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  "docSlug": "8874454b4a65",
  "documentTitle": "The McGraw-Hill Companies (MHP)",
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  "presentationDate": "2011-08-22 00:00:00",
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  "notes": "The slide uses a table to highlight the poor performance of the Education segment relative to other business units.",
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      "kind": "callout",
      "text": "MH Education needs substantial capital support and institutional prioritization, yet it is among McGraw-Hill's lowest returning investment opportunities.",
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      "text": "MH Education needs substantial capital support and institutional prioritization, yet it is among McGraw-Hill’s lowest returning investment opportunities.",
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      "text": "MH Education requires ~3-4x more capital than any other segment, and the segment will need additional ongoing capital support to catch up with competition in development of digital capabilities. However, every dollar deployed to MH Education is a relatively less attractive investment because the segment struggles to achieve its cost of capital and other segments offer higher returns. Furthermore, these characteristics make it challenging to justify acquisitions in MH Education.",
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      "text": "MH Education compares unfavorably with other businesses in McGraw-Hill's portfolio, as measured by growth profile, operating margins, capital intensity and ROIC. As a result, MH Education competes with substantially higher returning businesses for capital, resources and management attention; this leaves MH Education competitively disadvantaged.",
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      "text": "ROIC: 6.6%",
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      "kind": "source-note",
      "text": "(1) Adjusted corporate overhead and CapEx allocated to segments based on percentage EBIT contribution. (2) Includes investments in pre-publication. (3) Calculated as NOPAT / segment assets. Assumes MHP corporate tax rate for all segments.",
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      "text": "Comparable Segment Metrics table showing EBIT, CapEx, and ROIC for S&P Ratings, McGraw-Hill Financial, McGraw-Hill Education, and Information & Media.",
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      "kind": "title",
      "text": "MH Education: Disadvantaged Within McGraw-Hill's Portfolio",
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