Cover Page
Cover Page shares in Millions | 9 Months Ended |
Sep. 30, 2022 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 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) | 183.2 |
Entity Central Index Key | 0001059556 |
Document Fiscal Period Focus | Q3 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,275 | $ 1,526 | $ 4,178 | $ 4,679 |
Expenses | ||||
Operating | 393 | 394 | 1,203 | 1,152 |
Selling, general and administrative | 385 | 395 | 1,124 | 1,015 |
Depreciation and amortization | 83 | 61 | 242 | 180 |
Restructuring | 1 | 0 | 32 | 2 |
Total expenses | 862 | 850 | 2,601 | 2,349 |
Operating income | 413 | 676 | 1,577 | 2,330 |
Non-operating (expense) income, net | ||||
Interest expense, net | (58) | (53) | (166) | (109) |
Other non-operating income (expense), net | 26 | (4) | 22 | 18 |
Total non-operating (expense) income, net | (32) | (57) | (144) | (91) |
Income before provision for income taxes | 381 | 619 | 1,433 | 2,239 |
Provision for income taxes | 78 | 145 | 305 | 452 |
Net income attributable to Moody's | $ 303 | $ 474 | $ 1,128 | $ 1,787 |
Earnings per share attributable to Moody's common shareholders | ||||
Basic (in usd per share) | $ 1.65 | $ 2.55 | $ 6.13 | $ 9.58 |
Diluted (in usd per share) | $ 1.65 | $ 2.53 | $ 6.10 | $ 9.51 |
Weighted average number of shares outstanding | ||||
Basic (in shares) | 183.2 | 186 | 184.1 | 186.6 |
Diluted (in shares) | 183.9 | 187.3 | 184.9 | 188 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 303 | $ 474 | $ 1,128 | $ 1,787 |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation adjustments - Pre Tax | (358) | (124) | (806) | (234) |
Foreign currency translation adjustments - Tax | 6 | 5 | 10 | 9 |
Foreign currency translation adjustments - Net of Tax | (352) | (119) | (796) | (225) |
Foreign currency translation adjustments - reclassification of losses included in net income - Pre tax | 20 | 0 | ||
Foreign currency translation adjustments - reclassification of losses included in net income, Tax | 0 | 0 | ||
Foreign currency translation adjustments - reclassification of losses included in net income - Net of Tax | 20 | 0 | ||
Net gains on net investment hedges - Pre Tax | 256 | 99 | 561 | 233 |
Net gains on net investment hedges - Tax | (63) | (26) | (140) | (56) |
Net gains on net investment hedges - Net of Tax | 193 | 73 | 421 | 177 |
Net investment hedges - reclassification of gains included in net income - Pre Tax | 0 | (2) | ||
Net investment hedges - reclassification of gains included in net income - Tax | 0 | 1 | ||
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 | 2 | 2 |
Reclassification of losses included in net income - Tax | (1) | 0 | (1) | 0 |
Reclassification of losses included in net income - Net of Tax | 0 | 1 | 1 | 2 |
Pension and Other Retirement Benefits: | ||||
Amortization of actuarial losses/prior service costs and settlement charge included in net income - Pre Tax | 1 | 3 | 2 | 16 |
Amortization of actuarial losses/prior service costs and settlement charge included in net income - Tax | 0 | (1) | 0 | (4) |
Amortization of actuarial losses/prior service costs and settlement charge included in net income - Net of Tax | 1 | 2 | 2 | 12 |
Net actuarial gains and prior service costs - Pre Tax | 0 | 4 | 3 | 4 |
Net actuarial gains and prior service costs - Tax | 0 | (1) | (1) | (1) |
Net actuarial gains and prior service costs - Net of Tax | 0 | 3 | 2 | 3 |
Total other comprehensive (loss) income - Pre Tax | (100) | (17) | (218) | 19 |
Total other comprehensive (loss) income - Tax | (58) | (23) | (132) | (51) |
Total other comprehensive (loss) income - Net of Tax | (158) | (40) | (350) | (32) |
Comprehensive income | 145 | 434 | 778 | 1,755 |
Less: comprehensive (loss) income attributable to noncontrolling interests | (9) | (3) | (12) | (2) |
Comprehensive Income Attributable to Moody's | $ 154 | $ 437 | $ 790 | $ 1,757 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,656 | $ 1,811 |
Short-term investments | 89 | 91 |
Accounts receivable, net of allowance for credit losses of $42 in 2022 and $32 in 2021 | 1,518 | 1,720 |
Other current assets | 463 | 389 |
Total current assets | 3,726 | 4,011 |
Property and equipment, net of accumulated depreciation of $1,078 in 2022 and $1,010 in 2021 | 472 | 347 |
Operating lease right-of-use assets | 387 | 438 |
Goodwill | 5,617 | 5,999 |
Intangible assets, net | 2,182 | 2,467 |
Deferred tax assets, net | 336 | 384 |
Other assets | 1,219 | 1,034 |
Total assets | 13,939 | 14,680 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 807 | 1,142 |
Current portion of operating lease liabilities | 104 | 105 |
Deferred revenue | 1,155 | 1,249 |
Total current liabilities | 2,066 | 2,496 |
Non-current portion of deferred revenue | 78 | 86 |
Long-term debt | 7,476 | 7,413 |
Deferred tax liabilities, net | 604 | 488 |
Uncertain tax positions | 308 | 388 |
Operating lease liabilities | 389 | 455 |
Other liabilities | 588 | 438 |
Total liabilities | 11,509 | 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 | 1,013 | 885 |
Retained earnings | 13,501 | 12,762 |
Treasury stock, at cost; 159,739,888 and 157,262,484 shares of common stock at September 30, 2022 and December 31, 2021 | (11,514) | (10,513) |
Accumulated other comprehensive loss | (748) | (410) |
Total Moody's shareholders' equity | 2,255 | 2,727 |
Noncontrolling interests | 175 | 189 |
Total shareholders' equity | 2,430 | 2,916 |
Total liabilities, noncontrolling interests and shareholders' equity | 13,939 | 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 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts receivable, allowances | $ 42 | $ 32 |
