Earnings Per Share

6 Months Ended

Jun. 30, 2014

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 and restricted performance shares calculated using the treasury stock method.

The calculation for basic and diluted EPS for the periods ended June 30 is as follows:

(in millions, except per share amounts)	Three Months Ended				Six Months Ended
	2014		2013		2014		2013
Amounts attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$	292	$	250	$	540	$	403
Income from discontinued operations	—		4		—		586
Net income	$	292	$	254	$	540	$	989
Basic weighted-average number of common shares outstanding	271.5		274.3		271.7		277.4
Effect of stock options and other dilutive securities	4.6		4.0		5.0		3.9
Diluted weighted-average number of common shares outstanding	276.1		278.3		276.7		281.3
Earnings per share attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations:
Basic	$	1.08	$	0.91	$	1.99	$	1.45
Diluted	$	1.06	$	0.90	$	1.95	$	1.43
Income from discontinued operations:
Basic	$	—	$	0.01	$	—	$	2.11
Diluted	$	—	$	0.01	$	—	$	2.08
Net income:
Basic	$	1.08	$	0.93	$	1.99	$	3.57
Diluted	$	1.06	$	0.91	$	1.95	$	3.52

Each period we have certain stock options and restricted performance shares that are excluded from the computation of diluted EPS. The effect of the potential exercise of stock options is excluded when the average market price of our common stock is lower than the exercise price of the related option during the period because the effect would have been antidilutive. Additionally, restricted performance shares are excluded because the necessary vesting conditions had not been met. For the three and six months ended June 30, 2014, there were a minimal amount of stock options excluded as compared to 2.7 million and 2.8 million stock options excluded for the three and six months ended June 30, 2013, respectively. Additionally, restricted performance shares outstanding of 1.4 million and 2.3 million as of June 30, 2014 and 2013, respectively, were excluded.