標普全球 (SPGI) 2011 Q4 法說會逐字稿

Good morning, and welcome to the McGraw-Hill Companies conference call. I'd like to inform you that this call is being recorded for broadcast and that all participants are in a listen-only mode. We will open the conference to question and answers after the presentation, and instructions will follow at that time. To access the webcast and slides, go to www.mcgraw-hill.com and click on the link for the fourth-quarter earnings webcast. (Operator Instructions)

早安，歡迎參加麥格羅-希爾公司（McGraw-Hill Companies）電話會議。我想提醒各位，本次通話將被錄音以供播出，且所有與會者目前皆為僅收聽模式。在簡報結束後，我們將開放提問與回答，屆時會提供相關指示。如需收看網路直播與投影片，請前往 www.mcgraw-hill.com，並點選第四季財報網路直播連結。(接線員指示)

I would now like to introduce Mr. Donald Rubin, Senior Vice President of Investor Relations for the McGraw-Hill Companies. Sir, you may begin.

現在我想介紹麥格羅-希爾公司投資人關係資深副總裁 Donald Rubin 先生。Donald Rubin 先生。先生，您可以開始了。

Good morning. We thank everyone in our global audience for joining us this morning at the McGraw-Hill Companies fourth-quarter and full-year 2011 earnings call. I'm Donald Rubin, Senior Vice President of Investor Relations for the McGraw-Hill Companies.

早安。感謝我們全球的聽眾今天早上加入麥格羅-希爾公司第四季及2011全年財報電話會議。我是麥格羅-希爾公司投資人關係資深副總裁 Donald Rubin。

This morning we issued a news release with our fourth-quarter results. We trust you've all had a chance to review the release. If you need a copy of it and for the financial schedules, they can be downloaded at www.mcgraw-hill.com. Once again, that is www.mcgraw-hill.com.

今天早上我們已發布新聞稿，公布第四季業績。相信各位都已經有機會閱讀該新聞稿。如需取得新聞稿副本及財務附表，可至 www.mcgraw-hill.com 下載。再重申一次，網址是 www.mcgraw-hill.com。

In today's earnings release and during the conference call, we are providing adjusted revenue and free cash flow information. This information is provided to enable investors to make meaningful comparison of the Company's operating performance between periods and to view the Company's business from the same perspective as management's.

在今日的財報新聞稿以及本次電話會議中，我們將提供調整後營收與自由現金流資訊。提供這些資訊是為了讓投資人能在不同期間之間對本公司營運表現進行有意義的比較，並以與管理階層相同的角度來檢視本公司的業務。

The earnings release contains exhibits that reconcile the differences between the non-GAAP measures and comparable financial measures calculated in accordance with US GAAP. The results we are reporting also reflect the reclassification of the Broadcasting Group as a discontinued operation following the signing of a definitive agreement in October 2011 to sell this business to E.W. Scripps.

財報新聞稿包含附表，用以調節非GAAP衡量指標與依照美國一般公認會計原則（US GAAP）計算之可比財務衡量指標之間的差異。我們所報告的結果亦反映：在2011年10月簽署最終協議、將該業務出售予 E.W.Scripps 之後，廣播事業群（Broadcasting Group）已重新分類為停業單位。

In today's news release and on the conference call, we are introducing new names for some operations to reflect changes being created by our Growth and Value Plan. In each case, more information about the new entity is being provided to investors. Under the separation plan, the newly-named McGraw-Hill Financial Company includes five lines of business. They are S&P Ratings, S&P Capital IQ, S&P Indices, and Commodities and Commercial Operations.

在今日的新聞稿與本次電話會議中，我們為部分營運單位引入新名稱，以反映我們的「成長與價值計畫」（Growth and Value Plan）所帶來的變革。在每一個案例中，我們都會向投資人提供更多關於新實體的資訊。依據分拆計畫，新命名的 McGraw-Hill Financial Company 包含五條業務線。分別為：S&P Ratings、S&P Capital IQ、S&P Indices，以及大宗商品與商業營運（Commodities and Commercial Operations）。

The segment previously named McGraw-Hill Financial now becomes S&P Capital/S&P Indices. We are providing revenue for both S&P Capital IQ and S&P Indices, and over time additional financial information will be provided on these operations. Information & Media becomes Commodities and Commercial. We are providing revenue for both Commodities and Commercial operations, and over time more information will be provided about them as well.

先前名為 McGraw-Hill Financial 的部門，現更名為 S&P Capital/S&P Indices。我們將分別提供 S&P Capital IQ 與 S&P Indices 的營收資訊，並將隨時間推進提供這些營運單位的更多財務資訊。Information & Media 更名為 Commodities and Commercial。我們將分別提供 Commodities 與 Commercial 營運的營收資訊，並將隨時間推進提供更多相關資訊。

Before we begin, I need to provide certain cautionary remarks about forward-looking statements. Except for historical information, the matters discussed in the teleconference may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including projections, estimates and descriptions of future events. Any such statements are based on current expectations and current economic conditions, and are subject to risks and uncertainties that may cause actual results to differ materially from results anticipated in these forward-looking statements.

在開始之前，我需要就前瞻性陳述提供若干警示性說明。除歷史資訊外，本次電話會議所討論事項可能包含《1995年私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）所定義之前瞻性陳述，包括預測、估計及對未來事件的描述。任何此類陳述均基於目前的預期與當前經濟狀況，並受風險與不確定性影響，可能導致實際結果與這些前瞻性陳述所預期的結果出現重大差異。

In this regard, we direct listeners to the cautionary statements contained in our 10-Ks, 10-Qs and other periodic reports filed with the US Securities and Exchange Commission.

就此，我們請聽眾參閱我們向美國證券交易委員會（SEC）提交的 10-K、10-Q 及其他定期報告中所載的警示性聲明。

We are aware that we do have some media representatives with us on the call. However, this call is for investors and we would ask that questions from the media be directed to Patti Rockenwagner in our New York office at 212-512-3533 subsequent to this call. That's 212-512-3533.

我們知道本次通話中也有一些媒體代表。然而，本次電話會議是提供投資人使用；我們請媒體的提問在會後致電我們紐約辦公室的 Patti Rockenwagner，電話為 212-512-3533。電話是 212-512-3533。

Now I'd like to turn the call over to Harold McGraw, III, Chairman, President & CEO of the McGraw-Hill Companies. Terry.

現在我想把電話交給麥格羅-希爾公司董事長、總裁兼執行長 Harold McGraw III。Terry。

Okay, Thank you very much, Don. Good morning, everybody, and welcome to our conference call today on the fourth quarter and on the full-year results. With me today besides Don is Jack Callahan, our Chief Financial Officer. And this morning I will briefly review our results for the fourth quarter and the full year, and Jack will provide some additional detail.

好的，非常感謝你，Don。各位早安，歡迎參加我們今天關於第四季及全年業績的電話會議。今天與我一同出席的除了 Don 之外，還有我們的財務長 Jack Callahan。今天早上我將簡要回顧第四季與全年的業績，Jack 會提供一些額外細節。

We are going to discuss the 2011 -- and 2011 was a milestone year for The McGraw-Hill Companies. I will provide an overview of the accomplishments of our businesses both across the newly formed McGraw-Hill Financial and McGraw-Hill Education and then we'll take a look into 2012, which promises to be one of the most momentous periods in our 124-year history of the Company.

我們將討論2011年——而2011年對麥格羅-希爾公司而言是具有里程碑意義的一年。我將概述我們在新成立的 McGraw-Hill Financial 與 McGraw-Hill Education 兩大業務中的成就，接著展望2012年；2012年可望成為本公司124年歷史中最具重大意義的時期之一。

As always, after our prepared remarks, we will be pleased to answer any questions that you may have about The McGraw-Hill Companies. In the fourth quarter, adjusted diluted earnings per share from continuing operations increased 17% year-over-year to $0.63. That includes $66 million in restructuring charges for severance related to a workforce reduction of approximately 800 positions and $10 million for one-time separation expenses necessary to implement the Growth and Value Plan.

一如往常，在我們的準備發言之後，我們很樂意回答各位對麥格羅-希爾公司的任何問題。第四季，來自持續營運的調整後稀釋每股盈餘年增17%，至0.63美元。其中包括6,600萬美元的重整費用（與約800個職位的人力縮減相關的資遣費），以及為推動「成長與價值計畫」所需的一次性分拆費用1,000萬美元。

Revenue was up 2% and adjusted operating profit grew 8% as results across the portfolio were mixed. Looking at the year in its entirety, 2011 was the second-best year in our history for revenue, operating profit and earnings per share. Only 2007 topped our performance in 2011. Revenue increased by 3% to $6.2 billion. On an adjusted basis, 2011 net income from continuing operations grew by 6% to $883 million. Adjusted earnings per diluted share for continuing operations increased 9% to $2.91.

營收成長2%，調整後營業利益成長8%，但投資組合各業務表現好壞不一。就全年而言，2011年在營收、營業利益與每股盈餘方面，為本公司歷史上表現第二佳的一年。只有2007年的表現優於2011年。營收成長3%，達62億美元。以調整後基礎計算，2011年持續營運淨利成長6%，至8.83億美元。持續營運的調整後稀釋每股盈餘成長9%，至2.91美元。

Let me spend a few minutes reflecting on this past year. 2011 was beyond a doubt a landmark year for The McGraw-HGll Companies. We produced a strong performance in the face of volatile market conditions and we made important decisions that will better position the Company for the future and we believe increase returns to our shareholders.

我想花幾分鐘回顧過去一年。毫無疑問，2011年是麥格羅-希爾公司的關鍵里程碑之年。在市場環境波動之下，我們仍交出強勁表現；同時也做出重要決策，使公司在未來能有更佳定位，並且我們相信能提高股東報酬。

There were nine major milestones during the year and they included -- first, the announcement last September on a Growth and Value Plan whose centerpiece is the creation of two strong public companies -- McGraw-Hill Financial and McGraw-Hill Education.

這一年有九項重大里程碑，其中包括——第一，去年9月宣布「成長與價值計畫」，其核心是打造兩家強健的上市公司——McGraw-Hill Financial 與 McGraw-Hill Education。

Secondly, significant and rapid progress in realizing the promise of the Growth and Value Plan including fourth-quarter restructuring and realignment of our benefit plans.

第二，在實現「成長與價值計畫」承諾方面取得重大且快速的進展，包括第四季的重整，以及我們福利計畫的重新調整。

Third was the target of at least $100 million and cost reductions.

第三，是至少1億美元的成本削減目標。

Fourth was the divestiture of the Broadcasting Group at a very attractive price.

第四，是以非常具吸引力的價格出售廣播事業群（Broadcasting Group）。

Fifth was the expansion of the core commodities franchise with a strategic acquisition of two new companies in natural gas and steel.