Accumulated depreciation, property and equipment | $ 1,078 | $ 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) | 159,739,888 | 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 | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net Income | $ 1,128 | $ 1,787 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 242 | 180 |
Stock-based compensation | 130 | 127 |
Deferred income taxes | 58 | (79) |
FX translation losses reclassified to net income | 20 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 123 | (137) |
Other current assets | (140) | 64 |
Other assets | 10 | (7) |
Lease obligations | (14) | (10) |
Accounts payable and accrued liabilities | (358) | (10) |
Deferred revenue | (20) | (75) |
Uncertain tax positions | (41) | (79) |
Other liabilities | (41) | (55) |
Net cash provided by operating activities | 1,097 | 1,706 |
Cash flows from investing activities | ||
Capital additions | (204) | (77) |
Purchases of investments | (244) | (137) |
Sales and maturities of investments | 153 | 102 |
Cash paid for acquisitions, net of cash acquired | (97) | (2,026) |
Receipts from settlements of net investment hedges | 220 | 26 |
Payments for settlements of net investment hedges | 0 | (49) |
Net cash used in investing activities | (172) | (2,161) |
Cash flows from financing activities | ||
Issuance of notes | 988 | 1,178 |
Repayment of notes | (500) | 0 |
Proceeds from stock-based compensation plans | 21 | 30 |
Repurchase of shares related to stock-based compensation | (85) | (82) |
Treasury shares | (983) | (628) |
Dividends | (387) | (347) |
Debt issuance costs and related fees | (10) | (13) |
Dividends to noncontrolling interest | (1) | (3) |
Net cash (used in) provided by financing activities | (957) | 135 |
Effect of exchange rate changes on cash and cash equivalents | (123) | (38) |
Decrease in cash and cash equivalents | (155) | (358) |
Cash and cash equivalents, beginning of period | 1,811 | 2,597 |
Cash and cash equivalents, end of period | $ 1,656 | $ 2,239 |
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 | |
Common stock, shares issued beginning balance (in shares) at Dec. 31, 2020 | 342.9 | ||||||||
Treasury stock, common, beginning balance (shares) at Dec. 31, 2020 | (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 | 1,787 | 1,787 | 1,787 | 0 | |||||
Dividends | (350) | (347) | (347) | (3) | |||||
Stock-based compensation | 127 | 127 | 127 | ||||||
Shares issued for stock-based compensation plans at average cost, net | (48) | (48) | (30) | $ (18) | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 0.7 | ||||||||
Treasury shares repurchased | (628) | (628) | $ (628) | ||||||
Treasury shares repurchased (in shares) | (1.9) | ||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax) | (49) | (47) | (47) | (2) | |||||
Net actuarial gains and prior service cost (net of tax) | 3 | 3 | 3 | ||||||
Amortization of prior service costs/actuarial losses and settlement charge | 12 | 12 | 12 | ||||||
Net realized and unrealized gain on cash flow hedges | 2 | 2 | 2 | ||||||
Common stock, shares issued ending balance (in shares) at Sep. 30, 2021 | 342.9 | ||||||||
Treasury stock, common, ending balance (shares) at Sep. 30, 2021 | (157) | ||||||||
Ending Balance at Sep. 30, 2021 | 2,619 | 2,430 | $ 3 | 832 | 12,451 | $ (10,394) | (462) | 189 | |
Common stock, shares issued beginning balance (in shares) at Jun. 30, 2021 | 342.9 | ||||||||
Treasury stock, common, beginning balance (shares) at Jun. 30, 2021 | (156.7) | ||||||||
Beginning Balance at Jun. 30, 2021 | 2,380 | 2,186 | $ 3 | 784 | 12,094 | $ (10,270) | (425) | 194 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 474 | 474 | 474 | 0 | |||||
Dividends | (119) | (117) | (117) | (2) | |||||
Stock-based compensation | 41 | 41 | 41 | ||||||
Shares issued for stock-based compensation plans at average cost, net | 8 | 8 | 7 | $ 1 | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 0 | ||||||||
Treasury shares repurchased | (125) | (125) | $ (125) | ||||||
Treasury shares repurchased (in shares) | (0.3) | ||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax) | (46) | (43) | (43) | (3) | |||||
Net actuarial gains and prior service cost (net of tax) | 3 | 3 | 3 | ||||||
Amortization of prior service costs/actuarial losses and settlement charge | 2 | 2 | 2 | ||||||
Net realized and unrealized gain on cash flow hedges | 1 | 1 | 1 | ||||||
Common stock, shares issued ending balance (in shares) at Sep. 30, 2021 | 342.9 | ||||||||
Treasury stock, common, ending balance (shares) at Sep. 30, 2021 | (157) | ||||||||
Ending Balance at Sep. 30, 2021 | 2,619 | 2,430 | $ 3 | 832 | 12,451 | $ (10,394) | (462) | 189 | |
Common stock, shares issued beginning balance (in shares) at Dec. 31, 2021 | 342.9 | ||||||||
Treasury stock, common, beginning balance (shares) at Dec. 31, 2021 | (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 | 1,128 | 1,128 | 1,128 | 0 | |||||
Dividends | (391) | (389) | (389) | (2) | |||||
Stock-based compensation | 130 | 130 | 130 | ||||||
Shares issued for stock-based compensation plans at average cost, net | (64) | (64) | (34) | $ (30) | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 0.6 | ||||||||
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 | (983) | (983) | (3) | $ (980) | |||||
Treasury shares repurchased (in shares) | (3.1) | ||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax) | (355) | (343) | (343) | (12) | |||||
