EX-12 2 y26115exv12.htm EX-12: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

EX-12

Exhibit (12)

The McGraw-Hill Companies, Inc.

Computation of Ratio of Earnings to Fixed Charges

		Sept. 30, 2006								Sept. 30, 2005
		Nine				Twelve				Nine
(in thousands)		Months				Months				Months
Earnings
Earnings from operations before taxes on income (Note)		$	1,078,745			$	1,369,123			$	1,042,584
Fixed charges			69,560				88,047				61,924
Total Earnings		$	1,148,305			$	1,484,170			$	1,104,508
Fixed Charges (Note)
Interest expense			22,500				26,242			$	15,880
Portion of rental payments deemed to be interest			47,060				61,805				46,044
Total Fixed Charges		$	69,560			$	88,047			$	61,924
Ratio of Earnings to Fixed Charges			16.5	x			16.9	x			17.8	x

(Note)		For the three and nine months ended September 30, 2006, earnings from operations before taxes on income includes $29.2 million and $106.2 million of stock-based compensation expense, respectively and a $15.4 million restructuring charge.
		For the twelve months ended September 30, 2006, earnings from operations before taxes on income includes $129.0 million of stock-based compensation expense and a $38.6 million restructuring charge.
		“Fixed charges” consist of (1) interest on debt and interest related to the sale leaseback of Rock-McGraw, Inc. (See Note 11 to the Company’s consolidated financial statements); and (2) the portion of the Company’s rental expense deemed representative of the interest factor in rental expense.

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