第五，是透過策略性收購兩家天然氣與鋼鐵領域的新公司，擴大核心大宗商品特許經營版圖。

Sixth was the partnership with the Chicago Mercantile Exchange, the CME, to drive future growth of S&P Indices.

第六，是與芝加哥商業交易所（Chicago Mercantile Exchange，CME）建立合作夥伴關係，以推動 S&P Indices 未來成長。

Seven was the successful combination and 2011 of S&P Capital IQ and S&P Indices and a new segment that leverages resources, create scale, produces solid growth and will be a source of new growth opportunities in financial markets.

第七，是在2011年成功整合 S&P Capital IQ 與 S&P Indices，成立一個能整合資源、創造規模、帶來穩健成長的新部門，並將成為金融市場中新成長機會的來源。

Eighth is the rapid growth of digital products and services that are transforming the Education market and creating enormous new opportunities for (inaudible) Education.

第八，是數位產品與服務的快速成長，正改變教育市場並為（聽不清）教育創造龐大的新機會。

And finally, nine was $1.5 billion of share repurchases in 2011. We are moving quickly to unlock the value inherent in our Growth and Value Plan (technical difficulty).

最後，第九項是2011年15億美元的股票回購。我們正迅速推進，以釋放我們「成長與價值計畫」中內含的價值（技術問題）。

Jack Callahan, our CFO, will provide more detail in just a moment on the restructuring to date, but we have already taken significant actions to create two efficiently sized corporate structures and separate shared services.

我們的財務長 Jack Callahan 將在稍後就迄今為止的重組提供更多細節，但我們已採取重大行動，建立兩個規模有效率的公司架構，並分拆共享服務。

We have established and staffed a program management office, PMO, with 17 work [streams]. It is a massive global effort. Teams are focused on growth opportunities, transaction management and cost reductions across the enterprise, including business support services and information technology. They are identifying gross synergies and scalable capabilities.

我們已成立並配置人員的專案管理辦公室（PMO），涵蓋17個工作[串流]。這是一項龐大的全球性工作。團隊聚焦於全企業的成長機會、交易管理與成本降低，包括業務支援服務與資訊科技。他們正在辨識總體協同效益與可擴展的能力。

We are using the most seasoned and experienced staffers to help us start realizing the benefits of all this work later this year. It is another reason why we're more confident than ever that at least $100 million in cost savings will be realized.

我們正運用最資深、最有經驗的員工，協助我們在今年稍晚開始實現這些工作的效益。這也是我們比以往更有信心至少可實現1億美元成本節省的另一個原因。

As part of the Growth and Value Plan, we sought opportunities to monetize assets that do not fit with our strategic thrust. That is why we sold our Broadcasting Groups to E.W. Scripps at the end of 2011. We generated excellent value for this asset, $212 million in cash and a pre-tax gain of $123 million.

作為「成長與價值計畫」的一部分，我們尋找將不符合我們策略主軸的資產變現的機會。因此，我們在2011年底將我們的廣播事業群出售給 E.W.Scripps。我們為該資產創造了極佳價值：2.12億美元現金，以及1.23億美元的稅前收益。

We also want to make strategic investments in areas that we believe will drive future growth. A common theme is our creation of valuable benchmarks for participants in capital, commercial and commodity markets that become deeply embedded in the workflow of our customers.

我們也希望在我們相信能帶動未來成長的領域進行策略性投資。共同主題是：我們為資本、商業與商品市場參與者打造有價值的基準指標，並使其深度嵌入客戶的工作流程之中。

There are few better examples than Platts and its role in global oil markets. And with new growth opportunities in the trading of gas, steel and iron ore, we expanded the Platts platform by acquiring BENTEK Energy and Steel Business Briefing in 2011.

幾乎沒有比 Platts 及其在全球石油市場中的角色更好的例子。隨著天然氣、鋼鐵與鐵礦石交易出現新的成長機會，我們於2011年透過收購 BENTEK Energy 與 Steel Business Briefing 擴展了 Platts 平台。

And in November, we announced another important strategic milestone for our Growth and Value Plan and that was the joint venture partnership with the Chicago Mercantile Exchange that brings together S&P Indices with Dow Jones indexes once the deal is closed.

此外，在11月，我們宣布了「成長與價值計畫」的另一項重要策略里程碑：與芝加哥商品交易所（CME）的合資夥伴關係；交易完成後，該合作將把 S&P Indices 與道瓊指數整合在一起。

The new venture provides S&P Indices with a more diversified and enhanced revenue stream. And instead of paying S&P Indices fixed fee per trade, the CME will pay a share of the profits that it makes on trading and clearing of equity-based futures, swaps and options on the futures.

新合資企業將為 S&P Indices 提供更多元且更強化的營收來源。而且，CME 不再以每筆交易向 S&P Indices 支付固定費用；相反地，CME 將就其在以股票為基礎的期貨、交換（swaps）及期貨選擇權的交易與結算所獲得的利潤，支付一定比例的分潤。

The proposed joint venture is currently undergoing review by the Department of Justice. Subject to regulatory approval and customary closing conditions, we expect the joint venture to close by the end of the second quarter.

該合資提案目前正接受司法部審查。在取得監管核准並符合慣常交割條件的前提下，我們預期合資企業將於第二季末前完成交割。

In the midst of all this activity, we continue to return wealth to shareholders through the payment of dividends in an active share repurchase program. We completed $1 billion in share repurchases over the course of 2011 and, late in the year, we initiated an accelerated $500 million repurchase transaction; that adds up to $1.5 billion for the year including $845 million in the fourth quarter.

在這一連串活動之中，我們仍透過發放股利與積極的股票回購計畫，持續回饋股東。我們在2011年全年完成10億美元的股票回購，並於年底啟動一筆5億美元的加速回購交易；合計全年達15億美元，其中第四季為8.45億美元。

As you can see, we covered a lot of ground in a short period so we can create later this year two independent public companies that as stand-alones will increase their respective growth prospects and deliver shareholder value.

如各位所見，我們在短時間內推進了許多工作，目標是在今年稍晚成立兩家獨立的上市公司；作為各自獨立的公司，將提升各自的成長前景並為股東創造價值。

In recent months, the Board of Directors of The McGraw-Hill Companies has been engaged in a number of important initiatives as part of this Growth and Value Plan and has been taking into consideration constructive input from major shareholders including JANA Partners, Ontario Teachers' Pension Fund plan among others.

近幾個月來，McGraw-Hill Companies 董事會作為「成長與價值計畫」的一部分，推動多項重要倡議，並考量包括 JANA Partners、Ontario Teachers' Pension Fund 計畫等主要股東所提供的建設性意見。

The Company is committed to continue working to deliver value to all shareholders by continually evaluating opportunities to improve its corporate structure and portfolio of businesses, aggressively pursuing additional cost reduction initiatives, accelerating growth and returning substantial value to shareholders through share repurchases and dividends.

公司承諾將持續努力，透過不斷評估改善公司架構與事業組合的機會、積極推動進一步的成本降低措施、加速成長，並透過股票回購與股利向股東回饋可觀價值，以為所有股東創造價值。

Now I want to discuss the performance of McGraw-Hill Financial in a little bit more depth. A highlight of 2011 is the demonstrated ability of the operating company, that we will call McGraw-Hill Financial, to navigate successfully through the volatility that characterized capital markets for most of the year and still deliver a solid performance.

接下來我想更深入地討論 McGraw-Hill Financial 的表現。2011年的一大亮點，是我們將稱之為 McGraw-Hill Financial 的營運公司，展現出在全年大部分時間資本市場波動的環境下仍能成功應對並交出穩健成績的能力。

Revenue for the recently named McGraw-Hill Financial increased 9% and adjusted operating profits improved by 7% in 2011. A growth driver is the operation we now call S&P Capital IQ/S&P Indices. We have succeeded in creating a scalable organization with a unique integrated offering for global financial markets. In 2011, it proved to be a resilient revenue and earnings generator and we expect another good year in 2012.

新命名的 McGraw-Hill Financial 之營收在2011年成長9%，調整後營業利益提升7%。成長動能之一來自我們現在稱為 S&P Capital IQ/S&P Indices 的業務。我們成功打造出一個可擴展的組織，為全球金融市場提供獨特的整合式產品組合。2011年證明其為具韌性的營收與獲利引擎，我們預期2012年也將是表現良好的一年。

Incremental value is being created by leveraging scale, improving of the vertical operations and creating horizontal solutions. S&P Capital IQ and S&P Indices, which was formerly known as McGraw-Hill Financial segment, grew its top-line at a double-digit rate in 2011. Revenue was up 14% for the year and grew by 11% excluding the acquisitions of themarkets.com. The operating margin expanded to 30%, up from 26.5% in 2010.

透過發揮規模效益、改善垂直營運並打造水平解決方案，我們正在創造增量價值。S&P Capital IQ 與 S&P Indices（先前稱為 McGraw-Hill Financial 事業部）在2011年以雙位數成長其營收。全年營收成長14%；若排除收購 themarkets.com 的影響，營收成長11%。營業利益率擴大至30%，高於2010年的26.5%。

Subscriptions account for 73% of the total revenue and grew by 13% in 2011, which is a good sign for performance in 2012. One of the crown jewels is S&P Indices, which produced revenue of $323 million in 2011, an 18% year-over-year increase.

訂閱收入占總營收的73%，並於2011年成長13%，這對2012年的表現是個好兆頭。其中一項皇冠上的明珠是 S&P Indices，2011年營收為3.23億美元，年增18%。

S&P Indices generates revenue from a variety of sources. There are fees based on assets under management and exchange traded funds that are linked to S&P Indices. At year-end 2011, there were $314 billion in assets under management in exchange traded funds based on S&P Indices and that's a year-over-year increase of 4.5%.

S&P Indices 的營收來源多元。其中包括依據與 S&P Indices 連結之受管理資產（AUM）與交易所交易基金（ETF）所收取的費用。截至2011年年底，基於 S&P Indices 的 ETF 受管理資產為3,140億美元，年增4.5%。

There are royalties based on the trading volume of derivative contracts listed on the Chicago Mercantile Exchange, the Chicago Board Options Exchange, the Australian Securities Exchange and the Montreal Exchange. In the fourth quarter, the average daily volume of more than 3.7 million contracts for the major exchange traded derivatives represented a 26% year-over-year increase and we're paid every time a contract is traded.

此外，還有依據在芝加哥商品交易所、芝加哥期權交易所、澳洲證券交易所與蒙特婁交易所上市之衍生性契約交易量所收取的權利金。在第四季，主要交易所交易衍生品的日均成交量超過370萬口合約，年增26%，且每當合約成交時我們都會獲得報酬。

There are also fees for over-the-counter derivatives and retail structured products. And finally, there are data subscriptions for our information and research.

