Cover Page
Cover Page shares in Millions | 3 Months Ended |
Mar. 31, 2022shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Entity File Number | 1-14037 |
Entity Registrant Name | Moody’s Corporation |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-3998945 |
Entity Address, Address Line One | 7 World Trade Center at 250 Greenwich Street |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10007 |
City Area Code | (212) |
Local Phone Number | 553-0300 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 184.5 |
Entity Central Index Key | 0001059556 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Common Stock, par value $0.01 per share | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | MCO |
Security Exchange Name | NYSE |
1.75% Senior Notes Due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.75% Senior Notes Due 2027 |
Trading Symbol | MCO 27 |
Security Exchange Name | NYSE |
0.950% Senior Notes Due 2030 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.950% Senior Notes Due 2030 |
Trading Symbol | MCO 30 |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 1,522 | $ 1,600 |
Expenses | ||
Operating | 417 | 393 |
Selling, general and administrative | 371 | 293 |
Depreciation and amortization | 78 | 59 |
Restructuring | 0 | 2 |
Total expenses | 866 | 747 |
Operating income | 656 | 853 |
Non-operating (expense) income, net | ||
Interest expense, net | (53) | (7) |
Other non-operating income, net | 6 | 16 |
Total non-operating (expense) income, net | (47) | 9 |
Income before provision for income taxes | 609 | 862 |
Provision for income taxes | 111 | 126 |
Net income attributable to Moody's | $ 498 | $ 736 |
Earnings per share attributable to Moody's common shareholders | ||
Basic (in usd per share) | $ 2.69 | $ 3.93 |
Diluted (in usd per share) | $ 2.68 | $ 3.90 |
Weighted average number of shares outstanding | ||
Basic (in shares) | 185.1 | 187.2 |
Diluted (in shares) | 186.1 | 188.6 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 498 | $ 736 |
Other Comprehensive Income (Loss): | ||
Foreign currency translation adjustment - Pre Tax | (108) | (147) |
Foreign currency translation adjustments - Tax | 1 | 6 |
Foreign currency translation adjustments - Net of Tax | (107) | (141) |
Net gains on net investment hedges - Pre Tax | 64 | 175 |
Net gains on net investment hedges - Tax | (17) | (42) |
Net gains on net investment hedges - Net of Tax | 47 | 133 |
Net investment hedges - reclassification of gains included in net income - Pre Tax | 0 | (1) |
Net investment hedges - reclassification of gains included in net income - Tax | 0 | 0 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | (1) |
Cash Flow Hedges: | ||
Reclassification of losses included in net income - Pre Tax | 1 | 1 |
Reclassification of losses included in net income - Tax | 0 | 0 |
Reclassification of losses included in net income - Net of Tax | 1 | 1 |
Pension and Other Retirement Benefits: | ||
Amortization of actuarial losses and prior service costs included in net income - Pre Tax | 0 | 3 |
Amortization of actuarial losses and prior service costs included in net income - Tax | 0 | (1) |
Amortization of actuarial losses and prior service costs included in net income - Net of Tax | 0 | 2 |
Net actuarial losses and prior service costs - Pre Tax | (3) | 0 |
Net actuarial losses and prior service costs - Tax | 1 | 0 |
Net actuarial losses and prior service costs - Net of Tax | (2) | 0 |
Total other comprehensive (loss) income - Pre Tax | (46) | 31 |
Total other comprehensive (loss) income - Tax | (15) | (37) |
Total other comprehensive (loss) income - Net of Tax | (61) | (6) |
Comprehensive income | 437 | 730 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 2 |
Comprehensive Income Attributable to Moody's | $ 437 | $ 728 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,750 | $ 1,811 |
Short-term investments | 103 | 91 |
Accounts receivable, net of allowance for credit losses of $44 in 2022 and $32 in 2021 | 1,824 | 1,720 |
Other current assets | 385 | 389 |
Total current assets | 4,062 | 4,011 |
Property and equipment, net of accumulated depreciation of $1,035 in 2022 and $1,010 in 2021 | 381 | 347 |
Operating lease right-of-use assets | 427 | 438 |
Goodwill | 6,039 | 5,999 |
Intangible assets, net | 2,422 | 2,467 |
Deferred tax assets, net | 347 | 384 |
Other assets | 1,061 | 1,034 |
Total assets | 14,739 | 14,680 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 856 | 1,142 |
Current portion of operating lease liabilities | 106 | 105 |
Current portion of long-term debt | 501 | 0 |
Deferred revenue | 1,525 | 1,249 |
Total current liabilities | 2,988 | 2,496 |
Non-current portion of deferred revenue | 86 | 86 |
Long-term debt | 7,285 | 7,413 |
Deferred tax liabilities, net | 498 | 488 |
Uncertain tax positions | 368 | 388 |
Operating lease liabilities | 440 | 455 |
Other liabilities | 492 | 438 |
Total liabilities | 12,157 | 11,764 |
Contingencies | ||
Shareholders' equity: | ||
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Capital surplus | 826 | 885 |
Retained earnings | 13,132 | 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) |
Accumulated other comprehensive loss | (471) | (410) |
Total Moody's shareholders' equity | 2,394 | 2,727 |
Noncontrolling interests | 188 | 189 |
Total shareholders' equity | 2,582 | 2,916 |
Total liabilities, noncontrolling interests and shareholders' equity | 14,739 | 14,680 |
Series Common Stock | ||
Shareholders' equity: | ||
Common stock | 0 | 0 |
Non Series Common Stock | ||
Shareholders' equity: | ||
Common stock | $ 3 | $ 3 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts receivable, allowances | $ 44 | $ 32 |
Accumulated depreciation, property and equipment | $ 1,035 | $ 1,010 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 158,363,386 | 157,262,484 |
Series Common Stock | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Non Series Common Stock | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 342,902,272 | 342,902,272 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net Income | $ 498 | $ 736 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 78 | 59 |
Stock-based compensation | 46 | 45 |
Deferred income taxes | 30 | 44 |
Changes in assets and liabilities: | ||
Accounts receivable | (117) | (71) |
Other current assets | (11) | 67 |
Other assets | (21) | (27) |
Lease obligations | (2) | (3) |
Accounts payable and accrued liabilities | (296) | (206) |
Deferred revenue | 290 | 146 |
Unrecognized tax benefits and other non-current tax liabilities | (18) | (78) |
Other liabilities | (7) | (36) |
Net cash provided by operating activities | 470 | 676 |
Cash flows from investing activities | ||
Capital additions | (59) | (14) |
Purchases of investments | (46) | (65) |
Sales and maturities of investments | 27 | 45 |
Cash paid for acquisitions, net of cash acquired | (83) | (138) |
Receipts from settlements of net investment hedges | 0 | 1 |
Payments for settlements of net investment hedges | 0 | (23) |
Net cash used in investing activities | (161) | (194) |
Cash flows from financing activities | ||
Issuance of notes | 491 | 0 |
Proceeds from stock-based compensation plans | 8 | 9 |
Repurchase of shares related to stock-based compensation | (58) | (51) |
Treasury shares | (560) | (132) |
Cash paid for ASR contract relating to shares retained by counterparty until final settlement | (98) | 0 |
Dividends | (130) | (116) |
Debt issuance costs and related fees | (5) | 0 |
Net cash used in financing activities | (352) | (290) |
Effect of exchange rate changes on cash and cash equivalents | (18) | (20) |
(Decrease) increase in cash and cash equivalents | (61) | 172 |
Cash and cash equivalents, beginning of period | 1,811 | 2,597 |
Cash and cash equivalents, end of period | $ 1,750 | $ 2,769 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions | Total | Total Moody's Shareholders' Equity | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Non- Controlling Interests | |
Beginning Balance (in shares) at Dec. 31, 2020 | 342.9 | 155.8 | |||||||
Beginning Balance at Dec. 31, 2020 | $ 1,763 | $ 1,569 | $ 3 | $ 735 | $ 11,011 | $ (9,748) | $ (432) | $ 194 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 736 | 736 | 736 | ||||||
Dividends | (116) | (115) | (115) | (1) | |||||
Stock-based compensation | 45 | 45 | 45 | ||||||
Shares issued for stock-based compensation plans at average cost, net | (65) | (65) | (41) | $ (24) | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 0.6 | ||||||||
Treasury shares repurchased (in shares) | (0.5) | ||||||||
Treasury shares repurchased | (132) | (132) | $ (132) | ||||||
Accelerated Share Repurchase pending final settlement | 0 | ||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax) | (9) | (11) | (11) | 2 | |||||
Net actuarial gains and prior service cost (net of tax) | 0 | ||||||||
Amortization of prior service costs and actuarial losses | 2 | 2 | 2 | ||||||
Net realized and unrealized gain on cash flow hedges (net of tax) | 1 | 1 | 1 | ||||||
Ending Balance (in shares) at Mar. 31, 2021 | 342.9 | 155.7 | |||||||
Ending Balance at Mar. 31, 2021 | 2,225 | 2,030 | $ 3 | 739 | 11,632 | $ (9,904) | (440) | 195 | |
Beginning Balance (in shares) at Dec. 31, 2021 | 342.9 | 157.3 | |||||||
Beginning Balance at Dec. 31, 2021 | 2,916 | 2,727 | $ 3 | 885 | 12,762 | $ (10,513) | (410) | 189 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 498 | 498 | 498 | ||||||
Dividends | (129) | (128) | (128) | (1) | |||||
Stock-based compensation | 46 | 46 | 46 | ||||||
Shares issued for stock-based compensation plans at average cost, net | (74) | (74) | (42) | $ (32) | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 0.5 | ||||||||
Shares issued as consideration to acquire kompany | [1] | 44 | 44 | 35 | $ 9 | ||||
Shares issued as consideration to acquire kompany (shares) | [1] | 0.1 | |||||||
Treasury shares repurchased (in shares) | (1.7) | ||||||||
Treasury shares repurchased | (560) | (560) | $ (560) | ||||||
Accelerated Share Repurchase pending final settlement | (98) | (98) | (98) | ||||||
Currency translation adjustment, net of net investment hedge activity (net of tax) | (60) | (60) | (60) | 0 | |||||
Net actuarial gains and prior service cost (net of tax) | (2) | (2) | (2) | ||||||
Amortization of prior service costs and actuarial losses | 0 | ||||||||
Net realized and unrealized gain on cash flow hedges (net of tax) | 1 | 1 | 1 | ||||||
Ending Balance (in shares) at Mar. 31, 2022 | 342.9 | 158.4 | |||||||
Ending Balance at Mar. 31, 2022 | $ 2,582 | $ 2,394 | $ 3 | $ 826 | $ 13,132 | $ (11,096) | $ (471) | $ 188 | |
[1] | Represents a non-cash investing activity relating to the issuance of common stock to fund a portion of the purchase price for kompany. |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends (in USD per share) | $ 0.70 | $ 0.62 |
Currency translation adjustment, net of net investment hedge activity, tax expense (benefit) | $ 16 | $ 36 |
Net actuarial gains and prior service cost, tax expense (benefit) | (1) | 0 |
Amortization of prior service costs and actuarial losses, tax expense (benefit) | $ 0 | $ 1 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Moody’s is a global integrated risk assessment firm that empowers organizations and investors to make better decisions. Moody’s reports in two reportable segments: MIS and MA. MIS publishes credit ratings and provides assessment services on a wide range of debt obligations, programs and facilities, and the entities that issue such obligations in markets worldwide, including various corporate, financial institution and governmental obligations, and structured finance securities. MA is a global provider of: i) data and information; ii) research and insights; and iii) decision solutions, which help companies make better and faster decisions. MA leverages its industry expertise across multiple risks such as credit, market, financial crime, supply chain, catastrophe and climate to deliver integrated risk assessment solutions that enable business leaders to identify, measure and manage the implications of interrelated risks and opportunities. These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the Company’s consolidated financial statements and related notes in the Company’s 2021 annual report on Form 10-K filed with the SEC on February 22, 2022. The results of interim periods are not necessarily indicative of results for the full year or any subsequent period. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the periods presented have been included. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Certain reclassifications have been made to prior period amounts to conform to the current presentation. Adoption of New Accounting Standards On January 1, 2022, the Company adopted ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU No. 2021-08"). This ASU requires companies to apply the definition of a performance obligation under ASC Topic 606 to recognize and measure contract assets and contract liabilities (i.e., deferred revenue) relating to contracts with customers that are acquired in a business combination. The adoption of this ASU will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. Accordingly, upon adoption, the Company will no longer be required to adjust acquired deferred revenue to fair value in business combination transactions. The amendments in ASU No. 2021-08 are applied prospectively and will be applied to all business combination transactions completed subsequent to January 1, 2022. COVID-19 The COVID-19 pandemic has not had a material adverse impact on the Company's reported results to date and is currently not expected to have a material adverse impact on its near-term outlook. However, Moody's is unable to predict the longer-term impact that the pandemic may have on its business, future results of operations, financial position or cash flows due to numerous uncertainties. Russia/Ukraine Conflict The Company is closely monitoring the impact of the ongoing Russia/Ukraine conflict on all aspects of its business. In response to the conflict, in the first quarter of 2022, the Company has suspended commercial operations in Russia for both MIS and MA and is complying with all applicable regulatory restrictions set forth by the jurisdictions in which Moody's operates. Furthermore, the Company also has withdrawn MIS credit ratings on Russian entities. While Moody's Russian operations and net assets are not material, broader global market volatility relating to uncertainties surrounding the conflict has adversely impacted rated issuance volumes in the first quarter of 2022. The Company is unable to predict either the near-term or longer-term impact that the conflict may have on its financial position and operating results due to numerous uncertainties regarding the severity and duration of the conflict and its broader potential macroeconomic impact. Reclassification of Previously Reported Revenue by LOB In the first quarter of 2022, the Company realigned its revenue by LOB reporting structure for the MA operating segment to enhance insight and transparency into this business. As of January 1, 2022, the MA LOBs have been realigned from RD&A and ERS to: – Decision Solutions (DS) - 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; – Research & Insights (R&I) - provides models, scores, expert insights and commentary. This LOB includes: credit research; credit models and analytics; and economics data and models; and – Data & Information (D&I) - provides vast data sets on economies, companies, commercial properties and financial securities via data feeds and data applications products. |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Revenue by Category The following table presents the Company’s revenues disaggregated by LOB: Three Months Ended 2022 2021 MIS: Corporate Finance (CFG) Investment-grade $ 114 $ 134 High-yield 39 141 Bank loans 113 180 Other accounts (1) 151 150 Total CFG 417 605 Structured Finance (SFG) Asset-backed securities 32 26 RMBS 35 27 CMBS 38 24 Structured credit 39 38 Other accounts — 1 Total SFG 144 116 Financial Institutions (FIG) Banking 89 109 Insurance 34 43 Managed investments 5 8 Other accounts 3 2 Total FIG 131 162 Public, Project and Infrastructure Finance (PPIF) Public finance / sovereign 58 67 Project and infrastructure 65 76 Total PPIF 123 143 Total ratings revenue 815 1,026 MIS Other 12 10 Total external revenue 827 1,036 Intersegment revenue 43 40 Total MIS 870 1,076 MA: Decision Solutions 334 225 Research and Insights 183 171 Data and Information 178 168 Total external revenue 695 564 Intersegment revenue 2 2 Total MA 697 566 Eliminations (45) (42) Total MCO $ 1,522 $ 1,600 (1) Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue. The following table presents the Company’s revenues disaggregated by LOB and geographic area: 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 The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region: Three Months Ended 2022 2021 MIS: U.S. $ 513 $ 647 Non-U.S.: EMEA 193 248 Asia-Pacific 74 97 Americas 47 44 Total Non-U.S. 314 389 Total MIS 827 1,036 MA: U.S. 349 238 Non-U.S.: EMEA 241 230 Asia-Pacific 61 59 Americas 44 37 Total Non-U.S. 346 326 Total MA 695 564 Total MCO $ 1,522 $ 1,600 The following tables summarize the split between transaction and recurring revenue. In the MIS segment, excluding MIS Other, transaction revenue represents the initial rating of a new debt issuance as well as other one-time fees while recurring revenue represents the 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. In MIS Other, transaction revenue represents revenue from professional services and recurring revenue represents subscription-based revenues. In the MA segment, recurring revenue represents subscription-based revenues and software maintenance revenue. Transaction revenue in MA represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, and training and certification services. 