SEC Filing Summary: The McGraw-Hill Companies, Inc. (10-K)
Business Context and Reporting Period
Company: The McGraw-Hill Companies, Inc. (Note: The input metadata references S&P Global, but the filing text explicitly identifies the registrant as The McGraw-Hill Companies, Inc., which owned S&P at the time).
Reporting Period: Fiscal year ended December 31, 2002.
Business Overview: A leading global information services provider serving financial services, education, and business information markets. Additional markets include energy, construction, aerospace, defense, and medical/health. The company employs 16,505 people worldwide and distributes content via print, digital platforms, broadcasting, and conferences.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, and Liquidity: The filing text does not provide specific numerical values for revenue, net income, operating profit, cash flow, margins, debt levels, or liquidity ratios. These figures are incorporated by reference from the 2002 Annual Report to Shareholders (Exhibit 13), which is not included in the provided text.
Dividends:
- 2002: $1.02 per share ($0.255 per quarter).
- 2001: $0.98 per share ($0.245 per quarter).
Market Data (as of Feb 15, 2003):
- Outstanding Shares: 191,693,589.
- Market Value of Voting Stock (non-affiliates): $10,515,086,000.
- Record Holders: Approximately 5,115.
Material Changes and Operational Updates
Real Estate and Facilities:
- New Leases: Commenced a new lease for 1221 Avenue of the Americas (New York) in July 2002 and a new lease for 7500 Chavenelle Drive (Dubuque, IA) in June 2002.
- Subleasing: The company no longer has non-McGraw-Hill subtenants at its New York headquarters. A significant portion of the former Dubuque location is subleased to Quebecor World.
- Management: Effective March 2003, CB Richard Ellis assumed management of 42 U.S. facilities.
Executive Changes:
- Deven Sharma joined as Executive Vice President, Global Strategy (Jan 2002).
- David L. Murphy joined as Executive Vice President, Human Resources (July 2002).
Legal Proceedings: The company is a defendant in numerous proceedings but states there are no known material pending legal proceedings expected to have a material adverse effect.
Guidance, Outlook, and Risks
Guidance and Outlook: The filing text does not contain specific forward-looking guidance or numerical outlooks. Management's discussion and analysis are incorporated by reference from the Annual Report.
Controls and Procedures: Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of December 31, 2002. No significant changes in internal controls were reported subsequent to that date.
Risks and Contingencies:
- Legal: Ongoing litigation exists, though none is deemed material.
- Operational: Reliance on independent contractors for book manufacturing and magazine printing.
- Supply Chain: Principal raw material is paper; sources are assured at competitive prices.
Investor Verification Checklist
- Financial Performance: Verify specific revenue, profit, and cash flow figures in the 2002 Annual Report to Shareholders (Exhibit 13), as they are not present in this 10-K text.
- Segment Data: Review Exhibit 13 (pages 56-57) for the breakdown of operating revenue and profit by segment (Financial Services, Education, etc.).
- Equity Compensation: Note that 17,520,823 securities are reserved for issuance under approved equity plans with a weighted-average exercise price of $55.13.
- Debt Facilities: Review the 364-Day Credit Agreement (July 2002) and Five-Year Credit Agreement (August 2000) details in the exhibits for specific debt covenants and amounts.
- Real Estate Exposure: Confirm the impact of the new lease at 1221 Avenue of the Americas and the subleasing of the Dubuque facility on future operating costs.