另外也有場外（OTC）衍生品與零售結構型產品的費用。最後，還有我們資訊與研究的資料訂閱收入。

Revenue for S&P Capital IQ, which includes the Integrated Desktop Solutions, Enterprise Solutions and research and analytics, increased by 13% in 2011 compared to 2010. Capital IQ, the Global Credit Portal and the Global Data Solutions all grew in 2011. Capital IQ gained share and increased its number of clients to more than 3,800 and that's a 14% year-over-year increase.

S&P Capital IQ（包含整合式桌面解決方案、企業解決方案以及研究與分析）之營收在2011年較2010年成長13%。Capital IQ、Global Credit Portal 與 Global Data Solutions 均於2011年成長。Capital IQ 擴大市占，客戶數增加至超過3,800家，年增14%。

Let me move over to Standard & Poor's Ratings, and at Standard & Poor's Ratings, despite lackluster new issue dollar volume in the closing months of 2011, and for the most part in the face of the European debt crisis and concerns over an economic downturn, we still produced a 4% increase in revenue for the year.

接著我談談 Standard & Poor's Ratings。在 Standard & Poor's Ratings，儘管2011年末幾個月新發行金額表現平平，且多數時間面臨歐洲債務危機與對經濟下行的擔憂，我們全年營收仍成長4%。

Indeed, the first half of 2011 was quite strong with revenue growth of 14%, but revenue did tail off in the second half declining by 5%. Excluding fourth-quarter restructuring charges, operating profit in 2011 declined by 4% to $728 million with an operating margin of 41%.

事實上，2011年上半年相當強勁，營收成長14%，但下半年營收確實走弱，下降5%。若排除第四季重組費用，2011年營業利益下降4%至7.28億美元，營業利益率為41%。

Once again, non-transaction revenue proved its durability growing by 8% in 2011 to $1.1 billion and accounting for 63% of Standard & Poor's Rating's total revenue. Non-transaction revenue includes annual contracts, surveillance fees and a royalty from S&P Capital IQ/S&P Indices to distribute the content.

再次地，非交易收入證明其耐久性：2011年成長8%至11億美元，並占 Standard & Poor's Ratings 總營收的63%。非交易收入包括年度合約、監測費用，以及來自 S&P Capital IQ/S&P Indices 的權利金，用以分發內容。

But the growth of non-transaction revenue was partially offset by a 2% decline in transaction revenue in 2011. We expect non-transaction revenue to grow again in 2012 and transaction revenue faces some challenging comparisons after a very, very strong first half in 2011.

但2011年交易外收入的成長，部分被交易收入下滑2%所抵銷。我們預期2012年交易外收入將再度成長，而交易收入在2011年上半年非常、非常強勁之後，將面臨一些具挑戰性的比較基期。

We note that regulatory costs for our QCCR program came in essentially on target in 2011 and were expected to increase slightly this year for 2012. Looking forward, we remain encouraged by the longer-term outlook for the bond market. There is a huge pipeline of maturing global corporate debt that will need to be refinanced over the next several years.

我們注意到，2011年我們QCCR計畫的監管成本基本符合目標，且預期在2012年今年將小幅增加。展望未來，我們對債券市場的長期前景仍感到鼓舞。未來幾年將有大量到期的全球企業債務需要再融資。

In Europe, increasing bank capital requirements will continue to shift corporate financing from bank loans to the public debt market. The recovery of structured finance markets remains problematic.

在歐洲，銀行資本要求的提高將持續使企業融資從銀行貸款轉向公開債務市場。結構性融資市場的復甦仍然問題重重。

Most activity in residential mortgage-backed securities and commercial mortgage-backed securities depends on the recovery of the residential and commercial real estate market. But we do expect a pickup in auto and credit card issuance to lead to improvement in the asset backed securities market both in the United States and in Europe.

住宅抵押貸款支持證券與商業抵押貸款支持證券的大部分活動，取決於住宅與商用不動產市場的復甦。但我們確實預期汽車與信用卡發行量回升，將帶動美國與歐洲資產支持證券市場的改善。

We do anticipate continued volatility in 2012, but we remain optimistic about the growth potential longer-term. We continue to make progress in regulatory and legal matters. In Europe, there is mounting criticism of some of the features of CRA3. Now that's the European Commission's latest proposal for regulating rating agencies.

我們預期2012年波動仍將持續，但對長期成長潛力仍保持樂觀。我們在監管與法律事項上持續取得進展。在歐洲，對CRA3部分特徵的批評聲浪正在升高。這是歐盟執委會最新提出的信用評等機構監管提案。

Significantly, the pushback is coming from market participants and the European Securities and Markets Authority, or ESMA. A lot of criticism is focused on the issue of proposed mandatory rotation of coverage among rating agencies for certain periods.

值得注意的是，反彈聲音來自市場參與者以及歐洲證券及市場管理局（ESMA）。許多批評聚焦於一項提案：要求在特定期間內，某些評等業務必須在評等機構之間強制輪替。

It is still early days in this latest round with the European Commission, but it is already clear that its new proposals are coming under significant criticism from a wide range of parties who are concerned about the potential for market disruption and obviously unintended consequences.

在與歐盟執委會的這一輪最新討論中仍屬初期，但已清楚可見，其新提案正遭到廣泛各方的強烈批評；各方擔憂可能造成市場干擾，並且顯然會帶來非預期的後果。

Since our last report, the number of lawsuits that have been dismissed outright has grown to 24 and 10 have been voluntarily withdrawn, seven dismissals by lower courts have been reaffirmed by higher courts. We will be appealing the latest court decision in the CalPERS case.

自我們上次報告以來，被法院直接駁回的訴訟數量已增至24件，另有10件已自願撤回；下級法院作出的7項駁回裁定亦已獲上級法院維持。我們將就CalPERS案最新的法院裁定提出上訴。

We strongly disagree with the court's ruling earlier this month that CalPERS had made a sufficient showing to allow the case to proceed. There will be no pretrial discovery while the appeal is pending and the process could take another 12 to 18 months.

我們強烈不同意本月稍早法院的裁定，認為CalPERS已提出足夠的初步證明，使案件得以繼續進行。在上訴審理期間不會進行審前證據開示，而整個程序可能還需要再花12至18個月。

On January 23, we filed a motion for summary judgment in the Abu Dhabi case. Any decision on our motion is probably many months away and, as we said consistently from the very beginning and it is proving out, we continue to believe that the legal risk is low.

1月23日，我們在阿布達比案中提出簡易判決動議。法院對我們動議作出任何裁定可能仍需數月時間；而且正如我們從一開始就一再表示、且目前也證明如此，我們仍相信法律風險偏低。

Consistent with the growth and value plan strategy and the divestiture of broadcasting, we report results for Commodities and Commercial Brands which were formally named in the information and media segment. Revenue for all of these brands grew by 10% in 2011 and, excluding restructuring charges, operating profit was up 13% with an operating margin of 21%.

配合成長與價值計畫策略以及廣播業務的剝離，我們改以「大宗商品」與「商業品牌」呈報業績；這些業務先前正式歸類於資訊與媒體事業群。2011年這些品牌的營收合計成長10%；若排除重整費用，營業利益成長13%，營業利益率為21%。

These operations are increasingly digital and based on subscriptions. Total subscription revenue grew by 13% in 2011 and now accounts for 63% of the revenue.

這些營運日益數位化，並以訂閱為基礎。2011年訂閱收入總額成長13%，目前已占營收的63%。

In Commodities, Platts completed another strong year by growing 22% to $419 million. Excluding the acquisition of BENTEK Energy and Steel Business Briefing, revenue was up 15% for 2011. Volatility in energy prices drives demand for Platts' proprietary content, including news, price assessments and analytics for trading decisions.

在大宗商品方面，Platts再度交出亮眼的一年，營收成長22%至4.19億美元。若排除收購BENTEK Energy與Steel Business Briefing的影響，2011年營收成長為15%。能源價格的波動帶動對Platts專有內容的需求，包括新聞、價格評估以及用於交易決策的分析工具。

Platts obviously is one of our gems. We have steadily built this business over the years creating high-value and double-digit growth. In fact, Platts has produced a compound annual growth rate since 1994 of 12%, that's 17 years with a compound annual growth rate of 12%. We like the outlook for this business.

Platts顯然是我們的瑰寶之一。多年來我們穩健打造這項業務，創造高價值與雙位數成長。事實上，自1994年以來，Platts的年複合成長率為12%，也就是連續17年維持12%的年複合成長率。我們看好這項業務的前景。

Revenue for Commercial, which includes JD Power, McGraw-Hill Construction and Aviation Week, grew by 2% in 2011 to $477 million. Continued strength in emerging markets including China, recovery in Western Europe and growth in the US is increasing demand for automotive studies. New digital products like SpecShare, BuildShare and BidPro will be key factors in the recovery of the McGraw-Hill Construction. More are on the way.

商業業務（包含JD Power、McGraw-Hill Construction與Aviation Week）2011年營收成長2%至4.77億美元。新興市場（包括中國）的持續強勁、西歐復甦以及美國成長，正推升對汽車研究的需求。SpecShare、BuildShare與BidPro等新的數位產品，將是McGraw-Hill Construction復甦的關鍵因素。更多產品也將陸續推出。

We expect another year of growth in Commodities and Commercial markets in 2012. These highlights will begin to give you some indication what we are planning overall for McGraw-Hill Financial.

我們預期2012年大宗商品與商業市場將再成長一年。這些重點將開始讓各位了解我們對McGraw-Hill Financial整體規劃的一些方向。

As this slide illustrates, we plan to report results for five lines of business. In today's earnings release, we provided tables recapping quarterly revenue for 2011 and 2010 for each of these five lines of business.

如本投影片所示，我們計畫以五條業務線呈報業績。在今天的財報新聞稿中，我們提供表格彙總這五條業務線於2011年與2010年的各季營收。

As we move closer to separation, close our deal with the Chicago Mercantile Exchange and realign our cost structure, we will provide greater transparency on the bottom-line contribution from these five lines of businesses as well.

隨著我們更接近分拆、完成與芝加哥商業交易所的交易並重新調整成本結構，我們也將就這五條業務線對最終盈餘（bottom line）的貢獻提供更高的透明度。

Let me hold it there and let me move over to McGraw-Hill Education. In 2011, we have a tale of two markets and repositioning of Education for the digital world, growth in higher education, professional and international spurred by digital products and services and a decline in elementary high school education.

我先說到這裡，接著轉到McGraw-Hill Education。2011年我們面臨兩個市場的不同走勢，並推動教育事業重新定位以因應數位世界：高等教育、專業與國際市場在數位產品與服務帶動下成長，而中小學教育則下滑。

A strong finish in the US higher education marketplace helped produce 4% revenue growth for us to $516 million for McGraw-Hill Education in the fourth quarter. Revenue for the year declined by 6% to $2.3 billion. Tight expense controls, lower prepublication amortization, lower reserve requirements and reduced selling and marketing expenses were all factors in McGraw-Hill Education's 2011 performance.

