Form | 10-Q |
☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3998945 | ||||||||||
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.01 per share | MCO | New York Stock Exchange | ||||||||||||
1.75% Senior Notes Due 2027 | MCO 27 | New York Stock Exchange | ||||||||||||
0.950% Senior Notes Due 2030 | MCO 30 | New York Stock Exchange |
Large Accelerated Filer | ☑ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Shares Outstanding at | ||
MOODY’S CORPORATION INDEX TO FORM 10-Q | ||||||||
Page(s) | ||||||||
3-6 | ||||||||
Consolidated Statements of Operations (Unaudited) for the Three Months Ended and Six Months Ended | ||||||||
Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended and Six Months Ended | ||||||||
Consolidated Statements of Cash Flows (Unaudited) for the | ||||||||
Consolidated Statements of Shareholders’ Equity (Unaudited) for the Three Months Ended and Six Months Ended | 11 | |||||||
TERM | DEFINITION | ||||
Acquisition-Related Intangible Amortization Expense | Amortization of definite-lived intangible assets acquired by the Company from all business combination transactions | ||||
Adjusted Diluted EPS | Diluted EPS excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures” | ||||
Adjusted Net Income | Net Income excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures” | ||||
Adjusted Operating Income | Operating income excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures” | ||||
Adjusted Operating Margin | Adjusted Operating Income divided by revenue | ||||
Americas | Represents countries within North and South America, excluding the U.S. | ||||
AOCI(L) | Accumulated other comprehensive income/loss; a separate component of shareholders’ equity | ||||
Annualized Recurring Revenue (ARR) | A supplemental performance metric to provide additional insight on the estimated value of MA's recurring revenue contracts at a given point in time | ||||
ASC | The FASB Accounting Standards Codification; the sole source of authoritative GAAP as of July 1, 2009 except for rules and interpretive releases of the SEC, which are also sources of authoritative GAAP for SEC registrants | ||||
Asia-Pacific | Represents Australia and countries in Asia including but not limited to: China, India, Indonesia, Japan, Korea, Malaysia, Singapore, Sri Lanka and Thailand | ||||
ASR | Accelerated Share Repurchase | ||||
ASU | The FASB Accounting Standards Update to the ASC. | ||||
Board | The board of directors of the Company | ||||
BPS | Basis points | ||||
CCXI | China Cheng Xin International Credit Rating Co. Ltd.; China’s first and largest domestic credit rating agency approved by the People’s Bank of China; the Company acquired a 49% interest in 2006; currently Moody’s owns 30% of CCXI | ||||
CDP | An international nonprofit organization that helps companies, cities, states and regions manage their environmental impact through a global disclosure system | ||||
CFG | Corporate finance group; an LOB of MIS | ||||
CMBS | Commercial mortgage-backed securities; an asset class within SFG | ||||
COLI | Corporate-Owned Life Insurance | ||||
Commission | European Commission | ||||
Common Stock | The Company’s common stock | ||||
Company | Moody’s Corporation and its subsidiaries; MCO; Moody’s | ||||
Cortera | A provider of North American credit data and workflow solutions; the Company acquired Cortera in March 2021 | ||||
COVID-19 | An outbreak of a novel strain of coronavirus resulting in an international public health crisis and a global pandemic | ||||
CP | Commercial Paper | ||||
CP Program | A program entered into on August 3, 2016 allowing the Company to privately place CP up to a maximum of $1 billion for which the maturity may not exceed 397 days from the date of issue, and which is backstopped by the 2021 Facility | ||||
CRAs | Credit rating agencies | ||||
Data and Information (D&I) | LOB within MA | ||||
Decision Solutions (DS) | LOB within MA that provides software and workflow tools for specific use cases (banking, insurance, KYC/KYS, CRE and structured finance solutions). This LOB utilizes components from the Data & Information and Research & Insights LOBs to provide integrated risk solutions | ||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act |
TERM | DEFINITION | ||||
EMEA | Represents countries within Europe, the Middle East and Africa | ||||
EPS | Earnings per share | ||||
ERS | |||||
ESG | Environmental, Social, and Governance | ||||
ESMA | European Securities and Markets Authority | ||||
ETR | Effective tax rate | ||||
EU | European Union | ||||
EURIBOR | The Euro Interbank Offered Rate | ||||
Excess Tax Benefits | The difference between the tax benefit realized at exercise of an option or delivery of a restricted share and the tax benefit recorded at the time the option or restricted share is expensed under GAAP | ||||
Exchange Act | The Securities Exchange Act of 1934, as amended | ||||
External Revenue | Revenue excluding any intersegment amounts | ||||
FASB | Financial Accounting Standards Board | ||||
FIG | Financial institutions group; an LOB of MIS | ||||
Free Cash Flow | Net cash provided by operating activities less cash paid for capital additions | ||||
FX | Foreign exchange | ||||
GAAP | U.S. Generally Accepted Accounting Principles | ||||
GBP | British pounds | ||||
GDP | Gross domestic product | ||||
GRI | Global Reporting Initiative, an international independent standards organization that helps organizations understand and disclose their impact on climate change, human rights and corruption | ||||
ICRA | ICRA Limited; a provider of credit ratings and research in India | ||||
kompany | 360kompany AG (kompany); a Vienna, Austria-based platform for business verification and Know Your Customer (KYC) technology solutions, acquired by the Company in February 2022 | ||||
Korea | Republic of South Korea | ||||
KYC | Know-your-customer | ||||
LIBOR | London Interbank Offered Rate | ||||
LOB | Line of business | ||||
MA | Moody’s Analytics - a reportable segment of MCO which provides a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets; consists of three LOBs - Decision Solutions; Research and Insights; and Data and Information | ||||
MAKS | Moody’s Analytics Knowledge Services; formerly known as Copal Amba; provided offshore research and analytic services to the global financial and corporate sectors; business was divested in the fourth quarter of 2019 and was formerly part of the PS LOB and a reporting unit within the MA reportable segment | ||||
MCO | Moody’s Corporation and its subsidiaries; the Company; Moody’s |
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||
MIS | Moody’s Investors Service - a reportable segment of MCO; consists of five LOBs - SFG; CFG; FIG; PPIF; and MIS Other | ||||
MIS Other | Consists of financial instruments pricing services in the Asia-Pacific region, ICRA non-ratings revenue and revenue from providing ESG research, data and assessments. These businesses are components of MIS; MIS Other is an LOB of MIS | ||||
Moody’s | Moody’s Corporation and its subsidiaries; MCO; the Company | ||||
MSS | Moody's Shared Services; primarily consists of information technology and support staff such as finance, human resources and legal that support both MIS and MA | ||||
TERM | DEFINITION | ||||
Net Income | Net income attributable to Moody’s Corporation, which excludes net income from consolidated noncontrolling interests belonging to the minority interest holder | ||||
NM | Percentage change is not meaningful | ||||
Non-GAAP | A financial measure not in accordance with GAAP; these measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s performance, facilitate comparisons to competitors’ operating results and to provide greater transparency to investors of supplemental information used by management in its financial and operational decision making | ||||
NRSRO | Nationally Recognized Statistical Rating Organization, which is a credit rating agency registered with the | ||||
OCI | Other comprehensive income (loss); includes gains and losses on cash flow and net investment hedges, certain gains and losses relating to pension and other retirement benefit obligations and foreign currency translation adjustments | ||||
Operating segment | Term defined in the ASC relating to segment reporting; the ASC defines an operating segment as a component of a business entity that has each of the three following characteristics: i) the component engages in business activities from which it may recognize revenue and incur expenses; ii) the operating results of the component are regularly reviewed by the entity’s chief operating decision maker; and iii) discrete financial information about the component is available | ||||
PassFort | A U.K. SaaS-based workflow platform for identity verification, customer onboarding, and risk analysis; acquired by the Company in November 2021 | ||||
PPIF | Public, project and infrastructure finance; an LOB of MIS | ||||
RD&A | Research, Data and Analytics; former LOB within MA that offered subscription-based research, data and analytical products, including: credit ratings produced by MIS; credit research; quantitative credit scores and other analytical tools; economic research and forecasts; business intelligence and company information products; commercial real estate data and analytical tools; and learning solutions. As of January 1, 2022, the MA LOBs have been realigned from RD&A and ERS to Decision Solutions, Research and Insights, and Data and Information | ||||
RealXData | A provider of CRE lease-level portfolio management with benchmarking and rent forecasting capabilities; acquired by the Company in September 2021 | ||||
Recurring Revenue | For MIS, represents recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations, as well as revenue from programs such as commercial paper, medium-term notes and shelf registrations. For MIS Other, represents subscription-based revenue. For MA, represents subscription-based revenue and software maintenance revenue | ||||
Reform Act | Credit Rating Agency Reform Act of 2006 | ||||
Reporting unit | The level at which Moody’s evaluates its goodwill for impairment under U.S. GAAP; defined as an operating segment or one level below an operating segment | ||||
Research and Insights (R&I) | LOB within MA thatprovides models, scores, expert insights and commentary. This LOB includes credit research; credit models and analytics; and economics data and models | ||||
Revenue Accounting Standard | Updates to the ASC pursuant to ASU No. 2014-09, “Revenue from Contracts with Customers (ASC Topic 606).” This accounting guidance significantly | ||||
RMBS | Residential mortgage-backed securities; an asset class within SFG | ||||
RMS | A global provider of climate and natural disaster risk modeling and analytics; acquired by the Company in September 2021 | ||||
SaaS | Software-as-a-Service | ||||
SASB | Sustainability Accounting Standards Board | ||||
SBTi | Science Based Targets initiative; a partnership between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature created to encourage the private sector to take the lead on urgent climate action | ||||
SEC | U.S. Securities and Exchange Commission | ||||
Securities Act | Securities Act of 1933, as amended | ||||
SFG | Structured finance group; an LOB of MIS |
TERM | DEFINITION | ||||
SG&A | Selling, general and administrative expenses | ||||
SOFR | Secured Overnight Financing Rate | ||||
Tax Act | The “Tax Cuts and Jobs Act” enacted into U.S. law on December 22, 2017 which significantly amends the tax code in the U.S. | ||||
TCFD | Task Force on Climate-Related Financial Disclosures | ||||
Total Debt | All indebtedness of the Company as reflected on the consolidated balance sheets | ||||
Transaction Revenue | For MIS, represents the initial rating of a new debt issuance as well as other one-time fees. For MIS Other, represents revenue from professional services as well as data services, research and analytical engagements. For MA, represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, and training and certification services | ||||
U.K. | United Kingdom | ||||
U.S. | United States | ||||
USD | U.S. dollar | ||||
UTPs | Uncertain tax positions | ||||
WEF | World Economic Forum | ||||
YTD | Year-to-date | ||||
2020 MA Strategic Reorganization Restructuring Program | Restructuring program approved by the chief executive officer of Moody’s on December 22, 2020, relating to a strategic reorganization in the MA reportable segment | ||||
2022 - 2023 Geolocation Restructuring Program | Restructuring program approved by the chief executive officer of Moody’s on June 30, 2022, relating to the Company's post-COVID-19 geolocation strategy | ||||
2013 Senior Notes due 2024 | Principal amount of | ||||
2014 Senior Notes due 2044 | Principal amount of $600 million, 5.25% senior unsecured notes due in July 2044 | ||||
2015 Senior Notes due 2027 | Principal amount of €500 million, 1.75% senior unsecured notes due in March 2027 | ||||
2017 Senior Notes due 2023 | Principal amount of $500 million, 2.625% senior unsecured notes due January 15, 2023 | ||||
2017 Senior Notes due 2028 | Principal amount of $500 million, 3.250% senior unsecured notes due January 15, 2028 | ||||
2018 Senior Notes due 2029 | Principal amount of $400 million, 4.25% senior unsecured notes due February 1, 2029 | ||||
2018 Senior Notes due 2048 | Principal amount of $400 million, 4.875% senior unsecured notes due December 17, 2048 | ||||
2019 Senior Notes due 2030 | Principal amount of €750 million, 0.950% senior unsecured notes due February 25, 2030 | ||||
2020 Senior Notes due 2025 | Principal amount of $700 million, 3.75% senior unsecured notes due March 24, 2025 | ||||
2020 Senior Notes due 2050 | Principal amount of $300 million, 3.25% senior unsecured notes due May 20, 2050 | ||||
2020 Senior Notes due 2060 | Principal amount of $500 million, 2.55% senior unsecured notes due August 18, 2060 | ||||
2021 Facility | Five-year unsecured revolving credit facility, with capacity to borrow up to $1.25 billion; backstops CP issued under the CP | ||||
2021 Senior Notes due 2031 | Principal amount of $600 million, 2.00% senior unsecured notes due August 19, 2031 | ||||
2021 Senior Notes due 2041 | Principal amount of $600 million, 2.75% senior unsecured notes due August 19, 2041 | ||||
2021 Senior Notes due 2061 | Principal amount of $500 million, 3.10% senior unsecured notes due November 15, 2061 | ||||
2022 Senior Notes due 2052 | Principal amount of $500 million, 3.75% senior unsecured notes due February 25, 2052 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue | $ | 1,522 | $ | 1,600 | Revenue | $ | 1,381 | $ | 1,553 | $ | 2,903 | $ | 3,153 | ||||||||||||||||||||||||||||||||
Expenses | Expenses | Expenses | ||||||||||||||||||||||||||||||||||||||||||||
Operating | Operating | 417 | 393 | Operating | 393 | 365 | 810 | 758 | ||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | Selling, general and administrative | 371 | 293 | Selling, general and administrative | 368 | 327 | 739 | 620 | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 78 | 59 | Depreciation and amortization | 81 | 60 | 159 | 119 | ||||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring | — | 2 | Restructuring | 31 | — | 31 | 2 | ||||||||||||||||||||||||||||||||||||||
Total expenses | Total expenses | 866 | 747 | Total expenses | 873 | 752 | 1,739 | 1,499 | ||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | 656 | 853 | Operating income | 508 | 801 | 1,164 | 1,654 | ||||||||||||||||||||||||||||||||||||||
Non-operating (expense) income, net | Non-operating (expense) income, net | Non-operating (expense) income, net | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | (53) | (7) | Interest expense, net | (55) | (49) | (108) | (56) | ||||||||||||||||||||||||||||||||||||||
Other non-operating income, net | 6 | 16 | ||||||||||||||||||||||||||||||||||||||||||||
Other non-operating (expense) income, net | Other non-operating (expense) income, net | (10) | 6 | (4) | 22 | |||||||||||||||||||||||||||||||||||||||||
Total non-operating (expense) income, net | Total non-operating (expense) income, net | (47) | 9 | Total non-operating (expense) income, net | (65) | (43) | (112) | (34) | ||||||||||||||||||||||||||||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 609 | 862 | Income before provision for income taxes | 443 | 758 | 1,052 | 1,620 | ||||||||||||||||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | 111 | 126 | Provision for income taxes | 116 | 181 | 227 | 307 | ||||||||||||||||||||||||||||||||||||||
Net income attributable to Moody's | Net income attributable to Moody's | $ | 498 | $ | 736 | Net income attributable to Moody's | $ | 327 | $ | 577 | $ | 825 | $ | 1,313 | ||||||||||||||||||||||||||||||||
Earnings per share attributable to Moody's common shareholders | Earnings per share attributable to Moody's common shareholders | Earnings per share attributable to Moody's common shareholders | ||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | $ | 2.69 | $ | 3.93 | Basic | $ | 1.78 | $ | 3.09 | $ | 4.47 | $ | 7.02 | ||||||||||||||||||||||||||||||||
Diluted | Diluted | $ | 2.68 | $ | 3.90 | Diluted | $ | 1.77 | $ | 3.07 | $ | 4.45 | $ | 6.98 | ||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding | Weighted average number of shares outstanding | Weighted average number of shares outstanding | ||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | 185.1 | 187.2 | Basic | 184.1 | 186.7 | 184.6 | 187.0 | ||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | 186.1 | 188.6 | Diluted | 184.9 | 187.9 | 185.4 | 188.2 |
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax amounts | Tax amounts | After-tax amounts | Pre-tax amounts | Tax amounts | After-tax amounts | Pre-tax amounts | Tax amounts | After-tax amounts | Pre-tax amounts | Tax amounts | After-tax amounts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | Net Income | $ | 498 | $ | 736 | Net Income | $ | 327 | $ | 577 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss): | Other Comprehensive Income (Loss): | Other Comprehensive Income (Loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Adjustments: | Foreign Currency Adjustments: | Foreign Currency Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net | Foreign currency translation adjustments, net | $ | (108) | $ | 1 | (107) | $ | (147) | $ | 6 | (141) | Foreign currency translation adjustments, net | $ | (340) | $ | 3 | (337) | $ | 37 | $ | (2) | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net gains on net investment hedges | 64 | (17) | 47 | 175 | (42) | 133 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments - reclassification of losses included in net income | Foreign currency translation adjustments - reclassification of losses included in net income | 20 | — | 20 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains (losses) on net investment hedges | Net gains (losses) on net investment hedges | 241 | (60) | 181 | (41) | 12 | (29) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment hedges - reclassification of gains included in net income | Net investment hedges - reclassification of gains included in net income | — | — | — | (1) | — | (1) | Net investment hedges - reclassification of gains included in net income | — | — | — | (1) | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of losses included in net income | 1 | — | 1 | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Retirement Benefits: | Pension and Other Retirement Benefits: | Pension and Other Retirement Benefits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | — | — | — | 3 | (1) | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial losses and prior service costs | (3) | 1 | (2) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial losses/prior service costs and settlement charge included in net income | Amortization of actuarial losses/prior service costs and settlement charge included in net income | 1 | — | 1 | 10 | (2) | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial gains and prior service costs | Net actuarial gains and prior service costs | 6 | (2) | 4 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive (loss) income | Total other comprehensive (loss) income | $ | (46) | $ | (15) | $ | (61) | $ | 31 | $ | (37) | $ | (6) | Total other comprehensive (loss) income | $ | (72) | $ | (59) | $ | (131) | $ | 5 | $ | 9 | $ | 14 | ||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | 437 | 730 | Comprehensive income | 196 | 591 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: comprehensive (loss) income attributable to noncontrolling interests | Less: comprehensive (loss) income attributable to noncontrolling interests | (3) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income Attributable to Moody's | Comprehensive Income Attributable to Moody's | $ | 437 | $ | 728 | Comprehensive Income Attributable to Moody's | $ | 199 | $ | 592 |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
Pre-tax amounts | Tax amounts | After-tax amounts | Pre-tax amounts | Tax amounts | After-tax amounts | ||||||||||||||||||||||||||||||
