general economic factors, including

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those affecting the cost of health insurance and postretirement benefits, and any trends specific to the employee skill sets we require.

◦ We make significant investments in information technology data centers and other technology initiatives. Although we believe we are prudent in our investment strategies and execution of our implementation plans, there is no assurance as to the ultimate recoverability of these investments.

Our ability to protect our intellectual property rights could impact our competitive position

• Our products contain intellectual property delivered through a variety of media, including print and digital. Our ability to achieve anticipated results depends in part on our ability to defend our intellectual property against infringement. Our operating results may be adversely affected by inadequate or changing legal and technological protections for intellectual property and proprietary rights in some jurisdictions and markets.

Risk of doing business abroad

• As we continue to expand our operations overseas, we face the increased risks of doing business abroad, including inflation, fluctuation in interest rates and currency exchange rates, changes in applicable laws and regulatory requirements, export and import restrictions, tariffs, nationalization, expropriation, limits on repatriation of funds, civil unrest, terrorism, unstable governments and legal systems, and other factors. Adverse developments in any of these areas could cause actual results to differ materially from historical and/or expected operating results.

Increased competition could result in a loss of market share or revenue

• The markets for credit ratings, financial research, investment and advisory services, and index-based products are competitive. S&P Ratings, S&P Capital IQ and S&P DJ Indices compete domestically and internationally on the basis of a number of factors, including the quality of its ratings, research and advisory services, client service, reputation, price, geographic scope, range of products and technological innovation.

• While our businesses face competition from traditional content and analytics providers, we also face competition from non-traditional providers such as exchanges, asset managers, investment banks and technology-led companies that are adding content and analytics capabilities to their core businesses.

• In addition, in some of the countries in which S&P Ratings competes, governments may provide financial or other support to locally-based rating agencies and may from time to time establish official credit rating agencies, credit ratings criteria or procedures for evaluating local issuers.

Consolidation of customers as well as staffing levels across our customer base could impact our available markets and revenue growth

• Our businesses within S&P Capital IQ and S&P DJ Indices have a customer base which is largely comprised of members from the financial services industry. The current challenging business environment and the consolidation of customers resulting from mergers and acquisitions in the financial services industry can result in reductions in the number of firms and workforce which can impact the size of our customer base.

Changes to our financial processing systems and the transition of certain of our support functions to selected outsource providers may adversely impact our business

• We are in the process of changing certain of our financial processing systems to an enterprise-wide systems solution. There can be no certainty that these initiatives will deliver the expected benefits. The failure to implement these changes successfully may impact our ability to process transactions accurately and efficiently and could lead to business disruption.

• In addition, we have outsourced certain support functions to third-party service providers to achieve cost savings and efficiencies. If the service providers to which we have outsourced these functions to do not perform effectively, we may not be able to achieve the expected cost savings and, depending on the function involved, we may experience business disruption, processing inefficiencies, or harm employee morale.

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Item 1b. Unresolved Staff Comments

None.

Item 2. Properties

Our corporate headquarters are located in leased premises located at 1221 Avenue of the Americas, New York, NY 10020. We lease office facilities at 96 locations; 35 are in the United States. In addition, we own real property at 6 locations, of which 2 are in the United States. Our properties consist primarily of office space used by each of our segments. We believe that all of our facilities are well maintained and are suitable and adequate for our current needs.

Item 3. Legal Proceedings

Information on our legal proceedings in Note 12 – Commitments and Contingencies under Item 8, Consolidated Financial Statements and Supplementary Data, in this Form 10-K.

Item 4. Mine Safety Disclosures

Not applicable.

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Executive Officers of the Registrant

Name	Age	Position
Douglas L. Peterson	55	President and Chief Executive Officer
Jack F. Callahan, Jr.	55	Executive Vice President and Chief Financial Officer
John L. Berisford	50	Executive Vice President, Human Resources
D. Edward Smyth	64	Executive Vice President, Corporate Affairs and Executive Assistant
		to the President and Chief Executive Officer
Kenneth M. Vittor	64	Executive Vice President and General Counsel

The following executive officers have been full-time employees and officers for less than five years: Mr. Peterson, Mr. Callahan and Mr. Berisford.

Mr. Peterson, prior to becoming President and Chief Executive Officer on November 1, 2013, was President of Standard & Poor's Ratings Services since 2011. Prior to that, he was Chief Operating Officer of Citibank, NA.

Mr. Callahan, prior to becoming an officer on December 6, 2010, was Chief Financial Officer of Dean Foods. Prior to that, Mr. Callahan held senior management positions at PepsiCo, including Chief Financial Officer of Frito-Lay International.

Mr. Berisford, prior to becoming an officer on January 3, 2011, was Senior Vice President, Human Resources, for Pepsi Beverages Company. Prior to that, he held senior Human Resources positions with Pepsi Bottling Group.

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PART II

Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Price Range of Common Stock

On January 31, 2014, the closing price of our common stock was $76.04 per share as reported on the New York Stock Exchange (“NYSE”) under the ticker symbol “MHFI”. McGraw Hill Financial began trading under its new ticker symbol "MHFI" on May 14, 2013. Previously, the Company's common stock traded on the NYSE under the ticker symbol "MHP". The approximate number of record holders of our common stock as of January 31, 2014 was 3,672. The high and low sales prices of McGraw Hill Financials’ common stock on the NYSE for the past two fiscal years are as follows:

	2013	2012
First Quarter	$58.62 - $42.07	$48.60 - $44.67
Second Quarter	56.55 - 50.51	50.00 - 42.02
Third Quarter	66.96 - 53.45	55.19 - 44.19
Fourth Quarter	78.81 - 65.34	57.44 - 49.56
Year	78.81 - 42.07	57.44 - 42.02

The performance graph below compares our cumulative total shareholder return during the previous five years with a performance indicator of the overall market (i.e., S&P 500), and our peer group. The Peer Group consists of the following companies: Thomson Reuters Corporation, Thomson Reuters PLC (through September 2009), Reed Elsevier NV, Reed Elsevier PLC, Pearson PLC, Moody’s Corporation and Wolters Kluwer. Returns assume $100 invested on December 31, 2008 and total return includes reinvestment of dividends through December 31, 2013.

We expect to continue our policy of paying regular cash dividends, although there is no assurance as to future dividend payments because they depend on future earnings, capital requirements and our financial condition. Regular quarterly dividends per share of our common stock for 2013 and 2012 were as follows:

	2013		2012
$0.280 per quarter in 2013	$	1.12
$0.255 per quarter in 2012			$	1.02

In addition, as part of our Growth and Value Plan to generate shareholder value, we paid a special dividend of $2.50 per share on our common stock on December 27, 2012 to shareholders of record on December 18, 2012.

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On January 29, 2014, the Board of Directors approved an increase in the quarterly common stock dividend from $0.28 per share to $0.30 per share.

Transfer Agent and Registrar for Common Stock

Computershare is the transfer agent for McGraw Hill Financial. Computershare maintains the records for the Company's registered shareholders and can assist with a variety of shareholder related services.

Shareholder correspondence should be mailed to:

Computershare

P.O. Box 30170

College Station, TX 77842-3170

Overnight correspondence should be mailed to:

Computershare

211 Quality Circle, Suite 210

College Station, TX 77845

Investor Centre™ website to view and manage shareholder account online: www.computershare.com/investor

For shareholder assistance:

In the U.S. and Canada:	888-201-5538
Outside the U.S. and Canada:	201-680-6578
TDD for the hearing impaired:	800-231-5469
TDD outside the U.S. and Canada:	201-680-6610
E-mail address:	shareholder@computershare.com
Shareholder online inquiries	https://www-us.computershare.com/investor/Contact

Repurchase of Equity Securities

On December 4, 2013, the Board of Directors approved a new stock repurchase program authorizing the purchase of up to 50 million shares (the "2013 Repurchase Program"), which was approximately 18% of the company's outstanding shares at that time. During the fourth quarter of 2013, we did not repurchase any shares under the 2013 Repurchase Program and, as of December 31, 2013, 50 million shares remained under the 2013 Repurchase Program.

During the fourth quarter of 2013, we repurchased 1.9 million shares under the 2011 stock repurchase program which completed the outstanding authorization with this program. This repurchase program, approved by the Board of Directors on June 29, 2011, authorized the purchase of up to 50 million shares, which was approximately 17% of the total shares of our outstanding common stock at that time.

Repurchased shares may be 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. The 2013 Repurchase Program has no expiration date and purchases under this program may be made from time to time on the open market and in private transactions, depending on market conditions.

The following table provides information on our purchases of our outstanding common stock during the fourth quarter of 2013 pursuant to the 2011 and 2013 Repurchase Programs (column c). In addition to these purchases, the number of shares in column (a) include: 1) shares of common stock that are tendered to us to satisfy our employees’ tax withholding obligations in connection with the vesting of awards of restricted shares (we repurchase such shares based on their fair market value on the vesting date), and 2) shares deemed surrendered to us to pay the exercise price and to satisfy our employees’ tax withholding obligations in connection with the exercise of employee stock options. There were no other share repurchases during the quarter outside the repurchases noted below.

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(amounts in millions, except per share price)

Period	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Programs	(d) Maximum Number of Shares that may yet be Purchased Under the Programs
Oct. 1 — Oct. 31, 2013	0.3	$	70.58	0.3	1.6
Nov. 1 — Nov. 30, 2013	0.7	71.63		0.7	0.9
Dec. 1 — Dec. 31, 2013	1.0	74.73		0.9	50.0
Total — Qtr	2.0	$	73.07	1.9	50.0

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Item 6. Selected Financial Data

(in millions, except per share data)	2013				2012				2011				2010				2009
Income statement data:
Revenue	$	4,875			$	4,450			$	3,954			$	3,639			$	3,483
Operating profit	1,405				1,211				1,077				1,026				953
Income from continuing operations before taxes on income	1,346			1	1,130			2	1,000			3	943			4	876			5
Provision for taxes on income	443				404				374				344				315
Net income from continuing operations attributable to McGraw Hill Financial, Inc.	812				676				607				582				546
Earnings per share from continuing operations attributable to the McGraw Hill Financial, Inc. common shareholders:
Basic	2.96				2.43				2.03				1.88				1.75
Diluted	2.90				2.37				2.00				1.86				1.74
Dividends per share	1.12				1.02				1.00				0.94				0.90
Special dividend declared per common share					2.50
Operating statistics:
Return on average equity 6	134.2		%		40.5		%		48.2		%		40.4		%		45.7		%
Income from continuing operations before taxes on income as a percent of revenue from continuing operations	27.6		%		25.4		%		25.3		%		25.9		%		25.1		%
Net Income from continuing operations as a percent of revenue from continuing operations	18.5		%		16.3		%		15.8		%		16.5		%		16.1		%
Balance sheet data: 7
Working capital	$	564			$	(1,044	)		$	(845	)		$	262			$	2
Total assets	6,061				5,122				4,112				4,664				4,010
Total debt	799				1,256				1,198				1,198				1,198
Redeemable noncontrolling interest	810				810				—				—				—
Equity	1,344				840				1,584				2,292				1,929
Number of employees	17,000				16,600				16,300				14,400				14,700

¹ Includes the impact of the following items: $77 million pre-tax legal settlements, $64 million charge for Growth and Value Plan costs, a $36 million non-cash impairment charge related to the facilities and associated infrastructure of one of our data centers that we are in the process of selling, a $28 million restructuring charge in the fourth quarter primarily related to severance, $13 million related to terminating various leases as we reduce our real estate portfolio and a $24 million net gain from our dispositions.

²  Includes the impact of the following items: $135 million charge for Growth and Value Plan costs, a $68 million restructuring charge, transaction costs of $15 million for our S&P Dow Jones Indices LLC joint venture, an $8 million charge related to a reduction in our lease commitments, partially offset by a vacation accrual reversal of $52 million.

³  Includes the impact of a $32 million restructuring charge and a $10 million charge for Growth and Value Plan costs.

⁴  Includes the impact of the following items: a $16 million charge for subleasing excess space in our New York facilities, an $11 million restructuring charge and a $7 million gain on the sale of certain equity interests at S&P Ratings.

⁵  Includes the impact of the following items: a $14 million loss on the sale of Vista Research, Inc., an $11 million gain on the sale of BusinessWeek anda $4 million net restructuring charge.

⁶  Includes the impact of the gain on sale of McGraw-Hill Eduction in 2013 and the gain on sale of the Broadcasting Group in 2011.

⁷  Excludes discontinued operations.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management Discussion and Analysis (“MD&A”) provides a narrative of the results of operations and financial condition of McGraw Hill Financial, Inc. (together with its consolidated subsidiaries, the “Company,” “we,” “us” or “our”) for the years ended December 31, 2013 and 2012, respectively. The MD&A should be read in conjunction with the consolidated financial statements and accompanying notes included in this Form 10-K for the year ended December 31, 2013, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The MD&A includes the following sections:

• Overview

• Results of Operations

• Liquidity and Capital Resources

• Reconciliation of Non-GAAP Financial Information

• Critical Accounting Estimates

• Recently Issued or Adopted Accounting Standards

Certain of the statements below are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, any projections of future results of operations and cash flows are subject to substantial uncertainty. See Forward-Looking Statements on page 4 of this report.

OVERVIEW

We are a leading ratings, benchmarks and analytics provider serving the global capital, commodities and commercial markets. The capital markets include asset managers, banks, exchanges, issuers and financial advisors; the commodities markets include producers, traders and intermediaries within energy, metals, and agriculture; and the commercial markets include professionals and corporate executives within automotive, construction and marketing / research information services.

Our operations consist of four reportable segments: Standard & Poor’s Ratings (“S&P Ratings”), S&P Capital IQ, S&P Dow Jones Indices ("S&P DJ Indices") and Commodities & Commercial (“C&C”).

• S&P Ratings is an independent provider of credit ratings, research and analytics, offering investors and market participants information, ratings and benchmarks.

• S&P Capital IQ is a global provider of multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services.

• S&P DJ Indices is a global index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors.

• C&C consists of business-to-business companies specializing in commercial and commodities markets that deliver their customers access to high-value information, data, analytic services and pricing benchmarks.

On March 22, 2013, we completed the sale of McGraw-Hill Education ("MHE") to investment funds affiliated with Apollo Global Management, LLC for a purchase price of $2.4 billion in cash. We recorded an after-tax gain on the sale of $589 million, which is included in income from discontinued operations, net of tax in the consolidated statement of income for the year endedDecember 31, 2013. We have used a portion of the after-tax proceeds from the sale to pay down short-term debt, for the special dividend paid in 2012, and to continue share repurchases. We intend to continue to use a portion of the after-tax proceeds to make selective acquisitions and investments.

The completion of the sale was a key milestone in our Growth and Value Plan that we began in September of 2011. In addition to the sale, we were also successful in other Growth and Value Plan objectives, including, increased shareholder return, investments in targeted financial assets, divested selected non-core assets and reductions in our real estate portfolio.

Increased Shareholder Return

During the three years ended December 31, 2013, we have returned $4.4 billion to our shareholders through a combination of share repurchases, our quarterly dividend and a special dividend.

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We completed share repurchases of $2.8 billion and distributed regular quarterly dividends totaling approximately $900 million during the three years ended December 31, 2013. On December 6, 2012, our Board of Directors approved a special dividend in the amount of $2.50 per share on our common stock, payable on December 27, 2012 to shareholders of record on December 18, 2012. This returned an additional approximately $700 million to our shareholders. Also, on January 29, 2014, the Board of Directors approved an increase in the quarterly common stock dividend from $0.28 per share to $0.30 per share.

Investments in Targeted Financial Assets / Divested Selected Non-Core Assets

We continued to execute our strategy of exiting non-core assets while investing for growth in markets that have size and scale.

During 2013, we acquired approximately 11 million equity shares representing 15.07% of CRISIL's total outstanding equity shares for $214 million, increasing our ownership percentage in CRISIL to 67.84% from 52.77%.

In 2013, we also completed certain dispositions of our non-core assets that allow us to apply greater focus on our high-growth, high-margin benchmark businesses.

• C&C— we completed the sale of Aviation Week to Penton, a privately held business information company;

• S&P Capital IQ— we completed the sale of Financial Communications as well as the closure of several non-core businesses.

During 2012, we completed several acquisitions that we believe position us for long-term growth across all our segments.

• S&P DJ Indices— our transaction with CME Group, Inc. and CME Group Index Services LLC to form a new company, S&P Dow Jones Indices LLC;

• S&P Capital IQ— Credit Market Analysis Limited, a provider of independent data concerning the over-the-counter markets; QuantHouse, an independent global provider of end-to-end systematic low-latency market data solutions; and R² Technologies, a provider of advanced risk and scenario-based analytics;

• C&C— Kingsman SA, a privately-held, Switzerland-based provider of price information and analytics for the global sugar and biofuels markets;

• S&P Ratings— Coalition Development Ltd., a privately-held U.K. analytics company.

On December 30, 2011, we completed the sale of our Broadcasting Group, previously included in our C&C segment.

Refer to Note 2 – Acquisitions and Divestitures to our consolidated financial statements for further discussion.

Key Results

(in millions)	Years ended December 31,									% Change 1
	2013			2012			2011			’13 vs ’12	’12 vs ’11
Revenue	$	4,875		$	4,450		$	3,954		10%	13%
Operating profit	$	1,405		$	1,211		$	1,077		16%	12%
% Operating margin	29		%	27		%	27		%
Diluted EPS from continuing operations	$	2.90		$	2.37		$	2.00		22%	19%

 ¹  % changes in the tables throughout the MD&A are calculated off of the actual number, not the rounded number presented.

2013

S&P Ratings— Revenue and operating profit increased 12% and 18%, respectively. Revenue growth was driven by strong high-yield and investment grade corporate bond issuance in the U.S. in the first half of 2013 and in Europe for the full year driven by refinancing activity and increases in bank loan ratings and structured finance. Revenue growth in the first half of 2013 was partially offset by a decrease in U.S. corporate bond issuance in the second half of the year. Operating profit increased compared to 2012 primarily due to the increases in revenue, the gain on sale of an equity investment held by CRISIL and favorable foreign exchange rates. These increases were partially offset by increased compliance and regulatory costs, higher incentive costs due to improved performance, higher advertising expenses and the impact of CRISIL's acquisition of Coalition Development Ltd. in July of 2012.

S&P Capital IQ— Revenue and operating profit increased 4% and 1%, respectively. The revenue increase was primarily attributable to growth at Capital IQ driven by market share gains and increased contract values for existing accounts and increases in our

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subscription base for RatingsXpress®. Operating profit benefited from revenue increases and lower expenses resulting from the closure of several non-core businesses, reduced outside consulting fees, lower restructuring costs and a favorable impact from foreign exchange rates. These increases to operating profit were partially offset by higher incentive costs due to increased performance, increased cost of sales for exchange fees incurred by QuantHouse and costs related to additional headcount in developing regions.

S&P DJ Indices— Revenue and operating profit increased 27% and 31%, respectively. The revenue increases were primarily due to revenue from our S&P Dow Jones Indices LLC joint venture. Excluding revenue from the joint venture, revenue increased due to higher average levels of assets under management for exchange traded funds ("ETF") products. Operating profit increased primarily due to the increases in revenue, partially offset by the impact of higher data fees, increased incentive costs due to improved financial performance and higher marketing costs due to increased advertising levels as building the S&P DJ Indices brand was a focus in 2013. The increase in 2013 was also partially offset by the impact of a full year of expenses for our S&P Dow Jones Indices LLC joint venture. Additionally, we incurred a $26 million non-cash impairment charge associated with an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

C&C— Revenue and operating profit increased 4% and 25%, respectively. The revenue increase was primarily driven by continued demand for Platts’ proprietary content as annualized contract values increased and increases at J.D. Power, partially offset by declines at McGraw-Hill Construction. Operating profit increased due to the increases in revenue, the gain on the sale of Aviation Week and lower expenses at J.D. Power and McGraw-Hill Construction. Operating profit was partially offset by additional headcount and other operating costs to support business growth at Platts.

2012

S&P Ratings— Revenue and operating profit increased 15% and 18%, respectively. Revenue growth was driven by strong high-yield and investment grade corporate bond issuance related to robust refinancing activity and increases in bank loan ratings and structured finance. The increase was also impacted by increases in public finance driven by strong municipal bond issuance in the United States. Operating profit increased compared to 2011 primarily due to the increases in revenue, partially offset by higher incentive costs due to improved financial performance, an increase in legal expenses, restructuring charges of $15 million in the second half of 2012 and unfavorable foreign exchange rates.

S&P Capital IQ— Revenue increased 9%, while operating profit decreased 3%, respectively. The revenue increase was primarily attributable to growth at Capital IQ driven by market share gains and increased contract values for existing accounts; and increases in our subscription base for RatingsDirect®. Operating profit was significantly impacted by restructuring charges of $19 million recorded in the second half of 2012, as well as increased costs to further develop our content and software. The acquisitions of R² Technologies in February 2012, QuantHouse in April 2012 and Credit Market Analysis Limited ("CMA") in June 2012 also impacted the results, particularly amortization charges relating to the intangible assets.

S&P DJ Indices— Revenue and operating profit increased 20% and 12%, respectively. The revenue increases were primarily due to revenue from our S&P Dow Jones Indices LLC joint venture. Excluding revenue from the joint venture, revenue increased 3%, primarily due to higher average levels of assets under management for ETF products and higher mutual fund revenue. Operating profit was significantly impacted by expenses for our joint venture, higher data fees and additional personnel costs for targeted staff increases to drive future growth.

C&C— Revenue and operating profit increased 9% and 38%, respectively. These increases were primarily driven by continued demand for Platts’ proprietary content as annualized contract values increased; growth across our automotive sectors at J.D. Power, primarily in Asia and the United States; and a strong focus on the management of expenses across the brands. Partially offsetting the growth in the segment were additional costs related to revenue growth, incentive costs at Platts and J.D. Power and restructuring charges of $12 million recorded in the second half of 2012.

Outlook

We strive to be the leading provider of essential intelligence such as ratings, benchmarks and analytics to the global capital and commodities markets. We also seek to leverage the strength of our globally recognized brands and content to promote sustainable growth by bringing transparency and independent insights to the markets we serve.

With the successful completion of the Growth & Value Plan, we are aligning our efforts against two key strategic priorities, growth and performance.

We will strive to deliver on our strategic priorities through a clear set of growth drivers which are underpinned by excellence in

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management and execution.

We believe the key drivers of our growth are:

• Serving our customers with innovative, must-have solutions;

• Leveraging our unique portfolio of powerful brands and distinctive opportunities in the financial and commodity markets; and

• Winning as a dynamic, global company.

We believe the key elements of management and execution are:

• Ensuring quality and excellence in everything we do;

• Attracting and developing top-performing people; and

• Delivering together as one connected company.

Integrating and leveraging our key capabilities will also be critical to improving performance and delivering against our strategic priorities. We will strive to enhance analytical and product quality through technology, data and process improvements. Our businesses will also strive to continue to extend efforts in external outreach and advocacy, control and compliance. We will seek to further engage the customer by strengthening our sales, customer service, customer management processes and global operations. Finally, we will look to continue to put efforts and resources into developing high-performing talent driving to a common purpose.

We believe our strategic priorities are designed to deliver global growth in both new and existing markets. We intend to expand our coverage of core customer segments and markets by leveraging existing products and capabilities while also developing new products and capabilities to meet evolving customer needs in new markets.

There can be no assurance that we will achieve success in implementing any one or more of these strategies as a variety of factors could unfavorably impact operating results, including prolonged difficulties in the global credit markets and a change in the regulatory environment affecting our businesses.

Further projections and discussion on our 2014 outlook for our segments can be found within “Segment Review”.

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RESULTS OF OPERATIONS

Consolidated Review

(in millions)	Years ended December 31,									% Change
	2013			2012			2011			'13 vs '12	'12 vs '11
Revenue	$	4,875		$	4,450		$	3,954		10%	13%
Expenses:
Operating-related expenses	1,584			1,486			1,387			7%	7%
Selling and general expenses	1,737			1,664			1,377			4%	21%
Depreciation and amortization	137			141			126			(3)%	12%
Total expenses	3,458			3,291			2,890			5%	14%
Other loss (income)	12			(52		)	(13		)	N/M	N/M
Operating profit	1,405			1,211			1,077			16%	12%
Interest expense, net	59			81			77			(26)%	4%
Provision for taxes on income	443			404			374			9%	8%
Income from continuing operations	903			726			626			24%	16%
Discontinued operations, net	563			(234		)	308			N/M	N/M
Less: net income from continuing operations attributable to noncontrolling interests	(91		)	(50		)	(19		)	81%	N/M
Less: net loss (income) from discontinuing operations attributable to noncontrolling interests	1			(5		)	(4		)	N/M	6%
Net income attributable to McGraw Hill Financial, Inc.	$	1,376		$	437		$	911		N/M	(52)%

N/M - not meaningful

Revenue

(in millions)	Years ended December 31,						% Change
	2013		2012		2011		’13 vs ’12	’12 vs ’11
Subscription / Non-transaction revenue	$	2,978	$	2,777	$	2,608	7%	6%
Non-subscription / Transaction revenue	$	1,897	$	1,673	$	1,346	13%	24%
Domestic revenue	$	2,892	$	2,684	$	2,373	8%	13%
International revenue	$	1,983	$	1,766	$	1,581	12%	12%

2013

Revenue increased $425 million or 10% as compared to 2012. Subscription / non-transaction revenue increased primarily due to increases in non-issuance related revenue for corporate ratings, primarily for entity credit ratings and increased ratings evaluation services ("RES") activity, continued demand for Platts' proprietary content, growth at Capital IQ driven by market share gains and increased contract values for existing accounts and an increase in our subscription base at RatingsXpress®. Non-subscription / transaction revenue also increased due to strong high-yield corporate bond issuance in the U.S. during the first half of 2013 and in Europe for the full year resulting from refinancing activity, increases in bank loan ratings, growth in structured finance and higher assets under management for ETF products at S&P DJ Indices. See "Segment Review" below for further information.

Foreign exchange rates had an unfavorable impact of $10 million on revenue. This impact refers to constant currency comparisons estimated by re-calculating current year results of foreign operations using the average exchange rate from the prior year.

2012

Revenue increased $496 million or 13% as compared to 2011, primarily due to strong high-yield investment grade corporate bond issuance, which impacted non-subscription / transaction revenue; growth in our global commodities products; growth for our

22

Capital IQ product, strong municipal bond issuance in the U.S. and increases in bank loan ratings; increases in the subscription base at RatingsXpress®; and recent acquisitions, including, QuantHouse in April 2012 and CMA and our S&P Dow Jones Indices LLC joint venture in June 2012. See “Segment Review” below for further information.

Foreign exchange rates had an unfavorable impact of $40 million on revenue.

Total Expenses

The following tables provide an analysis by segment of our operating-related expenses and selling and general expenses for the years ended December 31, 2013 and 2012:

(in millions)	2013					2012					% Change
	Operating- related expenses			Selling and general expenses		Operating- related expenses			Selling and general expenses		Operating- related expenses	Selling and general expenses
S&P Ratings	$	770		$	477	$	692		$	450	11%	6%
S&P Capital IQ	490			416		455			410		8%	1%
S&P DJ Indices 1	79			127		72			96		10%	32%
C&C	323			368		337			365		(4)%	1%
Intersegment eliminations	(76		)	—		(69		)	—		(11)%	—%
Total segments	1,586			1,388		1,487			1,321		7%	5%
Corporate 2	(2		)	349		(1		)	343		N/M	2%
	$	1,584		$	1,737	$	1,486		$	1,664	7%	4%

¹   In 2013, selling and general expenses includes a $26 million non-cash impairment charge associated with an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture. In 2012, selling and general expenses includes transaction costs of $15 million for our S&P Dow Jones Indices LLC joint venture.

²  In 2013, selling and general expenses primarily include pre-tax legal settlements of approximately $77 million, $64 million for our Growth and Value Plan, restructuring charges and charges related to our reduction in our real estate portfolio. In 2012, selling and general expenses includes expenses of $156 million for our Growth and Value Plan partially offset by a vacation accrual reversal of $52 million. These Growth and Value Plan costs primarily include professional fees and charges associated with our outsourcing initiatives and 2012 also includes severance charges, a charge related to a reduction in our lease commitments and transaction costs for our S&P Dow Jones Indices LLC joint venture.

Operating-Related Expenses

Operating-related expenses increased $98 million or 7% as compared to 2012, primarily driven by increased costs at S&P Ratings and S&P Capital IQ. At S&P Ratings the increases were primarily a result of higher personnel costs, including incentive compensation. At S&P Capital IQ the increases were primarily a result of additional headcount in developing regions and costs to further develop our content and purchase new data sets. This was partially offset by lower compensation expense at C&C due to a reduction in headcount from recent restructuring actions.

Intersegment eliminations relates to a royalty charged to S&P Capital IQ for the rights to use and distribute content and data developed by S&P Ratings.

Selling and General Expenses

Selling and general expenses were impacted by Growth and Value Plan related costs of $64 million and $226 million for 2013 and 2012, respectively. 2013 costs were primarily driven by additional professional fees and costs related to our separation from MHE. 2012 costs primarily include professional fees, charges associated with our outsourcing initiatives, severance charges, a charge related to a reduction in our lease commitments and transaction costs for our S&P Dow Jones Indices LLC joint venture. Additionally, 2013 was also impacted by pre-tax legal settlements of approximately $77 million and charges we recorded in the fourth quarter of 2013 as we continued to evaluate our remaining cost structure, particularly in light of recent divestitures.

This resulted in $28 million of restructuring charges, primarily related to severance, associated with streamlining our management structure and our decision to exit non-strategic businesses; and $13 million related to terminating various leases as we reduce our real estate portfolio.

Excluding these costs, selling and general expenses increased compared to 2012, primarily due to higher costs associated with increased sales and additional incentive compensation driven by improved performance at S&P Ratings and S&P DJ Indices. The increase in 2013 at S&P DJ Indices was also impacted by a $26 million non-cash impairment charge associated with an intangible

23

asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

Depreciation and Amortization

Depreciation and amortization decreased $4 million or 3% as compared to 2012, primarily due to asset write offs in 2013 as we consolidated office locations, partially offset by additional intangible asset amortization related to our acquisitions in 2012.

The following tables provide an analysis by segment of our operating-related expenses and selling and general expenses for the years ended December 31, 2012 and 2011:

(in millions)	2012					2011					% Change
	Operating- related expenses			Selling and general expenses		Operating- related expenses			Selling and general expenses		Operating- related expenses	Selling and general expenses
S&P Ratings	$	692		$	450	$	646		$	361	7%	25%
S&P Capital IQ	455			410		382			392		19%	5%
S&P DJ Indices 1	72			96		75			56		(4)%	71%
C&C	337			365		351			356		(4)%	3%
Intersegment eliminations	(69		)	—		(63		)	—		(10)%	—%
Total segments	1,487			1,321		1,391			1,165		7%	13%
Corporate 2	(1		)	343		(4		)	212		(75)%	62%
	$	1,486		$	1,664	$	1,387		$	1,377	7%	21%

 ¹  In 2012,selling and general expenses includes transaction costs of $15 million for our S&P Dow Jones Indices LLC joint venture.

 ²  In 2012, selling and general expenses includes expenses of $156 million for our Growth and Value Plan, including costs related to the separation of MHE, restructuring costs and other related non-recurring costs, partially offset by a vacation accrual reversal of $52 million.

Operating-Related Expenses

Operating-related expenses increased $99 million or 7% as compared to 2011, primarily driven by increased costs at S&P Ratings of $46 million or 7% and S&P Capital IQ of $73 million or 19%. These increases were primarily a result of higher personnel costs, including incentive compensation, at S&P Ratings and global staff increases at S&P Capital IQ. This was partially offset by lower compensation expense at C&C of $6 million or 8% due to a reduction in headcount from recent restructuring actions.

Intersegment eliminations relates to a royalty charged to S&P Capital IQ for the rights to use and distribute content and data developed by S&P Ratings.

Selling and General Expenses

During 2012, we recorded $226 million of Growth and Value Plan related costs necessary to enable separation and reduce our cost structure, which includes professional fees, severance charges, transaction costs for our S&P Dow Jones Indices LLC joint venture and a charge related to a reduction in our lease commitments. Excluding these costs and $10 million of Growth and Value Plan costs for 2011, selling and general expenses increased $71 million as compared to 2011, due to higher costs associated with increased sales and additional stock-based compensation, mainly due to higher expected performance achievement and an increase in the grant price of our equity awards. Personnel costs increased $44 million at S&P Ratings, $20 million at C&C, $7 million at S&P DJ Indices and $4 million at S&P Capital IQ as revenue growth improved 15%, 9%, 20% and 9%, respectively. In addition, S&P Ratings had increased legal costs as compared to 2011.

Total costs incurred since the Growth and Value Plan was announced in September of 2011 have been $361 million, of which $300 million have been recorded in continuing operations and $61 million have been recorded in discontinued operations. These are costs that have been necessary to enable separation, reduce our cost structure, accelerate growth and increase shareholder value.

Depreciation and Amortization

Depreciation and amortization increased $15 million or 12% as compared to 2011, primarily due to additional intangible asset amortization related to our recent acquisitions, partially offset by reduced purchases of furniture and computer equipment last year as we focused on continued cost controls.

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Other Loss (Income)

During 2013, we recorded a net pre-tax loss of $12 million within other loss (income) in the consolidated statement of income:

• During the fourth quarter of 2013, we recognized a non-cash impairment charge of $36 million related to the facilities and associated infrastructure of one of our data centers that we are in the process of selling.

• On September 30, 2013, we completed the sale of Financial Communications, which was part of our S&P Capital IQ segment.

• On August 27, 2013, CRISIL sold its 49% equity interest in India Index Services & Products Ltd. This investment was held within our S&P Ratings segment.

• On August 1, 2013, we completed the sale of Aviation Week within our C&C segment to Penton, a privately held business information company.

In the fourth quarter of 2012, we recorded a pre-tax gain of $52 million within other loss (income) in the consolidated statement of income related to a change in our vacation policy. The change in our vacation policy modified the number of days that employees are entitled to for unused vacation time upon termination of employmentas they will only be paid for vacation days equivalent to what they have earned in the current year.

During 2011, we recorded a pre-tax gain of $13 million within other loss (income) in the consolidated statement of income, which related to the sale of our interest in LinkedIn Corporation in their initial public offering. This investment was held within our C&C segment.

Operating Profit

We consider operating profit to be an important measure for evaluating our operating performance and we define operating profit as revenues less the related cost of producing the revenues and selling and general expenses. We also further evaluate operating profit for each of the reportable business segments in which we operate.

We internally manage our operations by reference to “segment operating profit” and resources are allocated primarily based on segment operating profit. Segment operating profit is defined as operating profit before allocated expenses, which are centrally managed costs and do not affect the operating results of our segments. Segment operating profit is one of the key metrics we use to evaluate operating performance. Segment operating profit is not, however, a measure of financial performance under U.S. GAAP, and may not be defined and calculated by other companies in the same manner.

(in millions)	Years ended December 31,									% Change
	2013			2012			2011			'13 vs '12	'12 vs '11
S&P Ratings	$	1,000		$	849		$	720		18%	18%
S&P Capital IQ	211			208			214			1%	(3)%
S&P DJ Indices	278			212			189			31%	12%
C&C	311			248			180			25%	38%
Total segment operating profit	1,800			1,517			1,303			19%	16%
Unallocated expense 1	(395		)	(306		)	(226		)	29%	36%
Total operating profit	$	1,405		$	1,211		$	1,077		16%	12%

¹  Includes depreciation expense and expenses for our Growth and Value Plan, including restructuring costs and other related non-recurring costs. 2013 also includes a charge related to pre-tax legal settlements, a non-cash impairment charge related to the facilities and associated infrastructure of one of our data centers that we are in the process of selling and charges related to a reduction in our real estate portfolio. 2012 includes a benefit related to a vacation accrual reversal.

2013

Segment Operating Profit — Increased $283 million, or 19% as compared to 2012. Segment operating income margins were 37% and 34% for 2013 and 2012, respectively. Substantial revenue growth at corporate ratings and S&P DJ Indices, and strong demand for Platts' proprietary content were the primary drivers of the increase. See “Segment Review” below for further information.

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Unallocated Expense— Increased by $89 million or 29% as compared to 2012. Unallocated expense was impacted by Growth and Value related plan costs at our corporate headquarters of $64 million in 2013 and $156 million in 2012. Unallocated expense in 2013 was also impacted by pre-tax legal settlements of approximately $77 million, a $36 million non-cash impairment charge related to the facilities and associated infrastructure of one of our data centers that we are in the process of selling and $13 million related to terminating various leases as we reduce our real estate portfolio. In 2012, unallocated expense was partially offset by a vacation accrual reversal of $52 million. Excluding these items, unallocated expense increased slightly compared to 2012, primarily due to increased unoccupied office space.

Foreign exchange rates had a favorable impact of $20 million on operating profit for 2013. This impact refers to constant currency comparisons and the remeasurement of monetary assets and liabilities. Constant currency impacts are estimated by re-calculating current year results of foreign operations using the average exchange rate from the prior year. Remeasurement impacts are based on the variance between current-year and prior-year foreign exchange rate fluctuations on assets and liabilities denominated in currencies other than the individual business' functional currency.

2012

Segment Operating Profit — Increased $214 million, or 16% as compared to 2011. Segment operating income margins were 34% and 33% for 2012 and 2011, respectively. Restructuring charges and other non-recurring charges as noted above mitigated the margin improvement for the period. See “Segment Review” below for further information. In addition, segment operating profit benefited from reduced pension costs as we froze our U.S. Employee Retirement Plan effective on April 1, 2012.

Unallocated Expense— Increased by $80 million or 36% as compared to 2011, mainly as a result of $156 million of Growth and Value Plan related costs necessary to enable separation and reduce our cost structure, which includes professional fees of $117 million and restructuring charges of $21 million. This was partially offset by a vacation accrual reversal of $52 million. Unallocated expenses also includes an increase for costs that were previously allocated to MHE, such as costs for centralized departments, that could not be classified as discontinued operations due to the nature of the expense.

Foreign exchange rates had an unfavorable impact of $6 million on operating profit for 2012.

Interest Expense, net

Net interest expense for 2013 decreased 26% as compared to 2012, primarily driven by the maturity of our $400 million, 5.375% Senior Notes on November 15, 2012. Net interest expense for 2012 increased 4% as compared to 2011, primarily due to increased interest expense related to uncertain tax positions, as well as lower international interest income from our investments in 2012 compared with 2011.

Provision for Income Taxes

Our effective tax rate from continuing operations was 32.9%, 35.8% and 37.4% for 2013, 2012 and 2011, respectively. The decrease in the 2013 effective tax rate from the prior year period was primarily due to the full year effect of the partnership structure of the S&P Dow Jones Indices LLC joint venture, an increase in income in lower tax rate jurisdictions and tax planning. The decrease in the 2012 effective tax rate from the prior year period was primarily due to the partnership structure of the S&P Dow Jones Indices LLC joint venture, the Growth and Value Plan and restructuring costs incurred primarily in the United States.

Including discontinued operations, the effective tax rate was 33.1%, 45.8% and 36.5% for 2013, 2012 and 2011, respectively. The decrease in the 2013 and the increase in the 2012 effective tax rates including discontinued operations was primarily due to the goodwill impairment recorded at MHE in 2012. Additionally, the 2013 effective tax rate including discontinued operations was favorably impacted by the items listed above for continuing operations.

Discontinued Operations, net

2013

Income from discontinued operations was $563 million in 2013 as compared to a loss from discontinued operations of $234 million in 2012, primarily as a result of an after-tax gain of $589 million recorded on the sale of MHE in 2013.

2012

Loss from discontinued operations was $234 million in 2012 as compared to income from discontinued operations of $308 million in 2011, primarily as a result of revenue declines and several non-recurring items.

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Revenue at MHE decreased $230 million or 10% as compared to 2011, primarily due to decreases in the adoption states as well as open territory sales at School Education Group. Also contributing to the reduction was a substantial increase in deferred revenue due to higher sales of programs that contain digital components that will be delivered over multiple years. In the Higher Education, Professional and International Group, sales of new editions have been impacted by the growth of the used book and rental market. However, digital sales across MHE continue to increase as compared to 2011.

Non-recurring items impacting the loss from discontinued operations in 2012 included:

• Intangible asset impairments of $497 million that consisted of goodwill, prepublication and inventory assets at MHE's School Education Group ("SEG").

◦ As a result of the offer we received from Apollo Global Management, LLC in the fourth quarter of 2012, we performed a goodwill impairment review at MHE, which resulted in a full impairment of goodwill of $478 million at SEG.

◦ An impairment charge of $19 million was recorded on certain prepublication and inventory assets as targeted school programs were shut down.

• Restructuring charges of $39 million consisting primarily of employee severance costs related to a workforce reduction of approximately 530 positions.

• Direct transaction costs of $17 million for legal and professional fees related to the sale of MHE.

• A charge related to a lease commitment of $3 million.

• These charges were partially offset by a vacation accrual reversal of $17 million related to a change in our vacation policy.

Segment Review

S&P Ratings

Credit ratings are one of several tools that investors can use when making decisions about purchasing bonds and other fixed income investments. They are opinions about credit risk and our ratings express our opinion about the ability and willingness of an issuer, such as a corporation or state or city government, to meet its financial obligations in full and on time. Our credit ratings can also relate to the credit quality of an individual debt issue, such as a corporate or municipal bond, and the relative likelihood that the issuer may default.

S&P Ratings differentiates its revenue between transaction and non-transaction. Transaction revenue primarily includes fees associated with:

• ratings related to new issuance of corporate and government debt instruments, and structured finance debt instruments;

• bank loan ratings; and

• corporate credit estimates, which are intended, based on an abbreviated analysis, to provide an indication of our opinion regarding creditworthiness of a company which does not currently have an S&P Ratings credit rating.

Non-transaction revenue primarily includes fees for surveillance of a credit rating, annual fees for customer relationship-based pricing programs and fees for entity credit ratings.

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(in millions)	Years ended December 31,									% Change
	2013			2012			2011			’13 vs ’12		’12 vs ’11
Revenue:
Transaction	$	1,035		$	903		$	651		15	%	39	%
Non-transaction	1,239			1,131			1,116			10	%	1	%
Total revenue	$	2,274		$	2,034		$	1,767		12	%	15	%
% of total revenue:
Transaction	46		%	44		%	37		%
Non-transaction	54		%	56		%	63		%
Domestic revenue	$	1,214		$	1,102		$	910		10	%	21	%
International revenue	$	1,060		$	932		$	857		14	%	9	%
Operating profit	$	1,000		$	849		$	720		18	%	18	%
% Operating margin	44		%	42		%	41		%

Revenue

2013

Both transaction and non-transaction revenue grew compared to 2012, with transaction revenue growing at a higher rate. Additionally, both domestic and international revenue in 2013 grew compared to 2012, with international growing at a faster pace reflecting strong growth in Europe as the economic outlook has improved.

Transaction revenue grew in 2013 due to strong high-yield corporate bond issuance in the U.S. during the first half of 2013 and in Europe for the full year, driven by refinancing activity and borrowers taking advantage of lower rates. Increases in U.S. and Europe bank loan ratings resulting from refinancing activity also contributed to the full year increase. These increases were partially offset by a decline in U.S. corporate bond issuance in the second half of the year, reflecting interest rate volatility in the early part of the third quarter of 2013 and challenging comparisons to 2012 related to robust refinancing activity. Additionally, transaction revenue was favorably impacted by growth in structured finance revenues driven primarily by increased issuance of U.S. collateralized loan obligations ("CLO") and U.S. commercial mortgage-backed securities.

Non-transaction revenue increased in 2013 due to growth in non-issuance related revenue for corporate ratings, primarily for entity credit ratings in the U.S. and Europe and increased RES activity. Additionally, CRISIL's acquisition of Coalition Development Ltd. in July of 2012 had a favorable impact. Non-transaction revenue includes an intersegment royalty charged to S&P Capital IQ for the rights to use and distribute content and data developed by S&P Ratings. Royalty revenue for 2013 and 2012 was $72 million and $69 million, respectively.

Foreign exchange rates had an unfavorable impact of $5 million on revenue for 2013.

2012

Transaction revenue grew significantly in 2012 as compared to 2011 driven by strong high-yield and investment grade corporate bond issuance related to robust refinancing activity. Borrowers took advantage of low rates replacing existing bonds with cheaper debt, particularly in the second half of 2012 as issuers refinanced in advance of the uncertainty surrounding the U.S. fiscal cliff and Presidential election. The significant increase was also attributable to weak results in the second half of 2011 resulting from the impacts of the sovereign difficulties in Europe and a slow economic recovery. Additionally, increases in 2012 in public finance contributed to growth in transaction revenue, primarily from strong municipal bond issuance in the U.S. as refunding activity increased dramatically over 2011. Strong growth in bank loan ratings, resulting from a favorable interest rate environment, was also a key driver contributing to the growth in structured finance revenues, specifically an increase in U.S. CLO transaction revenue. U.S. asset backed securities ("ABS") transaction revenue also increased due to favorable spreads, expansion of both bank and non-bank issuance and solid refinancing activity of student loans.

Non-transaction revenue remained relatively flat in 2012 as growth in non-issuance related revenue at corporate ratings, primarily for entity credit ratings and RES, was offset by declines in annual fees and program fees in structured finance. Annual fees include surveillance fees and other customer relationship-based fees. Additionally, CRISIL's acquisition of Coalition Development Ltd. in July of 2012 had a favorable impact on non-transaction revenue in 2012. Non-transaction revenue includes an intersegment

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royalty charged to S&P Capital IQ for the rights to use and distribute content and data developed by S&P Ratings. Royalty revenue for 2012 and 2011 was $69 million and $63 million, respectively.

Foreign exchange rates had an unfavorable impact of $37 million on revenue for 2012.

Operating Profit

2013

Operating profit increased compared to 2012 due to the increases in revenue as noted above. Additionally, the gain on sale of an equity investment held by CRISIL of $16 millionin 2013 and the favorable impact from foreign exchange rates of $11 millionalso contributed to the increase in operating profit. These increases were partially offset by increased compliance and regulatory costs, higher incentive costs due to improved performance, increased advertising expenses, higher technology investments and CRISIL's acquisition of Coalition Development Ltd. in July of 2012.

2012

Operating profit increased compared to 2011 primarily due to the increases in revenue as noted above. These increases were partially offset by increased expenses resulting from higher incentive costs due to improved financial performance, an increase in legal expenses, restructuring charges of $15 million in the second half of 2012 consisting of employee severance costs related to a workforce reduction of approximately 100 positions, CRISIL's acquisition of Coalition Development Ltd. in July of 2012 and an unfavorable impact from foreign exchange rates of $13 million.

Issuance Volumes

We monitor issuance volumes as an indicator of trends in transaction revenue streams within S&P Ratings. Issuance volumes noted within the discussion that follows are based on the domicile of the issuer. Issuance volumes can be reported in two ways: by “domicile” which is based on where an issuer is located or where the assets associated with an issue are located, or based on “marketplace” which is where the bonds are sold. The following tables depict changes in issuance levels as compared to the prior year, based on Thomson Financial, Harrison Scott Publications, Dealogic and S&P Rating’s internal estimates.

	2013 Compared to 2012
Corporate Issuance	U.S.		Europe
High-Yield Issuance	(6	)%	92	%
Investment Grade	9	%	(13	)%
Total New Issue Dollars—Corporate Issuance	5	%	(5	)%

• Corporate issuance in the U.S. was up as an increase in investment grade debt issuance driven by a number of large issuance deals was offset by a decrease in high-yield debt issuance driven by interest rate volatility that occurred in the early part of the third quarter of 2013. High-yield debt issuance and investment-grade debt issuance comparisons reflect high volumes experienced in the second half of 2012 as issuers refinanced in advance of the uncertainty surrounding the U.S. fiscal cliff and Presidential election.

• Corporate issuance in Europe was down driven by weakness in investment grade issuance reflecting difficult comparisons to 2012 and the fact that many companies had already met their refinancing needs. The decreases were partially offset by strong high-yield debt issuance reflecting issuers taking advantage of improving economic conditions.

	2013 Compared to 2012
Structured Finance	U.S.		Europe
Asset-Backed Securities (“ABS”)	(2	)%	—	%
Collateralized Debt Obligations (“CDO”)	63	%	**
Commercial Mortgage-Backed Securities (“CMBS”)	76	%	**
Residential Mortgage-Backed Securities (“RMBS”)	31	%	(56	)%
Covered Bonds	*		(19	)%
Total New Issue Dollars—Structured Finance	24	%	(18	)%

* Represents no activity in 2013 and low issuance levels in 2012.

** Represents low issuance levels in 2012.

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• ABS issuance in the U.S. was down slightly due to a decline in student loans and auto activity, partially offset by an increase in credit card activity. Student loan activity was down due to a lower level of Federal Family Education Loan Program ("FFELP") refinancing and a smaller volume of private market deals. Despite solid auto sales and growth in sub-prime lending, auto volumes declined as prime issuers shifted more funding to unsecured markets. The increase in credit card activity was partially driven by banks being more active in an effort to diversify and take advantage of favorable spreads. ABS issuance in Europe was flat as increased activity in the second half of the year reflecting improving economic conditions was offset by declines in the first half of 2013.

• Issuance was up in the U.S. CDO market driven by corporate loan activity which benefited from strong credit performance and lower default rates, as new collateral managers entered the market and market participants issued ahead of regulatory changes. European issuance in the CDO market was minimal, however, issuance levels improved in 2013.

• CMBS issuance was up in the U.S. due to improving sector fundamentals resulting in more attractive spreads. European CMBS issuance was also up, although off of a low 2012 base.

• RMBS volume is up in the U.S. due to a slow revival of the non-agency private-label market driven by a small number of repetitive issuers and new entrants coming into the market. Despite relatively strong market fundamentals in Europe, issuance was down reflecting issuers taking advantage of the Bank of England's Funding for Lending Scheme.

• Covered bond issuance (which are debt securities backed by mortgages or other high-quality assets that remain on the issuer's balance sheet) in Europe was down due to the European Central Bank's Long Term Refinancing Offering, the drive for banks to increase deposit funding and the impact of lower mortgage production in many jurisdictions - all collectively reducing funding needs.

Industry Highlights and Outlook

Revenue growth in 2013 was primarily driven by strong high-yield bond issuance in the U.S. in the first half of the year and in Europe for the full year. Additionally, U.S. and Europe bank loan ratings increased driven by refinancing activity. U.S. high-yield bond issuance levels decreased in the second half of 2013 reflecting interest rate volatility in the beginning of the third quarter of 2013 and difficult comparisons to robust performance in the second half of 2012. In 2014, debt issuance and bank loan rating activity is expected to continue growing at a lower pace as many refinancings were completed in 2013, however, we believe the longer term outlook for the corporate bond market continues to be healthy.

Structured finance issuance in the U.S. is expected to continue its steady recovery in 2014 and improving economic conditions and increased investor confidence in Europe should provide opportunities for additional issuance. Healthy U.S. RMBS and U.S. CMBS levels are expected to continue in 2014. The U.S. CDO market continued to experience strong activity in 2013. We expect the CLO market in 2014 to be comparable to 2013. U.S. ABS issuance volume decreased slightly in 2013, however, we expect modest issuance growth in 2014, driven by solid auto and credit card issuance, offset by lower FFELP student loan refinancing activity.

Legal and Regulatory Environment

The financial services industry is subject to the potential for increased regulation in the U.S. and abroad. The businesses conducted by our S&P Ratings segment are, in certain cases, regulated under the Credit Rating Agency Reform Act of 2006, the U.S. Securities Exchange Act of 1934 and/or the laws of the states or other jurisdictions in which they conduct business.

Standard & Poor’s Ratings Services is a credit rating agency that is registered with the SEC as a Nationally Recognized Statistical Rating Organization (“NRSRO”). The SEC first began designating NRSROs in 1975 for use of their credit ratings in the determination of capital charges for registered brokers and dealers under the SEC’s Net Capital Rule.

The “Credit Rating Agency Reform Act of 2006” (the “Act”) created a new SEC registration system for rating agencies that choose to register as NRSROs. Under the Act, the SEC is given authority and oversight of NRSROs and can censure NRSROs, revoke their registration or limit or suspend their registration in certain cases. The rules implemented by the SEC pursuant to the Act address, among other things, prevention or misuse of material non-public information, conflicts of interest and improving transparency of ratings performance and methodologies. The public portions of the current version of S&P Ratings’s Form NRSRO are available on S&P Rating’s Web site.

Outside the U.S., regulators and government officials have been implementing formal oversight of credit rating agencies. S&P Ratings is subject to regulations in several foreign jurisdictions in which it operates and continues to work closely with regulators globally, including the International Organization of Securities Commissions, the European Securities and Markets Authority and

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others to promote the global consistency of regulatory requirements. S&P Ratings expects regulators in additional countries to introduce new regulations in the future.

We have reviewed the new laws, regulations and rules which have been adopted and have implemented, or are planning to implement, changes as required. We do not believe that such new laws, regulations or rules will have a materially adverse effect on our financial condition or results of operations. Other laws, regulations and rules relating to credit rating agencies are being considered by local, national, foreign and multinational bodies and are likely to continue to be considered in the future, including provisions seeking to reduce regulatory and investor reliance on credit ratings, rotation of credit rating agencies and liability standards applicable to credit rating agencies. The impact on us of the adoption of any such laws, regulations or rules remains uncertain, but could increase the costs and legal risks relating to S&P Rating’s rating activities.

For a further discussion of competitive and other risks inherent in the S&P Ratings business, see Item 1a, Risk Factors, in this Form 10-K.

In the normal course of business both in the U.S. 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.

For a further discussion of the legal and regulatory environment see Note 12 – Commitments and Contingencies to the consolidated financial statements.

S&P Capital IQ

S&P Capital IQ's portfolio of capabilities are designed to help the financial community track performance, generate better investment returns (alpha), identify new trading and investment ideas, perform risk analysis, and develop mitigation strategies. Specific capabilities include:

• Desktop Solutions — a product suite that provides data, analytics and third-party research for global finance professionals, which include Capital IQ and MarketScope Advisor;

• Enterprise Solutions — integrated bulk data feeds that can be customized, which include QuantHouse, S&P Securities Evaluations, CUSIP and Compustat;

• Ratings Intellectual Property ("IP") — commercial arm that sells Standard & Poor's Ratings' IP, which includes RatingsDirect® and RatingsXpress®; and

• Proprietary Research — comprehensive source of market research for financial professionals, which includes Leveraged Commentary & Data, Global Market Intelligence and multi-asset-class research.

(in millions)	Years ended December 31,									% Change
	2013			2012			2011			’13 vs ’12		’12 vs ’11
Revenue	$	1,170		$	1,124		$	1,031		4	%	9	%
Subscription revenue	$	1,056		$	1,014		$	922		4	%	10	%
Non-subscription revenue	$	114		$	110		$	109		4	%	1	%
Domestic revenue	$	767		$	749		$	693		2	%	8	%
International revenue	$	403		$	375		$	338		7	%	11	%
Operating profit	$	211		$	208		$	214		1	%	(3	)%
% Operating margin	18		%	19		%	21		%

Revenue

2013

Revenue grew compared to 2012 primarily due growth at Capital IQ and RatingsXpress®, partially offset by an unfavorable impact related to the closure of several non-core businesses and declines in several of our investment research products.

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The increase at Capital IQ was driven by market share gains and increased contract values for existing accounts. The number of users on the desktop continues to show strong growth over 2012. Contract value growth continues to be driven by success in the corporate and investment management client segments. These segments are also growing as a result of our bundled solution offerings integrated within the Capital IQ platform. Increased contract values were also driven by new datasets and expanded coverage of existing datasets combined with improved functionality and performance of the Capital IQ platform.