美國高等教育市場在年末強勁收尾，帶動McGraw-Hill Education第四季營收成長4%至5.16億美元。全年營收下滑6%至23億美元。嚴格的費用控管、較低的出版前攤銷、較低的準備金需求，以及銷售與行銷費用下降，都是McGraw-Hill Education 2011年表現的因素。

The growth of digital products and services is fundamentally changing higher education and professional markets. In US higher education, our sales of digital products and services grew by more than 40% and enabled us to gain share in 2011. Digital sales now account for about 20% of our higher education revenue. Homework management products for students are key to this rapid growth.

數位產品與服務的成長，正從根本上改變高等教育與專業市場。在美國高等教育市場，我們的數位產品與服務銷售成長超過40%，使我們在2011年得以提升市占。數位銷售目前約占我們高等教育營收的20%。面向學生的作業管理產品是這波快速成長的關鍵。

In professional markets, we are also experiencing strong double-digit growth for e-books and for subscriptions to online professional products. In 2011, nearly 30% of our revenue in professional markets came from e-books, online subscriptions and apps for mobile devices.

在專業市場方面，我們的電子書以及線上專業產品訂閱也呈現強勁的雙位數成長。2011年，我們在專業市場近30%的營收來自電子書、線上訂閱以及行動裝置App。

The digital integration of curricula, technology and distribution is creating significant new global growth opportunities for McGraw-Hill Education by providing new revenue streams including more subscription-based businesses while lowering our cost.

課程內容、科技與通路的數位整合，正為McGraw-Hill Education創造顯著的全球新成長機會：在降低成本的同時，提供新的收入來源，包括更多以訂閱為基礎的業務。

The digital evolution is moving more slowly in the elementary and the high school market, but it is picking up speed. Last June, we became the first educational publisher to launch completely digital cloud-based curriculums with our CINCH -- that's C-I-N-C-H -- CINCH learning program for science and math.

在中小學市場，數位演進的速度較慢，但正在加速。去年6月，我們成為第一家教育出版商，透過CINCH——也就是C-I-N-C-H——CINCH學習計畫，推出完全數位化、以雲端為基礎的科學與數學課程。

These programs are device agnostic, accessible on any computer, tablet or mobile service and, as announced earlier this month; we are working with Apple to create enhanced interactive programs specifically for the iPad. Five high school math and science titles are already available and we expect to double this number during the year.

這些課程不受裝置限制，可在任何電腦、平板或行動服務上存取；並且如本月稍早所宣布，我們正與Apple合作，為iPad打造強化的互動式課程。目前已有五個高中數學與科學書目可供使用，我們預期今年將把數量加倍。

Our goal is to improve learning outcomes by making learning more accessible, personalized and engaging. These dynamics should help McGraw-Hill Education improve its results in 2012.

我們的目標是透過讓學習更易取得、更個人化且更具吸引力，來改善學習成果。這些動態應有助於McGraw-Hill Education在2012年改善其業績表現。

The decline in school education reflects historically low funding for US elementary and high school markets. Sales in the El-Hi market in 2011 decreased by 9.4% to about $3.3 billion according to the Association of American Publishers.

學校教育的下滑反映出美國小學與高中（El-Hi）市場的資金投入處於歷史低點。根據美國出版商協會（Association of American Publishers），2011 年 El-Hi 市場銷售額下降 9.4%，至約 33 億美元。

Our performance was heavily influenced by a decision not to participate in several state adoptions due to the uncertainty over funding and to challenging comparisons in Texas and Florida where large orders in 2010 did not repeat due to changes in subject categories being purchased.

由於資金來源不確定，我們決定不參與若干州的採用案（state adoptions），再加上德州與佛州面臨艱難的比較基期——2010 年的大額訂單因採購科目類別變更而未再重現——因此我們的表現受到重大影響。

We will ramp our participation in the new state adoption market in 2012 to 96%, that's an increase from 75% in 2011. But we expect another challenging year for El-Hi publishing as the size of state new adoption markets will decline by an estimated 40%.

2012 年我們將把在新的州採用市場中的參與率提升至 96%，高於 2011 年的 75%。但我們預期 El-Hi 出版業仍將面臨另一個艱難年度，因各州新的採用市場規模估計將下滑 40%。

So let's sum up. In 2011, we produced enormous change in a short period of time and recorded the second best results in our history. This year, promises to be even more momentous as we prepare for the introduction of two separate companies. We see another challenging and volatile year in our markets, but I'm confident in the strength of our businesses and the leadership team that was tested in 2011.

那麼讓我們總結一下。2011 年，我們在短時間內推動了巨大的變革，並創下公司史上第二佳的業績。今年在我們準備推出兩家獨立公司之際，勢必更加關鍵。我們的市場仍將面臨充滿挑戰且波動的一年，但我對我們業務的實力以及在 2011 年經受考驗的領導團隊充滿信心。

On a consolidated basis for the McGraw-Hill companies, our baseline earnings per share outlook for 2012 is $3.25 to $3.35. Actual results will be significantly influenced by the timing of separation and the additional cost reduction actions that are still ahead of us -- but $3.25 to $3.35 representing 12% to 15% over 2011. We will provide regular updates on our progress throughout the year.

以 McGraw-Hill 公司合併基礎計算，我們對 2012 年的基準每股盈餘展望為 3.25 至 3.35 美元。實際結果將受到分拆時點以及後續仍將推進的額外成本削減措施之顯著影響——但 3.25 至 3.35 美元代表較 2011 年成長 12% 至 15%。我們將在全年定期提供進度更新。

Now that at this point, let me turn it over to Jack Callahan and he's going to give us a few more details on our financial performance. Jack?

接下來，在此我把時間交給 Jack Callahan，他將就我們的財務表現提供更多細節。Jack？

Thank you, Terry. 2011 was certainly an active and productive year at the McGraw-Hill companies. Let's start off with a review of fourth-quarter segment operating performance and I want to provide additional detail to the summary Terry provided.

謝謝你，Terry。2011 年對 McGraw-Hill 公司而言確實是活躍且富有成果的一年。我們先從第四季各事業部門的營運表現回顧開始，我也想就 Terry 的摘要補充更多細節。

McGraw-Hill Education had an outstanding quarter with revenue growing 4% or $20 million and expenses declining $37 million, yielding adjusted operating profit of $72 million, an increase year on year $57 million. This step-up in performance was led by the higher education professional and international group with a revenue increase of 8% or $27 million in the quarter. This was partially offset by a modest decline at the school education group.

McGraw-Hill Education 本季表現出色，營收成長 4%（或 2,000 萬美元），費用減少 3,700 萬美元，使調整後營業利益達 7,200 萬美元，年增 5,700 萬美元。這項績效提升主要由高等教育、專業與國際事業群帶動，該事業群本季營收成長 8%（或 2,700 萬美元）。部分增幅被學校教育事業群的小幅下滑所抵銷。

Fourth-quarter revenue growth was particularly strong in higher ed, aided by custom publishing and strong digital sales with higher ed digital sales growing more than 40%. Additionally, higher ed and professional both benefited from a significant decline in returns. Expenses benefited from tight overall expense control, lower prepublication amortization, lower reserve requirements and lower selling and marketing expense.

第四季營收成長在高等教育領域尤其強勁，受惠於客製化出版以及強勁的數位銷售，高等教育數位銷售成長超過 40%。此外，高等教育與專業業務也同樣受益於退貨的大幅下降。費用方面則受惠於整體嚴格的費用控管、較低的出版前攤銷、較低的準備金需求，以及較低的銷售與行銷費用。

Turning now to McGraw-Hill Financial -- the volatility on the global credit markets certainly had an impact on quarterly results. Revenue was essentially flat and adjusted operating profit declined 8%.

接著看 McGraw-Hill Financial——全球信用市場的波動確實對本季結果造成影響。營收基本持平，調整後營業利益下降 8%。

Let's take a look at the fourth-quarter results across McGraw-Hill Financial. Overall, a decline in Standard & Poor's ratings offset continued (technical difficulty) other lines of business. The global credit markets were down significantly in the fourth quarter.

我們來看看 McGraw-Hill Financial 各業務的第四季結果。整體而言，Standard & Poor's 評級業務的下滑抵銷了其他業務線的持續（技術困難）。全球信用市場在第四季顯著下滑。

For example, the high-yield market globally was down by almost two-thirds. As a result, S&P Rating's revenue declined to 8% driven by a 26% decline in transaction revenue. This resulted in a $49 million decline in adjusted operating profit.

例如，全球高收益市場下滑了近三分之二。因此，S&P Ratings 的營收下降 8%，主要由交易型營收下降 26% 所致。這使調整後營業利益減少 4,900 萬美元。

S&P Capital IQ and S&P Indices had another strong quarter. Revenue grew 8% versus the toughest comps of the year and the lapping of the markets.com acquisition that closed in the fourth quarter a year ago. Operating profit driven in part by the continuing leverage of increasing integration across these businesses grew 29%.

S&P Capital IQ 與 S&P Indices 再度繳出強勁的一季。在全年最艱難的比較基期下，以及去年第四季完成 markets.com 收購案所帶來的基期影響消退（lapping）之下，營收仍成長 8%。在這些業務間持續提升整合所帶來的槓桿效益部分推動下，營業利益成長 29%。

The Commodities and Commercial lines of business revenue also grew 8% driven by continued momentum in Platts, aided by the acquisitions of BENTEK Energy and Steel Business Briefing Group. Commercial revenue declined modestly in the quarter largely due to the construction business, although the introduction of new digital products has begun to mitigate the contraction.

大宗商品與商業（Commodities and Commercial）業務線的營收也成長 8%，主要由 Platts 的持續動能帶動，並受惠於收購 BENTEK Energy 與 Steel Business Briefing Group。商業業務營收在本季小幅下滑，主要因建築業務所致；不過，新數位產品的推出已開始緩解這種萎縮。

Overall, Commodities and Commercial adjusted operating profit grew 2% for the quarter. Margins were impacted a bit by the integration of the acquisitions and the timing of investments.

整體而言，大宗商品與商業業務本季調整後營業利益成長 2%。利潤率受到收購整合以及投資時點的些許影響。

Let's now review the drivers of consolidated profit growth both for the fourth quarter and the full year. Adjusted corporate expense was $54 million in the quarter, an increase of $7 million from the prior year, largely driven by increased professional fees and incentive compensation. For the full year, adjusted corporate expense increased $9 million or 5% to $173 million.

接下來我們回顧第四季與全年合併獲利成長的驅動因素。本季調整後公司費用為 5,400 萬美元，較去年增加 700 萬美元，主要由專業服務費用與獎酬薪酬增加所致。全年調整後公司費用增加 900 萬美元（或 5%）至 1.73 億美元。

2011 adjusted corporate expense excludes $17 million in restructuring charges for a workforce reduction of approximately 120 positions as we begin to realign corporate costs. 2011 adjusted corporate expense also excludes $10 million for one-time separation-related expenses.