Net Income | $ | 825 | $ | 1,313 | |||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||||||||||||||||||
Foreign Currency Adjustments: | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net | $ | (448) | $ | 4 | (444) | $ | (110) | $ | 4 | (106) | |||||||||||||||||||||||||
Foreign currency translation adjustments - reclassification of losses included in net income | 20 | — | 20 | — | — | — | |||||||||||||||||||||||||||||
Net gains on net investment hedges | 305 | (77) | 228 | 134 | (30) | 104 | |||||||||||||||||||||||||||||
Net investment hedges - reclassification of gains included in net income | — | — | — | (2) | 1 | (1) | |||||||||||||||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||||||||||||||||||||
Reclassification of losses included in net income | 1 | — | 1 | 1 | — | 1 | |||||||||||||||||||||||||||||
Pension and Other Retirement Benefits: | |||||||||||||||||||||||||||||||||||
Amortization of actuarial losses/prior service costs and settlement charge included in net income | 1 | — | 1 | 13 | (3) | 10 | |||||||||||||||||||||||||||||
Net actuarial gains and prior service costs | 3 | (1) | 2 | — | — | — | |||||||||||||||||||||||||||||
Total other comprehensive (loss) income | $ | (118) | $ | (74) | $ | (192) | $ | 36 | $ | (28) | $ | 8 | |||||||||||||||||||||||
Comprehensive income | 633 | 1,321 | |||||||||||||||||||||||||||||||||
Less: comprehensive (loss) income attributable to noncontrolling interests | (3) | 1 | |||||||||||||||||||||||||||||||||
Comprehensive Income Attributable to Moody's | $ | 636 | $ | 1,320 |
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||||||
Current assets: | Current assets: | Current assets: | ||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 1,750 | $ | 1,811 | Cash and cash equivalents | $ | 1,617 | $ | 1,811 | ||||||||||||
Short-term investments | Short-term investments | 103 | 91 | Short-term investments | 86 | 91 | ||||||||||||||||
Accounts receivable, net of allowance for credit losses of $44 in 2022 and $32 in 2021 | 1,824 | 1,720 | ||||||||||||||||||||
Accounts receivable, net of allowance for credit losses of $46 in 2022 and $32 in 2021 | Accounts receivable, net of allowance for credit losses of $46 in 2022 and $32 in 2021 | 1,602 | 1,720 | |||||||||||||||||||
Other current assets | Other current assets | 385 | 389 | Other current assets | 515 | 389 | ||||||||||||||||
Total current assets | Total current assets | 4,062 | 4,011 | Total current assets | 3,820 | 4,011 | ||||||||||||||||
Property and equipment, net of accumulated depreciation of $1,035 in 2022 and $1,010 in 2021 | 381 | 347 | ||||||||||||||||||||
Property and equipment, net of accumulated depreciation of $1,058 in 2022 and $1,010 in 2021 | Property and equipment, net of accumulated depreciation of $1,058 in 2022 and $1,010 in 2021 | 433 | 347 | |||||||||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 427 | 438 | Operating lease right-of-use assets | 413 | 438 | ||||||||||||||||
Goodwill | Goodwill | 6,039 | 5,999 | Goodwill | 5,841 | 5,999 | ||||||||||||||||
Intangible assets, net | Intangible assets, net | 2,422 | 2,467 | Intangible assets, net | 2,300 | 2,467 | ||||||||||||||||
Deferred tax assets, net | Deferred tax assets, net | 347 | 384 | Deferred tax assets, net | 341 | 384 | ||||||||||||||||
Other assets | Other assets | 1,061 | 1,034 | Other assets | 1,167 | 1,034 | ||||||||||||||||
Total assets | Total assets | $ | 14,739 | $ | 14,680 | Total assets | $ | 14,315 | $ | 14,680 | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Current liabilities: | Current liabilities: | Current liabilities: | ||||||||||||||||||||
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | $ | 856 | $ | 1,142 | Accounts payable and accrued liabilities | $ | 866 | $ | 1,142 | ||||||||||||
Current portion of operating lease liabilities | Current portion of operating lease liabilities | 106 | 105 | Current portion of operating lease liabilities | 105 | 105 | ||||||||||||||||
Current portion of long-term debt | Current portion of long-term debt | 501 | — | Current portion of long-term debt | 499 | — | ||||||||||||||||
Deferred revenue | Deferred revenue | 1,525 | 1,249 | Deferred revenue | 1,285 | 1,249 | ||||||||||||||||
Total current liabilities | Total current liabilities | 2,988 | 2,496 | Total current liabilities | 2,755 | 2,496 | ||||||||||||||||
Non-current portion of deferred revenue | Non-current portion of deferred revenue | 86 | 86 | Non-current portion of deferred revenue | 81 | 86 | ||||||||||||||||
Long-term debt | Long-term debt | 7,285 | 7,413 | Long-term debt | 7,158 | 7,413 | ||||||||||||||||
Deferred tax liabilities, net | Deferred tax liabilities, net | 498 | 488 | Deferred tax liabilities, net | 572 | 488 | ||||||||||||||||
Uncertain tax positions | Uncertain tax positions | 368 | 388 | Uncertain tax positions | 336 | 388 | ||||||||||||||||
Operating lease liabilities | Operating lease liabilities | 440 | 455 | Operating lease liabilities | 421 | 455 | ||||||||||||||||
Other liabilities | Other liabilities | 492 | 438 | Other liabilities | 513 | 438 | ||||||||||||||||
Total liabilities | Total liabilities | 12,157 | 11,764 | Total liabilities | 11,836 | 11,764 | ||||||||||||||||
Contingencies (Note 16) | 0 | 0 | ||||||||||||||||||||
Contingencies (Note 17) | Contingencies (Note 17) | 0 | 0 | |||||||||||||||||||
Shareholders' equity: | Shareholders' equity: | Shareholders' equity: | ||||||||||||||||||||
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | — | — | Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||||||||||||
Series common stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | Series common stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | — | — | Series common stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||||||||||||
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 342,902,272 shares issued at March 31, 2022 and December 31, 2021, respectively. | 3 | 3 | ||||||||||||||||||||
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 342,902,272 shares issued at June 30, 2022 and December 31, 2021, respectively. | Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 342,902,272 shares issued at June 30, 2022 and December 31, 2021, respectively. | 3 | 3 | |||||||||||||||||||
Capital surplus | Capital surplus | 826 | 885 | Capital surplus | 965 | 885 | ||||||||||||||||
Retained earnings | Retained earnings | 13,132 | 12,762 | Retained earnings | 13,328 | 12,762 | ||||||||||||||||
Treasury stock, at cost; 158,363,386 and 157,262,484 shares of common stock at March 31, 2022 and December 31, 2021 | (11,096) | (10,513) | ||||||||||||||||||||
Treasury stock, at cost; 159,355,829 and 157,262,484 shares of common stock at June 30, 2022 and December 31, 2021 | Treasury stock, at cost; 159,355,829 and 157,262,484 shares of common stock at June 30, 2022 and December 31, 2021 | (11,403) | (10,513) | |||||||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (471) | (410) | Accumulated other comprehensive loss | (599) | (410) | ||||||||||||||||
Total Moody's shareholders' equity | Total Moody's shareholders' equity | 2,394 | 2,727 | Total Moody's shareholders' equity | 2,294 | 2,727 | ||||||||||||||||
Noncontrolling interests | Noncontrolling interests | 188 | 189 | Noncontrolling interests | 185 | 189 | ||||||||||||||||
Total shareholders' equity | Total shareholders' equity | 2,582 | 2,916 | Total shareholders' equity | 2,479 | 2,916 | ||||||||||||||||
Total liabilities, noncontrolling interests and shareholders' equity | Total liabilities, noncontrolling interests and shareholders' equity | $ | 14,739 | $ | 14,680 | Total liabilities, noncontrolling interests and shareholders' equity | $ | 14,315 | $ | 14,680 |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Cash flows from operating activities | Cash flows from operating activities | Cash flows from operating activities | ||||||||||||||||||||
Net income | Net income | $ | 498 | $ | 736 | Net income | $ | 825 | $ | 1,313 | ||||||||||||
Reconciliation of net income to net cash provided by operating activities: | Reconciliation of net income to net cash provided by operating activities: | Reconciliation of net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 78 | 59 | Depreciation and amortization | 159 | 119 | ||||||||||||||||
Stock-based compensation | Stock-based compensation | 46 | 45 | Stock-based compensation | 84 | 86 | ||||||||||||||||
Deferred income taxes | Deferred income taxes | 30 | 44 | Deferred income taxes | 65 | 59 | ||||||||||||||||
FX translation losses reclassified to net income | FX translation losses reclassified to net income | 20 | — | |||||||||||||||||||
Changes in assets and liabilities: | Changes in assets and liabilities: | Changes in assets and liabilities: | ||||||||||||||||||||
Accounts receivable | Accounts receivable | (117) | (71) | Accounts receivable | 63 | (29) | ||||||||||||||||
Other current assets | Other current assets | (11) | 67 | Other current assets | (172) | 17 | ||||||||||||||||
Other assets | Other assets | (21) | (27) | Other assets | (12) | (23) | ||||||||||||||||
Lease obligations | Lease obligations | (2) | (3) | Lease obligations | (7) | (7) | ||||||||||||||||
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | (296) | (206) | Accounts payable and accrued liabilities | (276) | (175) | ||||||||||||||||
Deferred revenue | Deferred revenue | 290 | 146 | Deferred revenue | 92 | 49 | ||||||||||||||||
Unrecognized tax benefits and other non-current tax liabilities | Unrecognized tax benefits and other non-current tax liabilities | (18) | (78) | Unrecognized tax benefits and other non-current tax liabilities | (44) | (75) | ||||||||||||||||
Other liabilities | Other liabilities | (7) | (36) | Other liabilities | (36) | (64) | ||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 470 | 676 | Net cash provided by operating activities | 761 | 1,270 | ||||||||||||||||
Cash flows from investing activities | Cash flows from investing activities | Cash flows from investing activities | ||||||||||||||||||||
Capital additions | Capital additions | (59) | (14) | Capital additions | (133) | (44) | ||||||||||||||||
Purchases of investments | Purchases of investments | (46) | (65) | Purchases of investments | (182) | (109) | ||||||||||||||||
Sales and maturities of investments | Sales and maturities of investments | 27 | 45 | Sales and maturities of investments | 99 | 85 | ||||||||||||||||
Cash paid for acquisitions, net of cash acquired | Cash paid for acquisitions, net of cash acquired | (83) | (138) | Cash paid for acquisitions, net of cash acquired | (92) | (138) | ||||||||||||||||
Receipts from settlements of net investment hedges | Receipts from settlements of net investment hedges | — | 1 | Receipts from settlements of net investment hedges | 136 | 2 | ||||||||||||||||
Payments for settlements of net investment hedges | Payments for settlements of net investment hedges | — | (23) | Payments for settlements of net investment hedges | — | (47) | ||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (161) | (194) | Net cash used in investing activities | (172) | (251) | ||||||||||||||||
Cash flows from financing activities | Cash flows from financing activities | Cash flows from financing activities | ||||||||||||||||||||
Issuance of notes | Issuance of notes | 491 | — | Issuance of notes | 491 | — | ||||||||||||||||
Proceeds from stock-based compensation plans | Proceeds from stock-based compensation plans | 8 | 9 | Proceeds from stock-based compensation plans | 16 | 23 | ||||||||||||||||
Repurchase of shares related to stock-based compensation | Repurchase of shares related to stock-based compensation | (58) | (51) | Repurchase of shares related to stock-based compensation | (83) | (79) | ||||||||||||||||
Treasury shares | Treasury shares | (560) | (132) | Treasury shares | (871) | (503) | ||||||||||||||||
Cash paid for ASR contract relating to shares retained by counterparty until final settlement | (98) | — | ||||||||||||||||||||
Dividends | Dividends | (130) | (116) | Dividends | (259) | (232) | ||||||||||||||||
Debt issuance costs and related fees | Debt issuance costs and related fees | (5) | — | Debt issuance costs and related fees | (5) | — | ||||||||||||||||
Dividends to noncontrolling interest | Dividends to noncontrolling interest | (1) | (1) | |||||||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | (352) | (290) | Net cash used in financing activities | (712) | (792) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | Effect of exchange rate changes on cash and cash equivalents | (18) | (20) | Effect of exchange rate changes on cash and cash equivalents | (71) | (15) | ||||||||||||||||
(Decrease) increase in cash and cash equivalents | (Decrease) increase in cash and cash equivalents | (61) | 172 | (Decrease) increase in cash and cash equivalents | (194) | 212 | ||||||||||||||||
Cash and cash equivalents, beginning of period | Cash and cash equivalents, beginning of period | 1,811 | 2,597 | Cash and cash equivalents, beginning of period | 1,811 | 2,597 | ||||||||||||||||
Cash and cash equivalents, end of period | Cash and cash equivalents, end of period | $ | 1,750 | $ | 2,769 | Cash and cash equivalents, end of period | $ | 1,617 | $ | 2,809 |
Shareholders of Moody's Corporation | Shareholders of Moody's Corporation | Shareholders of Moody's Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 342.9 | $ | 3 | $ | 735 | $ | 11,011 | (155.8) | $ | (9,748) | $ | (432) | $ | 1,569 | $ | 194 | $ | 1,763 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | Balance at March 31, 2021 | 342.9 | $ | 3 | $ | 739 | $ | 11,632 | (155.7) | $ | (9,904) | $ | (440) | $ | 2,030 | $ | 195 | $ | 2,225 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 736 | 736 | — | 736 | Net income | 577 | 577 | — | 577 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.62 per share) | Dividends ($0.62 per share) | (115) | (115) | (1) | (116) | Dividends ($0.62 per share) | (115) | (115) | — | (115) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | 45 | 45 | 45 | Stock-based compensation | 41 | 41 | 41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation plans at average cost, net | Shares issued for stock-based compensation plans at average cost, net | (41) | 0.6 | (24) | (65) | (65) | Shares issued for stock-based compensation plans at average cost, net | 4 | 0.1 | 5 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | Treasury shares repurchased | (0.5) | (132) | (132) | (132) | Treasury shares repurchased | (1.1) | (371) | (371) | (371) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $36 million) | (11) | (11) | 2 | (9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $11 million) | Currency translation adjustment, net of net investment hedge activity (net of tax of $11 million) | 7 | 7 | (1) | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs and actuarial losses (net of tax of $1 million) | 2 | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain on cash flow hedges | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 342.9 | $ | 3 | $ | 739 | $ | 11,632 | (155.7) | $ | (9,904) | $ | (440) | $ | 2,030 | $ | 195 | $ | 2,225 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs/actuarial losses and settlement charge (net of tax of $2 million) | Amortization of prior service costs/actuarial losses and settlement charge (net of tax of $2 million) | 8 | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | Balance at June 30, 2021 | 342.9 | $ | 3 | $ | 784 | $ | 12,094 | (156.7) | $ | (10,270) | $ | (425) | $ | 2,186 | $ | 194 | $ | 2,380 |
Shareholders of Moody's Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 342.9 | $ | 3 | $ | 885 | $ | 12,762 | (157.3) | $ | (10,513) | $ | (410) | $ | 2,727 | $ | 189 | $ | 2,916 | |||||||||||||||||||||||||||||||||||||||||
Net income | 498 | 498 | — | 498 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.70 per share) | (128) | (128) | (1) | (129) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 46 | 46 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation plans at average cost, net | (42) | 0.5 | (32) | (74) | (74) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued as consideration to acquire kompany(1) | 35 | 0.1 | 9 | 44 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | (1.7) | (560) | (560) | (560) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchase pending final settlement | (98) | (98) | (98) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $16 million) | (60) | (60) | — | (60) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial gains and prior service costs (net of tax of $1 million) | (2) | (2) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on cash flow hedges | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 342.9 | $ | 3 | $ | 826 | $ | 13,132 | (158.4) | $ | (11,096) | $ | (471) | $ | 2,394 | $ | 188 | $ | 2,582 |
Shareholders of Moody's Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 342.9 | $ | 3 | $ | 735 | $ | 11,011 | (155.8) | $ | (9,748) | $ | (432) | $ | 1,569 | $ | 194 | $ | 1,763 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 1,313 | 1,313 | — | 1,313 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($1.24 per share) | (230) | (230) | (1) | (231) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 86 | 86 | 86 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation plans at average cost, net | (37) | 0.7 | (19) | (56) | (56) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | (1.6) | (503) | (503) | (503) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $25 million) | (4) | (4) | 1 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs/actuarial losses and settlement charge (net of tax of $3 million) | 10 | 10 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on cash flow hedges | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 342.9 | $ | 3 | $ | 784 | $ | 12,094 | (156.7) | $ | (10,270) | $ | (425) | $ | 2,186 | $ | 194 | $ | 2,380 |
Shareholders of Moody's Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 342.9 | $ | 3 | $ | 826 | $ | 13,132 | (158.4) | $ | (11,096) | $ | (471) | $ | 2,394 | $ | 188 | $ | 2,582 | |||||||||||||||||||||||||||||||||||||||||
Net income | 327 | 327 | — | 327 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.70 per share) | (131) | (131) | — | (131) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 38 | 38 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation plans at average cost, net | 6 | — | 1 | 7 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | 95 | (1.0) | (308) | (213) | (213) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $57 million) | (133) | (133) | (3) | (136) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial gains and prior service costs (net of tax of $2 million) | 4 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs and actuarial losses | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 342.9 | $ | 3 | $ | 965 | $ | 13,328 | (159.4) | $ | (11,403) | $ | (599) | $ | 2,294 | $ | 185 | $ | 2,479 |
Shareholders of Moody's Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 342.9 | $ | 3 | $ | 885 | $ | 12,762 | (157.3) | $ | (10,513) | $ | (410) | $ | 2,727 | $ | 189 | $ | 2,916 | |||||||||||||||||||||||||||||||||||||||||
Net income | 825 | 825 | — | 825 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($1.40 per share) | (259) | (259) | (1) | (260) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 84 | 84 | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation plans at average cost, net | (36) | 0.5 | (31) | (67) | (67) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued as consideration to acquire kompany(1) | 35 | 0.1 | 9 | 44 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | (3) | (2.7) | (868) | (871) | (871) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $73 million) | (193) | (193) | (3) | (196) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial gains and prior service costs (net of tax of $1 million) | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs and actuarial losses | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on cash flow hedges | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 342.9 | $ | 3 | $ | 965 | $ | 13,328 | (159.4) | $ | (11,403) | $ | (599) | $ | 2,294 | $ | 185 | $ | 2,479 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
MIS: | MIS: | MIS: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate Finance (CFG) | Corporate Finance (CFG) | Corporate Finance (CFG) | ||||||||||||||||||||||||||||||||||||||||||||
Investment-grade | Investment-grade | $ | 114 | $ | 134 | Investment-grade | $ | 68 | $ | 102 | $ | 182 | $ | 236 | ||||||||||||||||||||||||||||||||
High-yield | High-yield | 39 | 141 | High-yield | 31 | 124 | 70 | 265 | ||||||||||||||||||||||||||||||||||||||
Bank loans | Bank loans | 113 | 180 | Bank loans | 72 | 157 | 185 | 337 | ||||||||||||||||||||||||||||||||||||||
Other accounts (1) | Other accounts (1) | 151 | 150 | Other accounts (1) | 151 | 167 | 302 | 317 | ||||||||||||||||||||||||||||||||||||||
Total CFG | Total CFG | 417 | 605 | Total CFG | 322 | 550 | 739 | 1,155 | ||||||||||||||||||||||||||||||||||||||