Both domestic and international revenue increased over 2012, however, international increased at a higher rate due to the continued sales growth of Capital IQ in Europe and Asia and the growth of QuantHouse. International growth was partially offset by our decision to close certain businesses and products within Proprietary Research.

The subscription base for RatingsXpress® is growing due to new client relationships and expanded relationships within existing accounts as the number of customers have increased 5% in 2013 as compared to 2012. RatingsXpress® has benefited from increased compliance requirements which has created a greater need for alternative risk tools. Improvements made to the speed and timeliness through delivery on the Xpressfeed platform has also contributed to growth in RatingsXpress®. Sales related to RatingsDirect® have increased more toward the second half of 2013 as the product is now also available on the Capital IQ platform and growth in contract values is also being driven by being able to sell bundled packages with other S&P Capital IQ data sets.

The 2012 acquisitions of QuantHouse and Credit Market Analysis Limited also contributed to the increase in revenue.

2012

Revenue grew compared to 2011, primarily due to growth at Capital IQ, RatingsXpress® and the acquisitions of R² Technologies, QuantHouse and CMA.

The increase at Capital IQ was driven by market share gains and increased contract values for existing accounts, however headcount reductions in the financial services industry have tempered growth. The number of clients have still increased 7% in 2012 from 2011 and the spend from the top accounts continued to grow. The client increase includes a certain percentage of clients on TheMarkets.com platform that have been migrated to the Capital IQ platform. The subscription base for RatingsDirect® increased slightly as difficult market conditions due to budget constraints and reductions in headcount across the customer base affected revenue in 2012. Clients continued to reduce staff levels to manage their spending levels and layoffs continued to be announced through the fourth quarter of 2012.

The subscription base for RatingsXpress® grew from new client relationships and expanded relationships into existing accounts as the number of RatingsXpress® customers increased 10% in 2012 as compared to 2011. However, average contract values for those customers declined due to customer budget constraints amidst difficult market conditions. Client cancellations were also higher than in 2011 due to increased merger and acquisition activity during the year that caused those clients to reevaluate their subscriptions.

Traditionally, revenue has been primarily domestic, however, due to increases in Europe for the subscription base for RatingsXpress®, continued sales efforts of the Capital IQ desktop in Europe and Asia and recent acquisitions in Europe, international growth continued to occur throughout 2012.

Operating Profit

2013

Operating profit increased slightly as compared to 2012 due to the increase in revenue as discussed above, lower expenses resulting from the closure of several non-core businesses, reductions in outside consulting fees, lower restructuring costs in 2013 as compared to 2012 and a favorable impact from foreign exchange rates of $9 million. Partially offsetting the increases to operating profit were higher incentive costs due to improved performance, increased costs of sales for exchange fees incurred by QuantHouse, costs related to additional headcount in developing regions and a loss on the sale of Financial Communications of $3 million in 2013.

2012

Operating profit decreased slightly as compared to 2011. 2012 was significantly impacted by restructuring charges of $19 million recorded in the second half of 2012 consisting of employee severance costs related to a workforce reduction of approximately 150 positions. The 2012 acquisitions also contributed to the decrease, particularly due to amortization charges relating to the intangible assets. Also impacting operating profit were staff increases, primarily in developing regions, increased technology costs to support the growth in the employee base and costs to further develop our content and software. These decreases were partially offset by the increase in revenue discussed above and a favorable impact from foreign exchange rates of $7 million.

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Industry Highlights and Outlook

Enhancements to the segments content and platforms and growing the client base were key areas of focus in 2013. New datasets and expanded coverage of existing datasets combined with improved functionality of the Capital IQ platform contributed to the segments revenue growth in 2013. Platform releases have been focused on improving reliability, scalability and product performance. Improvements to the speed and timeliness through the delivery on the Xpressfeed platform and the ability to sell bundled packages with other S&P Capital IQ data sets also contributed to revenue growth at RatingsXpress®. The integration of their services on their delivery platforms and introduction of new analytic and data solutions to the market place contributed to customer growth at Capital IQ and RatingsXpress® in 2013.

In 2014, the segment will continue to focus on integrating and evolving its assets and capabilities into one scaled business that offers unique, high-value offerings across all asset classes. S&P Capital IQ will continue to strive to build new functionality filling critical capability gaps to bolster their foundation for future growth.

Legal and Regulatory Environment

The financial services industry is subject to the potential for increased regulation in the U.S. and abroad. The businesses conducted by S&P Capital IQ are in certain cases regulated under the U.S. Investment Advisers Act of 1940, the U.S. Securities Exchange Act of 1934 and/or the laws of the states or other jurisdictions in which they conduct business.

The markets for financial research, investment and advisory services are very competitive. S&P Capital IQ competes domestically and internationally on the basis of a number of factors, including the quality of its research and advisory services, client service, reputation, price, geographic scope, range of products and services, and technological innovation.

For a further discussion of the legal and regulatory environment see Note 12 – Commitments and Contingencies to the consolidated financial statements.

S&P DJ Indices

S&P DJ Indices is a global index provider that maintains a wide variety of investable and benchmark indices to meet an array of investor needs. S&P DJ Indices’ mission is to provide benchmarks to help with decision making, create transparent indices, collaborate with the financial community to create innovative products and provide investors with tools to monitor world markets.

S&P DJ Indices includes our transaction in June 2012 with CME Group, Inc. and CME Group Index Services LLC to form a new company, S&P Dow Jones Indices LLC. The joint venture is designed to advance international growth with some of the largest derivative exchanges worldwide.

S&P DJ Indices generates subscription revenue but primarily derives revenue from non-subscription products based on the S&P and Dow Jones Indices. Specifically, S&P DJ Indices generate revenue from the following sources:

• Investment vehicles — such as, exchange traded funds (“ETFs”), which are based on the S&P and Dow Jones Indices and generate revenue through fees based on assets and underlying funds;

• Listed derivatives — which generate royalties based on trading volumes of derivatives contracts listed on various exchanges;

• Index-related licensing fees — which are either fixed or variable annual and per-issue fees for over-the-counter derivatives and retail-structured products; and

• Data subscription — which support index fund management, portfolio analytics and research.

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(in millions)	Years ended December 31,									% Change
	2013			2012			2011			’13 vs ’12	’12 vs ’11
Revenue	$	493		$	388		$	323		27%	20%
Subscription revenue	$	103		$	87		$	71		19%	22%
Non-subscription revenue	$	390		$	301		$	252		30%	19%
Domestic revenue	$	385		$	301		$	248		28%	21%
International revenue	$	108		$	87		$	75		24%	16%
Operating profit	$	278		$	212		$	189		31%	12%
Less: net income attributable to noncontrolling interests	73			$	34		$	—		N/M	N/M
Net operating profit	$	205		$	178		$	189		15%	(6)%
% Operating margin	56		%	55		%	59		%
% Net operating margin	42		%	46		%	59		%

Revenue

2013

Revenue at S&P DJ Indices grew compared to 2012 primarily due to the incremental revenue from the S&P Dow Jones Indices LLC joint venture. Excluding the incremental revenue from the joint venture, revenue increased primarily due higher average levels of assets under management for ETF products. The trend toward ETF products continued in 2013 driving a fourth consecutive quarterly record for ETF assets under management in the fourth quarter of 2013. Volumes for exchange-traded derivatives continued to increase primarily for certain Chicago Board Options Exchange ("CBOE") products. Higher rates for certain new contracts also contributed to revenue growth in 2013.

40 new ETFs were launched during 2013 compared to 85 launched during 2012. Assets under management for ETFs rose 43% to $668 billion in 2013 from $466 billion in 2012. As the ETF market becomes more mature, we are beginning to evaluate those ETF's that have been launched that have not been as successful and making efforts to close them down. Assets under management for the fourth quarter of 2013 were 14% higher than the record amount set in the third quarter of 2013 and S&P DJ Indices is the leading index provider for the ETF market with assets representing 29% of global ETF assets.

2012

Revenue at S&P DJ Indices increased 20%, primarily due to the S&P Dow Jones Indices LLC joint venture. Excluding revenue from the joint venture, S&P DJ Indices revenue increased 3% primarily due to higher average levels of assets under management for ETF products and higher mutual fund revenue. Both domestic and international revenue increased in 2012 over 2011 primarily due to the joint venture. Excluding this impact, domestic revenue was still up, however international decreased due lower reported over-the-counter derivative trades in Europe.

85 new ETFs were launched during 2012 compared to 77 launched during 2011. Assets under management for ETFs, excluding those contributed from formation of the joint venture, rose 28% to $402 billion in 2012 from $314 billion in 2011.

Operating Profit

2013

Operating profit increased due to the increase in revenue as discussed above and from the reduction of transaction costs associated with our S&P Dow Jones Indices LLC joint venture in 2012. This was partially offset by the impact of higher data fees, increased incentive costs due to improved financial performance and higher marketing costs due to increased advertising levels as building the S&P DJ Indices brand was a focus in 2013. The increase in 2013 was also partially offset by the impact of a full year of expenses for our S&P Dow Jones Indices LLC joint venture. Additionally, we incurred a $26 million non-cash impairment charge associated with an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

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In the fourth quarter of 2013, we acquired the intellectual property rights to a range of commodities indices developed by Goldman Sachs as well as a limited-use license to promote the commodities indices using the Goldman Sachs Commodity Index trade marks. This transaction will allow us to eliminate applicable royalty obligations going forward and will favorably impact operating profit beginning in 2014.

2012

Operating profit increased due to the increase in revenue discussed above, partially offset by the impact of expenses for our S&P Dow Jones Indices LLC joint venture, higher data fees and additional personnel costs for targeted staff increases.

Industry Highlights and Outlook

S&P DJ Indices, the leading index provider for the ETF market space, grew in 2013 as the trend toward ETFs continued, driving record AUM levels. In 2014, we expect this favorable trend to continue driving higher AUM levels over the long-term. The segment will also seek to continue to launch new ETFs where they see a customer interest or opportunity. This group anticipates continuing to see opportunities in products internationally, primarily in the Middle East and Asia.

Legal and Regulatory Environment

The financial services industry is subject to the potential for increased regulation in the U.S. and abroad. The markets for index providers are very competitive. S&P DJ Indices competes domestically and internationally on the basis of a number of factors, including the quality of its benchmark indices, client service, reputation, price, geographic scope, range of products and services, and technological innovation.

For a further discussion of the legal and regulatory environment see Note 12 – Commitments and Contingencies to the consolidated financial statements.

Commodities & Commercial

C&C consists of business-to-business companies specializing in the commodities and commercial markets that deliver their customers access to high-value information, data, analytic services and pricing benchmarks. C&C includes the following brands:

• Platts — provides essential price data, analytics, and industry insight that enable commodities markets to perform with greater transparency and efficiency;

• J.D. Power — provides essential consumer intelligence to help businesses measure, understand, and improve the key performance metrics that drive growth and profitability; and

• McGraw Hill Construction — provides essential data, news, insights, and intelligence to better inform construction professionals' decisions and strengthen their market position.

The C&C business is driven by the need for high-value information and transparency in a variety of industries. C&C seeks to deliver premier content that is deeply embedded in customer workflows and decision making processes.

C&C's revenue is generated primarily through the following sources:

• Subscription revenue — subscriptions to our real-time news, market data and price assessments, along with other print and digital information products, primarily serving the energy and construction markets and the automotive industry; and

• Non-subscription revenue — primarily from licensing of our proprietary market price data and price assessments to commodity exchanges, syndicated and proprietary research studies, conference sponsorship, consulting engagements, and events.

As of August 1, 2013, we completed the sale of Aviation Week and results have been included in C&C's results through that date. The Broadcasting Group had historically been part of C&C. As of December 30, 2011, we completed the sale of the Broadcasting Group. See Note 2 – Acquisitions and Divestitures to our consolidated financial statements for further discussion.

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(in millions)	Years ended December 31,									% Change
	2013			2012			2011			’13 vs ’12		’12 vs ’11
Revenue:
Commodities	$	550		$	489		$	419		13	%	17	%
Commercial	464			484			477			(4	)%	1	%
Total revenue	$	1,014		$	973		$	896		4	%	9	%
Subscription revenue	$	656		$	614		$	564		7	%	9	%
Non-subscription revenue	$	358		$	359		$	332		—	%	8	%
Domestic revenue	$	563		$	563		$	551		—	%	2	%
International revenue	$	451		$	410		$	345		10	%	19	%
Operating profit	$	311		$	248		$	180		25	%	38	%
% Operating margin	31		%	26		%	20		%

Revenue

2013

Revenue at C&C increased due to continued demand for Platts’ proprietary content as Platts’ revenue grew by 13% with consistent growth across all regions. This growth was mainly driven by strength in Platts’ market data and price assessment products across all commodity sectors, led by petroleum, complimented by gains in demand for shipping data and risk forward curve products. Additionally, growth has been driven by the continued licensing of our proprietary market price data and price assessments to various commodity exchanges. While petroleum is still the biggest driver, the revenue mix continues to become more diversified as other sectors showed positive growth including, petrochemicals, natural gas, coal and metals and agriculture. The acquisition of Kingsman in the fourth quarter of 2012 also contributed to the growth in the agriculture sector. Platts represents 54% of total C&C revenue.

Excluding the impact of Aviation Week, Commercial markets revenue was up slightly in the year as increases at J.D. Power offset revenue declines at McGraw-Hill Construction. Revenue at J.D. Power for 2013 represented a record revenue year. Revenue growth was due to strong demand in China for auto consulting engagements, growth in U.S. auto driven by additional consulting and proprietary engagements and growth in the U.S. Power Information Network® ("PIN"). PIN provides real-time automotive information and decision-support tools based on the collection and analysis of daily new- and used-vehicle retail transaction data from thousands of automotive franchises. International revenue at J.D. Power increased 13% for the year as compared to 2012. The Asia-Pacific region represents approximately 31% of J.D. Power's total revenue.

McGraw-Hill Construction's revenue was down primarily driven by declines in their subscription business; however new analytic products and enhancements continue to show growth and customer retention improved over 2012. Media revenue at McGraw-Hill Construction also improved over 2012 due to strong growth in advertising and events. 2013 full year revenue performance is the best revenue growth performance for McGraw-Hill Construction since 2008.

2012

Revenue at C&C increased primarily due to continued demand for Platts’ proprietary content and by growth across our automotive sectors at J.D. Power, primarily in Asia and the United States.

Platts’ revenue grew by 17% and represents 50% of total C&C revenue with growth across all regions. This growth was mainly driven by strength in Platts’ market data and price assessment products across all commodity sectors, led by petroleum and natural gas. While petroleum is still the biggest driver, the revenue mix is becoming more diversified as metals and global trading services have shown strong growth year over year. Excluding recent acquisitions, annualized contract values for Platts' top 250 customers have increased 13% as compared to 2011 and those customers represent approximately 67% of Platts' total annualized contract value. The two strategic acquisitions in 2011, Bentek Energy LLC in January and Steel Business Briefing Group in July, also contributed to the increase in revenue at Platts. All commodity sectors have also shown very strong renewal rates for subscription products during the year.

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J.D. Power had revenue growth across their global automotive sectors, including automotive consulting and PIN. Growth occurred across the majority of regions, most notably China and Japan. International growth was 14% and represents 37% of the total revenue. Also contributing to the increase at J.D. Power was an increase in their roundtables and events as well as licensing revenue associated with syndicated studies.

Partially offsetting these increases at C&C were declines in McGraw-Hill Construction as market contraction declines have continued to impact revenue; however growth related to new products and enhancements is gaining traction.

Operating Profit

2013

Operating profit increased primarily due to higher revenue at Platts and J.D. Power as noted above. Growth at J.D. Power was also due to lower expenses primarily due to increased productivity and lower incentive costs. McGraw-Hill Construction has also contributed to the increase as decreases in the expenses driven by headcount, lower advertising and promotion expense and product investment savings have outpaced revenue declines. Additionally, the sale of Aviation Week during the third quarter of 2013 resulted in a pre-tax gain of $11 million. Partially offsetting the increases at Platts were additional headcount and other operating costs to support business growth.

2012

Operating profit increased primarily due to the revenue growth described above and a strong focus on the management of expenses across the brands. The nonrecurring items that impacted operating profit in the prior year also contributed to the increase in 2012. Offsetting the increase were additional costs primarily related to revenue growth, additional incentive costs at Platts and J.D. Power and restructuring charges of $12 million that were recorded in the second half of 2012, consisting primarily of employee severance costs related to a workforce reduction of approximately 110 positions.

Industry Highlights and Outlook

C&C expects to continue to invest in digital capabilities that will enable our brands to become more integrated, compete more effectively in the marketplace, and create a foundation for the development of new products and revenue streams. The segment expects to further expand its presence in selected markets and geographies to help drive growth.

The continuing growth in oil demand and the uncertainty of supply causes volatility in energy prices, which will drive market participant demand for Platts' proprietary content, including news, price assessments and analytics. The International Energy Agency projects that world oil consumption will rise to 92.4 million barrels per day in 2014, a gain of 1.2 million barrels per day compared to 2013. In 2014, Platts will continue to invest in technology and customer engagement activities to seek to drive additional revenue growth across all commodity sectors. They will also seek to continue to leverage the capabilities and content from recent acquisitions and expand into adjacent markets. Similar to 2013, they expect to continue to introduce a number of new products and price assessments within all commodity sectors. Platts will also seek to continue to ensure readiness for adherence to the International Organization of Securities Commissions ("IOSCO") Principles and while the Principles focus on oil, Platts is ensuring that processes related to all commodities are in adherence with the Principles.

Demand for our automotive studies is driven by the performance of the automotive industry. In 2013, global and U.S. light vehicle sales increased approximately 4% and 8%, respectively, compared to 2012, with growth across most primary markets except Europe, India and Russia. For 2014, J.D. Power projects growth for global and U.S. light vehicles sales of 5% and 4%, respectively. In 2014, J.D. Power will strive to grow the core business by strengthening their benchmark studies, leveraging new initiatives to drive operational efficiencies and enhance customer delivery and increasing the distribution of their syndicated studies. In 2013, international growth was driven by auto in Asia-Pacific, particularly in China. International growth will also continue to be a key focus in 2014 as they will look to extend product offerings by further expanding their PIN business into China and exploring growth opportunities in Latin America.

Demand for our construction offerings is primarily dependent on the non-residential construction industry. Non-residential building construction in 2013 increased 7% from a year ago, with growth for commercial buildings, up 16%, and manufacturing facilities, up 36%. Residential building climbed 24% compared to 2012. Non-building construction in 2013 fell 12% from prior year, as a 57% decline in electric utilities offset a 9% gain in public works. In 2014, total construction starts are forecast to rise 9% with residential building up 22% and non-residential building up 8%, with the latter helped by a 17% increase for commercial building. McGraw-Hill Construction will continue to focus on expense management in 2014 and new business growth should begin to outweigh the historical loss of certain strategic accounts.

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Legal and Regulatory Environment

For a further discussion of the legal and regulatory environment see Note 12 – Commitments and Contingencies to our consolidated financial statements.

LIQUIDITY AND CAPITAL RESOURCES

We continue to maintain a strong financial position. Our primary source of funds for operations is cash from our businesses and our core businesses have been strong cash generators. In 2014, cash on hand, cash flows from operations and availability under our existing credit facility are expected to be sufficient to meet any additional operating and recurring cash needs into the foreseeable future. We use our cash for a variety of needs, including among others: ongoing investments in our businesses, strategic acquisitions, share repurchases, dividends, repayment of debt, capital expenditures and investment in our infrastructure.

Cash Flow Overview

Cash and cash equivalents were $1.5 billion as of December 31, 2013, an increase of $782 million as compared to December 31, 2012, and consisted of domestic cash of $695 million and cash held abroad of $847 million. Typically, cash held outside the U.S. is anticipated to be utilized to fund international operations or to be reinvested outside of the U.S., as a significant portion of our opportunities for growth in the coming years is expected to be abroad. In the event funds from international operations are needed to fund operations in the U.S., we would be required to accrue for and pay taxes in the U.S. to repatriate these funds.

(in millions)	Years ended December 31,
	2013			2012			2011
Net cash provided by (used for):
Operating activities from continuing operations	$	816		$	747		$	924
Investing activities from continuing operations	(130		)	(247		)	(271		)
Financing activities from continuing operations	(1,743		)	(905		)	(1,660		)

In 2013, free cash flow of $624 million was relatively flat compared to $626 million in 2012. The slight decrease was a result of higher dividends and payments to noncontrolling interests and an increase in capital expenditures, partially offset by the increase in cash flow from operating activities discussed below. Free cash flow is a non-GAAP financial measure and reflects our cash flow provided by operating activities less capital expenditures and dividends and other payments paid to noncontrolling interests. Capital expenditures include purchases of property and equipment and additions to technology projects. See “Reconciliation of Non-GAAP Financial Information” below for a reconciliation of cash flow provided by operating activities, the most directly comparable U.S. GAAP financial measure, to free cash flow.

Operating activities

Cash provided by operating activities increased $69 million to $816 million in 2013. The increase is mainly due to higher operating results and improved cash collections in 2013 impacting accounts receivable. These increases were partially offset by a tax payment made in the first quarter of 2013 as compared to the fourth quarter of 2012, our legal settlements and higher incentive compensation payments in 2013 reflecting greater achievement against targeted results in 2012 as compared to 2011.

Cash provided by operating activities decreased $177 million to $747 million in 2012, mainly due to an increase in accounts receivable as a result of higher billings at S&P Ratings, S&P Indices and S&P Capital IQ in 2012 compared to 2011 and higher pension plan contributions in 2012, partially offset by higher income taxes payable as the IRS extended the due date for the fourth quarter estimated income tax payment until the first quarter of 2013, and higher payments to vendors in 2011.

Investing activities

Our cash outflows from investing activities are primarily for acquisitions and capital expenditures, while cash inflows are primarily from dispositions.

Cash used for investing activities decreased $117 million to $130 million for 2013, primarily due to a lower amount of cash paid for acquisitions and higher proceeds from dispositions primarily due to our sale of Aviation Week and the sale of an equity investment held by CRISIL. These decreases were partially offset by an increase related to cash outflows for the purchase of short-term investments in 2013 compared to cash inflows from short-term investments in 2012.

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Cash used for investing activities decreased $24 million to $247 million for 2012, primarily due to a higher amount of cash inflows from short-term investments and a lower amount of cash paid for acquisitions, partially offset by lower proceeds from dispositions due to the sale of our interest in LinkedIn Corporation in 2011.

Refer to Note 2 – Acquisitions and Divestitures to our consolidated financial statements for further information.

Financing activities

Our cash outflows from financing activities consist primarily of share repurchases, dividends and repayment of debt, while cash inflows are primarily inflows from commercial paper borrowings and proceeds from the exercise of stock options.

Cash used for financing activities increased $838 million to $1.7 billion in 2013. This increase is primarily attributable to an increase in cash used for share repurchases, the repayment of short-term debt in the first quarter of 2013 and the purchase of CRISIL equity shares in the third quarter of 2013. These increases were partially offset by a decrease in cash used for dividends paid to shareholders due to a special dividend paid in 2012 and the payment related to the maturity of our $400 million, 5.375% Senior Notes in November of 2012.

Cash used for financing activities decreased $755 million to $905 million in 2012. The decrease is primarily attributable to a decrease in cash used for share repurchases, partially offset by an increase in dividends paid to shareholders due to a special dividend payment in 2012.

During 2013, we used cash to repurchase 16.8 million shares for $978 million, including commissions. The average price per share, excluding commissions, was $58.36. An additional 0.1 million shares were repurchased in the fourth quarter of 2013 for approximately $10 million, which settled in January of 2014. Including these additional shares, we utilized cash to repurchase shares at an average price of $58.52, excluding commissions. During 2012, we used cash to repurchase 6.8 million shares for $295 million, including commissions. The average price per share, excluding commissions, was $50.35. During 2011, we utilized cash to repurchase 34.7 million shares for $1.5 billion, including commissions. The average price per share, excluding commissions, was $40.48. The average price per share for 2012 and 2011 does not include the accelerated share repurchase transactions as discussed in more detail in Note 8 – Equity to our consolidated financial statements. The repurchased shares may be 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.

On December 4, 2013, the Board of Directors approved a new stock repurchase program authorizing the purchase of up to 50 million shares (the “2013 Repurchase Program”), which was approximately 18% of the total shares of our outstanding common stock at that time. The 2013 Repurchase Program has no expiration date and purchases under this program may be made from time to time on the open market and in private transactions, depending on market conditions. As of December 31, 2013, 50 million shares remained available under the 2013 Repurchase Program.

Discontinued Operations

Cash flows from discontinued operations reflects the classification of MHE and the Broadcasting Group as discontinued operations.

Cash used for operating activities from discontinued operations was $265 million compared to cash provided by operating activities of $520 million in 2012 as a result of the completion of the sale of MHE that occurred on March 22, 2013. Cash flows provided by operating activities from discontinued operations increased $100 million to $520 million in 2012 compared to 2011. The increase in 2012 is primarily due to a reduction in accounts receivables as a result of lower sales year over year at MHE, higher unearned revenue at School Education Group and lower inventory purchases.

Cash provided by investing activities from discontinued operations was $2.1 billion in 2013 compared to cash used for investing activities from discontinued operations of $198 million in 2012. The increase in 2013 is primarily due to proceeds received from the sale of MHE in 2013. Cash used for investing activities from discontinued operations of $198 million in 2012 compared to cash provided by investing activities from discontinued operations of $25 million in 2011, primarily due to proceeds received for the sale of the Broadcasting Group in 2011.

Cash used for financing activities increased $13 million to $25 million in 2013 and increased $8 million to $12 million in 2012.

Additional Financing

Currently, we have the ability to borrow a total of $1.0 billion through our commercial paper program, which is supported by our credit facility described below. As of December 31, 2013, there were no commercial paper borrowings outstanding. In connection with the December 2012 special dividend in the amount of $2.50 per share on our common stock, we utilized our commercial

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paper program and as a result, commercial paper borrowings outstanding as of December 31, 2012 totaled $457 million with an average interest rate and term of 0.48% and 28 days.

On June 19, 2013, we entered into a $1.0 billion four-year credit agreement (our “credit facility”) that will terminate on June 19, 2017. This credit facility replaced our $1.2 billion three-year credit facility that was scheduled to terminate on July 30, 2013. The previous credit facility was canceled immediately after the new credit facility became effective. There were no outstanding borrowings under the previous credit facility when it was replaced.

We pay a commitment fee of 20 to 45 basis points for our credit facility, depending on our indebtedness to cash flow ratio, whether or not amounts have been borrowed and currently pay a commitment fee of 25 basis points. The interest rate on borrowings under our credit facility is, at our option, calculated using rates that are primarily based on either the prevailing London Inter-Bank Offer Rate, the prime rate determined by the administrative agent or the Federal funds rate. For certain borrowings under this credit facility there is also a spread based on our indebtness to cash flow ratio added to the applicable rate.

Our credit facility contains certain covenants. The only financial covenant requires that our indebtedness to cash flow ratio, as defined in our credit facility, is not greater than 3.25 to 1, and this covenant has never been exceeded.

On February 7, 2013, Fitch Ratings downgraded our credit rating to BBB+ from A- and placed our ratings on Rating Watch Negative. There has been no change to our short-term / commercial paper rating of F2 from Fitch Ratings. On February 14, 2013, Moody's Investors Service downgraded our credit rating from A3 to Baa2 with negative outlook. In March 2013, upon the completion of the sale of McGraw-Hill Education, Moody's withdrew our credit ratings (due to Moody's own business reasons).

Dividends

On January 29, 2014, the Board of Directors approved an increase in the quarterly common stock dividend from $0.28 per share to $0.30 per share.

On December 6, 2012, our Board of Directors approved a special dividend in the amount of $2.50 per share on our common stock, payable on December 27, 2012 to shareholders on record on December 18, 2012.

Contractual Obligations

We typically have various contractual obligations, which are recorded as liabilities in our consolidated balance sheets, while other items, such as certain purchase commitments and other executory contracts, are not recognized, but are disclosed herein. For example, we are contractually committed to contracts for information-technology outsourcing, certain enterprise-wide information-technology software licensing and maintenance and make certain minimum lease payments for the use of property under operating lease agreements.

We believe that the amount of cash and cash equivalents on hand, cash flow expected from operations and availability under our credit facility will be adequate for us to execute our business strategy and meet anticipated requirements for lease obligations, capital expenditures, working capital and debt service for 2014.

The following table summarizes our significant contractual obligations and commercial commitments as of December 31, 2013, over the next several years that relate to our continuing operations. Additional details regarding these obligations are provided in the notes to our consolidated financial statements, as referenced in the footnotes to the table:

(in millions)	Less than 1 Year		1-3 Years		4-5 Years		After 5 Years		Total
Debt: 1
Principal payments	$	—	$	—	$	400	$	399	$	799
Interest payments	50		99		76		498		723
Operating leases 2	161		278		189		238		866
Purchase obligations and other 3	100		146		65		—		311
Total contractual cash obligations	$	311	$	523	$	730	$	1,135	$	2,699

¹  Our debt obligations are described in Note 5 – Debt to our consolidated financial statements.

²  Amounts shown include taxes and escalation payments, see Note 12 – Commitments and Contingencies to our consolidated financial statements for further discussion on our operating lease obligations.

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³  Other consists primarily of commitments for unconditional purchase obligations in contracts for information-technology outsourcing and certain enterprise-wide information-technology software licensing and maintenance.

As of December 31, 2013, we had $82 million of liabilities for unrecognized tax benefits. We have excluded the liabilities for unrecognized tax benefits from our contractual obligations table because reasonable estimates of the timing of cash settlements with the respective taxing authorities are not practicable.

As of December 31, 2013, we have recorded $810 million for our redeemable noncontrolling interest in our S&P Dow Jones Indices LLC partnership discussed in Note 2 – Acquisitions and Divestitures to our consolidated financial statements.  Specifically, this amount relates to the put option under the terms of the operating agreement of S&P Dow Jones Indices LLC, whereby, after December 31, 2017, CME Group and CGIS will have the right at any time to sell, and we are obligated to buy, at least 20% of their share in S&P Dow Jones Indices LLC. We have excluded this amount from our contractual obligations table because we are uncertain as to the timing and the ultimate amount of the potential payment we may be required to make.

We make contributions to our pension and postretirement plans in order to satisfy minimum funding requirements as well as additional contributions that we consider appropriate to improve the funded status of our plans. During 2013, we contributed $27 million and $9 million to our domestic and international retirement and postretirement plans, respectively. Expected employer contributions in 2014 are $23 million and $10 million for our domestic and international retirement and postretirement plans, respectively. In 2014, we may elect to make additional non-required contributions depending on investment performance and the pension plan status. See Note 6 – Employee Benefits to our consolidated financial statements for further discussion.

Off-Balance Sheet Arrangements

As of December 31, 2013 and 2012, we did not have any relationships with unconsolidated entities, such as entities often referred to as specific purpose or variable interest entities where we are the primary beneficiary, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As such we are not exposed to any financial liquidity, market or credit risk that could arise if we had engaged in such relationships.

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

Free cash flow is a non-GAAP financial measure and reflects our cash flow provided by operating activities less capital expenditures and dividends and other payments paid to noncontrolling interests. Capital expenditures include purchases of property and equipment and additions to technology projects. Our cash flow provided by operating activities is the most directly comparable U.S. GAAP financial measure to free cash flow.

We believe the presentation of free cash flow allows our investors to evaluate the cash generated from our underlying operations in a manner similar to the method used by management. We use free cash flow to conduct and evaluate our business because we believe it typically presents a more conservative measure of cash flows since capital expenditures and dividends and other payments paid to noncontrolling interests are considered a necessary component of ongoing operations. Free cash flow is useful for management and investors because it allows management and investors to evaluate the cash available to us to service debt, make strategic acquisitions and investments, repurchase stock and fund ongoing operation and working capital needs.

The presentation of free cash flow is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Free cash flow, as we calculate it, may not be comparable to similarly titled measures employed by other companies. The following table presents a reconciliation of our cash flow provided by operating activities to free cash flow:

(in millions)	Years ended December 31,
	2013			2012			2011
Cash provided by operating activities	$	816		$	747		$	924
Capital expenditures	(117		)	(97		)	(92		)
Dividends and other payments paid to noncontrolling interests	(75		)	(24		)	(23		)
Free cash flow	$	624		$	626		$	809

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CRITICAL ACCOUNTING ESTIMATES

Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. Unless otherwise indicated, all discussion and analysis of our financial condition and results of operations relate to our continuing operations.

On an ongoing basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowance for doubtful accounts, valuation of long-lived assets, goodwill and other intangible assets, pension plans, incentive compensation and stock-based compensation, income taxes, contingencies and redeemable noncontrolling interests. We base our estimates on historical experience, current developments and on various other assumptions that we believe to be reasonable under these circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that cannot readily be determined from other sources. There can be no assurance that actual results will not differ from those estimates.

Management considers an accounting estimate to be critical if it required assumptions to be made that were uncertain at the time the estimate was made and changes in the estimate or different estimates could have a material effect on our results of operations. Management has discussed the development and selection of our critical accounting estimates with the Audit Committee of our Board of Directors. The Audit Committee has reviewed our disclosure relating to them in this MD&A.

We believe the following critical accounting policies require us to make significant judgments and estimates in the preparation of our consolidated financial statements:

Revenue recognition

Revenue is recognized as it is earned when goods are shipped to customers or services are rendered. We consider amounts to be earned once evidence of an arrangement has been obtained, services are performed, fees are fixed or determinable and collectability is reasonably assured. Revenue relating to products that provide for more than one deliverable is recognized based upon the relative fair value to the customer of each deliverable as each deliverable is provided. Revenue relating to agreements that provide for more than one service is recognized based upon the relative fair value to the customer of each service component as each component is earned. If the fair value to the customer for each service is not objectively determinable, we make our best estimate of the services’ stand alone selling price and recognize revenue as earned as the services are delivered. The allocation of consideration received from multiple element arrangements that involve initial assignment of ratings and the future surveillance of ratings is determined through an analysis that considers cash consideration that would be received for instances when the service components are sold separately. In such cases, we defer portions of rating fees that we estimate will be attributed to future surveillance and recognize the deferred revenue ratably over the estimated surveillance periods. Advertising revenue is recognized when the page is run. Subscription income is recognized over the related subscription period.

For the years ended December 31, 2013, 2012 and 2011, no significant changes have been made to the underlying assumptions related to estimates of revenue or the methodologies applied. Based on our current outlook these assumptions are not expected to significantly change in 2014.

Allowance for doubtful accounts

The allowance for doubtful accounts reserve methodology is based on historical analysis, a review of outstanding balances and current conditions. In determining these reserves, we consider, amongst other factors, the financial condition and risk profile of our customers, areas of specific or concentrated risk as well as applicable industry trends or market indicators. The impact on operating profit for a one percentage point change in the allowance for doubtful accounts is approximately $10 million.

For the years ended December 31, 2013, 2012 and 2011, we made no material changes in our assumptions regarding the determination of the allowance for doubtful accounts. Based on our current outlook these assumptions are not expected to significantly change in 2014.

Accounting for the impairment of long-lived assets (including other intangible assets)

We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to current forecasts of undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair value is determined based on market evidence, discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets.

42

During the fourth quarter of 2013, we entered the final stages of discussions to sell the facilities and associated infrastructure equipment of one of our data centers to a third party, causing us to recognize an impairment charge of $36 million for the year ended December 31, 2013 to adjust the value facilities and associated infrastructure classified as held for sale to their fair value. Additionally, we incurred a $26 million non-cash impairment charge associated with the an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

There were no material impairments of long-lived assets for the years ended December 31, 2012 and 2011.

Goodwill and indefinite-lived intangible assets

Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. As of December 31, 2013 and 2012, the carrying value of goodwill and other indefinite-lived intangible assets was $2.0 billion and $2.1 billion, respectively. Goodwill and other intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually during the fourth quarter each year or more frequently if events or changes in circumstances indicate that the asset might be impaired.

Goodwill

As part of our annual impairment test of our 4 reporting units, we initially perform a qualitative analysis evaluating whether any events and circumstances occurred that provide evidence that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount. Our qualitative assessment included, but was not limited to, consideration of macroeconomic conditions, industry and market conditions, cost factors, cash flows, changes in key Company personnel and our share price. If, based on our evaluation of the events and circumstances that occurred during the year we do not believe that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the fair value of any of our reporting units is less than its respective carrying amount we perform a two-step quantitative impairment test. For 2013, based on our qualitative assessments, we determined that it is more likely than not that our reporting units’ fair value was greater than their respective carrying amounts. Our qualitative assessment included, but was not limited to, consideration of macroeconomic conditions, industry and market conditions, cost factors, cash flows, changes in key Company personnel and our share price.

If the fair value of the reporting unit is less than the carrying value, a second step is performed which compares the implied fair value of the reporting unit's goodwill to the carrying value of the goodwill. The implied fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than the carrying value, the difference is recognized as an impairment charge.

Indefinite-Lived Intangible Assets

We evaluate the recoverability of indefinite-lived intangible assets by first performing a qualitative analysis evaluating whether any events and circumstances occurred that provide evidence that it is more likely than not that the indefinite-lived asset is impaired. If, based on our evaluation of the events and circumstances that occurred during the year we do not believe that it is more likely than not that the indefinite-lived asset is impaired, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the indefinite-lived asset is impaired a quantitative impairment test is performed. If necessary, the impairment test is performed by comparing the estimated fair value of the intangible asset to its carrying value. If the indefinite-lived intangible asset carrying value exceeds its fair value, an impairment analysis is performed using the income approach. The fair value of loss is recognized in an amount equal to that excess. Significant judgments inherent in these analyses include estimating the amount and timing of future cash flows and the selection of appropriate discount rates, royalty rates and long-term growth rate assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for this indefinite-lived intangible asset and could result in an impairment charge, which could be material to our financial position and results of operations.

We performed our impairment assessment of goodwill and indefinite-lived intangible assets at our S&P Ratings, S&P Capital IQ, S&P DJ Indices and C&C operating segments and concluded that no impairment existed for the years ended December 31, 2013, 2012, and 2011.

Retirement plans and postretirement healthcare and other benefits

Our employee pension and other postretirement benefit costs and obligations are dependent on assumptions concerning the outcome of future events and circumstances, including compensation increases, long-term return on pension plan assets, healthcare cost trends, discount rates and other factors. In determining such assumptions, we consult with outside actuaries and other advisors where deemed appropriate. In accordance with relevant accounting standards, if actual results differ from our assumptions, such differences are deferred and amortized over the estimated future working life of the plan participants. While we believe that the

43

assumptions used in these calculations are reasonable, differences in actual experience or changes in assumptions could affect the expense and liabilities related to our pension and other postretirement benefits.

The following is a discussion of some significant assumptions that we make in determining costs and obligations for pension and other postretirement benefits:

• Discount rate assumptions are based on current yields on high-grade corporate long-term bonds.

• Healthcare cost trend assumptions are based on historical market data, the near-term outlook and an assessment of likely long-term trends.

• The expected return on assets assumption is calculated based on the plan’s asset allocation strategy and projected market returns over the long-term.

Our discount rate and return on asset assumptions used to determine the net periodic pension and postretirement benefit cost on our U.S. retirement plans are as follows:

	Retirement Plans						Postretirement Plans
January 1	2014		2013		2012		2014		2013		2012
Discount rate 1	5.0	%	4.1	%	5.1	%	4.20	%	3.45	%	4.45	%
Return on assets	7.125	%	7.25	%	7.75	%
Weighted-average healthcare cost rate							7.0	%	7.5	%	8.0	%

¹  The discount rate assumption used to determine the net periodic pension and postretirement benefit cost on our U.S. retirement plans on January 1 is based on the discount rate assumption used to determine the benefit obligation as of December 31 of the previous year.

Stock-based compensation

Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, which typically is the vesting period. Stock-based compensation is classified as both operating-related expense and selling and general expense in our consolidated statements of income.

We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted (in 2012, stock options were not granted as part of employees' total stock-based incentive awards):

	Years ended December 31,
	2013		2012	2011
Risk-free average interest rate	0.1 - 2.9%		N/A	0.2 - 3.5%
Dividend yield	2.09 - 2.07%		N/A	2.5 - 3.0%
Volatility	29 - 45%		N/A	21 - 51%
Expected life (years)	6.1 - 6.2		N/A	6.1 - 6.2
Weighted-average grant-date fair value per option	$	14.46	N/A	$	10.61

Because lattice-based option-pricing models incorporate ranges of assumptions, those ranges are disclosed. These assumptions are based on multiple factors, including historical exercise patterns, post-vesting termination rates, expected future exercise patterns and the expected volatility of our stock price. The risk-free interest rate is the imputed forward rate based on the U.S. Treasury yield at the date of grant. We use the historical volatility of our stock price over the expected term of the options to estimate the expected volatility. The expected term of options granted is derived from the output of the lattice model and represents the period of time that options granted are expected to be outstanding.

Income taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize liabilities for uncertain tax positions taken or expected to be taken in income tax returns. Accrued interest and penalties related to unrecognized tax benefits are recognized in interest expense and operating expense, respectively.

44

Judgment is required in determining our provision for income taxes, deferred tax assets and liabilities and unrecognized tax benefits. In determining the need for a valuation allowance, the historical and projected financial performance of the operation that is recording a net deferred tax asset is considered along with any other pertinent information.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions, and we are routinely under audit by many different tax authorities. We believe that our accrual for tax liabilities is adequate for all open audit years based on our assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. It is possible that examinations will be settled prior to December 31, 2014. If any of these tax audit settlements do occur within that period we would make any necessary adjustments to the accrual for unrecognized tax benefits. Until formal resolutions are reached between us and the tax authorities, the determination of a possible audit settlement range with respect to the impact on unrecognized tax benefits is not practicable. On the basis of present information, it is our opinion that any assessments resulting from the current audits will not have a material effect on our consolidated financial statements.

We have determined that the undistributed earnings of our foreign subsidiaries are permanently reinvested within those foreign operations. Accordingly, we have not provided deferred income taxes on these indefinitely reinvested earnings. A future distribution by the foreign subsidiaries of these earnings could result in additional tax liability, which may be material to our future reported results, financial position and cash flows.

For the years ended December 31, 2013, 2012, and 2011, we made no material changes in our assumptions regarding the determination of the provision for income taxes. However, certain events could occur that would materially affect our estimates and assumptions regarding deferred taxes. Changes in current tax laws and applicable enacted tax rates could affect the valuation of deferred tax assets and liabilities, thereby impacting our income tax provision.

Contingencies

We are subject to a number of lawsuits and claims that arise in the ordinary course of business. We recognize a liability for such contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. We continually assess the likelihood of any adverse judgments or outcomes to our contingencies, as well as potential amounts or ranges of probable losses, and recognize a liability, if any, for these contingencies based on an analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Because many of these matters are resolved over long periods of time, our estimate of liabilities may change due to new developments, changes in assumptions or changes in our strategy related to the matter.

Redeemable Noncontrolling Interest

The fair value component of the redeemable noncontrolling interest in S&P DJ Indices business is based on a combination of an income and market valuation approach. Our income and market valuation approaches may incorporate Level 3 measures for instances when observable inputs are not available, including assumptions related to expected future net cash flows, long-term growth rates, the timing and nature of tax attributes, and the redemption features.

RECENTACCOUNTING STANDARDS

See Note 1 – Accounting Policies, to the consolidated financial statements for a detailed description of recent accounting standards. We do not expect these recent accounting standards to have a material impact on our results of operations, financial condition, or liquidity in future periods.

Item 7a. Quantitative and Qualitative Disclosures about Market Risk

There have been no significant changes in our exposure to market risk during the year ended December 31, 2013. Our exposure to market risk includes changes in foreign exchange rates. We have operations in various foreign countries where the functional currency is primarily the local currency. For international operations that are determined to be extensions of the parent company, the U.S. dollar is the functional currency. We typically have naturally hedged positions in most countries from a local currency perspective with offsetting assets and liabilities. As of December 31, 2013, we have entered into an immaterial amount of foreign exchange forwards to hedge the effect of adverse fluctuations in foreign currency exchange rates. We have not entered into any derivative financial instruments for speculative purposes.

45

Item 8. Consolidated Financial Statements and Supplementary Data

TABLE OF CONTENTS

	Page
Reports of Independent Registered Public Accounting Firm	47
Consolidated Statements of Income	49
Consolidated Statements of Comprehensive Income	50
Consolidated Balance Sheets	51
Consolidated Statements of Cash Flows	52
Consolidated Statements of Equity	53
Notes to the Consolidated Financial Statements	54
1 Accounting Policies	54
2 Acquisitions and Divestitures	58
3 Goodwill and Other Intangible Assets	63
4 Taxes on Income	65
5 Debt	67
6 Employee Benefits	68
7 Stock-Based Compensation	75
8 Equity	77
9 Earnings per Share	79
10 Restructuring	80
11 Segment and Geographic Information	81
12 Commitments and Contingencies	83
13 Quarterly Financial Information	87

46

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of McGraw Hill Financial, Inc.

We have audited the accompanying consolidated balance sheets of McGraw Hill Financial, Inc. (the "Company") as of December 31, 2013 and 2012, and the related consolidated statements of income, comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2013. Our audits also included the financial statement schedule listed in Item 15(a)(2). These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of McGraw Hill Financial, Inc. at December 31, 2013 and 2012, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2013, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), McGraw Hill Financial, Inc.’s internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (1992 framework) and our report dated February 7, 2014 expressed an unqualified opinion thereon.

/s/ ERNST & YOUNG LLP

New York, New York

February 7, 2014

47

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of McGraw Hill Financial, Inc.

We have audited McGraw Hill Financial, Inc.’s (the "Company") internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (1992 framework) (the COSO criteria). McGraw Hill Financial, Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, McGraw Hill Financial, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of McGraw Hill Financial, Inc. as of December 31, 2013 and 2012, and the related consolidated statements of income, comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2013 and our report dated February 7, 2014 expressed an unqualified opinion thereon.

/s/ ERNST & YOUNG LLP

New York, New York

February 7, 2014

48

Consolidated Statements of Income

(in millions, except per share data)	Year Ended December 31,
	2013			2012			2011
Revenue	$	4,875		$	4,450		$	3,954
Expenses:
Operating-related expenses	1,584			1,486			1,387
Selling and general expenses	1,737			1,664			1,377
Depreciation	86			93			93
Amortization of intangibles	51			48			33
Total expenses	3,458			3,291			2,890
Other loss (income)	12			(52		)	(13		)
Operating profit	1,405			1,211			1,077
Interest expense, net	59			81			77
Income from continuing operations before taxes on income	1,346			1,130			1,000
Provision for taxes on income	443			404			374
Income from continuing operations	903			726			626
Discontinued operations, net of tax:
(Loss) income from discontinued operations	(26		)	(234		)	234
Gain on sale of discontinued operations (includes $(75) accumulated other comprehensive income reclassifications in 2013 for foreign currency translation adjustment)	589			—			74
Discontinued operations, net	563			(234		)	308
Net income	1,466			492			934
Less: net income from continuing operations attributable to noncontrolling interests	(91		)	(50		)	(19		)
Less: net income from discontinued operations attributable to noncontrolling interests	1			(5		)	(4		)
Net income attributable to McGraw Hill Financial, Inc.	$	1,376		$	437		$	911
Amounts attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$	812		$	676		$	607
Income (loss) from discontinued operations	564			(239		)	304
Net income	$	1,376		$	437		$	911
Earnings per share attributable to McGraw Hill Financial, Inc. common shareholders:
Basic:
Income from continuing operations	$	2.96		$	2.43		$	2.03
Income (loss) from discontinued operations	2.05			(0.86		)	1.02
Net income	$	5.01		$	1.57		$	3.05
Diluted:
Income from continuing operations	$	2.90		$	2.37		$	2.00
Income (loss) from discontinued operations	2.01			(0.84		)	1.00
Net income	$	4.91		$	1.53		$	3.00
Average number of common shares outstanding:
Basic	274.5			278.6			298.1
Diluted	279.8			284.6			303.6
Dividend declared per common share	$	1.12		$	1.02		$	1.00
Special dividend declared per common share	$	—		$	2.50		$	—

See accompanying notes to the consolidated financial statements.

49

Consolidated Statements of Comprehensive Income

(in millions)	Year Ended December 31,
	2013			2012			2011
Net income	$	1,466		$	492		$	934
Other comprehensive income:
Foreign currency translation adjustment	93			29			(35		)
Income tax effect	(2		)	(19		)	11
	91			10			(24		)
Pension and other postretirement benefit plans	385			(164		)	(45		)
Income tax effect	(154		)	63			9
	231			(101		)	(36		)
Unrealized gain (loss) on investment and forward exchange contract	2			(4		)	(12		)
Income tax effect	(2		)	2			4
	—			(2		)	(8		)
Comprehensive income	1,788			399			866
Less: comprehensive income attributable to nonredeemable noncontrolling interests	(18		)	(20		)	(13		)
Less: comprehensive income attributable to redeemable noncontrolling interests	(73		)	(34		)	—
Comprehensive income attributable to McGraw Hill Financial, Inc.	$	1,697		$	345		$	853

See accompanying notes to the consolidated financial statements.

50

Consolidated Balance Sheets

(in millions)	December 31,
	2013			2012
ASSETS
Current assets:
Cash and equivalents	$	1,542		$	760
Short-term investments	18			1
Accounts receivable, net of allowance for doubtful accounts: 2013 - $52; 2012 - $54	979			954
Deferred income taxes	108			117
Prepaid and other current assets	228			127
Assets held for sale	61			1,940
Total current assets	2,936			3,899
Property and equipment:
Buildings and leasehold improvements	436			439
Equipment and furniture	430			701
Total property and equipment	866			1,140
Less: accumulated depreciation	(617		)	(772		)
Property and equipment, net	249			368
Goodwill	1,412			1,438
Other intangible assets, net	1,033			1,081
Asset for pension benefits	261			98
Other non-current assets	170			168
Total assets	$	6,061		$	7,052
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	219		$	249
Accrued compensation and contributions to retirement plans	427			453
Short-term debt	—			457
Income taxes currently payable	15			158
Unearned revenue	1,309			1,229
Other current liabilities	402			457
Liabilities held for sale	—			664
Total current liabilities	2,372			3,667
Long-term debt	799			799
Pension and other postretirement benefits	264			529
Deferred income taxes	205			56
Other non-current liabilities	267			351
Total liabilities	3,907			5,402
Redeemable noncontrolling interest	810			810
Commitments and contingencies (Note 12)
Equity:
Common stock, $1 par value: authorized - 600 million shares; issued - 412 million shares in 2013 and 2012	412			412
Additional paid-in capital	447			492
Retained income	7,384			6,525
Accumulated other comprehensive loss	(196		)	(517		)
Less: common stock in treasury - at cost: 2013 - 141 million shares; 2012 - 133 million shares	(6,746		)	(6,145		)
Total equity – controlling interests	1,301			767
Total equity – noncontrolling interests (including 2013 - $25 and 2012 - $25 attributable to discontinued operations)	43			73
Total equity	1,344			840
Total liabilities and equity	$	6,061		$	7,052

See accompanying notes to the consolidated financial statements.

51

Consolidated Statements of Cash Flows

(in millions)	Year Ended December 31,
	2013			2012			2011
Operating Activities:
Net income	$	1,466		$	492		$	934
Less: income (loss) from discontinued operations	563			(234		)	308
Net income from continuing operations	903			726			626
Adjustments to reconcile income from continuing operations to cash provided by operating activities from continuing operations:
Depreciation	86			93			93
Amortization of intangibles	51			48			33
Provision for losses on accounts receivable	22			32			6
Deferred income taxes	43			53			17
Stock-based compensation	99			93			77
Gain on dispositions, net	(24		)	—			(13		)
Other	136			16			63
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	(35		)	(239		)	14
Prepaid and other current assets	(29		)	3			(16		)
Accounts payable and accrued expenses	(93		)	60			(29		)
Unearned revenue	108			17			44
Other current liabilities	(89		)	(70		)	(52		)
Net change in prepaid / accrued income taxes	(238		)	119			55
Net change in other assets and liabilities	(124		)	(204		)	6
Cash provided by operating activities from continuing operations	816			747			924
Investing Activities:
Capital expenditures	(117		)	(97		)	(92		)
Acquisitions, including contingent payments, net of cash acquired	(47		)	(177		)	(194		)
Proceeds from dispositions	51			—			21
Changes in short-term investments	(17		)	27			(6		)
Cash used for investing activities from continuing operations	(130		)	(247		)	(271		)
Financing Activities:
(Payments on) / additions to short-term debt	(457		)	457			—
Payments on senior notes	—			(400		)	—
Dividends paid to shareholders	(308		)	(984		)	(296		)
Dividends and other payments paid to noncontrolling interests	(75		)	(24		)	(23		)
Repurchase of treasury shares	(978		)	(295		)	(1,500		)
Exercise of stock options	258			299			139
Contingent payments	(12		)	—			—
Purchase of additional CRISIL shares	(214		)	—			—
Excess tax benefits from share-based payments	43			42			20
Cash used for financing activities from continuing operations	(1,743		)	(905		)	(1,660		)
Effect of exchange rate changes on cash from continuing operations	(1		)	5			(10		)
Cash used for continuing operations	(1,058		)	(400		)	(1,017		)
Discontinued Operations:
Cash (used for) provided by operating activities	(265		)	520			420
Cash provided by (used for) investing activities	2,129			(198		)	25
Cash used for financing activities	(25		)	(12		)	(4		)
Effect of exchange rate changes on cash	1			3			(5		)
Effect of change in cash and equivalents	—			12			—
Cash provided by discontinued operations	1,840			325			436
Net change in cash and equivalents	782			(75		)	(581		)
Cash and equivalents at beginning of year	760			835			1,416
Cash and equivalents at end of year	$	1,542		$	760		$	835
Cash paid during the year for:
Interest (including discontinued operations)	$	50		$	77		$	71
Income taxes (including discontinued operations)	$	787		$	243		$	452

See accompanying notes to the consolidated financial statements.

52

Consolidated Statements of Equity

(in millions)	Common Stock $1 par		Additional Paid-in Capital			Retained Income			Accumulated Other Comprehensive Loss			Less: Treasury Stock			Total MHFI Equity			Noncontrolling Interests			Total Equity
Balance as of December 31, 2010	$	412	$	67		$	7,057		$	(367	)	$	4,958		$	2,211		$	81		$	2,292
Comprehensive income						911			(58		)				853			13			866
Dividends						(301		)							(301		)	(12		)	(313		)
Noncontrolling interest transactions			(3		)										(3		)	(4		)	(7		)
Share repurchases			(73		)							1,427			(1,500		)				(1,500		)
Employee stock plans, net of tax benefit			103									(145		)	248						248
Other															—			$	(2	)	(2		)
Balance as of December 31, 2011	$	412	$	94		$	7,667		$	(425	)	$	6,240		$	1,508		$	76		$	1,584
Comprehensive income1						437			(92		)				345			20			365
Dividends						(989		)							(989		)	(22		)	(1,011		)
Noncontrolling interest transactions			350			(573		)							(223		)				(223		)
Share repurchases			50									345			(295		)	(3		)	(298		)
Employee stock plans, net of tax benefit			(2		)							(440		)	438						438
Change in redemption value of redeemable noncontrolling interest						(17		)							(17		)				(17		)
Other															—			2			2
Balance as of December 31, 2012	$	412	$	492		$	6,525		$	(517	)	$	6,145		$	767		$	73		$	840
Comprehensive income 1						1,376			321						1,697			18			1,715
Dividends						(315		)							(315		)	(10		)	(325		)
Noncontrolling interest adjustments related to discontinued operations															—			(22		)	(22		)
Share repurchases												989			(989		)				(989		)
Employee stock plans, net of tax benefit			(45		)							(388		)	343						343
Change in redemption value of redeemable noncontrolling interest						11									11						11
Increase in CRISIL ownership						(216		)							(216		)	(17		)	(233		)
Other						3									3			1			4
Balance as of December 31, 2013	$	412	$	447		$	7,384		$	(196	)	$	6,746		$	1,301		$	43		$	1,344

¹ Excludes $73 million and $34 million in 2013 and 2012, respectively, attributable to redeemable noncontrolling interest.