Net actuarial gains and prior service cost (net of tax) | 2 | 2 | 2 | ||||||
Amortization of prior service costs/actuarial losses and settlement charge | 2 | 2 | 2 | ||||||
Net realized and unrealized gain on cash flow hedges | 1 | 1 | 1 | ||||||
Common stock, shares issued ending balance (in shares) at Sep. 30, 2022 | 342.9 | ||||||||
Treasury stock, common, ending balance (shares) at Sep. 30, 2022 | (159.7) | ||||||||
Ending Balance at Sep. 30, 2022 | 2,430 | 2,255 | $ 3 | 1,013 | 13,501 | $ (11,514) | (748) | 175 | |
Common stock, shares issued beginning balance (in shares) at Jun. 30, 2022 | 342.9 | ||||||||
Treasury stock, common, beginning balance (shares) at Jun. 30, 2022 | (159.4) | ||||||||
Beginning Balance at Jun. 30, 2022 | 2,479 | 2,294 | $ 3 | 965 | 13,328 | $ (11,403) | (599) | 185 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 303 | 303 | 303 | 0 | |||||
Dividends | (131) | (130) | (130) | (1) | |||||
Stock-based compensation | 46 | 46 | 46 | ||||||
Shares issued for stock-based compensation plans at average cost, net | 3 | 3 | 2 | $ 1 | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 0.1 | ||||||||
Treasury shares repurchased | (112) | (112) | $ (112) | ||||||
Treasury shares repurchased (in shares) | (0.4) | ||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax) | (159) | (150) | (150) | (9) | |||||
Net actuarial gains and prior service cost (net of tax) | 0 | ||||||||
Amortization of prior service costs/actuarial losses and settlement charge | 1 | 1 | 1 | ||||||
Common stock, shares issued ending balance (in shares) at Sep. 30, 2022 | 342.9 | ||||||||
Treasury stock, common, ending balance (shares) at Sep. 30, 2022 | (159.7) | ||||||||
Ending Balance at Sep. 30, 2022 | $ 2,430 | $ 2,255 | $ 3 | $ 1,013 | $ 13,501 | $ (11,514) | $ (748) | $ 175 | |
[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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends (in usd per share) | $ 0.70 | $ 0.62 | $ 2.10 | $ 1.86 |
Currency translation adjustment, net of net investment hedge activity, tax expense (benefit) | $ 57 | $ 21 | $ 130 | $ 46 |
Net actuarial gains and prior service cost, tax expense (benefit) | 0 | 1 | 1 | 1 |
Amortization of prior service costs and actuarial losses, tax expense (benefit) | $ 0 | $ 1 | $ 0 | $ 4 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 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 have been applied to 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, the Company is no longer conducting 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, which partially relates to uncertainties surrounding the conflict, has contributed to an adverse impact on rated issuance volumes in 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 companies and securities via data feeds and data applications products. Prior year revenue by LOB disclosures have been reclassified to conform to the new LOB reporting structure, which is presented in Note 2. |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended 2022 2021 2022 2021 MIS: Corporate Finance (CFG) Investment-grade $ 67 $ 105 $ 249 $ 341 High-yield 21 82 91 347 Bank loans 47 145 232 482 Other accounts (1) 142 156 444 473 Total CFG 277 488 1,016 1,643 Structured Finance (SFG) Asset-backed securities 26 29 89 88 RMBS 22 31 85 89 CMBS 19 26 84 73 Structured credit 34 57 109 148 Other accounts — — 1 1 Total SFG 101 143 368 399 Financial Institutions (FIG) Banking 76 105 258 315 Insurance 24 38 82 114 Managed investments 6 8 19 29 Other accounts 3 2 9 7 Total FIG 109 153 368 465 Public, Project and Infrastructure Finance (PPIF) Public finance / sovereign 44 61 157 191 Project and infrastructure 48 69 180 212 Total PPIF 92 130 337 403 Total ratings revenue 579 914 2,089 2,910 MIS Other 11 11 34 31 Total external revenue 590 925 2,123 2,941 Intersegment revenue 43 42 129 124 Total MIS 633 967 2,252 3,065 MA: Decision Solutions 325 250 971 697 Research and Insights 184 177 552 523 Data and Information 176 174 532 518 Total external revenue 685 601 2,055 1,738 Intersegment revenue 2 2 5 6 Total MA 687 603 2,060 1,744 Eliminations (45) (44) (134) (130) Total MCO $ 1,275 $ 1,526 $ 4,178 $ 4,679 (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 September 30, 2022 Three Months Ended September 30, 2021 U.S. Non-U.S Total U.S. Non-U.S Total MIS: Corporate Finance $ 188 $ 89 $ 277 $ 334 $ 154 $ 488 Structured Finance 69 32 101 98 45 143 Financial Institutions 47 62 109 71 82 153 Public, Project and Infrastructure Finance 57 35 92 76 54 130 Total ratings revenue 361 218 579 579 335 914 MIS Other 1 10 11 1 10 11 Total MIS 362 228 590 580 345 925 MA: Decision Solutions 143 182 325 107 143 250 Research and Insights 100 84 184 96 81 177 Data and Information 63 113 176 58 116 174 Total MA 306 379 685 261 340 601 Total MCO $ 668 $ 607 $ 1,275 $ 841 $ 685 $ 1,526 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 U.S. Non-U.S Total U.S. Non-U.S Total MIS: Corporate Finance $ 673 $ 343 $ 1,016 $ 1,093 $ 550 $ 1,643 Structured Finance 249 119 368 254 145 399 Financial Institutions 165 203 368 226 239 465 Public, Project and Infrastructure Finance 210 127 337 233 170 403 Total ratings revenue 1,297 792 2,089 1,806 1,104 2,910 MIS Other 4 30 34 3 28 31 Total MIS 1,301 822 2,123 1,809 1,132 2,941 MA: Decision Solutions 425 546 971 294 403 697 Research and Insights 303 249 552 284 239 523 Data and Information 185 347 532 170 348 518 Total MA 913 1,142 2,055 748 990 1,738 Total MCO $ 2,214 $ 1,964 $ 4,178 $ 2,557 $ 2,122 $ 4,679 The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 