Structured Finance (SFG) | Structured Finance (SFG) | Structured Finance (SFG) | ||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 32 | 26 | Asset-backed securities | 31 | 33 | 63 | 59 | ||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 35 | 27 | RMBS | 28 | 31 | 63 | 58 | ||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 38 | 24 | CMBS | 27 | 23 | 65 | 47 | ||||||||||||||||||||||||||||||||||||||
Structured credit | Structured credit | 39 | 38 | Structured credit | 36 | 53 | 75 | 91 | ||||||||||||||||||||||||||||||||||||||
Other accounts | Other accounts | — | 1 | Other accounts | 1 | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
Total SFG | Total SFG | 144 | 116 | Total SFG | 123 | 140 | 267 | 256 | ||||||||||||||||||||||||||||||||||||||
Financial Institutions (FIG) | Financial Institutions (FIG) | Financial Institutions (FIG) | ||||||||||||||||||||||||||||||||||||||||||||
Banking | Banking | 89 | 109 | Banking | 93 | 101 | 182 | 210 | ||||||||||||||||||||||||||||||||||||||
Insurance | Insurance | 34 | 43 | Insurance | 24 | 33 | 58 | 76 | ||||||||||||||||||||||||||||||||||||||
Managed investments | Managed investments | 5 | 8 | Managed investments | 8 | 13 | 13 | 21 | ||||||||||||||||||||||||||||||||||||||
Other accounts | Other accounts | 3 | 2 | Other accounts | 3 | 3 | 6 | 5 | ||||||||||||||||||||||||||||||||||||||
Total FIG | Total FIG | 131 | 162 | Total FIG | 128 | 150 | 259 | 312 | ||||||||||||||||||||||||||||||||||||||
Public, Project and Infrastructure Finance (PPIF) | Public, Project and Infrastructure Finance (PPIF) | Public, Project and Infrastructure Finance (PPIF) | ||||||||||||||||||||||||||||||||||||||||||||
Public finance / sovereign | Public finance / sovereign | 58 | 67 | Public finance / sovereign | 55 | 63 | 113 | 130 | ||||||||||||||||||||||||||||||||||||||
Project and infrastructure | Project and infrastructure | 65 | 76 | Project and infrastructure | 67 | 67 | 132 | 143 | ||||||||||||||||||||||||||||||||||||||
Total PPIF | Total PPIF | 123 | 143 | Total PPIF | 122 | 130 | 245 | 273 | ||||||||||||||||||||||||||||||||||||||
Total ratings revenue | Total ratings revenue | 815 | 1,026 | Total ratings revenue | 695 | 970 | 1,510 | 1,996 | ||||||||||||||||||||||||||||||||||||||
MIS Other | MIS Other | 12 | 10 | MIS Other | 11 | 10 | 23 | 20 | ||||||||||||||||||||||||||||||||||||||
Total external revenue | Total external revenue | 827 | 1,036 | Total external revenue | 706 | 980 | 1,533 | 2,016 | ||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 43 | 40 | Intersegment revenue | 43 | 42 | 86 | 82 | ||||||||||||||||||||||||||||||||||||||
Total MIS | Total MIS | 870 | 1,076 | Total MIS | 749 | 1,022 | 1,619 | 2,098 | ||||||||||||||||||||||||||||||||||||||
MA: | MA: | MA: | ||||||||||||||||||||||||||||||||||||||||||||
Decision Solutions | Decision Solutions | 334 | 225 | Decision Solutions | 312 | 222 | 646 | 447 | ||||||||||||||||||||||||||||||||||||||
Research and Insights | Research and Insights | 183 | 171 | Research and Insights | 185 | 175 | 368 | 346 | ||||||||||||||||||||||||||||||||||||||
Data and Information | Data and Information | 178 | 168 | Data and Information | 178 | 176 | 356 | 344 | ||||||||||||||||||||||||||||||||||||||
Total external revenue | Total external revenue | 695 | 564 | Total external revenue | 675 | 573 | 1,370 | 1,137 | ||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 2 | 2 | Intersegment revenue | 1 | 2 | 3 | 4 | ||||||||||||||||||||||||||||||||||||||
Total MA | Total MA | 697 | 566 | Total MA | 676 | 575 | 1,373 | 1,141 | ||||||||||||||||||||||||||||||||||||||
Eliminations | Eliminations | (45) | (42) | Eliminations | (44) | (44) | (89) | (86) | ||||||||||||||||||||||||||||||||||||||
Total MCO | Total MCO | $ | 1,522 | $ | 1,600 | Total MCO | $ | 1,381 | $ | 1,553 | $ | 2,903 | $ | 3,153 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
U.S. | Non-U.S | Total | U.S. | Non-U.S | Total | ||||||||||||||||||||||||||||||
MIS: | |||||||||||||||||||||||||||||||||||
Corporate Finance | $ | 210 | $ | 112 | $ | 322 | $ | 345 | $ | 205 | $ | 550 | |||||||||||||||||||||||
Structured Finance | 83 | 40 | 123 | 88 | 52 | 140 | |||||||||||||||||||||||||||||
Financial Institutions | 53 | 75 | 128 | 69 | 81 | 150 | |||||||||||||||||||||||||||||
Public, Project and Infrastructure Finance | 78 | 44 | 122 | 79 | 51 | 130 | |||||||||||||||||||||||||||||
Total ratings revenue | 424 | 271 | 695 | 581 | 389 | 970 | |||||||||||||||||||||||||||||
MIS Other | 2 | 9 | 11 | 1 | 9 | 10 | |||||||||||||||||||||||||||||
Total MIS | 426 | 280 | 706 | 582 | 398 | 980 | |||||||||||||||||||||||||||||
MA: | |||||||||||||||||||||||||||||||||||
Decision Solutions | 133 | 179 | 312 | 96 | 126 | 222 | |||||||||||||||||||||||||||||
Research and Insights | 102 | 83 | 185 | 96 | 79 | 175 | |||||||||||||||||||||||||||||
Data and Information | 62 | 116 | 178 | 57 | 119 | 176 | |||||||||||||||||||||||||||||
Total MA | 297 | 378 | 675 | 249 | 324 | 573 | |||||||||||||||||||||||||||||
Total MCO | $ | 723 | $ | 658 | $ | 1,381 | $ | 831 | $ | 722 | $ | 1,553 | |||||||||||||||||||||||
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
U.S. | Non-U.S | Total | U.S. | Non-U.S | Total | ||||||||||||||||||||||||||||||
MIS: | |||||||||||||||||||||||||||||||||||
Corporate Finance | $ | 485 | $ | 254 | $ | 739 | $ | 759 | $ | 396 | $ | 1,155 | |||||||||||||||||||||||
Structured Finance | 180 | 87 | 267 | 156 | 100 | 256 | |||||||||||||||||||||||||||||
Financial Institutions | 118 | 141 | 259 | 155 | 157 | 312 | |||||||||||||||||||||||||||||
Public, Project and Infrastructure Finance | 153 | 92 | 245 | 157 | 116 | 273 | |||||||||||||||||||||||||||||
Total ratings revenue | 936 | 574 | 1,510 | 1,227 | 769 | 1,996 | |||||||||||||||||||||||||||||
MIS Other | 3 | 20 | 23 | 2 | 18 | 20 | |||||||||||||||||||||||||||||
Total MIS | 939 | 594 | 1,533 | 1,229 | 787 | 2,016 | |||||||||||||||||||||||||||||
MA: | |||||||||||||||||||||||||||||||||||
Decision Solutions | 282 | 364 | 646 | 187 | 260 | 447 | |||||||||||||||||||||||||||||
Research and Insights | 203 | 165 | 368 | 188 | 158 | 346 | |||||||||||||||||||||||||||||
Data and Information | 122 | 234 | 356 | 112 | 232 | 344 | |||||||||||||||||||||||||||||
Total MA | 607 | 763 | 1,370 | 487 | 650 | 1,137 | |||||||||||||||||||||||||||||
Total MCO | $ | 1,546 | $ | 1,357 | $ | 2,903 | $ | 1,716 | $ | 1,437 | $ | 3,153 |
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
U.S. | Non-U.S | Total | U.S. | Non-U.S | Total | ||||||||||||||||||||||||||||||
MIS: | |||||||||||||||||||||||||||||||||||
Corporate Finance | $ | 275 | $ | 142 | $ | 417 | $ | 414 | $ | 191 | $ | 605 | |||||||||||||||||||||||
Structured Finance | 97 | 47 | 144 | 68 | 48 | 116 | |||||||||||||||||||||||||||||
Financial Institutions | 65 | 66 | 131 | 86 | 76 | 162 | |||||||||||||||||||||||||||||
Public, Project and Infrastructure Finance | 75 | 48 | 123 | 78 | 65 | 143 | |||||||||||||||||||||||||||||
Total ratings revenue | 512 | 303 | 815 | 646 | 380 | 1,026 | |||||||||||||||||||||||||||||
MIS Other | 1 | 11 | 12 | 1 | 9 | 10 | |||||||||||||||||||||||||||||
Total MIS | 513 | 314 | 827 | 647 | 389 | 1,036 | |||||||||||||||||||||||||||||
MA: | |||||||||||||||||||||||||||||||||||
Decision Solutions | 188 | 146 | 334 | 91 | 134 | 225 | |||||||||||||||||||||||||||||
Research and Insights | 101 | 82 | 183 | 92 | 79 | 171 | |||||||||||||||||||||||||||||
Data and Information | 60 | 118 | 178 | 55 | 113 | 168 | |||||||||||||||||||||||||||||
Total MA | 349 | 346 | 695 | 238 | 326 | 564 | |||||||||||||||||||||||||||||
Total MCO | $ | 862 | $ | 660 | $ | 1,522 | $ | 885 | $ | 715 | $ | 1,600 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
MIS: | MIS: | MIS: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | $ | 513 | $ | 647 | U.S. | $ | 426 | $ | 582 | $ | 939 | $ | 1,229 | ||||||||||||||||||||||||||||||||
Non-U.S.: | Non-U.S.: | Non-U.S.: | ||||||||||||||||||||||||||||||||||||||||||||
EMEA | EMEA | 193 | 248 | EMEA | 165 | 248 | 358 | 496 | ||||||||||||||||||||||||||||||||||||||
Asia-Pacific | Asia-Pacific | 74 | 97 | Asia-Pacific | 80 | 100 | 154 | 197 | ||||||||||||||||||||||||||||||||||||||
Americas | Americas | 47 | 44 | Americas | 35 | 50 | 82 | 94 | ||||||||||||||||||||||||||||||||||||||
Total Non-U.S. | Total Non-U.S. | 314 | 389 | Total Non-U.S. | 280 | 398 | 594 | 787 | ||||||||||||||||||||||||||||||||||||||
Total MIS | Total MIS | 827 | 1,036 | Total MIS | 706 | 980 | 1,533 | 2,016 | ||||||||||||||||||||||||||||||||||||||
MA: | MA: | MA: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 349 | 238 | U.S. | 297 | 249 | 607 | 487 | ||||||||||||||||||||||||||||||||||||||
Non-U.S.: | Non-U.S.: | Non-U.S.: | ||||||||||||||||||||||||||||||||||||||||||||
EMEA | EMEA | 241 | 230 | EMEA | 257 | 233 | 520 | 463 | ||||||||||||||||||||||||||||||||||||||
Asia-Pacific | Asia-Pacific | 61 | 59 | Asia-Pacific | 71 | 55 | 139 | 114 | ||||||||||||||||||||||||||||||||||||||
Americas | Americas | 44 | 37 | Americas | 50 | 36 | 104 | 73 | ||||||||||||||||||||||||||||||||||||||
Total Non-U.S. | Total Non-U.S. | 346 | 326 | Total Non-U.S. | 378 | 324 | 763 | 650 | ||||||||||||||||||||||||||||||||||||||
Total MA | Total MA | 695 | 564 | Total MA | 675 | 573 | 1,370 | 1,137 | ||||||||||||||||||||||||||||||||||||||
Total MCO | Total MCO | $ | 1,522 | $ | 1,600 | Total MCO | $ | 1,381 | $ | 1,553 | $ | 2,903 | $ | 3,153 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Transaction | Recurring | Total | Transaction | Recurring | Total | ||||||||||||||||||||||||||||||
Corporate Finance | $ | 293 | $ | 124 | $ | 417 | $ | 487 | $ | 118 | $ | 605 | |||||||||||||||||||||||
70 | % | 30 | % | 100 | % | 80 | % | 20 | % | 100 | % | ||||||||||||||||||||||||
Structured Finance | $ | 93 | $ | 51 | $ | 144 | $ | 66 | $ | 50 | $ | 116 | |||||||||||||||||||||||
65 | % | 35 | % | 100 | % | 57 | % | 43 | % | 100 | % | ||||||||||||||||||||||||
Financial Institutions | $ | 61 | $ | 70 | $ | 131 | $ | 90 | $ | 72 | $ | 162 | |||||||||||||||||||||||
47 | % | 53 | % | 100 | % | 56 | % | 44 | % | 100 | % | ||||||||||||||||||||||||
Public, Project and Infrastructure Finance | $ | 79 | $ | 44 | $ | 123 | $ | 100 | $ | 43 | $ | 143 | |||||||||||||||||||||||
64 | % | 36 | % | 100 | % | 70 | % | 30 | % | 100 | % | ||||||||||||||||||||||||
MIS Other | $ | 3 | $ | 9 | $ | 12 | $ | 2 | $ | 8 | $ | 10 | |||||||||||||||||||||||
25 | % | 75 | % | 100 | % | 20 | % | 80 | % | 100 | % | ||||||||||||||||||||||||
Total MIS | $ | 529 | $ | 298 | $ | 827 | $ | 745 | $ | 291 | $ | 1,036 | |||||||||||||||||||||||
64 | % | 36 | % | 100 | % | 72 | % | 28 | % | 100 | % | ||||||||||||||||||||||||
Decision Solutions | $ | 43 | $ | 291 | $ | 334 | $ | 41 | $ | 184 | $ | 225 | |||||||||||||||||||||||
13 | % | 87 | % | 100 | % | 18 | % | 82 | % | 100 | % | ||||||||||||||||||||||||
Research and Insights | $ | 1 | $ | 182 | $ | 183 | $ | 1 | $ | 170 | $ | 171 | |||||||||||||||||||||||
1 | % | 99 | % | 100 | % | 1 | % | 99 | % | 100 | % | ||||||||||||||||||||||||
Data and Information | $ | — | $ | 178 | $ | 178 | $ | 1 | $ | 167 | $ | 168 | |||||||||||||||||||||||
— | % | 100 | % | 100 | % | 1 | % | 99 | % | 100 | % | ||||||||||||||||||||||||
Total MA | $ | 44 | (1) | $ | 651 | $ | 695 | $ | 43 | $ | 521 | $ | 564 | ||||||||||||||||||||||
6 | % | 94 | % | 100 | % | 8 | % | 92 | % | 100 | % | ||||||||||||||||||||||||
Total Moody's Corporation | $ | 573 | $ | 949 | $ | 1,522 | $ | 788 | $ | 812 | $ | 1,600 | |||||||||||||||||||||||
38 | % | 62 | % | 100 | % | 49 | % | 51 | % | 100 | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Transaction | Recurring | Total | Transaction | Recurring | Total | ||||||||||||||||||||||||||||||
Corporate Finance | $ | 199 | $ | 123 | $ | 322 | $ | 427 | $ | 123 | $ | 550 | |||||||||||||||||||||||
62 | % | 38 | % | 100 | % | 78 | % | 22 | % | 100 | % | ||||||||||||||||||||||||
Structured Finance | $ | 73 | $ | 50 | $ | 123 | $ | 92 | $ | 48 | $ | 140 | |||||||||||||||||||||||
59 | % | 41 | % | 100 | % | 66 | % | 34 | % | 100 | % | ||||||||||||||||||||||||
Financial Institutions | $ | 57 | $ | 71 | $ | 128 | $ | 79 | $ | 71 | $ | 150 | |||||||||||||||||||||||
45 | % | 55 | % | 100 | % | 53 | % | 47 | % | 100 | % | ||||||||||||||||||||||||
Public, Project and Infrastructure Finance | $ | 82 | $ | 40 | $ | 122 | $ | 88 | $ | 42 | $ | 130 | |||||||||||||||||||||||
67 | % | 33 | % | 100 | % | 68 | % | 32 | % | 100 | % | ||||||||||||||||||||||||
MIS Other | $ | 1 | $ | 10 | $ | 11 | $ | — | $ | 10 | $ | 10 | |||||||||||||||||||||||
9 | % | 91 | % | 100 | % | — | % | 100 | % | 100 | % | ||||||||||||||||||||||||
Total MIS | $ | 412 | $ | 294 | $ | 706 | $ | 686 | $ | 294 | $ | 980 | |||||||||||||||||||||||
58 | % | 42 | % | 100 | % | 70 | % | 30 | % | 100 | % | ||||||||||||||||||||||||
Decision Solutions | $ | 40 | $ | 272 | $ | 312 | $ | 36 | $ | 186 | $ | 222 | |||||||||||||||||||||||
13 | % | 87 | % | 100 | % | 16 | % | 84 | % | 100 | % | ||||||||||||||||||||||||
Research and Insights | $ | 2 | $ | 183 | $ | 185 | $ | 3 | $ | 172 | $ | 175 | |||||||||||||||||||||||
1 | % | 99 | % | 100 | % | 2 | % | 98 | % | 100 | % | ||||||||||||||||||||||||
Data and Information | $ | — | $ | 178 | $ | 178 | $ | 1 | $ | 175 | $ | 176 | |||||||||||||||||||||||
— | % | 100 | % | 100 | % | 1 | % | 99 | % | 100 | % | ||||||||||||||||||||||||
Total MA | $ | 42 | (1) | $ | 633 | $ | 675 | $ | 40 | $ | 533 | $ | 573 | ||||||||||||||||||||||
6 | % | 94 | % | 100 | % | 7 | % | 93 | % | 100 | % | ||||||||||||||||||||||||
Total Moody's Corporation | $ | 454 | $ | 927 | $ | 1,381 | $ | 726 | $ | 827 | $ | 1,553 | |||||||||||||||||||||||
33 | % | 67 | % | 100 | % | 47 | % | 53 | % | 100 | % | ||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Transaction | Recurring | Total | Transaction | Recurring | Total | ||||||||||||||||||||||||||||||
Corporate Finance | $ | 492 | $ | 247 | $ | 739 | $ | 914 | $ | 241 | $ | 1,155 | |||||||||||||||||||||||
67 | % | 33 | % | 100 | % | 79 | % | 21 | % | 100 | % | ||||||||||||||||||||||||
Structured Finance | $ | 166 | $ | 101 | $ | 267 | $ | 158 | $ | 98 | $ | 256 | |||||||||||||||||||||||
62 | % | 38 | % | 100 | % | 62 | % | 38 | % | 100 | % | ||||||||||||||||||||||||
Financial Institutions | $ | 118 | $ | 141 | $ | 259 | $ | 169 | $ | 143 | $ | 312 | |||||||||||||||||||||||
46 | % | 54 | % | 100 | % | 54 | % | 46 | % | 100 | % | ||||||||||||||||||||||||
Public, Project and Infrastructure Finance | $ | 161 | $ | 84 | $ | 245 | $ | 188 | $ | 85 | $ | 273 | |||||||||||||||||||||||
66 | % | 34 | % | 100 | % | 69 | % | 31 | % | 100 | % | ||||||||||||||||||||||||
MIS Other | $ | 2 | $ | 21 | $ | 23 | $ | 2 | $ | 18 | $ | 20 | |||||||||||||||||||||||
9 | % | 91 | % | 100 | % | 10 | % | 90 | % | 100 | % | ||||||||||||||||||||||||
Total MIS | $ | 939 | $ | 594 | $ | 1,533 | $ | 1,431 | $ | 585 | $ | 2,016 | |||||||||||||||||||||||
61 | % | 39 | % | 100 | % | 71 | % | 29 | % | 100 | % | ||||||||||||||||||||||||
Decision Solutions | $ | 83 | $ | 563 | $ | 646 | $ | 77 | $ | 370 | $ | 447 | |||||||||||||||||||||||
13 | % | 87 | % | 100 | % | 17 | % | 83 | % | 100 | % | ||||||||||||||||||||||||
Research and Insights | $ | 3 | $ | 365 | $ | 368 | $ | 4 | $ | 342 | $ | 346 | |||||||||||||||||||||||
1 | % | 99 | % | 100 | % | 1 | % | 99 | % | 100 | % | ||||||||||||||||||||||||
Data and Information | $ | — | $ | 356 | $ | 356 | $ | 2 | $ | 342 | $ | 344 | |||||||||||||||||||||||
— | % | 100 | % | 100 | % | 1 | % | 99 | % | 100 | % | ||||||||||||||||||||||||
Total MA | $ | 86 | (1) | $ | 1,284 | $ | 1,370 | $ | 83 | $ | 1,054 | $ | 1,137 | ||||||||||||||||||||||
6 | % | 94 | % | 100 | % | 7 | % | 93 | % | 100 | % | ||||||||||||||||||||||||
Total Moody's Corporation | $ | 1,025 | $ | 1,878 | $ | 2,903 | $ | 1,514 | $ | 1,639 | $ | 3,153 | |||||||||||||||||||||||
35 | % | 65 | % | 100 | % | 48 | % | 52 | % | 100 | % |
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MIS | MA | Total | MIS | MA | Total | MIS | MA | Total | MIS | MA | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue recognized at a point in time | Revenue recognized at a point in time | $ | 529 | $ | 41 | $ | 570 | $ | 745 | $ | 29 | $ | 774 | Revenue recognized at a point in time | $ | 412 | $ | 16 | $ | 428 | $ | 939 | $ | 57 | $ | 996 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue recognized over time | Revenue recognized over time | 298 | 654 | 952 | 291 | 535 | 826 | Revenue recognized over time | 294 | 659 | 953 | 594 | 1,313 | 1,907 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 827 | $ | 695 | $ | 1,522 | $ | 1,036 | $ | 564 | $ | 1,600 | Total | $ | 706 | $ | 675 | $ | 1,381 | $ | 1,533 | $ | 1,370 | $ | 2,903 |
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
MIS | MA | Total | MIS | MA | Total | ||||||||||||||||||||||||||||||
Revenue recognized at a point in time | $ | 686 | $ | 20 | $ | 706 | $ | 1,431 | $ | 49 | $ | 1,480 | |||||||||||||||||||||||
Revenue recognized over time | 294 | 553 | 847 | 585 | 1,088 | 1,673 | |||||||||||||||||||||||||||||
Total | $ | 980 | $ | 573 | $ | 1,553 | $ | 2,016 | $ | 1,137 | $ | 3,153 |
As at March 31, 2022 | As at December 31, 2021 | ||||||||||||||||||||||
MIS | MA | MIS | MA | ||||||||||||||||||||
Unbilled Receivables | $ | 416 | $ | 223 | $ | 386 | $ | 152 |
As at June 30, 2022 | As at December 31, 2021 | ||||||||||||||||||||||
MIS | MA | MIS | MA | ||||||||||||||||||||
Unbilled Receivables | $ | 397 | $ | 167 | $ | 386 | $ | 152 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
MIS | MA | Total | MIS | MA | Total | ||||||||||||||||||||||||||||||
Balance at March 31, | $ | 377 | $ | 1,234 | $ | 1,611 | $ | 388 | $ | 940 | $ | 1,328 | |||||||||||||||||||||||
Changes in deferred revenue | |||||||||||||||||||||||||||||||||||
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (117) | (391) | (508) | (119) | (338) | (457) | |||||||||||||||||||||||||||||
Increases due to amounts billable excluding amounts recognized as revenue during the period | 94 | 213 | 307 | 98 | 262 | 360 | |||||||||||||||||||||||||||||
Effect of exchange rate changes | (7) | (37) | (44) | 1 | 3 | 4 | |||||||||||||||||||||||||||||
Total changes in deferred revenue | (30) | (215) | (245) | (20) | (73) | (93) | |||||||||||||||||||||||||||||
Balance at June 30, | $ | 347 | $ | 1,019 | $ | 1,366 | $ | 368 | $ | 867 | $ | 1,235 | |||||||||||||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
MIS | MA | Total | MIS | MA | Total | ||||||||||||||||||||||||||||||
Balance at December 31, | $ | 296 | $ | 1,039 | $ | 1,335 | $ | 313 | $ | 874 | $ | 1,187 | |||||||||||||||||||||||
Changes in deferred revenue | |||||||||||||||||||||||||||||||||||
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (95) | (431) | (526) | (96) | (386) | (482) | |||||||||||||||||||||||||||||
Increases due to amounts billable excluding amounts recognized as revenue during the period | 178 | 636 | 814 | 174 | 452 | 626 | |||||||||||||||||||||||||||||
Increases due to acquisitions during the period | — | 1 | 1 | — | 4 | 4 | |||||||||||||||||||||||||||||
Effect of exchange rate changes | (2) | (11) | (13) | (3) | (4) | (7) | |||||||||||||||||||||||||||||
Total changes in deferred revenue | 81 | 195 | 276 | 75 | 66 | 141 | |||||||||||||||||||||||||||||
Balance at March 31, | $ | 377 | $ | 1,234 | $ | 1,611 | $ | 388 | $ | 940 | $ | 1,328 | |||||||||||||||||||||||
Deferred revenue - current | $ | 294 | $ | 1,231 | $ | 1,525 | $ | 295 | $ | 937 | 1,232 | ||||||||||||||||||||||||
Deferred revenue - non-current | $ | 83 | $ | 3 | $ | 86 | $ | 93 | $ | 3 | 96 |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
MIS | MA | Total | MIS | MA | Total | ||||||||||||||||||||||||||||||
Balance at December 31, | $ | 296 | $ | 1,039 | $ | 1,335 | $ | 313 | $ | 874 | $ | 1,187 | |||||||||||||||||||||||
Changes in deferred revenue | |||||||||||||||||||||||||||||||||||
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (155) | (654) | (809) | (162) | (565) | (727) | |||||||||||||||||||||||||||||
Increases due to amounts billable excluding amounts recognized as revenue during the period | 215 | 680 | 895 | 219 | 555 | 774 | |||||||||||||||||||||||||||||
Increases due to acquisitions during the period | — | 1 | 1 | — | 4 | 4 | |||||||||||||||||||||||||||||
Effect of exchange rate changes | (9) | (47) | (56) | (2) | (1) | (3) | |||||||||||||||||||||||||||||
Total changes in deferred revenue | 51 | (20) | 31 | 55 | (7) | 48 | |||||||||||||||||||||||||||||
Balance at June 30, | $ | 347 | $ | 1,019 | $ | 1,366 | $ | 368 | $ | 867 | $ | 1,235 | |||||||||||||||||||||||
Deferred revenue - current | $ | 268 | $ | 1,017 | $ | 1,285 | $ | 279 | $ | 863 | $ | 1,142 | |||||||||||||||||||||||
Deferred revenue - non-current | $ | 79 | $ | 2 | $ | 81 | $ | 89 | $ | 4 | $ | 93 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation cost | Stock-based compensation cost | $ | 46 | $ | 45 | Stock-based compensation cost | $ | 38 | $ | 41 | $ | 84 | $ | 86 | ||||||||||||||||||||||||||||||||
Tax benefit | Tax benefit | $ | 11 | $ | 11 | Tax benefit | $ | 9 | $ | 10 | $ | 20 | $ | 21 |
Expected dividend yield | 0.86 | % | |||
Expected stock volatility | 27 | % | |||
Risk-free interest rate | 1.88 | % | |||
