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, 2003, 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 S&P at the time). The company is a global information services provider serving financial services, education, and business information markets. It employs approximately 16,068 people worldwide and distributes content through print, digital, wireless, and broadcasting channels.
Key Financial Metrics
Note: The filing text incorporates detailed financial statements (Revenue, Profit, Cash Flow, Debt) by reference to the 2003 Annual Report to Shareholders (Exhibit 13). Specific numerical values for revenue, net income, and cash flow are not present in the provided text. The following metrics are available from the text:
- Dividends: $1.08 per share for 2003 ($0.27 per quarter), compared to $1.02 per share in 2002.
- Stock Price: $76.63 per share (closing price on February 12, 2004).
- Market Value: $11.85 billion (aggregate market value of voting stock held by non-affiliates as of June 30, 2003).
- Outstanding Shares: 191,394,741 shares as of February 12, 2004.
- Equity Compensation: 20,009,776 securities available for issuance under approved plans with a weighted-average exercise price of $56.32.
- Reserves: Total reserves for doubtful accounts and sales returns were $239.8 million at year-end 2003.
Material Changes and Operational Updates
- Dividend Increase: Quarterly dividends increased from $0.255 in 2002 to $0.270 in 2003.
- Real Estate Consolidation: The company is consolidating its London operations (including Standard & Poor's, BusinessWeek, and Platts) into a new 266,000 sq. ft. facility at Canary Wharf, scheduled for occupancy in 2004.
- Facility Management: Effective March 2003, CB Richard Ellis assumed management of 42 U.S. facilities.
- Legal Proceedings: No material pending legal proceedings are expected to have a material adverse effect on financial statements.
Guidance, Risks, and Management Commentary
Specific forward-looking guidance, revenue outlook, and detailed management commentary are incorporated by reference from the 2003 Annual Report to Shareholders and are not detailed in the provided text. However, the following governance and risk points are noted:
- Controls and Procedures: Management concluded that disclosure controls and procedures were effective as of December 31, 2003. No material changes in internal controls occurred in the most recent quarter.
- Accounting: No changes in or disagreements with accountants (Ernst & Young LLP) were reported.
- Executive Leadership: Harold McGraw III serves as Chairman, President, and CEO. Robert J. Bahash is the Executive Vice President and CFO.
Investor Verification Checklist
- Financial Statements: Verify total revenue, net income, and operating cash flow figures in the 2003 Annual Report to Shareholders (Exhibit 13), as they are not listed in this 10-K text.
- Debt Obligations: Review the "Computation of Ratio of Earnings to Fixed Charges" and credit agreements (referenced in Exhibits) to assess leverage and liquidity.
- Segment Performance: Confirm the contribution of operating segments (Financial Services, Education, etc.) to operating profit in the Annual Report.
- London Consolidation Costs: Assess the capital expenditure and operational impact of the 2004 move to the Canary Wharf facility.
- Equity Dilution: Monitor the 5.8 million shares remaining available for future issuance under equity compensation plans.