MIS: U.S. $ 362 $ 580 $ 1,301 $ 1,809 Non-U.S.: EMEA 139 211 497 707 Asia-Pacific 57 90 211 287 Americas 32 44 114 138 Total Non-U.S. 228 345 822 1,132 Total MIS 590 925 2,123 2,941 MA: U.S. 306 261 913 748 Non-U.S.: EMEA 254 232 774 695 Asia-Pacific 72 59 211 173 Americas 53 49 157 122 Total Non-U.S. 379 340 1,142 990 Total MA 685 601 2,055 1,738 Total MCO $ 1,275 $ 1,526 $ 4,178 $ 4,679 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 September 30, 2022 2021 Transaction Recurring Total Transaction Recurring Total Corporate Finance $ 153 $ 124 $ 277 $ 366 $ 122 $ 488 55 % 45 % 100 % 75 % 25 % 100 % Structured Finance $ 51 $ 50 $ 101 $ 93 $ 50 $ 143 50 % 50 % 100 % 65 % 35 % 100 % Financial Institutions $ 41 $ 68 $ 109 $ 83 $ 70 $ 153 38 % 62 % 100 % 54 % 46 % 100 % Public, Project and Infrastructure Finance $ 50 $ 42 $ 92 $ 88 $ 42 $ 130 54 % 46 % 100 % 68 % 32 % 100 % MIS Other $ 1 $ 10 $ 11 $ 1 $ 10 $ 11 9 % 91 % 100 % 9 % 91 % 100 % Total MIS $ 296 $ 294 $ 590 $ 631 $ 294 $ 925 50 % 50 % 100 % 68 % 32 % 100 % Decision Solutions $ 37 $ 288 $ 325 $ 34 $ 216 $ 250 11 % 89 % 100 % 14 % 86 % 100 % Research and Insights $ 1 $ 183 $ 184 $ 2 $ 175 $ 177 1 % 99 % 100 % 1 % 99 % 100 % Data and Information $ — $ 176 $ 176 $ 1 $ 173 $ 174 — % 100 % 100 % 1 % 99 % 100 % Total MA $ 38 (1) $ 647 $ 685 $ 37 $ 564 $ 601 6 % 94 % 100 % 6 % 94 % 100 % Total Moody's Corporation $ 334 $ 941 $ 1,275 $ 668 $ 858 $ 1,526 26 % 74 % 100 % 44 % 56 % 100 % Nine Months Ended September 30, 2022 2021 Transaction Recurring Total Transaction Recurring Total Corporate Finance $ 645 $ 371 $ 1,016 $ 1,280 $ 363 $ 1,643 63 % 37 % 100 % 78 % 22 % 100 % Structured Finance $ 217 $ 151 $ 368 $ 251 $ 148 $ 399 59 % 41 % 100 % 63 % 37 % 100 % Financial Institutions $ 159 $ 209 $ 368 $ 252 $ 213 $ 465 43 % 57 % 100 % 54 % 46 % 100 % Public, Project and Infrastructure Finance $ 211 $ 126 $ 337 $ 276 $ 127 $ 403 63 % 37 % 100 % 68 % 32 % 100 % MIS Other $ 3 $ 31 $ 34 $ 3 $ 28 $ 31 9 % 91 % 100 % 10 % 90 % 100 % Total MIS $ 1,235 $ 888 $ 2,123 $ 2,062 $ 879 $ 2,941 58 % 42 % 100 % 70 % 30 % 100 % Decision Solutions $ 120 $ 851 $ 971 $ 111 $ 586 $ 697 12 % 88 % 100 % 16 % 84 % 100 % Research and Insights $ 4 $ 548 $ 552 $ 6 $ 517 $ 523 1 % 99 % 100 % 1 % 99 % 100 % Data and Information $ — $ 532 $ 532 $ 3 $ 515 $ 518 — % 100 % 100 % 1 % 99 % 100 % Total MA $ 124 (1) $ 1,931 $ 2,055 $ 120 $ 1,618 $ 1,738 6 % 94 % 100 % 7 % 93 % 100 % Total Moody's Corporation $ 1,359 $ 2,819 $ 4,178 $ 2,182 $ 2,497 $ 4,679 33 % 67 % 100 % 47 % 53 % 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 September 30, 2022 Nine Months Ended September 30, 2022 MIS MA Total MIS MA Total Revenue recognized at a point in time $ 296 $ 20 $ 316 $ 1,235 $ 77 $ 1,312 Revenue recognized over time 294 665 959 888 1,978 2,866 Total $ 590 $ 685 $ 1,275 $ 2,123 $ 2,055 $ 4,178 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 MIS MA Total MIS MA Total Revenue recognized at a point in time $ 631 $ 29 $ 660 $ 2,062 $ 78 $ 2,140 Revenue recognized over time 294 572 866 879 1,660 2,539 Total $ 925 $ 601 $ 1,526 $ 2,941 $ 1,738 $ 4,679 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 September 30, 2022 and December 31, 2021: As of September 30, 2022 As of December 31, 2021 MIS MA MIS MA Unbilled Receivables $ 381 $ 147 $ 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 and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 MIS MA Total MIS MA Total Balance at June 30, $ 347 $ 1,019 $ 1,366 $ 368 $ 867 $ 1,235 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (110) (480) (590) (118) (484) (602) Increases due to amounts billable excluding amounts recognized as revenue during the period 82 389 471 85 393 478 Increases due to acquisitions during the period — — — — 89 89 Effect of exchange rate changes (5) (9) (14) (2) (12) (14) Total changes in deferred revenue (33) (100) (133) (35) (14) (49) Balance at September 30, $ 314 $ 919 $ 1,233 $ 333 $ 853 $ 1,186 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 MIS MA Total MIS MA Total Balance at December 31, $ 296 $ 1,039 $ 1,335 $ 313 $ 874 $ 1,187 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (186) (883) (1,069) (200) (814) (1,014) Increases due to amounts billable excluding amounts recognized as revenue during the period 218 819 1,037 224 713 937 Increases due to acquisitions during the period — 1 1 — 93 93 Effect of exchange rate changes (14) (57) (71) (4) (13) (17) Total changes in deferred revenue 18 (120) (102) 20 (21) (1) Balance at September 30, $ 314 $ 919 $ 1,233 $ 333 $ 853 $ 1,186 Deferred revenue - current $ 238 $ 917 $ 1,155 $ 247 $ 852 $ 1,099 Deferred revenue - non-current $ 76 $ 2 $ 78 $ 86 $ 1 $ 87 For the MIS segment, the changes in the deferred revenue balance during the three and nine months ended September 30, 2022 were primarily related to the significant portion of contract renewals that occurred during the first quarter of 2022 and are generally recognized over a one year period. For the MA segment, the decrease in deferred revenue for the three months ended September 30, 2022 was primarily due to the recognition of annual subscription and maintenance billings from December 2021 and January 2022. For the nine months ended September 30, 2022, the decrease in the deferred revenue balance is attributable to recognition of revenues related to the aforementioned December 2021 billings and unfavorable changes in FX translation rates being mostly offset by the impact of the high concentration of billings in the first quarter of 2022. 