2011 年調整後公司費用不包含 1,700 萬美元的重整費用，該費用與約 120 個職位的人力縮減相關，因我們開始重新調整公司成本結構。2011 年調整後公司費用亦不包含 1,000 萬美元的一次性分拆相關費用。

The excellent results for McGraw-Hill Education drove an increase in the fourth-quarter consolidated adjusted operating profit of 8%. For the full year, consolidated adjusted operating profit was $1.5 billion, up 5% from last year.

McGraw-Hill Education 的優異表現推動第四季合併調整後營業利益成長 8%。全年合併調整後營業利益為 15 億美元，較去年成長 5%。

Net interest expense was $18 million in Q4, a modest decline versus prior year. For the full year, net interest expense was $75 million, a decline of $7 million from the prior year. Our effective tax rate from continuing operations was 36.3% both for the fourth quarter and the full year, flat versus 2010.

第四季淨利息費用為 1,800 萬美元，較去年小幅下降。全年淨利息費用為 7,500 萬美元，較去年減少 700 萬美元。持續營運的有效稅率在第四季與全年均為 36.3%，與 2010 年持平。

Net income attributable to non-controlling interest was $7 million in the fourth quarter and $23 million for the year; CRISIL represents the overwhelming majority of this number. Adjusted net income from continuing operations grew 10% in the fourth quarter to $184 million. Full-year adjusted net income was $883 million, an increase of 6%.

歸屬於非控制權益的淨利在第四季為 700 萬美元、全年為 2,300 萬美元；其中 CRISIL 佔了絕大部分。持續營運的調整後淨利在第四季成長 10% 至 1.84 億美元。全年調整後淨利為 8.83 億美元，成長 6%。

Our diluted weighted average shares outstanding for the quarter was 292.4 million, a 17.9 million decrease from the prior year and 11.3 million decrease from the third quarter. This decline is due to share repurchases which more than offset equity-related awards.

本季稀釋後加權平均流通股數為 2.924 億股，較去年減少 1,790 萬股，較第三季減少 1,130 萬股。此一減少係因庫藏股回購，其效果超過股權相關獎酬的增量。

The $500 million accelerated share repurchase transaction that we entered into on December 7 had a minimal impact on the fourth-quarter shares outstanding. Adjusted earnings per share from continuing operations for the fourth quarter grew 17% to $0.63; for the full year, adjusted earnings per share was $2.91, up 9% versus 2010.

我們於 12 月 7 日進行的 5 億美元加速股份回購交易，對第四季流通股數的影響極小。第四季持續營運的調整後每股盈餘成長 17% 至 0.63 美元；全年調整後每股盈餘為 2.91 美元，較 2010 年成長 9%。

Let me spend a minute discussing several one-time items related to the Growth and Value Plan. We completed the sale of non-core Broadcasting Group to E.W. Scripps for $212 million in cash providing a one-time pre-tax gain of $123 million. This is shown as part of discontinued operations.

我花一點時間說明幾項與「成長與價值計畫」（Growth and Value Plan）相關的一次性項目。我們已完成將非核心的 Broadcasting Group 出售給 E.W.Scripps，現金對價 2.12 億美元，產生一次性稅前利益 1.23 億美元。此項目列示於停業單位（discontinued operations）之中。

We also implemented Wave 1 of targeted cost reductions by eliminating approximately 800 positions including activities in Education, corporate and shared services and selected businesses with McGraw-Hill Financial. We incurred $66 million in restructuring charges with these actions.

我們也推動了目標性成本削減的第一波（Wave 1），裁撤約 800 個職位，涵蓋 Education、公司與共享服務，以及 McGraw-Hill Financial 旗下的部分業務。上述行動產生 6,600 萬美元的重整費用。

Lastly, we incurred $10 million in one-time separation costs. These costs are professional fees tied directly to the work underway to separate the two businesses. Restructuring charges and one-time separation costs are both excluded from adjusted earnings. We anticipate additional restructuring and separation costs throughout 2012.

最後，我們發生了1,000萬美元的一次性離職分離成本。這些成本為專業服務費用，且與目前正在進行的兩項業務分拆工作直接相關。重組費用與一次性分拆成本皆不納入調整後盈餘。我們預期在2012年期間仍將產生額外的重組與分拆成本。

Now let me turn to cash flow. As a reminder, we define free cash flow as GAAP cash provided by operating activities less capital expenditures and dividends. Our computation of free cash flow also excludes $48 million in taxes paid on the gain from the disposition of the Broadcasting Group.

現在我來談現金流。提醒一下，我們將自由現金流定義為依GAAP之營業活動提供的現金，扣除資本支出與股利。我們對自由現金流的計算亦排除因處分廣播事業群（Broadcasting Group）所產生之處分利益而支付的4,800萬美元稅款。

We generated cash flow of $1.1 billion before dividends. After dividends, free cash flow was $807 million versus $881 million in 2010. The modest decline was driven by a challenging end of year working capital comparison.

在支付股利之前，我們產生了11億美元的現金流。支付股利後，自由現金流為8.07億美元，低於2010年的8.81億美元。這一小幅下滑主要是由於年末營運資金比較基期較具挑戰所致。

Turning now to capital allocation. We spent $1.7 billion on acquisitions and share repurchases in 2011, $200 million for acquisitions, $1.5 billion for share repurchases. The most notable acquisitions were BENTEK Energy and Steel Business Briefing Group; both acquisitions added to Platts' growing platform adding critical capability in natural gas and iron ore markets.

接著談資本配置。2011年我們在併購與庫藏股回購上共支出17億美元，其中2億美元用於併購、15億美元用於股票回購。最值得一提的併購為BENTEK Energy與Steel Business Briefing Group；兩項併購均強化了Platts持續成長的平台，並在天然氣與鐵礦石市場增添關鍵能力。

Share repurchases were $845 million in the fourth quarter including $500 million through an accelerated share repurchase program. Excluding the accelerated share program, we spent $1 billion on share repurchases in 2011 acquiring 24.7 million shares at an average price of $40.48 per share.

第四季股票回購金額為8.45億美元，其中包含透過加速股票回購計畫（accelerated share repurchase program）進行的5億美元。若不含加速回購計畫，2011年我們在股票回購上支出10億美元，以每股平均40.48美元的價格回購2,470萬股。

We have received a substantial majority of the shares underlying the accelerated share repurchase transaction. This transaction will be complete in early 2012.

我們已收到加速股票回購交易所對應股份中的絕大多數。該交易將於2012年初完成。

The Corporation finished the year with 276 million basic shares outstanding. Fully diluted shares outstanding at December 31, 2011 were approximately 283 million. Adjusted for the estimated full impact of the accelerated share repurchase transaction, approximately 23 million shares remain under our existing share repurchase authorization.

公司在年底時的基本流通股數為2.76億股。截至2011年12月31日，完全稀釋後流通股數約為2.83億股。若按加速股票回購交易的估計完整影響調整後，在我們現有的股票回購授權額度下，約仍剩餘2,300萬股可回購。

I'll now provide an update on separation. Focus on separation before the end of 2012 requires coordination of multiple complex work streams. Our cost reduction program involves disaggregating shared services and establishing two appropriately sized corporate centers.

我現在提供分拆進度更新。要在2012年底前完成分拆，需要協調多條複雜的工作流程。我們的成本削減計畫包含拆分共享服務，並建立兩個規模適當的公司總部中心。

Wave 1 of the cost reductions are well under way based on Q4 restructuring and the benefit plan realignment. Additional waves of cost reductions are anticipated during 2012 targeting at least $100 million in total cost reductions on a run rate basis by the end of the year. As I mentioned earlier, restructuring and one-time separation costs should be anticipated in 2012.

第一波成本削減已在進行中，係以第四季重組以及福利計畫重新調整為基礎。預期2012年將有更多波次的成本削減，目標是在年底以前以年化（run rate）基礎達成至少1億美元的總成本削減。如我先前所提，2012年應預期會有重組與一次性分拆成本。

Let me provide some additional color on our guidance for 2012. Our 2012 baseline guidance is provided on a going concern basis. It includes the benefits of the Wave 1 cost reduction program. It excludes the impact of additional restructuring and one-time separation costs. Our EPS guidance is not dependent on additional share repurchase. We will provide regular updates as new leadership teams are formed and implementation plans are finalized.

我再補充一些我們對2012年指引的說明。我們2012年的基準指引是以持續經營（going concern）為基礎提供。其中包含第一波成本削減計畫的效益。但不包含額外重組與一次性分拆成本的影響。我們的每股盈餘（EPS）指引不依賴於額外的股票回購。隨著新的領導團隊成形及執行計畫定案，我們將定期提供更新。

More specifically, let me provide some details on our growth expectations for 2012. For McGraw-Hill Financial overall, we expect high-single-digit revenue and adjusted operating profit growth. S&P Capital IQ and Indices and Commodities and Commercial are expected to continue to grow strongly, consistent with our expectations for McGraw-Hill Financial overall.

更具體地說，我來提供我們對2012年成長預期的一些細節。就McGraw-Hill Financial整體而言，我們預期營收與調整後營業利益將呈現高個位數成長。S&P Capital IQ以及Indices and Commodities與Commercial預期將持續強勁成長，與我們對McGraw-Hill Financial整體的預期一致。

Our current guidance for S&P Ratings is mid-single-digit growth. S&P Ratings will benefit from continued growth in non-transaction revenue. Transaction revenue will benefit from the pipeline of maturing global corporate debt that we'll need to be refinancing, though volatility in the capital markets makes quarterly timing difficult to project. As Terry indicated earlier, first-half comparisons for the ratings business will be challenging.

我們目前對S&P Ratings的指引為中個位數成長。S&P Ratings將受惠於非交易型收入的持續成長。交易型收入將受惠於即將到期的全球企業債務再融資需求所形成的案源（pipeline），但資本市場波動使得季度時點難以預測。如Terry先前所指出，評等業務上半年比較將具挑戰。

McGraw-Hill Education revenue and profit are expected to be relatively flat versus 2011 as a result of the challenging El-Hi market. Restructuring savings from 2011 actions will offset the market softness and enable reinvestment in digital capability positioning the business well as the market recovers.

由於El-Hi市場具挑戰，預期McGraw-Hill Education的營收與獲利相較2011年將大致持平。2011年行動所帶來的重組節省將抵銷市場疲弱，並使我們得以再投資於數位能力，讓業務在市場復甦時具備良好定位。

Benefiting from strong growth in McGraw-Hill Financial augmented by the impact of share repurchases, earnings per share is expected to be $3.25 to $3.35 representing 12% to 15% growth versus 2011's adjusted earnings per share of $2.91. Obviously, actual results will be impacted by the timing of separation.