See accompanying notes to the consolidated financial statements.

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Notes to the Consolidated Financial Statements

1. Accounting Policies

Nature of operations

McGraw Hill Financial, Inc. (together with its consolidated subsidiaries, the “Company,” the “Registrant,” “we,” “us” or “our”) is a leading content and analytics provider serving the capital, commodities and commercial markets. The capital markets include asset managers, banks, exchanges, issuers and financial advisors; the commodities markets include producers, traders and intermediaries within energy, metals, and agriculture; and the commercial markets include professionals and corporate executives within automotive, construction and marketing / research information services.

Our operations consist of four reportable segments: Standard & Poor’s Ratings (“S&P Ratings”), S&P Capital IQ, S&P Dow Jones Indices ("S&P DJ Indices") and Commodities & Commercial (“C&C”).

• S&P Ratings is an independent provider of credit ratings, research and analytics, offering investors and market participants information, ratings and benchmarks.

• S&P Capital IQ is a global provider of multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services.

• S&P DJ Indices is a global leading index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors.

• C&C consists of business-to-business companies specializing in commercial and commodities markets that deliver their customers access to high-value information, data, analytic services and pricing benchmarks.

See Note 11 – Segment and Geographic Information for further discussion on our operating segments, which are also our reportable segments.

We completed the sale of our McGraw-Hill Education business ("MHE") on March 22, 2013 and, accordingly, the results of operations of MHE have been reclassified to reflect the business as a discontinued operation for the year ended December 31, 2013 and all prior periods presented. The assets and liabilities of MHE have been removed from the consolidated balance sheet as of December 31, 2013 and classified as held for sale as of December 31, 2012. See Note 2 —Acquisitions and Divestitures for further discussion.

Discontinued Operations

In determining whether a group of assets disposed or to be disposed of should be presented as a discontinued operation, we make a determination of whether the group of assets being disposed of comprises a component of the entity; that is, whether it has historic operations and cash flows that can be clearly distinguished both operationally and for financial reporting purposes. We also determine whether the cash flows associated with the group of assets have been or will be eliminated from our ongoing operations as a result of the disposal transaction and whether we will have significant continuing involvement in the operations of the group of assets after the disposal transaction. If we conclude that the cash flows have been eliminated and we have no significant continuing involvement, then the results of operations of the group of assets being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from our continuing operating results in the consolidated financial statements. See Note 2 – Acquisitions and Divestitures for a summary of discontinued operations. Unless otherwise indicated, all disclosures and amounts in the notes to our consolidated financial statements relate to our continuing operations.

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 in the United States of America 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.

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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 $1.5 billion and $760 million as of December 31, 2013 and 2012, respectively. These investments are not subject to significant market risk.

Short-term investments

Short-term investments are securities with original maturities greater than 90 days that are available for use in our operations in the next twelve months. The short-term investments, primarily consisting of certificates of deposit, are classified as held-to-maturity and therefore are carried at cost. Interest and dividends are recorded into income when earned.

Accounts receivable

Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable, which include billings consistent with terms of contractual arrangements, are recorded at net realizable value.

Allowance for doubtful accounts

The allowance for doubtful accounts reserve methodology is based on historical analysis, a review of outstanding balances and current conditions. In determining these reserves, we consider, amongst other factors, the financial condition and risk profile of our customers, areas of specific or concentrated risk as well as applicable industry trends or market indicators.

Deferred technology costs

We capitalize certain software development and website implementation costs. Capitalized costs only include incremental, direct costs of materials and services incurred to develop the software after the preliminary project stage is completed, funding has been committed and it is probable that the project will be completed and used to perform the function intended. Incremental costs are expenditures that are out-of-pocket to us and are not part of an allocation or existing expense base. Software development and website implementation costs are expensed as incurred during the preliminary project stage. Capitalized costs are amortized from the year the software is ready for its intended use over its estimated useful life, three to seven years, using the straight-line method. Periodically, we evaluate the amortization methods, remaining lives and recoverability of such costs. Capitalized software development and website implementation costs are included in other non-current assets and are presented net of accumulated amortization. Gross deferred technology costs were $131 million and $115 million as of December 31, 2013 and 2012, respectively. Accumulated amortization of deferred technology costs was $71 million and $58 million as of December 31, 2013 and 2012, respectively.

Fair Value

Certain assets and liabilities are required to be recorded at fair value and classified within a fair value hierarchy based on inputs used when measuring fair value. We have an immaterial amount of forward exchange contracts that are adjusted to fair value on a recurring basis.

Other financial instruments, including cash and equivalents and short-term investments, are recorded at cost, which approximates fair value because of the short-term maturity and highly liquid nature of these instruments. The fair value of our long-term debt borrowings were $801 million and $916 million as of December 31, 2013 and 2012, respectively, and was estimated based on quoted market prices.

Accounting for the impairment of long-lived assets (including other intangible assets)

We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to current forecasts of undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair value is determined based on market evidence, discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets.

During the fourth quarter of 2013, we entered the final stages of discussions to sell the facilities and associated infrastructure equipment of one of our data centers to a third party, causing us to recognize a non-cash impairment charge of $36 million for the year ended December 31, 2013 when the facilities and associated infrastructure were reclassified as held for sale. Additionally, we incurred a $26 million non-cash impairment charge associated with an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

There were no material impairments of long-lived assets for the years ended December 31, 2012 and 2011.

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Goodwill and other indefinite-lived intangible assets

Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill and other intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually during the fourth quarter each year or more frequently if events or changes in circumstances indicate that the asset might be impaired. We have four reporting units with goodwill that are evaluated for impairment.

We initially perform a qualitative analysis evaluating whether any events and circumstances occurred or exist that provide evidence that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount. If, based on our evaluation we do not believe that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the fair value of any of our reporting units is less than their respective carrying amounts we perform a two-step quantitative impairment test.

When conducting the first step of our two step impairment test to evaluate the recoverability of goodwill at the reporting unit level, the estimated fair value of the reporting unit is compared to its carrying value including goodwill. Fair value of the reporting units are estimated using the income approach, which incorporates the use of a discounted free cash flow (“DCF”) analyses and are corroborated using the market approach, which incorporates the use of revenue and earnings multiples based on market data. The DCF analyses are based on the current operating budgets and estimated long-term growth projections for each reporting unit. Future cash flows are discounted based on a market comparable weighted average cost of capital rate for each reporting unit, adjusted for market and other risks where appropriate. In addition, we analyze any difference between the sum of the fair values of the reporting units and our total market capitalization for reasonableness, taking into account certain factors including control premiums.

If the fair value of the reporting unit is less than the carrying value, a second step is performed which compares the implied fair value of the reporting unit’s goodwill to the carrying value of the goodwill. The fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than the carrying value, the difference is recognized as an impairment charge.

We evaluate the recoverability of indefinite-lived intangible assets by first performing a qualitative analysis evaluating whether any events and circumstances occurred that provide evidence that it is more likely than not that the indefinite-lived asset is impaired. If, based on our evaluation of the events and circumstances that occurred during the year we do not believe that it is more likely than not that the indefinite-lived asset is impaired, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the indefinite-lived asset is impaired a quantitative impairment test is performed. If necessary, the impairment test is performed by comparing the estimated fair value of the intangible asset to its carrying value. If the indefinite-lived intangible asset carrying value exceeds its fair value, an impairment analysis is performed using the income approach. The fair value of loss is recognized in an amount equal to that excess.

Significant judgments inherent in these analyses include estimating the amount and timing of future cash flows and the selection of appropriate discount rates, royalty rates and long-term growth rate assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit and indefinite-lived intangible asset and could result in an impairment charge, which could be material to our financial position and results of operations.

We performed our impairment assessment of goodwill and indefinite-lived intangible assets and concluded that no impairment existed for the years ended December 31, 2013, and 2011. As further discussed in Note 2 – Acquisitions and Divestitures, we determined that during the year ended December 31, 2012, the goodwill at MHE's School Education Group was impaired.

Foreign currency translation

We have operations in many foreign countries. For most international operations, the local currency is the functional currency. For international operations that are determined to be extensions of the parent company, the U.S. dollar is the functional currency. For local currency operations, assets and liabilities are translated into U.S. dollars using end of period exchange rates, and revenue and expenses are translated into U.S. dollars using weighted-average exchange rates. Foreign currency translation adjustments are accumulated in a separate component of equity.

Revenue recognition

Revenue is recognized as it is earned when goods are shipped to customers or services are rendered. We consider amounts to be earned once evidence of an arrangement has been obtained, services are performed, fees are fixed or determinable and collectability is reasonably assured. Revenue relating to products that provide for more than one deliverable is recognized based upon the relative

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fair value to the customer of each deliverable as each deliverable is provided. Revenue relating to agreements that provide for more than one service is recognized based upon the relative fair value to the customer of each service component as each component is earned. If the fair value to the customer for each service is not objectively determinable, management makes its best estimate of the services’ stand-alone selling price and records revenue as it is earned over the service period. For arrangements that include multiple services, fair value of the service components are determined using an analysis that considers cash consideration that would be received for instances when the service components are sold separately. Advertising revenue is recognized when the page is run. Subscription income is recognized over the related subscription period.

Depreciation

The costs of property and equipment are depreciated using the straight-line method based upon the following estimated useful lives: buildings and improvements from 15 to 40 years and equipment and furniture from 2 to 10 years. The costs of leasehold improvements are amortized over the lesser of the useful lives or the terms of the respective leases.

Advertising expense

The cost of advertising is expensed as incurred. We incurred $43 million, $34 million and $32 million in advertising costs for the years ended December 31, 2013, 2012 and 2011, respectively.

Stock-based compensation

Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, which typically is the vesting period. Stock-based compensation is classified as both operating-related expense and selling and general expense in the consolidated statements of income.

Income taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize liabilities for uncertain tax positions taken or expected to be taken in income tax returns. Accrued interest and penalties related to unrecognized tax benefits are recognized in interest expense and operating expense, respectively.

Judgment is required in determining our provision for income taxes, deferred tax assets and liabilities and unrecognized tax benefits. In determining the need for a valuation allowance, the historical and projected financial performance of the operation that is recording a net deferred tax asset is considered along with any other pertinent information.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions, and we are routinely under audit by many different tax authorities. We believe that our accrual for tax liabilities is adequate for all open audit years based on our assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. It is possible that examinations will be settled prior to December 31, 2014. If any of these tax audit settlements do occur within that period we would make any necessary adjustments to the accrual for unrecognized tax benefits. Until formal resolutions are reached between us and the tax authorities, the determination of a possible audit settlement range with respect to the impact on unrecognized tax benefits is not practicable. On the basis of present information, our opinion is that any assessments resulting from the current audits will not have a material effect on our consolidated financial statements.

Redeemable Noncontrolling Interest

The agreement with the minority partners of our S&P Dow Jones Indices LLC joint venture discussed in Note 2 —Acquisitions and Divestitures, contains redemption features whereby interests held by our minority partners is redeemable both at the option of the holder and upon the occurrence of an event that is not solely within our control. Since redemption of the noncontrolling interest is outside of our control, this interest is presented on our consolidated balance sheets under the caption “Redeemable noncontrolling interest.” If the interest were to be redeemed, we would be required to purchase all of such interest at fair value on the date of redemption. We adjust the redeemable noncontrolling interest each reporting period to its estimated redemption value, but never less than its initial fair value, using a combination of an income and market valuation approach. Our income and market valuation approaches may incorporate Level 3 measures for instances when observable inputs are not available, including assumptions related to expected future net cash flows, long-term growth rates, the timing and nature of tax attributes, and the redemption features. Any adjustments to the redemption value will impact retained income. See Note 8 – Equity, for further detail.

Contingencies

We accrue for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be

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estimated. When we accrue for loss contingencies and the reasonable estimate of the loss is within a range, we record its best estimate within the range. We disclose an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred.

Recent Accounting Standards

In July of 2013, the Financial Accounting Standards Board (“FASB”) issued amended guidance that resolves the diversity in practice for the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This new accounting guidance requires the netting of unrecognized tax benefits ("UTBs") against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. The new standard requires prospective adoption but allows retrospective adoption for all periods presented. We will adopt the FASB’s amended guidance for our annual reporting period beginning January 1, 2014. We do not expect the adoption of the guidance to have a significant impact on our financial position, results of operations or cash flows.

In March of 2013, the FASB issued amended guidance that resolves the diversity in practice for the accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity. The amended guidance requires that when a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income in instances when a sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Additionally, the amended guidance clarifies that the sale of an investment in a foreign entity includes both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. In these instances, an entity is required to release the cumulative translation adjustment into net income. We will adopt the FASB's amended guidance during the three months ended March 31, 2014. We do not expect the adoption of the guidance to have a significant impact on our financial position, results of operations or cash flows.

In February of 2013, the FASB issued amended guidance expanding the disclosure requirements for amounts reclassified out of accumulated other comprehensive income. The amendments require an entity to present, either on the face of the statement where net income is presented or in the notes to its financial statements, details of significant items reclassified in their entirety out of accumulated other comprehensive income and identification of the respective line items effecting net income for instances when reclassification is required under U.S. GAAP. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity will be required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by type. The amendments were effective on January 1, 2013 and have been incorporated into this Form 10-K. Adoption of this guidance did not have a significant impact on our financial position, results of operations or cash flows.

Reclassification

Certain prior year amounts have been reclassified for comparability purposes.

2. Acquisitions and Divestitures

Acquisitions

2013

For the year ended December 31, 2013, we paid cash for acquisitions, net of cash acquired, totaling $273 million. None of our acquisitions were material either individually or in the aggregate, including the pro forma impact on earnings. All acquisitions were funded with cash flows from operations. Acquisitions completed during the year ended December 31, 2013 by segment included:

S&P DJ Indices

• In December 2013 we purchased the intellectual property rights to a range of commodities indices developed by Goldman Sachs as well as a limited-use license to promote the commodities indices using the Goldman Sachs Commodity Index trade marks. The commodities indices provide us with a leading benchmark that measures general price movements and inflation in the world economy. We accounted for the acquisition of the intellectual property on a cost basis.

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S&P Ratings

• In June of 2013 we made a voluntary open offer to purchase up to an additional 22.23% of the total equity shares outstanding in CRISIL Limited ("CRISIL"), our majority owned Indian credit rating agency within our S&P Ratings segment. In August of 2013, at the conclusion of the tender offer period, we acquired approximately 11 million equity shares representing 15.07% of CRISIL's total outstanding equity shares for $214 million, increasing our ownership percentage in CRISIL to 67.84% from 52.77%.

Following CRISIL's acquisition of Coalition Development Ltd. ("Coalition") that occurred in July of 2012, we made a contingent purchase price payment in 2013 for $12 million that has been reflected in the consolidated statement of cash flows as a financing activity.

2012

For the year ended December 31, 2012, we paid cash for acquisitions, net of cash acquired, totaling $177 million. None of our acquisitions were material either individually or in the aggregate, including the pro forma impact on earnings. All acquisitions were funded with cash flows from operations. Acquisitions completed during the year ended December 31, 2012 by segment included:

S&P DJ Indices

• On June 29, 2012, we closed our transaction with CME Group, Inc. (“CME Group”) and CME Group Index Services LLC (“CGIS”), a joint venture between CME Group and Dow Jones & Company, Inc., to form a new company, S&P Dow Jones Indices LLC. See below for further detail related to this transaction.

S&P Capital IQ

• On June 29, 2012, we acquired Credit Market Analysis Limited (“CMA”) from the CME Group. CMA provides independent data concerning the over-the-counter markets. CMA's data and technology will enhance our capability to provide pricing and related over-the-counter information.

• On April 3, 2012, we completed the acquisition of QuantHouse, an independent global provider of end-to-end systematic low-latency market data solutions. The acquisition allows us to offer real-time monitors, derived data sets and analytics as well as the ability to package and resell this data as part of a core solution.

• On February 8, 2012, we completed the acquisition of R² Technologies (“R²”). R² provides advanced risk and scenario-based analytics to traders, portfolio and risk managers for pricing, hedging and capital management across asset classes. 

C&C

• On November 1, 2012, we completed the acquisition of Kingsman SA (“Kingsman”), a privately-held, Switzerland-based provider of price information and analytics for the global sugar and biofuels markets. The acquisition of Kingsman will expand our presence in sugar and biofuels information markets and has the potential to provide growth in the global agricultural information markets.

S&P Ratings

• On July 4, 2012, CRISIL, our majority owned Indian credit rating agency, completed the acquisition of Coalition Development Ltd. (“Coalition”), a privately-held U.K. analytics company, and its subsidiaries. Coalition provides high-end analytics to leading global investment banks and other financial services firms. Coalition has been integrated into CRISIL's Global Research & Analytics business.

Our acquisitions during 2012 were accounted for using the purchase method. Under the purchase method, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill and other intangibles. Intangible assets recorded for all transactions are amortized using the straight-line method for periods not exceeding 20 years. None of the goodwill acquired from our acquisitions during 2012 will be deductible for tax purposes.

Acquisition of Dow Jones Index Business

We own 73% and CME Group and CGIS collectively own 27% of S&P Dow Jones LLC. In exchange for their 27% minority interest, CME Group and CGIS contributed their Dow Jones Index (“DJI”) business; in exchange for our 73% and controlling interest, we contributed our Standard & Poor's Index (“S&P Index”) business. The DJI business focuses on the development of financial benchmarks used by licensees to create exchange-traded funds, option contracts and futures contracts traded on exchanges

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as well as used as a metric to evaluate economic performance. The combination of these businesses creates the world's premier provider of financial market indices; we expect to increase revenue through international and asset-class expansion, new product development, enhanced market data offerings and increased cross-selling opportunities. The pro forma impact on revenue and earnings from our joint venture with the DJI business was not material to our consolidated results for the year ended December 31, 2012.

The terms of the operating agreement of S&P Dow Jones Indices LLC contain redemption features whereby interests held by minority partners are redeemable. See Note 8 – Equity for further discussion.

Acquisition-Related Expenses

During the year ended December 31, 2012, we incurred $15 million of acquisition-related costs related to the formation of S&P Dow Jones Indices LLC. These expenses are included in selling and general expenses in our consolidated statement of income.

Allocation of Purchase Price

Because we consolidate S&P Dow Jones Indices LLC, we have applied the purchase method of accounting to the S&P Dow Jones Indices LLC contributed business. DJI's results of operations have been included in our consolidated results of operations subsequent to June 29, 2012 (the "Acquisition Date").

The fair value of the DJI business acquired of $792 million was estimated by applying a market approach and an income approach. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement. The fair value estimates of the proportionate shares of the contributed businesses are based on, but not limited to, future expected cash flows, appropriate discount rates ranging from 10% to 11%, long term growth rates of 2.5% to 3.5%, assumed financial multiples of companies deemed to be similar to the DJI, and market rate assumptions for contractual obligations. S&P Index continues to be recorded at its historical or carry-over basis.

At the Acquisition Date, our noncontrolling interest has been recorded at the fair value of DJI we acquired plus the proportionate interest of the S&P Index business at our carry-over basis. As of June 30, 2012, we recorded a redeemable noncontrolling interest in our consolidated financial statements (see Note 8 – Equity for further discussion) at the preliminary fair value of 27% of S&P Dow Jones Indices LLC or $792 million due to the redemption provisions described above, representing CME Group's and CGIS' interest in S&P Dow Jones Indices LLC.

The tables below present the consideration transferred and the allocation of purchase price to the assets and liabilities of the DJI business acquired as a result of the transaction.

Consideration Transferred

(in millions)
Fair value of 27% of S&P Index	$	571
Fair value of redeemable noncontrolling interest associated with net assets acquired	221
Total	$	792

Purchase Price Allocation

(in millions)
Current assets	$	79
Intangible assets:
Indefinite-lived intangibles	470
Customer relationships	110
Other intangibles	33
Goodwill	111
Current liabilities	(11		)
Total net assets	$	792

The intangible assets, excluding goodwill and indefinite-lived intangibles, will be amortized over their anticipated useful lives of between 5 and 20 years.

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Income Taxes

We are responsible for the tax matters for S&P Dow Jones Indices LLC, including the filing of returns and the administration of any proceedings with taxing authorities. For U.S. federal income tax purposes, S&P Dow Jones Indices LLC is treated as a partnership. The income of S&P Dow Jones Indices LLC flows through and is subject to tax at the partners' level. However S&P Dow Jones Indices LLC incurs current and deferred income taxes in a limited number of states and localities and its foreign subsidiaries incur immaterial current and deferred foreign income taxes.

We recognized $216 million of non-current deferred tax liabilities in connection with CME Group and CGIS acquiring an indirect noncontrolling interest in the S&P Index business in exchange for our acquisition of a portion of our interest in the DJI business. Because we maintained control of the S&P Index business, the excess of fair value received over historical carrying value and the related tax impact were recorded in additional paid-in capital.

Goodwill and Identifiable Intangibles

Goodwill consists primarily of intangible assets that do not qualify for separate recognition, including assembled workforce, noncontractual relationships and agreements. The goodwill is not expected to be deductible for tax purposes.

2011

For the year ended December 31, 2011, we completed acquisitions totaling $194 million. None of our acquisitions were material either individually or in the aggregate, including the pro forma impact on earnings. All acquisitions were funded with cash flows from operations. Acquisitions completed during the year ended December 31, 2011 included:

• On July 1, 2011, we acquired the issued and outstanding shares of Steel Business Briefing Group (the “SBB Group”), a privately held U.K. company and leading provider of news, pricing and analytics to the global steel market. The SBB Group provides subscription-based, electronic products to the steel industry and its participants through two principal businesses, Steel Business Briefing and The Steel Index. The SBB Group is included within Platts, part of our C&C segment. In connection with the preliminary purchase price allocation, estimates of the fair values of long-lived and intangible assets have been determined utilizing currently available information and are subject to finalization.

• On January 3, 2011, we acquired all of the issued and outstanding membership interest units of Bentek Energy LLC (“Bentek”), which is included as part of our C&C segment. Bentek offers its customers a comprehensive portfolio of data, information and analytics products in the natural gas and liquids sector. The primary purpose of the acquisition was to acquire Bentek’s knowledge, skill and expertise in gathering high-quality detailed data and their ability to identify key relationships within the data critical to industry participants.

Our acquisitions of the SBB Group and Bentek were accounted for using the purchase method. Under the purchase method, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill and other intangibles. Intangible assets recorded for all transactions are amortized using the straight-line method for periods not exceeding 12 years. The goodwill acquired from the Bentek acquisition will be deductible for tax purposes; the goodwill acquired from the SBB Group acquisition will not be deductible for tax purposes.

Non-cash investing activities

Liabilities assumed in conjunction with the acquisition of businesses are as follows:

(in millions)	Years ended December 31,
	2013		2012		2011
Fair value of assets acquired	$	—	$	1,071	$	214
Fair value of consideration transferred for DJI business	—		792		—
Cash paid (net of cash acquired)	—		177		194
Liabilities assumed 1	$	—	$	102	$	20

¹  2013 acquisitions did not result in any liabilities assumed.

Divestitures - Continuing Operations

During the year ended December 31, 2013, we completed the following dispositions that resulted in a net pre-tax gain of $24 million, which was included in other loss (income) in the consolidated statement of income:

• On September 30, 2013, we completed the sale of Financial Communications, which was part of our S&P Capital IQ segment.

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• On August 27, 2013, CRISIL sold its 49% equity interest in India Index Services & Products Ltd. This investment was held within our S&P Ratings segment.

• On August 1, 2013, we completed the sale Aviation Week within our C&C segment to Penton, a privately held business information company.

Additionally, S&P Capital IQ closed several of their non-core businesses during 2013.

We did not complete any dispositions during the year ended December 31, 2012.

During the year ended December 31, 2011, we recorded a pre-tax gain of $13 million within other loss (income) in the consolidated statement of income related to the sale of our interest in the LinkedIn Corporation as part of their initial public offering. This investment was held within our C&C segment.

Discontinued Operations

On March 22, 2013, we completed the sale of MHE to investment funds affiliated with Apollo Global Management, LLC for a purchase price of $2.4 billion in cash. We recorded an after-tax gain on the sale of $589 million , which is included in discontinued operations, net in the consolidated statement of income for the year ended December 31, 2013. We have used a portion of the after-tax proceeds from the sale to pay down short-term debt, for the special dividend paid in 2012, and to continue share repurchases. We intend to continue to use a portion of the after-tax proceeds to make selective acquisitions and investments.

In addition to the sale of MHE, our discontinued operations for the year ended December 31, 2011 also include the Broadcasting Group as we entered into a definitive agreement on October 3, 2011 with The E.W. Scripps Company to sell the Broadcasting Group. The sale was completed on December 30, 2011, when we received net proceeds of approximately $216 million. As a result of the sale, we recognized a pre-tax gain of $123 million, which was included in discontinued operations, net. For the year ended December 31, 2011 and prior periods presented, we reported our Broadcasting Group, previously included in our C&C segment, as a discontinued operation.

The key components of income from discontinued operations consist of the following:

(in millions)	Years ended December 31,
	2013			2012			2011
Revenue	$	268		$	2,062		$	2,382
Expenses	310			2,287			2,035
Operating (loss) income	(42		)	(225		)	347
Interest expense (income), net	2			(2		)	(3		)
(Loss) income before taxes on (loss) income	(44		)	(223		)	350
(Benefit) provision for taxes on (loss) income	(18		)	11			116
(Loss) income from discontinued operations, net of tax	(26		)	(234		)	234
Pre-tax gain on sale from discontinued operations	888			—			122
Provision for taxes on gain on sale	299			—			48
Gain on sale of discontinued operations, net of tax	589			—			74
Discontinued operations, net	563			(234		)	308
Less: net (loss) income attributable to noncontrolling interests	(1		)	5			4
Income (loss) from discontinued operations attributable to McGraw Hill Financial, Inc. common shareholders	$	564		$	(239	)	$	304

Results from discontinued operations for the year ended December 31, 2013 included the after-tax gain on sale of MHE of $589 million.

Results from discontinued operations for the year ended December 31, 2012 included several non-recurring items:

• Intangible asset impairments of $497 million that consisted of goodwill, prepublication and inventory assets at MHE's School Education Group ("SEG").

◦ As a result of the offer we received from Apollo Global Management, LLC in the fourth quarter of 2012, we performed a goodwill impairment review at MHE, which resulted in a full impairment of goodwill of $478 million

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at SEG.

◦ An impairment charge of $19 million was recorded on certain prepublication and inventory assets as targeted school programs were shut down.

• Restructuring charges of $39 million consisting primarily of employee severance costs related to a workforce reduction of approximately 530 positions.

• Direct transaction costs of $17 million for legal and professional fees related to the sale of MHE.

• A charge related to a lease commitment of $3 million.

• These charges were partially offset by a vacation accrual reversal of $17 millionrelated to a change in our vacation policy.

Results from discontinued operations for the year ended December 31, 2011 included the after-tax gain on sale of the Broadcasting Group of $123 million.

The components of assets and liabilities classified as held for sale in the consolidated balance sheet consist of the following:

(in millions)	December 31, 2012
Accounts receivable, net	$	333
Property and equipment, net	122
Goodwill	469
Other intangible assets, net	156
Inventories, net	235
Prepublication costs	304
Other assets	321
Assets held for sale	$	1,940
Accounts payable and accrued expenses	$	123
Unearned revenue	192
Other liabilities	349
Liabilities held for sale	$	664

3. Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired.

The change in the carrying amount of goodwill by segment is shown below:

(in millions)	S&P Ratings			S&P Capital IQ			S&P DJ Indices			C&C			Total
Balance as of December 31, 2011	$	197		$	238		$	223		$	446		$	1,104
Acquisitions	29			164			111			21			325
Transfers/reorganizations	(95		)	53			45			—			3
Other (primarily Fx)	(1		)	2			1			4			6
Balance as of December 31, 2012	130			457			380			471			1,438
Dispositions	—			(3		)	(4		)	(29		)	(36		)
Other (primarily Fx)	(5		)	15			—			—			10
Balance as of December 31, 2013	$	125		$	469		$	376		$	442		$	1,412

Goodwill additions and dispositions in the table above relate to transactions discussed in Note 2 – Acquisitions and Divestitures.

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Other Intangible Assets

Other intangible assets include both indefinite-lived assets not subject to amortization and definite-lived assets subject to amortization. We have indefinite-lived assets with a carrying value of $634 million as of both December 31, 2013 and 2012 that consist of:

• $380 million and $90 million, for Dow Jones Indices intellectual property and the Dow Jones tradename, respectively, that we recorded as part of the transaction to form S&P Dow Jones Indices LLC in 2012 further described in Note 2 – Acquisitions and Divestitures, and

• $164 million within our C&C segment for the J.D. Power and Associates tradename.

The following table summarizes our definite-lived intangible assets:

(in millions)
Cost	Databases and software			Content		Customer relationships		Tradenames			Other intangibles			Total
Balance as of December 31, 2011	$	109		$	139	$	115	$	45		$	62		$	470
Acquisitions	17			—		110		1			108			236
Other (primarily Fx)	—			—		—		(1		)	1			—
Balance as of December 31, 2012	126			139		225		45			171			706
Acquisitions	—			—		—		—			44			44
Dispositions	(9		)	—		—		—			(13		)	(22		)
Impairment 1	—			—		—		—			(26		)	(26		)
Other (primarily Fx)	(2		)	—		—		—			(6		)	(8		)
Balance as of December 31, 2013	$	115		$	139	$	225	$	45		$	170		$	694
Accumulated amortization
Balance as of December 31, 2011	$	70		$	17	$	43	$	27		$	50		$	207
Current year amortization	10			14		11		3			10			48
Other (primarily Fx)	—			—		1		—			3			4
Balance as of December 31, 2012	80			31		55		30			63			259
Current year amortization	9			14		11		2			15			51
Dispositions	(6		)	—		—		—			(9		)	(15		)
Other (Primarily Fx)	—			—		1		—			(1		)	—
Balance as of December 31, 2013	$	83		$	45	$	67	$	32		$	68		$	295
Net definite-lived intangibles:
December 31, 2012	$	46		$	108	$	170	$	15		$	108		$	447
December 31, 2013	$	32		$	94	$	158	$	13		$	102		$	399

¹  We incurred a $26 million non-cash impairment charge associated with an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

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Definite-lived intangible assets are being amortized on a straight-line basis over periods of up to 40 years. The weighted-average life of the intangible assets as of December 31, 2013 is approximately 9 years. Amortization expense for the years ended December 31, 2013, 2012 and 2011, and the projected amortization expense for intangible assets over the next 5 years for the years ended December 31, assuming no further acquisitions or dispositions, is as follows:

(in millions)	Amortization expense		Expected amortization expense
2011	$	33
2012	48
2013	51
2014			$	47
2015			45
2016			45
2017			42
2018			36

4. Taxes on Income

Income before taxes on income resulted from domestic and foreign operations as follows:

(in millions)	Year Ended December 31,
	2013		2012		2011
Domestic operations	$	868	$	841	$	700
Foreign operations	478		289		300
Total continuing income before taxes	$	1,346	$	1,130	$	1,000

The provision/(benefit) for taxes on income consists of the following:

(in millions)	Year Ended December 31,
	2013			2012			2011
Federal:
Current	$	209		$	194		$	238
Deferred	51			74			(6		)
Total federal	260			268			232
Foreign:
Current	152			91			93
Deferred	(19		)	(9		)	13
Total foreign	133			82			106
State and local:
Current	40			40			36
Deferred	10			14			—
Total state and local	50			54			36
Total provision for taxes for continuing operations	443			404			374
Provision for discontinued operations	281			11			164
Total provision for taxes	$	724		$	415		$	538

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A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate for financial reporting purposes is as follows:

	Year Ended December 31,
	2013		2012		2011
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes	2.8		3.6		2.4
Foreign operations	(3.7	)	(2.6	)	(3.0	)
S&P Dow Jones Indices LLC joint venture	(1.9	)	(1.1	)	—
Other, net	0.7		0.9		3.0
Effective income tax rate for continuing operations	32.9	%	35.8	%	37.4	%

The principal temporary differences between the accounting for income and expenses for financial reporting and income tax purposes are as follows:

(in millions)	December 31,
	2013			2012
Deferred tax assets:
Postretirement benefits	$	32		$	201
Employee compensation	72			123
Accrued expenses	142			105
Unearned revenue	55			60
Allowance for doubtful accounts	15			17
Loss carryforwards	28			25
Other	10			—
Total deferred tax assets	354			531
Deferred tax liabilities:
Goodwill and intangible assets 1	(379		)	(379		)
Fixed assets	(55		)	(54		)
Other	—			(1		)
Total deferred tax liabilities	(434		)	(434		)
Net deferred income tax (liability) asset before valuation allowance	(80		)	97
Valuation allowance	(5		)	(7		)
Net deferred income tax (liability) asset	$	(85	)	$	90
Reported as:
Current deferred tax assets	$	108		$	117
Current deferred tax liabilities	(10		)	(7		)
Non-current deferred tax assets	22			36
Non-current deferred tax liabilities	(205		)	(56		)
Net deferred income tax (liability) asset	$	(85	)	$	90

¹  See Note 2 – Acquisitions andDivestitures for further discussion regarding the impact related to the S&P Dow Jones Indices LLC.

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 that such deferred income tax assets will not be realized. The valuation allowance is primarily related to operating losses.

We have not recorded deferred income taxes applicable to undistributed earnings of foreign subsidiaries that are indefinitely reinvested in foreign operations. Undistributed earnings that are indefinitely reinvested in foreign operations amounted to $930 million at December 31, 2013. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable.

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We made net income tax payments for continuing and discontinued operations totaling $787 million in 2013, $243 million in 2012, and $452 million in 2011. As of December 31, 2013, we had net operating loss carryforwards of $165 million, some of which will expire over varying periods.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in millions)	Years ended December 31,
	2013			2012			2011
Balance at beginning of year	$	74		$	58		$	53
Additions based on tax positions related to the current year	27			14			12
Additions for tax positions of prior years	10			3			3
Reduction for tax positions of prior years	(9		)	(1		)	(10		)
Reduction for settlements	(20		)	—			—
Balance at end of year	$	82		$	74		$	58

The total amount of federal, state and local, and foreign unrecognized tax benefits as of December 31, 2013 and 2012 was $82 million and $74 million, respectively, exclusive of interest and penalties. The increase of $28 million in 2013 (excluding settlements) is the amount of unrecognized tax benefits that unfavorably impacted tax expense for continuing and discontinued operations. The unfavorable impact to the tax provision was partially offset by the resolution of tax audits in multiple jurisdictions.

We recognize accrued interest and penalties related to unrecognized tax benefits in interest expense and operating-related expense, respectively. In addition to the unrecognized tax benefits, as of December 31, 2013 and 2012, we had $19 million and $14 million, respectively, of accrued interest and penalties associated with uncertain tax positions.

During 2013, we made a U.S. federal income tax payment in settlement of an issue related to tax years 2007 through 2010 and also effectively completed the audit for 2011. However, even though we have effectively completed the U.S. federal tax audit for 2011, it remained open pending an unresolved issue. Also during 2013, we completed various state and foreign tax audits and, with few exceptions, we are no longer subject to federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before 2005. During 2011 and 2012, we completed various state and foreign tax audits. The impact to tax expense in 2013, 2012 and 2011 was not material.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions, and we are routinely under audit by many different tax authorities. We believe that our accrual for tax liabilities is adequate for all open audit years based on an assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. It is possible that tax examinations will be settled prior to December 31, 2014. If any of these tax audit settlements do occur within that period, we would make any necessary adjustments to the accrual for unrecognized tax benefits. Until formal resolutions are reached between us and the tax authorities, the determination of a possible audit settlement range with respect to the impact on unrecognized tax benefits is not practicable. On the basis of present information, it is our opinion that any assessments resulting from the current audits will not have a material effect on our consolidated financial statements.

Although the timing of income tax audit resolution and negotiations with taxing authorities are highly uncertain, we do not anticipate a significant change to the total amount of unrecognized income tax benefits within the next twelve months.

5. Debt

A summary of short-term and long-term debt outstanding is as follows:

(in millions)	December 31,
	2013		2012
5.9% Senior Notes, due 2017 1	$	400	$	400
6.55% Senior Notes, due 2037 2	399		399
Commercial paper	—		457
Total debt	799		1,256
Less: short-term debt including current maturities	—		457
Long-term debt	$	799	$	799

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¹  Interest payments are due semiannually on April 15 and October 15, and as of December 31, 2013, the unamortized debt discount is less than $1 million.

²  Interest payments are due semiannually on May 15 and November 15, and as of December 31, 2013, the unamortized debt discount is approximately $1 million.

Annual long-term debt maturities are scheduled as follows based on book values as of December 31, 2013: no amounts due from 2014 – 2016, approximately $400 million due in 2017 and approximately $399 million due thereafter.

Currently, we have the ability to borrow a total of $1.0 billion through our commercial paper program, which is supported by our credit facility described below. As of December 31, 2013, there were no commercial paper borrowings outstanding. In connection with the December 2012 special dividend in the amount of $2.50 per share on our common stock, we utilized our commercial paper program and as a result, commercial paper borrowings outstanding as of December 31, 2012 totaled $457 million with an average interest rate and term of 0.48% and 28 days.

On June 19, 2013, we entered into a $1.0 billionfour-year credit agreement (our “credit facility”) that will terminate on June 19, 2017. This credit facility replaced our $1.2 billionthree-year credit facility that was scheduled to terminate on July 30, 2013. The previous credit facility was canceled immediately after the new credit facility became effective. There were no outstanding borrowings under the previous credit facility when it was replaced.

We pay a commitment fee of 20 to 45 basis points for our credit facility, depending on our indebtedness to cash flow ratio, whether or not amounts have been borrowed and currently pay a commitment fee of 25 basis points. The interest rate on borrowings under our credit facility is, at our option, calculated using rates that are primarily based on either the prevailing London Inter-Bank Offer Rate, the prime rate determined by the administrative agent or the Federal funds rate. For certain borrowings under this credit facility there is also a spread based on our indebtness to cash flow ratio added to the applicable rate.

Our credit facility contains certain covenants. The only financial covenant requires that our indebtedness to cash flow ratio, as defined in our credit facility, is not greater than 3.25 to 1, and this covenant has never been exceeded.

On February 7, 2013, Fitch Ratings downgraded our credit rating to BBB+ from A- and placed our ratings on Rating Watch Negative. There has been no change to our short-term / commercial paper rating of F2 from Fitch Ratings. On February 14, 2013, Moody's Investors Service downgraded our credit rating from A3 to Baa2 with negative outlook. In March 2013, upon the completion of the sale of McGraw-Hill Education, Moody's withdrew our credit ratings (due to Moody's own business reasons).

6. Employee Benefits

We maintain a number of active defined contribution retirement plans for our employees. The majority of our defined benefit plans are frozen. As a result, no new employees will be permitted to enter these plans and no additional benefits for current participants in the frozen plans will be accrued.

We also have supplemental benefit plans that 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 also provide certain medical, dental and life insurance benefits for active and retired employees and eligible dependents. The medical and dental plans and supplemental life insurance plan are contributory, while the basic life insurance plan is noncontributory. We currently do not prefund any of these plans.

We recognize the funded status of our retirement and postretirement plans in the consolidated balance sheets, 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.

As part of the sale of MHE, described further in Note 2 – Acquisitions and Divestitures, we retained the benefit obligations and plan assets related to MHE, however, the benefit cost for periods presented is bifurcated between continuing and discontinued operations.

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Benefit Obligation

A summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and postretirement plans as of December 31, is as follows (benefits paid in the table below include only those amounts contributed directly to or paid directly from plan assets):

(in millions)	Retirement Plans						Postretirement Plans
	2013			2012			2013			2012
Net benefit obligation at beginning of year	$	2,171		$	1,834		$	129		$	129
Service cost	10			24			2			3
Interest cost	91			93			5			5
Plan participants’ contributions	—			1			4			5
Actuarial (gain) loss	(178		)	287			(13		)	3
Gross benefits paid	(77		)	(71		)	(13		)	(17		)
Foreign currency effect	8			11			—			—
Curtailment 1	(26		)	—			(11		)	—
Other adjustments	5			(8		)	—			1
Net benefit obligation at end of year	2,004			2,171			103			129
Fair value of plan assets at beginning of year	1,851			1,505			—			—
Actual return on plan assets	281			212			—			—
Employer contributions	27			193			9			12
Plan participants’ contributions	—			1			4			5
Gross benefits paid	(77		)	(71		)	(13		)	(17		)
Foreign currency effect	6			11			—			—
Fair value of plan assets at end of year	2,088			1,851			—			—
Funded status	$	84		$	(320	)	$	(103	)	$	(129	)
Amounts recognized in consolidated balance sheets:
Non-current assets	$	261		$	98		$	—		$	—
Current liabilities	(7		)	(7		)	(9		)	(11		)
Non-current liabilities	(170		)	(411		)	(94		)	(118		)
	$	84		$	(320	)	$	(103	)	$	(129	)
Accumulated benefit obligation	$	2,004		$	2,093
Plans with accumulated benefit obligation in excess of the fair value of plan assets:
Projected benefit obligation	$	176		$	1,773
Accumulated benefit obligation	$	158		$	1,756
Fair value of plan assets	$	—		$	1,356
Amounts recognized in accumulated other comprehensive loss, net of tax:
Net actuarial loss (gain)	$	227		$	455		$	(11	)	$	(3	)
Prior service credit	1			(4		)	(1		)	(1		)
Total recognized	$	228		$	451		$	(12	)	$	(4	)

¹  The curtailment gain for our retirement plans relates to a freeze of pension accruals for MHE employees as well as all remaining active employees in the United Kingdom ("U.K."). The curtailment gain for our postretirement plans relates to the sale of MHE on March 22, 2013.

The actuarial loss included in accumulated other comprehensive loss for our retirement plans and expected to be recognized in net periodic pension cost during the year ending December 31, 2014 is $7 million. There is no prior service credit included in accumulated other comprehensive loss for our retirement plans expected to be recognized in net periodic benefit cost during the year ending December 31, 2014.

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There are immaterial amounts of prior service credit and actuarial loss included in accumulated other comprehensive loss for our postretirement plans expected to be recognized in net periodic benefit cost during the year ending December 31, 2014.

Net Periodic Cost

For purposes of determining annual pension cost, prior service costs are being amortized straight-line over the average remaining service period of employees expected to receive benefits.

A summary of net periodic benefit cost for our retirement and postretirement plans for the years ended December 31, is as follows:

(in millions)	Retirement Plans									Postretirement Plans
	2013			2012			2011			2013			2012			2011
Service cost	$	10		$	24		$	67		$	2		$	3		$	3
Interest cost	91			93			99			5			5			6
Expected return on assets	(129		)	(124		)	(127		)	—			—			—
Amortization of:
Actuarial loss	26			32			31			—			—			—
Prior service credit	5			(1		)	—			(1		)	(1		)	(1		)
Curtailment 1	(8		)	—			—			(12		)	—			—
Net periodic benefit cost	$	(5	)	$	24		$	70		$	(6	)	$	7		$	8

¹  The curtailment gain for our retirement plans relates to a freeze of pension accruals for MHE employees as well as all remaining active employees in the United Kingdom ("U.K."). The curtailment gain for our postretirement plans relates to the sale of MHE on March 22, 2013.

Our U.K. retirement plan accounted for a benefit of $10 million in 2013, including the $8 million curtailment gain discussed above, and $3 million in 2012 and 2011 of the net periodic benefit cost attributable to the funded plans.

Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax for the years ended December 31, are as follows:

(in millions)	Retirement Plans									Postretirement Plans
	2013			2012			2011			2013			2012		2011
Net actuarial (gain) loss	$	(213	)	$	116		$	65		$	(8	)	$	2	$	(12	)
Recognized actuarial gain	(15		)	(20		)	(18		)	—			—		—
Prior service credit	5			2			—			—			1		1
Total recognized	$	(223	)	$	98		$	47		$	(8	)	$	3	$	(11	)

The total cost for our retirement plans was $96 million for 2013, $129 million for 2012 and $175 million for 2011. Included in the total retirement plans cost are defined contribution plans cost of $75 million for 2013, $86 million for 2012 and $88 million 2011.

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Assumptions

	Retirement Plans						Postretirement Plans
	2013		2012		2011		2013		2012		2011
Benefit obligation: 1
Discount rate	5.0	%	4.1	%	5.1	%	4.20	%	3.45	%	4.45	%
Compensation increase factor	N/A		N/A		4.5	%
Net periodic cost:
Weighted-average healthcare cost rate 2							7.0	%	7.5	%	8.0	%
Discount rate - U.S. plan 3	4.1	%	5.1	%	5.4	%	3.45	%	4.45	%	4.65	%
Discount rate - U.K. plan 3	4.8	%	5.1	%	5.5	%
Compensation increase factor - U.S. plan	N/A		4.5	%	4.5	%
Compensation increase factor - U.K. plan	5.75	%	5.85	%	6.25	%
Return on assets 4	7.25	%	7.75	%	8.0	%

¹  These assumptions for the retirement plans relate to our U.S. ERP and a compensation increase factor is no longer applicable because there are no further salary increases as the U.S. ERP was frozen in April 2012.

²  The assumed weighted-average healthcare cost trend rate will decrease ratably from 7% in 2013 to 5% in 2020 and remain at that level thereafter. Assumed healthcare cost trends have an effect on the amounts reported for the healthcare plans. A one percentage point change in assumed healthcare cost trend creates the following effects:

(in millions)	1% point increase		1% point decrease
Effect on postretirement obligation	$	4	$	(4	)

³  Effective January 1, 2014, we changed our discount rate assumption on our U.S. retirement plans to 5.0% from 4.1% in 2013 and changed our discount rate assumption on our U.K. plan to 4.5% from 4.8% in 2013.

⁴  The expected return on assets assumption is calculated based on the plan’s asset allocation strategy and projected market returns over the long-term. Effective January 1, 2014, we changed our return on assets assumption to 7.125% from 7.25% for the U.S. plan in 2013 and to 6.75% from 7.25% for the U.K. plan in 2013.

Cash Flows

In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”) was enacted. The Act established a prescription drug benefit under Medicare, known as “Medicare Part D”, and a federal subsidy to sponsors of retiree healthcare benefit plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. Our benefits provided to certain participants are at least actuarially equivalent to Medicare Part D, and, accordingly, we are entitled to a subsidy.

Expected employer contributions in 2014 are $23 million for our retirement plans and $10 million for our postretirement plans. In 2014, we may elect to make additional non-required contributions depending on investment performance and the pension plan status. Information about the expected cash flows for our retirement and postretirement plans and the impact of the Medicare subsidy is as follows:

(in millions)			Postretirement Plans 2
	Retirement 1 Plans		Gross payments		Retiree contributions			Medicare subsidy			Net payments
2014	$	76	$	14	$	(5	)	$	(1	)	$	8
2015	79		14		(5		)	(1		)	8
2016	84		15		(6		)	(1		)	8
2017	88		15		(6		)	(1		)	8
2018	92		15		(7		)	(1		)	7
2019-2023	512		79		(44		)	(3		)	32

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¹  Reflects the total benefits expected to be paid from the plans or from our assets including both our share of the benefit cost and the participants’ share of the cost.

²  Reflects the total benefits expected to be paid from our assets.

Fair Value of Plan Assets

In accordance with authoritative guidance for fair value measurements certain assets and liabilities are required to be recorded at fair value. Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value hierarchy has been established which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs used to measure fair value are as follows:

• Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities.

• Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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The fair value of our defined benefit plans assets as of December 31, 2013 and 2012, by asset class is as follows:

(in millions)	December 31, 2013
	Total		Level 1		Level 2		Level 3
Cash and short-term investments, and other	$	68	$	20	$	48	$	—
Equity securities:
U.S. indexes 1	514		145		369		—
U.S. growth and value	373		325		48		—
U.K.	183		101		82		—
International, excluding U.K.	227		131		96		—
Fixed income securities:
Long duration strategy 2	517		—		517		—
Intermediate duration securities	11		—		11		—
Agency mortgage backed securities	7		—		7		—
Asset backed securities	16		—		16		—
Non-agency mortgage backed securities 3	45		—		45		—
U.K. 4	66		—		66		—
International, excluding U.K.	61		—		61		—
Total	$	2,088	$	722	$	1,366	$	—

(in millions)	December 31, 2012
	Total		Level 1		Level 2		Level 3
Cash and short-term investments, and other	$	180	$	2	$	178	$	—
Equity securities:
U.S. indexes 1	399		119		280		—
U.S. growth and value	344		307		37		—
U.K.	154		85		69		—
International, excluding U.K.	225		137		87		1
Fixed income securities:
Long duration strategy 2	370		—		370		—
Intermediate duration securities	3		—		3		—
Agency mortgage backed securities	13		—		13		—
Asset backed securities	10		—		10		—
Non-agency mortgage backed securities 3	52		—		52		—
U.K. 4	41		—		41		—
International, excluding U.K.	43		—		43		—
Real estate:
U.K. 5	17		—		—		17
Total	$	1,851	$	650	$	1,183	$	18

¹  Includes securities that are tracked in the following indexes: S&P 500, S&P MidCap 400, S&P MidCap 400 Growth and S&P Smallcap 600.

²  Includes securities that are investment grade obligations of issuers in the U.S.

³  Includes U.S. mortgage-backed securities that are not backed by the U.S. government.

⁴  Includes securities originated by the government of and other issuers from the U.K.

⁵  Includes a fund which holds real estate properties in the U.K.

For securities that are quoted in active markets, the trustee/custodian determines fair value by applying securities’ prices obtained from its pricing vendors. For commingled funds that are not actively traded, the trustee applies pricing information provided by

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investment management firms to the unit quantities of such funds. Investment management firms employ their own pricing vendors to value the securities underlying each commingled fund. Underlying securities that are not actively traded derive their prices from investment managers, which in turn, employ vendors that use pricing models (e.g. discounted cash flow, comparables). The domestic defined benefit plans have no investment in our stock, except through the S&P 500 commingled index fund.

The trustee obtains estimated prices from vendors for securities that are not easily quotable and they are categorized accordingly as Level 3. The following tables details further information our plan assets where we have used significant unobservable inputs (Level 3):

(in millions)
Beginning balance as of December 31, 2012	$	18
Capital distributions	(18		)
Ending balance as of December 31, 2013	$	—

Pension Trusts’ Asset Allocations

There are two pension trusts, one in the U.S. and one in the U.K.

• The U.S. pension trust had assets of $1.7 billion and $1.5 billion as of December 31, 2013 and 2012, respectively, and the target allocations in 2014 include 48% domestic equities, 12% international equities, and 40% debt securities and short-term investments.

• The U.K. pension trust had assets of $399 million and $318 million as of December 31, 2013 and 2012, respectively, and the target allocations in 2014 include 30% equities, 40% diversified growth funds, and 30% fixed income.

The pension assets are invested with the goal of producing a combination of capital growth, income, and a liability hedge. The mix of assets is established after consideration of the long-term performance and risk characteristics of asset classes. Investments are selected based on their potential to enhance returns, preserve capital, and reduce overall volatility. Holdings are diversified within each asset class. The portfolios employ a mix of index and actively managed equity strategies by market capitalization, style, geographic regions, and economic sectors. The fixed income strategies include U.S. long duration securities, opportunistic fixed income securities, and U.K. debt instruments. The short-term portfolio, whose primary goal is capital preservation for liquidity purposes, is composed of government and government-agency securities, un-invested cash, receivables, and payables. The portfolios do not employ any financial leverage.

U.S. Defined Contribution Plans

Assets of the defined contribution plans in the U.S. consist primarily of investment options which include actively managed equity, indexed equity, actively managed equity/bond funds, McGraw Hill Financial common stock, stable value, and money market strategies. There is also a self-directed mutual fund investment option. The plans purchased 261,672 and sold 1,182,318 shares of McGraw Hill Financial common stock in 2013 and purchased 620,455 and sold 869,199 shares of McGraw Hill Financial common stock in 2012. The plans held approximately 2.2 million shares of McGraw Hill Financial common stock as of December 31, 2013 and 3.7 million shares as of December 31, 2012, with market values of $172 million and $200 million, respectively. The plans received dividends on McGraw Hill Financial common stock of $3 million during the year ended December 31, 2013 and $13 million during the year ended December 31, 2012.

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7. Stock-Based Compensation

We issue stock-based incentive awards to our eligible employees and Directors under the 2002 Employee Stock Incentive Plan and a Director Deferred Stock Ownership Plan.

• 2002 Employee Stock Incentive Plan (the “2002 Plan”) – The 2002 Plan permits the granting of nonqualified stock options, stock appreciation rights, performance stock, restricted stock and other stock-based awards.

• 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.

The number of common shares reserved for issuance are as follows:

(in millions)	December 31,
	2013	2012
Shares available for granting under the 2002 Plan	30.3	26.8
Options outstanding	12.2	18.6
Total shares reserved for issuance 1	42.5	45.4

¹ Shares reserved for issuance under the Director Deferred Stock Ownership Plan are not included in the total, but are less than 0.2 million.

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, see Note 8 – Equity for further discussion.

Common shares reserved for issuance in 2012 was impacted by the special dividend announced in the fourth quarter of 2012. In conjunction with the special dividend, the Compensation and Leadership Development Committee of the Board of Directors decided that employees who hold stock options, performance share units and restricted unit awards under the employee stock ownership plans should receive the economic benefit of the special dividend. Therefore, employees' equity awards have been adjusted to maintain the value of the award prior to the special dividend.

Stock-based compensation expense and the corresponding tax benefit are as follows:

(in millions)	Year Ended December 31,
	2013		2012		2011
Stock option expense	$	13	$	10	$	19
Restricted stock and unit awards expense	86		83		58
Total stock-based compensation expense	$	99	$	93	$	77
Tax benefit	$	38	$	36	$	29

Stock-based compensation of $7 million, $16 million and $19 million is recorded in discontinued operations for the years ended December 31, 2013, 2012 and 2011, respectively, as as result of the sale of MHE described further in Note 2 – Acquisitions and Divestitures. Additionally, stock-based compensation expense for the years ended December 31, 2012 and 2011 include amounts related to employees at the Company's corporate offices who transferred to MHE of $5 million and $4 million, respectively.

Stock Options

Stock options may not be granted at a price less than the fair market value of our common stock on the date of grant. Stock options granted in 2013 vest over a three years service period in equal annual installments and have a maximum term of 10 years. Stock option compensation costs for 2013 grants are recognized from the date of grant, utilizing a three-year graded vesting method. Under this method, one third of the costs are ratably recognized over the first twelve months, one third of the costs are ratably recognized over a twenty-four month period starting from the date of grant with the remaining costs ratably recognized over a thirty-six month period starting from the date of grant.

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Stock options granted in 2011 and prior years vest over a two years service period in equal annual installments and have a maximum term of 10 years. Stock option compensation costs for 2011 and prior year grants are recognized from the date of grant, utilizing a two-year graded vesting method. Under this method, fifty percent of the costs are ratably recognized over the first twelve months with the remaining costs ratably recognized over a twenty-four month period starting from the date of grant.

We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted (in 2012, stock options were not granted as part of employees' total stock-based incentive awards):

	Year Ended December 31,
	2013		2012	2011
Risk-free average interest rate	0.1 - 2.9%		N/A	0.2 - 3.5%
Dividend yield	2.09 - 2.07%		N/A	2.5 - 3.0%
Volatility	29 - 45%		N/A	21 - 51%
Expected life (years)	6.1 - 6.2		N/A	6.1 - 6.2
Weighted-average grant-date fair value per option	$	14.46	N/A	$	10.61

Because lattice-based option-pricing models incorporate ranges of assumptions, those ranges are disclosed. These assumptions are based on multiple factors, including historical exercise patterns, post-vesting termination rates, expected future exercise patterns and the expected volatility of our stock price. The risk-free interest rate is the imputed forward rate based on the U.S. Treasury yield at the date of grant. We use the historical volatility of our stock price over the expected term of the options to estimate the expected volatility. The expected term of options granted is derived from the output of the lattice model and represents the period of time that options granted are expected to be outstanding.

