EX-12 7 mhp-ex12x20121231xq4xa.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Exhibit (12)
The McGraw Hill Companies, Inc.
Computation of Ratio of Earnings to Fixed Charges
(in millions)

| Years ended December 31, |
| 2012 |  | 2011 |  | 2010 |  | 2009 |  | 2008 |
Earnings: |  |  |  |  |  |  |  |  |  |
Income from continuing operations before taxes on income | $ | 1,130 |  | 1 | $ | 1,000 |  | 2 | $ | 943 |  | 3 | $ | 876 |  | 4 | $ | 932 |  | 5
Fixed charges 6 | 130 |  |  | 134 |  |  | 137 |  |  | 132 |  |  | 136 |  |
Total earnings | $ | 1,260 |  |  | $ | 1,134 |  |  | $ | 1,080 |  |  | $ | 1,008 |  |  | $ | 1,068 |  |
Fixed charges: 6 |  |  |  |  |  |  |  |  |  |
Interest expense | $ | 81 |  |  | $ | 86 |  |  | $ | 89 |  |  | $ | 89 |  |  | $ | 92 |  |
Portion of rental payments deemed to be interest | 48 |  |  | 47 |  |  | 47 |  |  | 42 |  |  | 43 |  |
Amortization of debt issuance costs and discount | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |
Total fixed charges | $ | 130 |  |  | $ | 134 |  |  | $ | 137 |  |  | $ | 132 |  |  | $ | 136 |  |
Ratio of earnings to fixed charges: | 9.7 |  | x | 8.5 |  | x | 7.9 |  | x | 7.6 |  | x | 7.9 |  | x

1 | Includes the impact of the following items: $135 million charge for Growth and Value Plan costs, a $68 million restructuring charge, transaction costs of $15 million for our S&P Dow Jones Indices LLC joint venture, an $8 million charge related to a reduction in our lease commitments, partially offset by a vacation accrual reversal of $52 million.

2 | Includes the impact of the following items: a $32 million restructuring charge and a $10 million charge for Growth and Value Plan costs.

3 | Includes the impact of the following items: a $16 million charge for subleasing excess space in our New York facilities, an $11 million restructuring charge and a $7 million gain on the sale of certain equity interests at Standard & Poor's Ratings.

4 | Includes the impact of the following items: a $14 million loss on the sale of Vista Research, Inc., an $11 million gain on the sale of BusinessWeek and a $4 million net restructuring charge.

5 Includes a $48 million restructuring charge.
6 "Fixed charges" consist of (1) interest on debt and interest related to the sale leaseback of Rock-McGraw, Inc. (see Note 13 - Commitments and Contingencies to the consolidated financial statements under Item 8, Consolidated Financial Statements and Supplementary Data, in this Form 10-K), (2) the portion of our rental expense deemed representative of the interest factor in rental expense, and (3) amortization of debt issue costs and discount to any indebtedness.