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 % (1) Revenue from software implementation services and risk management advisory projects, while classified by management as transactional revenue, is recognized over time under the Revenue Accounting Standard (please also refer to the following table). The following table presents the timing of revenue recognition: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 MIS MA Total MIS MA Total Revenue recognized at a point in time $ 529 $ 41 $ 570 $ 745 $ 29 $ 774 Revenue recognized over time 298 654 952 291 535 826 Total $ 827 $ 695 $ 1,522 $ 1,036 $ 564 $ 1,600 Unbilled receivables, deferred revenue and remaining performance obligations Unbilled receivables Certain MIS arrangements contain contractual terms whereby the customers are billed in arrears for annual monitoring services, requiring revenue to be accrued as an unbilled receivable as such services are provided. In addition, for certain MA arrangements, the timing of when the Company has the unconditional right to consideration and recognizes revenue occurs prior to invoicing the customer. The following table presents the Company's unbilled receivables, which are included within accounts receivable, net, at March 31, 2022 and December 31, 2021: As at March 31, 2022 As at December 31, 2021 MIS MA MIS MA Unbilled Receivables $ 416 $ 223 $ 386 $ 152 Deferred revenue The Company recognizes deferred revenue when a contract requires a customer to pay consideration to the Company in advance of when revenue related to that contract is recognized. This deferred revenue is relieved when the Company satisfies the related performance obligation and revenue is recognized. Significant changes in the deferred revenue balances during the three months ended March 31, 2022 and 2021 are as follows: 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 The increase in deferred revenue during both the three months ended March 31, 2022 and 2021 is primarily due to the significant portion of contract renewals that occur during the first quarter within both segments. Remaining performance obligations Remaining performance obligations in the MIS segment largely reflect deferred revenue related to monitoring fees for certain structured finance products, primarily CMBS, where the issuers can elect to pay the monitoring fees for the life of the security in advance. As of March 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $110 million. The Company expects to recognize into revenue approximately 20% of this balance within one year, approximately 50% of this balance between one to five years and the remaining amount thereafter. With respect to the remaining performance obligations for the MIS segment, the Company has applied a practical expedient set forth in ASC Topic 606 permitting the omission from the amounts stated above relating to unsatisfied performance obligations for contracts with an original expected length of one year or less. Remaining performance obligations in the MA segment include both amounts recorded as deferred revenue on the balance sheet as of March 31, 2022 as well as amounts not yet invoiced to customers as of March 31, 2022, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of March 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $3.1 billion. The Company expects to recognize into revenue approximately 60% of this balance within one year, approximately 25% of this balance between one to two years and the remaining amount thereafter. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations: Three Months Ended March 31, 2022 2021 Stock-based compensation cost $ 46 $ 45 Tax benefit $ 11 $ 11 During the first three months of 2022, the Company granted 0.1 million employee stock options, which had a weighted average grant date fair value of $84.15 per share. The Company also granted 0.5 million shares of restricted stock in the first three months of 2022, which had a weighted average grant date fair value of $325.99 per share. Both the employee stock options and restricted stock generally vest ratably over four years. Additionally, the Company granted 0.1 million shares of performance-based awards whereby the number of shares that ultimately vest are based on the achievement of certain non-market-based performance metrics of the Company over three years. The weighted average grant date fair value of these awards was $317.21 per share. The following weighted average assumptions were used in determining the fair value using the Black-Scholes option-pricing model for options granted in 2022: Expected dividend yield 0.86 % Expected stock volatility 27 % Risk-free interest rate 1.88 % Expected holding period 5.6 years Unrecognized stock-based compensation expense at March 31, 2022 was $27 million and $332 million for stock options and unvested restricted stock, respectively, which is expected to be recognized over a weighted average period of 2.3 years and 2.8 years, respectively. Additionally, there was $68 million of unrecognized stock-based compensation expense relating to the aforementioned non-market-based performance-based awards, which is expected to be recognized over a weighted average period of 2.1 years. The following table summarizes information relating to stock option exercises and restricted stock vesting: Three Months Ended 2022 2021 Exercise of stock options: Proceeds from stock option exercises $ 3 $ 6 Aggregate intrinsic value $ 4 $ 9 Tax benefit realized upon exercise $ 1 $ 2 Number of shares exercised (1) — 0.1 Vesting of restricted stock: Fair value of shares vested $ 166 $ 178 Tax benefit realized upon vesting $ 39 $ 41 Number of shares vested 0.5 0.6 Vesting of performance-based restricted stock: Fair value of shares vested $ 50 $ 29 Tax benefit realized upon vesting $ 12 $ 6 Number of shares vested 0.2 0.1 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Moody’s effective tax rate was 18.2% and 14.6% for the three months ended March 31, 2022 and 2021, respectively. The 3.6% increase in the ETR was 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. The Company’s tax expense differs from the tax computed by applying its estimated annual effective tax rate to the pre-tax earnings primarily due to Excess Tax Benefits from stock-based compensation of $19 million and net reductions in UTPs of $20 million related to the resolution of uncertain tax positions. The Company classifies interest related to UTPs in interest expense, net in its consolidated statements of operations. Penalties, if incurred, would be recognized in other non-operating (expense) income, net. The Company had a decrease in its UTPs of $20 million ($20 million, net of federal tax) during the first three months of 2022, which primarily related to the aforementioned resolution of uncertain tax positions. Moody’s Corporation and subsidiaries are subject to U.S. federal income tax as well as income tax in various state, local and foreign jurisdictions. The Company’s U.S. federal income tax returns for 2017 through 2019 are currently under examination and 2020 remains open to examination. The Company’s New York State tax returns for 2017 through 2018 are currently under examination and New York City tax returns for 2014 through 2017 are currently under examination. The Company’s U.K. tax returns for 2012 through 2019 remain open to examination. For ongoing audits, it is possible the balance of UTPs could decrease in the next twelve months as a result of the settlement of these audits, which might involve the payment of additional taxes, the adjustment of certain deferred taxes and/or the recognition of tax benefits. It is also possible that new issues might be raised by tax authorities which could necessitate increases to the balance of UTPs. As the Company is unable to predict the timing or outcome of these audits, it is therefore unable to estimate the amount of changes to the balance of UTPs at this time. However, the Company believes that it has adequately provided for its financial exposure relating to all open tax years by tax jurisdiction in accordance with the applicable provisions of Topic 740 of the ASC regarding UTPs. The following table shows the amount the Company paid for income taxes: Three Months Ended March 31, 2022 2021 Income taxes paid $ 70 $ 68 |
RECONCILIATION OF WEIGHTED AVER
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING | RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING Below is a reconciliation of basic to diluted shares outstanding: Three Months Ended March 31, 2022 2021 Basic 185.1 187.2 Dilutive effect of shares issuable under stock-based compensation plans 1.0 1.4 Diluted 186.1 188.6 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 The calculation of diluted EPS requires certain assumptions regarding the use of both cash proceeds and assumed proceeds that would be received upon the exercise of stock options and vesting of restricted stock outstanding as of March 31, 2022 and 2021. |
ACCELERATED SHARE REPURCHASE PR
ACCELERATED SHARE REPURCHASE PROGRAM | 3 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
ACCELERATED SHARE REPURCHASE PROGRAM | ACCELERATED SHARE REPURCHASE PROGRAM On March 1, 2022, the Company entered into an ASR agreement with a financial institution counterparty to repurchase $500 million of its outstanding common stock. The Company paid $500 million to the counterparty and received an initial delivery of 1.2 million shares of its common stock. Final settlement of the ASR agreement was completed in April 2022 and the Company received delivery of an additional 0.3 million shares of the Company’s common stock. In total, the Company repurchased 1.5 million shares of the Company’s common stock during the term of the ASR Agreement, based on the volume-weighted average price (net of discount) of $324.20 per share over the duration of the program. The initial share repurchase and final share settlement were recorded as a reduction to shareholders’ equity. |
CASH EQUIVALENTS AND INVESTMENT
CASH EQUIVALENTS AND INVESTMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
CASH EQUIVALENTS AND INVESTMENTS | CASH EQUIVALENTS AND INVESTMENTS The table below provides additional information on the Company’s cash equivalents and investments: As of March 31, 2022 Balance sheet location Cost Gains/(Losses) Fair Value Cash and cash equivalents Short-term Other Certificates of deposit and money market deposit accounts (1) $ 694 $ — $ 694 $ 582 $ 103 $ 9 Mutual funds $ 62 $ 2 $ 64 $ — $ — $ 64 As of December 31, 2021 Balance sheet location Cost Gains/(Losses) Fair Value Cash and cash Short-term Other Certificates of deposit and money market deposit accounts (1) $ 691 $ — $ 691 $ 584 $ 91 $ 16 Mutual funds $ 65 $ 8 $ 73 $ — $ — $ 73 (1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one month to 12 months at both March 31, 2022 and December 31, 2021. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 months to 26 months at March 31, 2022 and 13 months to 29 months at December 31, 2021. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents. In addition, the Company invests in Corporate-Owned Life Insurance (COLI). As of March 31, 2022 and December 31, 2021, the contract value of the COLI was $49 million and $37 million, respectively. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS The business combinations described below are accounted for using the acquisition method of accounting whereby assets acquired and liabilities assumed were recognized at fair value or other values set forth in U.S. GAAP on the date of the transaction. Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded to goodwill. Goodwill typically results through expected synergies from combining operations of an acquiree and an acquirer, anticipated new customer acquisition and products, as well as from intangible assets that do not qualify for separate recognition. kompany In February 2022, the Company acquired 100% of kompany, a Vienna, Austria-based platform for business verification and Know Your Customer (KYC) technology solutions. The acquisition complements Moody’s technology, data, and analytical capabilities, and enhances its customer solutions for KYC, anti-money laundering, compliance, and counterparty risk. The purchase price was not material and the near term impact to the Company's financial statements is not expected to be material. RMS On September 15, 2021, the Company acquired 100% of RMS, a global provider of climate and natural disaster risk modeling and analytics. The cash payment was funded with new debt financing and a combination of U.S. and offshore cash on hand. The acquisition will expand Moody’s insurance data and analytics business and accelerate the development of the Company’s global integrated risk capabilities to address the next generation of risk assessment. The table below details the total consideration relating to the acquisition: Cash paid at closing $ 1,922 Replacement equity compensation awards 5 Total consideration $ 1,927 Shown below is the preliminary purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: 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 The Company has performed a preliminary valuation analysis of the fair market value of assets and liabilities of the RMS business. The final purchase price allocation will be determined when the Company has completed and fully reviewed all information necessary to finalize the fair value of the acquired assets and liabilities, including deferred revenue. The final allocation could differ materially from the preliminary allocation. The final allocation may include changes in allocations to acquired intangible assets (including estimated useful lives of these assets) as well as goodwill and other changes to assets and liabilities including reserves for UTPs and deferred tax liabilities. Goodwill The goodwill recognized as a result of this acquisition includes, among other things, the value of combining the complementary product portfolios of Moody's and RMS, which is expected to extend the Company's reach into new market segments. The goodwill also includes the combined company's ability to accelerate technology innovations into new product adjacencies (leveraging RMS's team of data scientists, modelers and software engineers) as well as combining RMS's products with Moody’s core data and analytics offerings to provide holistic integrated risk solutions. Goodwill, of which $1,286 million and $90 million has been assigned to the MA and MIS segments, respectively, is not deductible for tax purposes. The amount of goodwill allocated to the MIS segment relates to the integration of certain of RMS's models/processes into the Company's ESG solutions offerings. Other assets in the table above includes an indemnification asset of $95 million related to uncertain tax positions assumed in the transaction, for which the Company expects to be indemnified by the sellers in the event of an unfavorable outcome. Transaction costs Transaction costs incurred in the year ended December 31, 2021 directly related to the RMS acquisition were $22 million and were recorded in SG&A expenses in the statement of operations. Supplementary Unaudited Pro Forma Information Supplemental information on an unaudited pro forma basis is presented below for the three months ended March 31, 2021 as if the acquisition of RMS occurred on January 1, 2020. The pro forma financial information is presented for comparative purposes only and is based on certain estimates and assumptions, which the Company believes to be reasonable but not necessarily indicative of future results of operations or the results that would have been reported if the acquisition had been completed at January 1, 2020. The unaudited pro forma information includes amortization of acquired intangible assets, based on the preliminary purchase price allocation and an estimate of useful lives reflected above, and incremental financing costs resulting from the acquisition, net of income tax, which was estimated using the weighted average statutory tax rates in effect in the jurisdiction for which the pro forma adjustment relates. Three Months Ended 2021 Pro forma Revenue $ 1,680 Pro forma Net Income attributable to Moody's $ 729 The unaudited pro forma results do not include any anticipated cost savings or other effects of the planned integration of RMS. Accordingly, the pro forma results above are not necessarily indicative of the results that would have been reported if the acquisition had occurred on the dates indicated, nor are the pro forma results indicative of results which may occur in the future. The RMS results included in the above have been converted to U.S. GAAP from IFRS as issued by the IASB and have been translated to USD at rates in effect for the periods presented. Cortera On March 19, 2021, the Company acquired 100% of Cortera, a provider of North American credit data and workflow solutions. The table below details the total consideration relating to the acquisition: Cash paid at closing $ 138 Additional consideration paid to sellers in 2021 (1) 1 Total consideration $ 139 (1) Represents additional consideration paid to the sellers following finalization of customary post-closing completion adjustments. Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: Current assets $ 7 Intangible assets: Database (10 year useful life) $ 38 Customer relationships (18 year useful life) 9 Product technology (8 year useful life) 9 Trade name (5 year useful life) 1 Total intangible assets (11 year weighted average useful life) 57 Goodwill 79 Deferred tax assets 16 Other assets 2 Liabilities: Accounts payable and accrued liabilities $ (1) Deferred revenue (4) Deferred tax liabilities (15) Other liabilities (2) Total liabilities (22) Net assets acquired $ 139 Current assets in the table above include acquired cash of $4 million and accounts receivable of approximately $2 million. Goodwill The goodwill recognized as a result of this acquisition includes, among other things, the value of combining the complementary risk assessment products of the Company and Cortera, which is expected to extend the Company’s reach to new and evolving market segments as well as cost savings synergies, expected new customer acquisitions and products. Goodwill, which has been assigned to the MA segment, is not deductible for tax purposes. Transaction costs Transaction costs directly related to the Cortera acquisition were not material. The Company has not presented pro forma combined results for the Cortera acquisition because the impact on previously reported statements of operations would not have been material. Additionally, the near term impact to the Company’s operations and cash flows is not material. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes. Derivatives and non-derivative instruments designated as accounting hedges: Fair Value Hedges Interest Rate Swaps The Company has entered into interest rate swaps to convert the fixed interest rate on certain of its long-term debt to a floating interest rate based on the 3-month LIBOR, 6-month LIBOR, and SOFR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the long-term debt, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the debt. The changes in the fair value of the swaps and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest expense, net in the Company’s consolidated statements of operations. The following table summarizes the Company’s interest rate swaps designated as fair value hedges: Notional Amount Hedged Item Nature of Swap As of March 31, 2022 As of December 31, 2021 Floating Interest Rate 2017 Senior Notes due 2023 Pay Floating/Receive Fixed $ 250 $ 250 3-month USD LIBOR 2017 Senior Notes due 2028 Pay Floating/Receive Fixed $ 500 $ 500 3-month USD LIBOR 2020 Senior Notes due 2025 Pay Floating/Receive Fixed $ 300 $ 300 6-month USD LIBOR 2014 Senior Notes due 2044 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 Total $ 2,050 $ 1,650 (1) Executed in the first quarter of 2022. Refer to Note 14 for information on the cumulative amount of fair value hedging adjustments included in the carrying amount of the above hedged items. The following table summarizes the impact to the statements of operations of the Company’s interest rate swaps designated as fair value hedges: 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, 2022 2021 Interest expense, net $ (53) $ (7) Descriptions Location on Consolidated Statements of Operations Net interest settlements and accruals on interest rate swaps Interest expense, net $ 6 $ 5 Fair value changes on interest rate swaps Interest expense, net $ (85) $ (24) Fair value changes on hedged debt Interest expense, net $ 85 $ 24 Net investment hedges Debt designated as net investment hedges The Company has designated €500 million of the 2015 Senior Notes Due 2027 and €750 million of the 2019 Senior Notes due 2030 as net investment hedges to mitigate FX exposure related to a portion of the Company’s euro net investment in certain foreign subsidiaries against changes in euro/USD exchange rates. These hedges are designated as accounting hedges under the applicable sections of ASC Topic 815 and will end upon the repayment of the notes in 2027 and 2030, respectively, unless terminated early at the discretion of the Company. Cross currency swaps designated as net investment hedges The Company enters into cross-currency swaps to mitigate FX exposure related to a portion of the Company’s euro net investment in certain foreign subsidiaries against changes in euro/USD exchange rates. The following table provides information on the cross-currency swaps designated as net investment hedges under ASC Topic 815: March 31, 2022 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 Pay Floating/Receive Floating 351 Based on 3-month EURIBOR 400 Based on SOFR Total € 2,439 $ 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 As of March 31, 2022 these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company: Years Ending December 31, 2023 € 442 2024 € 443 2026 € 450 2027 € 246 2028 € 507 2029 € 351 Total € 2,439 Cash Flow Hedges Interest Rate Forward Contracts In January 2020, the Company entered into $300 million notional amount treasury rate locks with an average locked-in U.S. 30-year Treasury rate of 2.0103%, which were designated as cash flow hedges and used to manage the Company’s interest rate risk during the period prior to an anticipated issuance of 30-year debt. The treasury lock interest rate forward contracts matured on April 30, 2020, resulting in a cumulative loss of $68 million, which was recognized in AOCL. The loss on the Treasury rate lock will be reclassified from AOCL to earnings in the same period that the hedged transaction (i.e. interest payments on the 3.25% 2020 Senior Notes, due 2050) impacts earnings. The following tables provide information on the gains/(losses) on the Company’s net investment and cash flow hedges: 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 Three Months Ended Three Months Ended 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 The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCL is as follows: Cumulative Gains/(Losses), net of tax March 31, 2022 December 31, 2021 Net investment hedges Cross currency swaps $ 43 $ 19 FX forwards 29 29 Long-term debt (4) (27) Total net investment hedges $ 68 $ 21 Cash flow hedges Interest rate contracts $ (48) $ (49) Cross currency swaps 2 2 Total cash flow hedges (46) (47) Total net gain (loss) in AOCL $ 22 $ (26) Derivatives not designated as accounting hedges: Foreign exchange forwards The Company also enters into foreign exchange forward contracts to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than a subsidiary’s functional currency. These forward contracts are not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating income, net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through July 2022. The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: March 31, 2022 December 31, 2021 Notional amount of currency pair: Sell Buy Sell Buy Contracts to sell USD for GBP $ 183 £ 135 $ 126 £ 92 Contracts to sell USD for Japanese yen $ 22 ¥ 2,500 $ 22 ¥ 2,500 Contracts to sell USD for Canadian dollars $ 106 C$ 133 $ 120 C$ 150 Contracts to sell USD for Singapore dollars $ 74 S$ 100 $ 67 S$ 90 Contracts to sell USD for euros $ 431 € 380 $ 364 € 315 Contracts to sell USD for Russian ruble $ 26 ₽ 2,400 $ 16 ₽ 1,200 Contracts to sell USD for Indian rupee $ 24 ₹ 1,800 $ 7 ₹ 500 Contracts to sell GBP for USD £ — $ — £ 172 $ 231 NOTE: € = euro, £ = British pound, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar, S$= Singapore dollars, ₽ = Russian ruble, ₹= Indian rupee The following table summarizes the impact to the consolidated statements of operations relating to the net losses on the Company’s derivatives which are not designated as hedging instruments: Derivatives not designated as accounting hedges Location on Consolidated Statements of Operations Three Months Ended 2022 2021 FX forwards Other non-operating income, net $ (19) $ (6) The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instrument as well as the carrying value of its non-derivative debt instruments designated and qualifying as net investment hedges: Derivative and Non-Derivative Instruments Balance Sheet Location March 31, 2022 December 31, 2021 Assets: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other current assets $ 9 $ — 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 Other assets — 13 Total derivatives designated as accounting hedges 77 66 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Other current assets 1 1 Total assets $ 78 $ 67 Liabilities: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other liabilities $ 6 $ 17 Interest rate swaps designated as fair value hedges Other liabilities 97 23 Total derivatives designated as accounting hedges 103 40 Non-derivatives designated as accounting hedges: Long-term debt designated as net investment hedge Long-term debt 1,391 1,421 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Accounts payable and accrued liabilities 22 12 Total liabilities $ 1,516 $ 1,473 |
GOODWILL AND OTHER ACQUIRED INT
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS The following table summarizes the activity in goodwill for the periods indicated: Three Months Ended March 31, 2022 MIS MA Consolidated Gross goodwill Accumulated impairment Net Gross goodwill Accumulated Net Gross goodwill Accumulated Net Balance at beginning $ 396 $ — $ 396 $ 5,615 $ (12) $ 5,603 $ 6,011 $ (12) $ 5,999 Additions/ adjustments (1) — — — 107 — 107 107 — 107 Foreign currency translation adjustments (1) — (1) (66) — (66) (67) — (67) Ending balance $ 395 $ — $ 395 $ 5,656 $ (12) $ 5,644 $ 6,051 $ (12) $ 6,039 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 $ 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 (5) — (5) (167) — (167) (172) — (172) Ending balance $ 396 $ — $ 396 $ 5,615 $ (12) $ 5,603 $ 6,011 $ (12) $ 5,999 (1) The 2022 additions/adjustments for the MA segment in the table above primarily relate to the acquisition of kompany. (2) The 2021 additions/adjustments for the MA segment in the table above relate to the acquisitions of Cortera, RMS, RealXData, Bogard, and PassFort. The 2021 additions/adjustments for the MIS segment relate to certain revenue synergies from the RMS acquisition that are expected to benefit the ESG solutions group within the MIS Other LOB. Acquired intangible assets and related amortization consisted of: March 31, December 31, Customer relationships $ 2,085 $ 2,101 Accumulated amortization (400) (381) Net customer relationships 1,685 1,720 Software/product technology 679 663 Accumulated amortization (233) (219) Net software/product technology 446 444 Database 179 179 Accumulated amortization (51) (46) Net database 128 133 Trade names 205 207 Accumulated amortization (51) (47) Net trade names 154 160 Other (1) 54 54 Accumulated amortization (45) (44) Net other 9 10 Total acquired intangible assets, net $ 2,422 $ 2,467 (1) Other intangible assets primarily consist of trade secrets, covenants not to compete, and acquired ratings methodologies and models. Amortization expense relating to acquired intangible assets is as follows: Three Months Ended 2022 2021 Amortization expense $ 51 $ 35 Estimated future amortization expense for acquired intangible assets subject to amortization is as follows: 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 Matters concerning the ICRA reporting unit ICRA has reported various matters relating to: (i) an adjudication order and fine imposed (and subsequently enhanced) by the Securities and Exchange Board of India (SEBI) in connection with credit ratings assigned to one of ICRA’s customers and the customer’s subsidiaries, which are being appealed by ICRA; (ii) the completion of internal examinations regarding various anonymous complaints, and actions taken by ICRA’s board based on the examinations’ findings; and (iii) a separate internal examination of certain allegations against two former senior ICRA officials. An unfavorable resolution of the aforementioned matters may negatively impact ICRA’s future operating results, which could result in an impairment of goodwill and amortizable intangible assets in future quarters. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The table below presents information about items that are carried at fair value at March 31, 2022 and December 31, 2021: Fair value Measurement as of March 31, 2022 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 78 $ — $ 78 Mutual funds 64 64 — Total $ 142 $ 64 $ 78 Liabilities: Derivatives (1) $ 125 $ — $ 125 Total $ 125 $ — $ 125 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 (1) Represents FX forward contracts, interest rate swaps and cross-currency swaps as more fully described in Note 9 to the condensed consolidated financial statements. The following are descriptions of the methodologies utilized by the Company to estimate the fair value of its derivative contracts, mutual funds and money market mutual funds: Derivatives: In determining the fair value of the derivative contracts in the table above, the Company utilizes industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using spot rates, forward points, currency volatilities, interest rates as well as the risk of non-performance of the Company and the counterparties with whom it has derivative contracts. The Company established strict counterparty credit guidelines and only enters into transactions with financial institutions that adhere to these guidelines. Accordingly, the risk of counterparty default is deemed to be minimal. Mutual funds: The mutual funds in the table above are deemed to be equity securities with readily determinable fair values with changes in the fair value recognized through net income under ASC Topic 321. The fair value of these instruments is determined using Level 1 inputs as defined in the ASC Topic 820. |
OTHER BALANCE SHEET AND STATEME
OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
Other Balance Sheet And Statement Of Operations Information [Abstract] | |
OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION | OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION The following tables contain additional detail related to certain balance sheet captions: March 31, 2022 December 31, 2021 Other current assets: Prepaid taxes $ 113 $ 112 Prepaid expenses 104 99 Capitalized costs to obtain and fulfill sales contracts 98 103 Derivative instruments designated as accounting hedges 11 — Other 59 75 Total other current assets $ 385 $ 389 Other assets: Investments in non-consolidated affiliates $ 450 $ 443 Deposits for real-estate leases 15 14 Indemnification assets related to acquisitions 108 106 Mutual funds and fixed deposits 73 89 Company owned life insurance (at contract value) 49 37 Costs to obtain sales contracts 152 138 Derivative instruments designated as accounting hedges 66 66 Pension and other retirement employee benefits 74 77 Other 74 64 Total other assets $ 1,061 $ 1,034 Accounts payable and accrued liabilities: Salaries and benefits $ 220 $ 211 Incentive compensation 72 324 Customer credits, advanced payments and advanced billings 116 100 Dividends 3 6 Professional service fees 69 75 Interest accrued on debt 42 85 Accounts payable 42 47 Income taxes 141 115 Pension and other retirement employee benefits 7 7 Accrued royalties 21 36 Foreign exchange forwards on certain assets and liabilities 22 12 Restructuring liability 2 4 Other 99 120 Total accounts payable and accrued liabilities $ 856 $ 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 Allowance for credit losses: During the quarter ended March 31, 2022, the Company increased its allowance for credit losses by $12 million. This increase was primarily due to reserves recorded for the Company's Russian-domiciled customers pursuant to the impacts of the Russia/Ukraine conflict, which is more fully described in Note 1. Investments in non-consolidated affiliates: The following table provides additional detail regarding Moody's investments in non-consolidated affiliates, as included in other assets in the consolidated balance sheet: March 31, 2022 December 31, 2021 Equity method investments (1) $ 128 $ 121 Investments measured using the measurement alternative (2) 318 318 Other 4 4 Total investments in non-consolidated affiliates $ 450 $ 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 (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 Moody's holds various investments accounted for under the equity method, the most significant of which is the Company's minority investment in CCXI. Moody's also holds various investments measured using the measurement alternative, the most significant of which is the Company's minority interest in BitSight. Earnings from non-consolidated affiliates, which are included within other non-operating income, net, are disclosed within the table below. Other Non-Operating Income: The following table summarizes the components of other non-operating income: Three Months Ended March 31, 2022 2021 FX gain (loss) $ — $ (2) Net periodic pension costs - other components 6 4 Income from investments in non-consolidated affiliates 2 8 Other (2) 6 Total $ 6 $ 16 |
COMPREHENSIVE INCOME AND ACCUMU
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS The following table provides details about the reclassifications out of AOCL: 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) The following tables show changes in AOCL by component (net of tax): Three Months Ended March 31, 2022 Gains/(Losses) 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) Other comprehensive income/(loss) before reclassifications (2) — (107) 47 (62) Amounts reclassified from AOCL — 1 — — 1 Other comprehensive income/(loss) (2) 1 (107) 47 (61) Balance March 31, 2022 $ (51) $ (46) $ (442) $ 68 $ (471) Three Months Ended March 31, 2021 Gains/(Losses) 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) Other comprehensive income/(loss) before reclassifications — — (143) 133 (10) Amounts reclassified from AOCL 2 1 — (1) 2 Other comprehensive income/(loss) 2 1 (143) 132 (8) Balance March 31, 2021 $ (116) $ (48) $ (188) $ (88) $ (440) |
INDEBTEDNESS
INDEBTEDNESS | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS The Company’s debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for certain debt as depicted in the table below, which is recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge the fair value of the note. The following table summarizes total indebtedness: March 31, 2022 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 (24) 3 (5) 574 1.75% 2015 Senior Notes, due 2027 556 — — (2) 554 2.625% 2017 Senior Notes, due 2023 500 2 — (1) 501 3.25% 2017 Senior Notes, due 2028 500 (16) (3) (2) 479 4.25% 2018 Senior Notes, due 2029 400 (12) (2) (2) 384 4.875% 2018 Senior Notes, due 2048 400 (25) (6) (4) 365 0.950% 2019 Senior Notes, due 2030 835 — (2) (5) 828 3.75% 2020 Senior Notes, due 2025 700 (20) (1) (3) 676 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) (5) 582 3.10% 2021 Senior Notes, due 2061 500 — (7) (5) 488 3.75% 2022 Senior Notes, due 2052 500 — (9) (5) 486 Total debt $ 7,991 $ (95) $ (57) $ (53) $ 7,786 Current portion (501) Total long-term debt $ 7,285 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 (1) The fair value of interest rate swaps in the table above represents the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt. Notes Payable In the first quarter of 2022, the Company issued the 2022 Senior Notes, due 2052. The key terms of this debt issuance are set forth in the table above. At March 31, 2022, the Company was in compliance with all covenants contained within all of the debt agreements. All the debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of March 31, 2022, there were no such cross defaults. The repayment schedule for the Company’s borrowings is as follows: 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,) $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2023 — — — 500 — — — — — — — — — — — $ 500 2024 500 — — — — — — — — — — — — — — $ 500 2025 — — — — — — — — 700 — — — — — — $ 700 2026 — — — — — — — — — — — — — — — $ — Thereafter — 600 556 — 500 400 400 835 — 300 500 600 600 500 500 $ 6,291 Total $ 500 $ 600 $ 556 $ 500 $ 500 $ 400 $ 400 $ 835 $ 700 $ 300 $ 500 $ 600 $ 600 $ 500 $ 500 $ 7,991 Interest expense, net The following table summarizes the components of interest as presented in the consolidated statements of operations and the cash paid for interest: Three Months Ended March 31, 2022 2021 Income $ 2 $ 3 Expense on borrowings (48) (41) Income (expense) on UTPs and other tax related liabilities (2) (3) 35 Net periodic pension costs - interest component (4) (4) Interest expense, net $ (53) $ (7) Interest paid (1) $ 78 $ 73 (1) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 9. (2) Income (expense) on UTPs and other tax related liabilities in 2021 includes a $40 million benefit relating to the reversal of tax-related interest accruals pursuant to the resolution of tax matters. The fair value and carrying value of the Company’s debt as of March 31, 2022 and December 31, 2021 are as follows: March 31, 2022 December 31, 2021 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 4.875% 2013 Senior Notes, due 2024 $ 498 $ 516 $ 498 $ 538 5.25% 2014 Senior Notes, due 2044 574 697 591 805 1.75% 2015 Senior Notes, due 2027 554 565 566 607 2.625% 2017 Senior Notes, due 2023 501 502 504 509 3.25% 2017 Senior Notes, due 2028 479 501 503 539 4.25% 2018 Senior Notes, due 2029 384 420 396 451 4.875% 2018 Senior Notes, due 2048 365 457 383 526 0.950% 2019 Senior Notes, due 2030 828 787 846 866 3.75% 2020 Senior Notes, due 2025 676 713 686 750 3.25% 2020 Senior Notes, due 2050 293 269 293 311 2.55% 2020 Senior Notes, due 2060 491 370 491 432 2.00% 2021 Senior Notes, due 2031 587 531 587 581 2.75% 2021 Senior Notes, due 2041 582 515 581 579 3.10% 2021 Senior Notes, due 2061 488 420 488 488 3.75% 2022 Senior Notes, due 2052 486 492 — — Total $ 7,786 $ 7,755 $ 7,413 $ 7,982 The fair value of the Company’s long-term debt is estimated based on quoted market prices for similar instruments. Accordingly, the inputs used to estimate the fair value of the Company’s long-term debt are classified as Level 2 inputs within the fair value hierarchy. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS The Company has operating leases, substantially all of which relate to the lease of office space. The Company’s leases which are classified as finance leases are not material to the consolidated financial statements. Certain of the Company’s leases include options to renew, with renewal terms that can extend the lease term from one year to 20 years at the Company’s discretion. The following table presents the components of the Company’s lease cost: Three Months Ended March 31, 2022 2021 Operating lease cost $ 27 $ 24 Sublease income (2) (1) Variable lease cost 5 5 Total lease cost $ 30 $ 28 The following tables present other information related to the Company’s operating leases: 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 % The following table presents a maturity analysis of the future minimum lease payments included within the Company’s operating lease liabilities at March 31, 2022: Year Ending December 31, Operating Leases 2022 (After March 31) $ 91 2023 119 2024 111 2025 96 2026 77 After 2026 99 Total lease payments (undiscounted) 593 Less: Interest 47 Present value of lease liabilities: $ 546 Lease liabilities - current $ 106 Lease liabilities - noncurrent $ 440 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Given the nature of the Company's activities, Moody’s and its subsidiaries are subject to legal and tax proceedings, governmental, regulatory and legislative investigations, subpoenas and other inquiries, and claims and litigation by governmental and private parties that are based on ratings assigned by MIS or that are otherwise incidental to the Company’s business. Moody’s and MIS also are subject to periodic reviews, inspections, examinations and investigations by regulators in the U.S. and other jurisdictions, any of which may result in claims, legal proceedings, assessments, fines, penalties or restrictions on business activities. Moody’s also is subject to ongoing tax audits as addressed in Note 4 to the condensed consolidated financial statements. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, the Company records liabilities in the consolidated financial statements when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In instances when a loss is reasonably possible but uncertainties exist related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if material. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. Moody’s also discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. In view of the inherent difficulty of assessing the potential outcome of legal proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation and similar matters and contingencies, particularly when the claimants seek large or indeterminate damages or assert novel legal theories or the matters involve a large number of parties, the Company often cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also may be unable to predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition and to accrue for and disclose such matters as and when required. However, because such matters are inherently unpredictable and unfavorable developments or resolutions can occur, the ultimate outcome of such matters, including the amount of any loss, may differ from those estimates. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company is organized into two operating segments: MIS and MA and accordingly, the Company reports in two reportable segments: MIS and MA. The MIS segment consists of five LOBs. The CFG, FIG, PPIF and SFG LOBs generate revenue principally from fees for the assignment and ongoing monitoring of credit ratings on debt obligations and the entities that issue such obligations in markets worldwide. The MIS Other LOB primarily consists of financial instruments pricing services in the Asia-Pacific region, ICRA non-ratings revenue and revenue from providing ESG research, data and assessments. The MA segment develops a wide range of products and services that support the risk management activities of institutional participants in global financial markets. The MA segment consists of three LOBs - Decision Solutions, Research and Insights, and Data and Information. Revenue for MIS and expenses for MA include intersegment fees charged to MA for the rights to use and distribute content, data and products developed by MIS. Additionally, revenue for MA and expenses for MIS include an intersegment fee charged to MIS from MA for certain MA products and services utilized in MIS’s ratings process. These intersegment fees are generally based on the market value of the products and services being transferred between the segments. Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and legal. Such costs and corporate expenses that exclusively benefit one segment are fully charged to that segment. For overhead costs and corporate expenses that benefit both segments, costs are allocated to each segment based on the segment’s share of full-year 2019 actual revenue which comprises a “Baseline Pool” that will remain fixed over time. In subsequent periods, incremental overhead costs (or reductions thereof) will be allocated to each segment based on the prevailing shares of total revenue represented by each segment. “Eliminations” in the following table represent intersegment revenue/expense. Moody’s does not report the Company’s assets by reportable segment, as this metric is not used by the chief operating decision maker to allocate resources to the segments. Consequently, it is not practical to show assets by reportable segment. Financial Information by Segment The table below shows revenue and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Refer to Note 2 for further details on the components of the Company’s revenue. Three Months Ended March 31, 2022 2021 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Revenue $ 870 $ 697 $ (45) $ 1,522 $ 1,076 $ 566 $ (42) $ 1,600 Operating, SG&A 360 473 (45) 788 348 380 (42) 686 Adjusted Operating Income $ 510 $ 224 $ — $ 734 $ 728 $ 186 $ — $ 914 Depreciation and amortization 18 60 — 78 18 41 — 59 Restructuring — — — — — 2 — 2 Operating Income $ 656 $ 853 Consolidated Revenue Information by Geographic Area Three Months Ended March 31, 2022 2021 United States $ 862 $ 885 Non-U.S.: EMEA 434 478 Asia-Pacific 135 156 Americas 91 81 Total Non-U.S. 660 715 Total $ 1,522 $ 1,600 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTOn April 26, 2022, the Board approved the declaration of a quarterly dividend of $0.70 per share of Moody’s common stock, payable on June 10, 2022 to shareholders of record at the close of business on May 20, 2022. |
Description of Business and B_2
Description of Business and Basis of Presentation - (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards On January 1, 2022, the Company adopted ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU No. 2021-08"). This ASU requires companies to apply the definition of a performance obligation under ASC Topic 606 to recognize and measure contract assets and contract liabilities (i.e., deferred revenue) relating to contracts with customers that are acquired in a business combination. The adoption of this ASU will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. Accordingly, upon adoption, the Company will no longer be required to adjust acquired deferred revenue to fair value in business combination transactions. The amendments in ASU No. 2021-08 are applied prospectively and will be applied to all business combination transactions completed subsequent to January 1, 2022. |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by LOB: Three Months Ended 2022 2021 MIS: Corporate Finance (CFG) Investment-grade $ 114 $ 134 High-yield 39 141 Bank loans 113 180 Other accounts (1) 151 150 Total CFG 417 605 Structured Finance (SFG) Asset-backed securities 32 26 RMBS 35 27 CMBS 38 24 Structured credit 39 38 Other accounts — 1 Total SFG 144 116 Financial Institutions (FIG) Banking 89 109 Insurance 34 43 Managed investments 5 8 Other accounts 3 2 Total FIG 131 162 Public, Project and Infrastructure Finance (PPIF) Public finance / sovereign 58 67 Project and infrastructure 65 76 Total PPIF 123 143 Total ratings revenue 815 1,026 MIS Other 12 10 Total external revenue 827 1,036 Intersegment revenue 43 40 Total MIS 870 1,076 MA: Decision Solutions 334 225 Research and Insights 183 171 Data and Information 178 168 Total external revenue 695 564 Intersegment revenue 2 2 Total MA 697 566 Eliminations (45) (42) Total MCO $ 1,522 $ 1,600 (1) Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue. The following table presents the Company’s revenues disaggregated by LOB and geographic area: 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 The following tables summarize the split between transaction and recurring revenue. In the MIS segment, excluding MIS Other, transaction revenue represents the initial rating of a new debt issuance as well as other one-time fees while recurring revenue represents the 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. In MIS Other, transaction revenue represents revenue from professional services and recurring revenue represents subscription-based revenues. In the MA segment, recurring revenue represents subscription-based revenues and software maintenance revenue. Transaction revenue in MA represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, and training and certification services. 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 % (1) Revenue from software implementation services and risk management advisory projects, while classified by management as transactional revenue, is recognized over time under the Revenue Accounting Standard (please also refer to the following table). The following table presents the timing of revenue recognition: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 MIS MA Total MIS MA Total Revenue recognized at a point in time $ 529 $ 41 $ 570 $ 745 $ 29 $ 774 Revenue recognized over time 298 654 952 291 535 826 Total $ 827 $ 695 $ 1,522 $ 1,036 $ 564 $ 1,600 |
Company's Reportable Segment Revenues Disaggregated by Segment and Geographic Region | The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region: Three Months Ended 2022 2021 MIS: U.S. $ 513 $ 647 Non-U.S.: EMEA 193 248 Asia-Pacific 74 97 Americas 47 44 Total Non-U.S. 314 389 Total MIS 827 1,036 MA: U.S. 349 238 Non-U.S.: EMEA 241 230 Asia-Pacific 61 59 Americas 44 37 Total Non-U.S. 346 326 Total MA 695 564 Total MCO $ 1,522 $ 1,600 Three Months Ended March 31, 2022 2021 United States $ 862 $ 885 Non-U.S.: EMEA 434 478 Asia-Pacific 135 156 Americas 91 81 Total Non-U.S. 660 715 Total $ 1,522 $ 1,600 |
Schedule of Unbilled Receivables | The following table presents the Company's unbilled receivables, which are included within accounts receivable, net, at March 31, 2022 and December 31, 2021: As at March 31, 2022 As at December 31, 2021 MIS MA MIS MA Unbilled Receivables $ 416 $ 223 $ 386 $ 152 |
Schedule of Changes in the Deferred Revenue Balances | Significant changes in the deferred revenue balances during the three months ended March 31, 2022 and 2021 are as follows: 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 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation Cost and Associated Tax Benefit | Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations: Three Months Ended March 31, 2022 2021 Stock-based compensation cost $ 46 $ 45 Tax benefit $ 11 $ 11 |
Weighted Average Assumptions used in Determining Fair Value for Options Granted | The following weighted average assumptions were used in determining the fair value using the Black-Scholes option-pricing model for options granted in 2022: Expected dividend yield 0.86 % Expected stock volatility 27 % Risk-free interest rate 1.88 % Expected holding period 5.6 years |
Stock Option Exercises and Restricted Stock Vesting | The following table summarizes information relating to stock option exercises and restricted stock vesting: Three Months Ended 2022 2021 Exercise of stock options: Proceeds from stock option exercises $ 3 $ 6 Aggregate intrinsic value $ 4 $ 9 Tax benefit realized upon exercise $ 1 $ 2 Number of shares exercised (1) — 0.1 Vesting of restricted stock: Fair value of shares vested $ 166 $ 178 Tax benefit realized upon vesting $ 39 $ 41 Number of shares vested 0.5 0.6 Vesting of performance-based restricted stock: Fair value of shares vested $ 50 $ 29 Tax benefit realized upon vesting $ 12 $ 6 Number of shares vested 0.2 0.1 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Paid | The following table shows the amount the Company paid for income taxes: Three Months Ended March 31, 2022 2021 Income taxes paid $ 70 $ 68 |
RECONCILIATION OF WEIGHTED AV_2
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic to Diluted Shares Outstanding | Below is a reconciliation of basic to diluted shares outstanding: Three Months Ended March 31, 2022 2021 Basic 185.1 187.2 Dilutive effect of shares issuable under stock-based compensation plans 1.0 1.4 Diluted 186.1 188.6 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 |
CASH EQUIVALENTS AND INVESTME_2
CASH EQUIVALENTS AND INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents and Investments | The table below provides additional information on the Company’s cash equivalents and investments: As of March 31, 2022 Balance sheet location Cost Gains/(Losses) Fair Value Cash and cash equivalents Short-term Other Certificates of deposit and money market deposit accounts (1) $ 694 $ — $ 694 $ 582 $ 103 $ 9 Mutual funds $ 62 $ 2 $ 64 $ — $ — $ 64 As of December 31, 2021 Balance sheet location Cost Gains/(Losses) Fair Value Cash and cash Short-term Other Certificates of deposit and money market deposit accounts (1) $ 691 $ — $ 691 $ 584 $ 91 $ 16 Mutual funds $ 65 $ 8 $ 73 $ — $ — $ 73 (1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one month to 12 months at both March 31, 2022 and December 31, 2021. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 months to 26 months at March 31, 2022 and 13 months to 29 months at December 31, 2021. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The table below details the total consideration relating to the acquisition: Cash paid at closing $ 1,922 Replacement equity compensation awards 5 Total consideration $ 1,927 The table below details the total consideration relating to the acquisition: Cash paid at closing $ 138 Additional consideration paid to sellers in 2021 (1) 1 Total consideration $ 139 (1) Represents additional consideration paid to the sellers following finalization of customary post-closing completion adjustments. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Shown below is the preliminary purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: 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 Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: Current assets $ 7 Intangible assets: Database (10 year useful life) $ 38 Customer relationships (18 year useful life) 9 Product technology (8 year useful life) 9 Trade name (5 year useful life) 1 Total intangible assets (11 year weighted average useful life) 57 Goodwill 79 Deferred tax assets 16 Other assets 2 Liabilities: Accounts payable and accrued liabilities $ (1) Deferred revenue (4) Deferred tax liabilities (15) Other liabilities (2) Total liabilities (22) Net assets acquired $ 139 |
Business Acquisition, Pro Forma Information | Supplemental information on an unaudited pro forma basis is presented below for the three months ended March 31, 2021 as if the acquisition of RMS occurred on January 1, 2020. The pro forma financial information is presented for comparative purposes only and is based on certain estimates and assumptions, which the Company believes to be reasonable but not necessarily indicative of future results of operations or the results that would have been reported if the acquisition had been completed at January 1, 2020. The unaudited pro forma information includes amortization of acquired intangible assets, based on the preliminary purchase price allocation and an estimate of useful lives reflected above, and incremental financing costs resulting from the acquisition, net of income tax, which was estimated using the weighted average statutory tax rates in effect in the jurisdiction for which the pro forma adjustment relates. Three Months Ended 2021 Pro forma Revenue $ 1,680 Pro forma Net Income attributable to Moody's $ 729 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes the Company’s interest rate swaps designated as fair value hedges: Notional Amount Hedged Item Nature of Swap As of March 31, 2022 As of December 31, 2021 Floating Interest Rate 2017 Senior Notes due 2023 Pay Floating/Receive Fixed $ 250 $ 250 3-month USD LIBOR 2017 Senior Notes due 2028 Pay Floating/Receive Fixed $ 500 $ 500 3-month USD LIBOR 2020 Senior Notes due 2025 Pay Floating/Receive Fixed $ 300 $ 300 6-month USD LIBOR 2014 Senior Notes due 2044 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 Total $ 2,050 $ 1,650 March 31, 2022 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 Pay Floating/Receive Floating 351 Based on 3-month EURIBOR 400 Based on SOFR Total € 2,439 $ 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 |
Gains and Losses on Derivatives Designated as Hedging Instruments | The following table summarizes the impact to the statements of operations of the Company’s interest rate swaps designated as fair value hedges: 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, 2022 2021 Interest expense, net $ (53) $ (7) Descriptions Location on Consolidated Statements of Operations Net interest settlements and accruals on interest rate swaps Interest expense, net $ 6 $ 5 Fair value changes on interest rate swaps Interest expense, net $ (85) $ (24) Fair value changes on hedged debt Interest expense, net $ 85 $ 24 |
Schedule of Net Investment Hedges, Notional Amount That Will Be Settled At Expiry | As of March 31, 2022 these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company: Years Ending December 31, 2023 € 442 2024 € 443 2026 € 450 2027 € 246 2028 € 507 2029 € 351 Total € 2,439 |
Amount of Gain/(Loss) Recognized in AOCI on Derivative Net Investment Hedging Relationships (Effectiveness Portion) | The following tables provide information on the gains/(losses) on the Company’s net investment and cash flow hedges: 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 Three Months Ended Three Months Ended 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 |
Components of Accumulated Other Comprehensive Income | The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCL is as follows: Cumulative Gains/(Losses), net of tax March 31, 2022 December 31, 2021 Net investment hedges Cross currency swaps $ 43 $ 19 FX forwards 29 29 Long-term debt (4) (27) Total net investment hedges $ 68 $ 21 Cash flow hedges Interest rate contracts $ (48) $ (49) Cross currency swaps 2 2 Total cash flow hedges (46) (47) Total net gain (loss) in AOCL $ 22 $ (26) The following tables show changes in AOCL by component (net of tax): Three Months Ended March 31, 2022 Gains/(Losses) 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) Other comprehensive income/(loss) before reclassifications (2) — (107) 47 (62) Amounts reclassified from AOCL — 1 — — 1 Other comprehensive income/(loss) (2) 1 (107) 47 (61) Balance March 31, 2022 $ (51) $ (46) $ (442) $ 68 $ (471) Three Months Ended March 31, 2021 Gains/(Losses) 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) Other comprehensive income/(loss) before reclassifications — — (143) 133 (10) Amounts reclassified from AOCL 2 1 — (1) 2 Other comprehensive income/(loss) 2 1 (143) 132 (8) Balance March 31, 2021 $ (116) $ (48) $ (188) $ (88) $ (440) |