Stock option activity is as follows:

(in millions, except per award amounts)	Shares			Weighted average exercise price		Weighted-average remaining years of contractual term	Aggregate intrinsic value
Options outstanding as of December 31, 2012	18.6			$	39.58
Granted	1.4		1	$	51.69
Exercised	(7.4	)		$	37.78
Canceled, forfeited and expired	(0.4	)		$	50.33
Options outstanding as of December 31, 2013	12.2			$	41.78	4.3	$	445
Options exercisable as of December 31, 2013	10.9			$	40.55	3.7	$	409

(in millions, except per award amounts)	Shares			Weighted-average grant-date fair value
Nonvested options outstanding as of December 31, 2012	1.1			$	10.61
Granted	1.4			$	14.46
Vested	(1.2		)	$	10.61
Nonvested options outstanding as of December 31, 2013	1.3			$	14.46
Total unrecognized compensation expense related to nonvested options	$	9
Weighted-average years to be recognized over	2.3

The total fair value of our stock options that vested during the years ended December 31, 2013, 2012 and 2011 was $12 million, $21 million and $18 million, respectively. In 2012, stock options were not granted as part of employees' total stock-based incentive awards which contributed to the decrease in the fair value of our stock options that vested during the year ended December 31, 2013.

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 (“intrinsic value”). For the years ended December 31, 2013, 2012 and 2011, $43 million, $42 million and $20 million, respectively, of excess tax benefits from stock options exercised are reported in our cash flows used for financing activities.

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Information regarding our stock option exercises is as follows:

(in millions)	Year Ended December 31,
	2013		2012		2011
Net cash proceeds from the exercise of stock options	$	258	$	299	$	139
Total intrinsic value of stock option exercises	$	158	$	120	$	41
Income tax benefit realized from stock option exercises	$	61	$	47	$	16

Restricted Stock and Unit Awards

Restricted stock and unit awards (performance and non-performance) have been granted under the 2002 Plan. Restricted stock and unit performance awards will vest only if we achieve certain financial goals over the performance period. Restricted stock non-performance awards have various vesting periods (generally three years), with vesting beginning on the first anniversary of the awards. Recipients of restricted stock and unit awards are not required to provide consideration to us other than rendering service.

The stock-based compensation expense for restricted stock and unit awards is determined based on the market price of our stock at the grant date of the award applied to the total number of awards that are anticipated to fully vest. For restricted stock and unit performance awards, adjustments are made to expense dependent upon financial goals achieved.

Restricted stock and unit activity for performance and non-performance awards is as follows:

(in millions, except per award amounts)	Shares			Weighted-average grant-date fair value
Nonvested shares as of December 31, 2012	3.4			$	40.49
Granted	3.0			$	44.22
Vested	(3.1		)	$	38.93
Forfeited	(0.2		)	$	46.28
Nonvested shares as of December 31, 2013	3.1			$	47.89
Total unrecognized compensation expense related to nonvested awards	$	84
Weighted-average years to be recognized over	1.6

	Year Ended December 31,
	2013		2012		2011
Weighted-average grant-date fair value per award	$	44.22	$	44.38	$	37.80
Total fair value of restricted stock and unit awards vested	$	119	$	90	$	1
Tax benefit relating to restricted stock activity	$	33	$	32	$	22

8. Equity

Capital Stock

Two million shares of preferred stock, par value $1 per share, are authorized; none have been issued.

On January 29, 2014, the Board of Directors approved an increase in the dividends for 2014 to a quarterly rate of $0.30 per common share.

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	Year Ended December 31,
	2013		2012		2011
Quarterly dividend rate	$	0.28	$	0.255	$	0.25
Annualized dividend rate	$	1.12	$	1.02	$	1.00
Special dividend	$	—	$	2.50	$	—
Dividends paid (in millions)	$	308	$	984	$	296

Stock Repurchases

On December 4, 2013, the Board of Directors approved a new stock repurchase program authorizing the purchase of 50 million shares (the "2013 Repurchase Program"), which was approximately 18% of the total shares of our outstanding common stock at that time. In 2011, the Board of Directors approved a stock repurchase program authorizing the purchase of up to 50 million shares (the “2011 Repurchase Program”), which was approximately 17% of the total shares of our outstanding common stock at that time. In 2007, the Board of Directors approved a stock repurchase program authorizing the purchase of up to 45 million shares (the “2007 Repurchase Program”).

Share repurchases were as follows:

(in millions, except average price)	Year Ended December 31,
	2013		2012		2011
Total number of shares purchased - 2011 Repurchase Program1, 2	16.9		6.8		26.3
Total number of shares purchased - 2007 Repurchase Program	—		—		8.4
Average price paid per share 2, 3	$	58.52	$	50.35	$	40.48
Total cash utilized	$	989	$	295	$	1,500

¹  2013 and 2012 includes shares received as part of our accelerated share repurchase agreements as described in more detail below.

²  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. As such, in fourth quarter of 2013, 0.1 million shares were repurchased for approximately $10 million, which settled in January 2014. Excluding these 0.1 million shares, the average price paid per share was $58.36.

³  Average price paid per share information for 2013 includes the accelerated share repurchase transaction, while 2012 and 2011 does not include the accelerated share repurchase transactions entered in December 2011 as discussed in more detail below.

Our purchased shares may be 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. As of December 31, 2013, 50 million shares remained available under the 2013 Repurchase Program. As of December 31, 2013, there were no remaining shares available under the 2007 or 2011 Repurchase Programs. The 2013 Repurchase Program has no expiration date and purchases under this program may be made from time to time on the open market and in private transactions, depending on market conditions.

Accelerated Share Repurchase Program

We entered into an accelerated share repurchase (“ASR”) agreement with a financial institution on March 25, 2013 to initiate share repurchases aggregating $500 million. The ASR agreement was structured as a capped ASR agreement in which we paid $500 million and received an initial delivery of approximately 7.2 million shares during the three months ended March 31, 2013, with an additional 1.4 million shares received on April 1, 2013, in the aggregate, representing the minimum number of shares of our common stock to be repurchased based on a calculation using a specific capped price per share. The total number of shares ultimately purchased was determined based on the volume weighted-average share price (“VWAP”), minus a discount, of our common stock from March 25, 2013 through July 22, 2013. On July 25, 2013 we received a final incremental delivery of 0.7 million shares determined using a VWAP of $53.7995 bringing the total amount of shares received to 9.3 million.

In December of 2011 we entered into two separate ASR agreements with a financial institution to initiate share repurchases aggregating $500 million. The first ASR agreement was structured as an uncollared ASR agreement for the repurchase of $250 million of shares at a per share price equal to the VWAP of our common stock between December 7, 2011 and February 22, 2012. We purchased and received approximately 5 million and 0.8 million shares in December 2011 and February 2012, respectively, under the agreement. The second agreement was structured as a capped agreement for the repurchase of 250 million of shares where we purchased and received 5 million and 0.1 million shares in December 2011 and April 2012, respectively.

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Redeemable Noncontrolling Interests

The agreement with the minority partners of our S&P Dow Jones Indices LLC partnership discussed in Note 2 – Acquisitions and Divestitures contains redemption features whereby interests held by minority partners are redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that is not solely within our control. Specifically, under the terms of the operating agreement of S&P Dow Jones Indices LLC, after December 31, 2017, CME Group and CGIS will have the right at any time to sell, and we are obligated to buy, at least 20% of their share in S&P Dow Jones Indices LLC. In addition, in the event there is a change of control of the Company, for the 15 days following a change in control, CME Group and CGIS will have the right to put their interest to us at the then fair value of CME Group's and CGIS' minority interest.

If interests were to be redeemed under this agreement, we would generally be required to purchase the interest at fair value on the date of redemption. This interest is presented on the consolidated balance sheet outside of equity under the caption “Redeemable noncontrolling interest” with an initial value based on fair value for the portion attributable to the net assets we acquired, and based on our historical cost for the portion attributable to our S&P Index business. We adjust the redeemable noncontrolling interest each reporting period to its estimated redemption value, but never less than its initial fair value, considering a combination of an income and market valuation approach. Out income and market valuation approaches may incorporate Level 3 fair value measures for instances when observable inputs are not available, including assumptions related to expected future net cash flows, long-term growth rates, the timing and nature of tax attributes, and the redemption features. Any adjustments to the redemption value will impact retained income.

Noncontrolling interests that do not contain such redemption features are presented in equity.

Changes to redeemable noncontrolling interest during the year ended December 31, 2013 were as follows:

(in millions)
Balance as of December 31, 2012	$	810
Net income attributable to noncontrolling interest	73
Distributions to noncontrolling interest	(62		)
Redemption value adjustment	(11		)
Balance as of December 31, 2013	$	810

9. 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.

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The calculation for basic and diluted EPS is as follows:

(in millions, except per share data)	Year Ended December 31,
	2013		2012			2011
Amount attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$	812	$	676		$	607
Income (loss) from discontinued operations	564		(239		)	304
Net income attributable to the Company	$	1,376	$	437		$	911
Basic weighted-average number of common shares outstanding	274.5		278.6			298.1
Effect of stock options and other dilutive securities	5.3		6.0			5.5
Diluted weighted-average number of common shares outstanding	279.8		284.6			303.6
Basic EPS:
Income from continuing operations	$	2.96	$	2.43		$	2.03
Income (loss) from discontinued operations	2.05		(0.86		)	1.02
Net income	$	5.01	$	1.57		$	3.05
Diluted EPS:
Income from continuing operations	$	2.90	$	2.37		$	2.00
Income (loss) from discontinued operations	2.01		(0.84		)	1.00
Net income	$	4.91	$	1.53		$	3.00

There were 0.9 million, 1.4 million and 1.6 million restricted performance shares outstanding as of December 31, 2013, 2012 and 2011, 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, 2013, 2012 and 2011, the number of stock options excluded from the computation are as follows:

(in millions)	Year Ended December 31,
	2013	2012	2011
Stock options excluded from diluted EPS computation	1.2	3.4	10.1

10. Restructuring

As part of our Growth and Value Plan that we began in September of 2011, we have initiated various restructuring plans as we identified opportunities for cost savings through workforce reductions and created a flatter and more agile organization. Additionally, as we continued to evaluate our remaining cost structure in 2013, particularly in light of recent divestitures, we further identified cost savings associated with streamlining our management structure and our decision to exit non-strategic businesses. Our 2013 and 2012 restructuring plans consisted of a company-wide workforce reduction of approximately 520 positions and 670 positions, respectively, and are further detailed below. The charges for each restructuring plan are classified as selling and general expenses within the consolidated statements of income and the reserves are included in other current liabilities in the consolidated balance sheets.

In certain circumstances, reserves are no longer needed because of efficiencies in carrying out the plans or because employees previously identified for separation resigned from the Company and did not receive severance or were reassigned due to circumstances not foreseen when the original plans were initiated. In these cases, we reverse reserves through the consolidated statements of income during the period when it is determined they are no longer needed. There was approximately $7 million of reserves from the 2012 restructuring plan that we have reversed in 2013, which offset the initial charge of $49 million recorded for the 2013 restructuring plan.

As part of the sale of MHE, described further in Note 2 —Acquisitions and Divestitures, we have retained MHE's restructuring

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liabilities. Therefore, the remaining reserve for the 2012 restructuring plan detailed below includes MHE's restructuring liability, however, the initial charge associated with the reserve has been bifurcated between continuing and discontinued operations.

The initial restructuring charge recorded and the ending reserve balance as of December 31, 2013 by segment is as follows:

	2013 Restructuring Plan				2012 Restructuring Plan
(in millions)	Initial Charge Recorded		Ending Reserve Balance		Initial Charge Recorded		Ending Reserve Balance
S&P Ratings	$	13	$	13	$	15	3
S&P Capital IQ	10		9		19		1
S&P DJ Indices	—		—		1		—
C&C	10		7		12		2
Corporate	16		10		21		—
Total continuing operations	49		39		68		6
MHE	—		—		39		8
Total	$	49	$	39	$	107	$	14

For the year ended December 31, 2013, we have reduced the reserve for the 2013 restructuring plan by $10 million and for the years ended December 31, 2013 and 2012, we have reduced the reserve for the 2012 restructuring plan by $78 million and $15 million, respectively. The reductions primarily related to cash payments for employee severance costs.

11. Segment and Geographic Information

As discussed in Note 1 – Accounting Policies, we have four reportable segments: S&P Ratings, S&P Capital IQ, S&P DJ Indices and C&C.

Our Chief Executive Officer is our chief operating decision-maker and evaluates performance of our segments and allocates resources based primarily on operating profit. Segment operating profit does not include unallocated expense or interest expense, which are centrally managed costs. We use the same accounting policies for our segments as those described in Note 1 – Accounting Policies.

Segment information for the years ended December 31 is as follows:

(in millions)	Revenue									Operating Profit
	2013			2012			2011			2013			2012			2011
S&P Ratings	$	2,274		$	2,034		$	1,767		$	1,000		$	849		$	720
S&P Capital IQ	1,170			1,124			1,031			211			208			214
S&P DJ Indices	493			388			323			278			212			189
C&C	1,014			973			896			311			248			180
Intersegment elimination	(76		)	(69		)	(63		)	—			—			—
Total operating segments	4,875			4,450			3,954			1,800			1,517			1,303
Unallocated expense	—			—			—			(395		)	(306		)	(226		)
Total	$	4,875		$	4,450		$	3,954		$	1,405		$	1,211		$	1,077

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(in millions)	Depreciation & Amortization						Capital Expenditures
	2013		2012		2011		2013		2012		2011
S&P Ratings	$	45	$	43	$	40	$	40	$	43	$	40
S&P Capital IQ	49		50		43		39		22		21
S&P DJ Indices	10		8		3		4		2		2
C&C	22		23		23		17		17		14
Total operating segments	126		124		109		100		84		77
Corporate	11		17		17		17		13		15
Total	$	137	$	141	$	126	$	117	$	97	$	92

Segment information as of December 31 is as follows:

(in millions)	Total Assets
	2013		2012
S&P Ratings	$	630	$	726
S&P Capital IQ	1,054		1,123
S&P DJ Indices	1,160		1,133
C&C	943		1,000
Total operating segments	3,787		3,982
Corporate 1	2,213		1,130
Assets held for sale	61		1,940
Total	$	6,061	$	7,052

¹  Corporate assets consist principally of cash and equivalents, assets for pension benefits, deferred income taxes and leasehold improvements related to subleased areas.

We have operations with foreign revenue and long-lived assets in approximately 80 countries. We do not have operations in any foreign country that represent more than 8% of our consolidated revenue. Transfers between geographic areas are recorded at agreed upon prices and intercompany revenue and profit are eliminated. No single customer accounted for more than 10% of our consolidated revenue.

The following provides revenue and long-lived assets by geographic region:

(in millions)	Revenue						Long-lived Assets
	Years ended December 31,						December 31,
	2013		2012		2011		2013		2012
United States	$	2,892	$	2,684	$	2,373	$	2,209	$	2,376
European region	1,227		1,067		951		432		441
Asia	483		454		423		59		70
Rest of the world	273		245		207		54		57
Total	$	4,875	$	4,450	$	3,954	$	2,754	$	2,944

	Revenue						Long-lived Assets
	Years ended December 31,						December 31,
	2013		2012		2011		2013		2012
United States	59	%	60	%	60	%	80	%	81	%
European region	25		24		24		16		15
Asia	10		10		11		2		2
Rest of the world	6		6		5		2		2
Total	100	%	100	%	100	%	100	%	100	%

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See Note 2 – Acquisitions andDivestitures, and Note 10 – Restructuring, for actions that impacted the segment operating results.

12. Commitments and Contingencies

Rental Expense and Lease Obligations

We are committed under lease arrangements covering property, computer systems and office equipment. Leasehold improvements are amortized on a straight-line basis 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 and the associated fees are recognized on a straight-line basis over the minimum lease period.

Rental expense for property and equipment under all operating lease agreements is as follows:

(in millions)	Years ended December 31,
	2013			2012			2011
Gross rental expense	$	207		$	164		$	158
Less: sublease revenue	(29		)	(4		)	(2		)
Less: Rock-McGraw rent credit	(20		)	(19		)	(18		)
Net rental expense	$	158		$	141		$	138

In December 2003, we sold our 45% equity investment in Rock-McGraw, Inc., which owns our headquarters building in New York City, and remained an anchor tenant in our corporate headquarters building in New York City by concurrently leasing back space from the buyer through 2020. As of December 31, 2013, we leased approximately 17% of the building space. Proceeds from the disposition were $382 million and the sale resulted in a pre-tax gain, net of transaction costs, of $131 million ($58 million after-tax) upon disposition. As a result of the amount of building space we retained through our leaseback, a pre-tax gain of $212 million ($126 million after-tax) was deferred upon the disposition in 2003.

In December of 2013, we entered into an arrangement with the buyer to shorten the lease to December 2015 in exchange for approximately $60 million which was recorded as a reduction to the unrecognized deferred gain from the sale. The remaining gain is being amortized over the remaining lease term as a reduction in rent expense. As of December 31, 2013, the remaining deferred gain is $45 million. The amount of the gain amortized during the year ended December 31, 2012 was $15 million. Interest expense associated with this operating lease for the year ended December 31, 2013 was $5 million.

Cash amounts for future minimum rental commitments, including rent payments on the sale-leaseback, under existing non-cancelable leases with a remaining term of more than one year, along with minimum sublease rental income to be received under non-cancelable subleases are shown in the following table.

(in millions)	Rent commitment		Sublease income			Net rent
2014	$	161	$	(14	)	$	147
2015	155		(14		)	141
2016	123		(13		)	110
2017	99		(13		)	86
2018	90		(13		)	77
2019 and beyond	238		(16		)	222
Total	$	866	$	(83	)	$	783

Related Party Agreements

In June of 2012, we entered into a new license agreement (the "License Agreement") with the holder of S&P Dow Jones Indices LLC noncontrolling interest, CME Group, which replaced the 2005 license agreement between S&P DJ Indices and CME Group. Under the terms of the License Agreement, S&P Dow Jones Indices LLC receives a share of the profits from the trading and clearing of CME Group's equity index products. During the years ended December 31, 2013 and 2012, S&P Dow Jones Indices LLC earned $46 million and $21 million of revenue under the terms of the License Agreement, respectively. The entire amount of this revenue is included in our consolidated statement of income, and the portion related to the 27% noncontrolling interest is removed in the net income attributable to noncontrolling interests.

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Legal & Regulatory Matters

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.

S&P Ratings

In connection with a previously disclosed investigation by the Civil Division of the Department of Justice ("DOJ") of S&P LLC, the DOJ filed a civil complaint in the United States District Court for the Central District of California on February 4, 2013 against the Company and S&P LLC alleging violations of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 regarding Standard & Poor's Ratings Services ratings in 2004-2007 of certain U.S. collateralized debt obligations and Standard & Poor's Ratings Services models for certain structured finance products. The Company and S&P LLC filed a motion to dismiss the complaint on April 22, 2013. The Court issued an order denying the motion to dismiss on July 16, 2013. Discovery in this case is ongoing. During the course of discovery, DOJ has identified the U.S. collateralized debt obligations and residential mortgage backed securities rated by Standard & Poor's Ratings Services between 2004-2007, additional to those identified in the complaint, that could provide the basis for whatever proof it seeks to introduce at trial and at any penalty phase of the case.

In connection with the numerous state-court actions that have been brought against the Company and S&P LLC by the attorneys general of various states and the District of Columbia, the Company and S&P LLC have removed most of the actions to federal court and filed a motion before the United States Judicial Panel on Multidistrict Litigation ("JPML") to consolidate and transfer those removed actions to one federal court for all pretrial proceedings. On June 6, 2013, the JPML granted the Company and S&P LLC's motion with respect to the state actions then before it and ordered those actions be consolidated before the United States District Court for the Southern District of New York. The Company expects that any similar actions subsequently filed by other state attorneys general will be similarly consolidated in the Southern District of New York upon the Company’s request. On October 4, 2013, the Court heard argument on motions by the states to have the cases remanded to state court.

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 & Poor's”) on September 29, 2005 and October 7, 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 had brought numerous other lawsuits in both Italy and the United States against entities and individuals who had dealings with Parmalat. In this suit, Parmalat claims that Standard & Poor's, which had issued investment grade ratings on Parmalat until shortly before Parmalat's collapse in December 2003, breached its duty to issue an independent and professional rating and negligently and knowingly assigned inflated ratings in order to retain Parmalat's business. Alleging joint and several liability, Parmalat 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 & Poor's alleged complicity in aggravating Parmalat's financial difficulties and/or for having contributed in bringing about Parmalat's indebtedness towards its bondholders, and legal fees. On June 29, 2011, the Court issued its final decision dismissing in its entirety Parmalat's main damages claim which was based on the value of the bonds issued. The Court ordered Standard & Poor's to pay Parmalat the sum of approximately euros 784,000 (approximately $1.1 million), representing the amount of rating fees paid to Standard & Poor's by Parmalat, plus interest from the date of service of the Writ of Summons. The Court also ordered Standard & Poor's to reimburse Parmalat for euros 47,390 (less than $0.1 million) in trial costs and for its share of fees paid to Court-appointed experts, amounting to euros 67,797 (also less than $0.1 million). On September 29, 2012, Parmalat submitted a brief to the Court of Appeals of Milan appealing the judgment issued by the Tribunal of Milan and, on November 16, 2012, requested payment of the judgment in the amount of euros 1,103,793. Standard & Poor’s paid the judgment on December 3, 2012. On May 9, 2013, Standard & Poor’s filed its response to the appeal, including its cross-appeal. Hearings in the appeal took place on May 29, 2013 and October 9, 2013. The parties’ final briefs were submitted in December 2013.

In a separate proceeding, the prosecutor's office in Parma, Italy is conducting an investigation into the bankruptcy of Parmalat. In June 2006, the prosecutor's office issued a Note of Completion of an Investigation (“Note of Completion”) concerning allegations, based on Standard & Poor's investment grade ratings of Parmalat, that individual Standard & Poor's 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 & Poor's rating analysts. While not a formal charge, the Note of Completion indicates the prosecutor's 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 July 7, 2006, a defense brief was filed with the Parma prosecutor's office on behalf of the rating analysts.

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On August 28, 2007, a putative shareholder class action titled Reese v. Bahash was filed in the District Court for the District of Columbia, and was subsequently transferred to the Southern District of New York. The Company and its CEO and former CFO were named as defendants in the suit, which alleged claims under the federal securities laws in connection with alleged misrepresentations and omissions made by the defendants relating to the Company's earnings and S&P's business practices. On April 2, 2012, the District Court entered judgment granting the Defendants' motion to dismiss, and dismissing all claims asserted against the Defendants in their entirety and, on December 20, 2012, the United States Court of Appeals for the Second Circuit affirmed the dismissal in its entirety. Plaintiff sought to be relieved from the judgment dismissing the case and for permission to file an amended complaint. The Court denied these requests in their entirety on September 24, 2013. Plaintiff is pursuing an appeal from the Court’s decision.

The Company and its Standard & Poor's Financial Services LLC subsidiary ("S&P LLC"), together with other credit rating agencies, have been named in numerous lawsuits in U.S. State and Federal Courts, as well as in foreign jurisdictions, relating to the ratings activity of Standard & Poor's Ratings Services brought by alleged purchasers and issuers of rated securities. The Company and S&P LLC have also received numerous subpoenas and other government inquiries concerning the rating activity of Standard & Poor's Ratings Services in these areas and continue to respond to all such requests. Additional actions, investigations or proceedings may be initiated from time to time in the future.

On September 22, 2011 the Company received a “Wells Notice” from the staff of the U.S. Securities and Exchange Commission (the “Commission”) stating that the staff is considering recommending that the Commission institute a civil injunctive action against Standard & Poor's Ratings Services alleging violations of federal securities laws with respect to Standard & Poor's Ratings Services ratings for a particular 2007 offering of collateralized debt obligations, known as “Delphinus CDO 2007-1”. The Wells Notice is neither a formal allegation nor a finding of wrongdoing. It allows its recipients the opportunity to provide their perspective and to address the issues raised by the staff before any decision is made by the Commission on whether to authorize the commencement of an enforcement proceeding against its recipients. The Company has responded to the staff presenting its position on the issues raised and why the Commission should not commence enforcement proceedings.

On January 15, 2014 S&P received notification of a potential claim by the Prosecutor General of the Corte dei Conti, an Italian administrative court, with respect to whether S&P’s downgrading of Italian sovereign debt in May 2011 wrongfully damaged Italy’s public finances and international reputation and whether S&P should pay compensation to Italy for the costs of Italian budget adjustments and for ancillary damages in an amount “not lower than Euro 234 billion.”

The Company believes that the claims in the proceedings described above have no basis and they will be vigorously defended by the Company and/or the subsidiaries involved. In view of the inherent difficulty of predicting the outcome of legal matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories, involve a large number of parties or are in early stages of discovery, we cannot state with confidence what the eventual outcome of these pending matters will be, what the timing of the ultimate resolution of these matters will be or what the eventual loss, fines, penalties or impact related to each pending matter may be. We believe, based on our current knowledge, that the outcome of the legal actions, proceedings and investigations currently pending should not have a material, adverse effect on our consolidated financial condition.

Additionally, in April 2013 we settled certain subprime litigation cases. Included in selling and general expenses in our consolidated statement of income for the year ended December 31, 2013 is a pre-tax amount of approximately $77 million for these settlements. These cases were dismissed under the terms of the settlements.

S&P Capital IQ

On November 17, 2009, the European Commission, Directorate-General for Competition (“EC”) sent a Statement of Objections (“SO”) to the Company outlining the EC’s preliminary view that Standard & Poor’s CUSIP Service Bureau (an S&P Rating’s brand that is part of S&P Capital IQ) was abusing its position as the sole-appointed National Numbering Agency for U.S. securities by requiring financial institutions and Information Service Providers to pay licensing fees for the use of International Securities Identification Numbers. As set forth in the SO, the EC’s preliminary view was that this behavior amounted to unfair pricing and infringed European competition law. The Company believed these preliminary views were erroneous but in order to resolve the investigation, proposed a set of commitments to the EC. Following market testing of the commitments, further discussions between the parties and some limited modifications to the commitments, the EC on November 15, 2011 accepted and made those commitments legally binding and ended its investigation. Pursuant to the commitments, CUSIP Global Services has created a new data feed service of US International Securities Identification Numbers tailored specifically to the institutions for their use within the European Economic Area.

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S&P DJ Indices

On July 17, 2013, International Organization of Securities Commissions ("IOSCO") published its “Principles for Financial Benchmarks.”  S&P DJ Indices has begun voluntary implementation of the principles. As a part of that process S&P DJ Indices is taking into consideration the ESMA-EBA Principles for Benchmark-Setting Processes in the EU published in June 2013 and the Index Industry Association’s Best Practices issued in July 2013. S&P DJ Indices does not believe that aligning its operations to these principles and/or practices will have a significant negative impact on its ongoing business operations.

C&C

On October 8, 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 Construction Data asserted eleven claims under various state and federal laws against the Company relating to alleged misappropriation and unfair competition by McGraw-Hill Construction and seeking an unspecified amount of damages, plus attorneys' fees and costs. In response to the Company's motion to dismiss five of the eleven claims in the Reed action, Plaintiff filed an Amended Complaint on December 10, 2009, among other things adding an allegation that McGraw-Hill Construction misappropriated Plaintiff's confidential and trade secret information regarding specific construction projects. The Company filed a renewed motion to dismiss five of the eleven claims in the Amended Complaint on January 22, 2010. On September 14, 2010, the Court granted the Company's motion to dismiss three of the five claims, including claims that alleged violations by the Company of the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to violate RICO. On May 31, 2011, the Court granted Plaintiff's motion to file a Second Amended Complaint that, among other things, added a false advertising claim under the Lanham Act, including a demand for treble damages and attorneys' fees. The Second Amended Complaint also contains allegations purporting to further support Reed's existing tort and antitrust claims. On June 3, 2011, the Court granted the Company's motion to file a counterclaim against Reed alleging, among other things, that Reed misappropriated the Company's trade secrets and engaged in unfair competition as a result of Reed's recruitment of former employees of the Company and use of information about the Company's customers obtained from the former employees to solicit those customers. The parties have completed discovery and are in the summary judgment phase.

Our commodities business is subject to the potential for increased regulation in the U.S. and abroad. On October 5, 2012, the IOSCO issued its final report to the G-20, including Principles for Oil Price Reporting Agencies ("PRA"), which sets out principles IOSCO states are intended to enhance the reliability of oil price assessments that are referenced in derivative contracts subject to regulation by IOSCO members. Platts completed the assurance review called for by the IOSCO Principles for Oil Price Reporting Agencies and does not believe the Principles will have a significant negative impact on its ongoing business operations.

In July of 2013 Platts reaffirmed its commitment to aligning its operations to the IOSCO Principles for Oil Price Reporting Agencies and to applying those principles to its price reporting in the other commodity markets in which it publishes price assessments that underlie financial derivatives contracts. The announcement followed IOSCO's publication on July 17, 2013 of its “Principles for Financial Benchmarks,” which stated that it “expects the oil PRAs to continue to implement and comply with the PRA principles.” Platts does not believe that application of the Principles in other commodity markets will have a significant negative impact on its ongoing business operations.

On May 14, 2013, representatives from the European Commission (DG Competition, the EC's antitrust office) commenced an unannounced inspection of Platts' offices at Canary Wharf in London which lasted until May 19, 2013 in conjunction with the potential anticompetitive conduct (in particular, in the crude oil, refined oil products and biofuels markets) relating to Platts' Market On Close price assessment process. No allegations have been made against Platts at this time. There have also been several civil actions filed in the U.S. relating to potential anticompetitive behavior by market participants relating to the Platts price assessment process, none of which have named Platts as a defendant.

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13. Quarterly Financial Information (Unaudited)

(in millions, except per share data)	First quarter			Second quarter		Third quarter			Fourth quarter			Total year
2013
Revenue	$	1,181		$	1,250	$	1,194		$	1,250		$	4,875
Operating profit	$	278		$	436	$	407		$	284		$	1,405
Income from continuing operations	$	174		$	273	$	265		$	190		$	903
Income (loss) from discontinued operations	$	581		$	4	$	(20	)	$	(2	)	$	563
Net income	$	755		$	277	$	245		$	188		$	1,466
Net income attributable to McGraw Hill Financial common shareholders:
Income from continuing operations	$	153		$	250	$	235		$	173		$	812
Income (loss) from discontinued operations	582			4		(20		)	(2		)	564
Net income	$	735		$	254	$	215		$	171		$	1,376
Basic earnings (loss) per share:
Continuing operations	$	0.55		$	0.91	$	0.86		$	0.64		$	2.96
Discontinued operations	2.07			0.01		(0.07		)	(0.01		)	2.05
Net income	$	2.62		$	0.93	$	0.79		$	0.63		$	5.01
Diluted earnings (loss) per share:
Continuing operations	$	0.54		$	0.90	$	0.84		$	0.62		$	2.90
Discontinued operations	2.05			0.01		(0.07		)	(0.01		)	2.01
Net income	$	2.59		$	0.91	$	0.77		$	0.62		$	4.91
2012
Revenue	$	1,035		$	1,072	$	1,116		$	1,226		$	4,450
Operating profit	$	282		$	308	$	275		$	347		$	1,211
Income from continuing operations	$	163		$	180	$	172		$	211		$	726
(Loss) income from discontinued operations	$	(36	)	$	40	$	165		$	(404	)	$	(234	)
Net income (loss)	$	127		$	220	$	337		$	(193	)	$	492
Net income attributable to McGraw Hill Financial common shareholders:
Income from continuing operations	$	158		$	176	$	151		$	190		$	676
(Loss) income from discontinued operations	(35		)	39		162			(406		)	(239		)
Net income (loss)	$	123		$	216	$	314		$	(216	)	$	437
Basic earnings (loss) per share:
Continuing operations	$	0.57		$	0.63	$	0.54		$	0.68		$	2.43
Discontinued operations	(0.13		)	0.14		0.58			(1.46		)	(0.86		)
Net income (loss)	$	0.44		$	0.77	$	1.13		$	(0.78	)	$	1.57
Diluted earnings (loss) per share:
Continuing operations	$	0.56		$	0.62	$	0.53		$	0.67		$	2.37
Discontinued operations	(0.13		)	0.14		0.57			(1.43		)	(0.84		)
Net income (loss)	$	0.43		$	0.76	$	1.10		$	(0.76	)	$	1.53

Note - Totals presented may not sum due to rounding.

Basic and diluted earnings per share are computed independently for each quarter and full year presented. The number of weighted-average shares outstanding changes as common shares are issued pursuant to employee stock plans, as shares are repurchased by us, and other activity occurs throughout the year. Accordingly, the sum of the quarterly earnings per share data may not agree with the calculated full year earnings per share.

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Not applicable.

Item 9a. Controls and Procedures

We have filed the required certifications under Section 302 of the Sarbanes-Oxley Act of 2002 incorporated herein by reference from Exhibits (31.1) and (31.2) to this Form 10-K. In addition we have filed the required certifications under Section 906 of the Sarbanes-Oxley Act of 2002 incorporated herein by reference from Exhibit (32) to this Form 10-K.

This Item 9a. includes information concerning the controls and control evaluations referred to in the required certifications.

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed with the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure.

As of December 31, 2013, an evaluation was performed under the supervision and with the participation of management, including the CEO and CFO, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the U.S. Securities Exchange Act of 1934). Based on that evaluation, management, including the CEO and CFO, concluded that our disclosure controls and procedures were effective as of December 31, 2013.

Management’s Annual Report on Internal Control Over Financial Reporting

Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 and as defined in Rules 13a-15(f) under the U.S. Securities Exchange Act of 1934, management is required to provide the following report on our internal control over financial reporting:

1. Management is responsible for establishing and maintaining adequate internal control over financial reporting.

2. Management has evaluated the system of internal control using the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) framework. Management has selected the COSO framework for its evaluation as it is a control framework recognized by the SEC and the Public Company Accounting Oversight Board that is free from bias, permits reasonably consistent qualitative and quantitative measurement of our internal controls, is sufficiently complete so that relevant controls are not omitted and is relevant to an evaluation of internal controls over financial reporting.

3. Based on management’s evaluation under this framework, management has concluded that our internal controls over financial reporting were effective as of December 31, 2013. There are no material weaknesses in our internal control over financial reporting that have been identified by management.

4. Our independent registered public accounting firm, Ernst & Young LLP, has audited our consolidated financial statements for the year ended December 31, 2013, and has issued their reports on the financial statements and the effectiveness of our internal control over financial reporting. These reports are located on pages 47 and 48 of this Form 10-K.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during the most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9b. Other Information

Not applicable.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance

Incorporated herein by reference from our definitive proxy statement for the 2014 annual meeting of shareholders. The information under the heading “Executive Officers of the Registrant” in Part I of this Form 10-K is also incorporated herein by reference.

Code of Ethics

We have adopted a Code of Ethics for our CEO and senior financial officers that applies to our CEO, CFO and chief accounting officer. To access such code, go to the Corporate Governance section of our Investor Relations Web site at http://investor.mhfi.com. Any waivers that may in the future be granted from such Code will be posted at such Web site address. In addition to our Code of Ethics for the CEO and senior financial officers noted above, the following documents may be found on our Web site at the above Web site address:

• Code of Business Ethics for all employees;

• Code of Business Conduct and Ethics for Directors;

• Employee Complaint Procedures;

• Certificate of Incorporation;

• By-Laws;

• Corporate Governance Guidelines;

• Audit Committee Charter;

• Compensation and Leadership Development Committee Charter;

• Nominating and Corporate Governance Committee Charter;

• Financial Policy Committee Charter; and

• Executive Committee Charter.

The foregoing documents are also available in print, free of charge, to any shareholder who requests them. Requests for printed copies may be e-mailed to corporate.secretary@mhfi.com or mailed to the Corporate Secretary, McGraw Hill Financial, Inc., 1221 Avenue of the Americas, New York, NY 10020-1095.

New York Stock Exchange Certification

Promptly following the 2014 annual meeting of shareholders, we intend to file with the NYSE the CEO certification regarding our compliance with the NYSE’s corporate governance listing standards as required by NYSE Rule 303A.12. Last year, we filed this CEO certification with the NYSE on May 2, 2013.

Item 11. Executive Compensation

Incorporated herein by reference from our definitive proxy statement for the 2014 annual meeting of shareholders.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Incorporated herein by reference from our definitive proxy statement for the 2014 annual meeting of shareholders.

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The following table details our equity compensation plans as of December 31, 2013:

	Equity Compensation Plans’ Information
	(a)		(b)		(c)
Plan category	Number of securities to be issued upon exercise of outstanding options, warrants and rights		Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by security holders	12,209,122		$	41.78	30,472,537
Equity compensation plans not approved by security holders	—		—		—
Total	12,209,122	1	$	41.78	30,472,537	2,3

¹  Shares to be issued upon exercise of outstanding options under our Stock Incentive Plans.

²  Included in this number are 138,482 shares reserved for issuance under the Director Deferred Stock Ownership Plan. The remaining 30,334,055 shares are reserved for issuance under the 2002 Stock Incentive Plan (the “2002 Plan”) for Performance Stock, Restricted Stock, Other Stock-Based Awards, Stock Options and Stock Appreciation Rights.

³  Under the terms of the 2002 Plan, shares subject to an award or shares paid in settlement of a dividend equivalent reduce the number of shares available under the 2002 Plan by one share for each such share granted or paid.

The 2002 Plan is also governed by certain share recapture provisions. The aggregate number of shares of stock available under the 2002 Plan for issuance are increased by the number of shares of stock granted as an award under the 2002 Plan that are:

• forfeited, cancelled, settled in cash or property other than stock, or otherwise not distributable under the 2002 Plan;

• tendered or withheld to pay the exercise or purchase price of an award under the 2002 Plan or to satisfy applicable wage or other required tax withholding in connection with the exercise, vesting or payment of, or other event related to, an award under the 2002 Plan; or

• repurchased by us with the option proceeds in respect of the exercise of a stock option under the 2002 Plan.

Item 13. Certain Relationships and Related Transactions, and Director Independence

Incorporated herein by reference from our definitive proxy statement for the 2014 annual meeting of shareholders.

Item 14. Principal Accounting Fees and Services

During the year ended December 31, 2013, Ernst & Young LLP audited the consolidated financial statements of the Registrant and its subsidiaries.

Incorporated herein by reference from our definitive proxy statement for the 2014 annual meeting of shareholders.

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PART IV

Item 15. Exhibits, Financial Statement Schedules

(a) Documents filed as part of this Form 10-K:

1. Financial Statements

• Reports of Independent Registered Public Accounting Firm

• Consolidated Statements of Income for the three years ended December 31, 2013

• Consolidated Statements of Comprehensive Income for the three years ended December 31, 2013

• Consolidated Balance Sheets as of December 31, 2013 and 2012

• Consolidated Statements of Cash Flows for the three years ended December 31, 2013

• Consolidated Statements of Equity for the three years ended December 31, 2013

• Notes to the Consolidated Financial Statements

2. Financial Schedule

• Schedule II—Valuation and Qualifying Accounts

All other schedules have been omitted since the required information is not present or not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements or the notes thereto.

3. Exhibits – The exhibits filed as part of this Form 10-K are listed in the Exhibit Index immediately preceding such Exhibits, and such Exhibit Index is incorporated herein by reference.

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McGraw Hill Financial

Schedule II – Valuation and Qualifying Accounts

(in millions)

Additions/(deductions)	Balance at beginning of year		Net charges to income		Deductions and other 1			Balance at end of year
Year ended December 31, 2013
Allowance for doubtful accounts	$	54	$	20	$	(22	)	$	52
Year ended December 31, 2012
Allowance for doubtful accounts	$	29	$	32	$	(7	)	$	54
Year ended December 31, 2011
Allowance for doubtful accounts	$	38	$	26	$	(35	)	$	29

¹  Primarily includes uncollectible accounts written off, net of recoveries, impact of acquisitions and divestitures and adjustments for foreign currency translation.

92

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

McGraw Hill Financial, Inc.

Registrant

By:

/s/ Kenneth M. Vittor

Kenneth M. Vittor

Executive Vice President and General Counsel

February 7, 2014

Each individual whose signature appears below constitutes and appoints Jack F. Callahan, Jr. and Kenneth M. Vittor, and each of them singly, his or her true and lawful attorneys-in-fact and agents with full power of substitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Form 10-K filed with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all the said attorneys-in-fact and agents or any of them or their or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed on February 7, 2014 on behalf of the Registrant by the following persons who signed in the capacities as set forth below under their respective names.

/s/ Douglas L. Peterson

Douglas L. Peterson

President and Chief Executive Officer and Director

/s/ Jack F. Callahan, Jr.

Jack F. Callahan, Jr.

Executive Vice President and Chief Financial Officer

/s/ Emmanuel N. Korakis

Emmanuel N. Korakis

Senior Vice President and Corporate Controller

/s/ Harold W. McGraw III

Harold W. McGraw III

Chairman of the Board and Director

/s/Sir Winfried F.W. Bischoff

Sir Winfried F.W. Bischoff

Director

/s/ William D. Green

William D. Green

Director

/s/ Charles E. Haldeman, Jr.

Charles E. Haldeman, Jr.

Director

/s/Linda Koch Lorimer

Linda Koch Lorimer

Director

/s/Robert P. McGraw

Robert P. McGraw

Director

/s/Hilda Ochoa-Brillembourg

Hilda Ochoa-Brillembourg

Director

/s/ Sir Michael Rake

Sir Michael Rake

Director

/s/Edward B. Rust, Jr.

Edward B. Rust, Jr.

Director

/s/Kurt L. Schmoke

Kurt L. Schmoke

Director

/s/ Sidney Taurel

Sidney Taurel

Director

/s/Richard E. Thornburgh

Richard E. Thornburgh

Director

93

Exhibit Number		Exhibit Index
(2.1	)	Purchase and Sale Agreement between the Registrant, McGraw-Hill Education LLC, various sellers named therein and MHE Acquisition, LLC, dated November 26, 2012 (“Sale Agreement”), incorporated by reference from Registrant's Form 8-K filed November 26, 2012.
(2.2	)	Amendment No. 1 to Sale Agreement, dated March 4, 2013, incorporated by reference from Registrant’s Form 8-K filed March 5, 2013.
(3.1	)	Restated Certificate of Incorporation of Registrant, incorporated by reference from Registrant’s Form 8-K filed April 28, 2011.
(3.2	)	Certificate of Amendment of the Certificate of Incorporation of Registrant, dated May 1, 2013, incorporated by reference from Registrant’s Form 8-K filed May 1, 2013.
(3.3	)	Amended and Restated By-Laws of Registrant, dated July 11, 2013, incorporated by reference from the Registrant’s Form 8-K filed July 11, 2013.
(4.1	)	Indenture dated as of November 2, 2007 between the Registrant, as issuer, and The Bank of New York, as trustee, incorporated by reference from Registrant’s Form 8-K filed November 2, 2007.
(4.2	)	First Supplemental Indenture, dated January 1, 2009, between the Company and The Bank of New York Mellon, as trustee, incorporated by reference from Registrant’s Form 8-K filed January 2, 2009.
(10.1	)	Form of Indemnification Agreement between Registrant and each of its directors and certain of its executive officers, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 2004.
(10.2)*		Registrant’s Amended and Restated 2002 Stock Incentive Plan, as amended and restated as of January 28, 2009, incorporated by reference from the Registrant’s Form 10-K for the fiscal year ended December 31, 2008.
(10.3)*		Form of Performance Share Unit Terms and Conditions, incorporated by reference from Registrant’s Form 10-Q filed October 22, 2013.
(10.4)*		Form of Stock Option Award.
(10.5)*		Registrant’s Key Executive Short Term Incentive Compensation Plan, as amended effective as of July 28, 2009, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 2009.
(10.6)*		Amendment to the Registrant’s Key Executive Short-Term Compensation Plan, effective as of June 25, 2013.
(10.7)*		Registrant’s Key Executive Short-Term Incentive Deferred Compensation Plan, as amended and restated as of January 1, 2008, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 2007.
(10.8)*		Registrant’s Management Severance Plan, as amended and restated as of January 1, 2012, incorporated by reference from the Registrant's Form 10-K for the fiscal year ended December 31, 2011.
(10.9)*		Amendment to Registrant's Management Severance Plan, effective as of January 1, 2013, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 2012.
(10.10)*		Registrant’s Executive Severance Plan, as amended and restated as of January 1, 2012, incorporated by reference from the Registrant's Form 10-K for the fiscal year ended December 31, 2011.
(10.11)*		Amendment to Registrant's Executive Severance Plan, effective as of January 1, 2013, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 2012.

94

Exhibit Number	Exhibit Index
(10.12)*	Registrant’s Senior Executive Severance Plan, as amended and restated as of January 1, 2012, incorporated by reference from the Registrant's Form 10-K for the fiscal year ended December 31, 2011.
(10.13)	$1,000,000,000 Four-Year Credit Agreement dated as of June 19, 2013 among the Registrant, Standard & Poor’s Financial Services LLC, as guarantor, the lenders listed therein, JP Morgan Chase Bank, N.A., as administrative agent, and Bank of America, N.A., as syndication agent, incorporated by reference from the Registrant’s Form 8-K filed June 20, 2013.
(10.14)*	Registrant’s Employee Retirement Plan Supplement, as amended and restated as of January 1, 2008, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 2007.
(10.15)*	First Amendment to Registrant’s Employee Retirement Plan Supplement, effective as of January 1, 2009, incorporated by reference from the Registrant’s Form 10-K for the fiscal year ended December 31, 2009.
(10.16)*	Second Amendment to Registrant’s Employee Retirement Plan Supplement, effective generally as of January 1, 2010, incorporated by reference from the Registrant’s Form 10-K for the fiscal year ended December 31, 2009.
(10.17)*	Third Amendment to Registrant’s Employee Retirement Plan Supplement, effective generally as of January 1, 2012, incorporated from the Registrant's Form 10-K for the fiscal year ended December 31, 2011.
(10.18)*	Fourth Amendment to Registrant’s Employee Retirement Plan Supplement, effective generally as of May 1, 2013.
(10.19)*	Standard & Poor’s Employee Retirement Plan Supplement, as amended and restated as of January 1, 2008, incorporated by reference from the Registrant’s Form 10-K for the fiscal year ended December 31, 2009.
(10.20)*	First Amendment to Standard & Poor’s Employee Retirement Plan Supplement, effective as of December 2, 2009, incorporated by reference from the Registrant’s Form 10-K for the fiscal year ended December 31, 2009.
(10.21)*	Second Amendment to Standard & Poor’s Employee Retirement Plan Supplement, effective as of January 1, 2010, incorporated by reference from the Registrant’s Form 10-K for the fiscal year ended December 31, 2009.
(10.22)*	Third Amendment to Standard & Poor’s Employee Retirement Plan Supplement, effective as of January 1, 2012, incorporated from the Registrant's Form 10-K for the fiscal year ended December 31, 2011.
(10.23)*	Fourth Amendment to Standard & Poor’s Employee Retirement Plan Supplement, effective generally as of January 1, 2014.
(10.24)*	Registrant’s 401(k) Savings and Profit Sharing Supplement, as amended and restated as of January 1, 2008, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 2007.
(10.25)*	Amendment to Registrant’s 401(k) Savings and Profit Sharing Supplement, effective as of December 2, 2009, incorporated by reference from the Registrant’s Form 10-K for the fiscal year ended December 31, 2009.
(10.26)*	Amendment to Registrant's 401(k) Savings and Profit Sharing Plan Supplement, effective as of January 1, 2013, incorporated from Registrant’s Form 10-K for the fiscal year ended December 31, 2012.
(10.27)*	Amendment to Registrant’s 401(k) Savings and Profit Sharing Plan Supplement, effective generally as of January 1, 2014.
(10.28)*	Registrant’s Management Supplemental Death and Disability Benefits Plan, as amended January 24, 2006, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 2005.
(10.29)*	Amendment to Registrant’s Management Supplemental and Disability Benefits Plan, effective as of January 1, 2010, incorporated by reference from the Registrant’s Form 10-K for the fiscal year ended December 31, 2009.

95

Exhibit Number		Exhibit Index
(10.30)*		Registrant’s Senior Executive Supplemental Death, Disability & Retirement Benefits Plan, as amended and restated as of January 1, 2008, incorporated by reference from Registrant's Form 10-K for the fiscal year ended December 31, 2007.
(10.31)*		Amendment to Registrant’s Senior Executive Supplemental Death, Disability & Retirement Benefits Plan, effective as of January 1, 2010, incorporated by reference from the Registrant’s Form 10-K for the fiscal year ended December 31, 2009.
(10.32)*		Registrant's Director Retirement Plan, incorporated by reference from Registrant’s Form SE filed March 29, 1990 in connection with Registrant’s Form 10-K for the fiscal year ended December 31, 1989.
(10.33)*		Resolutions Freezing Existing Benefits and Terminating Additional Benefits under Registrant’s Directors Retirement Plan, as adopted on January 31, 1996, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 1996.
(10.34)*		Registrant’s Director Deferred Compensation Plan, as amended and restated as of January 1, 2008, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 2007.
(10.35)*		Registrant’s Director Deferred Stock Ownership Plan, incorporated by reference from Registrant’s Form 10-K for the fiscal year ended December 31, 2010.
(10.36)*		Amendment dated December 9, 2011 to offer letter dated November 2, 2010 to Jack F. Callahan, Jr., Executive Vice President and Chief Financial Officer, incorporated from the Registrant's Form 10-K for the fiscal year ended December 31, 2011.
(10.37)*		Amendment dated December 9, 2011 to offer letter dated October 27, 2010 to John L. Berisford, Executive Vice President, Human Resources, incorporated from the Registrant's Form 10-K for the fiscal year ended December 31, 2011.
(10.38)*		Communication dated January 25, 2012 regarding the equity enhancements under the Growth and Value Severance Program, incorporated from the Registrant's Form 10-K for the fiscal year ended December 31, 2011.
(10.39)*		Letter Agreement, dated July 11, 2013, with Harold McGraw III regarding his compensation arrangement for serving as Non-Executive Chairman of the Board, incorporated by reference from Registrant’s Form 8-K filed July 11, 2013.
(12	)	Computation of Ratio of Earnings to Fixed Charges.
(21	)	Subsidiaries of the Registrant.
(23	)	Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.
(31.1	)	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
(31.2	)	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
(32	)	Certification of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(101.INS)		XBRL Instance Document
(101.SCH)		XBRL Taxonomy Extension Schema
(101.CAL)		XBRL Taxonomy Extension Calculation Linkbase

96

Exhibit Number	Exhibit Index
(101.LAB)	XBRL Taxonomy Extension Label Linkbase
(101.PRE)	XBRL Taxonomy Extension Presentation Linkbase
(101.DEF)	XBRL Taxonomy Extension Definition Linkbase
(101.LAB)	XBRL Taxonomy Extension Label Linkbase
(101.PRE)	XBRL Taxonomy Extension Presentation Linkbase
(101.DEF)	XBRL Taxonomy Extension Definition Linkbase

 * These exhibits relate to management contracts or compensatory plan arrangements.

97

EX-10.4

Exhibit (10.4)

Long-Term Stock Incentive Plan

Plan Year:  2014

Non-Qualified Stock Option

Name:  [ParticipantName]

McGraw Hill Financial, Inc. hereby grants to you a Non-Qualified Stock Option to purchase [AwardsGranted] shares of Common Stock of the Company at [GrantPrice] per share, subject to the following terms and conditions:

The Non-Qualified Stock Option is issued in accordance with and subject to the provisions of the 2002 Stock Incentive Plan, as amended, and may be exercised only to the extent and under the conditions set forth in the Plan. 

This Non-Qualified Stock Option shall expire as provided in the Plan, but no later than [ExpirationDate].

This Non-Qualified Stock Option shall be exercisable as follows:

33% on and after

33% on and after

34% on and after

This Non-Qualified Stock Option may not be transferred except by will or intestacy, and during your lifetime shall be exercisable only by you.

The Compensation and Leadership Development Committee of the Board has determined that this Non-Qualified Stock Option will be exercisable for the full term of the option if employment is terminated by reason of Disability, Normal Retirement or Early Retirement.  If employment is terminated by reason of resignation, this Non-Qualified Stock Option will be exercisable, to the extent it was exercisable at the date of your termination, for a period of three months from the date of such termination of employment or until the expiration of the option term, whichever period is shorter.

In the event of any error in recording here the amount or amounts of any award or awards made by the Compensation and Leadership Development Committee of the Board, the official records of the Committee`s action shall control.

McGraw Hill Financial, Inc.

EX-10.6

Exhibit (10.6)

Amendment to the

McGraw Hill Financial, Inc.

Key Executive Short-Term Incentive Compensation Plan (“KESIP”)

The KESIP is hereby amended, effective as of June 25, 2013 (the “Effective Date”), as follows:

1.    Section 4.5(a) of the KESIP is deleted in its entirety and replaced with the following:

(a)    If a Participant’s employment with the Company terminates during any Year because of a termination by the Company other than for Cause and the Participant is not Retirement Eligible (as defined in Section 4.5(b) below) on the effective date of the termination of employment, then the Participant, subject to the Participant executing a general release of claims against the Company in a form reasonably satisfactory to the Company, shall receive a Termination Award Payment for the portion of the Year during which the Participant was employed by the Company and participating in the Plan. Unless the Committee specifies an earlier payment date, such Termination Award Payment shall be made at the time that Award Payments for the applicable Year are made to other Participants.

2.    Section 4.5(b) of the KESIP is re-lettered Section 4.5(c) and a new Section 4.5(b) is inserted after Section 4.5(a) to read as follows:

(b)    If a Participant’s employment with the Company terminates during any Year because of (i) death, Disability or Retirement or (ii) a termination by the Company other than for Cause and the Participant is Retirement Eligible on the date of the termination of employment, then the Participant (or in the event of death, the Participant’s Beneficiary), subject to the Participant executing (or in the event of death, the Participant’s Beneficiary) a general release of claims against the Company in a form reasonably satisfactory to the Company, shall be eligible to receive a Pro Rata Actual Award Payment (as defined below) for the portion of the Year during which the Participant was employed by the Company and participating in the Plan. Unless the Committee specifies an earlier payment date, such Pro Rata Actual Award Payment shall be made at the time that Award Payments for the applicable Year are made to other Participants. For purposes of this Section 4.5(b), “Retirement Eligible” means eligible as of the date of the Participant’s termination of employment (as shown on the books and records of the Company) for Normal Retirement or, with the approval of the Committee, Early Retirement. Solely for purposes of this Section 4.5(b), “Pro Rata Actual Award Payment” means an amount determined by multiplying X by Y: where “X” equals the actual Award Payment for an Award that a Participant would have received if the Participant had remained continuously employed by the Company through the Award payment date, determined on the basis of the achievement of performance measures for the Year and as adjusted in the Committee’s discretion for any applicable subjective or objective performance measures applicable to the Award or the Participant; and “Y”

equals a fraction, the numerator is the number of whole calendar months in the portion of the Year during which the Participant was employed by the Company and participating in the Plan and the denominator is 12. For purposes of the numerator of clause Y of the previous sentence, a Participant shall receive full credit for a calendar month if the Participant is participating in the Plan and continuously employed by the Company through at least the 15^th day of that month and shall receive no credit for a month if the Participant’s Retirement, death or Disability occurs prior to 15^th day of the month. Notwithstanding the above, if the Award is a Covered Award, in no event shall the amount of the Award Payment payable under this Section 4.5(b) exceed the percentage of Net Income set forth in Section 5.2 for the Covered Award.