受惠於McGraw-Hill Financial的強勁成長並叠加股票回購的影響，預期每股盈餘為3.25至3.35美元，較2011年調整後每股盈餘2.91美元成長12%至15%。顯然，實際結果將受到分拆時點的影響。

Let me just add a number of other items. On corporate expense -- benefiting from the restructuring actions in 2011, we expect a single-digit decline in corporate expense. Our effective tax rate and interest should be comparable to 2011.

我再補充幾點其他事項。關於公司費用——受惠於2011年的重組行動，我們預期公司費用將出現個位數下降。我們的有效稅率與利息費用應與2011年相當。

This guidance that we're providing today is based on fully diluted weighted average shares outstanding of approximately 284 million, which includes the completion of the accelerated share repurchase transaction as well as the impact of equity-related awards.

我們今天提供的指引係以完全稀釋加權平均流通股數約2.84億股為基礎，其中包含加速股票回購交易的完成，以及股權相關獎酬的影響。

2012 cash flow is expected to be approximately $750 million after dividends despite modest increases in reinvestment. Capital expenditures are projected to be $125 million to $150 million versus $119 million in 2011 and prepublication investment is projected to be $160 million to $190 million versus the $158 million in 2011.

儘管再投資小幅增加，2012年在支付股利後的現金流預期約為7.5億美元。資本支出預估為1.25億至1.5億美元，高於2011年的1.19億美元；而出版前投資（prepublication investment）預估為1.6億至1.9億美元，高於2011年的1.58億美元。

As we prepare for the separation of McGraw-Hill Financial and Education business in 2012, we are extremely well capitalized with cash and short-term investments at the end of the year of approximately $973 million. Cash and short-term investments decreased $575 million from December 31, 2010 largely due to acquisitions and share repurchases. Gross debt was comprised of approximately $1.2 billion of unsecured senior notes, no commercial paper is outstanding.

在我們準備於2012年分拆McGraw-Hill Financial與教育業務之際，我們的資本結構非常穩健；年底現金與短期投資約為9.73億美元。相較2010年12月31日，現金與短期投資減少5.75億美元，主要由於併購與股票回購所致。總負債主要由約12億美元的無擔保優先票據（unsecured senior notes）構成，且未有任何商業本票（commercial paper）在外流通。

So in closing, The McGraw-Hill Companies finished a strong 2011 despite challenges in some of our key markets. We anticipate continued growth into 2012. And overall, 2012 promises to be a momentous year as we prepare for the introduction of two stand-alone companies, each with industry-leading positions. With that, let me turn the call back over to Terry.

總結而言，儘管我們部分關鍵市場面臨挑戰，McGraw-Hill Companies在2011年仍以強勁表現收官。我們預期成長將延續至2012年。整體而言，2012年可望是重要的一年，因為我們正準備推出兩家各自獨立運作的公司，且各自都具備產業領先地位。接下來，我把電話會議交回給Terry。

Okay, thanks, Jack and let me turn it to Don Rubin who will moderate our question-and-answer session.

好的，謝謝你，Jack。接下來我把時間交給Don Rubin，由他主持問答環節。

Thank you, Terry. Just a couple of instructions for our phone participants. (Operator Instructions).

謝謝你，Terry。先給電話與會者幾點說明。（接線員指示）。

Craig Huber, Huber Research Partners.

Craig Huber，Huber Research Partners。

Yes, good morning, thank you. Terry, a question -- on your cost savings target of over $100 million, as you think about that number and you think about the [add of] that $4.8 billion of cost in 2011 it looks like you adjusted for these one-time items. Isn't roughly $100 million kind of a drop in the bucket here? Don't you think at the end of the day you guys could get multiples of that number?

是的，早安，謝謝。Terry，我有個問題——關於你們超過1億美元的成本節省目標，當你看這個數字，再看2011年48億美元的成本，看起來你們已經針對這些一次性項目做了調整。那麼大約1億美元在這裡是不是有點杯水車薪？你不覺得最後你們其實可以做到這個數字的好幾倍嗎？

Good morning, Craig, and thanks. No, look, in terms of the most important aspect of the Growth and Value Plan in terms of developing these two powerful dynamic stand-alone companies is to get the cost structures right for both of them, and that's what we're working very hard on.

早安，Craig，謝謝。不，你看，就「成長與價值計畫」（Growth and Value Plan）最重要的面向而言，也就是打造兩家強大且具活力的獨立公司，關鍵在於把兩者的成本結構調整到位，而這正是我們正在非常努力推進的工作。

As Jack was talking about, the biggest area and issue are the shared costs, especially in terms of some of the corporate expenses and the IT expenses. And so as we get into those and breaking those down, we'll see.

正如 Jack 所談到的，最大的一塊領域與問題是共用成本，特別是在一些公司費用與 IT 費用方面。因此，當我們深入並把這些拆解開來時，就會看得更清楚。

I think that going into this Growth and Value Plan saying at least $100 million is the right thing. As we get through the work streams in terms of the separation, we'll see what's what on that one. We get a lot of questions -- could it be $150 million, could it be even higher and all those kinds of things. We are going to do whatever it takes to be able to get the right cost structures so that from a value standpoint we're getting the recognition for that.

我認為在推進這項「成長與價值計畫」時，至少 1 億美元的目標是正確的。隨著我們在分拆相關的各個工作流程中推進，我們會再看清楚實際情況。我們收到很多問題——會不會是 1.5 億美元、甚至更高等等。我們會不惜一切代價，建立正確的成本結構，讓我們在價值面能獲得相應的認可。

So I think just saying at least $100 million at this point is the right thing to do. But again, we will keep you updated on our progress as we go.

所以我認為在此刻只說至少 1 億美元是正確的做法。但同樣地，我們會在推進過程中持續向各位更新進度。

I would just add there's a timing aspect to this too. We're saying exceed $100 million by the end of 2012 on a run rate basis. As we're getting to the detailed plans we're seeing lots of opportunities, but it may take a little bit longer to realize beyond that target. But we're feeling very good based on the progress that we're making and the discussions that we have underway in terms of the disaggregations of the business.

我再補充一點，這裡也有時間點的因素。我們說的是以年化運行率（run rate）計算，到 2012 年底要超過 1 億美元。在我們制定更細部計畫時看到很多機會，但要實現超過該目標的部分，可能需要更長一點時間。不過，基於我們正在取得的進展，以及我們就業務拆分（disaggregation）所進行的討論，我們感覺非常良好。

And then within your EPS guidance, if I could ask, how much cost-cutting is in there for full-year 2012?

另外在你們的 EPS 指引中，如果我可以問一下，2012 全年包含了多少成本削減？

For right now, it just includes the Wave 1 restructurings that are a part of this announcement. So additional cost reductions would be on top of that guidance. Now how much of that is actually realized in 2012, we'll be back with more detail on that as we go through the year.

就目前而言，只包含本次公告中的第一波（Wave 1）重整措施。因此，額外的成本降低將會是在該指引之上。至於其中有多少會在 2012 年實際落地，我們會在今年推進過程中再提供更多細節。

And my other question if I could, this $973 million of cash on your balance sheet at the end of the quarter, how much of that roughly is tied up overseas? What's your thoughts on uses of free cash in this upcoming year? Thank you.

我還有一個問題：本季末你們資產負債表上有 9.73 億美元現金，其中大約有多少是放在海外、被卡住的？你們對於接下來一年自由現金的用途有何想法？謝謝。

We do have to balance our domestic and international cash. We do have several hundred million dollars that are offshore and we do need -- particularly in the first half of the year we do need to manage our domestic cash position to some degree.

我們確實需要在國內與國際現金之間取得平衡。我們有數億美元在海外，同時——特別是在上半年——我們確實需要在一定程度上管理我們的國內現金部位。

So going forward to this year, we will look for continued tuck-in acquisitions like we have completed over the last few years and we look to be sure that we want to have the financial flexibility as we move (technical difficulty) separation of separate entities.

因此展望今年，我們會尋求持續進行像過去幾年完成的那種補強型（tuck-in）併購，同時也會確保在（技術問題）分拆為獨立實體的過程中，我們保有財務彈性。

And beyond that flexibility, if we think that then there's additional opportunity for further share repurchase on top of what is included in the guidance, we will come back and contemplate that as we get deeper into the year and the timing and means of separation is clear.

此外，在具備上述彈性之後，如果我們認為在指引所包含的回購之外，還有進一步股票回購的機會，我們會在今年更深入、且分拆的時點與方式更明確時，再回來評估。

And Craig, as you know, the four uses for free cash flow, the comments on dividends and share repurchases, those are very important to us on one hand. The other is that on the McGraw-Hill Education side, organic growth is going to be very important in terms of some of the digital transformation and all the progress that we're making on that side, which is very exciting. Transaction is probably more on the McGraw-Hill Financial side.

Craig，如你所知，自由現金流的四種用途中，關於股利與股票回購的評論，一方面對我們非常重要。另一方面，在 McGraw-Hill Education 這一側，有機成長將非常重要，尤其是在數位轉型以及我們在那一側所取得的所有進展方面，這非常令人振奮。交易（Transaction）可能更多會發生在 McGraw-Hill Financial 這一側。

Great, thank you.

很好，謝謝。

Peter Appert, Piper Jaffray.

Peter Appert，Piper Jaffray。

Thanks. Terry, a couple questions on the ratings business. Can you talk a little bit about what you're seeing from a market share perspective? My sense is maybe you've seen a little slippage there in 2011.

謝謝。Terry，關於評級業務我有幾個問題。你能談談你們從市占率角度看到的情況嗎？我的感覺是你們在 2011 年可能有些微下滑。

Second, can you talk about what you're seeing at the start of 2012? My sense is the market may be off to a reasonably robust start so far this year.

第二，你能談談 2012 年開年你們看到的情況嗎？我的感覺是市場今年到目前為止的開局可能相當強勁。

And then lastly, what should we think about in terms of near- and longer-term targets in terms of margin potential in the ratings business? Thank you.

最後，關於評級業務的利潤率潛力，無論是近期或較長期的目標，我們應該如何看待？謝謝。

Okay. Again, in terms of market share, Peter, the only area that we're impacted a little bit is on the structured finance side. And I would say as that starts to pick up and we hope for some more recovery, not just the asset-backed area, but as we see probably more on the commercial mortgage-backed market a little bit, I think residential mortgage backed is going to stay softer for a while. That would improve a little bit.