Expected holding period | 5.6 years |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Exercise of stock options: | Exercise of stock options: | Exercise of stock options: | ||||||||||||||||||||
Proceeds from stock option exercises | Proceeds from stock option exercises | $ | 3 | $ | 6 | Proceeds from stock option exercises | $ | 4 | $ | 16 | ||||||||||||
Aggregate intrinsic value | Aggregate intrinsic value | $ | 4 | $ | 9 | Aggregate intrinsic value | $ | 5 | $ | 35 | ||||||||||||
Tax benefit realized upon exercise | Tax benefit realized upon exercise | $ | 1 | $ | 2 | Tax benefit realized upon exercise | $ | 1 | $ | 8 | ||||||||||||
Number of shares exercised (1) | Number of shares exercised (1) | — | 0.1 | Number of shares exercised (1) | — | 0.2 | ||||||||||||||||
Vesting of restricted stock: | Vesting of restricted stock: | Vesting of restricted stock: | ||||||||||||||||||||
Fair value of shares vested | Fair value of shares vested | $ | 166 | $ | 178 | Fair value of shares vested | $ | 170 | $ | 187 | ||||||||||||
Tax benefit realized upon vesting | Tax benefit realized upon vesting | $ | 39 | $ | 41 | Tax benefit realized upon vesting | $ | 40 | $ | 43 | ||||||||||||
Number of shares vested | Number of shares vested | 0.5 | 0.6 | Number of shares vested | 0.5 | 0.7 | ||||||||||||||||
Vesting of performance-based restricted stock: | Vesting of performance-based restricted stock: | Vesting of performance-based restricted stock: | ||||||||||||||||||||
Fair value of shares vested | Fair value of shares vested | $ | 50 | $ | 29 | Fair value of shares vested | $ | 50 | $ | 28 | ||||||||||||
Tax benefit realized upon vesting | Tax benefit realized upon vesting | $ | 12 | $ | 6 | Tax benefit realized upon vesting | $ | 12 | $ | 7 | ||||||||||||
Number of shares vested | Number of shares vested | 0.2 | 0.1 | Number of shares vested | 0.2 | 0.1 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Income taxes paid | $ | 70 | $ | 68 |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Income taxes paid | $ | 326 | $ | 327 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Basic | Basic | 185.1 | 187.2 | Basic | 184.1 | 186.7 | 184.6 | 187.0 | ||||||||||||||||||||||||||||||||||||||
Dilutive effect of shares issuable under stock-based compensation plans | Dilutive effect of shares issuable under stock-based compensation plans | 1.0 | 1.4 | Dilutive effect of shares issuable under stock-based compensation plans | 0.8 | 1.2 | 0.8 | 1.2 | ||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | 186.1 | 188.6 | Diluted | 184.9 | 187.9 | 185.4 | 188.2 | ||||||||||||||||||||||||||||||||||||||
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above | Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above | 0.3 | 0.3 | Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above | 0.8 | 0.2 | 0.4 | 0.3 |
As of March 31, 2022 | As of June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet location | Balance sheet location | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost | Gains/(Losses) | Fair Value | Cash and cash equivalents | Short-term investments | Other assets | Cost | Gains/(Losses) | Fair Value | Cash and cash equivalents | Short-term investments | Other assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit and money market deposit accounts (1) | Certificates of deposit and money market deposit accounts (1) | $ | 694 | $ | — | $ | 694 | $ | 582 | $ | 103 | $ | 9 | Certificates of deposit and money market deposit accounts (1) | $ | 777 | $ | — | $ | 777 | $ | 669 | $ | 86 | $ | 22 | ||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | Mutual funds | $ | 62 | $ | 2 | $ | 64 | $ | — | $ | — | $ | 64 | Mutual funds | $ | 59 | $ | — | $ | 59 | $ | — | $ | — | $ | 59 |
As of December 31, 2021 | |||||||||||||||||||||||||||||||||||
Balance sheet location | |||||||||||||||||||||||||||||||||||
Cost | Gains/(Losses) | Fair Value | Cash and cash equivalents | Short-term investments | Other assets | ||||||||||||||||||||||||||||||
Certificates of deposit and money market deposit accounts (1) | $ | 691 | $ | — | $ | 691 | $ | 584 | $ | 91 | $ | 16 | |||||||||||||||||||||||
Mutual funds | $ | 65 | $ | 8 | $ | 73 | $ | — | $ | — | $ | 73 |
Cash paid at closing | $ | 1,922 | |||
Replacement equity compensation awards | 5 | ||||
Total consideration | $ | 1,927 |
Cash | $ | 60 | |||||||||
Accounts receivable | 38 | ||||||||||
Other current assets | 11 | ||||||||||
Property and equipment, net | 13 | ||||||||||
Operating lease right-of-use assets | 64 | ||||||||||
Intangible assets: | |||||||||||
Customer relationships (23 year useful life) | $ | 518 | |||||||||
Product technology (7 year useful life) | 212 | ||||||||||
Trade name (9 year useful life) | 49 | ||||||||||
Total intangible assets (18 year weighted average useful life) | 779 | ||||||||||
Goodwill | 1,376 | ||||||||||
Deferred tax assets, net | 48 | ||||||||||
Other assets | 99 | ||||||||||
Liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | (92) | |||||||||
Deferred revenue | (89) | ||||||||||
Operating lease liabilities | (68) | ||||||||||
Deferred tax liabilities, net | (214) | ||||||||||
Uncertain tax positions | (96) | ||||||||||
Other liabilities | (2) | ||||||||||
Total liabilities | (561) | ||||||||||
Net assets acquired | $ | 1,927 |
March 31, | |||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
Pro forma Revenue | $ | 1,633 | $ | 3,313 | ||||
Pro forma Net Income attributable to Moody's | $ | 572 | $ | 1,301 |
Notional Amount | Notional Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||
Hedged Item | Hedged Item | Nature of Swap | As of March 31, 2022 | As of December 31, 2021 | Floating Interest Rate | Hedged Item | Nature of Swap | As of June 30, 2022 | As of December 31, 2021 | Floating Interest Rate | ||||||||||||||||||||||||||||||||||||||||||
2017 Senior Notes due 2023 | 2017 Senior Notes due 2023 | Pay Floating/Receive Fixed | $ | 250 | $ | 250 | 3-month USD LIBOR | 2017 Senior Notes due 2023 | Pay Floating/Receive Fixed | $ | — | $ | 250 | 3-month USD LIBOR | ||||||||||||||||||||||||||||||||||||||
2017 Senior Notes due 2028 | 2017 Senior Notes due 2028 | Pay Floating/Receive Fixed | $ | 500 | $ | 500 | 3-month USD LIBOR | 2017 Senior Notes due 2028 | Pay Floating/Receive Fixed | $ | 500 | $ | 500 | 3-month USD LIBOR | ||||||||||||||||||||||||||||||||||||||
2020 Senior Notes due 2025 | 2020 Senior Notes due 2025 | Pay Floating/Receive Fixed | $ | 300 | $ | 300 | 6-month USD LIBOR | 2020 Senior Notes due 2025 | Pay Floating/Receive Fixed | $ | 300 | $ | 300 | 6-month USD LIBOR | ||||||||||||||||||||||||||||||||||||||
2014 Senior Notes due 2044 | 2014 Senior Notes due 2044 | Pay Floating/Receive Fixed | $ | 300 | $ | 300 | 3-month USD LIBOR | 2014 Senior Notes due 2044 | Pay Floating/Receive Fixed | $ | 300 | $ | 300 | 3-month USD LIBOR | ||||||||||||||||||||||||||||||||||||||
2018 Senior Notes due 2048 | 2018 Senior Notes due 2048 | Pay Floating/Receive Fixed | $ | 300 | $ | 300 | 3-month USD LIBOR | 2018 Senior Notes due 2048 | Pay Floating/Receive Fixed | $ | 300 | $ | 300 | 3-month USD LIBOR | ||||||||||||||||||||||||||||||||||||||
2019 Senior Notes due 2029 (1) | Pay Floating/Receive Fixed | $ | 400 | $ | — | SOFR | ||||||||||||||||||||||||||||||||||||||||||||||
2018 Senior Notes due 2029 (1) | 2018 Senior Notes due 2029 (1) | Pay Floating/Receive Fixed | $ | 400 | $ | — | SOFR | |||||||||||||||||||||||||||||||||||||||||||||
2022 Senior Notes due 2052 (2) | 2022 Senior Notes due 2052 (2) | Pay Floating/Receive Fixed | $ | 500 | $ | — | SOFR | |||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 2,050 | $ | 1,650 | Total | $ | 2,300 | $ | 1,650 |
Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded | Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded | Amount of income/(loss) recognized in the consolidated statements of operations | Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded | Amount of income/(loss) recognized in the consolidated statements of operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | $ | (53) | Interest expense, net | $ | (55) | $ | (49) | $ | (108) | $ | (56) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Descriptions | Descriptions | Location on Consolidated Statements of Operations | Descriptions | Location on Consolidated Statements of Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest settlements and accruals on interest rate swaps | Net interest settlements and accruals on interest rate swaps | Interest expense, net | $ | 6 | $ | 5 | Net interest settlements and accruals on interest rate swaps | Interest expense, net | $ | 3 | $ | 6 | $ | 9 | $ | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value changes on interest rate swaps | Fair value changes on interest rate swaps | Interest expense, net | $ | (85) | $ | (24) | Fair value changes on interest rate swaps | Interest expense, net | $ | (47) | $ | — | $ | (132) | $ | (24) | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value changes on hedged debt | Fair value changes on hedged debt | Interest expense, net | $ | 85 | $ | 24 | Fair value changes on hedged debt | Interest expense, net | $ | 47 | $ | — | $ | 132 | $ | 24 |
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pay | Receive | Pay | Receive | |||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Swap | Nature of Swap | Notional Amount | Weighted Average Interest Rate | Notional Amount | Weighted Average Interest Rate | Nature of Swap | Notional Amount | Weighted Average Interest Rate | Notional Amount | Weighted Average Interest Rate | ||||||||||||||||||||||||||||||||||||||||||
Pay Fixed/Receive Fixed | Pay Fixed/Receive Fixed | € | 909 | 2.16% | $ | 1,050 | 4.45% | Pay Fixed/Receive Fixed | € | 765 | 3.67% | $ | 800 | 5.25% | ||||||||||||||||||||||||||||||||||||||
Pay Floating/Receive Floating | Pay Floating/Receive Floating | 1,179 | Based on 3-month EURIBOR | 1,350 | Based on 3-month USD LIBOR | Pay Floating/Receive Floating | 958 | Based on 3-month EURIBOR | 1,100 | Based on 3-month USD LIBOR | ||||||||||||||||||||||||||||||||||||||||||
Pay Floating/Receive Floating | Pay Floating/Receive Floating | 351 | Based on 3-month EURIBOR | 400 | Based on SOFR | Pay Floating/Receive Floating | 854 | Based on ESTR | 900 | Based on SOFR | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | € | 2,439 | $ | 2,800 | Total | € | 2,577 | $ | 2,800 |
December 31, 2021 | ||||||||||||||||||||||||||
Pay | Receive | |||||||||||||||||||||||||
Nature of Swap | Notional Amount | Weighted Average Interest Rate | Notional Amount | Weighted Average Interest Rate | ||||||||||||||||||||||
Pay Fixed/Receive Fixed | € | 909 | 2.16% | $ | 1,050 | 4.45% | ||||||||||||||||||||
Pay Floating/Receive Floating | 1,179 | Based on 3-month EURIBOR | 1,350 | Based on 3-month USD LIBOR | ||||||||||||||||||||||
Total | € | 2,088 | $ | 2,400 |
Years Ending December 31, | Years Ending December 31, | Years Ending December 31, | ||||||||||||||
2023 | € | 442 | ||||||||||||||
2024 | € | 443 | ||||||||||||||
2026 | 2026 | € | 450 | 2026 | € | 450 | ||||||||||
2027 | 2027 | € | 246 | 2027 | € | 285 | ||||||||||
2028 | 2028 | € | 507 | 2028 | € | 507 | ||||||||||
2029 | 2029 | € | 351 | 2029 | € | 373 | ||||||||||
2031 | 2031 | € | 481 | |||||||||||||
2032 | 2032 | € | 481 | |||||||||||||
Total | Total | € | 2,439 | Total | € | 2,577 |
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax | Amount of Gain/(Loss) Reclassified from AOCL into Income, net of Tax | Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
FX forward contracts | $ | — | $ | 16 | $ | — | $ | 1 | $ | — | $ | — | ||||||||||||||||||||||||||
Cross currency swaps | 24 | 72 | — | — | 10 | 10 | ||||||||||||||||||||||||||||||||
Long-term debt | 23 | 45 | — | — | — | — | ||||||||||||||||||||||||||||||||
Total net investment hedges | $ | 47 | $ | 133 | $ | — | $ | 1 | $ | 10 | $ | 10 | ||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | (1) | $ | (1) | $ | — | $ | — | ||||||||||||||||||||||||||
Total cash flow hedges | $ | — | $ | — | $ | (1) | $ | (1) | $ | — | $ | — | ||||||||||||||||||||||||||
Total | $ | 47 | $ | 133 | $ | (1) | $ | — | $ | 10 | $ | 10 |
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax | Amount of Gain/(Loss) Reclassified from AOCL into Income, net of Tax | Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Cross currency swaps | $ | 118 | $ | (18) | $ | — | $ | — | $ | 11 | $ | 9 | ||||||||||||||||||||||||||
Long-term debt | 63 | (10) | — | — | — | — | ||||||||||||||||||||||||||||||||
Total net investment hedges | $ | 181 | $ | (28) | $ | — | $ | — | $ | 11 | $ | 9 | ||||||||||||||||||||||||||
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax | Amount of Gain/(Loss) Reclassified from AOCL into Income, net of Tax | Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
FX forward contracts | $ | — | $ | 16 | $ | — | $ | 1 | $ | — | $ | — | ||||||||||||||||||||||||||
Cross currency swaps | 142 | 54 | — | — | 21 | 19 | ||||||||||||||||||||||||||||||||
Long-term debt | 86 | 35 | — | — | — | — | ||||||||||||||||||||||||||||||||
Total net investment hedges | $ | 228 | $ | 105 | $ | — | $ | 1 | $ | 21 | $ | 19 | ||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | (1) | $ | (1) | $ | — | $ | — | ||||||||||||||||||||||||||
Total cash flow hedges | $ | — | $ | — | $ | (1) | $ | (1) | $ | — | $ | — | ||||||||||||||||||||||||||
Total | $ | 228 | $ | 105 | $ | (1) | $ | — | $ | 21 | $ | 19 |
Cumulative Gains/(Losses), net of tax | Cumulative Gains/(Losses), net of tax | |||||||||||||||||||||
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||
Net investment hedges | Net investment hedges | Net investment hedges | ||||||||||||||||||||
Cross currency swaps | Cross currency swaps | $ | 43 | $ | 19 | Cross currency swaps | $ | 161 | $ | 19 | ||||||||||||
FX forwards | FX forwards | 29 | 29 | FX forwards | 29 | 29 | ||||||||||||||||
Long-term debt | Long-term debt | (4) | (27) | Long-term debt | 59 | (27) | ||||||||||||||||
Total net investment hedges | Total net investment hedges | $ | 68 | $ | 21 | Total net investment hedges | $ | 249 | $ | 21 | ||||||||||||
Cash flow hedges | Cash flow hedges | Cash flow hedges | ||||||||||||||||||||
Interest rate contracts | Interest rate contracts | $ | (48) | $ | (49) | Interest rate contracts | $ | (48) | $ | (49) | ||||||||||||
Cross currency swaps | Cross currency swaps | 2 | 2 | Cross currency swaps | 2 | 2 | ||||||||||||||||
Total cash flow hedges | Total cash flow hedges | (46) | (47) | Total cash flow hedges | (46) | (47) | ||||||||||||||||
Total net gain (loss) in AOCL | Total net gain (loss) in AOCL | $ | 22 | $ | (26) | Total net gain (loss) in AOCL | $ | 203 | $ | (26) |
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount of currency pair: | Notional amount of currency pair: | Sell | Buy | Sell | Buy | Notional amount of currency pair: | Sell | Buy | Sell | Buy | ||||||||||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for GBP | Contracts to sell USD for GBP | $ | 183 | £ | 135 | $ | 126 | £ | 92 | Contracts to sell USD for GBP | $ | 135 | £ | 104 | $ | 126 | £ | 92 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for Japanese yen | Contracts to sell USD for Japanese yen | $ | 22 | ¥ | 2,500 | $ | 22 | ¥ | 2,500 | Contracts to sell USD for Japanese yen | $ | 20 | ¥ | 2,500 | $ | 22 | ¥ | 2,500 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for Canadian dollars | Contracts to sell USD for Canadian dollars | $ | 106 | C$ | 133 | $ | 120 | C$ | 150 | Contracts to sell USD for Canadian dollars | $ | 134 | C$ | 171 | $ | 120 | C$ | 150 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for Singapore dollars | Contracts to sell USD for Singapore dollars | $ | 74 | S$ | 100 | $ | 67 | S$ | 90 | Contracts to sell USD for Singapore dollars | $ | 73 | S$ | 100 | $ | 67 | S$ | 90 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for euros | Contracts to sell USD for euros | $ | 431 | € | 380 | $ | 364 | € | 315 | Contracts to sell USD for euros | $ | 365 | € | 338 | $ | 364 | € | 315 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for Russian ruble | Contracts to sell USD for Russian ruble | $ | 26 | ₽ | 2,400 | $ | 16 | ₽ | 1,200 | Contracts to sell USD for Russian ruble | $ | — | ₽ | — | $ | 16 | ₽ | 1,200 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for Indian rupee | Contracts to sell USD for Indian rupee | $ | 24 | ₹ | 1,800 | $ | 7 | ₹ | 500 | Contracts to sell USD for Indian rupee | $ | 23 | ₹ | 1,800 | $ | 7 | ₹ | 500 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell GBP for USD | Contracts to sell GBP for USD | £ | — | $ | — | £ | 172 | $ | 231 | Contracts to sell GBP for USD | £ | — | $ | — | £ | 172 | $ | 231 |
Derivatives not designated as accounting hedges | Derivatives not designated as accounting hedges | Location on Consolidated Statements of Operations | Three Months Ended March 31, | Derivatives not designated as accounting hedges | Location on Consolidated Statements of Operations | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Location on Consolidated Statements of Operations | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FX forwards | FX forwards | Other non-operating income, net | $ | (19) | $ | (6) | FX forwards | $ | (38) | $ | (1) | $ | (57) | $ | (7) |
Derivative and Non-Derivative Instruments | Derivative and Non-Derivative Instruments | |||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | March 31, 2022 | December 31, 2021 | Balance Sheet Location | June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as accounting hedges: | Derivatives designated as accounting hedges: | Derivatives designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
Cross-currency swaps designated as net investment hedges | Cross-currency swaps designated as net investment hedges | Other current assets | $ | 9 | $ | — | Cross-currency swaps designated as net investment hedges | Other assets | $ | 112 | $ | 53 | ||||||||||||||||||||||||||||
Cross-currency swaps designated as net investment hedges | Other assets | 66 | 53 | |||||||||||||||||||||||||||||||||||||
Interest rate swaps designated as fair value hedges | Other current assets | 2 | — | |||||||||||||||||||||||||||||||||||||
Interest rate swaps designated as fair value hedges | Interest rate swaps designated as fair value hedges | Other assets | — | 13 | Interest rate swaps designated as fair value hedges | Other assets | — | 13 | ||||||||||||||||||||||||||||||||
Total derivatives designated as accounting hedges | Total derivatives designated as accounting hedges | 77 | 66 | Total derivatives designated as accounting hedges | 112 | 66 | ||||||||||||||||||||||||||||||||||
Derivatives not designated as accounting hedges: | Derivatives not designated as accounting hedges: | Derivatives not designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
FX forwards on certain assets and liabilities | FX forwards on certain assets and liabilities | Other current assets | 1 | 1 | FX forwards on certain assets and liabilities | Other current assets | — | 1 | ||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 78 | $ | 67 | Total assets | $ | 112 | $ | 67 | ||||||||||||||||||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as accounting hedges: | Derivatives designated as accounting hedges: | Derivatives designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
Cross-currency swaps designated as net investment hedges | Cross-currency swaps designated as net investment hedges | Other liabilities | $ | 6 | $ | 17 | Cross-currency swaps designated as net investment hedges | Other liabilities | $ | 22 | $ | 17 | ||||||||||||||||||||||||||||
Interest rate swaps designated as fair value hedges | Interest rate swaps designated as fair value hedges | Other liabilities | 97 | 23 | Interest rate swaps designated as fair value hedges | Other liabilities | 142 | 23 | ||||||||||||||||||||||||||||||||
Total derivatives designated as accounting hedges | Total derivatives designated as accounting hedges | 103 | 40 | Total derivatives designated as accounting hedges | 164 | 40 | ||||||||||||||||||||||||||||||||||
Non-derivatives designated as accounting hedges: | Non-derivatives designated as accounting hedges: | Non-derivatives designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
Long-term debt designated as net investment hedge | Long-term debt designated as net investment hedge | Long-term debt | 1,391 | 1,421 | Long-term debt designated as net investment hedge | Long-term debt | 1,307 | 1,421 | ||||||||||||||||||||||||||||||||
Derivatives not designated as accounting hedges: | Derivatives not designated as accounting hedges: | Derivatives not designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
FX forwards on certain assets and liabilities | FX forwards on certain assets and liabilities | Accounts payable and accrued liabilities | 22 | 12 | FX forwards on certain assets and liabilities | Accounts payable and accrued liabilities | 25 | 12 | ||||||||||||||||||||||||||||||||
Total liabilities | Total liabilities | $ | 1,516 | $ | 1,473 | Total liabilities | $ | 1,496 | $ | 1,473 |