3.    This Amendment shall be effective for the 2013 and later Years (as defined in KESIP) and shall apply only to termination of employment occurring on or after the Effective Date.

EX-10.18

Exhibit (10.18)

Amendment Four to

The McGraw-Hill Companies, Inc. Employee Retirement Plan Supplement

The McGraw-Hill Companies, Inc. Employee Retirement Plan Supplement (the “MH ERP Supplement”), as amended and restated as of January 1, 2008, is amended as provided below.

1.    Effective May 1, 2013, the MH ERP Supplement is renamed the “McGraw-Hill Financial, Inc. Employee Retirement Plan Supplement” and Article I is amended to add the following at the end thereof: “Effective as of May 1, 2013, the name of the Plan was changed to the ‘McGraw Hill Financial Employee Retirement Plan Supplement.’”

2.    Effective May 1, 2013, Section 2.14 is amended by replacing “The McGraw-Hill

Companies, Inc.” with “McGraw Hill Financial, Inc.”

3.    Effective May 1, 2013, Section 2.18 is amended by replacing “The McGraw-Hill Companies, Inc. Flexible Spending Account Plan” with “the McGraw Hill Financial, Inc. Flexible Spending Account Plan” and replacing “The 401(k) Savings and Profit Sharing Plan of The McGraw-Hill Companies, Inc. and Its Subsidiaries” with “The 401(k) Savings and Profit Sharing Plan of McGraw Hill Financial, Inc. and Its Subsidiaries”.

4.    Effective May 1, 2013, Section 2.25 is amended by replacing “Employee Retirement Plan of The McGraw-Hill Companies, Inc. and Its Subsidiaries” with “Employee Retirement Plan of McGraw Hill Financial, Inc. and Its Subsidiaries”.

5.    Effective December 31, 2013, Section 2.25 is amended to read as follows:

"ERP" means the Employee Retirement Plan of McGraw Hill Financial, Inc. and Its Subsidiaries. Effective December 31, 2013, as used in this Plan, the term “ERP” shall mean only that portion of the Employee Retirement Plan of McGraw Hill Financial, Inc. and its Subsidiaries applicable to Participants in that Plan who are not S&P Plan Participants, as those terms are defined in that plan, and does

not include Section XVI, Appendix PP, or Appendix QQ of that plan.

6.    Effective May 1, 2013, Section 2.28 is amended by replacing “The McGraw-Hill Companies, Inc. Key Executive Short-Term Incentive Deferred Compensation Plan” with “the McGraw Hill Financial, Inc. Key Executive Short-Term Incentive Deferred Compensation Plan”.

7.    Effective May 1, 2013, Section 2.30 is amended by replacing “The McGraw Hill Companies, Inc. Employee Retirement Supplement” with “the McGraw Hill Financial, Inc. Employee Retirement Supplement”.

8.    Effective May 1, 2013, Section 2.35 is replaced in its entirety with the following.

“Severance Plan” means the McGraw Hill Financial, Inc. Management Severance Plan; the McGraw Hill Financial, Inc. Executive Severance Plan; or the McGraw Hill Financial, Inc. Senior Executive Severance Plan; as amended from time to time, or successor programs thereto.

9.    Effective May 1, 2013, Section 5.04 is amended by replacing “The McGraw-Hill Companies, Inc. Senior Executive Supplemental Death, Disability & Retirement Benefits Plan” with “the

McGraw Hill Financial, Inc. Senior Executive Supplemental Death, Disability & Retirement Benefits Plan”.

*    *    *

Except as set forth herein, the MH ERP Supplement remains in full force and effect.

EX-10.23

Exhibit (10.23)

Amendment Four to

Standard & Poor’s Employee Retirement Plan Supplement

The Standard & Poor’s Employee Retirement Plan Supplement (the “S&P ERP Supplement”), as amended and restated as of January 1, 2008, is amended as provided below.

1.    Effective January 1, 2014, Section 2.05 (“Benefit”) is amended by adding the following at the end thereof:

; provided that no Benefit shall accrue under the Plan on or after January 1, 2014.

2.    Effective May 1, 2013, Section 2.11 is amended by replacing “The McGraw-Hill

Companies, Inc.” with “McGraw Hill Financial, Inc.”

3.    Effective May 1, 2013, Section 2.14 is amended by replacing “The McGraw-Hill Companies, Inc. Flexible Spending Account Plan” with “the McGraw Hill Financial, Inc. Flexible Spending Account Plan” and replacing “The 401(k) Savings and Profit Sharing Plan of The McGraw-Hill Companies, Inc. and Its Subsidiaries” with “The 401(k) Savings and Profit Sharing Plan of McGraw Hill Financial, Inc. and Its Subsidiaries”.

4.    Effective January 1, 2014, Section 2.20 (“ERP”) is amended to read as follows:

2.20    “ERP” means the Standard & Poor’s Employee Retirement Plan, as amended from time to time, which was merged effective December 31, 2013, with and into the Employee Retirement Plan of McGraw Hill Financial, Inc. and Its Subsidiaries, as amended from time to time. Effective December 31, 2013, as used in this Plan, the term “ERP” shall mean only that portion of the Employee Retirement Plan of McGraw Hill Financial, Inc. and its Subsidiaries applicable to “S&P Plan Participants” as that term is defined in that plan.

5.    Effective May 1, 2013, Section 2.23 is amended by replacing “The McGraw-Hill Companies, Inc. Key Executive Short-Term Incentive Deferred Compensation Plan” with “the McGraw Hill Financial, Inc. Key Executive Short-Term Incentive Deferred Compensation Plan”.

6.    Section 2.24 (“Participant”) is amended by adding the following at the end thereof:

; provided that no new Participants shall be permitted into the Plan on or after January 1,

2014.

7.    Effective May 1, 2013, Section 2.28 is replaced in its entirety with the following.

“Severance Plan” means the McGraw Hill Financial, Inc. Management Severance Plan;

the McGraw Hill Financial, Inc. Executive Severance Plan; or the McGraw Hill

Financial, Inc. Senior Executive Severance Plan; as amended from time to time, or successor programs thereto.

8.    Effective May 1, 2013, Section 2.32 is amended by replacing “The 401(k)

Savings and Profit Sharing Plan of The McGraw-Hill Companies, Inc. and Its Subsidiaries” with “The 401(k) Savings and Profit Sharing Plan of McGraw Hill Financial, Inc. and Its Subsidiaries”.

9.    Effective January 1, 2014, Section 4.02 is amended by adding the following at the end thereof:

; provided that no new Participants shall be permitted into the Plan on or after January 1,

2014.

10.    Effective January 1, 2014, Section 5.01(a) is amended by adding the following sentence at the end thereof:

Notwithstanding the foregoing, (x) subsection (A) of this Section 5.01(a) shall not apply to any year that begins on or after January 1, 2014, and (y) subsections (B) and (C) of this Section 5.01(a) shall not apply to any amount deferred under the Key• Executive Plan or any deferred salary or short-term incentive compensation that is deferred by the Participant on or after January 1, 2014.

11.    Effective January 1, 2014, Section 5.02(a) is amended by adding the following sentence at the end thereof:

Notwithstanding the foregoing, Section 5.02(a) of the Plan shall not apply to any benefit that has accrued under the ERP on or after January 1, 2014.

12.    Effective January 1, 2014, Section 5.02(b) is amended by adding the following sentence at the end thereof:

Notwithstanding the foregoing, Section 5.02(b) of the Plan shall not apply to any

Severance Plan Earnings that are paid to any Severance Plan Participant on or after January 1,

2014.

13.    Effective January 1, 2014, Article V is amended to incorporate new Section 5.05, as set forth below:

5.05    Accrual of Benefits. Notwithstanding this Article V, no Participant shall accrue a Benefit under this Article V on or after January 1, 2014.

*    *    *

Except as set forth herein, the S&P ERP Supplement remains in full force and effect.

EX-10.27

Exhibit (10.27)

Amendment to

The McGraw-Hill Companies, Inc. 401(k) Savings and Profit Sharing Plan Supplement

The McGraw-Hill Companies, Inc. 401(k) Savings and Profit Sharing Plan Supplement (the “MH 401(k) Supplement”), as amended and restated as of January 1, 2008, is amended as provided below.

1.    Effective May 1, 2013, the MH 401(k) Supplement is renamed the “McGraw Hill Financial, Inc. 401(k) Savings and Profit Sharing Plan Supplement” and Article I is amended to add the following at the end thereof: “Effective as of May 1, 2013, the name of the Plan was changed to the ‘McGraw Hill Financial, Inc. 401(k) Savings and Profit Sharing Plan Supplement.’”

2.    Effective May 1, 2013, Section 2.12 is amended by replacing “The McGraw-Hill

Companies, Inc.” with “McGraw Hill Financial, Inc.”

3.    Effective May 1, 2013, Section 2.15 is amended by replacing “The McGraw-Hill Companies, Inc. Flexible Spending Account Plan” with “the McGraw Hill Financial, Inc. Flexible Spending Account Plan”.

4.    Effective May 1, 2013, Section 2.23 is amended by replacing “The McGraw-Hill Companies, Inc. Key Executive Short-Term Incentive Deferred Compensation Plan” with “the McGraw Hill Financial, Inc. Key Executive Short-Term Incentive Deferred Compensation Plan”.

5.    Effective May 1, 2013, Section 2.28 is amended by replacing “The McGraw-Hill Companies, Inc. 401(k) Savings and Profit Sharing Plan Supplement” with “the McGraw Hill Financial, Inc. 401(k) Savings and Profit Sharing Plan Supplement”.

6.    Effective May 1, 2013, Section 2.31 is replaced in its entirety with the following:

“Severance Plan” means the McGraw Hill Financial, Inc. Management Severance Plan; the McGraw Hill Financial, Inc. Executive Severance Plan; or the McGraw Hill Financial, Inc. Senior Executive Severance Plan; as amended from time to time, or successor programs thereto.

7.    Effective May 1, 2013, Section 2.34 is amended by replacing “The 401(k)

Savings and Profit Sharing Plan of The McGraw-Hill Companies, Inc. and Its Subsidiaries” with “The 401(k) Savings and Profit Sharing Plan of McGraw Hill Financial, Inc. and Its Subsidiaries”.

8.    Effective for deferrals made on and after January 1, 2014, Section 5.06(a) is amended to add the following at the end thereof:

This Section 5.06 shall not apply to Severance Plan Earnings. Notwithstanding the foregoing, effective for years commencing on and after January 1, 2014, the Plan Administrator may permit, in its discretion, a Participant’s election to apply to such amounts expected to be earned as base salary or wages in the year after the election (such discretion to be evidenced in election forms or other written communications provided to the applicable Participant).

9.    Effective for deferrals made on and after January 1, 2014, Section 5.06(b) is amended to read as follows:

(b) A deferral election made pursuant to Section 5.06(a) must be made in the form and manner prescribed by the Plan Administrator in its sole discretion during the deferral election period adopted by the Plan Administrator in its sole discretion, provided, however, that, except as provided in the last sentence of Section 5.06(a) or in Section

5.06(f), in no event will the last day of any deferral election period extend beyond December 31st of the year that is two years prior to the year within which the Earnings subject to the deferral election are paid. By way of example, except as provided in the last sentence of Section 5.06(a) or in Section 5.06(f), the deferral election period for Earnings that will be paid in 2014 must end on or prior to December 31, 2012. In the

case of a deferral election made under the last sentence of Section 5.06(a), in no event will the last day of any deferral election period extend beyond December 31st of the year prior to the year within which the base salary or wages subject to the deferral election is paid.

10.    Effective January 1, 2014, a new Section 5.06(f) shall be added as follows:

Notwithstanding anything to contrary herein, effective January 1, 2014, the Plan

Administrator may permit, in its discretion (such discretion to be evidenced in election

forms or other written communications provided to the applicable Participant), a Participant who first becomes eligible to participate in the Plan on or after the beginning of a Plan Year, as determined in accordance with Treasury Regulation Section 1.409A-

2(a)(7)(ii), to elect to defer up to 6% of his or her Earnings in excess of the limitation on Earnings under Section 401(a)(17) of the Code (or any successor provision) paid for services performed after such election, provided that such Participant (1) submits a deferral election to the Plan Administrator within 30 days after the Participant becomes eligible to participate in the Plan, and (2) has not been eligible to participate in this Plan or in any other plan that would be aggregated with the participant deferral portion of this Plan under Treasury Regulation Section 1.409A-1(c) at any time during the 24-month period ending on the date he or she became eligible to participate in the Plan.

*    *    *

Except as set forth herein, the MH 401(k) Supplement remains in full force and effect.

EX-12

Exhibit (12)

McGraw Hill Financial, Inc.

Computation of Ratio of Earnings to Fixed Charges

(in millions)

	Years ended December 31,
	2013			2012			2011			2010			2009
Earnings:
Income from continuing operations before taxes on income	$	1,346	1	$	1,130	2	$	1,000	3	$	943	4	$	876	5
Fixed charges 6	125			130			134			137			132
Total earnings	$	1,471		$	1,260		$	1,134		$	1,080		$	1,008
Fixed charges:6
Interest expense	$	62		$	81		$	86		$	89		$	89
Portion of rental payments deemed to be interest	62			48			47			47			42
Amortization of debt issuance costs and discount	1			1			1			1			1
Total fixed charges	$	125		$	130		$	134		$	137		$	132
Ratio of earnings to fixed charges:	11.8		x	9.7		x	8.5		x	7.9		x	7.6		x

¹ Includes the impact of the following items: $77 million pre-tax legal settlements, $64 million charge for Growth and Value Plan costs, a $36 million non-cash impairment charge related to the facilities and associated infrastructure of one of our data centers that we are in the process of selling, a $28 million restructuring charge in the fourth quarter primarily related to severance, $13 million related to terminating various leases as we reduce our real estate portfolio and a $24 million net gain from our dispositions.

² Includes the impact of the following items: $135 million charge for Growth and Value Plan costs, a $68 million restructuring charge, transaction costs of $15 million for our S&P Dow Jones Indices LLC joint venture, an $8 million charge related to a reduction in our lease commitments, partially offset by a vacation accrual reversal of $52 million.

³ Includes the impact of the following items: a $32 million restructuring charge and a $10 million charge for Growth and Value Plan costs.

⁴ Includes the impact of the following items: a $16 million charge for subleasing excess space in our New York facilities, an $11 million restructuring charge and a $7 million gain on the sale of certain equity interests at Standard & Poor's Ratings.

⁵   Includes the impact of the following items: a $14 million loss on the sale of Vista Research, Inc., an $11 million gain on the sale of BusinessWeek and a $4 million net restructuring charge.

⁶"Fixed charges" consist of (1) interest on debt and interest related to the sale leaseback of Rock-McGraw, Inc. (see Note 12 - Commitments and Contingencies to the consolidated financial statements under Item 8, Consolidated Financial Statements and Supplementary Data, in this Form 10-K), (2) the portion of our rental expense deemed representative of the interest factor in rental expense, and (3) amortization of debt issue costs and discount to any indebtedness.

EX-21

Exhibit (21)

McGraw Hill Financial, Inc.

Subsidiaries of Registrant

Listed below are all the subsidiaries of McGraw Hill Financial, Inc. ("MHFI"), except certain inactive subsidiaries and certain other MHFI subsidiaries which are not included in the listing because considered in the aggregate they do not constitute a significant subsidiary as of the date this list was compiled.

Subsidiaries	State or Jurisdiction of Incorporation	Percentage of Voting  Securities Owned
Asia Index Private Limited	India	50
Bentek Energy, LLC	Colorado, United States	100
Capital IQ, Inc.	Delaware, United States	100
Capital IQ Information Systems (India) Pvt. Ltd.	India	100
Capital IQ S.R.L.	Argentina	100
ClariFI, Inc.	Delaware, United States	100
Coalition Development Ltd.	England & Wales	100
Coalition Development Systems (India) Private Limited	India	100
Coalition Singapore Pte. Ltd.	Singapore	100
Credit Market Analysis Limited	England & Wales	100
Credit Market Analysis USA Inc.	Delaware, United States	100
CRISIL Irevna Argentina S.A.	Argentina	100
CRISIL Limited	India	67.8
CRISIL Risk and Infrastructure Solutions, Ltd.	India	100
CRISIL Irevna Poland Sp. Z.o.o.	Poland	100
DJI Opco LLC	Delaware, United States	100
Financial Data Exchange Limited	England & Wales	100
Funds Research USA, LLC	Delaware, United States	100
Grupo McGraw-Hill Companies, S. de R.L. de C.V.	Mexico	100
Grupo Standard & Poor’s, S.A. de C.V.	Mexico	100
International Advertising/McGraw‑Hill LLC	Delaware, United States	100
Irevna Limited	England & Wales	100
Irevna, LLC	Delaware, United States	100
J.D. Power and Associates	Delaware, United States	100
J.D. Power and Associates, GmbH	Germany	100
J.D. Power Asia Pacific K.K.	Japan	100
J.D. Power Commercial Consulting (Shanghai) Co., Ltd.	China	100
J. Kingsman Limited	England & Wales	100
Kingsman SA	Switzerland	100
McGraw-Hill Asian Holdings (Singapore) Pte. Ltd.	Singapore	100
McGraw-Hill Australia Pty Limited	Australia	100
McGraw-Hill Cayman Co. Limited	Cayman Islands	100
McGraw-Hill Finance Europe Limited	England & Wales	100
McGraw-Hill Finance (UK) Ltd.	England & Wales	100
McGraw-Hill Financial Asia Pacific LLC	Delaware, United States	100
McGraw Hill Financial Commodities UK Limited	England & Wales	100
McGraw Hill Financial European Holdings (Luxembourg) S.à.r.l.	Luxembourg	100
McGraw Hill Financial Global Holdings (Luxembourg) S.à.r.l.	Luxembourg	100
McGraw Hill Financial Informacoes do Brasil Limitada	Brazil	100
McGraw-Hill Financial International LLC	Delaware, United States	100

Subsidiaries	State or Jurisdiction of Incorporation	Percentage of Voting  Securities Owned
McGraw Hill Financial (Ireland) Limited	Ireland	100
McGraw-Hill Financial Japan K.K.	Japan	100
McGraw Hill Financial (Luxembourg) S.à.r.l.	Luxembourg	100
McGraw-Hill Financial Research Europe Limited	England & Wales	100
McGraw-Hill Financial Singapore Pte. Limited	Singapore	100
McGraw-Hill (France) SAS	France	100
McGraw-Hill (Germany) GmbH	Germany	100
McGraw-Hill Holdings Europe Limited	England & Wales	100
McGraw-Hill Holdings (UK) Limited	England & Wales	100
McGraw-Hill Indices Guarantee Co. (UK) Ltd	England & Wales	100
McGraw-Hill Indices U.K. Limited	England & Wales	100
McGraw-Hill International (U.K.) Limited	England & Wales	100
McGraw-Hill International Holdings LLC	Delaware, United States	100
McGraw-Hill Korea, Inc.	Korea	100
McGraw-Hill (Malaysia) Sdn. Bhd	Malaysia	100
McGraw-Hill News Bureaus, Inc.	New York, United States	100
McGraw-Hill New York, Inc.	New York, United States	100
McGraw-Hill Real Estate, Inc.	New York, United States	100
McGraw-Hill S&P Iberia, S.L.	Spain	100
McGraw-Hill (Sweden) AB	Sweden	100
McGraw-Hill Ventures, Inc.	Delaware, United States	100
Mercator Info Services India Private Limited	India	100
Money Market Directories, Inc.	New York, United States	100
Nippon Standard & Poor’s K.K.	Japan	100
Pipal Research Analytics and Information Services India Limited	India	100
Platts Finance (Luxembourg) Sarl	Luxembourg	100
Platts (U.K.) Limited	England & Wales	100
QuantHouse, Inc.	Delaware, United States	100
Quant House SAS	France	100
Quant House UK Limited	England & Wales	100
Quotevision Limited	England & Wales	100
R² Financial Technologies Inc.	Ontario, Canada	100
S&P/CITIC Index Information Services (Beijing) Co., Ltd.	China	50
S&P DJ Indices UK Ltd	England & Wales	100
S&P Dow Jones Indices LLC	Delaware, United States	73
S&P India LLC	Delaware, United States	100
S&P Opco LLC	Delaware, United States	100
SBB China Ltd	China	100
SBB Danismanlik Ltd	Turkey	100
SBB Singapore Pte Ltd	Singapore	100
SPDJ Singapore Pte Ltd.	Singapore	100
Standard & Poor's (Australia) Pty Ltd.	Australia	100
Standard & Poor’s Credit Market Services France SAS	France	100
Standard & Poor’s Credit Market Services Europe Limited	England & Wales	100
Standard & Poor’s Credit Market Services Italy S.r.l.	Italy	100
Standard & Poor’s (Dubai) Limited	United Arab Emirates	100
Standard & Poor’s Europe LLC	Delaware, United States	100

Subsidiaries	State or Jurisdiction of Incorporation	Percentage of Voting  Securities Owned
Standard & Poor’s Financial Services LLC	Delaware, United States	100
Standard & Poor’s Hong Kong Limited	Hong Kong	100
Standard & Poor’s Information Services (Australia) Pty Ltd.	Australia	100
Standard & Poor’s Information Services (Beijing) Co., Ltd.	China	100
Standard & Poor's International, LLC	Delaware, United States	100
Standard & Poor’s International Services LLC	Delaware, United States	100
Standard & Poor’s Investment Advisory Services (HK) Limited	Hong Kong	100
Standard & Poor’s Investment Advisory Services LLC	Delaware, United States	100
Standard & Poor's, LLC	Delaware, United States	100
Standard & Poor’s Maalot Ltd.	Israel	100
Standard & Poor’s Malaysia Sdn. Bhd.	Malaysia	100
Standard & Poor’s Philippines Inc.	Philippines	100
Standard & Poor’s Ratings Argentina S.R.L.	Argentina	100
Standard & Poor’s Ratings do Brasil, Ltda.	Brazil	100
Standard & Poor’s Ratings Japan K.K.	Japan	100
Standard & Poor’s Ratings Management Service (Shanghai) Co., Ltd.	China	100
Standard & Poor’s Rus Ratings Limited	Russia	100
Standard & Poor’s, S.A. de C.V.	Mexico	100
Standard & Poor’s Securities Evaluations, Inc.	New York, United States	100
Standard & Poor’s Singapore Pte. Ltd.	Singapore	100
Standard & Poor’s South Asia Services (Private) Limited	India	100
Steel Business Briefing North America, Inc.	Pennsylvania, United States	100
Taiwan Ratings Corporation	Taiwan	51
The McGraw-Hill Companies (Canada) Corp.	Nova Scotia, Canada	100
The McGraw-Hill Companies Limited	England & Wales	100
The McGraw-Hill Companies S.r.l.	Italy	100
The Steel Index Limited	England & Wales	100
WaterRock Insurance, LLC	Vermont, United States	100

EX-23

Exhibit (23)

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

1. Registration Statement (Form S-3 No. 333-146981) pertaining to the Debt Securities of The McGraw-Hill Companies, Inc.,

2. Registration Statements (Form S-8 No. 33-49743, No. 333-30043 and No. 333-40502) pertaining to the 1993 Employee Stock Incentive Plan,

3. Registration Statements (Form S-8 No. 333-92224 and No. 333-116993) pertaining to the 2002 Stock Incentive Plan,

4. Registration Statement (Form S-8 No. 333-06871) pertaining to the Director Deferred Stock Ownership Plan,

5. Registration Statement (Form S-8 No. 33-50856) pertaining to The Savings Incentive Plan of McGraw-Hill, Inc. and its Subsidiaries, The Employee Retirement Account Plan of McGraw-Hill, Inc. and its Subsidiaries, The Standard & Poor's Savings Incentive Plan for Represented Employees, The Standard & Poor's Employee Retirement Account Plan for Represented Employees, The Employees' Investment Plan of McGraw-Hill Broadcasting Company, Inc. and its Subsidiaries,

6. Registration Statement (Form S-8 No. 333-126465) pertaining to The Savings Incentive Plan of The McGraw-Hill Companies, Inc. and its Subsidiaries, The Employee Retirement Account Plan of The McGraw-Hill Companies, Inc. and its Subsidiaries, The Standard & Poor's Savings Incentive Plan for Represented Employees, and The Standard & Poor's Employee Retirement Account Plan for Represented Employees,

7. Registration Statement (Form S-8 No. 333-157570) pertaining to The 401(k) Savings and Profit Sharing Plan of The McGraw-Hill Companies, Inc. and its Subsidiaries, and The Standard & Poor's 401(k) Savings and Profit Sharing Plan for Represented Employees,

8. Registration Statement (Form S-8 No. 333-167885) pertaining to The Amended and Restated 2002 Stock Incentive Plan, and

9. Registration Statement (Form S-8 No. 333-170902) pertaining to The 401(k) Savings and Profit Sharing Plan of The McGraw-Hill Companies, Inc. and its Subsidiaries, and The Standard & Poor's 401(k) Savings and Profit Sharing Plan for Represented Employees

of our reports dated February 7, 2014, with respect to the consolidated financial statements and schedule of McGraw Hill Financial, Inc. and the effectiveness of internal control over financial reporting of McGraw Hill Financial, Inc. included in this Annual Report (Form 10-K) for the year ended December 31, 2013.

/s/ERNST & YOUNG LLP

New York, New York

February 7, 2014

EX-31.1

Exhibit (31.1)

Certification pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended

I, Douglas L. Peterson, certify that:

1. I have reviewed this Form 10-K of McGraw Hill Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: February 7, 2014	/s/Douglas L. Peterson
	Douglas L. Peterson
	President and Chief Executive Officer

EX-31.2

Exhibit (31.2)

Certification pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended

I, Jack F. Callahan, Jr., certify that:

1. I have reviewed this Form 10-K of McGraw Hill Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: February 7, 2014	/s/ Jack F. Callahan, Jr.
	Jack F. Callahan, Jr.
	Executive Vice President and Chief Financial Officer

EX-32

Exhibit (32)

Certifications pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, each of the undersigned officers of McGraw Hill Financial, Inc. (the “Company”), does hereby certify, to such officer's knowledge, that:

The Form 10-K of the Company for the year ended December 31, 2013 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 7, 2014	/s/Douglas L. Peterson
	Douglas L. Peterson
	President and Chief Executive Officer
Date: February 7, 2014	/s/Jack F. Callahan, Jr.
	Jack F. Callahan, Jr.
	Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Acquisitions and Divestitures (Acquisitions) (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended	12 Months Ended
	Jun. 29, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Consideration Transferred:
Total consideration transferred	$ 792	$ 0	$ 792	$ 0
Preliminary Purchase Price Allocation:
Goodwill		1,412	1,438	1,104
Liabilities assumed in conjunction with the acquisition of businesses
Fair value of assets acquired		0	1,071	214
Fair value of consideration transferred for DJI business	792	0	792	0
Cash paid (net of cash acquired)		0	177	194
Liabilities assumed		0	102	20
Fair Value of S&P Index [Member]
Consideration Transferred:
Fair value of contribution	571
DJI [Member]
Consideration Transferred:
Total consideration transferred	792
Preliminary Purchase Price Allocation:
Current assets	79
Indefinite-lived intangibles	470
Goodwill	111
Current liabilities	(11)
Total net assets	792
Liabilities assumed in conjunction with the acquisition of businesses
Fair value of consideration transferred for DJI business	792
DJI [Member] | Customer relationships
Preliminary Purchase Price Allocation:
Finite lived intangible assets	110
DJI [Member] | Other Intangible Assets [Member]
Preliminary Purchase Price Allocation:
Finite lived intangible assets	33
DJI [Member] | Fair Value of Noncontrolling interest of DJI [Member]
Consideration Transferred:
Fair value of contribution	$ 221

XML

Employee Benefits (Details 2)	1 Months Ended	12 Months Ended
	Feb. 07, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net periodic cost
Weighted-average healthcare cost rate		5.00%
Retirement Plans [Member]
Benefit obligation
Discount rate		5.00%	4.10%	5.10%
Compensation increase factor				4.50%
Net periodic cost
Discount rate		4.10%	5.10%	5.40%
Compensation increase factor			4.50%	4.50%
Return on assets	7.125%	7.25%	7.75%	8.00%
Postretirement Plans [Member]
Benefit obligation
Discount rate		4.20%	3.45%	4.45%
Net periodic cost
Weighted-average healthcare cost rate		7.00%	7.50%	8.00%
Discount rate		3.45%	4.45%	4.65%
United Kingdom Retirement Plan [Member]
Net periodic cost
Discount rate		4.80%	5.10%	5.50%
Compensation increase factor		5.75%	5.85%	6.25%
Return on assets	6.75%

XML

Taxes on Income (Details 1) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets:
Postretirement benefits	$ 32	$ 201
Employee compensation	72	123
Accrued expenses	142	105
Unearned revenue	55	60
Allowance for doubtful accounts	15	17
Loss carryforwards	28	25
Other	10	0
Total deferred tax assets	354	531
Deferred tax liabilities:
Goodwill and intangible assets	(379)	(379)
Fixed assets	(55)	(54)
Other	0	(1)
Total deferred tax liabilities	(434)	(434)
Net deferred income tax (liability) asset before valuation allowance	(80)	97
Valuation allowance	(5)	(7)
Net deferred income tax (liability) asset	(85)	90
Reported as:
Current deferred tax assets	108	117
Current deferred tax liabilities	(10)	(7)
Non-current deferred tax assets	22	36
Non-current deferred tax liabilities	(205)	(56)
Net deferred income tax (liability) asset	$ (85)	$ 90

XML

Segment and Geographic Information (Narrative) (Details)	12 Months Ended
	Dec. 31, 2013 Country Segment
Segment Reporting [Abstract]
Number of reportable segments	4
Number of countries in which operations is carried on	80
Maximum percentage of consolidated revenue represented by foreign countries	8.00%
Maximum percentage of consolidated revenue represented by single customer	10.00%

XML

Employee Benefits (Details 3) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Effects created by one percentage point change in assumed healthcare cost trend
Effect of 1% point increase on postretirement obligation	$ 4
Effect of 1% point decrease on postretirement obligation	$ (4)

XML

Taxes on Income (Details Textual) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Taxes on income (Textual) [Abstract]
Undistributed earnings of foreign subsidiaries for income tax purposes	$ 930
Net income tax payments	787	243	452
Increase in amount of unrecognized tax benefits that unfavorably impact tax expense	28
Total amount of federal, state and local, and foreign unrecognized tax benefits excluding interest and penalties	82	74	58	53
Accrued interest and penalties associated with uncertain tax positions	19	14
Operating Loss Carryforwards	$ 165

XML

Restructuring (Tables)

12 Months Ended

Dec. 31, 2013

Restructuring and Related Activities [Abstract]

Schedule of initial restructuring charge recorded and the ending reserve balance

The initial restructuring charge recorded and the ending reserve balance as of December 31, 2013 by segment is as follows:

	2013 Restructuring Plan				2012 Restructuring Plan
(in millions)	Initial Charge Recorded		Ending Reserve Balance		Initial Charge Recorded		Ending Reserve Balance
S&P Ratings	$	13	$	13	$	15	3
S&P Capital IQ	10		9		19		1
S&P DJ Indices	—		—		1		—
C&C	10		7		12		2
Corporate	16		10		21		—
Total continuing operations	49		39		68		6
MHE	—		—		39		8
Total	$	49	$	39	$	107	$	14

XML

Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]
Gross rental expense	$ 207	$ 164	$ 158
Less: sublease revenue	(29)	(4)	(2)
Less: Rock-McGraw rent credit	(20)	(19)	(18)
Net rental expense	$ 158	$ 141	$ 138

XML

Employee Benefits (Details 5) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	$ 2,088	$ 1,851
Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	722	650
Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	1,366	1,183
Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	18
Cash and short-term investments, and other [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	68	180
Cash and short-term investments, and other [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	20	2
Cash and short-term investments, and other [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	48	178
Cash and short-term investments, and other [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
US indexed equity securities [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	514	399
US indexed equity securities [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	145	119
US indexed equity securities [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	369	280
US indexed equity securities [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
US growth and value securities [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	373	344
US growth and value securities [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	325	307
US growth and value securities [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	48	37
US growth and value securities [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
UK equity securities [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	183	154
UK equity securities [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	101	85
UK equity securities [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	82	69
UK equity securities [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
International equity securities excluding UK [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	227	225
International equity securities excluding UK [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	131	137
International equity securities excluding UK [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	96	87
International equity securities excluding UK [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	1
Long duration bonds [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	517	370
Long duration bonds [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
Long duration bonds [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	517	370
Long duration bonds [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
Intermediate Duration Securities [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	11	3
Intermediate Duration Securities [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
Intermediate Duration Securities [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	11	3
Intermediate Duration Securities [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
Agency mortgage backed securities
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	7	13
Agency mortgage backed securities | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
Agency mortgage backed securities | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	7	13
Agency mortgage backed securities | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
Asset-backed Securities [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	16	10
Asset-backed Securities [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
Asset-backed Securities [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	16	10
Asset-backed Securities [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
Non-agency mortgage backed securities [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	45	52
Non-agency mortgage backed securities [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
Non-agency mortgage backed securities [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	45	52
Non-agency mortgage backed securities [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
UK fixed income securities [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	66	41
UK fixed income securities [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
UK fixed income securities [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	66	41
UK fixed income securities [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
International fixed income securities excluding UK [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	61	43
International fixed income securities excluding UK [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
International fixed income securities excluding UK [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	61	43
International fixed income securities excluding UK [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total	0	0
Real estate UK [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total		17
Real estate UK [Member] | Level 1 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total		0
Real estate UK [Member] | Level 2 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total		0
Real estate UK [Member] | Level 3 [Member]
Fair value of defined benefit plans assets by asset class
Fair value of defined benefit plans assets by asset class, Total		$ 17

XML

Quarterly Financial Information (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 1,250	$ 1,194	$ 1,250	$ 1,181	$ 1,226	$ 1,116	$ 1,072	$ 1,035	$ 4,875	$ 4,450	$ 3,954
Operating profit	284	407	436	278	347	275	308	282	1,405	1,211	1,077
Net income from continuing operations	190	265	273	174	211	172	180	163	903	726	626
(Loss) income from discontinued operations	(2)	(20)	4	581	(404)	165	40	(36)	563	(234)	308
Net income (loss)	188	245	277	755	(193)	337	220	127	1,466	492	934
Net income attributable to McGraw Hill Financial common shareholders:
Income from continuing operations	173	235	250	153	190	151	176	158	812	676	607
(Loss) income from discontinued operations	(2)	(20)	4	582	(406)	162	39	(35)	564	(239)	304
Net income (loss)	$ 171	$ 215	$ 254	$ 735	$ (216)	$ 314	$ 216	$ 123	$ 1,376	$ 437	$ 911
Basic:
Income from continuing operations (in dollars per share)	$ 0.64	$ 0.86	$ 0.91	$ 0.55	$ 0.68	$ 0.54	$ 0.63	$ 0.57	$ 2.96	$ 2.43	$ 2.03
Income (loss) from discontinued operations (in dollars per share)	$ (0.01)	$ (0.07)	$ 0.01	$ 2.07	$ (1.46)	$ 0.58	$ 0.14	$ (0.13)	$ 2.05	$ (0.86)	$ 1.02
Net income (in dollars per share)	$ 0.63	$ 0.79	$ 0.93	$ 2.62	$ (0.78)	$ 1.13	$ 0.77	$ 0.44	$ 5.01	$ 1.57	$ 3.05
Diluted:
Income from continuing operations (in dollars per share)	$ 0.62	$ 0.84	$ 0.90	$ 0.54	$ 0.67	$ 0.53	$ 0.62	$ 0.56	$ 2.90	$ 2.37	$ 2.00
Income (loss) from discontinued operations (in dollars per share)	$ (0.01)	$ (0.07)	$ 0.01	$ 2.05	$ (1.43)	$ 0.57	$ 0.14	$ (0.13)	$ 2.01	$ (0.84)	$ 1.00
Net income (in dollars per share)	$ 0.62	$ 0.77	$ 0.91	$ 2.59	$ (0.76)	$ 1.10	$ 0.76	$ 0.43	$ 4.91	$ 1.53	$ 3.00

XML

Valuation and Qualifying Accounts (Details) (Allowance for doubtful accounts [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Allowance for doubtful accounts [Member]
Valuation and Qualifying Accounts
Balance at beginning of year	$ 54	$ 29	$ 38
Net charges to income	20	32	26
Deductions and other	(22)	(7)	(35)
Balance at end of year	$ 52	$ 54	$ 29

XML

Segment and Geographic Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Segment information
Revenue	$ 1,250	$ 1,194	$ 1,250	$ 1,181	$ 1,226	$ 1,116	$ 1,072	$ 1,035	$ 4,875	$ 4,450	$ 3,954
Operating Profit	284	407	436	278	347	275	308	282	1,405	1,211	1,077
Depreciation & Amortization									137	141	126
Capital Expenditures									117	97	92
Assets held for sale	61				1,940				61	1,940
Total Assets	6,061				7,052				6,061	7,052
Intersegment elimination [Member]
Segment information
Revenue									(76)	(69)	(63)
Operating Profit									0	0	0
Total operating segments [Member]
Segment information
Revenue									4,875	4,450	3,954
Operating Profit									1,800	1,517	1,303
Depreciation & Amortization									126	124	109
Capital Expenditures									100	84	77
Total Assets	3,787				3,982				3,787	3,982
Unallocated expense [Member]
Segment information
Revenue									0	0	0
Operating Profit									(395)	(306)	(226)
Corporate [Member]
Segment information
Depreciation & Amortization									11	17	17
Capital Expenditures									17	13	15
Total Assets	2,213				1,130				2,213	1,130
S&P Ratings [Member]
Segment information
Revenue									2,274	2,034	1,767
Operating Profit									1,000	849	720
Depreciation & Amortization									45	43	40
Capital Expenditures									40	43	40
Total Assets	630				726				630	726
S&P Capital IQ [Member]
Segment information
Revenue									1,170	1,124	1,031
Operating Profit									211	208	214
Depreciation & Amortization									49	50	43
Capital Expenditures									39	22	21
Total Assets	1,054				1,123				1,054	1,123
S&P Indices [Member]
Segment information
Revenue									493	388	323
Operating Profit									278	212	189
Depreciation & Amortization									10	8	3
Capital Expenditures									4	2	2
Total Assets	1,160				1,133				1,160	1,133
C&C [Member]
Segment information
Revenue									1,014	973	896
Operating Profit									311	248	180
Depreciation & Amortization									22	23	23
Capital Expenditures									17	17	14
Total Assets	$ 943				$ 1,000				$ 943	$ 1,000

XML

Acquisitions and Divestitures (Tables)

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Schedule of considerations transferred for the S&P/DJ Indices acquisition

Consideration Transferred

(in millions)
Fair value of 27% of S&P Index	$	571
Fair value of redeemable noncontrolling interest associated with net assets acquired	221
Total	$	792

Schedule of purchase price allocation for the S&P/DJ Indices acquisition

Purchase Price Allocation

(in millions)
Current assets	$	79
Intangible assets:
Indefinite-lived intangibles	470
Customer relationships	110
Other intangibles	33
Goodwill	111
Current liabilities	(11		)
Total net assets	$	792

Schedule of liabilities assumed by acquisition

Liabilities assumed in conjunction with the acquisition of businesses are as follows:

(in millions)	Years ended December 31,
	2013		2012		2011
Fair value of assets acquired	$	—	$	1,071	$	214
Fair value of consideration transferred for DJI business	—		792		—
Cash paid (net of cash acquired)	—		177		194
Liabilities assumed 1	$	—	$	102	$	20

¹  2013 acquisitions did not result in any liabilities assumed.

Schedule of components of income and assets and liabilities from discontinued operations

The key components of income from discontinued operations consist of the following:

(in millions)	Years ended December 31,
	2013			2012			2011
Revenue	$	268		$	2,062		$	2,382
Expenses	310			2,287			2,035
Operating (loss) income	(42		)	(225		)	347
Interest expense (income), net	2			(2		)	(3		)
(Loss) income before taxes on (loss) income	(44		)	(223		)	350
(Benefit) provision for taxes on (loss) income	(18		)	11			116
(Loss) income from discontinued operations, net of tax	(26		)	(234		)	234
Pre-tax gain on sale from discontinued operations	888			—			122
Provision for taxes on gain on sale	299			—			48
Gain on sale of discontinued operations, net of tax	589			—			74
Discontinued operations, net	563			(234		)	308
Less: net (loss) income attributable to noncontrolling interests	(1		)	5			4
Income (loss) from discontinued operations attributable to McGraw Hill Financial, Inc. common shareholders	$	564		$	(239	)	$	304

The components of assets and liabilities classified as held for sale in the consolidated balance sheet consist of the following:

(in millions)	December 31, 2012
Accounts receivable, net	$	333
Property and equipment, net	122
Goodwill	469
Other intangible assets, net	156
Inventories, net	235
Prepublication costs	304
Other assets	321
Assets held for sale	$	1,940
Accounts payable and accrued expenses	$	123
Unearned revenue	192
Other liabilities	349
Liabilities held for sale	$	664

XML

Debt (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Total debt	$ 799	$ 1,256
Less: short-term debt including current maturities	0	457
Long-term debt	799	799
Annual long term debt maturity year one	0
Annual long term debt maturity year two	0
Annual long term debt maturity year three	0
Annual long term debt maturity year four	400
Annual long term debt maturity after year five	399
Commitment fee minimum percentage	0.20%
Commitment fee maximum percentage	0.45%
5.9% Senior Notes, due 2017 [Member]
Debt Instrument [Line Items]
Senior Notes	400	400
Interest rate	5.90%	5.90%
Unamortized debt discount on senior notes	1
6.55% Senior Notes, due 2037 [Member]
Debt Instrument [Line Items]
Senior Notes	399	399
Interest rate	6.55%	6.55%
Unamortized debt discount on senior notes	1
Three Years Facility [Member]
Debt Instrument [Line Items]
Current commitment fee	0.25%
Commercial Paper [Member]
Debt Instrument [Line Items]
Short-term debt	$ 0	$ 457

XML

Goodwill and Other Intangible Assets (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Goodwill [Roll Forward]
Goodwill, Beginning balance	$ 1,438	$ 1,104
Acquisitions		325
Transfers/reorganizations		3
Dispositions	(36)
Other ( primarily Fx )	10	6
Goodwill, Ending balance	1,412	1,438
S&P Ratings
Goodwill [Roll Forward]
Goodwill, Beginning balance	130	197
Acquisitions		29
Transfers/reorganizations		(95)
Dispositions	0
Other ( primarily Fx )	(5)	(1)
Goodwill, Ending balance	125	130
S&P Capital IQ
Goodwill [Roll Forward]
Goodwill, Beginning balance	457	238
Acquisitions		164
Transfers/reorganizations		53
Dispositions	(3)
Other ( primarily Fx )	15	2
Goodwill, Ending balance	469	457
S&P DJ Indices
Goodwill [Roll Forward]
Goodwill, Beginning balance	380	223
Acquisitions		111
Transfers/reorganizations		45
Dispositions	(4)
Other ( primarily Fx )	0	1
Goodwill, Ending balance	376	380
C&C
Goodwill [Roll Forward]
Goodwill, Beginning balance	471	446
Acquisitions		21
Transfers/reorganizations		0
Dispositions	(29)
Other ( primarily Fx )	0	4
Goodwill, Ending balance	$ 442	$ 471

XML

Commitments and Contingencies (Details Textual)	12 Months Ended				12 Months Ended		0 Months Ended			1 Months Ended		0 Months Ended			1 Months Ended	12 Months Ended
	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2003 USD ($)	Dec. 01, 2013 USD ($)	Dec. 31, 2013 S&P/DJ Indices [Member] USD ($)	Dec. 31, 2012 S&P/DJ Indices [Member] USD ($)	Dec. 03, 2012 Parmalat [Member] USD ($)	Jun. 29, 2012 Parmalat [Member] USD ($)	Jun. 29, 2012 Parmalat [Member] EUR (€)	Jun. 30, 2006 Parmalat [Member] analysts	Dec. 31, 2003 Parmalat [Member] EUR (€)	Sep. 14, 2010 Reed Construction Data, Inc. v. The McGraw-Hill Companies [Member] claims	Jan. 22, 2012 Reed Construction Data, Inc. v. The McGraw-Hill Companies [Member] claims	Oct. 08, 2009 Reed Construction Data, Inc. v. The McGraw-Hill Companies [Member] claims	Feb. 07, 2014 Subsequent Event [Member] Italian Administrative Court [Member] EUR (€)	Dec. 31, 2013 Selling, General and Administrative Expenses [Member] Subprime Litigation Cases [Member] USD ($)	Dec. 31, 2012 S&P Dow Jones LLC [Member]	Dec. 31, 2012 S&P Dow Jones LLC [Member] CME Group and CGIS [Member]
Loss Contingencies [Line Items]
Sale of equity investment in Rock-McGraw, Inc., percentage			45.00%
Percentage of leased building space, company	17.00%
Proceeds from the disposition of equity investment in Rock-McGraw			$ 382,000,000
Pre-tax gain from Sale of equity investment in Rock-McGraw			131,000,000
After-tax gain from Sale of equity investment in Rock-McGraw			58,000,000
Pre-tax gain pursuant to sale-leaseback accounting rules			212,000,000
After-tax gain pursuant to sale-leaseback accounting rules			126,000,000
Deferred gain	45,000,000			60,000,000
Gain amortized during year		15,000,000
Interest expense with operating lease	5,000,000
Revenue from related parties					46,000,000	21,000,000
Percentage of interest in joint venture																	73.00%	27.00%
Damages claimed											4,073,984,120
Rating fees paid								1,100,000	784,000
Reimbursement of trial costs								100,000	47,390
Fees paid to court appointed experts to be reimbursed								100,000	67,797
Payment of judgment							1,103,793									77,000,000
Number of analysts served notice of completion										8
Damages sought															€ 234,000,000,000
Number of claims motioned to be dismissed												5	5	5
Number of claims filed													11	11
Number of claims dismissed												3

XML

Accounting Policies (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2013 units	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Fair value of our long-term debt borrowings	$ 916	$ 801	$ 916
Market value of investments	760	1,542	760	835	1,416
Deferred technology costs, gross	115	131	115
Accumulated amortization of deferred technology costs	58	71	58
Non-cash impairment charge		36
Non-cash impairment charge associated with the an intangible asset acquired	(26)	26	26
Number of operating segments		4
Cost of advertisement		$ 43	$ 34	$ 32
Minimum [Member] | Software and Software Development Costs [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful life		3 years
Minimum [Member] | Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful life		15 years
Minimum [Member] | Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful life		2 years
Maximum [Member] | Software and Software Development Costs [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful life		7 years
Maximum [Member] | Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful life		40 years
Maximum [Member] | Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful life		10 years

XML

Employee Benefits (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Ending balance as of December 31, 2013	$ 2,088	$ 1,851
Amounts recognized in consolidated balance sheets:
Non-current liabilities	(264)	(529)
Retirement Plans [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Net benefit obligation at beginning of year	2,171	1,834
Service cost	10	24	67
Interest cost	91	93	99
Plan participant's contributions	0	1
Actuarial loss (gain)	(178)	287
Gross benefits paid	(77)	(71)
Foreign currency effect	8	11
Curtailment	(26)	0
Other adjustments	5	(8)
Net benefit obligation at end of year	2,004	2,171	1,834
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Beginning balance as of December 31, 2012	1,851	1,505
Actual return on plan assets	281	212
Employer contributions	27	193
Plan participant's contributions	0	1
Gross benefits paid	(77)	(71)
Foreign currency effect	6	11
Ending balance as of December 31, 2013	2,088	1,851	1,505
Funded status	84	(320)
Amounts recognized in consolidated balance sheets:
Non-current assets	261	98
Current liabilities	(7)	(7)
Non-current liabilities	(170)	(411)
Amounts Recognized in Consolidated Balance Sheet, Total	84	(320)
Accumulated benefit obligation	2,004	2,093
Plans with accumulated benefit obligation in excess of the fair value of plan assets:
Projected benefit obligation	176	1,773
Accumulated benefit obligation	158	1,756
Fair value of plan assets	0	1,356
Amounts recognized in accumulated other comprehensive loss, net of tax:
Net actuarial loss	227	455
Prior service credit	1	(4)
Total recognized	228	451
Postretirement Plans [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Net benefit obligation at beginning of year	129	129
Service cost	2	3	3
Interest cost	5	5	6
Plan participant's contributions	4	5
Actuarial loss (gain)	(13)	3
Gross benefits paid	(13)	(17)
Foreign currency effect	0	0
Curtailment	(11)	0
Other adjustments	0	1
Net benefit obligation at end of year	103	129	129
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Beginning balance as of December 31, 2012	0	0
Actual return on plan assets	0	0
Employer contributions	9	12
Plan participant's contributions	4	5
Gross benefits paid	(13)	(17)
Foreign currency effect	0	0
Ending balance as of December 31, 2013	0	0	0
Funded status	(103)	(129)
Amounts recognized in consolidated balance sheets:
Non-current assets	0	0
Current liabilities	(9)	(11)
Non-current liabilities	(94)	(118)
Amounts Recognized in Consolidated Balance Sheet, Total	(103)	(129)
Amounts recognized in accumulated other comprehensive loss, net of tax:
Net actuarial loss	(11)	(3)
Prior service credit	(1)	(1)
Total recognized	$ (12)	$ (4)

XML

Earnings per Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Amount attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$ 173	$ 235	$ 250	$ 153	$ 190	$ 151	$ 176	$ 158	$ 812	$ 676	$ 607
Income (loss) from discontinued operations	(2)	(20)	4	582	(406)	162	39	(35)	564	(239)	304
Net income attributable to the Company	$ 171	$ 215	$ 254	$ 735	$ (216)	$ 314	$ 216	$ 123	$ 1,376	$ 437	$ 911
Basic weighted-average number of common shares outstanding (in shares)									274.5	278.6	298.1
Effect of stock options and other dilutive securities (in shares)									5.3	6.0	5.5
Diluted weighted-average number of common shares outstanding (in shares)									279.8	284.6	303.6
Basic EPS:
Income from continuing operations (in dollars per share)	$ 0.64	$ 0.86	$ 0.91	$ 0.55	$ 0.68	$ 0.54	$ 0.63	$ 0.57	$ 2.96	$ 2.43	$ 2.03
Income (loss) from discontinued operations (in dollars per share)	$ (0.01)	$ (0.07)	$ 0.01	$ 2.07	$ (1.46)	$ 0.58	$ 0.14	$ (0.13)	$ 2.05	$ (0.86)	$ 1.02
Net income (in dollars per share)	$ 0.63	$ 0.79	$ 0.93	$ 2.62	$ (0.78)	$ 1.13	$ 0.77	$ 0.44	$ 5.01	$ 1.57	$ 3.05
Diluted EPS:
Income from continuing operations (in dollars per share)	$ 0.62	$ 0.84	$ 0.90	$ 0.54	$ 0.67	$ 0.53	$ 0.62	$ 0.56	$ 2.90	$ 2.37	$ 2.00
Income (loss) from discontinued operations (in dollars per share)	$ (0.01)	$ (0.07)	$ 0.01	$ 2.05	$ (1.43)	$ 0.57	$ 0.14	$ (0.13)	$ 2.01	$ (0.84)	$ 1.00
Net income (in dollars per share)	$ 0.62	$ 0.77	$ 0.91	$ 2.59	$ (0.76)	$ 1.10	$ 0.76	$ 0.43	$ 4.91	$ 1.53	$ 3.00
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding shares not included in the computation of diluted earnings per share for both restricted stock and stock options (in shares)									0.9	1.4	1.6
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding shares not included in the computation of diluted earnings per share for both restricted stock and stock options (in shares)									1.2	3.4	10.1

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Stock-Based Compensation (Details 1) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Assumptions used in valuing the options granted
Weighted-average grant-date fair value per option (in usd per share)	$ 14.46		$ 10.61
Stock-Based Compensation
Stock option expense	$ 13	$ 10	$ 19
Restricted stock and unit awards expense	86	83	58
Total stock-based compensation expense	99	93	77
Tax benefit	38	36	29
Minimum Range [Member]
Assumptions used in valuing the options granted
Risk-free average interest rate	0.10%		0.20%
Dividend yield	2.09%		2.50%
Volatility	29.00%		21.00%
Expected life	6 years 1 month 6 days		6 years 1 month 6 days
Maximum Range [Member]
Assumptions used in valuing the options granted
Risk-free average interest rate	2.90%		3.50%
Dividend yield	2.07%		3.00%
Volatility	45.00%		51.00%
Expected life	6 years 2 months 12 days		6 years 2 months 12 days
Group of Individuals Transferred to MHE [Member]
Stock-Based Compensation
Total stock-based compensation expense		$ 5	$ 4

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Taxes on Income (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income before taxes domestic and foreign operations
Domestic operations	$ 868	$ 841	$ 700
Foreign operations	478	289	300
Total continuing income before taxes	1,346	1,130	1,000
Federal:
Current	209	194	238
Deferred	51	74	(6)
Total federal	260	268	232
Foreign:
Current	152	91	93
Deferred	(19)	(9)	13
Total foreign	133	82	106
State and local:
Current	40	40	36
Deferred	10	14	0
Total state and local	50	54	36
Total provision for taxes for continuing operations	443	404	374
Provision for discontinued operations	281	11	164
Total provision for taxes	$ 724	$ 415	$ 538
Reconciliation of federal statutory income tax rate
U.S. federal statutory income tax rate	35.00%	35.00%	35.00%
State and local income taxes	2.80%	3.60%	2.40%
Foreign operations	(3.70%)	(2.60%)	(3.00%)
S&P Dow Jones Indices LLC joint venture	(1.90%)	(1.10%)	0.00%
Other, net	0.70%	0.90%	3.00%
Effective income tax rate for continuing operations	32.90%	35.80%	37.40%

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Consolidated Statements of Equity (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Statement of Stockholders' Equity [Abstract]
Comprehensive income attributable to redeemable noncontrolling interests	$ 73	$ 34	$ 0

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Stock-Based Compensation (Details 2) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Beginning balance (in shares)	18.6
Shares, granted (in shares)	1.4
Shares, exercised (in shares)	(7.4)
Shares, cancelled, forfeited and expired (in shares)	(0.4)
Options, Ending balance (in shares)	12.2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted-average exercise price, Beginning balance	$ 39.58
Weighted-average exercise price, granted	$ 0
Weighted-average exercise price, exercised	$ 37.78
Weighted-average exercise price, cancelled, forfeited and expired	$ 50.33
Weighted-average exercise price, Ending balance	$ 41.78
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Shares, options exercisable (in shares)	10.9
Weighted-average exercise price, options exercisable	$ 40.55
Weighted-average remaining years of contractual term, Options outstanding at December 31, 2011	4 years 3 months 18 days
Weighted-average remaining years of contractual term, Options exercisable at December 31, 2011	3 years 8 months 12 days
Aggregate intrinsic value, options outstanding at December 31, 2011	$ 445
Aggregate intrinsic value, options exercisable at December 31, 2011	409
Non Vested Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Beginning balance (in shares)	1.1
Shares, granted (in shares)	1.4
Shares, vested (in shares)	(1.2)
Options, Ending balance (in shares)	1.3
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted-average grant-date fair value, Beginning balance	$ 10.61
Weighted-average exercise price, granted	$ 14.46
Weighted-average grant-date fair value, vested	$ 10.61
Weighted-average grant-date fair value, Ending balance	$ 14.46
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Total unrecognized compensation expense related to nonvested options	$ 9
Weighted-average years to be recognized over	2 years 3 months 18 days

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Goodwill and Other Intangible Assets (Details 1) (USD $) In Millions, unless otherwise specified	1 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Finite-lived Intangible Assets [Roll Forward]
Cost, Beginning balance		$ 706	$ 470
Additions, net		44	236
Dispositions		(22)
Impairment	26	(26)	(26)
Other (primarily Fx)		(8)	0
Cost, Ending balance	706	694	706	470
Accumulated amortization, Beginning balance		259	207
Current year amortization		51	48	33
Dispositions		(15)
Other (primarily Fx)		0	4
Accumulated amortization, Ending balance	259	295	259	207
Net amount	447	399	447
Databases and software
Finite-lived Intangible Assets [Roll Forward]
Cost, Beginning balance		126	109
Additions, net		0	17
Dispositions		(9)
Impairment		0
Other (primarily Fx)		(2)	0
Cost, Ending balance	126	115	126
Accumulated amortization, Beginning balance		80	70
Current year amortization		9	10
Dispositions		(6)
Other (primarily Fx)		0	0
Accumulated amortization, Ending balance	80	83	80
Net amount	46	32	46
Content
Finite-lived Intangible Assets [Roll Forward]
Cost, Beginning balance		139	139
Additions, net		0	0
Dispositions		0
Impairment		0
Other (primarily Fx)		0	0
Cost, Ending balance	139	139	139
Accumulated amortization, Beginning balance		31	17
Current year amortization		14	14
Dispositions		0
Other (primarily Fx)		0	0
Accumulated amortization, Ending balance	31	45	31
Net amount	108	94	108
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Cost, Beginning balance		225	115
Additions, net		0	110
Dispositions		0
Impairment		0
Other (primarily Fx)		0	0
Cost, Ending balance	225	225	225
Accumulated amortization, Beginning balance		55	43
Current year amortization		11	11
Dispositions		0
Other (primarily Fx)		1	1
Accumulated amortization, Ending balance	55	67	55
Net amount	170	158	170
Tradenames
Finite-lived Intangible Assets [Roll Forward]
Cost, Beginning balance		45	45
Additions, net		0	1
Dispositions		0
Impairment		0
Other (primarily Fx)		0	(1)
Cost, Ending balance	45	45	45
Accumulated amortization, Beginning balance		30	27
Current year amortization		2	3
Dispositions		0
Other (primarily Fx)		0	0
Accumulated amortization, Ending balance	30	32	30
Net amount	15	13	15
Other intangibles
Finite-lived Intangible Assets [Roll Forward]
Cost, Beginning balance		171	62
Additions, net		44	108
Dispositions		(13)
Impairment		(26)
Other (primarily Fx)		(6)	1
Cost, Ending balance	171	170	171
Accumulated amortization, Beginning balance		63	50
Current year amortization		15	10
Dispositions		(9)
Other (primarily Fx)		(1)	3
Accumulated amortization, Ending balance	63	68	63
Net amount	$ 108	$ 102	$ 108

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Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and post-retirement plans

A summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and postretirement plans as of December 31, is as follows (benefits paid in the table below include only those amounts contributed directly to or paid directly from plan assets):

(in millions)	Retirement Plans						Postretirement Plans
	2013			2012			2013			2012
Net benefit obligation at beginning of year	$	2,171		$	1,834		$	129		$	129
Service cost	10			24			2			3
Interest cost	91			93			5			5
Plan participants’ contributions	—			1			4			5
Actuarial (gain) loss	(178		)	287			(13		)	3
Gross benefits paid	(77		)	(71		)	(13		)	(17		)
Foreign currency effect	8			11			—			—
Curtailment 1	(26		)	—			(11		)	—
Other adjustments	5			(8		)	—			1
Net benefit obligation at end of year	2,004			2,171			103			129
Fair value of plan assets at beginning of year	1,851			1,505			—			—
Actual return on plan assets	281			212			—			—
Employer contributions	27			193			9			12
Plan participants’ contributions	—			1			4			5
Gross benefits paid	(77		)	(71		)	(13		)	(17		)
Foreign currency effect	6			11			—			—
Fair value of plan assets at end of year	2,088			1,851			—			—
Funded status	$	84		$	(320	)	$	(103	)	$	(129	)
Amounts recognized in consolidated balance sheets:
Non-current assets	$	261		$	98		$	—		$	—
Current liabilities	(7		)	(7		)	(9		)	(11		)
Non-current liabilities	(170		)	(411		)	(94		)	(118		)
	$	84		$	(320	)	$	(103	)	$	(129	)
Accumulated benefit obligation	$	2,004		$	2,093
Plans with accumulated benefit obligation in excess of the fair value of plan assets:
Projected benefit obligation	$	176		$	1,773
Accumulated benefit obligation	$	158		$	1,756
Fair value of plan assets	$	—		$	1,356
Amounts recognized in accumulated other comprehensive loss, net of tax:
Net actuarial loss (gain)	$	227		$	455		$	(11	)	$	(3	)
Prior service credit	1			(4		)	(1		)	(1		)
Total recognized	$	228		$	451		$	(12	)	$	(4	)

¹  The curtailment gain for our retirement plans relates to a freeze of pension accruals for MHE employees as well as all remaining active employees in the United Kingdom ("U.K."). The curtailment gain for our postretirement plans relates to the sale of MHE on March 22, 2013.