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 September 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $103 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 September 30, 2022 as well as amounts not yet invoiced to customers as of September 30, 2022, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of September 30, 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 30% of this balance between one to two years and the remaining amount thereafter. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock-based compensation cost $ 46 $ 41 $ 130 $ 127 Tax benefit $ 10 $ 8 $ 30 $ 29 During the first nine months of 2022, the Company granted 0.1 million employee stock options, which had a weighted average grant date fair value of $84.00 per share. The Company also granted 0.6 million shares of restricted stock in the first nine months of 2022, which had a weighted average grant date fair value of $321.70 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 $310.62 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 1.91 % Expected holding period 5.6 years Unrecognized stock-based compensation expense at September 30, 2022 was $18 million and $260 million for stock options and unvested restricted stock, respectively, which is expected to be recognized over a weighted average period of 2.1 years and 2.6 years, respectively. Additionally, there was $34 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 1.6 years. The following table summarizes information relating to stock option exercises and restricted stock vesting: Nine Months Ended 2022 2021 Exercise of stock options: Proceeds from stock option exercises $ 6 $ 20 Aggregate intrinsic value $ 7 $ 44 Tax benefit realized upon exercise $ 2 $ 10 Number of shares exercised (1) — 0.2 Vesting of restricted stock: Fair value of shares vested $ 174 $ 193 Tax benefit realized upon vesting $ 41 $ 43 Number of shares vested 0.5 0.7 Vesting of performance-based restricted stock: Fair value of shares vested $ 50 $ 28 Tax benefit realized upon vesting $ 7 $ 4 Number of shares vested 0.2 0.1 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Moody’s effective tax rate (ETR) was 20.5% and 23.4% for the three months ended September 30, 2022 and 2021, respectively, and 21.3% and 20.2% for the nine months ended September 30, 2022 and 2021, respectively. The 2.9% decrease in the ETR for the three months ended September 30, 2022 compared to the same period in the prior year was primarily due to lower pre-tax income, which increases the percentage impact of net beneficial discrete items, as well as a favorable mix of earnings in the jurisdictions in which Moody’s operates. The 1.1% increase in the ETR for the nine months ended September 30, 2022 compared to the same period in the prior year was primarily due to tax benefits realized upon resolution of UTPs during 2021 that did not recur to the same extent in 2022 and a non-deductible loss associated with the Company no longer conducting commercial operations in Russia. The Company’s year-to-date 2022 income tax expense differs from the tax computed by applying its estimated annual effective tax rate to the pre-tax earnings primarily due to the following items recognized in 2022: i) Excess Tax Benefits from stock-based compensation of $19 million; and ii) net reductions in UTPs of $20 million related to the resolution of UTPs. 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 $28 million (net of federal tax) during the third quarter of 2022 and a decrease in its UTPs of $80 million ($75 million net of federal tax) during the nine months of 2022, which primarily related to the aforementioned resolution of UTPs. 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 2020 are currently under examination and 2021 remains open to examination. The Company’s New York State tax returns for 2017 through 2018 and New York City tax returns for 2015 through 2018 are currently under examination. The Company’s U.K. tax returns for 2012 through 2020 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 such 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 will 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 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: Nine Months Ended September 30, 2022 2021 Income taxes paid $ 394 $ 501 In August 2022, the U.S. Congress passed the Inflation Reduction Act, which included a corporate minimum tax on book earnings of 15%, an excise tax on corporate share repurchases of 1%, and certain climate change and energy tax credit incentives. The adoption of a corporate minimum tax of 15% is not expected to impact Moody’s ETR. The excise tax of 1% on corporate share buybacks will not have an impact on the Company’s ETR for the years 2022 or 2023. |
RECONCILIATION OF WEIGHTED AVER
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic 183.2 186.0 184.1 186.6 Dilutive effect of shares issuable under stock-based compensation plans 0.7 1.3 0.8 1.4 Diluted 183.9 187.3 184.9 188.0 Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above 0.5 0.1 0.4 0.2 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 September 30, 2022 and 2021. |
ACCELERATED SHARE REPURCHASE PR