好的。再談市占率，Peter，我們受到一點影響的唯一領域是在結構性金融（structured finance）這一側。我會說，隨著那部分開始回升、我們也希望看到更多復甦——不只是資產擔保（asset-backed）領域，還包括我們可能在商業不動產抵押擔保（commercial mortgage-backed）市場看到更多——我認為住宅抵押擔保（residential mortgage-backed）還會疲弱一段時間。那樣會有些改善。

But on the other areas, we are in really good shape. As you ask on 2012 and the start of the year you have, again, remembering that the first half of last year was so strong and the second half was weaker, we are starting on a weaker demand pipeline at this point. Obviously, the refinancings and some of the infrastructure financings that are going on are going to have some pickup in all of that. We will have to see as the year starts to unfold.

但在其他領域，我們的狀況非常好。至於你問 2012 年與年初的情況——同樣要記得，去年上半年非常強、下半年較弱——我們目前是從較弱的需求管線開始。顯然，正在進行的再融資以及一些基礎建設融資，會帶動整體有所回升。我們必須看著年度展開後的情況再判斷。

But I think from an activity level overall, the market activity is a little softer getting started. Longer-term targets on margins really are going to be influenced more by the cost basis. Increasingly, as some of the legal and regulatory cost issues subside, I think that we will definitely see margin improvement on that part. But we are very pleased with the margin levels that we are at now. But we just think that with some of the expense issues starting to subside that that will give us some benefit.

但我認為就整體活動水準而言，市場活動在起步階段稍微偏弱。利潤率的長期目標其實會更多受到成本基礎的影響。隨著部分法律與監管成本問題逐漸消退，我認為我們肯定會在那部分看到利潤率改善。不過，我們對目前的利潤率水準非常滿意。只是我們認為，隨著一些費用問題開始緩解，將會帶給我們一些好處。

Just to add on the margin point, if you guys look at our expense growth in the business this year, the first half of the year was high double-digit expense growth, back half of the year just around 3%.

再補充利潤率這點：如果各位看我們今年該業務的費用成長，上半年是高雙位數的費用成長，下半年大約只有 3%。

So the expense growth is moderating a bit, and the actual result is going to depend a little bit on just the way the markets behave and what sort of volatility we see. Because we know the long-term pipeline looks pretty good. It's just a question of timing.

所以費用成長正在稍微放緩，而實際結果會在一定程度上取決於市場的表現，以及我們會看到何種波動。因為我們知道長期的管線看起來相當不錯。只是時間點的問題。

Okay. And then could I ask one follow-up, please? In terms of the Cap IQ and index business, you had phenomenal performance there this year. If there further room for margin upside in that business?

好的。那我可以再追問一個問題嗎？就 Cap IQ 與指數業務而言，你們今年的表現非常亮眼。那個業務是否還有進一步提升利潤率的空間？

Yes, I think so. Obviously, as we complete the joint venture with CME, you have a really exciting opportunity with a complementary nature of the Dow Jones Indexes and the S&P Indices. Again, the S&P Indices focused on the institutional investor market, and the Dow Jones more retail oriented.

是的，我認為有。顯然，隨著我們完成與 CME 的合資案，你會看到一個非常令人振奮的機會，因為道瓊指數（Dow Jones Indexes）與 S&P 指數（S&P Indices）具有互補性。同樣地，S&P 指數聚焦於機構投資人市場，而道瓊則更偏向零售市場。

So you've got a wonderful platform in combination there and there's endless permutations to the exchange traded funds that you can develop. And therefore we're benefiting from that kind of growth and that's why I think that from an expense standpoint it's pretty modest and therefore you can expect further growth.

因此兩者結合後，你就擁有一個很棒的平台，而且你可以開發的交易所交易基金（ETF）有無數種組合與變化。因此我們正受惠於這類成長；也因此我認為從費用角度來看相當溫和，所以你可以期待進一步成長。

When does that deal close, Terry?

Terry，那筆交易什麼時候完成交割？

Well, it's all up to the examination at the Justice Department at this point. We think that clearly by the end of the second quarter, Peter, but hopefully maybe even sooner.

嗯，目前完全取決於司法部的審查。我們認為很明確會在第二季末之前完成，Peter，但希望甚至可能更早。

Great, thank you.

很好，謝謝。

Doug Arthur, Evercore.

Doug Arthur，Evercore。

Terry, clearly the big surprise in the quarter was higher ed. It looks like professional was down in the quarter -- or at least international was down, professional up slightly. So higher ed had a great revenue quarter and particularly compared to year-to-date. What changed? Was there anything unusual? Were there any one-time orders or was that just a catch up?

Terry，本季最大的驚喜顯然是高等教育。看起來專業業務本季下滑——或者至少是國際業務下滑，而專業業務小幅上升。因此高等教育本季營收表現非常好，尤其相較於年初至今。發生了什麼變化？是否有任何不尋常的因素？是否有任何一次性訂單，還是只是補進度？

Well, I think it's probably a little bit more of the latter, but you also have very, very good expense controls there that also helped that issue. But again, the growth of digital product, 40% growth, 20% of our revenues really is there.

嗯，我想可能比較偏向後者，但你們在那邊也有非常、非常好的費用控管，這也有助於改善。但再說一次，數位產品的成長，40%的成長、占我們營收的20%，確實就在那裡。

You're talking about programs like McGraw-Hill Connect, McGraw Hill Campus, McGraw-Hill Create, LearnSmart which is the adaptive learning capability and learning solution business. And now with our introduction of our agreement with Apple, you're going to see an acceleration of that. But the digital transformation that we've been talking about, working on, investing in is really materializing on that and that's very exciting.

你談的是像 McGraw-Hill Connect、McGraw Hill Campus、McGraw-Hill Create、LearnSmart（也就是自適應學習能力與學習解決方案業務）這些方案。而現在隨著我們與 Apple 的協議推出，你會看到這方面加速。但我們一直在談、在做、在投資的數位轉型，確實正在具體落地，這非常令人振奮。

Okay, thank you.

好的，謝謝。

Michael Meltz, JPMorgan.

Michael Meltz，摩根大通。

Thank you. Three questions for you. First one, Don, what number earnings report is this for you?

謝謝。我有三個問題。第一個，Don，這是你第幾次發布財報？

I'll have to get back to you, Michael.

Michael，我得回頭再告訴你。

Oh boy, too many to count. Well, congrats and enjoy. Terry or Jack, can you tell us on the spin, Education spin, I mean it sounds like there's no change to the timing. But can you talk about kind of from here when should we expect the Form 10 to be out or what are the major milestones ahead? And then I have one follow-up.

哎呀，多到數不清。那就恭喜，也好好享受。Terry 或 Jack，關於分拆、教育業務分拆，我的意思是聽起來時程沒有改變。但能否談談從現在開始，我們何時應該期待 Form 10 出爐，或接下來有哪些主要里程碑？然後我還有一個追問。

Mike, we've already knocked a few of those off. We already have submitted -- put our letter into the IRS for the tax ruling, that was completed in December. We are very much on pace for the filing of the Form 10. We'd probably target right now I would say the first few weeks of April in terms of moving that forward.

Mike，我們已經完成了其中幾項。我們已經——把信函提交給 IRS 以取得稅務裁定，那在12月就完成了。我們也非常按進度在準備提交 Form 10。目前我們大概會以4月前幾週作為推進該項工作的目標時點。

So we're progressing. I think some of the bigger things for us to sort through are less the sort of regulatory or formulaic pieces of a spin. It's more in just the hard work we have ahead of us in terms of disassembling some of the plumbing that connects all the businesses and sorting out how we build stand-alone capability in each business. That's probably the bigger pacing element ahead of us.

所以我們正在推進。我認為對我們而言較大的事項，與其說是分拆中較偏監管或制式化的部分，不如說是我們接下來要做的硬功夫：拆解連結各業務的部分底層「管線」，並釐清如何在各業務中建立獨立運作能力。這可能是接下來更影響進度的要素。

Okay. And then a separate question on S&P. I think, Jack, you said mid-single-digit revenue growth in '12, that's your expectation?

了解。另外一個關於 S&P 的問題。我想 Jack，你提到2012年營收成長為中個位數百分比，這是你的預期？

That's right.

沒錯。

At the end of the day, '11 was up about 4%. And so I'm just wondering -- you mentioned the word challenging and volatile many times on this call. Can you talk a little bit more discreetly about your expectation? How do you get to mid-single-digit revenue growth in that business this year?

總體來看，2011年大約成長了4%。所以我想問——你在這通電話中多次提到「具挑戰性」與「波動」。能否更具體談談你的預期？你們如何在今年讓該業務達到中個位數的營收成長？

Look, we know the overall fundamental demand in terms of the amount of debt out there that has to be refinanced is quite considerable. We know just in terms of companies coming in looking to ask for or update their company ratings to be ready to move, that part of our business is doing quite well.

你看，我們知道就基本面需求而言，市場上需要再融資的債務規模相當可觀。我們也知道，就企業前來詢問或更新其公司評等、以便隨時準備進入市場而言，這部分業務表現相當不錯。

So our sense is that the pipeline is quite good and then whenever capital market -- whenever the capital markets appear to open, there seems to be a pretty good flood of interest into the market. So what makes it challenging looking forward is exactly when that's going to happen.

因此我們的感覺是，案源管線相當不錯；而且每當資本市場——每當資本市場看起來打開時，市場往往會湧入相當可觀的需求。所以展望未來之所以具挑戰性，正是在於那會在什麼時候發生。

I mean even look at 2011, first half of the year was actually quite good, back half really challenging. So that's why we've kind of landed as we've gone back and forth on sort of that mid-single-digit, pretty much in line with what we saw this year. Admittedly, it was very volatile quarter to quarter.

甚至看看2011年，上半年其實相當不錯，下半年就非常具挑戰。因此我們在來回推敲後，落在中個位數的區間，大致與今年所見相符。坦白說，各季之間波動非常大。

Yes, and I think, Michael, I think from a forecasting standpoint it's very responsive, but obviously modest and what we would hope for is a pickup. We'll see as we go. But comparisons, as Jack says, to the first half of the year are going to be difficult.

是的，而且我想，Michael，從預測角度來看，它非常敏感，但顯然是溫和的；我們希望看到回升。我們會邊走邊看。但如 Jack 所說，與上半年相比的比較基期會很困難。

But not only is it the [refinancing] number that's a big one, S&P is projecting that between now and 2020 you've got some $15 trillion of infrastructure financing that's going to take place. About half of that is coming out of Asia.

但不只是那個[再融資]數字很大，S&P 也預估從現在到2020年，將有約15兆美元的基礎建設融資會發生。其中約一半來自亞洲。

And so those are big numbers as well. And so, we're tracking a lot of the bigger pools on that part. But hopefully we'll start to see the pipeline get a little bit more robust and we'll start to see a pickup on parts of the structured finance as well.

所以那些也是很大的數字。因此，我們也在追蹤那部分許多更大型的資金池。但希望我們會開始看到案源管線更為強勁，也會開始看到結構性融資部分有所回升。

And by the way, Michael, thank you very much for your comment about Don Rubin. Don Rubin has been at it for 52 years. He is one of our absolute stars and you're going to miss the heck out of him and all that, but thank you for bringing that up.