Components of net periodic cost for defined benefit plans and post-retirement healthcare and other benefits plan

A summary of net periodic benefit cost for our retirement and postretirement plans for the years ended December 31, is as follows:

(in millions)	Retirement Plans									Postretirement Plans
	2013			2012			2011			2013			2012			2011
Service cost	$	10		$	24		$	67		$	2		$	3		$	3
Interest cost	91			93			99			5			5			6
Expected return on assets	(129		)	(124		)	(127		)	—			—			—
Amortization of:
Actuarial loss	26			32			31			—			—			—
Prior service credit	5			(1		)	—			(1		)	(1		)	(1		)
Curtailment 1	(8		)	—			—			(12		)	—			—
Net periodic benefit cost	$	(5	)	$	24		$	70		$	(6	)	$	7		$	8

¹  The curtailment gain for our retirement plans relates to a freeze of pension accruals for MHE employees as well as all remaining active employees in the United Kingdom ("U.K."). The curtailment gain for our postretirement plans relates to the sale of MHE on March 22, 2013.

Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax

Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax for the years ended December 31, are as follows:

(in millions)	Retirement Plans									Postretirement Plans
	2013			2012			2011			2013			2012		2011
Net actuarial (gain) loss	$	(213	)	$	116		$	65		$	(8	)	$	2	$	(12	)
Recognized actuarial gain	(15		)	(20		)	(18		)	—			—		—
Prior service credit	5			2			—			—			1		1
Total recognized	$	(223	)	$	98		$	47		$	(8	)	$	3	$	(11	)

Assumptions

Assumptions

	Retirement Plans						Postretirement Plans
	2013		2012		2011		2013		2012		2011
Benefit obligation: 1
Discount rate	5.0	%	4.1	%	5.1	%	4.20	%	3.45	%	4.45	%
Compensation increase factor	N/A		N/A		4.5	%
Net periodic cost:
Weighted-average healthcare cost rate 2							7.0	%	7.5	%	8.0	%
Discount rate - U.S. plan 3	4.1	%	5.1	%	5.4	%	3.45	%	4.45	%	4.65	%
Discount rate - U.K. plan 3	4.8	%	5.1	%	5.5	%
Compensation increase factor - U.S. plan	N/A		4.5	%	4.5	%
Compensation increase factor - U.K. plan	5.75	%	5.85	%	6.25	%
Return on assets 4	7.25	%	7.75	%	8.0	%

¹  These assumptions for the retirement plans relate to our U.S. ERP and a compensation increase factor is no longer applicable because there are no further salary increases as the U.S. ERP was frozen in April 2012.

²  The assumed weighted-average healthcare cost trend rate will decrease ratably from 7% in 2013 to 5% in 2020 and remain at that level thereafter. Assumed healthcare cost trends have an effect on the amounts reported for the healthcare plans. A one percentage point change in assumed healthcare cost trend creates the following effects:

(in millions)	1% point increase		1% point decrease
Effect on postretirement obligation	$	4	$	(4	)

³  Effective January 1, 2014, we changed our discount rate assumption on our U.S. retirement plans to 5.0% from 4.1% in 2013 and changed our discount rate assumption on our U.K. plan to 4.5% from 4.8% in 2013.

⁴  The expected return on assets assumption is calculated based on the plan’s asset allocation strategy and projected market returns over the long-term. Effective January 1, 2014, we changed our return on assets assumption to 7.125% from 7.25% for the U.S. plan in 2013 and to 6.75% from 7.25% for the U.K. plan in 2013.

Effects created by one percentage point change in assumed healthcare cost trend

A one percentage point change in assumed healthcare cost trend creates the following effects:

(in millions)	1% point increase		1% point decrease
Effect on postretirement obligation	$	4	$	(4	)

Information about the expected cash flows for retirement and post-retirement plans and impact of the Medicare subsidy

Information about the expected cash flows for our retirement and postretirement plans and the impact of the Medicare subsidy is as follows:

(in millions)			Postretirement Plans 2
	Retirement 1 Plans		Gross payments		Retiree contributions			Medicare subsidy			Net payments
2014	$	76	$	14	$	(5	)	$	(1	)	$	8
2015	79		14		(5		)	(1		)	8
2016	84		15		(6		)	(1		)	8
2017	88		15		(6		)	(1		)	8
2018	92		15		(7		)	(1		)	7
2019-2023	512		79		(44		)	(3		)	32

¹  Reflects the total benefits expected to be paid from the plans or from our assets including both our share of the benefit cost and the participants’ share of the cost.

²  Reflects the total benefits expected to be paid from our assets.

Fair value of defined benefit plans assets by asset class

The fair value of our defined benefit plans assets as of December 31, 2013 and 2012, by asset class is as follows:

(in millions)	December 31, 2013
	Total		Level 1		Level 2		Level 3
Cash and short-term investments, and other	$	68	$	20	$	48	$	—
Equity securities:
U.S. indexes 1	514		145		369		—
U.S. growth and value	373		325		48		—
U.K.	183		101		82		—
International, excluding U.K.	227		131		96		—
Fixed income securities:
Long duration strategy 2	517		—		517		—
Intermediate duration securities	11		—		11		—
Agency mortgage backed securities	7		—		7		—
Asset backed securities	16		—		16		—
Non-agency mortgage backed securities 3	45		—		45		—
U.K. 4	66		—		66		—
International, excluding U.K.	61		—		61		—
Total	$	2,088	$	722	$	1,366	$	—

(in millions)	December 31, 2012
	Total		Level 1		Level 2		Level 3
Cash and short-term investments, and other	$	180	$	2	$	178	$	—
Equity securities:
U.S. indexes 1	399		119		280		—
U.S. growth and value	344		307		37		—
U.K.	154		85		69		—
International, excluding U.K.	225		137		87		1
Fixed income securities:
Long duration strategy 2	370		—		370		—
Intermediate duration securities	3		—		3		—
Agency mortgage backed securities	13		—		13		—
Asset backed securities	10		—		10		—
Non-agency mortgage backed securities 3	52		—		52		—
U.K. 4	41		—		41		—
International, excluding U.K.	43		—		43		—
Real estate:
U.K. 5	17		—		—		17
Total	$	1,851	$	650	$	1,183	$	18

¹  Includes securities that are tracked in the following indexes: S&P 500, S&P MidCap 400, S&P MidCap 400 Growth and S&P Smallcap 600.

²  Includes securities that are investment grade obligations of issuers in the U.S.

³  Includes U.S. mortgage-backed securities that are not backed by the U.S. government.

⁴  Includes securities originated by the government of and other issuers from the U.K.

⁵  Includes a fund which holds real estate properties in the U.K.

Information of plan assets using significant unobservable inputs

The following tables details further information our plan assets where we have used significant unobservable inputs (Level 3):

(in millions)
Beginning balance as of December 31, 2012	$	18
Capital distributions	(18		)
Ending balance as of December 31, 2013	$	—

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Debt (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Short-term and long-term debt outstanding

A summary of short-term and long-term debt outstanding is as follows:

(in millions)	December 31,
	2013		2012
5.9% Senior Notes, due 2017 1	$	400	$	400
6.55% Senior Notes, due 2037 2	399		399
Commercial paper	—		457
Total debt	799		1,256
Less: short-term debt including current maturities	—		457
Long-term debt	$	799	$	799

¹  Interest payments are due semiannually on April 15 and October 15, and as of December 31, 2013, the unamortized debt discount is less than $1 million.

²  Interest payments are due semiannually on May 15 and November 15, and as of December 31, 2013, the unamortized debt discount is approximately $1 million.

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Employee Benefits (Details 4) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013
Retirement Plans [Member]
Information about the expected cash flows for retirement and post-retirement plans and impact of the Medicare subsidy
2014, Net payments	$ 76
2015, Net payments	79
2016, Net payments	84
2017, Net payments	88
2018, Net payments	92
2019-2023, Net payments	512
Postretirement Plans [Member]
Information about the expected cash flows for retirement and post-retirement plans and impact of the Medicare subsidy
2014, Gross payments	14
2015, Gross payments	14
2016, Gross payments	15
2017, Gross payments	15
2018, Gross payments	15
2019-2023, Gross payments	79
2014, Retiree Contributions	(5)
2015, Retiree Contributions	(5)
2016, Retiree Contributions	(6)
2017, Retiree Contributions	(6)
2018, Retiree Contributions	(7)
2019-2023, Retiree Contributions	(44)
2014, Medicare subsidy	(1)
2015, Medicare subsidy	(1)
2016, Medicare subsidy	(1)
2017, Medicare subsidy	(1)
2018, Medicare subsidy	(1)
2019-2023, Medicare subsidy	(3)
2014, Net payments	8
2015, Net payments	8
2016, Net payments	8
2017, Net payments	8
2018, Net payments	7
2019-2023, Net payments	$ 32

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Goodwill and Other Intangible Assets (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Amortization expense and projected amortization expense for intangible assets
Amortization of intangibles	$ 51	$ 48	$ 33
Expected amortization expense, 2014	47
Expected amortization expense, 2015	45
Expected amortization expense, 2016	45
Expected amortization expense, 2017	42
Expected amortization expense, 2018	$ 36

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Number of common shares reserved for issuance

The number of common shares reserved for issuance are as follows:

(in millions)	December 31,
	2013	2012
Shares available for granting under the 2002 Plan	30.3	26.8
Options outstanding	12.2	18.6
Total shares reserved for issuance 1	42.5	45.4

¹ Shares reserved for issuance under the Director Deferred Stock Ownership Plan are not included in the total, but are less than 0.2 million.

Stock-based compensation expense

Stock-based compensation expense and the corresponding tax benefit are as follows:

(in millions)	Year Ended December 31,
	2013		2012		2011
Stock option expense	$	13	$	10	$	19
Restricted stock and unit awards expense	86		83		58
Total stock-based compensation expense	$	99	$	93	$	77
Tax benefit	$	38	$	36	$	29

Assumptions used in valuing the options granted

The following assumptions were used in valuing the options granted (in 2012, stock options were not granted as part of employees' total stock-based incentive awards):

	Year Ended December 31,
	2013		2012	2011
Risk-free average interest rate	0.1 - 2.9%		N/A	0.2 - 3.5%
Dividend yield	2.09 - 2.07%		N/A	2.5 - 3.0%
Volatility	29 - 45%		N/A	21 - 51%
Expected life (years)	6.1 - 6.2		N/A	6.1 - 6.2
Weighted-average grant-date fair value per option	$	14.46	N/A	$	10.61

Stock option activity

Stock option activity is as follows:

(in millions, except per award amounts)	Shares			Weighted average exercise price		Weighted-average remaining years of contractual term	Aggregate intrinsic value
Options outstanding as of December 31, 2012	18.6			$	39.58
Granted	1.4		1	$	51.69
Exercised	(7.4	)		$	37.78
Canceled, forfeited and expired	(0.4	)		$	50.33
Options outstanding as of December 31, 2013	12.2			$	41.78	4.3	$	445
Options exercisable as of December 31, 2013	10.9			$	40.55	3.7	$	409

(in millions, except per award amounts)	Shares			Weighted-average grant-date fair value
Nonvested options outstanding as of December 31, 2012	1.1			$	10.61
Granted	1.4			$	14.46
Vested	(1.2		)	$	10.61
Nonvested options outstanding as of December 31, 2013	1.3			$	14.46
Total unrecognized compensation expense related to nonvested options	$	9
Weighted-average years to be recognized over	2.3

Stock option exercised

Information regarding our stock option exercises is as follows:

(in millions)	Year Ended December 31,
	2013		2012		2011
Net cash proceeds from the exercise of stock options	$	258	$	299	$	139
Total intrinsic value of stock option exercises	$	158	$	120	$	41
Income tax benefit realized from stock option exercises	$	61	$	47	$	16

Restricted stock and unit activity

Restricted stock and unit activity for performance and non-performance awards is as follows:

(in millions, except per award amounts)	Shares			Weighted-average grant-date fair value
Nonvested shares as of December 31, 2012	3.4			$	40.49
Granted	3.0			$	44.22
Vested	(3.1		)	$	38.93
Forfeited	(0.2		)	$	46.28
Nonvested shares as of December 31, 2013	3.1			$	47.89
Total unrecognized compensation expense related to nonvested awards	$	84
Weighted-average years to be recognized over	1.6

	Year Ended December 31,
	2013		2012		2011
Weighted-average grant-date fair value per award	$	44.22	$	44.38	$	37.80
Total fair value of restricted stock and unit awards vested	$	119	$	90	$	1
Tax benefit relating to restricted stock activity	$	33	$	32	$	22

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Equity (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Dividend history

On January 29, 2014, the Board of Directors approved an increase in the dividends for 2014 to a quarterly rate of $0.30 per common share.

	Year Ended December 31,
	2013		2012		2011
Quarterly dividend rate	$	0.28	$	0.255	$	0.25
Annualized dividend rate	$	1.12	$	1.02	$	1.00
Special dividend	$	—	$	2.50	$	—
Dividends paid (in millions)	$	308	$	984	$	296

Share repurchases

Share repurchases were as follows:

(in millions, except average price)	Year Ended December 31,
	2013		2012		2011
Total number of shares purchased - 2011 Repurchase Program1, 2	16.9		6.8		26.3
Total number of shares purchased - 2007 Repurchase Program	—		—		8.4
Average price paid per share 2, 3	$	58.52	$	50.35	$	40.48
Total cash utilized	$	989	$	295	$	1,500

¹  2013 and 2012 includes shares received as part of our accelerated share repurchase agreements as described in more detail below.

²  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. As such, in fourth quarter of 2013, 0.1 million shares were repurchased for approximately $10 million, which settled in January 2014. Excluding these 0.1 million shares, the average price paid per share was $58.36.

³  Average price paid per share information for 2013 includes the accelerated share repurchase transaction, while 2012 and 2011 does not include the accelerated share repurchase transactions entered in December 2011 as discussed in more detail below.

Redeemable noncontrolling interest rollforward

Changes to redeemable noncontrolling interest during the year ended December 31, 2013 were as follows:

(in millions)
Balance as of December 31, 2012	$	810
Net income attributable to noncontrolling interest	73
Distributions to noncontrolling interest	(62		)
Redemption value adjustment	(11		)
Balance as of December 31, 2013	$	810

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Consolidated Statements of Equity (USD $) In Millions, unless otherwise specified		Total	Common Stock $1 par	Additional Paid-in Capital	Retained Income	Accumulated Other Comprehensive Loss	Less: Treasury Stock	Total MHFI Equity	Noncontrolling Interests
Beginning Balance at Dec. 31, 2010		$ 2,292	$ 412	$ 67	$ 7,057	$ (367)	$ 4,958	$ 2,211	$ 81
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income		866			911	(58)		853	13
Dividends		(313)			(301)			(301)	(12)
Noncontrolling interest adjustments related to discontinued operations		(7)		(3)				(3)	(4)
Share repurchases		(1,500)		(73)			1,427	(1,500)
Employee stock plans, net of tax benefit		248		103			(145)	248
Other		(2)						0	(2)
Ending Balance at Dec. 31, 2011		1,584	412	94	7,667	(425)	6,240	1,508	76
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income		399
Comprehensive income	[1]	365			437	(92)		345	20
Dividends		(1,011)			(989)			(989)	(22)
Noncontrolling interest adjustments related to discontinued operations		(223)		350	(573)			(223)
Share repurchases		(298)		50			345	(295)	(3)
Employee stock plans, net of tax benefit		438		(2)			(440)	438
Change in redemption value of redeemable noncontrolling interest		(17)			(17)			(17)
Other		2						0	2
Ending Balance at Dec. 31, 2012		840	412	492	6,525	(517)	6,145	767	73
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income		1,788
Comprehensive income	[1]	1,715			1,376	321		1,697	18
Dividends		(325)			(315)			(315)	(10)
Noncontrolling interest adjustments related to discontinued operations		(22)						0	(22)
Share repurchases		(989)					989	(989)
Employee stock plans, net of tax benefit		343		(45)			(388)	343
Change in redemption value of redeemable noncontrolling interest		11			11			11
Increase in CRISIL ownership		(233)			(216)			(216)	(17)
Other		4			3			3	1
Ending Balance at Dec. 31, 2013		$ 1,344	$ 412	$ 447	$ 7,384	$ (196)	$ 6,746	$ 1,301	$ 43

[1] Excludes $73 million and $34 million in 2013 and 2012, respectively, attributable to redeemable noncontrolling interest.

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Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Reconciliation of the number of shares used for calculating basic and diluted earnings per common share

The calculation for basic and diluted EPS is as follows:

(in millions, except per share data)	Year Ended December 31,
	2013		2012			2011
Amount attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$	812	$	676		$	607
Income (loss) from discontinued operations	564		(239		)	304
Net income attributable to the Company	$	1,376	$	437		$	911
Basic weighted-average number of common shares outstanding	274.5		278.6			298.1
Effect of stock options and other dilutive securities	5.3		6.0			5.5
Diluted weighted-average number of common shares outstanding	279.8		284.6			303.6
Basic EPS:
Income from continuing operations	$	2.96	$	2.43		$	2.03
Income (loss) from discontinued operations	2.05		(0.86		)	1.02
Net income	$	5.01	$	1.57		$	3.05
Diluted EPS:
Income from continuing operations	$	2.90	$	2.37		$	2.00
Income (loss) from discontinued operations	2.01		(0.84		)	1.00
Net income	$	4.91	$	1.53		$	3.00

Number of stock options excluded from the computation of EPS

For the years ended December 31, 2013, 2012 and 2011, the number of stock options excluded from the computation are as follows:

(in millions)	Year Ended December 31,
	2013	2012	2011
Stock options excluded from diluted EPS computation	1.2	3.4	10.1

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Acquisitions and Divestitures (Divestitures) (Details Textual) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended	12 Months Ended			0 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Mar. 22, 2013 McGraw Hill Education [Member]	Dec. 31, 2013 McGraw Hill Education [Member]	Dec. 31, 2012 McGraw Hill Education [Member] Positions	Dec. 31, 2011 Broadcasting Group [Member]	Dec. 31, 2011 C&C [Member] LinkedIn Corporation [Member]	Aug. 27, 2013 India Index Services & Products Ltd [Member] CRISIL Limited [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pre-tax gain on dispositions		$ 24								$ 13
Percent of equity interest sold											49.00%
Cash proceeds from sale of business						2,400			216
Pre-tax gain on sale from discontinued operations			888	0	122				123
After-tax gain on sale of business			589	0	74		589
Impairment charges, goodwill and intangible assets								497
Restructuring costs								39
Workforce reduction, positions								530
Direct transaction costs for legal and professional fees								17
Lease commitment charges								3
Vacation accrual reversal								17
Impairment charges, goodwill								478
Impairment charges, excluding goodwill	$ (26)		$ 26	$ 26				$ 19

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Employee Benefits (Details 1) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax
Total recognized	$ (231)	$ 101	$ 36
Retirement Plans [Member]
Components of net periodic cost for retirement plans and post-retirement plans
Service cost	10	24	67
Interest cost	91	93	99
Expected return on assets	(129)	(124)	(127)
Amortization of actuarial (gain) loss	26	32	31
Prior service credit	5	(1)	0
Curtailment	(8)	0	0
Net periodic benefit cost	(5)	24	70
Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax
Net actuarial loss (gain)	(213)	116	65
Recognized actuarial gain	(15)	(20)	(18)
Amortization of prior service credit	5	2	0
Total recognized	(223)	98	47
Postretirement Plans [Member]
Components of net periodic cost for retirement plans and post-retirement plans
Service cost	2	3	3
Interest cost	5	5	6
Expected return on assets	0	0	0
Amortization of actuarial (gain) loss	0	0	0
Prior service credit	(1)	(1)	(1)
Curtailment	(12)	0	0
Net periodic benefit cost	(6)	7	8
Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax
Net actuarial loss (gain)	(8)	2	(12)
Recognized actuarial gain	0	0	0
Amortization of prior service credit	0	1	1
Total recognized	$ (8)	$ 3	$ (11)

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Segment and Geographic Information (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,250	$ 1,194	$ 1,250	$ 1,181	$ 1,226	$ 1,116	$ 1,072	$ 1,035	$ 4,875	$ 4,450	$ 3,954
Long-lived Assets	2,754				2,944				2,754	2,944
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									2,892	2,684	2,373
Long-lived Assets	2,209				2,376				2,209	2,376
European region [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									1,227	1,067	951
Long-lived Assets	432				441				432	441
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									483	454	423
Long-lived Assets	59				70				59	70
Rest of the world [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									273	245	207
Long-lived Assets	$ 54				$ 57				$ 54	$ 57
Geographic Concentration Risk [Member] | Revenue [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk									100.00%	100.00%	100.00%
Geographic Concentration Risk [Member] | Revenue [Member] | United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk									59.00%	60.00%	60.00%
Geographic Concentration Risk [Member] | Revenue [Member] | European region [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk									25.00%	24.00%	24.00%
Geographic Concentration Risk [Member] | Revenue [Member] | Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk									10.00%	10.00%	11.00%
Geographic Concentration Risk [Member] | Revenue [Member] | Rest of the world [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk									6.00%	6.00%	5.00%
Geographic Concentration Risk [Member] | Long-lived Assets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk									100.00%	100.00%
Geographic Concentration Risk [Member] | Long-lived Assets [Member] | United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk									80.00%	81.00%
Geographic Concentration Risk [Member] | Long-lived Assets [Member] | European region [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk									16.00%	15.00%
Geographic Concentration Risk [Member] | Long-lived Assets [Member] | Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk									2.00%	2.00%
Geographic Concentration Risk [Member] | Long-lived Assets [Member] | Rest of the world [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk									2.00%	2.00%

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Consolidated Statements of Income (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Statement [Abstract]
Revenue	$ 4,875	$ 4,450	$ 3,954
Expenses:
Operating-related expenses	1,584	1,486	1,387
Selling and general expenses	1,737	1,664	1,377
Depreciation	86	93	93
Amortization of intangibles	51	48	33
Total expenses	3,458	3,291	2,890
Other loss (income)	12	(52)	(13)
Operating profit	1,405	1,211	1,077
Interest expense, net	59	81	77
Income from continuing operations before taxes on income	1,346	1,130	1,000
Provision for taxes on income	443	404	374
Income from continuing operations	903	726	626
Discontinued operations, net of tax:
(Loss) income from discontinued operations	(26)	(234)	234
Gain on sale of discontinued operations (includes $(75) accumulated other comprehensive income reclassifications in 2013 for foreign currency translation adjustment)	589	0	74
Discontinued operations, net	563	(234)	308
Net income	1,466	492	934
Less: net income from continuing operations attributable to noncontrolling interests	(91)	(50)	(19)
Less: net income from discontinued operations attributable to noncontrolling interests	1	(5)	(4)
Net income attributable to McGraw Hill Financial, Inc.	1,376	437	911
Amounts attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	812	676	607
Income (loss) from discontinued operations	564	(239)	304
Net income attributable to McGraw Hill Financial, Inc.	$ 1,376	$ 437	$ 911
Basic:
Income from continuing operations (in dollars per share)	$ 2.96	$ 2.43	$ 2.03
Income (loss) from discontinued operations (in dollars per share)	$ 2.05	$ (0.86)	$ 1.02
Net income (in dollars per share)	$ 5.01	$ 1.57	$ 3.05
Diluted:
Income from continuing operations (in dollars per share)	$ 2.90	$ 2.37	$ 2.00
Income (loss) from discontinued operations (in dollars per share)	$ 2.01	$ (0.84)	$ 1.00
Net income (in dollars per share)	$ 4.91	$ 1.53	$ 3.00
Average number of common shares outstanding:
Basic (in shares)	274.5	278.6	298.1
Diluted (in shares)	279.8	284.6	303.6
Dividend declared per common share (in usd per share)	$ 1.12	$ 1.02	$ 1.00
Special dividend declared per common share (in usd per share)	$ 0	$ 2.50	$ 0

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Goodwill and Other Intangible Assets (Details Textual) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Indefinite-lived Intangible Assets by Major Class [Line Items]
Carrying value of trade name and licenses	$ 634	$ 634
Weighted-average life of the intangible assets	9 years
Maximum [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Weighted-average life of the intangible assets	40 years
Dow Jones Index [Member] | Intellectual Property [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Carrying value of trade name and licenses	380
Dow Jones Index [Member] | Trade Names [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Carrying value of trade name and licenses	90
C&C [Member] | Trade Names [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Carrying value of trade name and licenses	$ 164

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Allowance for doubtful accounts and sale returns	$ 52	$ 54
Stock-holders equity attributable to noncontrolling interest, discontinued operations	$ 25	$ 25
Common stock, par value (in usd per share)	$ 1	$ 1
Common stock, authorized (in shares)	600,000,000	600,000,000
Common stock, issued (in shares)	412,000,000	412,000,000
Common Stock, In Treasury (in shares)	141,000,000	133,000,000

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Employee Benefits (Details Textual) (USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended	12 Months Ended
	Feb. 07, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Compensation and Retirement Disclosure [Abstract]
Total cost for retirement plans		$ 96	$ 129	$ 175
Defined contribution plan cost		75	86	88
Assumed weighted-average healthcare cost trend rate		7.00%
Ultimate healthcare cost trend rate		5.00%
Shares purchased by US plan under defined contribution plan		261,672	620,455
Shares sold by US plan under defined contribution plan		1,182,318	869,199
Shares held by the US plan under defined contribution plan		2,200,000	3,700,000
Shares held by the US plan under defined contribution plan, market value		172	200
Dividend received by the plan		3	13
Defined Benefit Plan Disclosure [Line Items]
Number of pension trust accounts		2
Plan assets by asset category, Total		2,088	1,851
Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Actuarial loss that will be amortized in next year from accumulated Other comprehensive Income		7
Net periodic benefit cost		(5)	24	70
Curtailment		8	0	0
Change in discount rate on retirement plans		4.10%	5.10%	5.40%
Return on assets	7.125%	7.25%	7.75%	8.00%
Expected required employer contribution		23
Plan assets by asset category, Total		2,088	1,851	1,505
United States Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Change in discount rate on retirement plans		4.10%
United Kingdom Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost		(10)	3	3
Change in discount rate on retirement plans		4.80%
Postretirement Plans [Member]
Compensation and Retirement Disclosure [Abstract]
Ultimate healthcare cost trend rate		7.00%	7.50%	8.00%
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost		(6)	7	8
Curtailment		12	0	0
Change in discount rate on retirement plans		3.45%	4.45%	4.65%
Expected required employer contribution		10
Plan assets by asset category, Total		0	0	0
U.S. Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets by asset category, Total		1,700	1,500
U.K. Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets by asset category, Total		$ 399	$ 318
Subsequent Event [Member] | United States Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Change in discount rate on retirement plans	5.00%
Subsequent Event [Member] | United Kingdom Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Change in discount rate on retirement plans	4.50%
Equity Securities, Domestic [Member] | U.S. Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations		48.00%
Equity Securities, International [Member] | U.S. Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations		12.00%
Debt Securities and Short-Term Investments [Member] | U.S. Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations		40.00%
Equity Securities [Member] | U.K. Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations		30.00%
Diversified Growth Funds [Member] | U.K. Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations		40.00%
Fixed Income Funds [Member] | U.K. Pension Trust [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations		30.00%
UNITED STATES
Defined Benefit Plan Disclosure [Line Items]
Number of pension trust accounts		1
UNITED KINGDOM
Defined Benefit Plan Disclosure [Line Items]
Number of pension trust accounts		1

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Rental expense for property and equipment under operating lease agreements

Rental expense for property and equipment under all operating lease agreements is as follows:

(in millions)	Years ended December 31,
	2013			2012			2011
Gross rental expense	$	207		$	164		$	158
Less: sublease revenue	(29		)	(4		)	(2		)
Less: Rock-McGraw rent credit	(20		)	(19		)	(18		)
Net rental expense	$	158		$	141		$	138

Future minimum rental commitments

Cash amounts for future minimum rental commitments, including rent payments on the sale-leaseback, under existing non-cancelable leases with a remaining term of more than one year, along with minimum sublease rental income to be received under non-cancelable subleases are shown in the following table.

(in millions)	Rent commitment		Sublease income			Net rent
2014	$	161	$	(14	)	$	147
2015	155		(14		)	141
2016	123		(13		)	110
2017	99		(13		)	86
2018	90		(13		)	77
2019 and beyond	238		(16		)	222
Total	$	866	$	(83	)	$	783

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Stock-Based Compensation (Details Textual) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Director deferred stock ownership plan amount to be credited to deferred stock accounts	50.00%
Share delivery term if elected	5 years
Total stock-based compensation expense	$ 99	$ 93	$ 77
Award vesting period	3 years
Percentage of compensation costs recognized			50.00%
Total fair value of stock options, vested	12	21	18
Excess tax benefits from stock options exercised reported in cash flows	43	42	20
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years		2 years
Award expiration period	10 years		10 years
Employee Stock Option [Member] | Graded Vesting Method [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years		2 years
Employee Stock Option [Member] | Ratable Vest One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of compensation costs recognized	33.33%
Award cost recognition period	12 months		12 months
Employee Stock Option [Member] | Ratable Vest Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of compensation costs recognized	33.33%
Award cost recognition period	24 months		24 months
Employee Stock Option [Member] | Ratable Vest Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award cost recognition period	36 months
McGraw Hill Education [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation from discontinued operations	7	16	19
Group of Individuals Transferred to MHE [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		$ 5	$ 4

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Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information (Unaudited)

Quarterly Financial Information (Unaudited)

(in millions, except per share data)	First quarter			Second quarter		Third quarter			Fourth quarter			Total year
2013
Revenue	$	1,181		$	1,250	$	1,194		$	1,250		$	4,875
Operating profit	$	278		$	436	$	407		$	284		$	1,405
Income from continuing operations	$	174		$	273	$	265		$	190		$	903
Income (loss) from discontinued operations	$	581		$	4	$	(20	)	$	(2	)	$	563
Net income	$	755		$	277	$	245		$	188		$	1,466
Net income attributable to McGraw Hill Financial common shareholders:
Income from continuing operations	$	153		$	250	$	235		$	173		$	812
Income (loss) from discontinued operations	582			4		(20		)	(2		)	564
Net income	$	735		$	254	$	215		$	171		$	1,376
Basic earnings (loss) per share:
Continuing operations	$	0.55		$	0.91	$	0.86		$	0.64		$	2.96
Discontinued operations	2.07			0.01		(0.07		)	(0.01		)	2.05
Net income	$	2.62		$	0.93	$	0.79		$	0.63		$	5.01
Diluted earnings (loss) per share:
Continuing operations	$	0.54		$	0.90	$	0.84		$	0.62		$	2.90
Discontinued operations	2.05			0.01		(0.07		)	(0.01		)	2.01
Net income	$	2.59		$	0.91	$	0.77		$	0.62		$	4.91
2012
Revenue	$	1,035		$	1,072	$	1,116		$	1,226		$	4,450
Operating profit	$	282		$	308	$	275		$	347		$	1,211
Income from continuing operations	$	163		$	180	$	172		$	211		$	726
(Loss) income from discontinued operations	$	(36	)	$	40	$	165		$	(404	)	$	(234	)
Net income (loss)	$	127		$	220	$	337		$	(193	)	$	492
Net income attributable to McGraw Hill Financial common shareholders:
Income from continuing operations	$	158		$	176	$	151		$	190		$	676
(Loss) income from discontinued operations	(35		)	39		162			(406		)	(239		)
Net income (loss)	$	123		$	216	$	314		$	(216	)	$	437
Basic earnings (loss) per share:
Continuing operations	$	0.57		$	0.63	$	0.54		$	0.68		$	2.43
Discontinued operations	(0.13		)	0.14		0.58			(1.46		)	(0.86		)
Net income (loss)	$	0.44		$	0.77	$	1.13		$	(0.78	)	$	1.57
Diluted earnings (loss) per share:
Continuing operations	$	0.56		$	0.62	$	0.53		$	0.67		$	2.37
Discontinued operations	(0.13		)	0.14		0.57			(1.43		)	(0.84		)
Net income (loss)	$	0.43		$	0.76	$	1.10		$	(0.76	)	$	1.53

Note - Totals presented may not sum due to rounding.

Basic and diluted earnings per share are computed independently for each quarter and full year presented. The number of weighted-average shares outstanding changes as common shares are issued pursuant to employee stock plans, as shares are repurchased by us, and other activity occurs throughout the year. Accordingly, the sum of the quarterly earnings per share data may not agree with the calculated full year earnings per share.

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Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information (Unaudited)

Quarterly Financial Information (Unaudited)

(in millions, except per share data)	First quarter			Second quarter		Third quarter			Fourth quarter			Total year
2013
Revenue	$	1,181		$	1,250	$	1,194		$	1,250		$	4,875
Operating profit	$	278		$	436	$	407		$	284		$	1,405
Income from continuing operations	$	174		$	273	$	265		$	190		$	903
Income (loss) from discontinued operations	$	581		$	4	$	(20	)	$	(2	)	$	563
Net income	$	755		$	277	$	245		$	188		$	1,466
Net income attributable to McGraw Hill Financial common shareholders:
Income from continuing operations	$	153		$	250	$	235		$	173		$	812
Income (loss) from discontinued operations	582			4		(20		)	(2		)	564
Net income	$	735		$	254	$	215		$	171		$	1,376
Basic earnings (loss) per share:
Continuing operations	$	0.55		$	0.91	$	0.86		$	0.64		$	2.96
Discontinued operations	2.07			0.01		(0.07		)	(0.01		)	2.05
Net income	$	2.62		$	0.93	$	0.79		$	0.63		$	5.01
Diluted earnings (loss) per share:
Continuing operations	$	0.54		$	0.90	$	0.84		$	0.62		$	2.90
Discontinued operations	2.05			0.01		(0.07		)	(0.01		)	2.01
Net income	$	2.59		$	0.91	$	0.77		$	0.62		$	4.91
2012
Revenue	$	1,035		$	1,072	$	1,116		$	1,226		$	4,450
Operating profit	$	282		$	308	$	275		$	347		$	1,211
Income from continuing operations	$	163		$	180	$	172		$	211		$	726
(Loss) income from discontinued operations	$	(36	)	$	40	$	165		$	(404	)	$	(234	)
Net income (loss)	$	127		$	220	$	337		$	(193	)	$	492
Net income attributable to McGraw Hill Financial common shareholders:
Income from continuing operations	$	158		$	176	$	151		$	190		$	676
(Loss) income from discontinued operations	(35		)	39		162			(406		)	(239		)
Net income (loss)	$	123		$	216	$	314		$	(216	)	$	437
Basic earnings (loss) per share:
Continuing operations	$	0.57		$	0.63	$	0.54		$	0.68		$	2.43
Discontinued operations	(0.13		)	0.14		0.58			(1.46		)	(0.86		)
Net income (loss)	$	0.44		$	0.77	$	1.13		$	(0.78	)	$	1.57
Diluted earnings (loss) per share:
Continuing operations	$	0.56		$	0.62	$	0.53		$	0.67		$	2.37
Discontinued operations	(0.13		)	0.14		0.57			(1.43		)	(0.84		)
Net income (loss)	$	0.43		$	0.76	$	1.10		$	(0.76	)	$	1.53

Note - Totals presented may not sum due to rounding.

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Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Nature of operations

Nature of operations

McGraw Hill Financial, Inc. (together with its consolidated subsidiaries, the “Company,” the “Registrant,” “we,” “us” or “our”) is a leading content and analytics provider serving the capital, commodities and commercial markets. The capital markets include asset managers, banks, exchanges, issuers and financial advisors; the commodities markets include producers, traders and intermediaries within energy, metals, and agriculture; and the commercial markets include professionals and corporate executives within automotive, construction and marketing / research information services.

Our operations consist of four reportable segments: Standard & Poor’s Ratings (“S&P Ratings”), S&P Capital IQ, S&P Dow Jones Indices ("S&P DJ Indices") and Commodities & Commercial (“C&C”).

• S&P Ratings is an independent provider of credit ratings, research and analytics, offering investors and market participants information, ratings and benchmarks.

• S&P Capital IQ is a global provider of multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services.

• S&P DJ Indices is a global leading index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors.

• C&C consists of business-to-business companies specializing in commercial and commodities markets that deliver their customers access to high-value information, data, analytic services and pricing benchmarks.

See Note 11 – Segment and Geographic Information for further discussion on our operating segments, which are also our reportable segments.

We completed the sale of our McGraw-Hill Education business ("MHE") on March 22, 2013 and, accordingly, the results of operations of MHE have been reclassified to reflect the business as a discontinued operation for the year ended December 31, 2013 and all prior periods presented. The assets and liabilities of MHE have been removed from the consolidated balance sheet as of December 31, 2013 and classified as held for sale as of December 31, 2012. See Note 2 —Acquisitions and Divestitures for further discussion.

Discontinued Operations

Discontinued Operations

In determining whether a group of assets disposed or to be disposed of should be presented as a discontinued operation, we make a determination of whether the group of assets being disposed of comprises a component of the entity; that is, whether it has historic operations and cash flows that can be clearly distinguished both operationally and for financial reporting purposes. We also determine whether the cash flows associated with the group of assets have been or will be eliminated from our ongoing operations as a result of the disposal transaction and whether we will have significant continuing involvement in the operations of the group of assets after the disposal transaction. If we conclude that the cash flows have been eliminated and we have no significant continuing involvement, then the results of operations of the group of assets being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from our continuing operating results in the consolidated financial statements. See Note 2 – Acquisitions and Divestitures for a summary of discontinued operations. Unless otherwise indicated, all disclosures and amounts in the notes to our consolidated financial statements relate to our continuing operations.

Principles of consolidation

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

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America 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

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 $1.5 billion and $760 million as of December 31, 2013 and 2012, respectively. These investments are not subject to significant market risk.

Short-term investments

Short-term investments

Short-term investments are securities with original maturities greater than 90 days that are available for use in our operations in the next twelve months. The short-term investments, primarily consisting of certificates of deposit, are classified as held-to-maturity and therefore are carried at cost. Interest and dividends are recorded into income when earned.

Accounts receivable

Accounts receivable

Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable, which include billings consistent with terms of contractual arrangements, are recorded at net realizable value.

Allowance for doubtful accounts and sales returns

Allowance for doubtful accounts

The allowance for doubtful accounts reserve methodology is based on historical analysis, a review of outstanding balances and current conditions. In determining these reserves, we consider, amongst other factors, the financial condition and risk profile of our customers, areas of specific or concentrated risk as well as applicable industry trends or market indicators.

Deferred technology costs

Deferred technology costs

We capitalize certain software development and website implementation costs. Capitalized costs only include incremental, direct costs of materials and services incurred to develop the software after the preliminary project stage is completed, funding has been committed and it is probable that the project will be completed and used to perform the function intended. Incremental costs are expenditures that are out-of-pocket to us and are not part of an allocation or existing expense base. Software development and website implementation costs are expensed as incurred during the preliminary project stage. Capitalized costs are amortized from the year the software is ready for its intended use over its estimated useful life, three to seven years, using the straight-line method. Periodically, we evaluate the amortization methods, remaining lives and recoverability of such costs. Capitalized software development and website implementation costs are included in other non-current assets and are presented net of accumulated amortization. Gross deferred technology costs were $131 million and $115 million as of December 31, 2013 and 2012, respectively. Accumulated amortization of deferred technology costs was $71 million and $58 million as of December 31, 2013 and 2012, respectively.

Fair Value

Fair Value

Certain assets and liabilities are required to be recorded at fair value and classified within a fair value hierarchy based on inputs used when measuring fair value. We have an immaterial amount of forward exchange contracts that are adjusted to fair value on a recurring basis.

Other financial instruments, including cash and equivalents and short-term investments, are recorded at cost, which approximates fair value because of the short-term maturity and highly liquid nature of these instruments. The fair value of our long-term debt borrowings were $801 million and $916 million as of December 31, 2013 and 2012, respectively, and was estimated based on quoted market prices.

Accounting for the impairment of long-lived assets (including other intangible assets)

Accounting for the impairment of long-lived assets (including other intangible assets)

We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to current forecasts of undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair value is determined based on market evidence, discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets.

During the fourth quarter of 2013, we entered the final stages of discussions to sell the facilities and associated infrastructure equipment of one of our data centers to a third party, causing us to recognize a non-cash impairment charge of $36 million for the year ended December 31, 2013 when the facilities and associated infrastructure were reclassified as held for sale. Additionally, we incurred a $26 million non-cash impairment charge associated with an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

There were no material impairments of long-lived assets for the years ended December 31, 2012 and 2011.

Goodwill and other indefinite-lived intangible assets

Goodwill and other indefinite-lived intangible assets

Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill and other intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually during the fourth quarter each year or more frequently if events or changes in circumstances indicate that the asset might be impaired. We have four reporting units with goodwill that are evaluated for impairment.

We initially perform a qualitative analysis evaluating whether any events and circumstances occurred or exist that provide evidence that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount. If, based on our evaluation we do not believe that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the fair value of any of our reporting units is less than their respective carrying amounts we perform a two-step quantitative impairment test.

When conducting the first step of our two step impairment test to evaluate the recoverability of goodwill at the reporting unit level, the estimated fair value of the reporting unit is compared to its carrying value including goodwill. Fair value of the reporting units are estimated using the income approach, which incorporates the use of a discounted free cash flow (“DCF”) analyses and are corroborated using the market approach, which incorporates the use of revenue and earnings multiples based on market data. The DCF analyses are based on the current operating budgets and estimated long-term growth projections for each reporting unit. Future cash flows are discounted based on a market comparable weighted average cost of capital rate for each reporting unit, adjusted for market and other risks where appropriate. In addition, we analyze any difference between the sum of the fair values of the reporting units and our total market capitalization for reasonableness, taking into account certain factors including control premiums.

If the fair value of the reporting unit is less than the carrying value, a second step is performed which compares the implied fair value of the reporting unit’s goodwill to the carrying value of the goodwill. The fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than the carrying value, the difference is recognized as an impairment charge.

We evaluate the recoverability of indefinite-lived intangible assets by first performing a qualitative analysis evaluating whether any events and circumstances occurred that provide evidence that it is more likely than not that the indefinite-lived asset is impaired. If, based on our evaluation of the events and circumstances that occurred during the year we do not believe that it is more likely than not that the indefinite-lived asset is impaired, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the indefinite-lived asset is impaired a quantitative impairment test is performed. If necessary, the impairment test is performed by comparing the estimated fair value of the intangible asset to its carrying value. If the indefinite-lived intangible asset carrying value exceeds its fair value, an impairment analysis is performed using the income approach. The fair value of loss is recognized in an amount equal to that excess.

Significant judgments inherent in these analyses include estimating the amount and timing of future cash flows and the selection of appropriate discount rates, royalty rates and long-term growth rate assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit and indefinite-lived intangible asset and could result in an impairment charge, which could be material to our financial position and results of operations.

We performed our impairment assessment of goodwill and indefinite-lived intangible assets and concluded that no impairment existed for the years ended December 31, 2013, and 2011. As further discussed in Note 2 – Acquisitions and Divestitures, we determined that during the year ended December 31, 2012, the goodwill at MHE's School Education Group was impaired.

Foreign currency translation

Foreign currency translation

We have operations in many foreign countries. For most international operations, the local currency is the functional currency. For international operations that are determined to be extensions of the parent company, the U.S. dollar is the functional currency. For local currency operations, assets and liabilities are translated into U.S. dollars using end of period exchange rates, and revenue and expenses are translated into U.S. dollars using weighted-average exchange rates. Foreign currency translation adjustments are accumulated in a separate component of equity.

Revenue recognition

Revenue recognition

Revenue is recognized as it is earned when goods are shipped to customers or services are rendered. We consider amounts to be earned once evidence of an arrangement has been obtained, services are performed, fees are fixed or determinable and collectability is reasonably assured. Revenue relating to products that provide for more than one deliverable is recognized based upon the relative fair value to the customer of each deliverable as each deliverable is provided. Revenue relating to agreements that provide for more than one service is recognized based upon the relative fair value to the customer of each service component as each component is earned. If the fair value to the customer for each service is not objectively determinable, management makes its best estimate of the services’ stand-alone selling price and records revenue as it is earned over the service period. For arrangements that include multiple services, fair value of the service components are determined using an analysis that considers cash consideration that would be received for instances when the service components are sold separately. Advertising revenue is recognized when the page is run. Subscription income is recognized over the related subscription period.

Depreciation

Depreciation

The costs of property and equipment are depreciated using the straight-line method based upon the following estimated useful lives: buildings and improvements from 15 to 40 years and equipment and furniture from 2 to 10 years. The costs of leasehold improvements are amortized over the lesser of the useful lives or the terms of the respective leases.

Advertising expense

Advertising expense

The cost of advertising is expensed as incurred. We incurred $43 million, $34 million and $32 million in advertising costs for the years ended December 31, 2013, 2012 and 2011, respectively.

Stock-based compensation

Stock-based compensation

Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, which typically is the vesting period. Stock-based compensation is classified as both operating-related expense and selling and general expense in the consolidated statements of income.

Income taxes

Income taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize liabilities for uncertain tax positions taken or expected to be taken in income tax returns. Accrued interest and penalties related to unrecognized tax benefits are recognized in interest expense and operating expense, respectively.

Judgment is required in determining our provision for income taxes, deferred tax assets and liabilities and unrecognized tax benefits. In determining the need for a valuation allowance, the historical and projected financial performance of the operation that is recording a net deferred tax asset is considered along with any other pertinent information.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions, and we are routinely under audit by many different tax authorities. We believe that our accrual for tax liabilities is adequate for all open audit years based on our assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. It is possible that examinations will be settled prior to December 31, 2014. If any of these tax audit settlements do occur within that period we would make any necessary adjustments to the accrual for unrecognized tax benefits. Until formal resolutions are reached between us and the tax authorities, the determination of a possible audit settlement range with respect to the impact on unrecognized tax benefits is not practicable. On the basis of present information, our opinion is that any assessments resulting from the current audits will not have a material effect on our consolidated financial statements.

Redeemable Noncontrolling Interest

Redeemable Noncontrolling Interest

The agreement with the minority partners of our S&P Dow Jones Indices LLC joint venture discussed in Note 2 —Acquisitions and Divestitures, contains redemption features whereby interests held by our minority partners is redeemable both at the option of the holder and upon the occurrence of an event that is not solely within our control. Since redemption of the noncontrolling interest is outside of our control, this interest is presented on our consolidated balance sheets under the caption “Redeemable noncontrolling interest.” If the interest were to be redeemed, we would be required to purchase all of such interest at fair value on the date of redemption. We adjust the redeemable noncontrolling interest each reporting period to its estimated redemption value, but never less than its initial fair value, using a combination of an income and market valuation approach. Our income and market valuation approaches may incorporate Level 3 measures for instances when observable inputs are not available, including assumptions related to expected future net cash flows, long-term growth rates, the timing and nature of tax attributes, and the redemption features. Any adjustments to the redemption value will impact retained income. See Note 8 – Equity, for further detail.

Contingencies

Contingencies

We accrue for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When we accrue for loss contingencies and the reasonable estimate of the loss is within a range, we record its best estimate within the range. We disclose an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred.

Recent Accounting Standards

Recent Accounting Standards

In July of 2013, the Financial Accounting Standards Board (“FASB”) issued amended guidance that resolves the diversity in practice for the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This new accounting guidance requires the netting of unrecognized tax benefits ("UTBs") against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. The new standard requires prospective adoption but allows retrospective adoption for all periods presented. We will adopt the FASB’s amended guidance for our annual reporting period beginning January 1, 2014. We do not expect the adoption of the guidance to have a significant impact on our financial position, results of operations or cash flows.

In March of 2013, the FASB issued amended guidance that resolves the diversity in practice for the accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity. The amended guidance requires that when a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income in instances when a sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Additionally, the amended guidance clarifies that the sale of an investment in a foreign entity includes both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. In these instances, an entity is required to release the cumulative translation adjustment into net income. We will adopt the FASB's amended guidance during the three months ended March 31, 2014. We do not expect the adoption of the guidance to have a significant impact on our financial position, results of operations or cash flows.

In February of 2013, the FASB issued amended guidance expanding the disclosure requirements for amounts reclassified out of accumulated other comprehensive income. The amendments require an entity to present, either on the face of the statement where net income is presented or in the notes to its financial statements, details of significant items reclassified in their entirety out of accumulated other comprehensive income and identification of the respective line items effecting net income for instances when reclassification is required under U.S. GAAP. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity will be required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by type. The amendments were effective on January 1, 2013 and have been incorporated into this Form 10-K. Adoption of this guidance did not have a significant impact on our financial position, results of operations or cash flows.

Reclassification

Reclassification

Certain prior year amounts have been reclassified for comparability purposes.

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Restructuring (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended		3 Months Ended	12 Months Ended
	Dec. 31, 2013 Restructuring Plan, 2013 [Member]	Dec. 31, 2013 Restructuring Plan, 2013 [Member]	Dec. 31, 2012 Restructuring Plan, 2013 [Member] Positions	Dec. 31, 2012 Restructuring Plan, 2012 [Member] Positions	Dec. 31, 2013 Restructuring Plan, 2012 [Member]	Dec. 31, 2012 Restructuring Plan, 2012 [Member]
Restructuring Cost and Reserve [Line Items]
Workforce reduction, positions			520	670
Restructuring charges paid	$ 10				$ 78	$ 15
Reserve accrual adjustment					7
Restructuring costs		$ 49				$ 68

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Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Operating Activities:
Net income	$ 1,466	$ 492	$ 934
Less: income (loss) from discontinued operations	563	(234)	308
Net income from continuing operations	903	726	626
Adjustments to reconcile income from continuing operations to cash provided by operating activities from continuing operations:
Depreciation	86	93	93
Amortization of intangibles	51	48	33
Provision for losses on accounts receivable	22	32	6
Deferred income taxes	43	53	17
Stock-based compensation	99	93	77
Gain on dispositions, net	(24)	0	(13)
Other	136	16	63
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	(35)	(239)	14
Prepaid and other current assets	(29)	3	(16)
Accounts payable and accrued expenses	(93)	60	(29)
Unearned revenue	108	17	44
Other current liabilities	(89)	(70)	(52)
Net change in prepaid / accrued income taxes	(238)	119	55
Net change in other assets and liabilities	(124)	(204)	6
Cash provided by operating activities from continuing operations	816	747	924
Investing Activities:
Capital expenditures	(117)	(97)	(92)
Acquisitions, including contingent payments, net of cash acquired	(47)	(177)	(194)
Proceeds from dispositions	51	0	21
Changes in short-term investments	(17)	27	(6)
Cash used for investing activities from continuing operations	(130)	(247)	(271)
Financing Activities:
(Payments on) / additions to short-term debt	(457)	457	0
Payments on senior notes	0	(400)	0
Dividends paid to shareholders	(308)	(984)	(296)
Dividends and other payments paid to noncontrolling interests	(75)	(24)	(23)
Repurchase of treasury shares	(978)	(295)	(1,500)
Exercise of stock options	258	299	139
Contingent payments	(12)	0	0
Purchase of additional CRISIL shares	(214)	0	0
Excess tax benefits from share-based payments	43	42	20
Cash used for financing activities from continuing operations	(1,743)	(905)	(1,660)
Effect of exchange rate changes on cash from continuing operations	(1)	5	(10)
Cash used for continuing operations	(1,058)	(400)	(1,017)
Cash (used for) provided by operating activities	(265)	520	420
Cash provided by (used for) investing activities	2,129	(198)	25
Cash used for financing activities	(25)	(12)	(4)
Effect of exchange rate changes on cash	1	3	(5)
Effect of change in cash and equivalents	0	12	0
Cash provided by discontinued operations	1,840	325	436
Net change in cash and equivalents	782	(75)	(581)
Cash and equivalents at beginning of year	760	835	1,416
Cash and equivalents at end of year	1,542	760	835
Cash paid during the year for:
Interest (including discontinued operations)	50	77	71
Income taxes (including discontinued operations)	$ 787	$ 243	$ 452

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Consolidated Statements of Income (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Income Statement [Abstract]
Accumulated other comprehensive income reclassifications for foreign currency translation adjustment	$ (75)

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Equity

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Equity

Equity

Capital Stock

Two million shares of preferred stock, par value $1 per share, are authorized; none have been issued.