ACCELERATED SHARE REPURCHASE PROGRAM | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 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 September 30, 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) $ 739 $ — $ 739 $ 640 $ 89 $ 10 Mutual funds $ 72 $ (2) $ 70 $ — $ — $ 70 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 are one month to 12 months at both September 30, 2022 and December 31, 2021. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 months to 27 months at September 30, 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 September 30, 2022 and December 31, 2021, the contract value of the COLI was $38 million and $37 million, respectively. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS The material business combination described below is 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. 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 purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: Cash (1) $ 55 Accounts receivable 38 Other current assets (1) 12 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) 1,357 Deferred tax assets, net 50 Other assets 99 Liabilities: Accounts payable and accrued liabilities (1) $ (96) Deferred revenue (89) Operating lease liabilities (68) Deferred tax liabilities, net (214) Uncertain tax positions (1) (71) Other liabilities (2) Total liabilities (540) Net assets acquired $ 1,927 (1) During the third quarter of 2022, the Company adjusted the purchase price allocation pursuant to the receipt of additional information from the sellers relating to RMS's pre-acquisition income taxes. These adjustments included a decrease to UTPs of $25 million along with other immaterial adjustments. These adjustments resulted in a corresponding decrease in goodwill of $19 million. 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 $1,267 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 UTPs 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 and nine months ended September 30, 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 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 September 30, 2021 Nine Months Ended Pro forma Revenue $ 1,597 $ 4,910 Pro forma Net Income attributable to Moody's $ 506 $ 1,807 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 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 September 30, 2022 As of December 31, 2021 Floating Interest Rate 2017 Senior Notes due 2023 Pay Floating/Receive Fixed $ — $ 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 2018 Senior Notes due 2029 (1) Pay Floating/Receive Fixed $ 400 $ — SOFR 2022 Senior Notes due 2052 (2) Pay Floating/Receive Fixed $ 500 $ — SOFR 2022 Senior Notes due 2032 (3) Pay Floating/Receive Fixed $ 250 $ — SOFR Total $ 2,550 $ 1,650 (1) Executed in the first quarter of 2022. (2) Executed in the second quarter of 2022. (3) Executed in the third quarter of 2022. Refer to Note 15 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Interest expense, net $ (58) $ (53) $ (166) $ (109) Descriptions Location on Consolidated Statements of Operations Net interest settlements and accruals on interest rate swaps Interest expense, net $ (4) $ 6 $ 5 $ 17 Fair value changes on interest rate swaps Interest expense, net $ (95) $ (16) $ (227) $ (40) Fair value changes on hedged debt Interest expense, net $ 95 $ 16 $ 227 $ 40 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: September 30, 2022 Pay Receive Nature of Swap Notional Amount Weighted Average Interest Rate Notional Amount Weighted Average Interest Rate Pay Fixed/Receive Fixed € 765 3.67% $ 800 5.25% Pay Floating/Receive Floating 450 Based on 3-month EURIBOR 500 Based on 3-month USD LIBOR Pay Floating/Receive Floating 1,688 Based on ESTR 1,750 Based on SOFR Total € 2,903 $ 3,050 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 September 30, 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, 2026 € 450 2027 € 531 2028 € 588 2029 € 373 2031 € 481 2032 € 480 Total € 2,903 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 September 30, Three Months Ended September 30, Three Months Ended September 30, 2022 2021 2022 2021 2022 2021 FX forward contracts $ — $ 2 $ — $ — $ — $ — Cross currency swaps 131 44 — — 17 8 Long-term debt 62 26 — — — — Total net investment hedges $ 193 $ 72 $ — $ — $ 17 $ 8 Derivatives in Cash Flow Hedging Relationships Interest rate contracts $ — $ 1 $ — $ (1) $ — $ — Total cash flow hedges $ — $ 1 $ — $ (1) $ — $ — Total $ 193 $ 73 $ — $ (1) $ 17 $ 8 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) Nine Months Ended Nine Months Ended Nine Months Ended 2022 2021 2022 2021 2022 2021 FX forward contracts $ — $ 18 $ — $ 1 $ — $ — Cross currency swaps 273 98 — — 38 27 Long-term debt 148 61 — — — — Total net investment hedges $ 421 $ 177 $ — $ 1 $ 38 $ 27 Derivatives in Cash Flow Hedging Relationships Interest rate contracts $ — $ — $ (1) $ (2) $ — $ — Total cash flow hedges $ — $ — $ (1) $ (2) $ — $ — Total $ 421 $ 177 $ (1) $ (1) $ 38 $ 27 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 September 30, 2022 December 31, 2021 Net investment hedges Cross currency swaps $ 292 $ 19 FX forwards 29 29 Long-term debt 121 (27) Total net investment hedges $ 442 $ 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 $ 396 $ (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 January 2023. The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: September 30, 2022 December 31, 2021 Notional amount of currency pair: Sell Buy Sell Buy Contracts to sell USD for GBP $ 138 £ 115 $ 126 £ 92 Contracts to sell USD for Japanese yen $ 18 ¥ 2,500 $ 22 ¥ 2,500 Contracts to sell USD for Canadian dollars $ 141 C$ 183 $ 120 C$ 150 Contracts to sell USD for Singapore dollars $ 58 S$ 80 $ 67 S$ 90 Contracts to sell USD for euros $ 332 € 325 $ 364 € 315 Contracts to sell USD for Russian ruble $ — ₽ — $ 16 ₽ 1,200 Contracts to sell USD for Indian rupee $ 20 ₹ 1,600 $ 7 ₹ 500 Contracts to sell GBP for USD £ — $ — £ 172 $ 231 Contracts to sell euros for USD € 135 $ 134 € — $ — 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 September 30, Nine Months Ended 2022 2021 2022 2021 FX forwards Other non-operating income, net $ (46) $ (18) $ (103) $ (25) Foreign exchange forwards relating to RMS acquisition (1) Other non-operating (expense) income, net $ — $ (13) $ — $ (13) (1) The Company entered into forward contracts to sell $1,675 million for £1,200 to hedge a portion of the GBP denominated RMS purchase price. The contract was terminated on September 14, 2021 and resulted in a $13 million loss. 