順帶一提，Michael，非常感謝你對 Don Rubin 的評論。Don Rubin 已經做了52年。他是我們絕對的明星之一，我們會非常、非常想念他等等；但謝謝你提到這點。

All right, thank you.

好的，謝謝。

Bill Bird, Lazard.

Bill Bird，Lazard。

Thank you. Terry, I couldn't agree with you more on Don. Don, congrats on a job well done. Two questions, I just wanted to clarify what your best estimate is now on spin timing. And then second, what's a reasonable range to think about for 2012 buybacks?

謝謝。Terry，我完全同意你對 Don 的看法。Don，恭喜你工作做得非常出色。兩個問題：我想先釐清你們目前對分拆時程的最佳估計。第二，對於2012年的庫藏股回購，合理的區間大概會是多少？

Okay. In terms of this spin, as you know, as we talked about the program management office and the 17 work streams, so much work has gone on and so much (inaudible). We're still focusing on the separation of the shared expenses and to be able to articulate very clear effective and efficient cost structures for the two entities.

好的。就這次分拆而言，如你所知，我們談過專案管理辦公室以及17條工作線，已經做了很多工作，也有很多（聽不清）。我們仍聚焦於分攤共同費用的拆分，並能為兩個實體清楚闡述非常明確、有效且高效率的成本結構。

Clearly we're talking 2012 and we're going to do everything we can to accelerate this as best we can. As Jack was talking about looking at early April for the Form 10. Once we get those notions completed, then it's execution of the cost structures. So it will be in the second half of 2012, but every effort is being made to speed that along, but clearly in the second half of 2012.

很明顯我們談的是2012年，我們會盡一切所能在可行範圍內加速。如 Jack 所說，Form 10 目標在4月初。一旦我們把這些概念性工作完成，接下來就是成本結構的落地執行。因此會在2012年下半年，但我們正盡最大努力加快進度，不過很明確是在2012年下半年。

And in terms of share repurchases -- we did $1.5 billion in 2011 and we're still completing a little bit more of the accelerated share repurchase of the $500 million. We have a little left to go on that. We have 23 million shares authorized left in the current authorization and we'll be watching market activity levels and the like.

至於股票回購——我們在2011年回購了15億美元，目前仍在完成5億美元加速股票回購中的一小部分。那部分還剩一點要做。在現行授權下，我們還有2,300萬股的剩餘授權額度，並會觀察市場交易活動水準等因素。

You know we're very strong on share repurchase and believe in it. And therefore we're just going to complete the $500 million accelerated portion and then we'll gauge market conditions early on in the year and we'll make an assessment on that. But we're very favorable towards it.

你知道我們非常支持股票回購，也相信其價值。因此我們會先完成那5億美元的加速部分，接著在年初觀察市場狀況並做出評估。但我們對此非常正面。

Thanks. And just a follow-on on CRA3, what is your best estimate on when you'll know an outcome on it?

謝謝。另外接續關於 CRA3，您對於何時會知道其結果的最佳估計是什麼時候？

Oh, it's still early on. In some cases people are still trying to understand CRA1 and CRA2 on this one. CRA3 is not very well understood and what we're just beginning to see is a broader understanding of what some of the issues there are and the early on criticism of it I think is taking its toll.

噢，現在還很早。在某些情況下，人們仍在試著理解這件事上的 CRA1 和 CRA2。CRA3 還不是很被理解，而我們才剛開始看到大家對其中一些議題有更廣泛的理解，我認為早期對它的批評正在產生影響。

My sense is that there's going to be sort of a resolution process here where things are going to change and people are going to take on different initiatives. So at this point it's very early on. But again, CRA2 isn't very well understood, so CRA3 has got a lot of work and a lot of places to go.

我的感覺是，這裡將會有某種解決流程，事情會有所改變，而人們也會採取不同的倡議。所以就目前而言，還非常早。但同樣地，CRA2 也不是很被理解，因此 CRA3 還有很多工作要做、也還有很長的路要走。

So we're going to be a part of it and we're going to be putting our comments in. But also you can expect a lot of market reaction. And everybody doesn't want to see the market wounded or unintended consequences associated with that, so I think it's very early on.

所以我們會參與其中，並提出我們的意見。但同時你也可以預期會有很多市場反應。而且大家都不希望看到市場受傷，或出現與此相關的非預期後果，所以我認為現在還非常早。

Thank you.

謝謝。

Sloan Bohlen, Goldman Sachs.

Sloan Bohlen，高盛。

Hey, good morning. Terry, just a couple questions on Education. In your 2012 guidance I think you speak to revenues being flat for the segment. Can you maybe reconcile that with the 40% decline you expect in the new adoption market in 2012? What are the offsets?

嗨，早安。Terry，關於教育業務我有幾個問題。在你們 2012 年的指引中，我想你們提到該事業群的營收將持平。你能否把這點與你們預期 2012 年新採用市場將下滑 40% 這件事做個對照說明？有哪些抵銷因素？

Well, again, in terms of (technical difficulty) overall, Sloan, the cost reductions and the expense controls on that, we're going to see a lot from that standpoint. The real issue is coming out of El-Hi. The funding pressures are there. We are pushing very aggressively on the high school market where it needs to be, but also the digital transformation at the higher end is going to be the area that we're going to succeed the most.

嗯，再次說明，就（技術困難）整體而言，Sloan，成本削減與費用控管方面，我們會從那個角度看到很多成果。真正的問題來自 El-Hi。資金壓力確實存在。我們正非常積極地推進高中市場，朝著應有的方向前進；同時，在較高端的數位轉型將是我們最能成功的領域。

We're obviously looking at a successful participation in the Florida social studies area, which is the biggest opportunity coming up for this year. But again, it's going to be expense, it's going to be competing well in some of the key areas and the digital transformation of that one. But those are market pressures that we're seeing there. The digital transmission is something we're going to continue to focus on.

我們顯然也在關注佛羅里達社會研究領域的成功參與，這是今年即將到來的最大機會。但同樣地，重點會在費用、在一些關鍵領域具備競爭力，以及該領域的數位轉型。不過，這些都是我們在那裡看到的市場壓力。數位傳輸是我們將持續聚焦的事情。

And just by segment, while we do in the plan -- consistent with the discussion -- we do have a decline in K-12 consistent with what we've seen in the adoption market, we are gaining sufficient growth elsewhere in the portfolio to offset the decline.

另外就各事業群而言，雖然在計畫中——也與討論一致——我們確實預期 K-12 會下滑，與我們在採用市場看到的情況一致，但我們在投資組合的其他地方取得足夠的成長，得以抵銷這個下滑。

And even within K-12, our participation rate this year, that's going to go up a little bit so we'll see. But it's going to be a little bit of a balancing act between what is admittedly going to be a weak overall market in K-12 versus the balance of the portfolio.

即使在 K-12 內部，我們今年的參與率也會小幅上升，所以我們會觀察。但這將會是在整體偏弱的 K-12 市場，與投資組合其餘部分之間的一種平衡。

Okay. And then just a question on the alignment with Apple and maybe outside of Apple even. Just what could the profit margin be on a digital offering that maybe comes at a $15 price point? Can you maybe talk a little bit about that?

好的。接著想問一下與 Apple 的合作對齊，甚至不只 Apple。一個可能定價在 15 美元的數位產品，其利潤率可能會是多少？你能否稍微談談？

Yes, I think it's very early on. We have developed five programs for the iPad for the high school market. We will double that this year, maybe more on that part. But when you start talking about the introduction of this, you're talking about a huge change in terms of not only the curricula but the distribution and the learning capability of it.

是的，我認為現在還非常早。我們已為高中市場開發了五個 iPad 方案。今年我們會把這個數量加倍，甚至可能更多。但當你開始談到導入這件事時，你談的是一個巨大的改變，不僅是課程內容，還包括其發行方式與學習能力。

We're very excited about this thing and the $15 price point -- if we get the scale and if we get the volume we'll be in fine shape with this. But it's really early on with this one. This is one that we just announced a couple weeks ago on this part, but we'll keep this in front of us. But I'm anxious to demonstrate some of this, Sloan, to investors in terms of how exciting this is and all that.

我們對這件事非常興奮，而 15 美元的定價——如果我們能取得規模、取得量——我們就會有很好的狀況。但這真的還很早。這是我們在幾週前才剛宣布的事情，但我們會持續關注。不過我也很期待向投資人展示其中一些內容，Sloan，讓大家看到這有多令人振奮等等。

Great. Thank you very much.

很好。非常感謝。

Craig Huber, Huber Research Partners.

Craig Huber，Huber Research Partners。

Yes, hi. Can you update us, if you would please, on your thoughts on price increases for the transaction, non-transaction revenues within the ratings business for 2012?

是的，你好。能否請你更新一下你們對 2012 年評級業務中，交易與非交易收入之價格調漲的看法？

Craig, all in S&P is looking at a 4% to 5% price increase for 2012.

Craig，整體而言，S&P 對 2012 年的價格調漲預期是 4% 到 5%。

Does that include the same on the transaction side, Don?

Don，這也包含交易端同樣的調幅嗎？

That's sort of a consensus figure representing a very complex pricing schedule over all kinds of instruments.

那算是一個共識數字，代表的是涵蓋各種工具、非常複雜的整體定價表。

Okay, then my other -- okay, so 4% to 5%. And then my other question -- can you talk about the open territories a little bit further here for 2012? You're thinking the adoption market will drop 40%. Given the state budget issues out there, economic issues, all that, what's your preliminary thought on open territories for 2012?

好的，那我另一個——好的，所以是 4% 到 5%。然後我另一個問題——你能否再多談一點 2012 年的開放地區（open territories）？你們認為採用市場會下滑 40%。考量到各州預算問題、經濟問題等等，你對 2012 年開放地區的初步看法是什麼？

I think that it's going to be obviously mixed. It depends on state-by-state, but I'm looking for very modest participation in the aggregate. Again, the state funding issues and the open territories are the same ones facing the adoption states. And so I think that you'll see some decline there as well.

我認為顯然會是好壞參半。這取決於各州情況，但我預期整體合計的參與度會非常溫和。同樣地，各州的資金問題與開放地區所面臨的情況，與採用州面臨的是同樣的問題。因此我認為那裡也會看到一些下滑。

Yes, but the declines won't be quite as dramatic so -- even mid-single-digit. Overall, I do think -- our hope is that 2012 now overall between both the new adoption of the open territories sort of is a new base on which we can begin to move out to as we move past 2012.

是的，但下滑不會那麼劇烈——可能就是中個位數百分比。整體而言，我確實認為——我們希望 2012 年在新採用與開放地區兩者合計之下，會形成一個新的基礎，讓我們在走過 2012 年後可以在此基礎上開始往外推進。

Great, thank you.

很好，謝謝。

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