On January 29, 2014, the Board of Directors approved an increase in the dividends for 2014 to a quarterly rate of $0.30 per common share.

	Year Ended December 31,
	2013		2012		2011
Quarterly dividend rate	$	0.28	$	0.255	$	0.25
Annualized dividend rate	$	1.12	$	1.02	$	1.00
Special dividend	$	—	$	2.50	$	—
Dividends paid (in millions)	$	308	$	984	$	296

Stock Repurchases

On December 4, 2013, the Board of Directors approved a new stock repurchase program authorizing the purchase of 50 million shares (the "2013 Repurchase Program"), which was approximately 18% of the total shares of our outstanding common stock at that time. In 2011, the Board of Directors approved a stock repurchase program authorizing the purchase of up to 50 million shares (the “2011 Repurchase Program”), which was approximately 17% of the total shares of our outstanding common stock at that time. In 2007, the Board of Directors approved a stock repurchase program authorizing the purchase of up to 45 million shares (the “2007 Repurchase Program”).

Share repurchases were as follows:

(in millions, except average price)	Year Ended December 31,
	2013		2012		2011
Total number of shares purchased - 2011 Repurchase Program1, 2	16.9		6.8		26.3
Total number of shares purchased - 2007 Repurchase Program	—		—		8.4
Average price paid per share 2, 3	$	58.52	$	50.35	$	40.48
Total cash utilized	$	989	$	295	$	1,500

¹  2013 and 2012 includes shares received as part of our accelerated share repurchase agreements as described in more detail below.

²  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. As such, in fourth quarter of 2013, 0.1 million shares were repurchased for approximately $10 million, which settled in January 2014. Excluding these 0.1 million shares, the average price paid per share was $58.36.

³  Average price paid per share information for 2013 includes the accelerated share repurchase transaction, while 2012 and 2011 does not include the accelerated share repurchase transactions entered in December 2011 as discussed in more detail below.

Our purchased shares may be 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. As of December 31, 2013, 50 million shares remained available under the 2013 Repurchase Program. As of December 31, 2013, there were no remaining shares available under the 2007 or 2011 Repurchase Programs. The 2013 Repurchase Program has no expiration date and purchases under this program may be made from time to time on the open market and in private transactions, depending on market conditions.

Accelerated Share Repurchase Program

We entered into an accelerated share repurchase (“ASR”) agreement with a financial institution on March 25, 2013 to initiate share repurchases aggregating $500 million. The ASR agreement was structured as a capped ASR agreement in which we paid $500 million and received an initial delivery of approximately 7.2 million shares during the three months ended March 31, 2013, with an additional 1.4 million shares received on April 1, 2013, in the aggregate, representing the minimum number of shares of our common stock to be repurchased based on a calculation using a specific capped price per share. The total number of shares ultimately purchased was determined based on the volume weighted-average share price (“VWAP”), minus a discount, of our common stock from March 25, 2013 through July 22, 2013. On July 25, 2013 we received a final incremental delivery of 0.7 million shares determined using a VWAP of $53.7995 bringing the total amount of shares received to 9.3 million.

In December of 2011 we entered into two separate ASR agreements with a financial institution to initiate share repurchases aggregating $500 million. The first ASR agreement was structured as an uncollared ASR agreement for the repurchase of $250 million of shares at a per share price equal to the VWAP of our common stock between December 7, 2011 and February 22, 2012. We purchased and received approximately 5 million and 0.8 million shares in December 2011 and February 2012, respectively, under the agreement. The second agreement was structured as a capped agreement for the repurchase of 250 million of shares where we purchased and received 5 million and 0.1 million shares in December 2011 and April 2012, respectively.

Redeemable Noncontrolling Interests

The agreement with the minority partners of our S&P Dow Jones Indices LLC partnership discussed in Note 2 – Acquisitions and Divestitures contains redemption features whereby interests held by minority partners are redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that is not solely within our control. Specifically, under the terms of the operating agreement of S&P Dow Jones Indices LLC, after December 31, 2017, CME Group and CGIS will have the right at any time to sell, and we are obligated to buy, at least 20% of their share in S&P Dow Jones Indices LLC. In addition, in the event there is a change of control of the Company, for the 15 days following a change in control, CME Group and CGIS will have the right to put their interest to us at the then fair value of CME Group's and CGIS' minority interest.

If interests were to be redeemed under this agreement, we would generally be required to purchase the interest at fair value on the date of redemption. This interest is presented on the consolidated balance sheet outside of equity under the caption “Redeemable noncontrolling interest” with an initial value based on fair value for the portion attributable to the net assets we acquired, and based on our historical cost for the portion attributable to our S&P Index business. We adjust the redeemable noncontrolling interest each reporting period to its estimated redemption value, but never less than its initial fair value, considering a combination of an income and market valuation approach. Out income and market valuation approaches may incorporate Level 3 fair value measures for instances when observable inputs are not available, including assumptions related to expected future net cash flows, long-term growth rates, the timing and nature of tax attributes, and the redemption features. Any adjustments to the redemption value will impact retained income.

Noncontrolling interests that do not contain such redemption features are presented in equity.

Changes to redeemable noncontrolling interest during the year ended December 31, 2013 were as follows:

(in millions)
Balance as of December 31, 2012	$	810
Net income attributable to noncontrolling interest	73
Distributions to noncontrolling interest	(62		)
Redemption value adjustment	(11		)
Balance as of December 31, 2013	$	810

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Document and Entity Information (USD $) In Billions, except Share data in Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Jan. 31, 2014	Jun. 30, 2013
Document Information [Line Items]
Entity Registrant Name	MCGRAW HILL FINANCIAL INC
Entity Central Index Key	0000064040
Document Type	10-K
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
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			$ 14.6
Entity Common Stock, Shares Outstanding		271.0

XML

Earnings per Share

12 Months Ended

Dec. 31, 2013

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)	Year Ended December 31,
	2013		2012			2011
Amount attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$	812	$	676		$	607
Income (loss) from discontinued operations	564		(239		)	304
Net income attributable to the Company	$	1,376	$	437		$	911
Basic weighted-average number of common shares outstanding	274.5		278.6			298.1
Effect of stock options and other dilutive securities	5.3		6.0			5.5
Diluted weighted-average number of common shares outstanding	279.8		284.6			303.6
Basic EPS:
Income from continuing operations	$	2.96	$	2.43		$	2.03
Income (loss) from discontinued operations	2.05		(0.86		)	1.02
Net income	$	5.01	$	1.57		$	3.05
Diluted EPS:
Income from continuing operations	$	2.90	$	2.37		$	2.00
Income (loss) from discontinued operations	2.01		(0.84		)	1.00
Net income	$	4.91	$	1.53		$	3.00

There were 0.9 million, 1.4 million and 1.6 million restricted performance shares outstanding as of December 31, 2013, 2012 and 2011, 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, 2013, 2012 and 2011, the number of stock options excluded from the computation are as follows:

(in millions)	Year Ended December 31,
	2013	2012	2011
Stock options excluded from diluted EPS computation	1.2	3.4	10.1

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Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Statement of Comprehensive Income [Abstract]
Net income	$ 1,466	$ 492	$ 934
Other comprehensive income:
Foreign currency translation adjustment	93	29	(35)
Income tax effect	(2)	(19)	11
Foreign currency translation adjustment, net of income tax effect	91	10	(24)
Pension and other postretirement benefit plans	385	(164)	(45)
Income tax effect	(154)	63	9
Pension and other post-retirement benefit plans, net of income tax effect	231	(101)	(36)
Unrealized gain (loss) on investment and forward exchange contract	2	(4)	(12)
Income tax effect	(2)	2	4
Unrealized loss on investments and forward exchange contracts, net of income tax effect	0	(2)	(8)
Comprehensive income	1,788	399	866
Less: comprehensive income attributable to nonredeemable noncontrolling interests	(18)	(20)	(13)
Less: comprehensive income attributable to redeemable noncontrolling interests	(73)	(34)	0
Comprehensive income attributable to McGraw Hill Financial, Inc.	$ 1,697	$ 345	$ 853

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired.

The change in the carrying amount of goodwill by segment is shown below:

(in millions)	S&P Ratings			S&P Capital IQ			S&P DJ Indices			C&C			Total
Balance as of December 31, 2011	$	197		$	238		$	223		$	446		$	1,104
Acquisitions	29			164			111			21			325
Transfers/reorganizations	(95		)	53			45			—			3
Other (primarily Fx)	(1		)	2			1			4			6
Balance as of December 31, 2012	130			457			380			471			1,438
Dispositions	—			(3		)	(4		)	(29		)	(36		)
Other (primarily Fx)	(5		)	15			—			—			10
Balance as of December 31, 2013	$	125		$	469		$	376		$	442		$	1,412

Goodwill additions and dispositions in the table above relate to transactions discussed in Note 2 – Acquisitions and Divestitures.

Other Intangible Assets

Other intangible assets include both indefinite-lived assets not subject to amortization and definite-lived assets subject to amortization. We have indefinite-lived assets with a carrying value of $634 million as of both December 31, 2013 and 2012 that consist of:

• $380 million and $90 million, for Dow Jones Indices intellectual property and the Dow Jones tradename, respectively, that we recorded as part of the transaction to form S&P Dow Jones Indices LLC in 2012 further described in Note 2 – Acquisitions and Divestitures, and

• $164 million within our C&C segment for the J.D. Power and Associates tradename.

The following table summarizes our definite-lived intangible assets:

(in millions)
Cost	Databases and software			Content		Customer relationships		Tradenames			Other intangibles			Total
Balance as of December 31, 2011	$	109		$	139	$	115	$	45		$	62		$	470
Acquisitions	17			—		110		1			108			236
Other (primarily Fx)	—			—		—		(1		)	1			—
Balance as of December 31, 2012	126			139		225		45			171			706
Acquisitions	—			—		—		—			44			44
Dispositions	(9		)	—		—		—			(13		)	(22		)
Impairment 1	—			—		—		—			(26		)	(26		)
Other (primarily Fx)	(2		)	—		—		—			(6		)	(8		)
Balance as of December 31, 2013	$	115		$	139	$	225	$	45		$	170		$	694
Accumulated amortization
Balance as of December 31, 2011	$	70		$	17	$	43	$	27		$	50		$	207
Current year amortization	10			14		11		3			10			48
Other (primarily Fx)	—			—		1		—			3			4
Balance as of December 31, 2012	80			31		55		30			63			259
Current year amortization	9			14		11		2			15			51
Dispositions	(6		)	—		—		—			(9		)	(15		)
Other (Primarily Fx)	—			—		1		—			(1		)	—
Balance as of December 31, 2013	$	83		$	45	$	67	$	32		$	68		$	295
Net definite-lived intangibles:
December 31, 2012	$	46		$	108	$	170	$	15		$	108		$	447
December 31, 2013	$	32		$	94	$	158	$	13		$	102		$	399

¹  We incurred a $26 million non-cash impairment charge associated with an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

Definite-lived intangible assets are being amortized on a straight-line basis over periods of up to 40 years. The weighted-average life of the intangible assets as of December 31, 2013 is approximately 9 years. Amortization expense for the years ended December 31, 2013, 2012 and 2011, and the projected amortization expense for intangible assets over the next 5 years for the years ended December 31, assuming no further acquisitions or dispositions, is as follows:

(in millions)	Amortization expense		Expected amortization expense
2011	$	33
2012	48
2013	51
2014			$	47
2015			45
2016			45
2017			42
2018			36

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Acquisitions and Divestitures

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Acquisitions

2013

For the year ended December 31, 2013, we paid cash for acquisitions, net of cash acquired, totaling $273 million. None of our acquisitions were material either individually or in the aggregate, including the pro forma impact on earnings. All acquisitions were funded with cash flows from operations. Acquisitions completed during the year ended December 31, 2013 by segment included:

S&P DJ Indices

• In December 2013 we purchased the intellectual property rights to a range of commodities indices developed by Goldman Sachs as well as a limited-use license to promote the commodities indices using the Goldman Sachs Commodity Index trade marks. The commodities indices provide us with a leading benchmark that measures general price movements and inflation in the world economy. We accounted for the acquisition of the intellectual property on a cost basis.

S&P Ratings

• In June of 2013 we made a voluntary open offer to purchase up to an additional 22.23% of the total equity shares outstanding in CRISIL Limited ("CRISIL"), our majority owned Indian credit rating agency within our S&P Ratings segment. In August of 2013, at the conclusion of the tender offer period, we acquired approximately 11 million equity shares representing 15.07% of CRISIL's total outstanding equity shares for $214 million, increasing our ownership percentage in CRISIL to 67.84% from 52.77%.

Following CRISIL's acquisition of Coalition Development Ltd. ("Coalition") that occurred in July of 2012, we made a contingent purchase price payment in 2013 for $12 million that has been reflected in the consolidated statement of cash flows as a financing activity.

2012

For the year ended December 31, 2012, we paid cash for acquisitions, net of cash acquired, totaling $177 million. None of our acquisitions were material either individually or in the aggregate, including the pro forma impact on earnings. All acquisitions were funded with cash flows from operations. Acquisitions completed during the year ended December 31, 2012 by segment included:

S&P DJ Indices

• On June 29, 2012, we closed our transaction with CME Group, Inc. (“CME Group”) and CME Group Index Services LLC (“CGIS”), a joint venture between CME Group and Dow Jones & Company, Inc., to form a new company, S&P Dow Jones Indices LLC. See below for further detail related to this transaction.

S&P Capital IQ

• On June 29, 2012, we acquired Credit Market Analysis Limited (“CMA”) from the CME Group. CMA provides independent data concerning the over-the-counter markets. CMA's data and technology will enhance our capability to provide pricing and related over-the-counter information.

• On April 3, 2012, we completed the acquisition of QuantHouse, an independent global provider of end-to-end systematic low-latency market data solutions. The acquisition allows us to offer real-time monitors, derived data sets and analytics as well as the ability to package and resell this data as part of a core solution.

• On February 8, 2012, we completed the acquisition of R² Technologies (“R²”). R² provides advanced risk and scenario-based analytics to traders, portfolio and risk managers for pricing, hedging and capital management across asset classes. 

C&C

• On November 1, 2012, we completed the acquisition of Kingsman SA (“Kingsman”), a privately-held, Switzerland-based provider of price information and analytics for the global sugar and biofuels markets. The acquisition of Kingsman will expand our presence in sugar and biofuels information markets and has the potential to provide growth in the global agricultural information markets.

S&P Ratings

• On July 4, 2012, CRISIL, our majority owned Indian credit rating agency, completed the acquisition of Coalition Development Ltd. (“Coalition”), a privately-held U.K. analytics company, and its subsidiaries. Coalition provides high-end analytics to leading global investment banks and other financial services firms. Coalition has been integrated into CRISIL's Global Research & Analytics business.

Our acquisitions during 2012 were accounted for using the purchase method. Under the purchase method, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill and other intangibles. Intangible assets recorded for all transactions are amortized using the straight-line method for periods not exceeding 20 years. None of the goodwill acquired from our acquisitions during 2012 will be deductible for tax purposes.

Acquisition of Dow Jones Index Business

We own 73% and CME Group and CGIS collectively own 27% of S&P Dow Jones LLC. In exchange for their 27% minority interest, CME Group and CGIS contributed their Dow Jones Index (“DJI”) business; in exchange for our 73% and controlling interest, we contributed our Standard & Poor's Index (“S&P Index”) business. The DJI business focuses on the development of financial benchmarks used by licensees to create exchange-traded funds, option contracts and futures contracts traded on exchanges as well as used as a metric to evaluate economic performance. The combination of these businesses creates the world's premier provider of financial market indices; we expect to increase revenue through international and asset-class expansion, new product development, enhanced market data offerings and increased cross-selling opportunities. The pro forma impact on revenue and earnings from our joint venture with the DJI business was not material to our consolidated results for the year ended December 31, 2012.

The terms of the operating agreement of S&P Dow Jones Indices LLC contain redemption features whereby interests held by minority partners are redeemable. See Note 8 – Equity for further discussion.

Acquisition-Related Expenses

During the year ended December 31, 2012, we incurred $15 million of acquisition-related costs related to the formation of S&P Dow Jones Indices LLC. These expenses are included in selling and general expenses in our consolidated statement of income.

Allocation of Purchase Price

Because we consolidate S&P Dow Jones Indices LLC, we have applied the purchase method of accounting to the S&P Dow Jones Indices LLC contributed business. DJI's results of operations have been included in our consolidated results of operations subsequent to June 29, 2012 (the "Acquisition Date").

The fair value of the DJI business acquired of $792 million was estimated by applying a market approach and an income approach. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement. The fair value estimates of the proportionate shares of the contributed businesses are based on, but not limited to, future expected cash flows, appropriate discount rates ranging from 10% to 11%, long term growth rates of 2.5% to 3.5%, assumed financial multiples of companies deemed to be similar to the DJI, and market rate assumptions for contractual obligations. S&P Index continues to be recorded at its historical or carry-over basis.

At the Acquisition Date, our noncontrolling interest has been recorded at the fair value of DJI we acquired plus the proportionate interest of the S&P Index business at our carry-over basis. As of June 30, 2012, we recorded a redeemable noncontrolling interest in our consolidated financial statements (see Note 8 – Equity for further discussion) at the preliminary fair value of 27% of S&P Dow Jones Indices LLC or $792 million due to the redemption provisions described above, representing CME Group's and CGIS' interest in S&P Dow Jones Indices LLC.

The tables below present the consideration transferred and the allocation of purchase price to the assets and liabilities of the DJI business acquired as a result of the transaction.

Consideration Transferred

(in millions)
Fair value of 27% of S&P Index	$	571
Fair value of redeemable noncontrolling interest associated with net assets acquired	221
Total	$	792

Purchase Price Allocation

(in millions)
Current assets	$	79
Intangible assets:
Indefinite-lived intangibles	470
Customer relationships	110
Other intangibles	33
Goodwill	111
Current liabilities	(11		)
Total net assets	$	792

The intangible assets, excluding goodwill and indefinite-lived intangibles, will be amortized over their anticipated useful lives of between 5 and 20 years.

Income Taxes

We are responsible for the tax matters for S&P Dow Jones Indices LLC, including the filing of returns and the administration of any proceedings with taxing authorities. For U.S. federal income tax purposes, S&P Dow Jones Indices LLC is treated as a partnership. The income of S&P Dow Jones Indices LLC flows through and is subject to tax at the partners' level. However S&P Dow Jones Indices LLC incurs current and deferred income taxes in a limited number of states and localities and its foreign subsidiaries incur immaterial current and deferred foreign income taxes.

We recognized $216 million of non-current deferred tax liabilities in connection with CME Group and CGIS acquiring an indirect noncontrolling interest in the S&P Index business in exchange for our acquisition of a portion of our interest in the DJI business. Because we maintained control of the S&P Index business, the excess of fair value received over historical carrying value and the related tax impact were recorded in additional paid-in capital.

Goodwill and Identifiable Intangibles

Goodwill consists primarily of intangible assets that do not qualify for separate recognition, including assembled workforce, noncontractual relationships and agreements. The goodwill is not expected to be deductible for tax purposes.

2011

For the year ended December 31, 2011, we completed acquisitions totaling $194 million. None of our acquisitions were material either individually or in the aggregate, including the pro forma impact on earnings. All acquisitions were funded with cash flows from operations. Acquisitions completed during the year ended December 31, 2011 included:

• On July 1, 2011, we acquired the issued and outstanding shares of Steel Business Briefing Group (the “SBB Group”), a privately held U.K. company and leading provider of news, pricing and analytics to the global steel market. The SBB Group provides subscription-based, electronic products to the steel industry and its participants through two principal businesses, Steel Business Briefing and The Steel Index. The SBB Group is included within Platts, part of our C&C segment. In connection with the preliminary purchase price allocation, estimates of the fair values of long-lived and intangible assets have been determined utilizing currently available information and are subject to finalization.

• On January 3, 2011, we acquired all of the issued and outstanding membership interest units of Bentek Energy LLC (“Bentek”), which is included as part of our C&C segment. Bentek offers its customers a comprehensive portfolio of data, information and analytics products in the natural gas and liquids sector. The primary purpose of the acquisition was to acquire Bentek’s knowledge, skill and expertise in gathering high-quality detailed data and their ability to identify key relationships within the data critical to industry participants.

Our acquisitions of the SBB Group and Bentek were accounted for using the purchase method. Under the purchase method, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill and other intangibles. Intangible assets recorded for all transactions are amortized using the straight-line method for periods not exceeding 12 years. The goodwill acquired from the Bentek acquisition will be deductible for tax purposes; the goodwill acquired from the SBB Group acquisition will not be deductible for tax purposes.

Non-cash investing activities

Liabilities assumed in conjunction with the acquisition of businesses are as follows:

(in millions)	Years ended December 31,
	2013		2012		2011
Fair value of assets acquired	$	—	$	1,071	$	214
Fair value of consideration transferred for DJI business	—		792		—
Cash paid (net of cash acquired)	—		177		194
Liabilities assumed 1	$	—	$	102	$	20

¹  2013 acquisitions did not result in any liabilities assumed.

Divestitures - Continuing Operations

During the year ended December 31, 2013, we completed the following dispositions that resulted in a net pre-tax gain of $24 million, which was included in other loss (income) in the consolidated statement of income:

• On September 30, 2013, we completed the sale of Financial Communications, which was part of our S&P Capital IQ segment.

• On August 27, 2013, CRISIL sold its 49% equity interest in India Index Services & Products Ltd. This investment was held within our S&P Ratings segment.

• On August 1, 2013, we completed the sale Aviation Week within our C&C segment to Penton, a privately held business information company.

Additionally, S&P Capital IQ closed several of their non-core businesses during 2013.

We did not complete any dispositions during the year ended December 31, 2012.

During the year ended December 31, 2011, we recorded a pre-tax gain of $13 million within other loss (income) in the consolidated statement of income related to the sale of our interest in the LinkedIn Corporation as part of their initial public offering. This investment was held within our C&C segment.

Discontinued Operations

On March 22, 2013, we completed the sale of MHE to investment funds affiliated with Apollo Global Management, LLC for a purchase price of $2.4 billion in cash. We recorded an after-tax gain on the sale of $589 million , which is included in discontinued operations, net in the consolidated statement of income for the year ended December 31, 2013. We have used a portion of the after-tax proceeds from the sale to pay down short-term debt, for the special dividend paid in 2012, and to continue share repurchases. We intend to continue to use a portion of the after-tax proceeds to make selective acquisitions and investments.

In addition to the sale of MHE, our discontinued operations for the year ended December 31, 2011 also include the Broadcasting Group as we entered into a definitive agreement on October 3, 2011 with The E.W. Scripps Company to sell the Broadcasting Group. The sale was completed on December 30, 2011, when we received net proceeds of approximately $216 million. As a result of the sale, we recognized a pre-tax gain of $123 million, which was included in discontinued operations, net. For the year ended December 31, 2011 and prior periods presented, we reported our Broadcasting Group, previously included in our C&C segment, as a discontinued operation.

The key components of income from discontinued operations consist of the following:

(in millions)	Years ended December 31,
	2013			2012			2011
Revenue	$	268		$	2,062		$	2,382
Expenses	310			2,287			2,035
Operating (loss) income	(42		)	(225		)	347
Interest expense (income), net	2			(2		)	(3		)
(Loss) income before taxes on (loss) income	(44		)	(223		)	350
(Benefit) provision for taxes on (loss) income	(18		)	11			116
(Loss) income from discontinued operations, net of tax	(26		)	(234		)	234
Pre-tax gain on sale from discontinued operations	888			—			122
Provision for taxes on gain on sale	299			—			48
Gain on sale of discontinued operations, net of tax	589			—			74
Discontinued operations, net	563			(234		)	308
Less: net (loss) income attributable to noncontrolling interests	(1		)	5			4
Income (loss) from discontinued operations attributable to McGraw Hill Financial, Inc. common shareholders	$	564		$	(239	)	$	304

Results from discontinued operations for the year ended December 31, 2013 included the after-tax gain on sale of MHE of $589 million.

Results from discontinued operations for the year ended December 31, 2012 included several non-recurring items:

• Intangible asset impairments of $497 million that consisted of goodwill, prepublication and inventory assets at MHE's School Education Group ("SEG").

◦ As a result of the offer we received from Apollo Global Management, LLC in the fourth quarter of 2012, we performed a goodwill impairment review at MHE, which resulted in a full impairment of goodwill of $478 million at SEG.

◦ An impairment charge of $19 million was recorded on certain prepublication and inventory assets as targeted school programs were shut down.

• Restructuring charges of $39 million consisting primarily of employee severance costs related to a workforce reduction of approximately 530 positions.

• Direct transaction costs of $17 million for legal and professional fees related to the sale of MHE.

• A charge related to a lease commitment of $3 million.

• These charges were partially offset by a vacation accrual reversal of $17 millionrelated to a change in our vacation policy.

Results from discontinued operations for the year ended December 31, 2011 included the after-tax gain on sale of the Broadcasting Group of $123 million.

The components of assets and liabilities classified as held for sale in the consolidated balance sheet consist of the following:

(in millions)	December 31, 2012
Accounts receivable, net	$	333
Property and equipment, net	122
Goodwill	469
Other intangible assets, net	156
Inventories, net	235
Prepublication costs	304
Other assets	321
Assets held for sale	$	1,940
Accounts payable and accrued expenses	$	123
Unearned revenue	192
Other liabilities	349
Liabilities held for sale	$	664

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Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2013

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

Schedule II – Valuation and Qualifying Accounts

(in millions)

Additions/(deductions)	Balance at beginning of year		Net charges to income		Deductions and other 1			Balance at end of year
Year ended December 31, 2013
Allowance for doubtful accounts	$	54	$	20	$	(22	)	$	52
Year ended December 31, 2012
Allowance for doubtful accounts	$	29	$	32	$	(7	)	$	54
Year ended December 31, 2011
Allowance for doubtful accounts	$	38	$	26	$	(35	)	$	29

¹  Primarily includes uncollectible accounts written off, net of recoveries, impact of acquisitions and divestitures and adjustments for foreign currency translation.

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Restructuring

12 Months Ended

Dec. 31, 2013

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

As part of our Growth and Value Plan that we began in September of 2011, we have initiated various restructuring plans as we identified opportunities for cost savings through workforce reductions and created a flatter and more agile organization. Additionally, as we continued to evaluate our remaining cost structure in 2013, particularly in light of recent divestitures, we further identified cost savings associated with streamlining our management structure and our decision to exit non-strategic businesses. Our 2013 and 2012 restructuring plans consisted of a company-wide workforce reduction of approximately 520 positions and 670 positions, respectively, and are further detailed below. The charges for each restructuring plan are classified as selling and general expenses within the consolidated statements of income and the reserves are included in other current liabilities in the consolidated balance sheets.

In certain circumstances, reserves are no longer needed because of efficiencies in carrying out the plans or because employees previously identified for separation resigned from the Company and did not receive severance or were reassigned due to circumstances not foreseen when the original plans were initiated. In these cases, we reverse reserves through the consolidated statements of income during the period when it is determined they are no longer needed. There was approximately $7 million of reserves from the 2012 restructuring plan that we have reversed in 2013, which offset the initial charge of $49 million recorded for the 2013 restructuring plan.

As part of the sale of MHE, described further in Note 2 —Acquisitions and Divestitures, we have retained MHE's restructuring liabilities. Therefore, the remaining reserve for the 2012 restructuring plan detailed below includes MHE's restructuring liability, however, the initial charge associated with the reserve has been bifurcated between continuing and discontinued operations.

The initial restructuring charge recorded and the ending reserve balance as of December 31, 2013 by segment is as follows:

	2013 Restructuring Plan				2012 Restructuring Plan
(in millions)	Initial Charge Recorded		Ending Reserve Balance		Initial Charge Recorded		Ending Reserve Balance
S&P Ratings	$	13	$	13	$	15	3
S&P Capital IQ	10		9		19		1
S&P DJ Indices	—		—		1		—
C&C	10		7		12		2
Corporate	16		10		21		—
Total continuing operations	49		39		68		6
MHE	—		—		39		8
Total	$	49	$	39	$	107	$	14

For the year ended December 31, 2013, we have reduced the reserve for the 2013 restructuring plan by $10 million and for the years ended December 31, 2013 and 2012, we have reduced the reserve for the 2012 restructuring plan by $78 million and $15 million, respectively. The reductions primarily related to cash payments for employee severance costs.

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Employee Benefits

12 Months Ended

Dec. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Employee Benefits

Employee Benefits

We maintain a number of active defined contribution retirement plans for our employees. The majority of our defined benefit plans are frozen. As a result, no new employees will be permitted to enter these plans and no additional benefits for current participants in the frozen plans will be accrued.

We also have supplemental benefit plans that 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 also provide certain medical, dental and life insurance benefits for active and retired employees and eligible dependents. The medical and dental plans and supplemental life insurance plan are contributory, while the basic life insurance plan is noncontributory. We currently do not prefund any of these plans.

We recognize the funded status of our retirement and postretirement plans in the consolidated balance sheets, 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.

As part of the sale of MHE, described further in Note 2 – Acquisitions and Divestitures, we retained the benefit obligations and plan assets related to MHE, however, the benefit cost for periods presented is bifurcated between continuing and discontinued operations.

Benefit Obligation

A summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and postretirement plans as of December 31, is as follows (benefits paid in the table below include only those amounts contributed directly to or paid directly from plan assets):

(in millions)	Retirement Plans						Postretirement Plans
	2013			2012			2013			2012
Net benefit obligation at beginning of year	$	2,171		$	1,834		$	129		$	129
Service cost	10			24			2			3
Interest cost	91			93			5			5
Plan participants’ contributions	—			1			4			5
Actuarial (gain) loss	(178		)	287			(13		)	3
Gross benefits paid	(77		)	(71		)	(13		)	(17		)
Foreign currency effect	8			11			—			—
Curtailment 1	(26		)	—			(11		)	—
Other adjustments	5			(8		)	—			1
Net benefit obligation at end of year	2,004			2,171			103			129
Fair value of plan assets at beginning of year	1,851			1,505			—			—
Actual return on plan assets	281			212			—			—
Employer contributions	27			193			9			12
Plan participants’ contributions	—			1			4			5
Gross benefits paid	(77		)	(71		)	(13		)	(17		)
Foreign currency effect	6			11			—			—
Fair value of plan assets at end of year	2,088			1,851			—			—
Funded status	$	84		$	(320	)	$	(103	)	$	(129	)
Amounts recognized in consolidated balance sheets:
Non-current assets	$	261		$	98		$	—		$	—
Current liabilities	(7		)	(7		)	(9		)	(11		)
Non-current liabilities	(170		)	(411		)	(94		)	(118		)
	$	84		$	(320	)	$	(103	)	$	(129	)
Accumulated benefit obligation	$	2,004		$	2,093
Plans with accumulated benefit obligation in excess of the fair value of plan assets:
Projected benefit obligation	$	176		$	1,773
Accumulated benefit obligation	$	158		$	1,756
Fair value of plan assets	$	—		$	1,356
Amounts recognized in accumulated other comprehensive loss, net of tax:
Net actuarial loss (gain)	$	227		$	455		$	(11	)	$	(3	)
Prior service credit	1			(4		)	(1		)	(1		)
Total recognized	$	228		$	451		$	(12	)	$	(4	)

¹  The curtailment gain for our retirement plans relates to a freeze of pension accruals for MHE employees as well as all remaining active employees in the United Kingdom ("U.K."). The curtailment gain for our postretirement plans relates to the sale of MHE on March 22, 2013.

The actuarial loss included in accumulated other comprehensive loss for our retirement plans and expected to be recognized in net periodic pension cost during the year ending December 31, 2014 is $7 million. There is no prior service credit included in accumulated other comprehensive loss for our retirement plans expected to be recognized in net periodic benefit cost during the year ending December 31, 2014.

There are immaterial amounts of prior service credit and actuarial loss included in accumulated other comprehensive loss for our postretirement plans expected to be recognized in net periodic benefit cost during the year ending December 31, 2014.

Net Periodic Cost

For purposes of determining annual pension cost, prior service costs are being amortized straight-line over the average remaining service period of employees expected to receive benefits.

A summary of net periodic benefit cost for our retirement and postretirement plans for the years ended December 31, is as follows:

(in millions)	Retirement Plans									Postretirement Plans
	2013			2012			2011			2013			2012			2011
Service cost	$	10		$	24		$	67		$	2		$	3		$	3
Interest cost	91			93			99			5			5			6
Expected return on assets	(129		)	(124		)	(127		)	—			—			—
Amortization of:
Actuarial loss	26			32			31			—			—			—
Prior service credit	5			(1		)	—			(1		)	(1		)	(1		)
Curtailment 1	(8		)	—			—			(12		)	—			—
Net periodic benefit cost	$	(5	)	$	24		$	70		$	(6	)	$	7		$	8

¹  The curtailment gain for our retirement plans relates to a freeze of pension accruals for MHE employees as well as all remaining active employees in the United Kingdom ("U.K."). The curtailment gain for our postretirement plans relates to the sale of MHE on March 22, 2013.

Our U.K. retirement plan accounted for a benefit of $10 million in 2013, including the $8 million curtailment gain discussed above, and $3 million in 2012 and 2011 of the net periodic benefit cost attributable to the funded plans.

Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax for the years ended December 31, are as follows:

(in millions)	Retirement Plans									Postretirement Plans
	2013			2012			2011			2013			2012		2011
Net actuarial (gain) loss	$	(213	)	$	116		$	65		$	(8	)	$	2	$	(12	)
Recognized actuarial gain	(15		)	(20		)	(18		)	—			—		—
Prior service credit	5			2			—			—			1		1
Total recognized	$	(223	)	$	98		$	47		$	(8	)	$	3	$	(11	)

The total cost for our retirement plans was $96 million for 2013, $129 million for 2012 and $175 million for 2011. Included in the total retirement plans cost are defined contribution plans cost of $75 million for 2013, $86 million for 2012 and $88 million 2011.

Assumptions

	Retirement Plans						Postretirement Plans
	2013		2012		2011		2013		2012		2011
Benefit obligation: 1
Discount rate	5.0	%	4.1	%	5.1	%	4.20	%	3.45	%	4.45	%
Compensation increase factor	N/A		N/A		4.5	%
Net periodic cost:
Weighted-average healthcare cost rate 2							7.0	%	7.5	%	8.0	%
Discount rate - U.S. plan 3	4.1	%	5.1	%	5.4	%	3.45	%	4.45	%	4.65	%
Discount rate - U.K. plan 3	4.8	%	5.1	%	5.5	%
Compensation increase factor - U.S. plan	N/A		4.5	%	4.5	%
Compensation increase factor - U.K. plan	5.75	%	5.85	%	6.25	%
Return on assets 4	7.25	%	7.75	%	8.0	%

¹  These assumptions for the retirement plans relate to our U.S. ERP and a compensation increase factor is no longer applicable because there are no further salary increases as the U.S. ERP was frozen in April 2012.

²  The assumed weighted-average healthcare cost trend rate will decrease ratably from 7% in 2013 to 5% in 2020 and remain at that level thereafter. Assumed healthcare cost trends have an effect on the amounts reported for the healthcare plans. A one percentage point change in assumed healthcare cost trend creates the following effects:

(in millions)	1% point increase		1% point decrease
Effect on postretirement obligation	$	4	$	(4	)

³  Effective January 1, 2014, we changed our discount rate assumption on our U.S. retirement plans to 5.0% from 4.1% in 2013 and changed our discount rate assumption on our U.K. plan to 4.5% from 4.8% in 2013.

⁴  The expected return on assets assumption is calculated based on the plan’s asset allocation strategy and projected market returns over the long-term. Effective January 1, 2014, we changed our return on assets assumption to 7.125% from 7.25% for the U.S. plan in 2013 and to 6.75% from 7.25% for the U.K. plan in 2013.

Cash Flows

In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”) was enacted. The Act established a prescription drug benefit under Medicare, known as “Medicare Part D”, and a federal subsidy to sponsors of retiree healthcare benefit plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. Our benefits provided to certain participants are at least actuarially equivalent to Medicare Part D, and, accordingly, we are entitled to a subsidy.

Expected employer contributions in 2014 are $23 million for our retirement plans and $10 million for our postretirement plans. In 2014, we may elect to make additional non-required contributions depending on investment performance and the pension plan status. Information about the expected cash flows for our retirement and postretirement plans and the impact of the Medicare subsidy is as follows:

(in millions)			Postretirement Plans 2
	Retirement 1 Plans		Gross payments		Retiree contributions			Medicare subsidy			Net payments
2014	$	76	$	14	$	(5	)	$	(1	)	$	8
2015	79		14		(5		)	(1		)	8
2016	84		15		(6		)	(1		)	8
2017	88		15		(6		)	(1		)	8
2018	92		15		(7		)	(1		)	7
2019-2023	512		79		(44		)	(3		)	32

¹  Reflects the total benefits expected to be paid from the plans or from our assets including both our share of the benefit cost and the participants’ share of the cost.

²  Reflects the total benefits expected to be paid from our assets.

Fair Value of Plan Assets

In accordance with authoritative guidance for fair value measurements certain assets and liabilities are required to be recorded at fair value. Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value hierarchy has been established which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs used to measure fair value are as follows:

• Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities.

• Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The fair value of our defined benefit plans assets as of December 31, 2013 and 2012, by asset class is as follows:

(in millions)	December 31, 2013
	Total		Level 1		Level 2		Level 3
Cash and short-term investments, and other	$	68	$	20	$	48	$	—
Equity securities:
U.S. indexes 1	514		145		369		—
U.S. growth and value	373		325		48		—
U.K.	183		101		82		—
International, excluding U.K.	227		131		96		—
Fixed income securities:
Long duration strategy 2	517		—		517		—
Intermediate duration securities	11		—		11		—
Agency mortgage backed securities	7		—		7		—
Asset backed securities	16		—		16		—
Non-agency mortgage backed securities 3	45		—		45		—
U.K. 4	66		—		66		—
International, excluding U.K.	61		—		61		—
Total	$	2,088	$	722	$	1,366	$	—

(in millions)	December 31, 2012
	Total		Level 1		Level 2		Level 3
Cash and short-term investments, and other	$	180	$	2	$	178	$	—
Equity securities:
U.S. indexes 1	399		119		280		—
U.S. growth and value	344		307		37		—
U.K.	154		85		69		—
International, excluding U.K.	225		137		87		1
Fixed income securities:
Long duration strategy 2	370		—		370		—
Intermediate duration securities	3		—		3		—
Agency mortgage backed securities	13		—		13		—
Asset backed securities	10		—		10		—
Non-agency mortgage backed securities 3	52		—		52		—
U.K. 4	41		—		41		—
International, excluding U.K.	43		—		43		—
Real estate:
U.K. 5	17		—		—		17
Total	$	1,851	$	650	$	1,183	$	18

¹  Includes securities that are tracked in the following indexes: S&P 500, S&P MidCap 400, S&P MidCap 400 Growth and S&P Smallcap 600.

²  Includes securities that are investment grade obligations of issuers in the U.S.

³  Includes U.S. mortgage-backed securities that are not backed by the U.S. government.

⁴  Includes securities originated by the government of and other issuers from the U.K.

⁵  Includes a fund which holds real estate properties in the U.K.

For securities that are quoted in active markets, the trustee/custodian determines fair value by applying securities’ prices obtained from its pricing vendors. For commingled funds that are not actively traded, the trustee applies pricing information provided by investment management firms to the unit quantities of such funds. Investment management firms employ their own pricing vendors to value the securities underlying each commingled fund. Underlying securities that are not actively traded derive their prices from investment managers, which in turn, employ vendors that use pricing models (e.g. discounted cash flow, comparables). The domestic defined benefit plans have no investment in our stock, except through the S&P 500 commingled index fund.

The trustee obtains estimated prices from vendors for securities that are not easily quotable and they are categorized accordingly as Level 3. The following tables details further information our plan assets where we have used significant unobservable inputs (Level 3):

(in millions)
Beginning balance as of December 31, 2012	$	18
Capital distributions	(18		)
Ending balance as of December 31, 2013	$	—

Pension Trusts’ Asset Allocations

There are two pension trusts, one in the U.S. and one in the U.K.

• The U.S. pension trust had assets of $1.7 billion and $1.5 billion as of December 31, 2013 and 2012, respectively, and the target allocations in 2014 include 48% domestic equities, 12% international equities, and 40% debt securities and short-term investments.

• The U.K. pension trust had assets of $399 million and $318 million as of December 31, 2013 and 2012, respectively, and the target allocations in 2014 include 30% equities, 40% diversified growth funds, and 30% fixed income.

The pension assets are invested with the goal of producing a combination of capital growth, income, and a liability hedge. The mix of assets is established after consideration of the long-term performance and risk characteristics of asset classes. Investments are selected based on their potential to enhance returns, preserve capital, and reduce overall volatility. Holdings are diversified within each asset class. The portfolios employ a mix of index and actively managed equity strategies by market capitalization, style, geographic regions, and economic sectors. The fixed income strategies include U.S. long duration securities, opportunistic fixed income securities, and U.K. debt instruments. The short-term portfolio, whose primary goal is capital preservation for liquidity purposes, is composed of government and government-agency securities, un-invested cash, receivables, and payables. The portfolios do not employ any financial leverage.

U.S. Defined Contribution Plans

Assets of the defined contribution plans in the U.S. consist primarily of investment options which include actively managed equity, indexed equity, actively managed equity/bond funds, McGraw Hill Financial common stock, stable value, and money market strategies. There is also a self-directed mutual fund investment option. The plans purchased 261,672 and sold 1,182,318 shares of McGraw Hill Financial common stock in 2013 and purchased 620,455 and sold 869,199 shares of McGraw Hill Financial common stock in 2012. The plans held approximately 2.2 million shares of McGraw Hill Financial common stock as of December 31, 2013 and 3.7 million shares as of December 31, 2012, with market values of $172 million and $200 million, respectively. The plans received dividends on McGraw Hill Financial common stock of $3 million during the year ended December 31, 2013 and $13 million during the year ended December 31, 2012.

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Stock-Based Compensation (Details) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Number of common shares reserved for issuance
Shares available for granting under the 2002 plan (in shares)	30.3	26.8
Options outstanding (in shares)	12.2	18.6
Total shares reserved for issuance (in shares)	42.5	45.4
Director Deferred Stock Ownership Plan [Member]
Number of common shares reserved for issuance
Total shares reserved for issuance (in shares)	0.2

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Taxes on Income

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Taxes on Income

Taxes on Income

Income before taxes on income resulted from domestic and foreign operations as follows:

(in millions)	Year Ended December 31,
	2013		2012		2011
Domestic operations	$	868	$	841	$	700
Foreign operations	478		289		300
Total continuing income before taxes	$	1,346	$	1,130	$	1,000

The provision/(benefit) for taxes on income consists of the following:

(in millions)	Year Ended December 31,
	2013			2012			2011
Federal:
Current	$	209		$	194		$	238
Deferred	51			74			(6		)
Total federal	260			268			232
Foreign:
Current	152			91			93
Deferred	(19		)	(9		)	13
Total foreign	133			82			106
State and local:
Current	40			40			36
Deferred	10			14			—
Total state and local	50			54			36
Total provision for taxes for continuing operations	443			404			374
Provision for discontinued operations	281			11			164
Total provision for taxes	$	724		$	415		$	538

A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate for financial reporting purposes is as follows:

	Year Ended December 31,
	2013		2012		2011
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes	2.8		3.6		2.4
Foreign operations	(3.7	)	(2.6	)	(3.0	)
S&P Dow Jones Indices LLC joint venture	(1.9	)	(1.1	)	—
Other, net	0.7		0.9		3.0
Effective income tax rate for continuing operations	32.9	%	35.8	%	37.4	%

The principal temporary differences between the accounting for income and expenses for financial reporting and income tax purposes are as follows:

(in millions)	December 31,
	2013			2012
Deferred tax assets:
Postretirement benefits	$	32		$	201
Employee compensation	72			123
Accrued expenses	142			105
Unearned revenue	55			60
Allowance for doubtful accounts	15			17
Loss carryforwards	28			25
Other	10			—
Total deferred tax assets	354			531
Deferred tax liabilities:
Goodwill and intangible assets 1	(379		)	(379		)
Fixed assets	(55		)	(54		)
Other	—			(1		)
Total deferred tax liabilities	(434		)	(434		)
Net deferred income tax (liability) asset before valuation allowance	(80		)	97
Valuation allowance	(5		)	(7		)
Net deferred income tax (liability) asset	$	(85	)	$	90
Reported as:
Current deferred tax assets	$	108		$	117
Current deferred tax liabilities	(10		)	(7		)
Non-current deferred tax assets	22			36
Non-current deferred tax liabilities	(205		)	(56		)
Net deferred income tax (liability) asset	$	(85	)	$	90

¹  See Note 2 – Acquisitions andDivestitures for further discussion regarding the impact related to the S&P Dow Jones Indices LLC.

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 that such deferred income tax assets will not be realized. The valuation allowance is primarily related to operating losses.

We have not recorded deferred income taxes applicable to undistributed earnings of foreign subsidiaries that are indefinitely reinvested in foreign operations. Undistributed earnings that are indefinitely reinvested in foreign operations amounted to $930 million at December 31, 2013. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable.

We made net income tax payments for continuing and discontinued operations totaling $787 million in 2013, $243 million in 2012, and $452 million in 2011. As of December 31, 2013, we had net operating loss carryforwards of $165 million, some of which will expire over varying periods.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in millions)	Years ended December 31,
	2013			2012			2011
Balance at beginning of year	$	74		$	58		$	53
Additions based on tax positions related to the current year	27			14			12
Additions for tax positions of prior years	10			3			3
Reduction for tax positions of prior years	(9		)	(1		)	(10		)
Reduction for settlements	(20		)	—			—
Balance at end of year	$	82		$	74		$	58

The total amount of federal, state and local, and foreign unrecognized tax benefits as of December 31, 2013 and 2012 was $82 million and $74 million, respectively, exclusive of interest and penalties. The increase of $28 million in 2013 (excluding settlements) is the amount of unrecognized tax benefits that unfavorably impacted tax expense for continuing and discontinued operations. The unfavorable impact to the tax provision was partially offset by the resolution of tax audits in multiple jurisdictions.

We recognize accrued interest and penalties related to unrecognized tax benefits in interest expense and operating-related expense, respectively. In addition to the unrecognized tax benefits, as of December 31, 2013 and 2012, we had $19 million and $14 million, respectively, of accrued interest and penalties associated with uncertain tax positions.

During 2013, we made a U.S. federal income tax payment in settlement of an issue related to tax years 2007 through 2010 and also effectively completed the audit for 2011. However, even though we have effectively completed the U.S. federal tax audit for 2011, it remained open pending an unresolved issue. Also during 2013, we completed various state and foreign tax audits and, with few exceptions, we are no longer subject to federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before 2005. During 2011 and 2012, we completed various state and foreign tax audits. The impact to tax expense in 2013, 2012 and 2011 was not material.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions, and we are routinely under audit by many different tax authorities. We believe that our accrual for tax liabilities is adequate for all open audit years based on an assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. It is possible that tax examinations will be settled prior to December 31, 2014. If any of these tax audit settlements do occur within that period, we would make any necessary adjustments to the accrual for unrecognized tax benefits. Until formal resolutions are reached between us and the tax authorities, the determination of a possible audit settlement range with respect to the impact on unrecognized tax benefits is not practicable. On the basis of present information, it is our opinion that any assessments resulting from the current audits will not have a material effect on our consolidated financial statements.

Although the timing of income tax audit resolution and negotiations with taxing authorities are highly uncertain, we do not anticipate a significant change to the total amount of unrecognized income tax benefits within the next twelve months.

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Debt

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Debt

Debt

A summary of short-term and long-term debt outstanding is as follows:

(in millions)	December 31,
	2013		2012
5.9% Senior Notes, due 2017 1	$	400	$	400
6.55% Senior Notes, due 2037 2	399		399
Commercial paper	—		457
Total debt	799		1,256
Less: short-term debt including current maturities	—		457
Long-term debt	$	799	$	799

¹  Interest payments are due semiannually on April 15 and October 15, and as of December 31, 2013, the unamortized debt discount is less than $1 million.

²  Interest payments are due semiannually on May 15 and November 15, and as of December 31, 2013, the unamortized debt discount is approximately $1 million.

Annual long-term debt maturities are scheduled as follows based on book values as of December 31, 2013: no amounts due from 2014 – 2016, approximately $400 million due in 2017 and approximately $399 million due thereafter.

Currently, we have the ability to borrow a total of $1.0 billion through our commercial paper program, which is supported by our credit facility described below. As of December 31, 2013, there were no commercial paper borrowings outstanding. In connection with the December 2012 special dividend in the amount of $2.50 per share on our common stock, we utilized our commercial paper program and as a result, commercial paper borrowings outstanding as of December 31, 2012 totaled $457 million with an average interest rate and term of 0.48% and 28 days.

On June 19, 2013, we entered into a $1.0 billionfour-year credit agreement (our “credit facility”) that will terminate on June 19, 2017. This credit facility replaced our $1.2 billionthree-year credit facility that was scheduled to terminate on July 30, 2013. The previous credit facility was canceled immediately after the new credit facility became effective. There were no outstanding borrowings under the previous credit facility when it was replaced.

We pay a commitment fee of 20 to 45 basis points for our credit facility, depending on our indebtedness to cash flow ratio, whether or not amounts have been borrowed and currently pay a commitment fee of 25 basis points. The interest rate on borrowings under our credit facility is, at our option, calculated using rates that are primarily based on either the prevailing London Inter-Bank Offer Rate, the prime rate determined by the administrative agent or the Federal funds rate. For certain borrowings under this credit facility there is also a spread based on our indebtness to cash flow ratio added to the applicable rate.

Our credit facility contains certain covenants. The only financial covenant requires that our indebtedness to cash flow ratio, as defined in our credit facility, is not greater than 3.25 to 1, and this covenant has never been exceeded.

On February 7, 2013, Fitch Ratings downgraded our credit rating to BBB+ from A- and placed our ratings on Rating Watch Negative. There has been no change to our short-term / commercial paper rating of F2 from Fitch Ratings. On February 14, 2013, Moody's Investors Service downgraded our credit rating from A3 to Baa2 with negative outlook. In March 2013, upon the completion of the sale of McGraw-Hill Education, Moody's withdrew our credit ratings (due to Moody's own business reasons).

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

We issue stock-based incentive awards to our eligible employees and Directors under the 2002 Employee Stock Incentive Plan and a Director Deferred Stock Ownership Plan.

• 2002 Employee Stock Incentive Plan (the “2002 Plan”) – The 2002 Plan permits the granting of nonqualified stock options, stock appreciation rights, performance stock, restricted stock and other stock-based awards.

• 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.

The number of common shares reserved for issuance are as follows:

(in millions)	December 31,
	2013	2012
Shares available for granting under the 2002 Plan	30.3	26.8
Options outstanding	12.2	18.6
Total shares reserved for issuance 1	42.5	45.4

¹ Shares reserved for issuance under the Director Deferred Stock Ownership Plan are not included in the total, but are less than 0.2 million.

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, see Note 8 – Equity for further discussion.

Common shares reserved for issuance in 2012 was impacted by the special dividend announced in the fourth quarter of 2012. In conjunction with the special dividend, the Compensation and Leadership Development Committee of the Board of Directors decided that employees who hold stock options, performance share units and restricted unit awards under the employee stock ownership plans should receive the economic benefit of the special dividend. Therefore, employees' equity awards have been adjusted to maintain the value of the award prior to the special dividend.

Stock-based compensation expense and the corresponding tax benefit are as follows:

(in millions)	Year Ended December 31,
	2013		2012		2011
Stock option expense	$	13	$	10	$	19
Restricted stock and unit awards expense	86		83		58
Total stock-based compensation expense	$	99	$	93	$	77
Tax benefit	$	38	$	36	$	29

Stock-based compensation of $7 million, $16 million and $19 million is recorded in discontinued operations for the years ended December 31, 2013, 2012 and 2011, respectively, as as result of the sale of MHE described further in Note 2 – Acquisitions and Divestitures. Additionally, stock-based compensation expense for the years ended December 31, 2012 and 2011 include amounts related to employees at the Company's corporate offices who transferred to MHE of $5 million and $4 million, respectively.

Stock Options

Stock options may not be granted at a price less than the fair market value of our common stock on the date of grant. Stock options granted in 2013 vest over a three years service period in equal annual installments and have a maximum term of 10 years. Stock option compensation costs for 2013 grants are recognized from the date of grant, utilizing a three-year graded vesting method. Under this method, one third of the costs are ratably recognized over the first twelve months, one third of the costs are ratably recognized over a twenty-four month period starting from the date of grant with the remaining costs ratably recognized over a thirty-six month period starting from the date of grant.

Stock options granted in 2011 and prior years vest over a two years service period in equal annual installments and have a maximum term of 10 years. Stock option compensation costs for 2011 and prior year grants are recognized from the date of grant, utilizing a two-year graded vesting method. Under this method, fifty percent of the costs are ratably recognized over the first twelve months with the remaining costs ratably recognized over a twenty-four month period starting from the date of grant.

We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted (in 2012, stock options were not granted as part of employees' total stock-based incentive awards):

	Year Ended December 31,
	2013		2012	2011
Risk-free average interest rate	0.1 - 2.9%		N/A	0.2 - 3.5%
Dividend yield	2.09 - 2.07%		N/A	2.5 - 3.0%
Volatility	29 - 45%		N/A	21 - 51%
Expected life (years)	6.1 - 6.2		N/A	6.1 - 6.2
Weighted-average grant-date fair value per option	$	14.46	N/A	$	10.61

Because lattice-based option-pricing models incorporate ranges of assumptions, those ranges are disclosed. These assumptions are based on multiple factors, including historical exercise patterns, post-vesting termination rates, expected future exercise patterns and the expected volatility of our stock price. The risk-free interest rate is the imputed forward rate based on the U.S. Treasury yield at the date of grant. We use the historical volatility of our stock price over the expected term of the options to estimate the expected volatility. The expected term of options granted is derived from the output of the lattice model and represents the period of time that options granted are expected to be outstanding.