Three Months Ended March 31, 2022 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MIS | MA | Consolidated | MIS | MA | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | Balance at beginning of year | $ | 396 | $ | — | $ | 396 | $ | 5,615 | $ | (12) | $ | 5,603 | $ | 6,011 | $ | (12) | $ | 5,999 | Balance at beginning of year | $ | 396 | $ | — | $ | 396 | $ | 5,615 | $ | (12) | $ | 5,603 | $ | 6,011 | $ | (12) | $ | 5,999 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions/ adjustments (1) | Additions/ adjustments (1) | — | — | — | 107 | — | 107 | 107 | — | 107 | Additions/ adjustments (1) | 3 | — | 3 | 107 | — | 107 | 110 | — | 110 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | (1) | — | (1) | (66) | — | (66) | (67) | — | (67) | Foreign currency translation adjustments | (9) | — | (9) | (259) | — | (259) | (268) | — | (268) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 395 | $ | — | $ | 395 | $ | 5,656 | $ | (12) | $ | 5,644 | $ | 6,051 | $ | (12) | $ | 6,039 | Ending balance | $ | 390 | $ | — | $ | 390 | $ | 5,463 | $ | (12) | $ | 5,451 | $ | 5,853 | $ | (12) | $ | 5,841 |
Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
MIS | MA | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | |||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 311 | $ | — | $ | 311 | $ | 4,257 | $ | (12) | $ | 4,245 | $ | 4,568 | $ | (12) | $ | 4,556 | |||||||||||||||||||||||||||||||||||
Additions/ adjustments (2) | 90 | — | 90 | 1,525 | — | 1,525 | 1,615 | — | 1,615 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (5) | — | (5) | (167) | — | (167) | (172) | — | (172) | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 396 | $ | — | $ | 396 | $ | 5,615 | $ | (12) | $ | 5,603 | $ | 6,011 | $ | (12) | $ | 5,999 |
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||
Customer relationships | Customer relationships | $ | 2,085 | $ | 2,101 | Customer relationships | $ | 2,016 | $ | 2,101 | ||||||||||||
Accumulated amortization | Accumulated amortization | (400) | (381) | Accumulated amortization | (407) | (381) | ||||||||||||||||
Net customer relationships | Net customer relationships | 1,685 | 1,720 | Net customer relationships | 1,609 | 1,720 | ||||||||||||||||
Software/product technology | Software/product technology | 679 | 663 | Software/product technology | 656 | 663 | ||||||||||||||||
Accumulated amortization | Accumulated amortization | (233) | (219) | Accumulated amortization | (243) | (219) | ||||||||||||||||
Net software/product technology | Net software/product technology | 446 | 444 | Net software/product technology | 413 | 444 | ||||||||||||||||
Database | Database | 179 | 179 | Database | 177 | 179 | ||||||||||||||||
Accumulated amortization | Accumulated amortization | (51) | (46) | Accumulated amortization | (54) | (46) | ||||||||||||||||
Net database | Net database | 128 | 133 | Net database | 123 | 133 | ||||||||||||||||
Trade names | Trade names | 205 | 207 | Trade names | 199 | 207 | ||||||||||||||||
Accumulated amortization | Accumulated amortization | (51) | (47) | Accumulated amortization | (53) | (47) | ||||||||||||||||
Net trade names | Net trade names | 154 | 160 | Net trade names | 146 | 160 | ||||||||||||||||
Other (1) | Other (1) | 54 | 54 | Other (1) | 53 | 54 | ||||||||||||||||
Accumulated amortization | Accumulated amortization | (45) | (44) | Accumulated amortization | (44) | (44) | ||||||||||||||||
Net other | Net other | 9 | 10 | Net other | 9 | 10 | ||||||||||||||||
Total acquired intangible assets, net | Total acquired intangible assets, net | $ | 2,422 | $ | 2,467 | Total acquired intangible assets, net | $ | 2,300 | $ | 2,467 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Amortization expense | $ | 51 | $ | 35 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Amortization expense | $ | 51 | $ | 36 | $ | 102 | $ | 71 |
Year Ending December 31, | ||||||||
2022 (After March 31,) | $ | 147 | ||||||
2023 | 191 | |||||||
2024 | 190 | |||||||
2025 | 180 | |||||||
2026 | 178 | |||||||
Thereafter | 1,536 | |||||||
Total estimated future amortization | $ | 2,422 |
Year Ending December 31, | ||||||||
2022 (After June 30,) | $ | 100 | ||||||
2023 | 190 | |||||||
2024 | 185 | |||||||
2025 | 181 | |||||||
2026 | 176 | |||||||
Thereafter | 1,468 | |||||||
Total estimated future amortization | $ | 2,300 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
2020 MA Strategic Reorganization Restructuring Program | $ | (1) | $ | — | $ | (1) | $ | 2 | |||||||||||||||
2022 - 2023 Geolocation Restructuring Program | 32 | — | 32 | — | |||||||||||||||||||
Total Restructuring | $ | 31 | $ | — | $ | 31 | $ | 2 |
Employee Termination Costs | |||||||||||||||||
Balance as of December 31, 2021 | $ | 4 | |||||||||||||||
2020 MA Strategic Reorganization Restructuring Program: | |||||||||||||||||
Cost incurred and adjustments | (1) | ||||||||||||||||
Cash payments and adjustments | (2) | ||||||||||||||||
2022 - 2023 Geolocation Restructuring Program: | |||||||||||||||||
Cost incurred and adjustments | 32 | ||||||||||||||||
Cash payments and adjustments | (1) | ||||||||||||||||
Balance as of June 30, 2022 | $ | 32 | |||||||||||||||
Cumulative expense incurred to date | |||||||||||||||||
2020 MA Strategic Reorganization Restructuring Program | $ | 19 | |||||||||||||||
2022 - 2023 Geolocation Restructuring Program | $ | 32 |
Fair value Measurement as of March 31, 2022 | Fair value Measurement as of June 30, 2022 | |||||||||||||||||||||||||||||||||
Description | Description | Balance | Level 1 | Level 2 | Description | Balance | Level 1 | Level 2 | ||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||
Derivatives (1) | Derivatives (1) | $ | 78 | $ | — | $ | 78 | Derivatives (1) | $ | 112 | $ | — | $ | 112 | ||||||||||||||||||||
Mutual funds | Mutual funds | 64 | 64 | — | Mutual funds | 59 | 59 | — | ||||||||||||||||||||||||||
Total | Total | $ | 142 | $ | 64 | $ | 78 | Total | $ | 171 | $ | 59 | $ | 112 | ||||||||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives (1) | Derivatives (1) | $ | 125 | $ | — | $ | 125 | Derivatives (1) | $ | 189 | $ | — | $ | 189 | ||||||||||||||||||||
Total | Total | $ | 125 | $ | — | $ | 125 | Total | $ | 189 | $ | — | $ | 189 |
Fair value Measurement as of December 31, 2021 | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | ||||||||||||||
Assets: | |||||||||||||||||
Derivatives (1) | $ | 67 | $ | — | $ | 67 | |||||||||||
Mutual funds | 73 | 73 | — | ||||||||||||||
Total | $ | 140 | $ | 73 | $ | 67 | |||||||||||
Liabilities: | |||||||||||||||||
Derivatives (1) | $ | 52 | $ | — | $ | 52 | |||||||||||
Total | $ | 52 | $ | — | $ | 52 |
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||
Other current assets: | Other current assets: | Other current assets: | ||||||||||||||||||||
Prepaid taxes | Prepaid taxes | $ | 113 | $ | 112 | Prepaid taxes | $ | 258 | $ | 112 | ||||||||||||
Prepaid expenses | Prepaid expenses | 104 | 99 | Prepaid expenses | 98 | 99 | ||||||||||||||||
Capitalized costs to obtain and fulfill sales contracts | Capitalized costs to obtain and fulfill sales contracts | 98 | 103 | Capitalized costs to obtain and fulfill sales contracts | 91 | 103 | ||||||||||||||||
Derivative instruments designated as accounting hedges | 11 | — | ||||||||||||||||||||
Other | Other | 59 | 75 | Other | 68 | 75 | ||||||||||||||||
Total other current assets | Total other current assets | $ | 385 | $ | 389 | Total other current assets | $ | 515 | $ | 389 | ||||||||||||
Other assets: | Other assets: | Other assets: | ||||||||||||||||||||
Investments in non-consolidated affiliates | Investments in non-consolidated affiliates | $ | 450 | $ | 443 | Investments in non-consolidated affiliates | $ | 514 | $ | 443 | ||||||||||||
Deposits for real-estate leases | Deposits for real-estate leases | 15 | 14 | Deposits for real-estate leases | 14 | 14 | ||||||||||||||||
Indemnification assets related to acquisitions | Indemnification assets related to acquisitions | 108 | 106 | Indemnification assets related to acquisitions | 108 | 106 | ||||||||||||||||
Mutual funds and fixed deposits | Mutual funds and fixed deposits | 73 | 89 | Mutual funds and fixed deposits | 81 | 89 | ||||||||||||||||
Company owned life insurance (at contract value) | Company owned life insurance (at contract value) | 49 | 37 | Company owned life insurance (at contract value) | 40 | 37 | ||||||||||||||||
Costs to obtain sales contracts | Costs to obtain sales contracts | 152 | 138 | Costs to obtain sales contracts | 145 | 138 | ||||||||||||||||
Derivative instruments designated as accounting hedges | Derivative instruments designated as accounting hedges | 66 | 66 | Derivative instruments designated as accounting hedges | 112 | 66 | ||||||||||||||||
Pension and other retirement employee benefits | Pension and other retirement employee benefits | 74 | 77 | Pension and other retirement employee benefits | 73 | 77 | ||||||||||||||||
Other | Other | 74 | 64 | Other | 80 | 64 | ||||||||||||||||
Total other assets | Total other assets | $ | 1,061 | $ | 1,034 | Total other assets | $ | 1,167 | $ | 1,034 | ||||||||||||
Accounts payable and accrued liabilities: | Accounts payable and accrued liabilities: | Accounts payable and accrued liabilities: | ||||||||||||||||||||
Salaries and benefits | Salaries and benefits | $ | 220 | $ | 211 | Salaries and benefits | $ | 156 | $ | 211 | ||||||||||||
Incentive compensation | Incentive compensation | 72 | 324 | Incentive compensation | 110 | 324 | ||||||||||||||||
Customer credits, advanced payments and advanced billings | Customer credits, advanced payments and advanced billings | 116 | 100 | Customer credits, advanced payments and advanced billings | 102 | 100 | ||||||||||||||||
Dividends | Dividends | 3 | 6 | Dividends | 5 | 6 | ||||||||||||||||
Professional service fees | Professional service fees | 69 | 75 | Professional service fees | 68 | 75 | ||||||||||||||||
Interest accrued on debt | Interest accrued on debt | 42 | 85 | Interest accrued on debt | 82 | 85 | ||||||||||||||||
Accounts payable | Accounts payable | 42 | 47 | Accounts payable | 31 | 47 | ||||||||||||||||
Income taxes | Income taxes | 141 | 115 | Income taxes | 130 | 115 | ||||||||||||||||
Pension and other retirement employee benefits | Pension and other retirement employee benefits | 7 | 7 | Pension and other retirement employee benefits | 7 | 7 | ||||||||||||||||
Accrued royalties | Accrued royalties | 21 | 36 | Accrued royalties | 17 | 36 | ||||||||||||||||
Foreign exchange forwards on certain assets and liabilities | Foreign exchange forwards on certain assets and liabilities | 22 | 12 | Foreign exchange forwards on certain assets and liabilities | 25 | 12 | ||||||||||||||||
Restructuring liability | Restructuring liability | 2 | 4 | Restructuring liability | 28 | 4 | ||||||||||||||||
Other | Other | 99 | 120 | Other | 105 | 120 | ||||||||||||||||
Total accounts payable and accrued liabilities | Total accounts payable and accrued liabilities | $ | 856 | $ | 1,142 | Total accounts payable and accrued liabilities | $ | 866 | $ | 1,142 |
Other liabilities: | |||||||||||
Pension and other retirement employee benefits | $ | 230 | $ | 235 | |||||||
Interest accrued on UTPs | 60 | 59 | |||||||||
MAKS indemnification provisions | 33 | 33 | |||||||||
Income tax liability - non-current portion | 23 | 23 | |||||||||
Derivative instruments designated as accounting hedges | 103 | 40 | |||||||||
Other | 43 | 48 | |||||||||
Total other liabilities | $ | 492 | $ | 438 |
Other liabilities: | |||||||||||
Pension and other retirement employee benefits | $ | 213 | $ | 235 | |||||||
Interest accrued on UTPs | 40 | 59 | |||||||||
MAKS indemnification provisions | 22 | 33 | |||||||||
Income tax liability - non-current portion | 23 | 23 | |||||||||
Derivative instruments designated as accounting hedges | 164 | 40 | |||||||||
Restructuring liability | 4 | — | |||||||||
Other | 47 | 48 | |||||||||
Total other liabilities | $ | 513 | $ | 438 |
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||
Equity method investments(1) | Equity method investments(1) | $ | 128 | $ | 121 | Equity method investments(1) | $ | 189 | $ | 121 | ||||||||||||
Investments measured using the measurement alternative(2) | Investments measured using the measurement alternative(2) | 318 | 318 | Investments measured using the measurement alternative(2) | 320 | 318 | ||||||||||||||||
Other | Other | 4 | 4 | Other | 5 | 4 | ||||||||||||||||
Total investments in non-consolidated affiliates | Total investments in non-consolidated affiliates | $ | 450 | $ | 443 | Total investments in non-consolidated affiliates | $ | 514 | $ | 443 | ||||||||||||
(1) Equity securities in which the Company has significant influence over the investee but does not have a controlling financial interest in accordance with ASC Topic 323 | (1) Equity securities in which the Company has significant influence over the investee but does not have a controlling financial interest in accordance with ASC Topic 323 | (1) Equity securities in which the Company has significant influence over the investee but does not have a controlling financial interest in accordance with ASC Topic 323 | ||||||||||||||||||||
(2) Equity securities without readily determinable fair value for which the Company has elected to apply the measurement alternative in accordance with ASC Topic 321 | (2) Equity securities without readily determinable fair value for which the Company has elected to apply the measurement alternative in accordance with ASC Topic 321 | (2) Equity securities without readily determinable fair value for which the Company has elected to apply the measurement alternative in accordance with ASC Topic 321 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
FX gain (loss) | $ | — | $ | (2) | ||||||||||||||||||||||||||||||||||||||||||
FX (loss)/gain (1) | FX (loss)/gain (1) | $ | (22) | $ | 2 | $ | (22) | $ | — | |||||||||||||||||||||||||||||||||||||
Net periodic pension costs - other components | Net periodic pension costs - other components | 6 | 4 | Net periodic pension costs - other components | 6 | (3) | 12 | 1 | ||||||||||||||||||||||||||||||||||||||
Income from investments in non-consolidated affiliates | Income from investments in non-consolidated affiliates | 2 | 8 | Income from investments in non-consolidated affiliates | 2 | 1 | 4 | 9 | ||||||||||||||||||||||||||||||||||||||
Other | Other | (2) | 6 | Other | 4 | 6 | 2 | 12 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 6 | $ | 16 | Total | $ | (10) | $ | 6 | $ | (4) | $ | 22 | ||||||||||||||||||||||||||||||||
(1) FX loss for the three and six months ended June 30, 2022 includes FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia. | (1) FX loss for the three and six months ended June 30, 2022 includes FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia. |
Three Months Ended March 31, | Location in the consolidated statements of operations | ||||||||||||||||
Losses on cash flow hedges | 2022 | 2021 | |||||||||||||||
Interest rate contract | $ | (1) | $ | (1) | Other non-operating income, net | ||||||||||||
Income tax effect of item above | — | — | Provision for income taxes | ||||||||||||||
Total net losses on cash flow hedges | (1) | (1) | |||||||||||||||
Gains on net investment hedges | |||||||||||||||||
FX forwards | — | 1 | Other non-operating income, net | ||||||||||||||
Income tax effect of item above | — | — | Provision for income taxes | ||||||||||||||
Total net gains on net investment hedges | — | 1 | |||||||||||||||
Pension and other retirement benefits | |||||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | — | (3) | Other non-operating income, net | ||||||||||||||
Income tax effect of item above | — | 1 | Provision for income taxes | ||||||||||||||
Total pension and other retirement benefits | — | (2) | |||||||||||||||
Total net losses included in Net Income attributable to reclassifications out of AOCL | $ | (1) | $ | (2) |
Three Months Ended June 30, | Location in the consolidated statements of operations | ||||||||||||||||
Losses on currency translation adjustments | 2022 | 2021 | |||||||||||||||
Foreign currency translation adjustments - reclassification of losses included in net income | $ | (20) | $ | — | Other non-operating income, net | ||||||||||||
Total losses on currency translation adjustments | (20) | — | |||||||||||||||
Gains (losses) on net investment hedges | |||||||||||||||||
FX forwards | — | 1 | Other non-operating income, net | ||||||||||||||
Income tax effect of item above | — | (1) | Provision for income taxes | ||||||||||||||
Total net gains on net investment hedges | — | — | |||||||||||||||
Pension and other retirement benefits | |||||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | (1) | (3) | Other non-operating income, net | ||||||||||||||
Settlement charge | — | (7) | Other non-operating income, net | ||||||||||||||
Total before income taxes | (1) | (10) | |||||||||||||||
Income tax effect of items above | — | 2 | Provision for income taxes | ||||||||||||||
Total pension and other retirement benefits | (1) | (8) | |||||||||||||||
Total net losses included in Net Income attributable to reclassifications out of AOCL | $ | (21) | $ | (8) | |||||||||||||
Six Months Ended June 30, | Location in the consolidated statements of operations | ||||||||||||||||
Losses on currency translation adjustments | 2022 | 2021 | |||||||||||||||
Foreign currency translation adjustments - reclassification of losses included in net income | $ | (20) | $ | — | Other non-operating income, net | ||||||||||||
Total losses on currency translation adjustments | (20) | — | |||||||||||||||
Losses on cash flow hedges | |||||||||||||||||
Interest rate contract | (1) | (1) | Other non-operating income, net | ||||||||||||||
Income tax effect of item above | — | — | Provision for income taxes | ||||||||||||||
Total net losses on cash flow hedges | (1) | (1) | |||||||||||||||
Gains (losses) on net investment hedges | |||||||||||||||||
FX forwards | — | 2 | Other non-operating income, net | ||||||||||||||
Income tax effect of item above | — | (1) | Provision for income taxes | ||||||||||||||
Total net gains on net investment hedges | — | 1 | |||||||||||||||
Pension and other retirement benefits | |||||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | (1) | (6) | Other non-operating income, net | ||||||||||||||
Settlement charge | — | (7) | Other non-operating income, net | ||||||||||||||
Total before income taxes | (1) | (13) | |||||||||||||||
Income tax effect of item above | — | 3 | Provision for income taxes | ||||||||||||||
Total pension and other retirement benefits | (1) | (10) | |||||||||||||||
Total net losses included in Net Income attributable to reclassifications out of AOCL | $ | (22) | $ | (10) |
Three Months Ended March 31, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | Gains/(Losses) | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2021 | $ | (49) | $ | (47) | $ | (335) | $ | 21 | $ | (410) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, | Balance at March 31, | $ | (51) | $ | (46) | $ | (442) | $ | 68 | $ | (471) | $ | (116) | $ | (48) | $ | (188) | $ | (88) | $ | (440) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | Other comprehensive income/(loss) before reclassifications | (2) | — | (107) | 47 | (62) | Other comprehensive income/(loss) before reclassifications | 4 | — | (334) | 181 | (149) | — | — | 36 | (29) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCL | Amounts reclassified from AOCL | — | 1 | — | — | 1 | Amounts reclassified from AOCL | 1 | — | 20 | — | 21 | 8 | — | — | — | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | Other comprehensive income/(loss) | (2) | 1 | (107) | 47 | (61) | Other comprehensive income/(loss) | 5 | — | (314) | 181 | (128) | 8 | — | 36 | (29) | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 31, 2022 | $ | (51) | $ | (46) | $ | (442) | $ | 68 | $ | (471) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, | Balance at June 30, | $ | (46) | $ | (46) | $ | (756) | $ | 249 | $ | (599) | $ | (108) | $ | (48) | $ | (152) | $ | (117) | $ | (425) |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | Gains/(Losses) | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2020 | $ | (118) | $ | (49) | $ | (45) | $ | (220) | $ | (432) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, | Balance at December 31, | $ | (49) | $ | (47) | $ | (335) | $ | 21 | $ | (410) | $ | (118) | $ | (49) | $ | (45) | $ | (220) | $ | (432) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | Other comprehensive income/(loss) before reclassifications | — | — | (143) | 133 | (10) | Other comprehensive income/(loss) before reclassifications | 2 | — | (441) | 228 | (211) | — | — | (107) | 104 | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCL | Amounts reclassified from AOCL | 2 | 1 | — | (1) | 2 | Amounts reclassified from AOCL | 1 | 1 | 20 | — | 22 | 10 | 1 | — | (1) | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | Other comprehensive income/(loss) | 2 | 1 | (143) | 132 | (8) | Other comprehensive income/(loss) | 3 | 1 | (421) | 228 | (189) | 10 | 1 | (107) | 103 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 31, 2021 | $ | (116) | $ | (48) | $ | (188) | $ | (88) | $ | (440) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, | Balance at June 30, | $ | (46) | $ | (46) | $ | (756) | $ | 249 | $ | (599) | $ | (108) | $ | (48) | $ | (152) | $ | (117) | $ | (425) |
