SEC Filing Summary: The McGraw-Hill Companies, Inc. (10-K)
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 1999, for The McGraw-Hill Companies, Inc. (Note: The input metadata references "S&P Global Inc.", but the filing text explicitly identifies the registrant as The McGraw-Hill Companies, Inc., which owned Standard & Poor's at the time). The company operates as a multimedia publishing and information provider serving finance, business, education, construction, medical, and aerospace markets globally. It employs 16,376 people worldwide.
Key Financial Metrics
Consolidated financial data for the year ended December 31, 1999, is presented below (in thousands of dollars):
| Segment | 1999 Revenue | 1999 Operating Profit | 1998 Revenue | 1998 Operating Profit |
|---|---|---|---|---|
| Educational & Professional Publishing | $1,734,922 | $273,667 | $1,620,343 | $202,076 |
| Financial Services | $1,224,605 | $369,740 | $1,087,817 | $355,869 |
| Information & Media Services | $1,032,470 | $179,860 | $1,020,985 | $131,123 |
| Total Consolidated | $3,991,997 | $823,267 | $3,729,145 | $689,068 |
Dividends: $0.86 per share for 1999 ($0.215 per quarter).
Market Data (as of Feb 29, 2000): 194,491,435 shares outstanding; aggregate market value of non-affiliate voting stock was approximately $9.76 billion.
Debt and Liquidity: The filing text does not provide specific consolidated debt or cash flow figures; these are incorporated by reference from the Annual Report to Shareholders.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by approximately 7.0% from $3.73 billion in 1998 to $3.99 billion in 1999.
- Profit Growth: Total operating profit increased by approximately 19.5% from $689 million in 1998 to $823 million in 1999.
- Segment Performance:
- Financial Services: Revenue grew 12.6% and operating profit grew 3.9%.
- Information & Media Services: Revenue grew 1.1% while operating profit surged 37.2%.
- Educational & Professional Publishing: Revenue grew 7.1% and operating profit grew 35.4%.
- Organizational Changes: In 1999, Platt's (energy services) was consolidated into the Information and Media Services segment. S&P Personal Wealth management was transferred to Business Week within the same segment.
Outlook, Risks, and Contingencies
Management Commentary: The filing incorporates the Management's Discussion and Analysis (MD&A) by reference; specific forward-looking guidance is not detailed in the provided text.
Legal Proceedings: The company is a defendant in numerous legal proceedings but states there are no known material pending proceedings expected to have a material adverse effect on financial statements or operations.
Properties: The company leases 361 locations and owns 21. Significant real estate activity includes the completion of a new facility in Columbus, Ohio, and the execution of a new long-term lease at 1221 Avenue of the Americas (corporate headquarters) running from 2002 to 2020.
Investor Verification Checklist
- Consolidated Financial Statements: Verify total net income, cash flow from operations, and total debt levels in the full Annual Report to Shareholders (Exhibit 13), as these specific figures are not in the 10-K text provided.
- Segment Restatements: Confirm the impact of the 1999 segment transfers (Platt's and S&P Personal Wealth) on year-over-year comparability.
- Real Estate Obligations: Review the terms of the new 18-year lease at 1221 Avenue of the Americas and the subleasing arrangements.
- Dividend Sustainability: Assess the payout ratio relative to net income (not provided in text) to evaluate the $0.86 per share dividend.