Acquisitions and Dispositions

6 Months Ended

Jun. 30, 2011

Acquisitions and Dispositions [Abstract]

2. Acquisitions and Dispositions

During the six months ended June 30, 2011, we completed acquisitions aggregating approximately $126 million. None of our acquisitions were material either individually or in the aggregate, including the pro forma impact on earnings, and primarily included the following:

	•		In March, we acquired the assets of Bookette Software Company (“Bookette”). Bookette engages in the development of software and algorithms that are used to score and report educational tests for schools, districts, and states and other various educational systems and entities worldwide. Bookette is included within McGraw-Hill Education’s California Testing Board’s assessment business.

	•		In January, we acquired all of the issued and outstanding membership interest units of Bentek Energy LLC (“Bentek”), which is included as part of our McGraw-Hill Information & Media (“I&M”) 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.

We sold our interest in LinkedIn Corporation during the three months ended June 30, 2011, at their initial public offering. This investment was held within our I&M segment and as a result of the sale we recorded a pre-tax gain of $13.2 million, which is included in other income in the Consolidated Statements of Income for the three and six months ended June 30, 2011.

We did not complete any acquisitions or dispositions for the six months ended June 30, 2010. We made a $5.0 million contingent payment during the three months ended June 30, 2010 related to an acquisition in 2008, which is part of our McGraw-Hill Financial segment.

On June 14, 2011, we announced that we have retained Morgan Stanley & Co. LLC to pursue the divestiture of our Broadcasting Group within our I&M segment. The planned divestiture is part of our continuing portfolio review that we are undertaking across the Company to reevaluate our strategic core. Because we are in the preliminary stages of evaluating the feasibility of the potential divestiture, we are unable to accurately assess the timing, consummation, terms and consideration that may be received from the potential divestiture, and therefore have not recorded amounts related to our Broadcasting Group within assets held for sale on our Consolidated Balance Sheet as of June 30, 2011.

On June 29, 2011, we announced that Platts, part of our I&M segment, has signed an agreement to acquire the 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 transaction closed on July 1, 2011.