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable: | Notes Payable: | Principal Amount | Fair Value of Interest Rate Swaps (1) | Unamortized (Discount) Premium | Unamortized Debt Issuance Costs | Carrying Value | Notes Payable: | Principal Amount | Fair Value of Interest Rate Swaps (1) | Unamortized (Discount) Premium | Unamortized Debt Issuance Costs | Carrying Value | ||||||||||||||||||||||||||||||||||||||||||||||
4.875% 2013 Senior Notes, due 2024 | 4.875% 2013 Senior Notes, due 2024 | $ | 500 | $ | — | $ | (1) | $ | (1) | $ | 498 | 4.875% 2013 Senior Notes, due 2024 | $ | 500 | $ | — | $ | (1) | $ | (1) | $ | 498 | ||||||||||||||||||||||||||||||||||||
5.25% 2014 Senior Notes, due 2044 | 5.25% 2014 Senior Notes, due 2044 | 600 | (24) | 3 | (5) | 574 | 5.25% 2014 Senior Notes, due 2044 | 600 | (32) | 3 | (5) | 566 | ||||||||||||||||||||||||||||||||||||||||||||||
1.75% 2015 Senior Notes, due 2027 | 1.75% 2015 Senior Notes, due 2027 | 556 | — | — | (2) | 554 | 1.75% 2015 Senior Notes, due 2027 | 523 | — | — | (2) | 521 | ||||||||||||||||||||||||||||||||||||||||||||||
2.625% 2017 Senior Notes, due 2023 | 2.625% 2017 Senior Notes, due 2023 | 500 | 2 | — | (1) | 501 | 2.625% 2017 Senior Notes, due 2023 | 500 | — | — | (1) | 499 | ||||||||||||||||||||||||||||||||||||||||||||||
3.25% 2017 Senior Notes, due 2028 | 3.25% 2017 Senior Notes, due 2028 | 500 | (16) | (3) | (2) | 479 | 3.25% 2017 Senior Notes, due 2028 | 500 | (24) | (3) | (2) | 471 | ||||||||||||||||||||||||||||||||||||||||||||||
4.25% 2018 Senior Notes, due 2029 | 4.25% 2018 Senior Notes, due 2029 | 400 | (12) | (2) | (2) | 384 | 4.25% 2018 Senior Notes, due 2029 | 400 | (25) | (2) | (2) | 371 | ||||||||||||||||||||||||||||||||||||||||||||||
4.875% 2018 Senior Notes, due 2048 | 4.875% 2018 Senior Notes, due 2048 | 400 | (25) | (6) | (4) | 365 | 4.875% 2018 Senior Notes, due 2048 | 400 | (34) | (6) | (4) | 356 | ||||||||||||||||||||||||||||||||||||||||||||||
0.950% 2019 Senior Notes, due 2030 | 0.950% 2019 Senior Notes, due 2030 | 835 | — | (2) | (5) | 828 | 0.950% 2019 Senior Notes, due 2030 | 784 | — | (2) | (4) | 778 | ||||||||||||||||||||||||||||||||||||||||||||||
3.75% 2020 Senior Notes, due 2025 | 3.75% 2020 Senior Notes, due 2025 | 700 | (20) | (1) | (3) | 676 | 3.75% 2020 Senior Notes, due 2025 | 700 | (22) | (1) | (3) | 674 | ||||||||||||||||||||||||||||||||||||||||||||||
3.25% 2020 Senior Notes, due 2050 | 3.25% 2020 Senior Notes, due 2050 | 300 | — | (4) | (3) | 293 | 3.25% 2020 Senior Notes, due 2050 | 300 | — | (4) | (3) | 293 | ||||||||||||||||||||||||||||||||||||||||||||||
2.55% 2020 Senior Notes, due 2060 | 2.55% 2020 Senior Notes, due 2060 | 500 | — | (4) | (5) | 491 | 2.55% 2020 Senior Notes, due 2060 | 500 | — | (4) | (5) | 491 | ||||||||||||||||||||||||||||||||||||||||||||||
2.00% 2021 Senior Notes, due 2031 | 2.00% 2021 Senior Notes, due 2031 | 600 | — | (8) | (5) | 587 | 2.00% 2021 Senior Notes, due 2031 | 600 | — | (7) | (5) | 588 | ||||||||||||||||||||||||||||||||||||||||||||||
2.75% 2021 Senior Notes, due 2041 | 2.75% 2021 Senior Notes, due 2041 | 600 | — | (13) | (5) | 582 | 2.75% 2021 Senior Notes, due 2041 | 600 | — | (13) | (5) | 582 | ||||||||||||||||||||||||||||||||||||||||||||||
3.10% 2021 Senior Notes, due 2061 | 3.10% 2021 Senior Notes, due 2061 | 500 | — | (7) | (5) | 488 | 3.10% 2021 Senior Notes, due 2061 | 500 | — | (7) | (5) | 488 | ||||||||||||||||||||||||||||||||||||||||||||||
3.75% 2022 Senior Notes, due 2052 | 3.75% 2022 Senior Notes, due 2052 | 500 | — | (9) | (5) | 486 | 3.75% 2022 Senior Notes, due 2052 | 500 | (5) | (9) | (5) | 481 | ||||||||||||||||||||||||||||||||||||||||||||||
Total debt | Total debt | $ | 7,991 | $ | (95) | $ | (57) | $ | (53) | $ | 7,786 | Total debt | $ | 7,907 | $ | (142) | $ | (56) | $ | (52) | $ | 7,657 | ||||||||||||||||||||||||||||||||||||
Current portion | Current portion | (501) | Current portion | (499) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt | Total long-term debt | $ | 7,285 | Total long-term debt | $ | 7,158 |
December 31, 2021 | |||||||||||||||||||||||||||||
Notes Payable: | Principal Amount | Fair Value of Interest Rate Swaps (1) | Unamortized (Discount) Premium | Unamortized Debt Issuance Costs | Carrying Value | ||||||||||||||||||||||||
4.875% 2013 Senior Notes, due 2024 | $ | 500 | $ | — | $ | (1) | $ | (1) | $ | 498 | |||||||||||||||||||
5.25% 2014 Senior Notes, due 2044 | 600 | (7) | 3 | (5) | 591 | ||||||||||||||||||||||||
1.75% 2015 Senior Notes, due 2027 | 568 | — | — | (2) | 566 | ||||||||||||||||||||||||
2.625% 2017 Senior Notes, due 2023 | 500 | 5 | — | (1) | 504 | ||||||||||||||||||||||||
3.25% 2017 Senior Notes, due 2028 | 500 | 8 | (3) | (2) | 503 | ||||||||||||||||||||||||
4.25% 2018 Senior Notes, due 2029 | 400 | — | (2) | (2) | 396 | ||||||||||||||||||||||||
4.875% 2018 Senior Notes, due 2048 | 400 | (7) | (6) | (4) | 383 | ||||||||||||||||||||||||
0.950% 2019 Senior Notes, due 2030 | 853 | — | (2) | (5) | 846 | ||||||||||||||||||||||||
3.75% 2020 Senior Notes, due 2025 | 700 | (9) | (1) | (4) | 686 | ||||||||||||||||||||||||
3.25% 2020 Senior Notes, due 2050 | 300 | — | (4) | (3) | 293 | ||||||||||||||||||||||||
2.55% 2020 Senior Notes, due 2060 | 500 | — | (4) | (5) | 491 | ||||||||||||||||||||||||
2.00% 2021 Senior Notes, due 2031 | 600 | — | (8) | (5) | 587 | ||||||||||||||||||||||||
2.75% 2021 Senior Notes, due 2041 | 600 | — | (13) | (6) | 581 | ||||||||||||||||||||||||
3.10% 2021 Senior Notes, due 2061 | 500 | — | (7) | (5) | 488 | ||||||||||||||||||||||||
Total long-term debt | $ | 7,521 | $ | (10) | $ | (48) | $ | (50) | $ | 7,413 |
Year Ending December 31, | Year Ending December 31, | 2013 Senior Notes due 2024 | 2014 Senior Notes due 2044 | 2015 Senior Notes due 2027 | 2017 Senior Notes due 2023 | 2017 Senior Notes due 2028 | 2018 Senior Notes due 2029 | 2018 Senior Notes due 2048 | 2019 Senior Notes due 2030 | 2020 Senior Notes due 2025 | 2020 Senior Notes due 2050 | 2020 Senior Notes due 2060 | 2021 Senior Notes due 2031 | 2021 Senior Notes due 2041 | 2021 Senior Notes due 2061 | 2022 Senior Notes due 2052 | Total | Year Ending December 31, | 2013 Senior Notes due 2024 | 2014 Senior Notes due 2044 | 2015 Senior Notes due 2027 | 2017 Senior Notes due 2023 | 2017 Senior Notes due 2028 | 2018 Senior Notes due 2029 | 2018 Senior Notes due 2048 | 2019 Senior Notes due 2030 | 2020 Senior Notes due 2025 | 2020 Senior Notes due 2050 | 2020 Senior Notes due 2060 | 2021 Senior Notes due 2031 | 2021 Senior Notes due 2041 | 2021 Senior Notes due 2061 | 2022 Senior Notes due 2052 | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 (After March 31,) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 (After June 30,) | 2022 (After June 30,) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | — | — | — | 500 | — | — | — | — | — | — | — | — | — | — | — | $ | 500 | 2023 | — | — | — | 500 | — | — | — | — | — | — | — | — | — | — | — | 500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2024 | 500 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | $ | 500 | 2024 | 500 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2025 | — | — | — | — | — | — | — | — | 700 | — | — | — | — | — | — | $ | 700 | 2025 | — | — | — | — | — | — | — | — | 700 | — | — | — | — | — | — | 700 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2026 | 2026 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | $ | — | 2026 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Thereafter | Thereafter | — | 600 | 556 | — | 500 | 400 | 400 | 835 | — | 300 | 500 | 600 | 600 | 500 | 500 | $ | 6,291 | Thereafter | — | 600 | 523 | — | 500 | 400 | 400 | 784 | — | 300 | 500 | 600 | 600 | 500 | 500 | 6,207 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 500 | $ | 600 | $ | 556 | $ | 500 | $ | 500 | $ | 400 | $ | 400 | $ | 835 | $ | 700 | $ | 300 | $ | 500 | $ | 600 | $ | 600 | $ | 500 | $ | 500 | $ | 7,991 | Total | $ | 500 | $ | 600 | $ | 523 | $ | 500 | $ | 500 | $ | 400 | $ | 400 | $ | 784 | $ | 700 | $ | 300 | $ | 500 | $ | 600 | $ | 600 | $ | 500 | $ | 500 | $ | 7,907 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Income | Income | $ | 2 | $ | 3 | Income | $ | 2 | $ | 1 | $ | 4 | $ | 4 | ||||||||||||||||||||||||||||||||
Expense on borrowings | Expense on borrowings | (48) | (41) | Expense on borrowings | (50) | (41) | (98) | (82) | ||||||||||||||||||||||||||||||||||||||
Income (expense) on UTPs and other tax related liabilities(2) | Income (expense) on UTPs and other tax related liabilities(2) | (3) | 35 | Income (expense) on UTPs and other tax related liabilities(2) | (3) | (5) | (6) | 30 | ||||||||||||||||||||||||||||||||||||||
Net periodic pension costs - interest component | Net periodic pension costs - interest component | (4) | (4) | Net periodic pension costs - interest component | (4) | (4) | (8) | (8) | ||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | $ | (53) | $ | (7) | Interest expense, net | $ | (55) | $ | (49) | $ | (108) | $ | (56) | ||||||||||||||||||||||||||||||||
Interest paid(1) | Interest paid(1) | $ | 78 | $ | 73 | Interest paid(1) | $ | 12 | $ | 13 | $ | 90 | $ | 86 |
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||||
4.875% 2013 Senior Notes, due 2024 | 4.875% 2013 Senior Notes, due 2024 | $ | 498 | $ | 516 | $ | 498 | $ | 538 | 4.875% 2013 Senior Notes, due 2024 | $ | 498 | $ | 510 | $ | 498 | $ | 538 | ||||||||||||||||||||||||||||
5.25% 2014 Senior Notes, due 2044 | 5.25% 2014 Senior Notes, due 2044 | 574 | 697 | 591 | 805 | 5.25% 2014 Senior Notes, due 2044 | 566 | 607 | 591 | 805 | ||||||||||||||||||||||||||||||||||||
1.75% 2015 Senior Notes, due 2027 | 1.75% 2015 Senior Notes, due 2027 | 554 | 565 | 566 | 607 | 1.75% 2015 Senior Notes, due 2027 | 521 | 503 | 566 | 607 | ||||||||||||||||||||||||||||||||||||
2.625% 2017 Senior Notes, due 2023 | 2.625% 2017 Senior Notes, due 2023 | 501 | 502 | 504 | 509 | 2.625% 2017 Senior Notes, due 2023 | 499 | 499 | 504 | 509 | ||||||||||||||||||||||||||||||||||||
3.25% 2017 Senior Notes, due 2028 | 3.25% 2017 Senior Notes, due 2028 | 479 | 501 | 503 | 539 | 3.25% 2017 Senior Notes, due 2028 | 471 | 499 | 503 | 539 | ||||||||||||||||||||||||||||||||||||
4.25% 2018 Senior Notes, due 2029 | 4.25% 2018 Senior Notes, due 2029 | 384 | 420 | 396 | 451 | 4.25% 2018 Senior Notes, due 2029 | 371 | 398 | 396 | 451 | ||||||||||||||||||||||||||||||||||||
4.875% 2018 Senior Notes, due 2048 | 4.875% 2018 Senior Notes, due 2048 | 365 | 457 | 383 | 526 | 4.875% 2018 Senior Notes, due 2048 | 356 | 395 | 383 | 526 | ||||||||||||||||||||||||||||||||||||
0.950% 2019 Senior Notes, due 2030 | 0.950% 2019 Senior Notes, due 2030 | 828 | 787 | 846 | 866 | 0.950% 2019 Senior Notes, due 2030 | 778 | 678 | 846 | 866 | ||||||||||||||||||||||||||||||||||||
3.75% 2020 Senior Notes, due 2025 | 3.75% 2020 Senior Notes, due 2025 | 676 | 713 | 686 | 750 | 3.75% 2020 Senior Notes, due 2025 | 674 | 699 | 686 | 750 | ||||||||||||||||||||||||||||||||||||
3.25% 2020 Senior Notes, due 2050 | 3.25% 2020 Senior Notes, due 2050 | 293 | 269 | 293 | 311 | 3.25% 2020 Senior Notes, due 2050 | 293 | 223 | 293 | 311 | ||||||||||||||||||||||||||||||||||||
2.55% 2020 Senior Notes, due 2060 | 2.55% 2020 Senior Notes, due 2060 | 491 | 370 | 491 | 432 | 2.55% 2020 Senior Notes, due 2060 | 491 | 311 | 491 | 432 | ||||||||||||||||||||||||||||||||||||
2.00% 2021 Senior Notes, due 2031 | 2.00% 2021 Senior Notes, due 2031 | 587 | 531 | 587 | 581 | 2.00% 2021 Senior Notes, due 2031 | 588 | 491 | 587 | 581 | ||||||||||||||||||||||||||||||||||||
2.75% 2021 Senior Notes, due 2041 | 2.75% 2021 Senior Notes, due 2041 | 582 | 515 | 581 | 579 | 2.75% 2021 Senior Notes, due 2041 | 582 | 442 | 581 | 579 | ||||||||||||||||||||||||||||||||||||
3.10% 2021 Senior Notes, due 2061 | 3.10% 2021 Senior Notes, due 2061 | 488 | 420 | 488 | 488 | 3.10% 2021 Senior Notes, due 2061 | 488 | 347 | 488 | 488 | ||||||||||||||||||||||||||||||||||||
3.75% 2022 Senior Notes, due 2052 | 3.75% 2022 Senior Notes, due 2052 | 486 | 492 | — | — | 3.75% 2022 Senior Notes, due 2052 | 481 | 409 | — | — | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 7,786 | $ | 7,755 | $ | 7,413 | $ | 7,982 | Total | $ | 7,657 | $ | 7,011 | $ | 7,413 | $ | 7,982 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Operating lease cost | Operating lease cost | $ | 27 | $ | 24 | Operating lease cost | $ | 25 | $ | 23 | $ | 52 | $ | 47 | ||||||||||||||||||||||||||||||||
Sublease income | Sublease income | (2) | (1) | Sublease income | (2) | (1) | (4) | (2) | ||||||||||||||||||||||||||||||||||||||
Variable lease cost | Variable lease cost | 5 | 5 | Variable lease cost | 5 | 5 | 10 | 10 | ||||||||||||||||||||||||||||||||||||||
Total lease cost | Total lease cost | $ | 30 | $ | 28 | Total lease cost | $ | 28 | $ | 27 | $ | 58 | $ | 55 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 31 | $ | 28 | |||||||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 15 | $ | 4 |
March 31, 2022 | March 31, 2021 | |||||||||||||
Weighted-average remaining lease term | 5.5 years | 5.9 years | ||||||||||||
Weighted-average discount rate applied to operating leases | 3.1 | % | 3.6 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 29 | $ | 28 | $ | 60 | $ | 56 | |||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 15 | $ | 2 | $ | 30 | $ | 6 |
June 30, 2022 | June 30, 2021 | |||||||||||||
Weighted-average remaining lease term | 5.3 years | 5.6 years | ||||||||||||
Weighted-average discount rate applied to operating leases | 3.1 | % | 3.6 | % |
Year Ending December 31, | Year Ending December 31, | Operating Leases | Year Ending December 31, | Operating Leases | ||||||||||||
2022 (After March 31) | $ | 91 | ||||||||||||||
2022 (After June 30,) | 2022 (After June 30,) | $ | 60 | |||||||||||||
2023 | 2023 | 119 | 2023 | 119 | ||||||||||||
2024 | 2024 | 111 | 2024 | 112 | ||||||||||||
2025 | 2025 | 96 | 2025 | 97 | ||||||||||||
2026 | 2026 | 77 | 2026 | 79 | ||||||||||||
After 2026 | After 2026 | 99 | After 2026 | 103 | ||||||||||||
Total lease payments (undiscounted) | Total lease payments (undiscounted) | 593 | Total lease payments (undiscounted) | 570 | ||||||||||||
Less: Interest | Less: Interest | 47 | Less: Interest | 44 | ||||||||||||
Present value of lease liabilities: | Present value of lease liabilities: | $ | 546 | Present value of lease liabilities: | $ | 526 | ||||||||||
Lease liabilities - current | Lease liabilities - current | $ | 106 | Lease liabilities - current | $ | 105 | ||||||||||
Lease liabilities - noncurrent | Lease liabilities - noncurrent | $ | 440 | Lease liabilities - noncurrent | $ | 421 |
Three Months Ended March 31, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MIS | MA | Eliminations | Consolidated | MIS | MA | Eliminations | Consolidated | MIS | MA | Eliminations | Consolidated | MIS | MA | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total external revenue | Total external revenue | $ | 706 | $ | 675 | $ | — | $ | 1,381 | $ | 980 | $ | 573 | $ | — | $ | 1,553 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 43 | 1 | (44) | — | 42 | 2 | (44) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue | $ | 870 | $ | 697 | $ | (45) | $ | 1,522 | $ | 1,076 | $ | 566 | $ | (42) | $ | 1,600 | Revenue | 749 | 676 | (44) | 1,381 | 1,022 | 575 | (44) | 1,553 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating, SG&A | Operating, SG&A | 360 | 473 | (45) | 788 | 348 | 380 | (42) | 686 | Operating, SG&A | 334 | 471 | (44) | 761 | 344 | 392 | (44) | 692 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income | Adjusted Operating Income | $ | 510 | $ | 224 | $ | — | $ | 734 | $ | 728 | $ | 186 | $ | — | $ | 914 | Adjusted Operating Income | 415 | 205 | — | 620 | 678 | 183 | — | 861 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Add: | Add: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 21 | 60 | — | 81 | 18 | 42 | — | 60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 18 | 60 | — | 78 | 18 | 41 | — | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring | — | — | — | — | — | 2 | — | 2 | Restructuring | 15 | 16 | — | 31 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Income | Operating Income | $ | 508 | $ | 801 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Income | $ | 656 | $ | 853 |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
MIS | MA | Eliminations | Consolidated | MIS | MA | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||||||||||
Total external revenue | $ | 1,533 | $ | 1,370 | $ | — | $ | 2,903 | $ | 2,016 | $ | 1,137 | $ | — | $ | 3,153 | ||||||||||||||||||||||||||||||||||
Intersegment revenue | 86 | 3 | (89) | — | 82 | 4 | (86) | — | ||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 1,619 | $ | 1,373 | $ | (89) | $ | 2,903 | $ | 2,098 | $ | 1,141 | $ | (86) | $ | 3,153 | ||||||||||||||||||||||||||||||||||
Operating, SG&A | 694 | 944 | (89) | 1,549 | 692 | 772 | (86) | 1,378 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income | $ | 925 | $ | 429 | $ | — | $ | 1,354 | $ | 1,406 | $ | 369 | $ | — | $ | 1,775 | ||||||||||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 39 | 120 | — | 159 | 36 | 83 | — | 119 | ||||||||||||||||||||||||||||||||||||||||||
Restructuring | 15 | 16 | — | 31 | — | 2 | — | 2 | ||||||||||||||||||||||||||||||||||||||||||
Operating Income | $ | 1,164 | $ | 1,654 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
United States | United States | $ | 862 | $ | 885 | United States | $ | 723 | $ | 831 | $ | 1,546 | $ | 1,716 | ||||||||||||||||||||||||||||||||
Non-U.S.: | Non-U.S.: | Non-U.S.: | ||||||||||||||||||||||||||||||||||||||||||||
EMEA | EMEA | 434 | 478 | EMEA | 422 | 481 | 878 | 959 | ||||||||||||||||||||||||||||||||||||||
Asia-Pacific | Asia-Pacific | 135 | 156 | Asia-Pacific | 151 | 155 | 293 | 311 | ||||||||||||||||||||||||||||||||||||||
Americas | Americas | 91 | 81 | Americas | 85 | 86 | 186 | 167 | ||||||||||||||||||||||||||||||||||||||
Total Non-U.S. | Total Non-U.S. | 660 | 715 | Total Non-U.S. | 658 | 722 | 1,357 | 1,437 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,522 | $ | 1,600 | Total | $ | 1,381 | $ | 1,553 | $ | 2,903 | $ | 3,153 |
Three Months Ended March 31, | Three Months Ended June 30, | |||||||||||||||||||||||||||
Financial measure: | Financial measure: | 2022 | 2021 | % Change Favorable (Unfavorable) | Insight and Key Drivers of Change Compared to Prior Year | Financial measure: | 2022 | 2021 | % Change Favorable (Unfavorable) | Insight and Key Drivers of Change Compared to Prior Year | ||||||||||||||||||
Moody's total revenue | Moody's total revenue | $ | 1,522 | $ | 1,600 | (5 | %) | — reflects lower MIS revenue partially offset by growth in MA | Moody's total revenue | $ | 1,381 | $ | 1,553 | (11 | %) | — reflects lower MIS revenue partially offset by growth in MA | ||||||||||||
MIS External Revenue | MIS External Revenue | $ | 827 | $ | 1,036 | (20 | %) | — mainly reflects declines in leveraged finance (high-yield corporate debt and bank loans) issuance resulting from market volatility relating to the Russia/Ukraine conflict, inflation concerns and rising borrowing costs | MIS External Revenue | $ | 706 | $ | 980 | (28 | %) | — mainly reflects declines in leveraged finance (high-yield corporate debt and bank loans) issuance resulting from market volatility relating to macroeconomic uncertainties, rising borrowing costs and the Russia/Ukraine conflict | ||||||||||||
MA External Revenue | MA External Revenue | $ | 695 | $ | 564 | 23 | % | — inorganic growth from acquisitions; — continued growth in KYC products; and — ongoing recurring revenue growth from subscription-based sales to banking and insurance customers | MA External Revenue | $ | 675 | $ | 573 | 18 | % | — inorganic growth from acquisitions; and — strong organic growth across all LOBs, most notably for KYC and compliance solutions coupled with continued strong retention and demand for credit research, analytics and models | ||||||||||||
Total operating and SG&A expenses | Total operating and SG&A expenses | $ | 788 | $ | 686 | (15 | %) | — operational and integration costs associated with recent acquisitions contributed approximately 13 percentage points of growth | Total operating and SG&A expenses | $ | 761 | $ | 692 | (10 | %) | — operational and integration costs associated with recent acquisitions contributed approximately 10 percentage points of growth; and — hiring and salary increases contributed approximately five percentage points of the growth; partially offset by: — lower incentive compensation accruals and performance-based equity compensation | ||||||||||||
Restructuring | Restructuring | $ | 31 | $ | — | NM | — the 2022 charge is pursuant to the Company's 2022 - 2023 Geolocation Restructuring Program, more fully discussed in Note 11 to the condensed consolidated financial statements | |||||||||||||||||||||
