Acquisitions and Divestitures

Acquisitions

In March of 2014, we acquired the intellectual property of a family of Broad Market Indices (“BMI”) from Citigroup Global Markets Inc., that will be integrated into our S&P DJ Indices segment. The BMI provides a broad measure of the global equities markets which includes approximately 11,000 companies in more than 52 countries covering both developed and emerging markets. We accounted for the acquisition of the intellectual property on a cost basis and it was not material to our consolidated financial statements.

During the three months ended March 31, 2013, we did not complete any acquisitions.

Divestitures

During the three months ended March 31, 2014, we did not complete any dispositions.

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 $612 million for the three months ended March 31, 2013, which is included in discontinued operations, net in the consolidated statement of income. During the three months ended September 30, 2013, we adjusted the after tax gain on the sale of MHE, primarily due to post-closing working capital adjustments. For the year ended December 31, 2013, we recorded an after-tax gain on the sale of $589 million. 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 key components of income from discontinued operations for the three months ended March 31, 2013 consist of the following:



(in millions)
Revenue	$	268
Expenses	314
Operating loss	(46		)
Interest expense, net	1
Loss before tax benefit	(47		)
Tax benefit	(16		)
Loss from discontinued operations, net of tax	(31		)
Pre-tax gain on sale from discontinued operations	920
Provision for taxes on income	308
Gain on sale of discontinued operations, net of tax	612
Discontinued operations, net	581
Less: net loss attributable to noncontrolling interests	(1		)
Income from discontinued operations attributable to McGraw Hill Financial, Inc. common shareholders	$	582