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards | The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: March 31, 2022 December 31, 2021 Notional amount of currency pair: Sell Buy Sell Buy Contracts to sell USD for GBP $ 183 £ 135 $ 126 £ 92 Contracts to sell USD for Japanese yen $ 22 ¥ 2,500 $ 22 ¥ 2,500 Contracts to sell USD for Canadian dollars $ 106 C$ 133 $ 120 C$ 150 Contracts to sell USD for Singapore dollars $ 74 S$ 100 $ 67 S$ 90 Contracts to sell USD for euros $ 431 € 380 $ 364 € 315 Contracts to sell USD for Russian ruble $ 26 ₽ 2,400 $ 16 ₽ 1,200 Contracts to sell USD for Indian rupee $ 24 ₹ 1,800 $ 7 ₹ 500 Contracts to sell GBP for USD £ — $ — £ 172 $ 231 NOTE: € = euro, £ = British pound, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar, S$= Singapore dollars, ₽ = Russian ruble, ₹= Indian rupee |
Gains and Losses Recognized in Consolidated Statement of Operations on Derivatives Not Designated as Hedging instruments | The following table summarizes the impact to the consolidated statements of operations relating to the net losses on the Company’s derivatives which are not designated as hedging instruments: Derivatives not designated as accounting hedges Location on Consolidated Statements of Operations Three Months Ended 2022 2021 FX forwards Other non-operating income, net $ (19) $ (6) |
Fair Value of Derivative Instruments | The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instrument as well as the carrying value of its non-derivative debt instruments designated and qualifying as net investment hedges: Derivative and Non-Derivative Instruments Balance Sheet Location March 31, 2022 December 31, 2021 Assets: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other current assets $ 9 $ — 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 Other assets — 13 Total derivatives designated as accounting hedges 77 66 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Other current assets 1 1 Total assets $ 78 $ 67 Liabilities: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other liabilities $ 6 $ 17 Interest rate swaps designated as fair value hedges Other liabilities 97 23 Total derivatives designated as accounting hedges 103 40 Non-derivatives designated as accounting hedges: Long-term debt designated as net investment hedge Long-term debt 1,391 1,421 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Accounts payable and accrued liabilities 22 12 Total liabilities $ 1,516 $ 1,473 |
GOODWILL AND OTHER ACQUIRED I_2
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Activity in Goodwill | The following table summarizes the activity in goodwill for the periods indicated: Three Months Ended March 31, 2022 MIS MA Consolidated Gross goodwill Accumulated impairment Net Gross goodwill Accumulated Net Gross goodwill Accumulated Net Balance at beginning $ 396 $ — $ 396 $ 5,615 $ (12) $ 5,603 $ 6,011 $ (12) $ 5,999 Additions/ adjustments (1) — — — 107 — 107 107 — 107 Foreign currency translation adjustments (1) — (1) (66) — (66) (67) — (67) Ending balance $ 395 $ — $ 395 $ 5,656 $ (12) $ 5,644 $ 6,051 $ (12) $ 6,039 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 $ 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 (5) — (5) (167) — (167) (172) — (172) Ending balance $ 396 $ — $ 396 $ 5,615 $ (12) $ 5,603 $ 6,011 $ (12) $ 5,999 (1) The 2022 additions/adjustments for the MA segment in the table above primarily relate to the acquisition of kompany. (2) The 2021 additions/adjustments for the MA segment in the table above relate to the acquisitions of Cortera, RMS, RealXData, Bogard, and PassFort. The 2021 additions/adjustments for the MIS segment relate to certain revenue synergies from the RMS acquisition that are expected to benefit the ESG solutions group within the MIS Other LOB. |
Acquired Intangible Assets and Related Amortization | Acquired intangible assets and related amortization consisted of: March 31, December 31, Customer relationships $ 2,085 $ 2,101 Accumulated amortization (400) (381) Net customer relationships 1,685 1,720 Software/product technology 679 663 Accumulated amortization (233) (219) Net software/product technology 446 444 Database 179 179 Accumulated amortization (51) (46) Net database 128 133 Trade names 205 207 Accumulated amortization (51) (47) Net trade names 154 160 Other (1) 54 54 Accumulated amortization (45) (44) Net other 9 10 Total acquired intangible assets, net $ 2,422 $ 2,467 (1) Other intangible assets primarily consist of trade secrets, covenants not to compete, and acquired ratings methodologies and models. |
Amortization Expense Relating to Acquired Intangible Assets | Amortization expense relating to acquired intangible assets is as follows: Three Months Ended 2022 2021 Amortization expense $ 51 $ 35 |
Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization | Estimated future amortization expense for acquired intangible assets subject to amortization is as follows: 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 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Carried at Fair Value on Recurring Basis | The table below presents information about items that are carried at fair value at March 31, 2022 and December 31, 2021: Fair value Measurement as of March 31, 2022 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 78 $ — $ 78 Mutual funds 64 64 — Total $ 142 $ 64 $ 78 Liabilities: Derivatives (1) $ 125 $ — $ 125 Total $ 125 $ — $ 125 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 (1) Represents FX forward contracts, interest rate swaps and cross-currency swaps as more fully described in Note 9 to the condensed consolidated financial statements. |
OTHER BALANCE SHEET AND STATE_2
OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Balance Sheet And Statement Of Operations Information [Abstract] | |
Additional Details Related to Certain Balance Sheet Captions | The following tables contain additional detail related to certain balance sheet captions: March 31, 2022 December 31, 2021 Other current assets: Prepaid taxes $ 113 $ 112 Prepaid expenses 104 99 Capitalized costs to obtain and fulfill sales contracts 98 103 Derivative instruments designated as accounting hedges 11 — Other 59 75 Total other current assets $ 385 $ 389 Other assets: Investments in non-consolidated affiliates $ 450 $ 443 Deposits for real-estate leases 15 14 Indemnification assets related to acquisitions 108 106 Mutual funds and fixed deposits 73 89 Company owned life insurance (at contract value) 49 37 Costs to obtain sales contracts 152 138 Derivative instruments designated as accounting hedges 66 66 Pension and other retirement employee benefits 74 77 Other 74 64 Total other assets $ 1,061 $ 1,034 Accounts payable and accrued liabilities: Salaries and benefits $ 220 $ 211 Incentive compensation 72 324 Customer credits, advanced payments and advanced billings 116 100 Dividends 3 6 Professional service fees 69 75 Interest accrued on debt 42 85 Accounts payable 42 47 Income taxes 141 115 Pension and other retirement employee benefits 7 7 Accrued royalties 21 36 Foreign exchange forwards on certain assets and liabilities 22 12 Restructuring liability 2 4 Other 99 120 Total accounts payable and accrued liabilities $ 856 $ 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 |
Investments in and Advances to Affiliates | The following table provides additional detail regarding Moody's investments in non-consolidated affiliates, as included in other assets in the consolidated balance sheet: March 31, 2022 December 31, 2021 Equity method investments (1) $ 128 $ 121 Investments measured using the measurement alternative (2) 318 318 Other 4 4 Total investments in non-consolidated affiliates $ 450 $ 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 (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 |
Other Non-Operating | The following table summarizes the components of other non-operating income: Three Months Ended March 31, 2022 2021 FX gain (loss) $ — $ (2) Net periodic pension costs - other components 6 4 Income from investments in non-consolidated affiliates 2 8 Other (2) 6 Total $ 6 $ 16 |
COMPREHENSIVE INCOME AND ACCU_2
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Reclassifications out of AOCI | The following table provides details about the reclassifications out of AOCL: 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) |
Components of Accumulated Other Comprehensive Income | The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCL is as follows: Cumulative Gains/(Losses), net of tax March 31, 2022 December 31, 2021 Net investment hedges Cross currency swaps $ 43 $ 19 FX forwards 29 29 Long-term debt (4) (27) Total net investment hedges $ 68 $ 21 Cash flow hedges Interest rate contracts $ (48) $ (49) Cross currency swaps 2 2 Total cash flow hedges (46) (47) Total net gain (loss) in AOCL $ 22 $ (26) The following tables show changes in AOCL by component (net of tax): Three Months Ended March 31, 2022 Gains/(Losses) 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) Other comprehensive income/(loss) before reclassifications (2) — (107) 47 (62) Amounts reclassified from AOCL — 1 — — 1 Other comprehensive income/(loss) (2) 1 (107) 47 (61) Balance March 31, 2022 $ (51) $ (46) $ (442) $ 68 $ (471) Three Months Ended March 31, 2021 Gains/(Losses) 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) Other comprehensive income/(loss) before reclassifications — — (143) 133 (10) Amounts reclassified from AOCL 2 1 — (1) 2 Other comprehensive income/(loss) 2 1 (143) 132 (8) Balance March 31, 2021 $ (116) $ (48) $ (188) $ (88) $ (440) |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Total Indebtedness | The following table summarizes total indebtedness: March 31, 2022 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 (24) 3 (5) 574 1.75% 2015 Senior Notes, due 2027 556 — — (2) 554 2.625% 2017 Senior Notes, due 2023 500 2 — (1) 501 3.25% 2017 Senior Notes, due 2028 500 (16) (3) (2) 479 4.25% 2018 Senior Notes, due 2029 400 (12) (2) (2) 384 4.875% 2018 Senior Notes, due 2048 400 (25) (6) (4) 365 0.950% 2019 Senior Notes, due 2030 835 — (2) (5) 828 3.75% 2020 Senior Notes, due 2025 700 (20) (1) (3) 676 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) (5) 582 3.10% 2021 Senior Notes, due 2061 500 — (7) (5) 488 3.75% 2022 Senior Notes, due 2052 500 — (9) (5) 486 Total debt $ 7,991 $ (95) $ (57) $ (53) $ 7,786 Current portion (501) Total long-term debt $ 7,285 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 (1) The fair value of interest rate swaps in the table above represents the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt. |
Principal Payments Due on Long-Term Borrowings | The repayment schedule for the Company’s borrowings is as follows: 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,) $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2023 — — — 500 — — — — — — — — — — — $ 500 2024 500 — — — — — — — — — — — — — — $ 500 2025 — — — — — — — — 700 — — — — — — $ 700 2026 — — — — — — — — — — — — — — — $ — Thereafter — 600 556 — 500 400 400 835 — 300 500 600 600 500 500 $ 6,291 Total $ 500 $ 600 $ 556 $ 500 $ 500 $ 400 $ 400 $ 835 $ 700 $ 300 $ 500 $ 600 $ 600 $ 500 $ 500 $ 7,991 |
Summary of Components of Interest as Presented in Consolidated Statements of Operations | The following table summarizes the components of interest as presented in the consolidated statements of operations and the cash paid for interest: Three Months Ended March 31, 2022 2021 Income $ 2 $ 3 Expense on borrowings (48) (41) Income (expense) on UTPs and other tax related liabilities (2) (3) 35 Net periodic pension costs - interest component (4) (4) Interest expense, net $ (53) $ (7) Interest paid (1) $ 78 $ 73 (1) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 9. (2) Income (expense) on UTPs and other tax related liabilities in 2021 includes a $40 million benefit relating to the reversal of tax-related interest accruals pursuant to the resolution of tax matters. |
Fair Value and Carrying Value of Long-Term Debt | The fair value and carrying value of the Company’s debt as of March 31, 2022 and December 31, 2021 are as follows: March 31, 2022 December 31, 2021 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 4.875% 2013 Senior Notes, due 2024 $ 498 $ 516 $ 498 $ 538 5.25% 2014 Senior Notes, due 2044 574 697 591 805 1.75% 2015 Senior Notes, due 2027 554 565 566 607 2.625% 2017 Senior Notes, due 2023 501 502 504 509 3.25% 2017 Senior Notes, due 2028 479 501 503 539 4.25% 2018 Senior Notes, due 2029 384 420 396 451 4.875% 2018 Senior Notes, due 2048 365 457 383 526 0.950% 2019 Senior Notes, due 2030 828 787 846 866 3.75% 2020 Senior Notes, due 2025 676 713 686 750 3.25% 2020 Senior Notes, due 2050 293 269 293 311 2.55% 2020 Senior Notes, due 2060 491 370 491 432 2.00% 2021 Senior Notes, due 2031 587 531 587 581 2.75% 2021 Senior Notes, due 2041 582 515 581 579 3.10% 2021 Senior Notes, due 2061 488 420 488 488 3.75% 2022 Senior Notes, due 2052 486 492 — — Total $ 7,786 $ 7,755 $ 7,413 $ 7,982 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Cost | The following table presents the components of the Company’s lease cost: Three Months Ended March 31, 2022 2021 Operating lease cost $ 27 $ 24 Sublease income (2) (1) Variable lease cost 5 5 Total lease cost $ 30 $ 28 |
Schedule of Operating Leases Information | The following tables present other information related to the Company’s operating leases: 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 % |
Lessee, Operating Lease, Liability, Maturity | The following table presents a maturity analysis of the future minimum lease payments included within the Company’s operating lease liabilities at March 31, 2022: Year Ending December 31, Operating Leases 2022 (After March 31) $ 91 2023 119 2024 111 2025 96 2026 77 After 2026 99 Total lease payments (undiscounted) 593 Less: Interest 47 Present value of lease liabilities: $ 546 Lease liabilities - current $ 106 Lease liabilities - noncurrent $ 440 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | The table below shows revenue and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Refer to Note 2 for further details on the components of the Company’s revenue. Three Months Ended March 31, 2022 2021 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Revenue $ 870 $ 697 $ (45) $ 1,522 $ 1,076 $ 566 $ (42) $ 1,600 Operating, SG&A 360 473 (45) 788 348 380 (42) 686 Adjusted Operating Income $ 510 $ 224 $ — $ 734 $ 728 $ 186 $ — $ 914 Depreciation and amortization 18 60 — 78 18 41 — 59 Restructuring — — — — — 2 — 2 Operating Income $ 656 $ 853 |
Company's Reportable Segment Revenues Disaggregated by Segment and Geographic Region | The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region: Three Months Ended 2022 2021 MIS: U.S. $ 513 $ 647 Non-U.S.: EMEA 193 248 Asia-Pacific 74 97 Americas 47 44 Total Non-U.S. 314 389 Total MIS 827 1,036 MA: U.S. 349 238 Non-U.S.: EMEA 241 230 Asia-Pacific 61 59 Americas 44 37 Total Non-U.S. 346 326 Total MA 695 564 Total MCO $ 1,522 $ 1,600 Three Months Ended March 31, 2022 2021 United States $ 862 $ 885 Non-U.S.: EMEA 434 478 Asia-Pacific 135 156 Americas 91 81 Total Non-U.S. 660 715 Total $ 1,522 $ 1,600 |
Description of Business and B_3
Description of Business and Basis of Presentation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Revenues - Revenue by Category
Revenues - Revenue by Category (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,522 | $ 1,600 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (45) | (42) |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 827 | 1,036 |
MIS | Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 43 | 40 |
MIS | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 870 | 1,076 |
MIS | Corporate Finance (CFG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 417 | 605 |
MIS | Corporate Finance (CFG) | Investment-grade | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 114 | 134 |
MIS | Corporate Finance (CFG) | High-yield | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 39 | 141 |
MIS | Corporate Finance (CFG) | Bank loans | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 113 | 180 |
MIS | Corporate Finance (CFG) | Other accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 151 | 150 |
MIS | Structured Finance (SFG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 144 | 116 |
MIS | Structured Finance (SFG) | Other accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 1 |
MIS | Structured Finance (SFG) | Asset-backed securities | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 32 | 26 |
MIS | Structured Finance (SFG) | RMBS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 35 | 27 |
MIS | Structured Finance (SFG) | CMBS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 38 | 24 |
MIS | Structured Finance (SFG) | Structured credit | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 39 | 38 |
MIS | Financial Institutions (FIG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 131 | 162 |
MIS | Financial Institutions (FIG) | Other accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3 | 2 |
MIS | Financial Institutions (FIG) | Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 89 | 109 |
MIS | Financial Institutions (FIG) | Insurance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 34 | 43 |
MIS | Financial Institutions (FIG) | Managed investments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5 | 8 |
MIS | Public, Project And Infrastructure Finance (PPIF) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 123 | 143 |
MIS | Public, Project And Infrastructure Finance (PPIF) | Public finance / sovereign | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 58 | 67 |
MIS | Public, Project And Infrastructure Finance (PPIF) | Project and infrastructure | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 65 | 76 |
MIS | Rating Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 815 | 1,026 |
MIS | MIS Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12 | 10 |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 695 | 564 |
MA | Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2 | 2 |
MA | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 697 | 566 |
MA | Decision Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 334 | 225 |
MA | Research and Insights | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 183 | 171 |
MA | Data and Information | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 178 | $ 168 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Line of Business and Geographical Area (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,522 | $ 1,600 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 862 | 885 |
Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 660 | 715 |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 827 | 1,036 |
MIS | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 513 | 647 |
MIS | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 314 | 389 |
MIS | Corporate Finance (CFG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 417 | 605 |
MIS | Corporate Finance (CFG) | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 275 | 414 |
MIS | Corporate Finance (CFG) | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 142 | 191 |
MIS | Structured Finance (SFG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 144 | 116 |