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 September 30, 2022 December 31, 2021 Assets: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other assets $ 181 $ 53 Interest rate swaps designated as fair value hedges Other assets — 13 Total derivatives designated as accounting hedges 181 66 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Other current assets — 1 Total assets $ 181 $ 67 Liabilities: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other liabilities $ — $ 17 Interest rate swaps designated as fair value hedges Other liabilities 237 23 Total derivatives designated as accounting hedges 237 40 Non-derivatives designated as accounting hedges: Long-term debt designated as net investment hedge Long-term debt 1,225 1,421 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Accounts payable and accrued liabilities 28 12 Total liabilities $ 1,490 $ 1,473 |
GOODWILL AND OTHER ACQUIRED INT
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 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: Nine Months Ended September 30, 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) 3 — 3 87 — 87 90 — 90 Foreign currency translation adjustments (21) — (21) (451) — (451) (472) — (472) Ending balance $ 378 $ — $ 378 $ 5,251 $ (12) $ 5,239 $ 5,629 $ (12) $ 5,617 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 in the first quarter of 2022, partially offset by RMS measurement period adjustments in the third quarter of 2022, which are more fully discussed in Note 8. (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: September 30, December 31, Customer relationships $ 1,947 $ 2,101 Accumulated amortization (412) (381) Net customer relationships 1,535 1,720 Software/product technology 633 663 Accumulated amortization (251) (219) Net software/product technology 382 444 Database 176 179 Accumulated amortization (58) (46) Net database 118 133 Trade names 192 207 Accumulated amortization (53) (47) Net trade names 139 160 Other (1) 52 54 Accumulated amortization (44) (44) Net other 8 10 Total acquired intangible assets, net $ 2,182 $ 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 September 30, Nine Months Ended 2022 2021 2022 2021 Amortization expense $ 48 $ 37 $ 150 $ 108 |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING On June 30, 2022, the chief executive officer of Moody’s approved a restructuring program (the “2022 - 2023 Geolocation Restructuring Program”) for which the scope was expanded in October 2022, prior to the filing of this quarterly report on Form 10-Q. T he Company estimates that the program will result in annualized savings of $100 million to $135 million per year. This program relates to the Company's post-COVID-19 geolocation strategy and includes the rationalization and exit of certain real estate leases and a reduction in staff, including the relocation of certain job functions from their current locations. The exit from certain leased office spaces is expected to begin late in 2022 or early 2023 and is expected to result in $50 million to $70 million of pre-tax charges to either terminate or sublease the affected real estate leases. The program also includes $75 million to $100 million of pre-tax personnel-related restructuring charges, an amount that includes severance and related costs primarily determined under the Company’s existing severance plans. The savings generated from the 2022 - 2023 Geolocation Restructuring Program are expected to strengthen the Company's operating margin, with a portion being deployed to support strategic investments, including the Company's Workplace of the Future program and employee retention initiatives. The 2022 - 2023 Geolocation Restructuring Program is expected to be substantially complete by the end of 2023. Cash outlays associated with this program are expected to be $75 million to $100 million, which are expected to be paid through 2024. On December 22, 2020, the chief executive officer of Moody’s approved a restructuring program (the “2020 MA Strategic Reorganization Restructuring Program”) that the Company estimates will result in annualized savings of $20 million per year. This program relates to a strategic reorganization in the MA reportable segment consisting of severance and related costs primarily determined under the Company’s existing severance plans. The 2020 MA Strategic Reorganization Restructuring Program resulted in a total of $19 million in pre-tax charges and was substantially completed in the first half of 2021. Cash outlays associated with this program are expected to be $20 million, which will be paid through 2022. Total expense included in the accompanying consolidated statements of operations relating to the aforementioned restructuring program is below: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 2020 MA Strategic Reorganization Restructuring Program $ — $ — $ (1) $ 2 2022 - 2023 Geolocation Restructuring Program 1 — 33 — Total