EX-99 2 exhibit99.htm EXHIBIT Exhibit 99


McGraw Hill Financial
Recasted Selected Financial Information for Continuing Operations
(dollars in millions, except per share data)
(unaudited)
 
2014
 
 
 
Q1
 
Q2
 
Q3
 
Q3 YTD
 
 
 
Reported1
Performance
 
Reported1
Performance
 
Reported1
Performance
 
Reported1
Performance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
1,196

$
1,196

 
$
1,302

$
1,302

 
$
1,263

$
1,263

 
$
3,761

$
3,761

 
Segment operating profit (a)
 
454

454

 
521

521

 
404

507

 
1,379

1,482

 
Unallocated expense (b)
 
34

34

 
45

45

 
38

32

 
118

111

 
Operating profit
 
420

420

 
476

476

 
366

475

 
1,261

1,371

 
Interest expense, net  
 
14

14

 
14

14

 
12

12

 
40

40

 
Income before taxes on income
 
406

406

 
462

462

 
354

463

 
1,221

1,331

 
Provision for taxes on income
 
138

138

 
152

152

 
139

155

 
428

445

 
Income from continuing operations
 
$
268

$
268

 
$
310

$
310

 
$
215

$
308

 
$
793

$
886

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted EPS
 
$
0.87

$
0.87

 
$
1.04

$
1.04

 
$
0.68

$
1.02

 
$
2.59

$
2.93

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Totals presented may not sum due to rounding
1 Reported amounts above reflect the reclassification of McGraw Hill Construction out of McGraw Hill Financial's continuing operations

Non-GAAP adjustments included in the reported amounts and excluded from performance amounts in the table above:
(a)
Q3 2014 adjustments include a $60 million charge for certain regulatory matters, restructuring charges of $39 million, and $4 million of professional fees largely related to corporate development activities
(b)
Q3 2014 adjustment includes restructuring charges of $7 million





McGraw Hill Financial
Recasted Selected Financial Information for Continuing Operations
(dollars in millions, except per share data)
(unaudited)
 
2013
 
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Full Year
 
 
 
Reported1
Performance
 
Reported1
Performance
 
Reported1
Performance
 
Reported1
Performance
 
Reported1
Performance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
1,140

$
1,140

 
$
1,205

$
1,205

 
$
1,152

$
1,152

 
$
1,206

$
1,206

 
$
4,702

$
4,702

 
Segment operating profit (a) (b)
 
417

417

 
468

468

 
444

423

 
364

389

 
1,693

1,697

 
Unallocated expense (c) (d) (e) (f)
 
148

28

 
45

34

 
49

38

 
93

42

 
335

142

 
Operating profit
 
269

389

 
423

434

 
395

385

 
271

347

 
1,358

1,555

 
Interest expense, net  
 
15

15

 
16

16

 
14

14

 
14

14

 
59

59

 
Income before taxes on income
 
254

374

 
407

418

 
381

370

 
257

333

 
1,299

1,496

 
Provision for taxes on income
 
86

131

 
141

146

 
123

129

 
75

100

 
425

507

 
Income from continuing operations
 
$
168

$
243

 
$
266

$
272

 
$
258

$
241

 
$
182

$
233

 
$
874

$
989

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted EPS
 
$
0.52

$
0.78

 
$
0.87

$
0.90

 
$
0.82

$
0.77

 
$
0.60

$
0.78

 
$
2.80

$
3.22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Totals presented may not sum due to rounding
1 Reported amounts above reflect the reclassification of McGraw Hill Construction out of McGraw Hill Financial's continuing operations

Non-GAAP adjustments included in the reported amounts and excluded from performance amounts in the table above:
(a)
Q3 2013 adjustments include restructuring charges of $4 million, a gain on the sale of an equity investment held by CRISIL of $16 million, a loss on the sale of Financial Communications of $3 million, and a gain on the sale of Aviation Week of $11 million
(b)
Q4 2013 adjustment includes a $26 million restructuring charge
(c)
Q1 2013 adjustments include costs for the separation of MHE of $44 million, and pre-tax legal settlements of $77 million
(d)
Q2 2013 adjustment includes $10 million of costs for the separation of MHE
(e)
Q3 2013 adjustment includes $10 million of costs for the separation of MHE
(f)
Q4 2013 adjustments include a $36 million non-cash impairment charge related to the sale of a data center, and a $13 million charge related to terminating various leases