MIS | Structured Finance (SFG) | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 97 | 68 |
MIS | Structured Finance (SFG) | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 47 | 48 |
MIS | Financial Institutions (FIG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 131 | 162 |
MIS | Financial Institutions (FIG) | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 65 | 86 |
MIS | Financial Institutions (FIG) | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 66 | 76 |
MIS | Public, Project And Infrastructure Finance (PPIF) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 123 | 143 |
MIS | Public, Project And Infrastructure Finance (PPIF) | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 75 | 78 |
MIS | Public, Project And Infrastructure Finance (PPIF) | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 48 | 65 |
MIS | Rating Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 815 | 1,026 |
MIS | Rating Revenue | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 512 | 646 |
MIS | Rating Revenue | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 303 | 380 |
MIS | MIS Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12 | 10 |
MIS | MIS Other | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1 | 1 |
MIS | MIS Other | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 11 | 9 |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 695 | 564 |
MA | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 349 | 238 |
MA | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 346 | 326 |
MA | Decision Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 334 | 225 |
MA | Decision Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 188 | 91 |
MA | Decision Solutions | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 146 | 134 |
MA | Research and Insights | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 183 | 171 |
MA | Research and Insights | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 101 | 92 |
MA | Research and Insights | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 82 | 79 |
MA | Data and Information | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 178 | 168 |
MA | Data and Information | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 60 | 55 |
MA | Data and Information | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 118 | $ 113 |
Revenues - Consolidated Revenue
Revenues - Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,522 | $ 1,600 |
MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 827 | 1,036 |
MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 695 | 564 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 862 | 885 |
United States | MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 513 | 647 |
United States | MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 349 | 238 |
Non-U.S. | ||
Segment Reporting Information [Line Items] | ||
Revenue | 660 | 715 |
Non-U.S. | MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 314 | 389 |
Non-U.S. | MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 346 | 326 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 434 | 478 |
EMEA | MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 193 | 248 |
EMEA | MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 241 | 230 |
Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Revenue | 135 | 156 |
Asia-Pacific | MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 74 | 97 |
Asia-Pacific | MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 61 | 59 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Revenue | 91 | 81 |
Americas | MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 47 | 44 |
Americas | MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 44 | $ 37 |
Revenues - Transaction and Rela
Revenues - Transaction and Relationship Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,522 | $ 1,600 |
Percentage of Revenues | 100.00% | 100.00% |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 827 | $ 1,036 |
Percentage of Revenues | 100.00% | 100.00% |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 695 | $ 564 |
Percentage of Revenues | 100.00% | 100.00% |
Corporate Finance (CFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 417 | $ 605 |
Percentage of Revenues | 100.00% | 100.00% |
Structured Finance (SFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 144 | $ 116 |
Percentage of Revenues | 100.00% | 100.00% |
Financial Institutions (FIG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 131 | $ 162 |
Percentage of Revenues | 100.00% | 100.00% |
Public, Project And Infrastructure Finance (PPIF) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 123 | $ 143 |
Percentage of Revenues | 100.00% | 100.00% |
MIS Other | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 12 | $ 10 |
Percentage of Revenues | 100.00% | 100.00% |
Decision Solutions | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 334 | $ 225 |
Percentage of Revenues | 100.00% | 100.00% |
Research and Insights | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 183 | $ 171 |
Percentage of Revenues | 100.00% | 100.00% |
Data and Information | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 178 | $ 168 |
Percentage of Revenues | 100.00% | 100.00% |
Transaction Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 573 | $ 788 |
Percentage of Revenues | 38.00% | 49.00% |
Transaction Revenue | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 529 | $ 745 |
Percentage of Revenues | 64.00% | 72.00% |
Transaction Revenue | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 44 | $ 43 |
Percentage of Revenues | 6.00% | 8.00% |
Transaction Revenue | Corporate Finance (CFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 293 | $ 487 |
Percentage of Revenues | 70.00% | 80.00% |
Transaction Revenue | Structured Finance (SFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 93 | $ 66 |
Percentage of Revenues | 65.00% | 57.00% |
Transaction Revenue | Financial Institutions (FIG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 61 | $ 90 |
Percentage of Revenues | 47.00% | 56.00% |
Transaction Revenue | Public, Project And Infrastructure Finance (PPIF) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 79 | $ 100 |
Percentage of Revenues | 64.00% | 70.00% |
Transaction Revenue | MIS Other | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 3 | $ 2 |
Percentage of Revenues | 25.00% | 20.00% |
Transaction Revenue | Decision Solutions | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 43 | $ 41 |
Percentage of Revenues | 13.00% | 18.00% |
Transaction Revenue | Research and Insights | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1 | $ 1 |
Percentage of Revenues | 1.00% | 1.00% |
Transaction Revenue | Data and Information | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 0 | $ 1 |
Percentage of Revenues | 0.00% | 1.00% |
Recurring Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 949 | $ 812 |
Percentage of Revenues | 62.00% | 51.00% |
Recurring Revenue | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 298 | $ 291 |
Percentage of Revenues | 36.00% | 28.00% |
Recurring Revenue | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 651 | $ 521 |
Percentage of Revenues | 94.00% | 92.00% |
Recurring Revenue | Corporate Finance (CFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 124 | $ 118 |
Percentage of Revenues | 30.00% | 20.00% |
Recurring Revenue | Structured Finance (SFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 51 | $ 50 |
Percentage of Revenues | 35.00% | 43.00% |
Recurring Revenue | Financial Institutions (FIG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 70 | $ 72 |
Percentage of Revenues | 53.00% | 44.00% |
Recurring Revenue | Public, Project And Infrastructure Finance (PPIF) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 44 | $ 43 |
Percentage of Revenues | 36.00% | 30.00% |
Recurring Revenue | MIS Other | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 9 | $ 8 |
Percentage of Revenues | 75.00% | 80.00% |
Recurring Revenue | Decision Solutions | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 291 | $ 184 |
Percentage of Revenues | 87.00% | 82.00% |
Recurring Revenue | Research and Insights | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 182 | $ 170 |
Percentage of Revenues | 99.00% | 99.00% |
Recurring Revenue | Data and Information | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 178 | $ 167 |
Percentage of Revenues | 100.00% | 99.00% |
Revenues - Revenue Recognition
Revenues - Revenue Recognition Timing (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 1,522 | $ 1,600 |
At Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 570 | 774 |
Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 952 | 826 |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 827 | 1,036 |
MIS | At Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 529 | 745 |
MIS | Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 298 | 291 |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 695 | 564 |
MA | At Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 41 | 29 |
MA | Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 654 | $ 535 |
Revenues - Unbilled Receivables
Revenues - Unbilled Receivables (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled Receivables | $ 416 | $ 386 |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled Receivables | $ 223 | $ 152 |
Revenues - Schedule of Changes
Revenues - Schedule of Changes in the Deferred Revenue Balances (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Change in Contract with Customer, Liability [Abstract] | |||
Beginning Balance | $ 1,335 | $ 1,187 | |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (526) | (482) | |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 814 | 626 | |
Increases due to acquisitions during the period | 1 | 4 | |
Effect of exchange rate changes | (13) | (7) | |
Total changes in deferred revenue | 276 | 141 | |
Ending Balance | 1,611 | 1,328 | |
Deferred revenue - current | 1,525 | 1,232 | $ 1,249 |
Deferred revenue - non-current | 86 | 96 | $ 86 |
MIS | |||
Change in Contract with Customer, Liability [Abstract] | |||
Beginning Balance | 296 | 313 | |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (95) | (96) | |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 178 | 174 | |
Increases due to acquisitions during the period | 0 | 0 | |
Effect of exchange rate changes | (2) | (3) | |
Total changes in deferred revenue | 81 | 75 | |
Ending Balance | 377 | 388 | |
Deferred revenue - current | 294 | 295 | |
Deferred revenue - non-current | 83 | 93 | |
MA | |||
Change in Contract with Customer, Liability [Abstract] | |||
Beginning Balance | 1,039 | 874 | |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (431) | (386) | |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 636 | 452 | |
Increases due to acquisitions during the period | 1 | 4 | |
Effect of exchange rate changes | (11) | (4) | |
Total changes in deferred revenue | 195 | 66 | |
Ending Balance | 1,234 | 940 | |
Deferred revenue - current | 1,231 | 937 | |
Deferred revenue - non-current | $ 3 | $ 3 |
Revenues - Expected Recognition
Revenues - Expected Recognition Period for Remaining Performance Obligations (Detail) $ in Millions | Mar. 31, 2022USD ($) |
MIS | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 110 |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 20.00% |
Revenue, remaining performance obligation, period | 1 year |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 50.00% |
Revenue, remaining performance obligation, period | 4 years |
MA | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 3,100 |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 60.00% |
Revenue, remaining performance obligation, period | 1 year |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 25.00% |
Revenue, remaining performance obligation, period | 1 year |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Cost and Associated Tax Benefit (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||
Stock-based compensation cost | $ 46 | $ 45 |
Tax benefit | $ 11 | $ 11 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee stock options, granted (in shares) | shares | 0.1 |
Employee stock options, weighted average grant date fair value (in usd per share) | $ / shares | $ 84.15 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Other than options, shares granted (in shares) | shares | 0.5 |
Other than options, weighted average grant date fair value (in usd per share) | $ / shares | $ 325.99 |
Award vesting period (in years) | 4 years |
Unrecognized compensation expense | $ | $ 332 |
Weighted average period to recognize expense | 2 years 9 months 18 days |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 4 years |
Unrecognized compensation expense | $ | $ 27 |
Weighted average period to recognize expense | 2 years 3 months 18 days |
Performance Based Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Other than options, shares granted (in shares) | shares | 0.1 |
Other than options, weighted average grant date fair value (in usd per share) | $ / shares | $ 317.21 |
Award vesting period (in years) | 3 years |
Unrecognized compensation expense | $ | $ 68 |
Weighted average period to recognize expense | 2 years 1 month 6 days |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions used in Determining Fair Value for Options Granted (Detail) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Expected dividend yield | 0.86% |
Expected stock volatility | 27.00% |
Risk-free interest rate | 1.88% |
Expected holding period | 5 years 7 months 6 days |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Exercises and Restricted Stock Vesting (Detail) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Proceeds from stock option exercises | $ 3 | $ 6 |
Aggregate intrinsic value | 4 | 9 |
Tax benefit realized upon exercise | $ 1 | $ 2 |
Number of shares exercised (shares) | 20 | 100 |
Restricted Stock | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Fair value of shares vested | $ 166 | $ 178 |
Tax benefit realized upon vesting | $ 39 | $ 41 |
Number of shares vested (shares) | 500 | 600 |
Performance Based Restricted Stock | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Fair value of shares vested | $ 50 | $ 29 |
Tax benefit realized upon vesting | $ 12 | $ 6 |
Number of shares vested (shares) | 200 | 100 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (percent) | 18.20% | 14.60% |
Increase in effective income tax due to resolution of uncertain tax positions | 3.60% | |
Excess tax benefits from stock compensation | $ 19 | |
Reduction resulting from lapse of applicable statute of limitations and settlement | 20 | |
Overall increase (decrease) in unrecognized tax benefits (UTPs) | (20) | |
Overall increase (decrease) in unrecognized tax benefits (UTPs), net of federal tax | $ 20 |
Income Taxes - Income Taxes Pai
Income Taxes - Income Taxes Paid (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income taxes paid | $ 70 | $ 68 |
Reconciliation of Weighted Av_3
Reconciliation of Weighted Average Shares Outstanding - Reconciliation of Basic to Diluted Shares Outstanding (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Basic (in shares) | 185.1 | 187.2 |
Dilutive effect of shares issuable under stock-based compensation plans (in shares) | 1 | 1.4 |
Diluted (in shares) | 186.1 | 188.6 |
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above (in shares) | 0.3 | 0.3 |
Accelerated Share Repurchase _2
Accelerated Share Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | Mar. 01, 2022 | Apr. 30, 2022 | Apr. 30, 2022 |
Subsequent Event | |||
Accelerated Share Repurchases [Line Items] | |||
Accelerated share repurchases, final price paid per share (in usd per share) | $ 324.20 | ||
Accelerated Share Repurchases | Subsequent Event | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury shares repurchased (in shares) | 1.5 | ||
March 1, 2022 | |||
Accelerated Share Repurchases [Line Items] | |||
Accelerated share repurchases, total Value committed to repurchase | $ 500,000,000 | ||
Accelerated share repurchase payment | $ 500,000,000 | ||
March 1, 2022 | Accelerated Share Repurchases | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury shares repurchased (in shares) | 1.2 | ||
April 25, 2022 | Accelerated Share Repurchases | Subsequent Event | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury shares repurchased (in shares) | 0.3 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Cash and Cash Equivalents [Line Items] | ||
Fair Value | $ 64 | $ 73 |
Cash and cash equivalents | 1,750 | 1,811 |
Short-term investments | 103 | 91 |
Other assets | 1,061 | 1,034 |
Certificates of deposit and money market deposit accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 694 | 691 |
Gains/(Losses) | 0 | 0 |
Fair Value | 694 | 691 |
Cash and cash equivalents | 582 | 584 |
Short-term investments | 103 | 91 |
Other assets | 9 | 16 |
Mutual funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 62 | 65 |
Gains/(Losses) | 2 | 8 |
Fair Value | 64 | 73 |
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Other assets | $ 64 | $ 73 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments (Footnote) (Detail) - Certificates of deposit and money market deposit accounts | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Short-term Investments | Minimum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 1 month | |
Short-term Investments | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 12 months | |
Other assets | Minimum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 13 months | 13 months |
Other assets | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 26 months | 29 months |
Cash and Cash Equivalents | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 90 days |
Cash Equivalents and Investme_5
Cash Equivalents and Investments (Narrative) (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Company owned life insurance (at contract value) | $ 49 | $ 37 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Feb. 28, 2022 | Dec. 31, 2021 | Sep. 15, 2021 | Mar. 19, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 6,039 | $ 5,999 | $ 4,556 | |||
MA | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 5,644 | 5,603 | 4,245 | |||
MIS | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 395 | 396 | $ 311 | |||
Kompany | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition interests acquired | 100.00% | |||||
RMS | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition interests acquired | 100.00% | |||||
Goodwill | $ 1,376 | |||||
Indemnification asset, amount | 95 | |||||
Transaction costs | $ 22 | |||||
Cash | 60 | |||||
Accounts receivable | 38 | |||||
RMS | MA | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 1,286 | |||||
RMS | MIS | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 90 | |||||
Cortera | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition interests acquired | 100.00% | |||||
Goodwill | $ 79 | |||||
Cash | 4 | |||||
Accounts receivable | $ 2 |
Acquisitions - Total Considerat
Acquisitions - Total Consideration Relating to Acquisition (Details) - USD ($) $ in Millions | Sep. 15, 2021 | Mar. 19, 2021 |
RMS | ||
Business Acquisition [Line Items] | ||