Total non-operating (expense) income, net | Total non-operating (expense) income, net | $ | (47) | $ | 9 | NM | — primarily reflects a $40 million benefit in the prior period related to the reversal of tax-related interest accruals pursuant to the resolution of tax matters | Total non-operating (expense) income, net | $ | (65) | $ | (43) | (51 %) | — primarily reflects FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia | ||||||||||||||
Operating Margin | Operating Margin | 43.1 | % | 53.3 | % | (1,020 | BPS) | — margin declines primarily due to the aforementioned decrease in MIS revenue | Operating Margin | 36.8 | % | 51.6 | % | (1,480 | BPS) | — margin declines primarily due to the aforementioned decrease in MIS revenue coupled with the aforementioned increase in expenses | ||||||||||||
Adjusted Operating Margin | Adjusted Operating Margin | 48.2 | % | 57.1 | % | (890 | BPS) | Adjusted Operating Margin | 44.9 | % | 55.4 | % | (1,050 | BPS) | ||||||||||||||
ETR | ETR | 18.2 | % | 14.6 | % | (360 | BPS) | — primarily due to the resolution of uncertain tax positions in the first quarter of 2021 that did not recur to the same extent in the first quarter of 2022 | ETR | 26.2 | % | 23.9 | % | (230 | BPS) | — primarily reflects the non-deductible nature of the aforementioned FX translation losses resulting from the Company no longer conducting commercial operations in Russia coupled with lower excess tax benefits in 2022 | ||||||||||||
Diluted EPS | Diluted EPS | $ | 2.68 | $ | 3.90 | (31 | %) | — mainly due to declines in MIS revenue coupled with the aforementioned increase in expenses. EPS includes $0.12/share and $0.47/share in benefits related to the aforementioned resolution of tax matters in 2022 and 2021, respectively. | Diluted EPS | $ | 1.77 | $ | 3.07 | (42 | %) | — mainly due to declines in MIS revenue coupled with the aforementioned increase in expenses | ||||||||||||
Adjusted Diluted EPS | Adjusted Diluted EPS | $ | 2.89 | $ | 4.06 | (29 | %) | Adjusted Diluted EPS | $ | 2.22 | $ | 3.22 | (31 | %) |
Three Months Ended March 31, | % Change Favorable (Unfavorable) | Three Months Ended June 30, | % Change Favorable (Unfavorable) | |||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Revenue: | Revenue: | Revenue: | ||||||||||||||||||||||||||||||||
United States | United States | $ | 862 | $ | 885 | (3 | %) | United States | $ | 723 | $ | 831 | (13 | %) | ||||||||||||||||||||
Non-U.S.: | Non-U.S.: | Non-U.S.: | ||||||||||||||||||||||||||||||||
EMEA | EMEA | 434 | 478 | (9 | %) | EMEA | 422 | 481 | (12 | %) | ||||||||||||||||||||||||
Asia-Pacific | Asia-Pacific | 135 | 156 | (13 | %) | Asia-Pacific | 151 | 155 | (3 | %) | ||||||||||||||||||||||||
Americas | Americas | 91 | 81 | 12 | % | Americas | 85 | 86 | (1 | %) | ||||||||||||||||||||||||
Total Non-U.S. | Total Non-U.S. | 660 | 715 | (8 | %) | Total Non-U.S. | 658 | 722 | (9 | %) | ||||||||||||||||||||||||
Total | Total | 1,522 | 1,600 | (5 | %) | Total | 1,381 | 1,553 | (11 | %) | ||||||||||||||||||||||||
Expenses: | Expenses: | Expenses: | ||||||||||||||||||||||||||||||||
Operating | Operating | 417 | 393 | (6 | %) | Operating | 393 | 365 | (8 | %) | ||||||||||||||||||||||||
SG&A | SG&A | 371 | 293 | (27 | %) | SG&A | 368 | 327 | (13 | %) | ||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 78 | 59 | (32 | %) | Depreciation and amortization | 81 | 60 | (35 | %) | ||||||||||||||||||||||||
Restructuring | Restructuring | — | 2 | 100 | % | Restructuring | 31 | — | NM | |||||||||||||||||||||||||
Total | Total | 866 | 747 | (16 | %) | Total | 873 | 752 | (16 | %) | ||||||||||||||||||||||||
Operating income | Operating income | $ | 656 | $ | 853 | (23 | %) | Operating income | $ | 508 | $ | 801 | (37 | %) | ||||||||||||||||||||
Adjusted Operating Income (1) | Adjusted Operating Income (1) | $ | 734 | $ | 914 | (20 | %) | Adjusted Operating Income (1) | $ | 620 | $ | 861 | (28 | %) | ||||||||||||||||||||
Interest expense, net | Interest expense, net | $ | (53) | $ | (7) | NM | Interest expense, net | $ | (55) | $ | (49) | (12 | %) | |||||||||||||||||||||
Other non-operating income, net | Other non-operating income, net | 6 | 16 | (63 | %) | Other non-operating income, net | (10) | 6 | (267 | %) | ||||||||||||||||||||||||
Non-operating (expense) income, net | Non-operating (expense) income, net | $ | (47) | $ | 9 | NM | Non-operating (expense) income, net | $ | (65) | $ | (43) | (51 | %) | |||||||||||||||||||||
Net income attributable to Moody's | Net income attributable to Moody's | $ | 498 | $ | 736 | (32 | %) | Net income attributable to Moody's | $ | 327 | $ | 577 | (43 | %) | ||||||||||||||||||||
Diluted weighted average shares outstanding | Diluted weighted average shares outstanding | 186.1 | 188.6 | 1 | % | Diluted weighted average shares outstanding | 184.9 | 187.9 | 2 | % | ||||||||||||||||||||||||
Diluted EPS attributable to Moody's common shareholders | Diluted EPS attributable to Moody's common shareholders | $ | 2.68 | $ | 3.90 | (31 | %) | Diluted EPS attributable to Moody's common shareholders | $ | 1.77 | $ | 3.07 | (42 | %) | ||||||||||||||||||||
Adjusted Diluted EPS (1) | Adjusted Diluted EPS (1) | $ | 2.89 | $ | 4.06 | (29 | %) | Adjusted Diluted EPS (1) | $ | 2.22 | $ | 3.22 | (31 | %) | ||||||||||||||||||||
Operating margin | Operating margin | 43.1 | % | 53.3 | % | Operating margin | 36.8 | % | 51.6 | % | ||||||||||||||||||||||||
Adjusted Operating Margin(1) | Adjusted Operating Margin(1) | 48.2 | % | 57.1 | % | Adjusted Operating Margin(1) | 44.9 | % | 55.4 | % | ||||||||||||||||||||||||
Effective tax rate | Effective tax rate | 18.2 | % | 14.6 | % | Effective tax rate | 26.2 | % | 23.9 | % |
March 31, | Change | June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | % | 2022 | 2021 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
MIS | MIS | MIS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | 1,504 | 1,524 | (1 | %) | U.S. | 1,450 | 1,429 | 1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. | 3,895 | 3,618 | 8 | % | Non-U.S. | 3,582 | 3,280 | 9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 5,399 | 5,142 | 5 | % | Total | 5,032 | 4,709 | 7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
MA | MA | MA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | 2,708 | 2,033 | 33 | % | U.S. | 2,788 | 2,072 | 35 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. | 4,076 | 2,971 | 37 | % | Non-U.S. | 4,304 | 3,070 | 40 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 6,784 | 5,004 | 36 | % | Total | 7,092 | 5,142 | 38 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
MSS | MSS | MSS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | 749 | 672 | 11 | % | U.S. | 794 | 676 | 17 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. | 981 | 809 | 21 | % | Non-U.S. | 1,288 | 1,079 | 19 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1,730 | 1,481 | 17 | % | Total | 2,082 | 1,755 | 19 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total MCO | Total MCO | Total MCO | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | 4,961 | 4,229 | 17 | % | U.S. | 5,032 | 4,177 | 20 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. | 8,952 | 7,398 | 21 | % | Non-U.S. | 9,174 | 7,429 | 23 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 13,913 | 11,627 | 20 | % | Total | 14,206 | 11,606 | 22 | % |
Three months ended June 30, |
Global revenue ⇓ | U.S. Revenue ⇓ | Non-U.S. Revenue ⇓ |
Q2 Operating Expense ⇑ | Q2 SG&A Expense ⇑ |
Compensation expenses | Compensation expenses increased | |||||||||||||||||||
— lower incentive compensation accruals and performance-based equity compensation of $28 million, which aligns with actual/projected financial and operating performance; and | — inorganic growth from acquisitions | |||||||||||||||||||
— higher salaries and benefits costs primarily due to hiring and salary | ||||||||||||||||||||
— | — lower incentive compensation accruals and performance-based equity compensation of $20 million, which aligns with actual/projected financial and operating performance. | |||||||||||||||||||
— inorganic growth from acquisitions of $33 million | ||||||||||||||||||||
Non-compensation expenses increased | Non-compensation expenses increased | |||||||||||||||||||
— | ||||||||||||||||||||
— inorganic growth from acquisitions of $12 million; and | ||||||||||||||||||||
— higher | ||||||||||||||||||||
— inorganic growth from acquisitions of $10 million. | ||||||||||||||||||||
Other Expenses |
Operating margin | Adjusted Operating Margin |
Interest Expense, net ⇑ | Other non-operating income ⇓ |
Increase in expense is primarily due to: | Decrease in income is primarily due to: | |||||||||||||
— higher interest on borrowings resulting from the issuance of new long-term debt in 2022 (refer to the "Material Cash Requirements" section of this MD&A for further information on the Company's indebtedness) | — FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia (refer to the section above entitled "Russia/Ukraine Conflict" for further information); and | |||||||||||||
— higher gains of $15 million in the prior year on certain of the Company's investments in equity securities; partially offset by: | ||||||||||||||
— an $11 million benefit relating to statute of limitations lapses on certain indemnification obligations relating to the MAKS divestiture; and | ||||||||||||||
— a $7 million loss on the settlement of pension obligations in 2021 resulting from lump sum distributions from the Company's defined benefit pension plans. | ||||||||||||||
ETR ⇑ 230 BPS |
Diluted EPS ⇓ $1.30 | Adjusted Diluted EPS ⇓ $1.00 |
Three Months Ended June 30, | % Change Favorable (Unfavorable) | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
Revenue: | |||||||||||||||||
Corporate finance (CFG) | $ | 322 | $ | 550 | (41 | %) | |||||||||||
Structured finance (SFG) | 123 | 140 | (12 | %) | |||||||||||||
Financial institutions (FIG) | 128 | 150 | (15 | %) | |||||||||||||
Public, project and infrastructure finance (PPIF) | 122 | 130 | (6 | %) | |||||||||||||
Total ratings revenue | 695 | 970 | (28 | %) | |||||||||||||
MIS Other | 11 | 10 | 10 | % | |||||||||||||
Total external revenue | 706 | 980 | (28 | %) | |||||||||||||
Intersegment revenue | 43 | 42 | 2 | % | |||||||||||||
Total MIS revenue | $ | 749 | $ | 1,022 | (27 | %) | |||||||||||
Expenses: | |||||||||||||||||
Operating and SG&A (external) | $ | 333 | $ | 342 | 3 | % | |||||||||||
Operating and SG&A (intersegment) | 1 | 2 | 50 | % | |||||||||||||
Total operating and SG&A | $ | 334 | $ | 344 | 3 | % | |||||||||||
Adjusted Operating Income | $ | 415 | $ | 678 | (39 | %) | |||||||||||
Adjusted Operating Margin | 55.4 | % | 66.3 | % | |||||||||||||
Depreciation and amortization | 21 | 18 | (17 | %) | |||||||||||||
Restructuring | 15 | — | NM |
Three months ended June 30, |
MIS: Global revenue ⇓ $274 million | U.S. Revenue ⇓ $156 million | Non-U.S. Revenue ⇓ $118 million |
Three months ended June 30, |
CFG: Global revenue ⇓ $228 million | U.S. Revenue ⇓ $135 million | Non-U.S. Revenue ⇓ $93 million |
Three months ended June 30, |
SFG: Global revenue ⇓ $17 million | U.S. Revenue ⇓ $5 million | Non-U.S. Revenue ⇓ $12 million |
Three months ended June 30, |
FIG: Global revenue ⇓ $22 million | U.S. Revenue ⇓ $16 million | Non-U.S. Revenue ⇓ $6 million |
Three months ended June 30, |
PPIF: Global revenue ⇓ $8 million | U.S. Revenue ⇓ $1 million | Non-U.S. Revenue ⇓ $7 million |
MIS: Q2 Operating and SG&A Expense ⇓ $9 million |
Compensation costs | Non-compensation costs | |||||||
The decrease is primarily due to: | The increase is primarily due to: | |||||||
— lower incentive compensation accruals and performance-based equity compensation, which aligns with actual/projected financial and operating performance | — higher costs relating to strategic initiatives to support business growth coupled with enhancements to technology infrastructure to enable automation, innovation and efficiency; and | |||||||
— higher travel costs compared to minimal travel in the prior year in light of COVID-19 |
Other Expenses |
MIS: Adjusted Operating Margin 55.4% ⇓ 1,090 BPS |
Three Months Ended June 30, | % Change Favorable (Unfavorable) | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
Revenue: | |||||||||||||||||
Decision Solutions (DS) | $ | 312 | $ | 222 | 41 | % | |||||||||||
Research and Insights (R&I) | 185 | 175 | 6 | % | |||||||||||||
Data and Information (D&I) | 178 | 176 | 1 | % | |||||||||||||
Total external revenue | 675 | 573 | 18 | % | |||||||||||||
Intersegment revenue | 1 | 2 | (50 | %) | |||||||||||||
Total MA revenue | 676 | 575 | 18 | % | |||||||||||||
Expenses: | |||||||||||||||||
Operating and SG&A (external) | 428 | 350 | (22 | %) | |||||||||||||
Operating and SG&A (intersegment) | 43 | 42 | (2 | %) | |||||||||||||
Total operating and SG&A | 471 | 392 | (20 | %) | |||||||||||||
Adjusted Operating Income | $ | 205 | $ | 183 | 12 | % | |||||||||||
Adjusted Operating Margin | 30.3 | % | 31.8 | % | |||||||||||||
Depreciation and amortization | 60 | 42 | (43 | %) | |||||||||||||
Restructuring | 16 | — | NM |
Three months ended June 30, |
MA: Global revenue ⇑ $102 million | U.S. Revenue ⇑ $48 million | Non-U.S. Revenue ⇑ $54 million |
Three months ended June 30, |
DS: Global revenue ⇑ $90 million | U.S. Revenue ⇑ $37 million | Non-U.S. Revenue ⇑ $53 million |
Three months ended June 30, |
R&I: Global revenue ⇑ $10 million | U.S. Revenue ⇑ $6 million | Non-U.S. Revenue ⇑ $4 million |
Three months ended June 30, |
D&I: Global revenue ⇑ $2 million | U.S. Revenue ⇑ $5 million | Non-U.S. Revenue ⇓ $3 million |
MA: Q2 Operating and SG&A Expense ⇑ $78 million |
Compensation costs | Non-compensation costs | |||||||
The increase is primarily due to: | The increase is primarily due to: | |||||||
— inorganic expense growth from acquisitions; and | — operating and integration-related costs associated with recent acquisitions. | |||||||
— higher salaries and benefits related to headcount growth. | ||||||||
Other Expenses |
MA: Adjusted Operating Margin 30.3% ⇓ 150 BPS |
Six Months Ended June 30, | ||||||||||||||
Financial measure: | 2022 | 2021 | % Change | Insight and Key Drivers of Change Compared to Prior Year | ||||||||||
Moody's total revenue | $ | 2,903 | $ | 3,153 | (8 | %) | — reflects lower MIS revenue partially offset by growth in MA | |||||||
MIS External Revenue | $ | 1,533 | $ | 2,016 | (24 | %) | — mainly reflects declines in leveraged finance (high-yield corporate debt and bank loans) issuance resulting from market volatility relating to macroeconomic uncertainties, rising borrowing costs and the Russia/Ukraine conflict. | |||||||
MA External Revenue | $ | 1,370 | $ | 1,137 | 20 | % | — inorganic growth from acquisitions; and — strong organic growth across all LOBs, most notably for KYC and compliance solutions coupled with continued strong retention and demand for credit research, analytics and models. | |||||||
Total operating and SG&A expenses | $ | 1,549 | $ | 1,378 | (12 | %) | — operational and integration costs associated with recent acquisitions contributed approximately 11 percentage points of growth; and — increases in hiring and salary growth contributed approximately five percentage points of growth; partially offset by: — lower incentive compensation accruals and performance-based equity compensation. | |||||||
Restructuring | $ | 31 | $ | 2 | NM | — the 2022 charge is pursuant to the Company's 2022 - 2023 Geolocation Restructuring Program, more fully discussed in Note 11 to the condensed consolidated financial statements | ||||||||
Total non-operating (expense) income, net | $ | (112) | $ | (34) | (229 | %) | — reflects a $40 million benefit in the prior period related to the reversal of tax-related interest accruals pursuant to the resolution of tax matters; and — the 2022 amount includes FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia | |||||||
Operating Margin | 40.1 | % | 52.5 | % | (1240 BPS) | — margin declines primarily due to the aforementioned decrease in MIS revenue | ||||||||
Adjusted Operating Margin | 46.6 | % | 56.3 | % | (970 BPS) | |||||||||
ETR | 21.6 | % | 19.0 | % | (260BPS) | — primarily reflects the non-deductible nature of the aforementioned FX translation losses resulting from the Company no longer conducting commercial operations in Russia; and — the resolution of uncertain tax positions in the first half of 2021 that did not recur to the same extent in the first half of 2022 | ||||||||
Diluted EPS | $ | 4.45 | $ | 6.98 | (36 | %) | — mainly due to declines in MIS revenue coupled with the aforementioned increase in expenses | |||||||
Adjusted Diluted EPS | $ | 5.11 | $ | 7.28 | (30 | %) |
Six Months Ended June 30, | % Change Favorable (Unfavorable) | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
Revenue: | |||||||||||||||||
United States | $ | 1,546 | $ | 1,716 | (10 | %) | |||||||||||
Non-U.S.: | |||||||||||||||||
EMEA | 878 | 959 | (8 | %) | |||||||||||||
Asia-Pacific | 293 | 311 | (6 | %) | |||||||||||||
Americas | 186 | 167 | 11 | % | |||||||||||||
Total Non-U.S. | 1,357 | 1,437 | (6 | %) | |||||||||||||
Total | 2,903 | 3,153 | (8 | %) | |||||||||||||
Expenses: | |||||||||||||||||
Operating | 810 | 758 | (7 | %) | |||||||||||||
SG&A | 739 | 620 | (19 | %) | |||||||||||||
Depreciation and amortization | 159 | 119 | (34 | %) | |||||||||||||
Restructuring | 31 | 2 | NM | ||||||||||||||
Total | 1,739 | 1,499 | (16 | %) | |||||||||||||
Operating income | 1,164 | 1,654 | (30 | %) | |||||||||||||
Adjusted Operating Income (1) | 1,354 | 1,775 | (24 | %) | |||||||||||||
Interest expense, net | (108) | (56) | (93 | %) | |||||||||||||
Other non-operating income, net | (4) | 22 | (118 | %) | |||||||||||||
Non-operating (expense) income, net | (112) | (34) | (229 | %) | |||||||||||||
Net income attributable to Moody’s | $ | 825 | $ | 1,313 | (37 | %) | |||||||||||
Diluted weighted average shares outstanding | 185.4 | 188.2 | 1 | % | |||||||||||||
Diluted EPS attributable to Moody’s common shareholders | $ | 4.45 | $ | 6.98 | (36 | %) | |||||||||||
Adjusted Diluted EPS (1) | $ | 5.11 | $ | 7.28 | (30 | %) | |||||||||||
Operating margin | 40.1 | % | 52.5 | % | |||||||||||||
Adjusted Operating Margin (1) | 46.6 | % | 56.3 | % | |||||||||||||
Effective tax rate | 21.6 | % | 19.0 | % |
Six months ended June 30, |
Global revenue ⇓ $250 million | U.S. Revenue ⇓ $170 million | Non-U.S. Revenue ⇓ $80 million |
YTD Operating Expense ⇑ $52 million | YTD SG&A Expense ⇑ $119 million |
Compensation expenses decreased $3 million and reflected: | Compensation expenses increased $60 million reflecting: | |||||||||||||||||||
— lower incentive compensation accruals and performance-based equity compensation of $34 million, which aligns with actual/projected financial and operating performance; | — inorganic growth from acquisitions of $29 million; and | |||||||||||||||||||
— higher salaries and benefits costs primarily due to hiring and salary increases; partially offset by: | ||||||||||||||||||||
— approximately $40 million in higher compensation costs eligible for capitalization in 2022 reflecting certain product development in the MA operating segment; partially offset by | — lower incentive compensation accruals and performance-based equity compensation of $14 million, which aligns with actual/projected financial and operating performance. | |||||||||||||||||||
— inorganic growth from acquisitions of $68 million. | ||||||||||||||||||||
Non-compensation expenses increased $55 million reflecting: | Non-compensation expenses increased $59 million reflecting: | |||||||||||||||||||
— inorganic growth from acquisitions of $20 million; and | — inorganic growth from acquisitions of $21 million; | |||||||||||||||||||
— higher costs of $30 million relating to strategic initiatives to support business growth coupled with enhancements to technology infrastructure to enable automation, innovation and efficiency. | — higher estimates for bad debt reserves of $11 million for the Company's Russian-domiciled customers resulting from the impact of the Russia/Ukraine conflict; and | |||||||||||||||||||
— higher costs of $12 million relating to strategic initiatives to support business growth coupled with enhancements to technology infrastructure to enable automation, innovation and efficiency. | ||||||||||||||||||||
Other Expenses |
Operating margin 40.1%, down 1,240 BPS | Adjusted Operating Margin 46.6%, down 970 BPS |
Interest Expense, net ⇑ $52 million | Other non-operating income ⇓ $26 million |
Increase in expense is primarily due to: | Decrease in income is primarily due to: | ||||||||||
— a $40 million benefit in the prior year related to the reversal of tax-related interest accruals pursuant to the resolution of uncertain tax | — FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia (refer to the section above entitled "Russia/Ukraine Conflict" for further information); and | ||||||||||
— higher interest on borrowings resulting from the issuance of new long-term debt in 2022 (refer to the "Material Cash Requirements" section of this MD&A for further information on the Company's indebtedness) | — higher gains of $23 million in the prior year on certain of the Company's investments in equity | ||||||||||
— an $11 million benefit relating to statute of limitations lapses on certain indemnification obligations relating to the MAKS divestiture; and | |||||||||||