Stock option activity is as follows:

(in millions, except per award amounts)	Shares			Weighted average exercise price		Weighted-average remaining years of contractual term	Aggregate intrinsic value
Options outstanding as of December 31, 2012	18.6			$	39.58
Granted	1.4		1	$	51.69
Exercised	(7.4	)		$	37.78
Canceled, forfeited and expired	(0.4	)		$	50.33
Options outstanding as of December 31, 2013	12.2			$	41.78	4.3	$	445
Options exercisable as of December 31, 2013	10.9			$	40.55	3.7	$	409

(in millions, except per award amounts)	Shares			Weighted-average grant-date fair value
Nonvested options outstanding as of December 31, 2012	1.1			$	10.61
Granted	1.4			$	14.46
Vested	(1.2		)	$	10.61
Nonvested options outstanding as of December 31, 2013	1.3			$	14.46
Total unrecognized compensation expense related to nonvested options	$	9
Weighted-average years to be recognized over	2.3

The total fair value of our stock options that vested during the years ended December 31, 2013, 2012 and 2011 was $12 million, $21 million and $18 million, respectively. In 2012, stock options were not granted as part of employees' total stock-based incentive awards which contributed to the decrease in the fair value of our stock options that vested during the year ended December 31, 2013.

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 (“intrinsic value”). For the years ended December 31, 2013, 2012 and 2011, $43 million, $42 million and $20 million, respectively, of excess tax benefits from stock options exercised are reported in our cash flows used for financing activities.

Information regarding our stock option exercises is as follows:

(in millions)	Year Ended December 31,
	2013		2012		2011
Net cash proceeds from the exercise of stock options	$	258	$	299	$	139
Total intrinsic value of stock option exercises	$	158	$	120	$	41
Income tax benefit realized from stock option exercises	$	61	$	47	$	16

Restricted Stock and Unit Awards

Restricted stock and unit awards (performance and non-performance) have been granted under the 2002 Plan. Restricted stock and unit performance awards will vest only if we achieve certain financial goals over the performance period. Restricted stock non-performance awards have various vesting periods (generally three years), with vesting beginning on the first anniversary of the awards. Recipients of restricted stock and unit awards are not required to provide consideration to us other than rendering service.

The stock-based compensation expense for restricted stock and unit awards is determined based on the market price of our stock at the grant date of the award applied to the total number of awards that are anticipated to fully vest. For restricted stock and unit performance awards, adjustments are made to expense dependent upon financial goals achieved.

Restricted stock and unit activity for performance and non-performance awards is as follows:

(in millions, except per award amounts)	Shares			Weighted-average grant-date fair value
Nonvested shares as of December 31, 2012	3.4			$	40.49
Granted	3.0			$	44.22
Vested	(3.1		)	$	38.93
Forfeited	(0.2		)	$	46.28
Nonvested shares as of December 31, 2013	3.1			$	47.89
Total unrecognized compensation expense related to nonvested awards	$	84
Weighted-average years to be recognized over	1.6

	Year Ended December 31,
	2013		2012		2011
Weighted-average grant-date fair value per award	$	44.22	$	44.38	$	37.80
Total fair value of restricted stock and unit awards vested	$	119	$	90	$	1
Tax benefit relating to restricted stock activity	$	33	$	32	$	22

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Stock Based Compensation (Details 4) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Tax benefit relating to restricted stock activity	$ 38	$ 36	$ 29
Restricted Stock Activity [Member]
Restricted stock and unit activity
Nonvested shares, Beginning Balance	3.4
Shares, Granted	3.0
Shares, Vested	(3.1)
Shares, Forfeited	(0.2)
Nonvested shares, Ending Balance	3.1	3.4
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Weighted-average grant-date fair value, Beginning balance	$ 40.49
Weighted-average grant-date fair value, Granted	$ 44.22	$ 44.38	$ 37.80
Weighted-average grant-date fair value, Vested	$ 38.93
Weighted-average grant-date fair value, Forfeited	$ 46.28
Weighted-average grant-date fair value, Ending balance	$ 47.89	$ 40.49
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Total unrecognized compensation expense related to nonvested options	84
Weighted-average years to be recognized over	1 year 7 months 6 days
Total fair value of restricted stock and unit awards vested	119	90	1
Tax benefit relating to restricted stock activity	$ 33	$ 32	$ 22

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Equity (Details) (USD $)	0 Months Ended			3 Months Ended	6 Months Ended	12 Months Ended				0 Months Ended			1 Months Ended	3 Months Ended	12 Months Ended							12 Months Ended			1 Months Ended				3 Months Ended
	Jul. 25, 2013	Apr. 02, 2013	Mar. 25, 2013	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012	Jan. 29, 2014 Subsequent Event [Member]	Dec. 31, 2013 2013 Repurchase Program [Member]	Dec. 04, 2013 2013 Repurchase Program [Member]	Dec. 31, 2011 2011 Repurchase Program [Member] agreements	Dec. 31, 2013 2011 Repurchase Program [Member]	Dec. 31, 2013 2011 Repurchase Program [Member]	Dec. 31, 2012 2011 Repurchase Program [Member]	Dec. 31, 2011 2011 Repurchase Program [Member] agreements	Dec. 31, 2013 2007 Repurchase Program [Member]	Dec. 31, 2012 2007 Repurchase Program [Member]	Dec. 31, 2011 2007 Repurchase Program [Member]	Dec. 31, 2007 2007 Repurchase Program [Member]	Dec. 31, 2013 Stock Repurchases [Member]	Dec. 31, 2012 Stock Repurchases [Member]	Dec. 31, 2011 Stock Repurchases [Member]	Feb. 28, 2012 Uncollared ASR Agreement [Member]	Dec. 31, 2011 Uncollared ASR Agreement [Member]	Apr. 30, 2012 Capped ASR Agreement [Member]	Dec. 31, 2011 Capped ASR Agreement [Member]	Dec. 31, 2013 Pro Forma [Member] 2011 Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury Stock, Value, Acquired, Cost Method						$ 989,000,000	$ 298,000,000	$ 1,500,000,000														$ 989,000,000	$ 295,000,000	$ 1,500,000,000
Dividend history
Quarterly dividend rate (in usd per share)						$ 0.28	$ 0.255	$ 0.250		$ 0.30
Annualized dividend rate (in usd per share)						$ 1.12	$ 1.02	$ 1.00
Special dividend (in usd per share)						$ 0	$ 2.50	$ 0
Dividends paid						308,000,000	984,000,000	296,000,000
Share repurchases
Total number of shares purchased (shares)															16,900,000	6,800,000	26,300,000	0	0	8,400,000
Average price paid per share (in usd per share)						$ 58.52	$ 50.35	$ 40.48																					$ 58.36
Total cash utilized					6,145,000,000	6,746,000,000	6,145,000,000
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Balance as of December 31, 2012					810,000,000	810,000,000	810,000,000		810,000,000
Net income attributable to noncontrolling interest					73,000,000
Distributions to noncontrolling interest					(62,000,000)	(22,000,000)	(223,000,000)	(7,000,000)
Redemption value adjustment					(11,000,000)
Balance as of December 31, 2013					810,000,000	810,000,000	810,000,000		810,000,000
Equity (Textual) [Abstract]
Preferred stock authorized (shares)						2,000,000
Par value of Preferred stock (in usd per share)						$ 1
Quarterly dividend rate (in usd per share)						$ 0.28	$ 0.255	$ 0.250		$ 0.30
Stock repurchase program number of shares authorized to be repurchased (shares)												50,000,000	50,000,000				50,000,000				45,000,000
Maximum number of shares authorized for repurchase under stock repurchase plan as percentage of outstanding common stock												18.00%	17.00%				17.00%
Remaining shares available under repurchase program											50,000,000			0	0			0
Number of agreements entered													2				2
Authorized amount			500,000,000										500,000,000													250,000,000		250,000,000
Shares repurchased (in shares)	700,000	1,400,000		7,200,000		9,300,000								100,000											800,000	5,000,000	100,000	5,000,000
Volume weighted-average share price (in dollars per share)	$ 53.7995
Shares repurchased value														$ 10,000,000
Average price paid per share (in usd per share)						$ 58.52	$ 50.35	$ 40.48																					$ 58.36
Interest in joint venture minimum percentage						20.00%
Change in control period						15 days

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Stock-Based Compensation (Details 3) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Net cash proceeds from the exercise of stock options	$ 258	$ 299	$ 139
Total intrinsic value of option exercises	158	120	41
Income tax benefit realized from stock option exercises	$ 61	$ 47	$ 16

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Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment information

Segment information for the years ended December 31 is as follows:

(in millions)	Revenue									Operating Profit
	2013			2012			2011			2013			2012			2011
S&P Ratings	$	2,274		$	2,034		$	1,767		$	1,000		$	849		$	720
S&P Capital IQ	1,170			1,124			1,031			211			208			214
S&P DJ Indices	493			388			323			278			212			189
C&C	1,014			973			896			311			248			180
Intersegment elimination	(76		)	(69		)	(63		)	—			—			—
Total operating segments	4,875			4,450			3,954			1,800			1,517			1,303
Unallocated expense	—			—			—			(395		)	(306		)	(226		)
Total	$	4,875		$	4,450		$	3,954		$	1,405		$	1,211		$	1,077

(in millions)	Depreciation & Amortization						Capital Expenditures
	2013		2012		2011		2013		2012		2011
S&P Ratings	$	45	$	43	$	40	$	40	$	43	$	40
S&P Capital IQ	49		50		43		39		22		21
S&P DJ Indices	10		8		3		4		2		2
C&C	22		23		23		17		17		14
Total operating segments	126		124		109		100		84		77
Corporate	11		17		17		17		13		15
Total	$	137	$	141	$	126	$	117	$	97	$	92

Segment information as of December 31 is as follows:

(in millions)	Total Assets
	2013		2012
S&P Ratings	$	630	$	726
S&P Capital IQ	1,054		1,123
S&P DJ Indices	1,160		1,133
C&C	943		1,000
Total operating segments	3,787		3,982
Corporate 1	2,213		1,130
Assets held for sale	61		1,940
Total	$	6,061	$	7,052

¹  Corporate assets consist principally of cash and equivalents, assets for pension benefits, deferred income taxes and leasehold improvements related to subleased areas.

Schedule of revenue and long-lived assets by geographic region

The following provides revenue and long-lived assets by geographic region:

(in millions)	Revenue						Long-lived Assets
	Years ended December 31,						December 31,
	2013		2012		2011		2013		2012
United States	$	2,892	$	2,684	$	2,373	$	2,209	$	2,376
European region	1,227		1,067		951		432		441
Asia	483		454		423		59		70
Rest of the world	273		245		207		54		57
Total	$	4,875	$	4,450	$	3,954	$	2,754	$	2,944

	Revenue						Long-lived Assets
	Years ended December 31,						December 31,
	2013		2012		2011		2013		2012
United States	59	%	60	%	60	%	80	%	81	%
European region	25		24		24		16		15
Asia	10		10		11		2		2
Rest of the world	6		6		5		2		2
Total	100	%	100	%	100	%	100	%	100	%

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Commercial Paper Program (Details) (USD $)	0 Months Ended	1 Months Ended	12 Months Ended
	Jun. 18, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Jun. 19, 2013
Line of Credit Facility [Line Items]
Size of total commercial paper program						$ 1,000,000,000.0
Commitment fee minimum percentage			0.20%
Commitment fee maximum percentage			0.45%
Special dividend (in dollars per share)		$ 2.50	$ 1.12	$ 1.02	$ 1.00
Commercial Paper		457,000,000	0	457,000,000
Facility expiration period	4 years
Indebtedness to cash flow			3.25
Previous Credit Facility [Member]
Line of Credit Facility [Line Items]
Size of total commercial paper program	$ 1,200,000,000.0
Facility expiration period	3 years
Commercial Paper [Member]
Line of Credit Facility [Line Items]
Commercial paper interest rate		0.48%		0.48%
Commercial paper, average term				28 days

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Rental Expense and Lease Obligations

We are committed under lease arrangements covering property, computer systems and office equipment. Leasehold improvements are amortized on a straight-line basis 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 and the associated fees are recognized on a straight-line basis over the minimum lease period.

Rental expense for property and equipment under all operating lease agreements is as follows:

(in millions)	Years ended December 31,
	2013			2012			2011
Gross rental expense	$	207		$	164		$	158
Less: sublease revenue	(29		)	(4		)	(2		)
Less: Rock-McGraw rent credit	(20		)	(19		)	(18		)
Net rental expense	$	158		$	141		$	138

In December 2003, we sold our 45% equity investment in Rock-McGraw, Inc., which owns our headquarters building in New York City, and remained an anchor tenant in our corporate headquarters building in New York City by concurrently leasing back space from the buyer through 2020. As of December 31, 2013, we leased approximately 17% of the building space. Proceeds from the disposition were $382 million and the sale resulted in a pre-tax gain, net of transaction costs, of $131 million ($58 million after-tax) upon disposition. As a result of the amount of building space we retained through our leaseback, a pre-tax gain of $212 million ($126 million after-tax) was deferred upon the disposition in 2003.

In December of 2013, we entered into an arrangement with the buyer to shorten the lease to December 2015 in exchange for approximately $60 million which was recorded as a reduction to the unrecognized deferred gain from the sale. The remaining gain is being amortized over the remaining lease term as a reduction in rent expense. As of December 31, 2013, the remaining deferred gain is $45 million. The amount of the gain amortized during the year ended December 31, 2012 was $15 million. Interest expense associated with this operating lease for the year ended December 31, 2013 was $5 million.

Cash amounts for future minimum rental commitments, including rent payments on the sale-leaseback, under existing non-cancelable leases with a remaining term of more than one year, along with minimum sublease rental income to be received under non-cancelable subleases are shown in the following table.

(in millions)	Rent commitment		Sublease income			Net rent
2014	$	161	$	(14	)	$	147
2015	155		(14		)	141
2016	123		(13		)	110
2017	99		(13		)	86
2018	90		(13		)	77
2019 and beyond	238		(16		)	222
Total	$	866	$	(83	)	$	783

Related Party Agreements

In June of 2012, we entered into a new license agreement (the "License Agreement") with the holder of S&P Dow Jones Indices LLC noncontrolling interest, CME Group, which replaced the 2005 license agreement between S&P DJ Indices and CME Group. Under the terms of the License Agreement, S&P Dow Jones Indices LLC receives a share of the profits from the trading and clearing of CME Group's equity index products. During the years ended December 31, 2013 and 2012, S&P Dow Jones Indices LLC earned $46 million and $21 million of revenue under the terms of the License Agreement, respectively. The entire amount of this revenue is included in our consolidated statement of income, and the portion related to the 27% noncontrolling interest is removed in the net income attributable to noncontrolling interests.

Legal & Regulatory Matters

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.

S&P Ratings

In connection with a previously disclosed investigation by the Civil Division of the Department of Justice ("DOJ") of S&P LLC, the DOJ filed a civil complaint in the United States District Court for the Central District of California on February 4, 2013 against the Company and S&P LLC alleging violations of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 regarding Standard & Poor's Ratings Services ratings in 2004-2007 of certain U.S. collateralized debt obligations and Standard & Poor's Ratings Services models for certain structured finance products. The Company and S&P LLC filed a motion to dismiss the complaint on April 22, 2013. The Court issued an order denying the motion to dismiss on July 16, 2013. Discovery in this case is ongoing. During the course of discovery, DOJ has identified the U.S. collateralized debt obligations and residential mortgage backed securities rated by Standard & Poor's Ratings Services between 2004-2007, additional to those identified in the complaint, that could provide the basis for whatever proof it seeks to introduce at trial and at any penalty phase of the case.

In connection with the numerous state-court actions that have been brought against the Company and S&P LLC by the attorneys general of various states and the District of Columbia, the Company and S&P LLC have removed most of the actions to federal court and filed a motion before the United States Judicial Panel on Multidistrict Litigation ("JPML") to consolidate and transfer those removed actions to one federal court for all pretrial proceedings. On June 6, 2013, the JPML granted the Company and S&P LLC's motion with respect to the state actions then before it and ordered those actions be consolidated before the United States District Court for the Southern District of New York. The Company expects that any similar actions subsequently filed by other state attorneys general will be similarly consolidated in the Southern District of New York upon the Company’s request. On October 4, 2013, the Court heard argument on motions by the states to have the cases remanded to state court.

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 & Poor's”) on September 29, 2005 and October 7, 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 had brought numerous other lawsuits in both Italy and the United States against entities and individuals who had dealings with Parmalat. In this suit, Parmalat claims that Standard & Poor's, which had issued investment grade ratings on Parmalat until shortly before Parmalat's collapse in December 2003, breached its duty to issue an independent and professional rating and negligently and knowingly assigned inflated ratings in order to retain Parmalat's business. Alleging joint and several liability, Parmalat 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 & Poor's alleged complicity in aggravating Parmalat's financial difficulties and/or for having contributed in bringing about Parmalat's indebtedness towards its bondholders, and legal fees. On June 29, 2011, the Court issued its final decision dismissing in its entirety Parmalat's main damages claim which was based on the value of the bonds issued. The Court ordered Standard & Poor's to pay Parmalat the sum of approximately euros 784,000 (approximately $1.1 million), representing the amount of rating fees paid to Standard & Poor's by Parmalat, plus interest from the date of service of the Writ of Summons. The Court also ordered Standard & Poor's to reimburse Parmalat for euros 47,390 (less than $0.1 million) in trial costs and for its share of fees paid to Court-appointed experts, amounting to euros 67,797 (also less than $0.1 million). On September 29, 2012, Parmalat submitted a brief to the Court of Appeals of Milan appealing the judgment issued by the Tribunal of Milan and, on November 16, 2012, requested payment of the judgment in the amount of euros 1,103,793. Standard & Poor’s paid the judgment on December 3, 2012. On May 9, 2013, Standard & Poor’s filed its response to the appeal, including its cross-appeal. Hearings in the appeal took place on May 29, 2013 and October 9, 2013. The parties’ final briefs were submitted in December 2013.

In a separate proceeding, the prosecutor's office in Parma, Italy is conducting an investigation into the bankruptcy of Parmalat. In June 2006, the prosecutor's office issued a Note of Completion of an Investigation (“Note of Completion”) concerning allegations, based on Standard & Poor's investment grade ratings of Parmalat, that individual Standard & Poor's 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 & Poor's rating analysts. While not a formal charge, the Note of Completion indicates the prosecutor's 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 July 7, 2006, a defense brief was filed with the Parma prosecutor's office on behalf of the rating analysts.

On August 28, 2007, a putative shareholder class action titled Reese v. Bahash was filed in the District Court for the District of Columbia, and was subsequently transferred to the Southern District of New York. The Company and its CEO and former CFO were named as defendants in the suit, which alleged claims under the federal securities laws in connection with alleged misrepresentations and omissions made by the defendants relating to the Company's earnings and S&P's business practices. On April 2, 2012, the District Court entered judgment granting the Defendants' motion to dismiss, and dismissing all claims asserted against the Defendants in their entirety and, on December 20, 2012, the United States Court of Appeals for the Second Circuit affirmed the dismissal in its entirety. Plaintiff sought to be relieved from the judgment dismissing the case and for permission to file an amended complaint. The Court denied these requests in their entirety on September 24, 2013. Plaintiff is pursuing an appeal from the Court’s decision.

The Company and its Standard & Poor's Financial Services LLC subsidiary ("S&P LLC"), together with other credit rating agencies, have been named in numerous lawsuits in U.S. State and Federal Courts, as well as in foreign jurisdictions, relating to the ratings activity of Standard & Poor's Ratings Services brought by alleged purchasers and issuers of rated securities. The Company and S&P LLC have also received numerous subpoenas and other government inquiries concerning the rating activity of Standard & Poor's Ratings Services in these areas and continue to respond to all such requests. Additional actions, investigations or proceedings may be initiated from time to time in the future.

On September 22, 2011 the Company received a “Wells Notice” from the staff of the U.S. Securities and Exchange Commission (the “Commission”) stating that the staff is considering recommending that the Commission institute a civil injunctive action against Standard & Poor's Ratings Services alleging violations of federal securities laws with respect to Standard & Poor's Ratings Services ratings for a particular 2007 offering of collateralized debt obligations, known as “Delphinus CDO 2007-1”. The Wells Notice is neither a formal allegation nor a finding of wrongdoing. It allows its recipients the opportunity to provide their perspective and to address the issues raised by the staff before any decision is made by the Commission on whether to authorize the commencement of an enforcement proceeding against its recipients. The Company has responded to the staff presenting its position on the issues raised and why the Commission should not commence enforcement proceedings.

On January 15, 2014 S&P received notification of a potential claim by the Prosecutor General of the Corte dei Conti, an Italian administrative court, with respect to whether S&P’s downgrading of Italian sovereign debt in May 2011 wrongfully damaged Italy’s public finances and international reputation and whether S&P should pay compensation to Italy for the costs of Italian budget adjustments and for ancillary damages in an amount “not lower than Euro 234 billion.”

The Company believes that the claims in the proceedings described above have no basis and they will be vigorously defended by the Company and/or the subsidiaries involved. In view of the inherent difficulty of predicting the outcome of legal matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories, involve a large number of parties or are in early stages of discovery, we cannot state with confidence what the eventual outcome of these pending matters will be, what the timing of the ultimate resolution of these matters will be or what the eventual loss, fines, penalties or impact related to each pending matter may be. We believe, based on our current knowledge, that the outcome of the legal actions, proceedings and investigations currently pending should not have a material, adverse effect on our consolidated financial condition.

Additionally, in April 2013 we settled certain subprime litigation cases. Included in selling and general expenses in our consolidated statement of income for the year ended December 31, 2013 is a pre-tax amount of approximately $77 million for these settlements. These cases were dismissed under the terms of the settlements.

S&P Capital IQ

On November 17, 2009, the European Commission, Directorate-General for Competition (“EC”) sent a Statement of Objections (“SO”) to the Company outlining the EC’s preliminary view that Standard & Poor’s CUSIP Service Bureau (an S&P Rating’s brand that is part of S&P Capital IQ) was abusing its position as the sole-appointed National Numbering Agency for U.S. securities by requiring financial institutions and Information Service Providers to pay licensing fees for the use of International Securities Identification Numbers. As set forth in the SO, the EC’s preliminary view was that this behavior amounted to unfair pricing and infringed European competition law. The Company believed these preliminary views were erroneous but in order to resolve the investigation, proposed a set of commitments to the EC. Following market testing of the commitments, further discussions between the parties and some limited modifications to the commitments, the EC on November 15, 2011 accepted and made those commitments legally binding and ended its investigation. Pursuant to the commitments, CUSIP Global Services has created a new data feed service of US International Securities Identification Numbers tailored specifically to the institutions for their use within the European Economic Area.

S&P DJ Indices

On July 17, 2013, International Organization of Securities Commissions ("IOSCO") published its “Principles for Financial Benchmarks.”  S&P DJ Indices has begun voluntary implementation of the principles. As a part of that process S&P DJ Indices is taking into consideration the ESMA-EBA Principles for Benchmark-Setting Processes in the EU published in June 2013 and the Index Industry Association’s Best Practices issued in July 2013. S&P DJ Indices does not believe that aligning its operations to these principles and/or practices will have a significant negative impact on its ongoing business operations.

C&C

On October 8, 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 Construction Data asserted eleven claims under various state and federal laws against the Company relating to alleged misappropriation and unfair competition by McGraw-Hill Construction and seeking an unspecified amount of damages, plus attorneys' fees and costs. In response to the Company's motion to dismiss five of the eleven claims in the Reed action, Plaintiff filed an Amended Complaint on December 10, 2009, among other things adding an allegation that McGraw-Hill Construction misappropriated Plaintiff's confidential and trade secret information regarding specific construction projects. The Company filed a renewed motion to dismiss five of the eleven claims in the Amended Complaint on January 22, 2010. On September 14, 2010, the Court granted the Company's motion to dismiss three of the five claims, including claims that alleged violations by the Company of the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to violate RICO. On May 31, 2011, the Court granted Plaintiff's motion to file a Second Amended Complaint that, among other things, added a false advertising claim under the Lanham Act, including a demand for treble damages and attorneys' fees. The Second Amended Complaint also contains allegations purporting to further support Reed's existing tort and antitrust claims. On June 3, 2011, the Court granted the Company's motion to file a counterclaim against Reed alleging, among other things, that Reed misappropriated the Company's trade secrets and engaged in unfair competition as a result of Reed's recruitment of former employees of the Company and use of information about the Company's customers obtained from the former employees to solicit those customers. The parties have completed discovery and are in the summary judgment phase.

Our commodities business is subject to the potential for increased regulation in the U.S. and abroad. On October 5, 2012, the IOSCO issued its final report to the G-20, including Principles for Oil Price Reporting Agencies ("PRA"), which sets out principles IOSCO states are intended to enhance the reliability of oil price assessments that are referenced in derivative contracts subject to regulation by IOSCO members. Platts completed the assurance review called for by the IOSCO Principles for Oil Price Reporting Agencies and does not believe the Principles will have a significant negative impact on its ongoing business operations.

In July of 2013 Platts reaffirmed its commitment to aligning its operations to the IOSCO Principles for Oil Price Reporting Agencies and to applying those principles to its price reporting in the other commodity markets in which it publishes price assessments that underlie financial derivatives contracts. The announcement followed IOSCO's publication on July 17, 2013 of its “Principles for Financial Benchmarks,” which stated that it “expects the oil PRAs to continue to implement and comply with the PRA principles.” Platts does not believe that application of the Principles in other commodity markets will have a significant negative impact on its ongoing business operations.

On May 14, 2013, representatives from the European Commission (DG Competition, the EC's antitrust office) commenced an unannounced inspection of Platts' offices at Canary Wharf in London which lasted until May 19, 2013 in conjunction with the potential anticompetitive conduct (in particular, in the crude oil, refined oil products and biofuels markets) relating to Platts' Market On Close price assessment process. No allegations have been made against Platts at this time. There have also been several civil actions filed in the U.S. relating to potential anticompetitive behavior by market participants relating to the Platts price assessment process, none of which have named Platts as a defendant.

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The change in the carrying amount of goodwill by segment is shown below:

(in millions)	S&P Ratings			S&P Capital IQ			S&P DJ Indices			C&C			Total
Balance as of December 31, 2011	$	197		$	238		$	223		$	446		$	1,104
Acquisitions	29			164			111			21			325
Transfers/reorganizations	(95		)	53			45			—			3
Other (primarily Fx)	(1		)	2			1			4			6
Balance as of December 31, 2012	130			457			380			471			1,438
Dispositions	—			(3		)	(4		)	(29		)	(36		)
Other (primarily Fx)	(5		)	15			—			—			10
Balance as of December 31, 2013	$	125		$	469		$	376		$	442		$	1,412

Other Intangible Assets

The following table summarizes our definite-lived intangible assets:

(in millions)
Cost	Databases and software			Content		Customer relationships		Tradenames			Other intangibles			Total
Balance as of December 31, 2011	$	109		$	139	$	115	$	45		$	62		$	470
Acquisitions	17			—		110		1			108			236
Other (primarily Fx)	—			—		—		(1		)	1			—
Balance as of December 31, 2012	126			139		225		45			171			706
Acquisitions	—			—		—		—			44			44
Dispositions	(9		)	—		—		—			(13		)	(22		)
Impairment 1	—			—		—		—			(26		)	(26		)
Other (primarily Fx)	(2		)	—		—		—			(6		)	(8		)
Balance as of December 31, 2013	$	115		$	139	$	225	$	45		$	170		$	694
Accumulated amortization
Balance as of December 31, 2011	$	70		$	17	$	43	$	27		$	50		$	207
Current year amortization	10			14		11		3			10			48
Other (primarily Fx)	—			—		1		—			3			4
Balance as of December 31, 2012	80			31		55		30			63			259
Current year amortization	9			14		11		2			15			51
Dispositions	(6		)	—		—		—			(9		)	(15		)
Other (Primarily Fx)	—			—		1		—			(1		)	—
Balance as of December 31, 2013	$	83		$	45	$	67	$	32		$	68		$	295
Net definite-lived intangibles:
December 31, 2012	$	46		$	108	$	170	$	15		$	108		$	447
December 31, 2013	$	32		$	94	$	158	$	13		$	102		$	399

¹  We incurred a $26 million non-cash impairment charge associated with an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

Amortization expense and projected amortization expense for intangible assets

Amortization expense for the years ended December 31, 2013, 2012 and 2011, and the projected amortization expense for intangible assets over the next 5 years for the years ended December 31, assuming no further acquisitions or dispositions, is as follows:

(in millions)	Amortization expense		Expected amortization expense
2011	$	33
2012	48
2013	51
2014			$	47
2015			45
2016			45
2017			42
2018			36

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Taxes on Income (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reconciliation of beginning and ending amount of unrecognized tax benefits
Balance at beginning of year	$ 74	$ 58	$ 53
Additions based on tax positions related to the current year	27	14	12
Additions for tax positions of prior years	10	3	3
Reduction for tax positions of prior years	(9)	(1)	(10)
Reduction for settlements	(20)	0	0
Balance at end of year	$ 82	$ 74	$ 58

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Acquisitions and Divestitures (Divestitures) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Components of income from discontinued operations
Revenue									$ 268	$ 2,062	$ 2,382
Expenses									310	2,287	2,035
Operating (loss) income									(42)	(225)	347
Interest expense (income), net									2	(2)	(3)
(Loss) income before taxes on (loss) income									(44)	(223)	350
(Benefit) provision for taxes on (loss) income									(18)	11	116
(Loss) income from discontinued operations, net of tax									(26)	(234)	234
Pre-tax gain on sale from discontinued operations									888	0	122
Provision for taxes on gain on sale									299	0	48
Gain on sale of discontinued operations, net of tax									589	0	74
Discontinued operations, net	(2)	(20)	4	581	(404)	165	40	(36)	563	(234)	308
Less: net (loss) income attributable to noncontrolling interests									(1)	5	4
Income (loss) from discontinued operations attributable to McGraw Hill Financial, Inc. common shareholders	(2)	(20)	4	582	(406)	162	39	(35)	564	(239)	304
Components of assets and liabilities classified as held for sale
Accounts receivable, net					333					333
Property and equipment, net					122					122
Goodwill					469					469
Other intangible assets, net					156					156
Inventories, net					235					235
Prepublication costs					304					304
Other assets					321					321
Assets held for sale					1,940					1,940
Accounts payable and accrued expenses					123					123
Unearned revenue					192					192
Other liabilities					349					349
Liabilities held for sale					$ 664					$ 664

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash and equivalents	$ 1,542	$ 760
Short-term investments	18	1
Accounts receivable, net of allowance for doubtful accounts: 2013 - $52; 2012 - $54	979	954
Deferred income taxes	108	117
Prepaid and other current assets	228	127
Assets held for sale	61	1,940
Total current assets	2,936	3,899
Property and equipment:
Buildings and leasehold improvements	436	439
Equipment and furniture	430	701
Total property and equipment	866	1,140
Less: accumulated depreciation	(617)	(772)
Property and equipment, net	249	368
Goodwill	1,412	1,438
Other intangible assets, net	1,033	1,081
Asset for pension benefits	261	98
Other non-current assets	170	168
Total assets	6,061	7,052
Current liabilities:
Accounts payable	219	249
Accrued compensation and contributions to retirement plans	427	453
Short-term debt	0	457
Income taxes currently payable	15	158
Unearned revenue	1,309	1,229
Other current liabilities	402	457
Liabilities held for sale	0	664
Total current liabilities	2,372	3,667
Long-term debt	799	799
Pension and other postretirement benefits	264	529
Deferred income taxes	205	56
Other non-current liabilities	267	351
Total liabilities	3,907	5,402
Redeemable noncontrolling interest	810	810
Commitments and contingencies (Note 12)
Equity:
Common stock, $1 par value: authorized - 600 million shares; issued - 412 million shares in 2013 and 2012	412	412
Additional paid-in capital	447	492
Retained income	7,384	6,525
Accumulated other comprehensive loss	(196)	(517)
Less: common stock in treasury - at cost: 2013 - 141 million shares; 2012 - 133 million shares	(6,746)	(6,145)
Total equity – controlling interests	1,301	767
Total equity – noncontrolling interests (including 2013 - $25 and 2012 - $25 attributable to discontinued operations)	43	73
Total equity	1,344	840
Total liabilities and equity	$ 6,061	$ 7,052

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Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Accounting Policies

Accounting Policies

Nature of operations

McGraw Hill Financial, Inc. (together with its consolidated subsidiaries, the “Company,” the “Registrant,” “we,” “us” or “our”) is a leading content and analytics provider serving the capital, commodities and commercial markets. The capital markets include asset managers, banks, exchanges, issuers and financial advisors; the commodities markets include producers, traders and intermediaries within energy, metals, and agriculture; and the commercial markets include professionals and corporate executives within automotive, construction and marketing / research information services.

Our operations consist of four reportable segments: Standard & Poor’s Ratings (“S&P Ratings”), S&P Capital IQ, S&P Dow Jones Indices ("S&P DJ Indices") and Commodities & Commercial (“C&C”).

• S&P Ratings is an independent provider of credit ratings, research and analytics, offering investors and market participants information, ratings and benchmarks.

• S&P Capital IQ is a global provider of multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services.

• S&P DJ Indices is a global leading index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors.

• C&C consists of business-to-business companies specializing in commercial and commodities markets that deliver their customers access to high-value information, data, analytic services and pricing benchmarks.

See Note 11 – Segment and Geographic Information for further discussion on our operating segments, which are also our reportable segments.

We completed the sale of our McGraw-Hill Education business ("MHE") on March 22, 2013 and, accordingly, the results of operations of MHE have been reclassified to reflect the business as a discontinued operation for the year ended December 31, 2013 and all prior periods presented. The assets and liabilities of MHE have been removed from the consolidated balance sheet as of December 31, 2013 and classified as held for sale as of December 31, 2012. See Note 2 —Acquisitions and Divestitures for further discussion.

Discontinued Operations

In determining whether a group of assets disposed or to be disposed of should be presented as a discontinued operation, we make a determination of whether the group of assets being disposed of comprises a component of the entity; that is, whether it has historic operations and cash flows that can be clearly distinguished both operationally and for financial reporting purposes. We also determine whether the cash flows associated with the group of assets have been or will be eliminated from our ongoing operations as a result of the disposal transaction and whether we will have significant continuing involvement in the operations of the group of assets after the disposal transaction. If we conclude that the cash flows have been eliminated and we have no significant continuing involvement, then the results of operations of the group of assets being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from our continuing operating results in the consolidated financial statements. See Note 2 – Acquisitions and Divestitures for a summary of discontinued operations. Unless otherwise indicated, all disclosures and amounts in the notes to our consolidated financial statements relate to our continuing operations.

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 in the United States of America 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 $1.5 billion and $760 million as of December 31, 2013 and 2012, respectively. These investments are not subject to significant market risk.

Short-term investments

Short-term investments are securities with original maturities greater than 90 days that are available for use in our operations in the next twelve months. The short-term investments, primarily consisting of certificates of deposit, are classified as held-to-maturity and therefore are carried at cost. Interest and dividends are recorded into income when earned.

Accounts receivable

Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable, which include billings consistent with terms of contractual arrangements, are recorded at net realizable value.

Allowance for doubtful accounts

The allowance for doubtful accounts reserve methodology is based on historical analysis, a review of outstanding balances and current conditions. In determining these reserves, we consider, amongst other factors, the financial condition and risk profile of our customers, areas of specific or concentrated risk as well as applicable industry trends or market indicators.

Deferred technology costs

We capitalize certain software development and website implementation costs. Capitalized costs only include incremental, direct costs of materials and services incurred to develop the software after the preliminary project stage is completed, funding has been committed and it is probable that the project will be completed and used to perform the function intended. Incremental costs are expenditures that are out-of-pocket to us and are not part of an allocation or existing expense base. Software development and website implementation costs are expensed as incurred during the preliminary project stage. Capitalized costs are amortized from the year the software is ready for its intended use over its estimated useful life, three to seven years, using the straight-line method. Periodically, we evaluate the amortization methods, remaining lives and recoverability of such costs. Capitalized software development and website implementation costs are included in other non-current assets and are presented net of accumulated amortization. Gross deferred technology costs were $131 million and $115 million as of December 31, 2013 and 2012, respectively. Accumulated amortization of deferred technology costs was $71 million and $58 million as of December 31, 2013 and 2012, respectively.

Fair Value

Certain assets and liabilities are required to be recorded at fair value and classified within a fair value hierarchy based on inputs used when measuring fair value. We have an immaterial amount of forward exchange contracts that are adjusted to fair value on a recurring basis.

Other financial instruments, including cash and equivalents and short-term investments, are recorded at cost, which approximates fair value because of the short-term maturity and highly liquid nature of these instruments. The fair value of our long-term debt borrowings were $801 million and $916 million as of December 31, 2013 and 2012, respectively, and was estimated based on quoted market prices.

Accounting for the impairment of long-lived assets (including other intangible assets)

We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to current forecasts of undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair value is determined based on market evidence, discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets.

During the fourth quarter of 2013, we entered the final stages of discussions to sell the facilities and associated infrastructure equipment of one of our data centers to a third party, causing us to recognize a non-cash impairment charge of $36 million for the year ended December 31, 2013 when the facilities and associated infrastructure were reclassified as held for sale. Additionally, we incurred a $26 million non-cash impairment charge associated with an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

There were no material impairments of long-lived assets for the years ended December 31, 2012 and 2011.

Goodwill and other indefinite-lived intangible assets

Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill and other intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually during the fourth quarter each year or more frequently if events or changes in circumstances indicate that the asset might be impaired. We have four reporting units with goodwill that are evaluated for impairment.

We initially perform a qualitative analysis evaluating whether any events and circumstances occurred or exist that provide evidence that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount. If, based on our evaluation we do not believe that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the fair value of any of our reporting units is less than their respective carrying amounts we perform a two-step quantitative impairment test.

When conducting the first step of our two step impairment test to evaluate the recoverability of goodwill at the reporting unit level, the estimated fair value of the reporting unit is compared to its carrying value including goodwill. Fair value of the reporting units are estimated using the income approach, which incorporates the use of a discounted free cash flow (“DCF”) analyses and are corroborated using the market approach, which incorporates the use of revenue and earnings multiples based on market data. The DCF analyses are based on the current operating budgets and estimated long-term growth projections for each reporting unit. Future cash flows are discounted based on a market comparable weighted average cost of capital rate for each reporting unit, adjusted for market and other risks where appropriate. In addition, we analyze any difference between the sum of the fair values of the reporting units and our total market capitalization for reasonableness, taking into account certain factors including control premiums.

If the fair value of the reporting unit is less than the carrying value, a second step is performed which compares the implied fair value of the reporting unit’s goodwill to the carrying value of the goodwill. The fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than the carrying value, the difference is recognized as an impairment charge.

We evaluate the recoverability of indefinite-lived intangible assets by first performing a qualitative analysis evaluating whether any events and circumstances occurred that provide evidence that it is more likely than not that the indefinite-lived asset is impaired. If, based on our evaluation of the events and circumstances that occurred during the year we do not believe that it is more likely than not that the indefinite-lived asset is impaired, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the indefinite-lived asset is impaired a quantitative impairment test is performed. If necessary, the impairment test is performed by comparing the estimated fair value of the intangible asset to its carrying value. If the indefinite-lived intangible asset carrying value exceeds its fair value, an impairment analysis is performed using the income approach. The fair value of loss is recognized in an amount equal to that excess.

Significant judgments inherent in these analyses include estimating the amount and timing of future cash flows and the selection of appropriate discount rates, royalty rates and long-term growth rate assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit and indefinite-lived intangible asset and could result in an impairment charge, which could be material to our financial position and results of operations.

We performed our impairment assessment of goodwill and indefinite-lived intangible assets and concluded that no impairment existed for the years ended December 31, 2013, and 2011. As further discussed in Note 2 – Acquisitions and Divestitures, we determined that during the year ended December 31, 2012, the goodwill at MHE's School Education Group was impaired.

Foreign currency translation

We have operations in many foreign countries. For most international operations, the local currency is the functional currency. For international operations that are determined to be extensions of the parent company, the U.S. dollar is the functional currency. For local currency operations, assets and liabilities are translated into U.S. dollars using end of period exchange rates, and revenue and expenses are translated into U.S. dollars using weighted-average exchange rates. Foreign currency translation adjustments are accumulated in a separate component of equity.

Revenue recognition

Revenue is recognized as it is earned when goods are shipped to customers or services are rendered. We consider amounts to be earned once evidence of an arrangement has been obtained, services are performed, fees are fixed or determinable and collectability is reasonably assured. Revenue relating to products that provide for more than one deliverable is recognized based upon the relative fair value to the customer of each deliverable as each deliverable is provided. Revenue relating to agreements that provide for more than one service is recognized based upon the relative fair value to the customer of each service component as each component is earned. If the fair value to the customer for each service is not objectively determinable, management makes its best estimate of the services’ stand-alone selling price and records revenue as it is earned over the service period. For arrangements that include multiple services, fair value of the service components are determined using an analysis that considers cash consideration that would be received for instances when the service components are sold separately. Advertising revenue is recognized when the page is run. Subscription income is recognized over the related subscription period.

Depreciation

The costs of property and equipment are depreciated using the straight-line method based upon the following estimated useful lives: buildings and improvements from 15 to 40 years and equipment and furniture from 2 to 10 years. The costs of leasehold improvements are amortized over the lesser of the useful lives or the terms of the respective leases.

Advertising expense

The cost of advertising is expensed as incurred. We incurred $43 million, $34 million and $32 million in advertising costs for the years ended December 31, 2013, 2012 and 2011, respectively.

Stock-based compensation

Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, which typically is the vesting period. Stock-based compensation is classified as both operating-related expense and selling and general expense in the consolidated statements of income.

Income taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize liabilities for uncertain tax positions taken or expected to be taken in income tax returns. Accrued interest and penalties related to unrecognized tax benefits are recognized in interest expense and operating expense, respectively.

Judgment is required in determining our provision for income taxes, deferred tax assets and liabilities and unrecognized tax benefits. In determining the need for a valuation allowance, the historical and projected financial performance of the operation that is recording a net deferred tax asset is considered along with any other pertinent information.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions, and we are routinely under audit by many different tax authorities. We believe that our accrual for tax liabilities is adequate for all open audit years based on our assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. It is possible that examinations will be settled prior to December 31, 2014. If any of these tax audit settlements do occur within that period we would make any necessary adjustments to the accrual for unrecognized tax benefits. Until formal resolutions are reached between us and the tax authorities, the determination of a possible audit settlement range with respect to the impact on unrecognized tax benefits is not practicable. On the basis of present information, our opinion is that any assessments resulting from the current audits will not have a material effect on our consolidated financial statements.

Redeemable Noncontrolling Interest

The agreement with the minority partners of our S&P Dow Jones Indices LLC joint venture discussed in Note 2 —Acquisitions and Divestitures, contains redemption features whereby interests held by our minority partners is redeemable both at the option of the holder and upon the occurrence of an event that is not solely within our control. Since redemption of the noncontrolling interest is outside of our control, this interest is presented on our consolidated balance sheets under the caption “Redeemable noncontrolling interest.” If the interest were to be redeemed, we would be required to purchase all of such interest at fair value on the date of redemption. We adjust the redeemable noncontrolling interest each reporting period to its estimated redemption value, but never less than its initial fair value, using a combination of an income and market valuation approach. Our income and market valuation approaches may incorporate Level 3 measures for instances when observable inputs are not available, including assumptions related to expected future net cash flows, long-term growth rates, the timing and nature of tax attributes, and the redemption features. Any adjustments to the redemption value will impact retained income. See Note 8 – Equity, for further detail.

Contingencies

We accrue for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When we accrue for loss contingencies and the reasonable estimate of the loss is within a range, we record its best estimate within the range. We disclose an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred.

Recent Accounting Standards

In July of 2013, the Financial Accounting Standards Board (“FASB”) issued amended guidance that resolves the diversity in practice for the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This new accounting guidance requires the netting of unrecognized tax benefits ("UTBs") against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. The new standard requires prospective adoption but allows retrospective adoption for all periods presented. We will adopt the FASB’s amended guidance for our annual reporting period beginning January 1, 2014. We do not expect the adoption of the guidance to have a significant impact on our financial position, results of operations or cash flows.

In March of 2013, the FASB issued amended guidance that resolves the diversity in practice for the accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity. The amended guidance requires that when a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income in instances when a sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Additionally, the amended guidance clarifies that the sale of an investment in a foreign entity includes both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. In these instances, an entity is required to release the cumulative translation adjustment into net income. We will adopt the FASB's amended guidance during the three months ended March 31, 2014. We do not expect the adoption of the guidance to have a significant impact on our financial position, results of operations or cash flows.

In February of 2013, the FASB issued amended guidance expanding the disclosure requirements for amounts reclassified out of accumulated other comprehensive income. The amendments require an entity to present, either on the face of the statement where net income is presented or in the notes to its financial statements, details of significant items reclassified in their entirety out of accumulated other comprehensive income and identification of the respective line items effecting net income for instances when reclassification is required under U.S. GAAP. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity will be required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by type. The amendments were effective on January 1, 2013 and have been incorporated into this Form 10-K. Adoption of this guidance did not have a significant impact on our financial position, results of operations or cash flows.

Reclassification

Certain prior year amounts have been reclassified for comparability purposes.

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Employee Benefits (Details 6) (USD $) In Millions, unless otherwise specified			12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Level 3 [Member]
Information of plan assets using significant unobservable inputs
Beginning balance as of December 31, 2012	$ 2,088	$ 1,851	$ 18
Capital distributions			(18)
Ending balance as of December 31, 2013	$ 2,088	$ 1,851	$ 0

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Restructuring (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Restructuring Plan, 2013 [Member]	Dec. 31, 2012 Restructuring Plan, 2012 [Member]	Dec. 31, 2013 S&P Ratings [Member] Restructuring Plan, 2013 [Member]	Dec. 31, 2012 S&P Ratings [Member] Restructuring Plan, 2012 [Member]	Dec. 31, 2013 S&P Capital IQ [Member] Restructuring Plan, 2013 [Member]	Dec. 31, 2012 S&P Capital IQ [Member] Restructuring Plan, 2012 [Member]	Dec. 31, 2013 S&P DJ Indices Restructuring Plan, 2013 [Member]	Dec. 31, 2012 S&P DJ Indices Restructuring Plan, 2012 [Member]	Dec. 31, 2013 C&C [Member] Restructuring Plan, 2013 [Member]	Dec. 31, 2012 C&C [Member] Restructuring Plan, 2012 [Member]	Dec. 31, 2013 Corporate [Member] Restructuring Plan, 2013 [Member]	Dec. 31, 2012 Corporate [Member] Restructuring Plan, 2012 [Member]
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	$ 49	$ 68	$ 13	$ 15	$ 10	$ 19	$ 0	$ 1	$ 10	$ 12	$ 16	$ 21
Ending Reserve Balance	39	6	13	3	9	1	0	0	7	2	10	0
MHE, Initial Charge Recorded	0	39
MHE, Ending Reserve Balance	0	8
Initial Charge Recorded, Including Discontinued Operations	49	107
Ending Reserve Balance, Including Discontinued Operations	$ 39	$ 14

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Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income before taxes domestic and foreign operations

Income before taxes on income resulted from domestic and foreign operations as follows:

(in millions)	Year Ended December 31,
	2013		2012		2011
Domestic operations	$	868	$	841	$	700
Foreign operations	478		289		300
Total continuing income before taxes	$	1,346	$	1,130	$	1,000

Provision/(benefit) for taxes on income

The provision/(benefit) for taxes on income consists of the following:

(in millions)	Year Ended December 31,
	2013			2012			2011
Federal:
Current	$	209		$	194		$	238
Deferred	51			74			(6		)
Total federal	260			268			232
Foreign:
Current	152			91			93
Deferred	(19		)	(9		)	13
Total foreign	133			82			106
State and local:
Current	40			40			36
Deferred	10			14			—
Total state and local	50			54			36
Total provision for taxes for continuing operations	443			404			374
Provision for discontinued operations	281			11			164
Total provision for taxes	$	724		$	415		$	538

Reconciliation of federal statutory income tax rate

A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate for financial reporting purposes is as follows:

	Year Ended December 31,
	2013		2012		2011
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes	2.8		3.6		2.4
Foreign operations	(3.7	)	(2.6	)	(3.0	)
S&P Dow Jones Indices LLC joint venture	(1.9	)	(1.1	)	—
Other, net	0.7		0.9		3.0
Effective income tax rate for continuing operations	32.9	%	35.8	%	37.4	%

Differences between the accounting for income and expenses for financial reporting and income tax

The principal temporary differences between the accounting for income and expenses for financial reporting and income tax purposes are as follows:

(in millions)	December 31,
	2013			2012
Deferred tax assets:
Postretirement benefits	$	32		$	201
Employee compensation	72			123
Accrued expenses	142			105
Unearned revenue	55			60
Allowance for doubtful accounts	15			17
Loss carryforwards	28			25
Other	10			—
Total deferred tax assets	354			531
Deferred tax liabilities:
Goodwill and intangible assets 1	(379		)	(379		)
Fixed assets	(55		)	(54		)
Other	—			(1		)
Total deferred tax liabilities	(434		)	(434		)
Net deferred income tax (liability) asset before valuation allowance	(80		)	97
Valuation allowance	(5		)	(7		)
Net deferred income tax (liability) asset	$	(85	)	$	90
Reported as:
Current deferred tax assets	$	108		$	117
Current deferred tax liabilities	(10		)	(7		)
Non-current deferred tax assets	22			36
Non-current deferred tax liabilities	(205		)	(56		)
Net deferred income tax (liability) asset	$	(85	)	$	90

¹  See Note 2 – Acquisitions andDivestitures for further discussion regarding the impact related to the S&P Dow Jones Indices LLC.

Reconciliation of beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in millions)	Years ended December 31,
	2013			2012			2011
Balance at beginning of year	$	74		$	58		$	53
Additions based on tax positions related to the current year	27			14			12
Additions for tax positions of prior years	10			3			3
Reduction for tax positions of prior years	(9		)	(1		)	(10		)
Reduction for settlements	(20		)	—			—
Balance at end of year	$	82		$	74		$	58

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Commitments and Contingencies (Details 1) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013
Future minimum rental commitments
Rent commitment, 2014	$ 161
Rent commitment, 2015	155
Rent commitment, 2016	123
Rent commitment, 2017	99
Rent commitment, 2018	90
Rent commitment, 2019 and beyond	238
Rent commitment, Total	866
Sublease income, 2014	(14)
Sublease income, 2015	(14)
Sublease income, 2016	(13)
Sublease income, 2017	(13)
Sublease income, 2018	(13)
Sublease income, 2019 and beyond	(16)
Sublease income, Total	(83)
Net rent, 2014	147
Net rent, 2015	141
Net rent, 2016	110
Net rent, 2017	86
Net rent, 2018	77
Net rent, 2019 and beyond	222
Net rent, Total	$ 783

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Acquisitions and Divestitures (Acquisitions) (Details Textual) (USD $) In Millions, unless otherwise specified	0 Months Ended	12 Months Ended				12 Months Ended			0 Months Ended				12 Months Ended			1 Months Ended		9 Months Ended
	Jun. 29, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2003	Dec. 31, 2013 Minimum [Member]	Dec. 31, 2013 Maximum [Member]	Dec. 31, 2012 Maximum [Member]	Jun. 29, 2012 DJI [Member]	Jun. 29, 2011 DJI [Member]	Jun. 29, 2012 DJI [Member] Minimum [Member]	Jun. 29, 2012 DJI [Member] Maximum [Member]	Dec. 31, 2012 S&P Dow Jones LLC [Member]	Dec. 31, 2012 CME Group and CGIS [Member] S&P Dow Jones LLC [Member]	Dec. 31, 2012 S&P/DJ Indices [Member]	Aug. 31, 2013 CRISIL Limited [Member]	Jun. 30, 2013 CRISIL Limited [Member]	Sep. 30, 2013 CRISIL Limited [Member]
Business Acquisition [Line Items]
Acquisitions, including contingent payments, net of cash acquired		$ 273	$ 177	$ 194
Offer to purchase additional equity percent																	22.23%
Shares acquired																11
Percent of total shares acquired																15.07%
Consideration for shares																214
Ownership percentage					45.00%												52.77%	67.84%
Contingent purchase price payment																		12
Percentage of interest in joint venture													73.00%	27.00%
Acquisition-related costs															15
Fair value of business acquired	792	0	792	0					792
Fair value estimates of proportionate shares of contributed businesses, assumptions, discount rates											10.00%	11.00%
Fair value estimates of proportionate shares of contributed businesses, assumptions, long term growth rates											2.50%	3.50%
Amortization period of intangible assets (in years)		12 years				5 years	20 years	20 years
Deferred tax liabilities, noncurrent		$ 205	$ 56							$ 216

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Segment and Geographic Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

As discussed in Note 1 – Accounting Policies, we have four reportable segments: S&P Ratings, S&P Capital IQ, S&P DJ Indices and C&C.

Our Chief Executive Officer is our chief operating decision-maker and evaluates performance of our segments and allocates resources based primarily on operating profit. Segment operating profit does not include unallocated expense or interest expense, which are centrally managed costs. We use the same accounting policies for our segments as those described in Note 1 – Accounting Policies.

Segment information for the years ended December 31 is as follows:

(in millions)	Revenue									Operating Profit
	2013			2012			2011			2013			2012			2011
S&P Ratings	$	2,274		$	2,034		$	1,767		$	1,000		$	849		$	720
S&P Capital IQ	1,170			1,124			1,031			211			208			214
S&P DJ Indices	493			388			323			278			212			189
C&C	1,014			973			896			311			248			180
Intersegment elimination	(76		)	(69		)	(63		)	—			—			—
Total operating segments	4,875			4,450			3,954			1,800			1,517			1,303
Unallocated expense	—			—			—			(395		)	(306		)	(226		)
Total	$	4,875		$	4,450		$	3,954		$	1,405		$	1,211		$	1,077

(in millions)	Depreciation & Amortization						Capital Expenditures
	2013		2012		2011		2013		2012		2011
S&P Ratings	$	45	$	43	$	40	$	40	$	43	$	40
S&P Capital IQ	49		50		43		39		22		21
S&P DJ Indices	10		8		3		4		2		2
C&C	22		23		23		17		17		14
Total operating segments	126		124		109		100		84		77
Corporate	11		17		17		17		13		15
Total	$	137	$	141	$	126	$	117	$	97	$	92

Segment information as of December 31 is as follows:

(in millions)	Total Assets
	2013		2012
S&P Ratings	$	630	$	726
S&P Capital IQ	1,054		1,123
S&P DJ Indices	1,160		1,133
C&C	943		1,000
Total operating segments	3,787		3,982
Corporate 1	2,213		1,130
Assets held for sale	61		1,940
Total	$	6,061	$	7,052

¹  Corporate assets consist principally of cash and equivalents, assets for pension benefits, deferred income taxes and leasehold improvements related to subleased areas.

We have operations with foreign revenue and long-lived assets in approximately 80 countries. We do not have operations in any foreign country that represent more than 8% of our consolidated revenue. Transfers between geographic areas are recorded at agreed upon prices and intercompany revenue and profit are eliminated. No single customer accounted for more than 10% of our consolidated revenue.

The following provides revenue and long-lived assets by geographic region:

(in millions)	Revenue						Long-lived Assets
	Years ended December 31,						December 31,
	2013		2012		2011		2013		2012
United States	$	2,892	$	2,684	$	2,373	$	2,209	$	2,376
European region	1,227		1,067		951		432		441
Asia	483		454		423		59		70
Rest of the world	273		245		207		54		57
Total	$	4,875	$	4,450	$	3,954	$	2,754	$	2,944

	Revenue						Long-lived Assets
	Years ended December 31,						December 31,
	2013		2012		2011		2013		2012
United States	59	%	60	%	60	%	80	%	81	%
European region	25		24		24		16		15
Asia	10		10		11		2		2
Rest of the world	6		6		5		2		2
Total	100	%	100	%	100	%	100	%	100	%

See Note 2 – Acquisitions andDivestitures, and Note 10 – Restructuring, for actions that impacted the segment operating results.