Cash paid at closing | $ 1,922 | |
Replacement equity compensation awards | 5 | |
Total consideration | $ 1,927 | |
Cortera | ||
Business Acquisition [Line Items] | ||
Cash paid at closing | $ 138 | |
Additional consideration to be paid to sellers | 1 | |
Total consideration | $ 139 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Sep. 15, 2021 | Mar. 19, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 6,039 | $ 5,999 | $ 4,556 | ||
RMS | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 60 | ||||
Accounts receivable | 38 | ||||
Other current assets | 11 | ||||
Property and equipment, net | 13 | ||||
Operating lease right-of-use assets | 64 | ||||
Total intangible assets | 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 | (214) | ||||
Uncertain tax positions | (96) | ||||
Other liabilities | (2) | ||||
Total liabilities | (561) | ||||
Net assets acquired | $ 1,927 | ||||
Acquired finite-lived intangible asset, useful life | 18 years | ||||
RMS | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 518 | ||||
Liabilities: | |||||
Finite-lived intangible asset, useful life | 23 years | ||||
RMS | Product technology | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 212 | ||||
Liabilities: | |||||
Finite-lived intangible asset, useful life | 7 years | ||||
RMS | Trade names | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 49 | ||||
Liabilities: | |||||
Finite-lived intangible asset, useful life | 9 years | ||||
Cortera | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 4 | ||||
Accounts receivable | 2 | ||||
Current assets | 7 | ||||
Total intangible assets | 57 | ||||
Goodwill | 79 | ||||
Deferred tax assets, net | 16 | ||||
Other assets | 2 | ||||
Liabilities: | |||||
Accounts payable and accrued liabilities | (1) | ||||
Deferred revenue | (4) | ||||
Deferred tax liabilities | (15) | ||||
Other liabilities | (2) | ||||
Total liabilities | (22) | ||||
Net assets acquired | $ 139 | ||||
Acquired finite-lived intangible asset, useful life | 11 years | ||||
Cortera | Database | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 38 | ||||
Liabilities: | |||||
Finite-lived intangible asset, useful life | 10 years | ||||
Cortera | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 9 | ||||
Liabilities: | |||||
Finite-lived intangible asset, useful life | 18 years | ||||
Cortera | Product technology | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 9 | ||||
Liabilities: | |||||
Finite-lived intangible asset, useful life | 8 years | ||||
Cortera | Trade names | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 1 | ||||
Liabilities: | |||||
Finite-lived intangible asset, useful life | 5 years |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - RMS $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Pro forma Revenue | $ 1,680 |
Pro forma Net Income attributable to Moody's | $ 729 |
Derivative Instruments And He_3
Derivative Instruments And Hedging Activities - Schedule of Interest Rate Swap (Details) - Fair Value Hedging - Interest Rate Swap - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Notional Amount | $ 2,050 | $ 1,650 |
2017 Senior Notes due 2023 | ||
Derivative [Line Items] | ||
Nature of Swap | Pay Floating/Receive Fixed | |
Notional Amount | $ 250 | 250 |
Floating Interest Rate | 3-month USD LIBOR | |
2017 Senior Notes due 2028 | ||
Derivative [Line Items] | ||
Nature of Swap | Pay Floating/Receive Fixed | |
Notional Amount | $ 500 | 500 |
Floating Interest Rate | 3-month USD LIBOR | |
2020 Senior Notes due 2025 | ||
Derivative [Line Items] | ||
Nature of Swap | Pay Floating/Receive Fixed | |
Notional Amount | $ 300 | 300 |
Floating Interest Rate | 6-month USD LIBOR | |
2014 Senior Notes due 2044 | ||
Derivative [Line Items] | ||
Nature of Swap | Pay Floating/Receive Fixed | |
Notional Amount | $ 300 | 300 |
Floating Interest Rate | 3-month USD LIBOR | |
2018 Senior Notes due 2048 | ||
Derivative [Line Items] | ||
Nature of Swap | Pay Floating/Receive Fixed | |
Notional Amount | $ 300 | 300 |
Floating Interest Rate | 3-month USD LIBOR | |
2019 Senior Notes due 2029 | ||
Derivative [Line Items] | ||
Nature of Swap | Pay Floating/Receive Fixed | |
Notional Amount | $ 400 | $ 0 |
Floating Interest Rate | SOFR |
Derivative Instruments And He_4
Derivative Instruments And Hedging Activities - Summary of Net Gain (Loss) on Interest Rate Swaps Designated in Fair Value Hedge (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest expense, net | $ (53) | $ (7) |
Designated as Hedging Instrument | Interest Rate Swap | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value changes on interest rate swaps | (85) | (24) |
Fair value changes on hedged debt | 85 | 24 |
Designated as Hedging Instrument | Interest Rate Swap | Interest Expense | Fair Value hedge Net Interest Settlements and Accruals | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net interest settlements and accruals on interest rate swaps | $ 6 | $ 5 |
Derivative Instruments And He_5
Derivative Instruments And Hedging Activities - Additional Information (Detail) | 1 Months Ended | ||||
Jan. 31, 2020USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2022EUR (€) | Dec. 31, 2021USD ($) | Apr. 30, 2020 | |
Derivative [Line Items] | |||||
Cumulative loss | $ 471,000,000 | $ 410,000,000 | |||
Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Cumulative loss | (22,000,000) | 26,000,000 | |||
Net Investment Hedging | Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Cumulative loss | (68,000,000) | (21,000,000) | |||
Net Investment Hedging | Designated as Hedging Instrument | Cross-currency swap | |||||
Derivative [Line Items] | |||||
Notional Amount | € | € 2,439,000,000 | ||||
Cumulative loss | (43,000,000) | (19,000,000) | |||
Cash Flow Hedging | Forward Contracts | |||||
Derivative [Line Items] | |||||
Cumulative loss | $ 68,000,000 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Cumulative loss | 46,000,000 | 47,000,000 | |||
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swap | |||||
Derivative [Line Items] | |||||
Cumulative loss | $ (2,000,000) | $ (2,000,000) | |||
Cash Flow Hedging | Designated as Hedging Instrument | Forward Contracts | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 300,000,000 | ||||
Forward interest rate | 2.0103% | ||||
Debt instrument, term | 30 years | ||||
1.75% 2015 Senior Notes, due 2027 | |||||
Derivative [Line Items] | |||||
Notes payable, interest rate | 1.75% | 1.75% | 1.75% | ||
1.75% 2015 Senior Notes, due 2027 | Net Investment Hedging | Designated as Hedging Instrument | Cross-currency swap | |||||
Derivative [Line Items] | |||||
Notional Amount | € | € 500,000,000 | ||||
2019 Senior Notes Due 2030 | Net Investment Hedging | Designated as Hedging Instrument | Cross-currency swap | |||||
Derivative [Line Items] | |||||
Notional Amount | € | € 750,000,000 | ||||
3.25% 2020 Senior Notes, due 2050 | |||||
Derivative [Line Items] | |||||
Notes payable, interest rate | 3.25% | 3.25% | 3.25% |
Derivative Instruments And He_6
Derivative Instruments And Hedging Activities - Summary of Notional Amounts of Outstanding Cross Currency Swap (Detail) - Cross-currency swap - Net Investment Hedging € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2022EUR (€) | Dec. 31, 2021EUR (€) | |
4.45% | ||||
Derivative [Line Items] | ||||
Nature of Swap | Pay Fixed/Receive Fixed | Pay Fixed/Receive Fixed | ||
3-month U.S. LIBOR | ||||
Derivative [Line Items] | ||||
Nature of Swap | Pay Floating/Receive Floating | Pay Floating/Receive Floating | ||
Based on SOFR | ||||
Derivative [Line Items] | ||||
Nature of Swap | Pay Floating/Receive Floating | |||
Currency Paid | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 2,439 | € 2,088 | ||
Currency Paid | 2.16% | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 909 | € 909 | ||
Weighted Average Fixed Interest Rate | 2.16% | 2.16% | 2.16% | 2.16% |
Currency Paid | 3-month EURIBOR One | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 1,179 | € 1,179 | ||
Weighted Average Floating Interest Rate | Based on 3-month EURIBOR | Based on 3-month EURIBOR | ||
Currency Paid | 3-month EURIBOR Two | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 351 | |||
Weighted Average Floating Interest Rate | Based on 3-month EURIBOR | |||
Currency Received | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 2,800 | $ 2,400 | ||
Currency Received | 4.45% | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 1,050 | $ 1,050 | ||
Weighted Average Fixed Interest Rate | 4.45% | 4.45% | 4.45% | 4.45% |
Currency Received | 3-month U.S. LIBOR | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 1,350 | $ 1,350 | ||
Weighted Average Floating Interest Rate | Based on 3-month USD LIBOR | Based on 3-month USD LIBOR | ||
Currency Received | Based on SOFR | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 400 | |||
Weighted Average Floating Interest Rate | Based on SOFR |
Derivative Instruments And He_7
Derivative Instruments And Hedging Activities - Schedule of Notional Amount of Net Investment Hedges (Detail) - Designated as Hedging Instrument - Cross-currency swap € in Millions | Mar. 31, 2022EUR (€) |
Net Investment Hedging | |
Derivative [Line Items] | |
Notional Amount | € 2,439 |
2023 | |
Derivative [Line Items] | |
Notional Amount | 442 |
2024 | |
Derivative [Line Items] | |
Notional Amount | 443 |
2026 | |
Derivative [Line Items] | |
Notional Amount | 450 |
2027 | |
Derivative [Line Items] | |
Notional Amount | 246 |
2028 | |
Derivative [Line Items] | |
Notional Amount | 507 |
2029 | |
Derivative [Line Items] | |
Notional Amount | € 351 |
Derivative Instruments And He_8
Derivative Instruments And Hedging Activities - Gains (Losses) Recognized in AOCI and Reclassified from AOCI on Derivatives (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | $ 47 | $ 133 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 1 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | (1) | (1) |
Total, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | (1) | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 10 | 10 |
Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Investment Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 47 | 133 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 1 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 10 | 10 |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 0 | 0 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | (1) | (1) |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 |
FX forwards | Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Investment Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 0 | 16 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 1 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 |
Cross-currency swap | Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Investment Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 24 | 72 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 10 | 10 |
Long-term debt | Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Investment Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 23 | 45 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 |
Interest rate contract | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 0 | 0 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | (1) | (1) |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | $ 0 | $ 0 |
Derivative Instruments And He_9
Derivative Instruments And Hedging Activities - Cumulative Amount of Unrecognized Hedge Losses Recorded in AOCI (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | $ (471) | $ (410) |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 22 | (26) |
Net Investment Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 68 | 21 |
Net Investment Hedging | Cross currency swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 43 | 19 |
Net Investment Hedging | FX forwards | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 29 | 29 |
Net Investment Hedging | Long-term debt | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | (4) | (27) |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | (46) | (47) |
Cash Flow Hedging | Cross currency swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 2 | 2 |
Cash Flow Hedging | Interest rate contract | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | $ (48) | $ (49) |
Derivative Instruments And H_10
Derivative Instruments And Hedging Activities - Summary of Notional Amounts of Outstanding Foreign Exchange Forwards (Detail) - Not Designated as Accounting Hedges ₽ in Millions, € in Millions, ₨ in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions | Mar. 31, 2022USD ($) | Mar. 31, 2022EUR (€) | Mar. 31, 2022GBP (£) | Mar. 31, 2022JPY (¥) | Mar. 31, 2022CAD ($) | Mar. 31, 2022SGD ($) | Mar. 31, 2022RUB (₽) | Mar. 31, 2022INR (₨) | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021GBP (£) | Dec. 31, 2021JPY (¥) | Dec. 31, 2021CAD ($) | Dec. 31, 2021SGD ($) | Dec. 31, 2021RUB (₽) | Dec. 31, 2021INR (₨) |
Contracts to sell USD for GBP | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | $ 183 | £ 135 | $ 126 | £ 92 | ||||||||||||
Contracts to sell USD for Japanese yen | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 22 | ¥ 2,500 | 22 | ¥ 2,500 | ||||||||||||
Contracts to sell USD for Canadian dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 106 | $ 133 | 120 | $ 150 | ||||||||||||
Contracts to sell USD for Singapore dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 74 | $ 100 | 67 | $ 90 | ||||||||||||
Contracts to sell USD for euros | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 431 | € 380 | 364 | € 315 | ||||||||||||
Contracts to sell USD for Russian ruble | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 26 | ₽ 2,400 | 16 | ₽ 1,200 | ||||||||||||
Contracts to sell USD for Indian rupee | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 24 | ₨ 1,800 | 7 | ₨ 500 | ||||||||||||
Contracts to sell GBP for USD | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | $ 0 | £ 0 | $ 231 | £ 172 |
Derivative Instruments And H_11
Derivative Instruments And Hedging Activities - Summary of Net Gain (Loss) on Foreign Exchange Forwards Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other non-operating income, net | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign exchange forwards amount of gain (loss) recognized in income | $ (19) | $ (6) |
Derivative Instruments And H_12
Derivative Instruments And Hedging Activities - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 78 | $ 67 |
Liabilities | 1,516 | 1,473 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 77 | 66 |
Liabilities | 103 | 40 |
Designated as Hedging Instrument | Long-term debt | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 1,391 | 1,421 |
Designated as Hedging Instrument | Cross-currency swap | Other current assets | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 9 | 0 |
Designated as Hedging Instrument | Cross-currency swap | Other assets | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 66 | 53 |
Designated as Hedging Instrument | Cross-currency swap | Other liabilities | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 6 | 17 |
Designated as Hedging Instrument | Interest Rate Swap | Other current assets | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 2 | 0 |
Designated as Hedging Instrument | Interest Rate Swap | Other assets | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 13 |
Designated as Hedging Instrument | Interest Rate Swap | Other liabilities | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 97 | 23 |
Not Designated as Accounting Hedges | FX forwards | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1 | 1 |
Not Designated as Accounting Hedges | FX forwards | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ 22 | $ 12 |
Goodwill And Other Acquired I_3
Goodwill And Other Acquired Intangible Assets - Activity in Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance, goodwill gross | $ 6,011 | $ 4,568 |
Beginning balance, Accumulated impairment charge | (12) | (12) |
Beginning balance, goodwill net | 5,999 | 4,556 |
Additions/ adjustments | 107 | 1,615 |
Foreign currency translation adjustments | (67) | (172) |
Ending balance, goodwill gross | 6,051 | 6,011 |
Ending balance, Accumulated impairment charge | (12) | (12) |
Ending balance, goodwill net | 6,039 | 5,999 |
MIS | ||
Goodwill [Roll Forward] | ||
Beginning balance, goodwill gross | 396 | 311 |
Beginning balance, Accumulated impairment charge | 0 | 0 |
Beginning balance, goodwill net | 396 | 311 |
Additions/ adjustments | 0 | 90 |
Foreign currency translation adjustments | (1) | (5) |
Ending balance, goodwill gross | 395 | 396 |
Ending balance, Accumulated impairment charge | 0 | 0 |
Ending balance, goodwill net | 395 | 396 |
MA | ||
Goodwill [Roll Forward] | ||
Beginning balance, goodwill gross | 5,615 | 4,257 |
Beginning balance, Accumulated impairment charge | (12) | (12) |
Beginning balance, goodwill net | 5,603 | 4,245 |
Additions/ adjustments | 107 | 1,525 |
Foreign currency translation adjustments | (66) | (167) |
Ending balance, goodwill gross | 5,656 | 5,615 |
Ending balance, Accumulated impairment charge | (12) | (12) |
Ending balance, goodwill net | $ 5,644 | $ 5,603 |
Goodwill And Other Acquired I_4
Goodwill And Other Acquired Intangible Assets - Acquired Intangible Assets and Related Amortization (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, net | $ 2,422 | $ 2,467 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 2,085 | 2,101 |
Accumulated amortization | (400) | (381) |
Acquired intangible assets, net | 1,685 | 1,720 |
Software/product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 679 | 663 |
Accumulated amortization | (233) | (219) |
Acquired intangible assets, net | 446 | 444 |
Database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 179 | 179 |
Accumulated amortization | (51) | (46) |
Acquired intangible assets, net | 128 | 133 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 205 | 207 |
Accumulated amortization | (51) | (47) |
Acquired intangible assets, net | 154 | 160 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 54 | 54 |
Accumulated amortization | (45) | (44) |
Acquired intangible assets, net | $ 9 | $ 10 |
Goodwill And Other Acquired I_5
Goodwill And Other Acquired Intangible Assets - Amortization Expense Relating to Acquired Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 51 | $ 35 |
Goodwill And Other Acquired I_6
Goodwill And Other Acquired Intangible Assets - Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization (Detail) $ in Millions | Mar. 31, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 (After March 31,) | $ 147 |
2023 | 191 |
2024 | 190 |
2025 | 180 |
2026 | 178 |
Thereafter | 1,536 |
Total estimated future amortization | $ 2,422 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Carried at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Derivatives | $ 78 | $ 67 |
Mutual funds | 64 | 73 |
Total | 142 | 140 |
Liabilities: | ||
Derivatives | 125 | 52 |
Total | 125 | 52 |
Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Mutual funds | 64 | 73 |
Total | 64 | 73 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets: | ||
Derivatives | 78 | 67 |
Mutual funds | 0 | 0 |
Total | 78 | 67 |
Liabilities: | ||
Derivatives | 125 | 52 |