— a $7 million loss on the settlement of pension obligations in 2021 resulting from lump sum distributions from the Company's defined benefit pension plans. |
ETR ⇑ |
Diluted EPS ⇓ | $2.53 | Adjusted Diluted EPS ⇓ |
Three Months Ended March 31, | % Change Favorable (Unfavorable) | Six Months Ended June 30, | % Change Favorable (Unfavorable) | |||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Revenue: | Revenue: | Revenue: | ||||||||||||||||||||||||||||||||
Corporate finance (CFG) | Corporate finance (CFG) | $ | 417 | $ | 605 | (31 | %) | Corporate finance (CFG) | $ | 739 | $ | 1,155 | (36 | %) | ||||||||||||||||||||
Structured finance (SFG) | Structured finance (SFG) | 144 | 116 | 24 | % | Structured finance (SFG) | $ | 267 | $ | 256 | 4 | % | ||||||||||||||||||||||
Financial institutions (FIG) | Financial institutions (FIG) | 131 | 162 | (19 | %) | Financial institutions (FIG) | 259 | 312 | (17 | %) | ||||||||||||||||||||||||
Public, project and infrastructure finance (PPIF) | Public, project and infrastructure finance (PPIF) | 123 | 143 | (14 | %) | Public, project and infrastructure finance (PPIF) | 245 | 273 | (10 | %) | ||||||||||||||||||||||||
Total ratings revenue | Total ratings revenue | 815 | 1,026 | (21 | %) | Total ratings revenue | 1,510 | 1,996 | (24 | %) | ||||||||||||||||||||||||
MIS Other | MIS Other | 12 | 10 | 20 | % | MIS Other | 23 | 20 | 15 | % | ||||||||||||||||||||||||
Total external revenue | Total external revenue | 827 | 1,036 | (20 | %) | Total external revenue | 1,533 | 2,016 | (24 | %) | ||||||||||||||||||||||||
Intersegment revenue | 43 | 40 | 8 | % | ||||||||||||||||||||||||||||||
Total MIS revenue | $ | 870 | $ | 1,076 | (19 | %) | ||||||||||||||||||||||||||||
Intersegment royalty | Intersegment royalty | 86 | 82 | 5 | % | |||||||||||||||||||||||||||||
Total | Total | 1,619 | 2,098 | (23 | %) | |||||||||||||||||||||||||||||
Expenses: | Expenses: | Expenses: | ||||||||||||||||||||||||||||||||
Operating and SG&A (external) | Operating and SG&A (external) | $ | 358 | $ | 346 | (3 | %) | Operating and SG&A (external) | 691 | 688 | — | % | ||||||||||||||||||||||
Operating and SG&A (intersegment) | Operating and SG&A (intersegment) | 2 | 2 | — | % | Operating and SG&A (intersegment) | 3 | 4 | 25 | % | ||||||||||||||||||||||||
Total operating and SG&A | $ | 360 | $ | 348 | (3 | %) | ||||||||||||||||||||||||||||
Total operating and SG&A expense | Total operating and SG&A expense | 694 | 692 | — | % | |||||||||||||||||||||||||||||
Adjusted Operating Income | Adjusted Operating Income | $ | 510 | $ | 728 | (30 | %) | Adjusted Operating Income | $ | 925 | $ | 1,406 | (34 | %) | ||||||||||||||||||||
Adjusted Operating Margin | Adjusted Operating Margin | 58.6 | % | 67.7 | % | Adjusted Operating Margin | 57.1 | % | 67.0 | % | ||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 18 | 18 | — | % | Depreciation and amortization | 39 | 36 | (8 | %) | ||||||||||||||||||||||||
Restructuring | Restructuring | 15 | — | NM |
Six months ended June 30, |
MIS: Global revenue ⇓ | U.S. Revenue ⇓ | Non-U.S. Revenue ⇓ |
Six months ended June 30, |
CFG: Global revenue ⇓ | U.S. Revenue ⇓ | Non-U.S. Revenue ⇓ |
Six months ended June 30, |
SFG: Global revenue ⇑ | U.S. Revenue ⇑ | Non-U.S. Revenue ⇓ |
Six months ended June 30, |
FIG: Global revenue ⇓ | U.S. Revenue ⇓ | Non-U.S. Revenue ⇓ |
Six months ended June 30, |
PPIF: Global revenue ⇓ | U.S. Revenue ⇓ | Non-U.S. Revenue ⇓ |
MIS: YTD Operating and SG&A Expense ⇑ |
Compensation costs | Non-compensation costs | |||||||
The decrease is primarily due to: | The increase is primarily due to: | |||||||
— lower incentive compensation accruals and performance-based equity compensation, which aligns with actual/projected financial and operating performance. | — higher estimates for bad debt reserves for the Company's Russian-domiciled customers resulting from the impact of the Russia/Ukraine | |||||||
— higher costs relating to strategic initiatives to support business growth coupled with enhancements to technology infrastructure to enable automation, innovation and efficiency, which represented approximately 15% of the increase; and | ||||||||
— higher travel costs resulting from minimal travel in the prior year in light of COVID-19, which represented approximately 10% of the increase. |
Other Expenses |
Adjusted Operating Margin |
Three Months Ended March 31, | % Change Favorable (Unfavorable) | Six Months Ended June 30, | % Change Favorable (Unfavorable) | |||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Revenue: | Revenue: | Revenue: | ||||||||||||||||||||||||||||||||
Decision Solutions (DS) | Decision Solutions (DS) | $ | 334 | $ | 225 | 48 | % | Decision Solutions (DS) | $ | 646 | $ | 447 | 45 | % | ||||||||||||||||||||
Research and Insights (R&I) | Research and Insights (R&I) | 183 | 171 | 7 | % | Research and Insights (R&I) | 368 | 346 | 6 | % | ||||||||||||||||||||||||
Data and Information (D&I) | Data and Information (D&I) | 178 | 168 | 6 | % | Data and Information (D&I) | 356 | 344 | 3 | % | ||||||||||||||||||||||||
Total external revenue | Total external revenue | 695 | 564 | 23 | % | Total external revenue | 1,370 | 1,137 | 20 | % | ||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 2 | 2 | — | % | Intersegment revenue | 3 | 4 | (25 | %) | ||||||||||||||||||||||||
Total MA revenue | 697 | 566 | 23 | % | ||||||||||||||||||||||||||||||
Total MA Revenue | Total MA Revenue | 1,373 | 1,141 | 20 | % | |||||||||||||||||||||||||||||
Expenses: | Expenses: | Expenses: | ||||||||||||||||||||||||||||||||
Operating and SG&A (external) | Operating and SG&A (external) | 430 | 340 | (26 | %) | Operating and SG&A (external) | 858 | 690 | (24 | %) | ||||||||||||||||||||||||
Operating and SG&A (intersegment) | Operating and SG&A (intersegment) | 43 | 40 | (8 | %) | Operating and SG&A (intersegment) | 86 | 82 | (5 | %) | ||||||||||||||||||||||||
Total operating and SG&A | 473 | 380 | (24 | %) | ||||||||||||||||||||||||||||||
Total operating and SG&A expense | Total operating and SG&A expense | 944 | 772 | (22 | %) | |||||||||||||||||||||||||||||
Adjusted Operating Income | Adjusted Operating Income | $ | 224 | $ | 186 | 20 | % | Adjusted Operating Income | $ | 429 | $ | 369 | 16 | % | ||||||||||||||||||||
Adjusted Operating Margin | Adjusted Operating Margin | 32.1 | % | 32.9 | % | Adjusted Operating Margin | 31.2 | % | 32.3 | % | ||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 60 | 41 | (46 | %) | Depreciation and amortization | 120 | 83 | (45 | %) | ||||||||||||||||||||||||
Restructuring | Restructuring | — | 2 | 100 | % | Restructuring | 16 | 2 | NM |
Six months ended June 30, |
MA: Global revenue ⇑ | U.S. Revenue ⇑ | Non-U.S. Revenue ⇑ |
Six months ended June 30, |
DS: Global revenue ⇑ $199 million | U.S. Revenue ⇑ $95 million | Non-U.S. Revenue ⇑ $104 million |
Six months ended June 30, |
R&I: Global revenue ⇑ | U.S. Revenue ⇑ | Non-U.S. Revenue ⇑ |
Six months ended June 30, |
D&I: Global revenue ⇑ | U.S. Revenue ⇑ | Non-U.S. Revenue ⇑ |
MA: YTD Operating and SG&A Expense ⇑ |
Compensation costs | Non-compensation costs | |||||||
— inorganic expense growth from acquisitions, which | — operating and integration-related costs associated with recent acquisitions, which contributed approximately | |||||||
Other Expenses |
MA: Adjusted Operating Margin |
Three Months Ended March 31, | $ Change Favorable (Unfavorable) | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
Net cash provided by operating activities | $ | 470 | $ | 676 | $ | (206) | |||||||||||
Net cash used in investing activities | $ | (161) | $ | (194) | $ | 33 | |||||||||||
Net cash used in financing activities | $ | (352) | $ | (290) | $ | (62) | |||||||||||
Free Cash Flow (1) | $ | 411 | $ | 662 | $ | (251) |
Six Months Ended June 30, | $ Change Favorable (Unfavorable) | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
Net cash provided by operating activities | $ | 761 | $ | 1,270 | $ | (509) | |||||||||||
Net cash used in investing activities | $ | (172) | $ | (251) | $ | 79 | |||||||||||
Net cash used in financing activities | $ | (712) | $ | (792) | $ | 80 | |||||||||||
Free Cash Flow (1) | $ | 628 | $ | 1,226 | $ | (598) |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Operating income | $ | 656 | $ | 853 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Depreciation and amortization | 78 | 59 | |||||||||||||||||||||
Restructuring | — | 2 | |||||||||||||||||||||
Adjusted Operating Income | $ | 734 | $ | 914 | |||||||||||||||||||
Operating margin | 43.1 | % | 53.3 | % | |||||||||||||||||||
Adjusted Operating Margin | 48.2 | % | 57.1 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Operating income | $ | 508 | $ | 801 | $ | 1,164 | $ | 1,654 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Depreciation and amortization | 81 | 60 | 159 | 119 | |||||||||||||||||||
Restructuring | 31 | — | 31 | 2 | |||||||||||||||||||
Adjusted Operating Income | $ | 620 | $ | 861 | $ | 1,354 | $ | 1,775 | |||||||||||||||
Operating margin | 36.8 | % | 51.6 | % | 40.1 | % | 52.5 | % | |||||||||||||||
Adjusted Operating Margin | 44.9 | % | 55.4 | % | 46.6 | % | 56.3 | % |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts in millions | Amounts in millions | 2022 | 2021 | Amounts in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Moody's common shareholders | Net income attributable to Moody's common shareholders | $ | 498 | $ | 736 | Net income attributable to Moody's common shareholders | $ | 327 | $ | 577 | $ | 825 | $ | 1,313 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-Tax Acquisition-Related Intangible Amortization Expenses | Pre-Tax Acquisition-Related Intangible Amortization Expenses | $ | 51 | $ | 35 | Pre-Tax Acquisition-Related Intangible Amortization Expenses | $ | 51 | $ | 36 | $ | 102 | $ | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax on Acquisition-Related Intangible Amortization Expenses | Tax on Acquisition-Related Intangible Amortization Expenses | (12) | (8) | Tax on Acquisition-Related Intangible Amortization Expenses | (12) | (8) | (24) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Acquisition-Related Intangible Amortization Expenses | Net Acquisition-Related Intangible Amortization Expenses | 39 | 27 | Net Acquisition-Related Intangible Amortization Expenses | 39 | 28 | 78 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-Tax Restructuring | Pre-Tax Restructuring | $ | — | $ | 2 | Pre-Tax Restructuring | $ | 31 | $ | — | $ | 31 | $ | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax on Restructuring | Tax on Restructuring | — | — | Tax on Restructuring | (7) | — | (7) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Restructuring | Net Restructuring | — | 2 | Net Restructuring | 24 | — | 24 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FX losses resulting from the Company no longer conducting commercial operations in Russia | FX losses resulting from the Company no longer conducting commercial operations in Russia | 20 | — | 20 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Net Income | Adjusted Net Income | $ | 537 | $ | 765 | Adjusted Net Income | $ | 410 | $ | 605 | $ | 947 | $ | 1,370 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share attributable to Moody's common shareholders | Diluted earnings per share attributable to Moody's common shareholders | $ | 2.68 | $ | 3.90 | Diluted earnings per share attributable to Moody's common shareholders | $ | 1.77 | $ | 3.07 | $ | 4.45 | $ | 6.98 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-Tax Acquisition-Related Intangible Amortization Expenses | Pre-Tax Acquisition-Related Intangible Amortization Expenses | $ | 0.27 | $ | 0.19 | Pre-Tax Acquisition-Related Intangible Amortization Expenses | $ | 0.28 | $ | 0.19 | $ | 0.55 | $ | 0.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax on Acquisition-Related Intangible Amortization Expenses | Tax on Acquisition-Related Intangible Amortization Expenses | (0.06) | (0.04) | Tax on Acquisition-Related Intangible Amortization Expenses | (0.07) | (0.04) | (0.13) | (0.09) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Acquisition-Related Intangible Amortization Expenses | Net Acquisition-Related Intangible Amortization Expenses | 0.21 | 0.15 | Net Acquisition-Related Intangible Amortization Expenses | 0.21 | 0.15 | 0.42 | 0.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-Tax Restructuring | Pre-Tax Restructuring | $ | — | $ | 0.01 | Pre-Tax Restructuring | $ | 0.17 | $ | — | $ | 0.17 | $ | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax on Restructuring | Tax on Restructuring | — | — | Tax on Restructuring | (0.04) | — | (0.04) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Restructuring | Net Restructuring | — | 0.01 | Net Restructuring | 0.13 | — | 0.13 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FX losses resulting from the Company no longer conducting commercial operations in Russia | FX losses resulting from the Company no longer conducting commercial operations in Russia | 0.11 | — | 0.11 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Diluted EPS | Adjusted Diluted EPS | $ | 2.89 | $ | 4.06 | Adjusted Diluted EPS | $ | 2.22 | $ | 3.22 | $ | 5.11 | $ | 7.28 |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net cash flows provided by operating activities | Net cash flows provided by operating activities | $ | 470 | $ | 676 | Net cash flows provided by operating activities | $ | 761 | $ | 1,270 | ||||||||||||
Capital additions | Capital additions | (59) | (14) | Capital additions | (133) | (44) | ||||||||||||||||
Free Cash Flow | Free Cash Flow | $ | 411 | $ | 662 | Free Cash Flow | $ | 628 | $ | 1,226 | ||||||||||||
Net cash flows used in investing activities | Net cash flows used in investing activities | $ | (161) | $ | (194) | Net cash flows used in investing activities | $ | (172) | $ | (251) | ||||||||||||
Net cash flows used in financing activities | Net cash flows used in financing activities | $ | (352) | $ | (290) | Net cash flows used in financing activities | $ | (712) | $ | (792) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
Amounts in millions | 2022 | 2021 | Change | Growth | 2022 | 2021 | Change | Growth | ||||||||||||||||||||||||||||||||||||||||||
MA revenue | $ | 675 | $ | 573 | $ | 102 | 18% | $ | 1,370 | $ | 1,137 | $ | 233 | 20% | ||||||||||||||||||||||||||||||||||||
FX impact | 27 | — | 27 | 40 | — | 40 | ||||||||||||||||||||||||||||||||||||||||||||
Inorganic revenue from acquisitions | (83) | — | (83) | (162) | — | (162) | ||||||||||||||||||||||||||||||||||||||||||||
Organic constant currency MA revenue | $ | 619 | $ | 573 | $ | 46 | 8% | $ | 1,248 | $ | 1,137 | $ | 111 | 10% | ||||||||||||||||||||||||||||||||||||
Decision Solutions revenue | $ | 312 | $ | 222 | $ | 90 | 41% | $ | 646 | $ | 447 | $ | 199 | 45% | ||||||||||||||||||||||||||||||||||||
FX impact | 11 | — | 11 | 16 | — | 16 | ||||||||||||||||||||||||||||||||||||||||||||
Inorganic revenue from acquisitions | (83) | — | (83) | (160) | — | (160) | ||||||||||||||||||||||||||||||||||||||||||||
Organic constant currency Decision Solutions revenue | $ | 240 | $ | 222 | $ | 18 | 8% | $ | 502 | $ | 447 | $ | 55 | 12% | ||||||||||||||||||||||||||||||||||||
Research and Insights revenue | $ | 185 | $ | 175 | $ | 10 | 6% | $ | 368 | $ | 346 | $ | 22 | 6% | ||||||||||||||||||||||||||||||||||||
FX impact | 4 | — | 4 | 5 | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||
Constant currency Research and Insights revenue | $ | 189 | $ | 175 | $ | 14 | 8% | $ | 373 | $ | 346 | $ | 27 | 8% | ||||||||||||||||||||||||||||||||||||
Data and Information revenue | $ | 178 | $ | 176 | $ | 2 | 1% | $ | 356 | $ | 344 | $ | 12 | 3% | ||||||||||||||||||||||||||||||||||||
FX impact | 12 | — | 12 | 19 | — | 19 | ||||||||||||||||||||||||||||||||||||||||||||
Inorganic revenue from acquisitions | — | — | — | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||
Organic constant currency Data and Information revenue | $ | 190 | $ | 176 | $ | 14 | 8% | $ | 373 | $ | 344 | $ | 29 | 8% | ||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
Amounts in millions | 2022 | 2021 | Change | Growth | 2022 | 2021 | Change | Growth | ||||||||||||||||||||||||||||||||||||||||||
MCO revenue | $ | 1,381 | $ | 1,553 | $ | (172) | (11)% | $ | 2,903 | $ | 3,153 | $ | (250) | (8)% | ||||||||||||||||||||||||||||||||||||
FX impact | 47 | ��� | 47 | 75 | — | 75 | ||||||||||||||||||||||||||||||||||||||||||||
Inorganic recurring revenue from acquisitions | (83) | — | (83) | (162) | — | (162) | ||||||||||||||||||||||||||||||||||||||||||||
Organic constant currency MCO revenue | $ | 1,345 | $ | 1,553 | $ | (208) | (13)% | $ | 2,816 | $ | 3,153 | $ | (337) | (11)% | ||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Amounts in millions | 2022 | 2021 | Change | Growth | |||||||||||||||||||||||||||||||||||||||||||
MA revenue | $ | 695 | $ | 564 | $ | 131 | 23% | ||||||||||||||||||||||||||||||||||||||||
Inorganic revenue from acquisitions | (79) | — | (79) | ||||||||||||||||||||||||||||||||||||||||||||
Organic MA revenue | $ | 616 | $ | 564 | $ | 52 | 9% | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Amounts in millions | 2022 | 2021 | Change | Growth | |||||||||||||||||||||||||||||||||||||||||||
Decision Solutions revenue | $ | 334 | $ | 225 | $ | 109 | 48% | ||||||||||||||||||||||||||||||||||||||||
Inorganic revenue from acquisitions | (77) | — | (77) | ||||||||||||||||||||||||||||||||||||||||||||
Organic Decision Solutions revenue | $ | 257 | $ | 225 | $ | 32 | 14% | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Amounts in millions | 2022 | 2021 | Change | Growth | |||||||||||||||||||||||||||||||||||||||||||
Data and Information revenue | $ | 178 | $ | 168 | $ | 10 | 6% | ||||||||||||||||||||||||||||||||||||||||
Inorganic revenue from acquisitions | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||
Organic Data and Information revenue | $ | 176 | $ | 168 | $ | 8 | 5% | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Amounts in millions | 2022 | 2021 | Change | Growth | |||||||||||||||||||||||||||||||||||||||||||
MA recurring revenue | $ | 651 | $ | 521 | $ | 130 | 25% | ||||||||||||||||||||||||||||||||||||||||
Inorganic recurring revenue from acquisitions | (75) | — | (75) | ||||||||||||||||||||||||||||||||||||||||||||
Organic MA recurring revenue | $ | 576 | $ | 521 | $ | 55 | 11% | ||||||||||||||||||||||||||||||||||||||||
Amounts in millions | Amounts in millions | March 31, 2022 | March 31, 2021 | Change | Growth | Amounts in millions | June 30, 2022 | June 30, 2021 | Change | Growth | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MA ARR | MA ARR | $ | 2,573 | $ | 2,063 | $ | 510 | 25% | MA ARR | $ | 2,608 | $ | 2,084 | $ | 524 | 25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organic MA ARR | Organic MA ARR | $ | 2,246 | $ | 2,063 | $ | 183 | 9% | Organic MA ARR | $ | 2,276 | $ | 2,084 | $ | 192 | 9% |
Foreign Currency Forwards (1) | Impact on fair value of contract | |||||||||||||
Sell | Buy | |||||||||||||
U.S. dollar | British pound | $ | ||||||||||||
U.S. dollar | Canadian dollar | $ | ||||||||||||
U.S. dollar | euro | $ | ||||||||||||
U.S. dollar | Japanese yen | $2 million unfavorable impact | ||||||||||||
U.S. dollar | Singapore dollar | $ | ||||||||||||
U.S. dollar | Indian rupee | $2 million unfavorable impact | ||||||||||||
$ |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet be Purchased Under the Program(2)(3) | ||||||||||||||||||||||
January 1- 31 | 429,410 | $ | 351.71 | 428,827 | $ | 1,680 | million | |||||||||||||||||||
February 1- 28 | 22,405 | $ | 328.72 | 21,801 | $ | 1,673 | million | |||||||||||||||||||
March 1- 31 | 1,494,127 | $ | 323.64 | 1,242,120 | $ | 1,173 | million | |||||||||||||||||||
Total | 1,945,942 | $ | 330.82 | 1,692,748 |
Period | Total Number of Shares Purchased (1)(3) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program(3) | Approximate Dollar Value of Shares That May Yet be Purchased Under the Program(2)(3) | ||||||||||||||||||||||
April 1- 30 | 1,650 | $ | — | — | $ | 1,173 | million | |||||||||||||||||||
May 1- 31 | 325,527 | $ | 291.35 | 321,800 | $ | 1,079 | million | |||||||||||||||||||
June 1- 30 | 433,600 | $ | 274.75 | 433,600 | $ | 960 | million | |||||||||||||||||||
Total | 760,777 | $ | 281.82 | 755,400 |
Exhibit No | Description | |||||||
3 | ARTICLES OF INCORPORATION AND BY-LAWS | |||||||
.1 | ||||||||
.2 | ||||||||
31 | CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 | |||||||
.1* | ||||||||
.2* | ||||||||
32 | CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 | |||||||
.1* | ||||||||
.2* | ||||||||
101.INS* | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF* | Inline XBRL Definitions Linkbase Document | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||
* Filed herewith |
MOODY’S CORPORATION | ||||||||
By: | / S / MARK KAYE | |||||||
Mark Kaye | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(principal financial officer) | ||||||||
By: | / S / CAROLINE SULLIVAN | |||||||
Caroline Sullivan | ||||||||
Chief Accounting Officer and Corporate Controller | ||||||||
(principal accounting officer) | ||||||||
Date: |