Total | $ 125 | $ 52 |
Other Balance Sheet and State_3
Other Balance Sheet and Statement of Operations Information - Additional Details Related to Certain Balance Sheet Captions (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other current assets: | ||
Prepaid taxes | $ 113 | $ 112 |
Prepaid expenses | 104 | 99 |
Capitalized costs to obtain and fulfill sales contracts | 98 | 103 |
Derivative instruments designated as accounting hedges | 11 | 0 |
Other | 59 | 75 |
Total other current assets | 385 | 389 |
Other assets: | ||
Investments in non-consolidated affiliates | 450 | 443 |
Deposits for real-estate leases | 15 | 14 |
Indemnification assets related to acquisitions | 108 | 106 |
Mutual funds and fixed deposits | 73 | 89 |
Company owned life insurance (at contract value) | 49 | 37 |
Costs to obtain sales contracts | 152 | 138 |
Derivative instruments designated as accounting hedges | 66 | 66 |
Pension and other retirement employee benefits | 74 | 77 |
Other | 74 | 64 |
Total other assets | 1,061 | 1,034 |
Accounts payable and accrued liabilities: | ||
Salaries and benefits | 220 | 211 |
Incentive compensation | 72 | 324 |
Customer credits, advanced payments and advanced billings | 116 | 100 |
Dividends | 3 | 6 |
Professional service fees | 69 | 75 |
Interest accrued on debt | 42 | 85 |
Accounts payable | 42 | 47 |
Income taxes | 141 | 115 |
Pension and other retirement employee benefits | 7 | 7 |
Accrued royalties | 21 | 36 |
Foreign exchange forwards on certain assets and liabilities | 22 | 12 |
Restructuring liability | 2 | 4 |
Other | 99 | 120 |
Total accounts payable and accrued liabilities | 856 | 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 Balance Sheet and State_4
Other Balance Sheet and Statement of Operations Information - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Other Balance Sheet And Statement Of Operations Information [Abstract] | |
Expected credit losses | $ 12 |
Other Balance Sheet and State_5
Other Balance Sheet and Statement of Operations Information - Investments in Non-Consolidated Affiliates (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other Balance Sheet And Statement Of Operations Information [Abstract] | ||
Equity method investments | $ 128 | $ 121 |
Investments measured using the measurement alternative | 318 | 318 |
Other | 4 | 4 |
Total investments in non-consolidated affiliates | $ 450 | $ 443 |
Other Balance Sheet and State_6
Other Balance Sheet and Statement of Operations Information - Other Non-Operating Interest (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Balance Sheet And Statement Of Operations Information [Abstract] | ||
FX gain (loss) | $ 0 | $ (2) |
Net periodic pension costs - other components | 6 | 4 |
Income from investments in non-consolidated affiliates | 2 | 8 |
Other | (2) | 6 |
Total | $ 6 | $ 16 |
Comprehensive Income And Accu_3
Comprehensive Income And Accumulated Other Comprehensive Loss - Reclassification out of AOCI (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other non-operating income, net | $ 6 | $ 16 |
Provision for income taxes | (111) | (126) |
Net income attributable to Moody's | 498 | 736 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net income attributable to Moody's | (1) | (2) |
Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Provision for income taxes | 0 | 0 |
Net income attributable to Moody's | (1) | (1) |
Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Interest rate contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other non-operating income, net | (1) | (1) |
Net Investment Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Provision for income taxes | 0 | 0 |
Net income attributable to Moody's | 0 | 1 |
Net Investment Hedges | Reclassification out of Accumulated Other Comprehensive Income | FX forwards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other non-operating income, net | 0 | 1 |
Total pension and other retirement benefits | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Provision for income taxes | 0 | 1 |
Net income attributable to Moody's | 0 | (2) |
Amortization of actuarial losses and prior service costs included in net income | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other non-operating income, net | $ 0 | $ (3) |
Comprehensive Income And Accu_4
Comprehensive Income And Accumulated Other Comprehensive Loss - Changes in Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,727 | |
Ending balance | 2,394 | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (410) | $ (432) |
Other comprehensive income/(loss) before reclassifications | (62) | (10) |
Amounts reclassified from AOCL | 1 | 2 |
Other comprehensive income/(loss) | (61) | (8) |
Ending balance | (471) | (440) |
Pension and Other Retirement Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (49) | (118) |
Other comprehensive income/(loss) before reclassifications | (2) | 0 |
Amounts reclassified from AOCL | 0 | 2 |
Other comprehensive income/(loss) | (2) | 2 |
Ending balance | (51) | (116) |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (47) | (49) |
Other comprehensive income/(loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCL | 1 | 1 |
Other comprehensive income/(loss) | 1 | 1 |
Ending balance | (46) | (48) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (335) | (45) |
Other comprehensive income/(loss) before reclassifications | (107) | (143) |
Amounts reclassified from AOCL | 0 | 0 |
Other comprehensive income/(loss) | (107) | (143) |
Ending balance | (442) | (188) |
Net Investment Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 21 | (220) |
Other comprehensive income/(loss) before reclassifications | 47 | 133 |
Amounts reclassified from AOCL | 0 | (1) |
Other comprehensive income/(loss) | 47 | 132 |
Ending balance | $ 68 | $ (88) |
Indebtedness - Summary of Total
Indebtedness - Summary of Total Indebtedness (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal Amount | $ 7,991 | $ 7,521 |
Fair Value of Interest Rate Swap | (95) | (10) |
Unamortized (Discount) Premium | (57) | (48) |
Unamortized Debt Issuance Costs | (53) | (50) |
Carrying Amount | 7,786 | 7,413 |
Current portion | (501) | 0 |
Long term debt | $ 7,285 | $ 7,413 |
4.875% 2013 Senior Notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.875% | 4.875% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (1) | (1) |
Unamortized Debt Issuance Costs | (1) | (1) |
Carrying Amount | $ 498 | $ 498 |
5.25% 2014 Senior Notes, due 2044 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 5.25% | 5.25% |
Principal Amount | $ 600 | $ 600 |
Fair Value of Interest Rate Swap | (24) | (7) |
Unamortized (Discount) Premium | 3 | 3 |
Unamortized Debt Issuance Costs | (5) | (5) |
Carrying Amount | $ 574 | $ 591 |
1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 1.75% | 1.75% |
Principal Amount | $ 556 | $ 568 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | 0 | 0 |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 554 | $ 566 |
2.625% 2017 Senior Notes, due 2023 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.625% | 2.625% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | 2 | 5 |
Unamortized (Discount) Premium | 0 | 0 |
Unamortized Debt Issuance Costs | (1) | (1) |
Carrying Amount | $ 501 | $ 504 |
3.25% 2017 Senior Notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.25% | 3.25% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | (16) | 8 |
Unamortized (Discount) Premium | (3) | (3) |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 479 | $ 503 |
4.25% 2018 Senior Notes, due 2029 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.25% | 4.25% |
Principal Amount | $ 400 | $ 400 |
Fair Value of Interest Rate Swap | (12) | 0 |
Unamortized (Discount) Premium | (2) | (2) |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 384 | $ 396 |
4.875% 2018 Senior Notes, due 2048 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.875% | 4.875% |
Principal Amount | $ 400 | $ 400 |
Fair Value of Interest Rate Swap | (25) | (7) |
Unamortized (Discount) Premium | (6) | (6) |
Unamortized Debt Issuance Costs | (4) | (4) |
Carrying Amount | $ 365 | $ 383 |
0.950% Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 0.95% | 0.95% |
Principal Amount | $ 835 | $ 853 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (2) | (2) |
Unamortized Debt Issuance Costs | (5) | (5) |
Carrying Amount | $ 828 | $ 846 |
3.75% 2020 Senior Notes, due 2025 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.75% | 3.75% |
Principal Amount | $ 700 | $ 700 |
Fair Value of Interest Rate Swap | (20) | (9) |
Unamortized (Discount) Premium | (1) | (1) |
Unamortized Debt Issuance Costs | (3) | (4) |
Carrying Amount | $ 676 | $ 686 |
3.25% 2020 Senior Notes, due 2050 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.25% | 3.25% |
Principal Amount | $ 300 | $ 300 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (4) | (4) |
Unamortized Debt Issuance Costs | (3) | (3) |
Carrying Amount | $ 293 | $ 293 |
2.55% 2020 Senior Notes, due 2060 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.55% | 2.55% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (4) | (4) |
Unamortized Debt Issuance Costs | (5) | (5) |
Carrying Amount | $ 491 | $ 491 |
2.00% 2021 Senior Notes, due 2031 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.00% | 2.00% |
Principal Amount | $ 600 | $ 600 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (8) | (8) |
Unamortized Debt Issuance Costs | (5) | (5) |
Carrying Amount | $ 587 | $ 587 |
2.75% 2021 Senior Notes, due 2041 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.75% | 2.75% |
Principal Amount | $ 600 | $ 600 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (13) | (13) |
Unamortized Debt Issuance Costs | (5) | (6) |
Carrying Amount | $ 582 | $ 581 |
3.10% 2021 Senior Notes, due 2061 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.10% | 3.10% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (7) | (7) |
Unamortized Debt Issuance Costs | (5) | (5) |
Carrying Amount | $ 488 | $ 488 |
3.75% 2022 Senior Notes, due 2052 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.75% | |
Principal Amount | $ 500 | |
Fair Value of Interest Rate Swap | 0 | |
Unamortized (Discount) Premium | (9) | |
Unamortized Debt Issuance Costs | (5) | |
Carrying Amount | $ 486 |
Indebtedness - Principal Paymen
Indebtedness - Principal Payments Due on Long-Term Borrowings (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
2022 (After March 31,) | $ 0 | |
2023 | 500 | |
2024 | 500 | |
2025 | 700 | |
2026 | 0 | |
Thereafter | 6,291 | |
Total principal payment | 7,991 | $ 7,521 |
4.875% 2013 Senior Notes, due 2024 | ||
Debt Instrument [Line Items] | ||
2024 | 500 | |
Total principal payment | 500 | 500 |
5.25% 2014 Senior Notes, due 2044 | ||
Debt Instrument [Line Items] | ||
Thereafter | 600 | |
Total principal payment | 600 | 600 |
1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Thereafter | 556 | |
Total principal payment | 556 | 568 |
2.625% 2017 Senior Notes, due 2023 | ||
Debt Instrument [Line Items] | ||
2023 | 500 | |
Total principal payment | 500 | 500 |
3.25% 2017 Senior Notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Thereafter | 500 | |
Total principal payment | 500 | 500 |
4.25% 2018 Senior Notes, due 2029 | ||
Debt Instrument [Line Items] | ||
Thereafter | 400 | |
Total principal payment | 400 | 400 |
4.875% 2018 Senior Notes, due 2048 | ||
Debt Instrument [Line Items] | ||
Thereafter | 400 | |
Total principal payment | 400 | 400 |
0.950% Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Thereafter | 835 | |
Total principal payment | 835 | 853 |
3.75% 2020 Senior Notes, due 2025 | ||
Debt Instrument [Line Items] | ||
2025 | 700 | |
Total principal payment | 700 | 700 |
3.25% 2020 Senior Notes, due 2050 | ||
Debt Instrument [Line Items] | ||
Thereafter | 300 | |
Total principal payment | 300 | 300 |
2.55% 2020 Senior Notes, due 2060 | ||
Debt Instrument [Line Items] | ||
Thereafter | 500 | |
Total principal payment | 500 | 500 |
2.00% 2021 Senior Notes, due 2031 | ||
Debt Instrument [Line Items] | ||
Thereafter | 600 | |
Total principal payment | 600 | 600 |
2.75% 2021 Senior Notes, due 2041 | ||
Debt Instrument [Line Items] | ||
Thereafter | 600 | |
Total principal payment | 600 | 600 |
3.10% 2021 Senior Notes, due 2061 | ||
Debt Instrument [Line Items] | ||
Thereafter | 500 | |
Total principal payment | 500 | $ 500 |
3.75% 2022 Senior Notes, due 2052 | ||
Debt Instrument [Line Items] | ||
Thereafter | 500 | |
Total principal payment | $ 500 |
Indebtedness - Summary of Compo
Indebtedness - Summary of Components of Interest as Presented in Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Income | $ 2 | $ 3 |
Expense on borrowings | (48) | (41) |
Income (expense) on UTPs and other tax related liabilities | (3) | 35 |
Net periodic pension costs - interest component | (4) | (4) |
Interest expense, net | (53) | (7) |
Interest paid | $ 78 | 73 |
Interest accrued on UTPs | $ 40 |
Indebtedness - Fair Value and C
Indebtedness - Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Carrying Amount | $ 7,786 | $ 7,413 |
Estimated Fair Value | $ 7,755 | $ 7,982 |
4.875% 2013 Senior Notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.875% | 4.875% |
Carrying Amount | $ 498 | $ 498 |
Estimated Fair Value | $ 516 | $ 538 |
5.25% 2014 Senior Notes, due 2044 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 5.25% | 5.25% |
Carrying Amount | $ 574 | $ 591 |
Estimated Fair Value | $ 697 | $ 805 |
1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 1.75% | 1.75% |
Carrying Amount | $ 554 | $ 566 |
Estimated Fair Value | $ 565 | $ 607 |
2.625% 2017 Senior Notes, due 2023 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.625% | 2.625% |
Carrying Amount | $ 501 | $ 504 |
Estimated Fair Value | $ 502 | $ 509 |
3.25% 2017 Senior Notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.25% | 3.25% |
Carrying Amount | $ 479 | $ 503 |
Estimated Fair Value | $ 501 | $ 539 |
4.25% 2018 Senior Notes, due 2029 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.25% | 4.25% |
Carrying Amount | $ 384 | $ 396 |
Estimated Fair Value | $ 420 | $ 451 |
4.875% 2018 Senior Notes, due 2048 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.875% | 4.875% |
Carrying Amount | $ 365 | $ 383 |
Estimated Fair Value | $ 457 | $ 526 |
0.950% Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 0.95% | 0.95% |
Carrying Amount | $ 828 | $ 846 |
Estimated Fair Value | $ 787 | $ 866 |
3.75% 2020 Senior Notes, due 2025 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.75% | 3.75% |
Carrying Amount | $ 676 | $ 686 |
Estimated Fair Value | $ 713 | $ 750 |
3.25% 2020 Senior Notes, due 2050 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.25% | 3.25% |
Carrying Amount | $ 293 | $ 293 |
Estimated Fair Value | $ 269 | $ 311 |
2.55% 2020 Senior Notes, due 2060 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.55% | 2.55% |
Carrying Amount | $ 491 | $ 491 |
Estimated Fair Value | $ 370 | $ 432 |
2.00% 2021 Senior Notes, due 2031 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.00% | 2.00% |
Carrying Amount | $ 587 | $ 587 |
Estimated Fair Value | $ 531 | $ 581 |
2.75% 2021 Senior Notes, due 2041 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.75% | 2.75% |
Carrying Amount | $ 582 | $ 581 |
Estimated Fair Value | $ 515 | $ 579 |
3.10% 2021 Senior Notes, due 2061 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.10% | 3.10% |
Carrying Amount | $ 488 | $ 488 |
Estimated Fair Value | $ 420 | $ 488 |
3.75% 2022 Senior Notes, due 2052 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.75% | |
Carrying Amount | $ 486 | |
Estimated Fair Value | $ 492 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) | Mar. 31, 2022 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term (years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term (years) | 20 years |
Lease Commitments - Components
Lease Commitments - Components of Lease Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 27 | $ 24 |
Sublease income | (2) | (1) |
Variable lease cost | 5 | 5 |
Total lease cost | $ 30 | $ 28 |
Lease Commitments - Operating L
Lease Commitments - Operating Leases Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
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 |
Weighted-average remaining lease term (years) | 5 years 6 months | 5 years 10 months 24 days |
Weighted-average discount rate applied to operating leases (percent) | 3.10% | 3.60% |
Lease Commitments - Operating_2
Lease Commitments - Operating Leases, Future Minimum Payment (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 (After March 31) | $ 91 | |
2023 | 119 | |
2024 | 111 | |
2025 | 96 | |
2026 | 77 | |
After 2026 | 99 | |
Total lease payments (undiscounted) | 593 | |
Less: Interest | 47 | |
Present value of lease liabilities: | 546 | |
Lease liabilities - current | 106 | $ 105 |
Lease liabilities - noncurrent | $ 440 | $ 455 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022lineOfBusinesssegment | |
Segment Reporting Information [Line Items] | |
Number of operating segments (segment) | segment | 2 |
Number of reportable segments | segment | 2 |
MIS | |
Segment Reporting Information [Line Items] | |
Number of lines of businesses | lineOfBusiness | 5 |
MA | |
Segment Reporting Information [Line Items] | |
Number of lines of businesses | lineOfBusiness | 3 |
Segment Information - Financial
Segment Information - Financial Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | $ 1,522 | $ 1,600 |
Operating, SG&A | 788 | 686 |
Adjusted Operating Income | 734 | 914 |
Depreciation and amortization | 78 | 59 |
Restructuring | 0 | 2 |
Operating income | 656 | 853 |
Eliminations | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | (45) | (42) |
Operating, SG&A | (45) | (42) |
Adjusted Operating Income | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Restructuring | 0 | 0 |
MIS | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | 827 | 1,036 |
MIS | Operating Segments | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | 870 | 1,076 |
Operating, SG&A | 360 | 348 |
Adjusted Operating Income | 510 | 728 |
Depreciation and amortization | 18 | 18 |
Restructuring | 0 | 0 |
MA | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | 695 | 564 |
MA | Operating Segments | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | 697 | 566 |
Operating, SG&A | 473 | 380 |
Adjusted Operating Income | 224 | 186 |
Depreciation and amortization | 60 | 41 |
Restructuring | $ 0 | $ 2 |
Segment Information - Consolida
Segment Information - Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,522 | $ 1,600 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 862 | 885 |
Non-U.S. | ||
Segment Reporting Information [Line Items] | ||
Revenue | 660 | 715 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 434 | 478 |
Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Revenue | 135 | 156 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 91 | $ 81 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event | Apr. 26, 2022$ / shares |
Subsequent Event [Line Items] | |
Dividend declared, declaration date | Apr. 26, 2022 |
Dividend declared, per share (in USD per share) | $ 0.70 |
Dividend declared, payable date | Jun. 10, 2022 |
Dividend declared, record date | May 20, 2022 |