Restructuring $ 1 $ — $ 32 $ 2 Changes to the restructuring liability for the aforementioned restructuring programs during the first nine months of 2022 were as follows: Employee Termination Costs Balance as of December 31, 2021 $ 4 2020 MA Strategic Reorganization Restructuring Program: Cost incurred and adjustments (1) Cash payments and adjustments (2) 2022 - 2023 Geolocation Restructuring Program: Cost incurred and adjustments 33 Cash payments and adjustments (6) Balance as of September 30, 2022 $ 28 Cumulative expense incurred to date 2020 MA Strategic Reorganization Restructuring Program $ 19 2022 - 2023 Geolocation Restructuring Program $ 33 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The table below presents information about items that are carried at fair value at September 30, 2022 and December 31, 2021: Fair Value Measurement as of September 30, 2022 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 181 $ — $ 181 Mutual funds 70 70 — Total $ 251 $ 70 $ 181 Liabilities: Derivatives (1) $ 265 $ — $ 265 Total $ 265 $ — $ 265 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 STATEMENTS OF OPERATIONS INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Other Balance Sheet And Statement Of Operations Information [Abstract] | |
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION | OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION The following tables contain additional detail related to certain balance sheet captions: September 30, 2022 December 31, 2021 Other current assets: Prepaid taxes $ 203 $ 112 Prepaid expenses 105 99 Capitalized costs to obtain and fulfill sales contracts 90 103 Other 65 75 Total other current assets $ 463 $ 389 Other assets: Investments in non-consolidated affiliates $ 504 $ 443 Deposits for real-estate leases 14 14 Indemnification assets related to acquisitions 109 106 Mutual funds and fixed deposits 80 89 Company owned life insurance (at contract value) 38 37 Costs to obtain sales contracts 143 138 Derivative instruments designated as accounting hedges 181 66 Pension and other retirement employee benefits 73 77 Other 77 64 Total other assets $ 1,219 $ 1,034 Accounts payable and accrued liabilities: Salaries and benefits $ 154 $ 211 Incentive compensation 155 324 Customer credits, advanced payments and advanced billings 83 100 Dividends 9 6 Professional service fees 63 75 Interest accrued on debt 51 85 Accounts payable 34 47 Income taxes 79 115 Pension and other retirement employee benefits 7 7 Accrued royalties 18 36 Foreign exchange forwards on certain assets and liabilities 28 12 Restructuring liability 24 4 Other 102 120 Total accounts payable and accrued liabilities $ 807 $ 1,142 Other liabilities: Pension and other retirement employee benefits $ 212 $ 235 Interest accrued on UTPs 44 59 MAKS indemnification provisions 22 33 Income tax liability - non-current portion 23 23 Derivative instruments designated as accounting hedges 237 40 Restructuring liability - non-current portion 4 — Other 46 48 Total other liabilities $ 588 $ 438 Allowance for credit losses: During the nine months ended September 30, 2022, the Company increased its allowance for credit losses by $10 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 sheets: September 30, 2022 December 31, 2021 Equity method investments (1) $ 178 $ 121 Investments measured using the measurement alternative (2) 321 318 Other 5 4 Total investments in non-consolidated affiliates $ 504 $ 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 (expense), net: The following table summarizes the components of other non-operating income (expense), net: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 FX gain/(loss) (1) $ 13 $ (2) $ (9) $ (2) Purchase price hedge loss (2) — (13) — (13) Net periodic pension costs - other components 6 4 18 5 Income from investments in non-consolidated affiliates 10 6 14 15 Other (3) 1 (1) 13 Total $ 26 $ (4) $ 22 $ 18 (1) FX loss for the nine months ended September 30, 2022 includes FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia. (2) The amounts for the three and nine months ended September 30, 2021 represent a loss in the prior year on a forward contract used to hedge a portion of the GBP denominated RMS purchase price. |
COMPREHENSIVE INCOME AND ACCUMU
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 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 September 30, 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 1 — Provision for income taxes Total net gains (losses) on cash flow hedges — (1) Pension and other retirement benefits Amortization of actuarial losses and prior service costs included in net income (1) (2) Other non-operating income, net Settlement charge — (1) Other non-operating income, net Total before income taxes (1) (3) Income tax effect of items above — 1 Provision for income taxes Total pension and other retirement benefits (1) (2) Total net losses included in Net Income attributable to reclassifications out of AOCL $ (1) $ (3) Nine Months Ended September 30, Location in the consolidated statements of operations Losses on currency translation adjustments 2022 2021 Foreign currency translation adjustments - reclassification of losses included in net income $ (20) $ — Other non-operating income, net Total losses on currency translation adjustments (20) — Losses on cash flow hedges Interest rate contract (2) (2) Other non-operating income, net Income tax effect of item above 1 — Provision for income taxes Total net losses on cash flow hedges (1) (2) Gains (losses) on net investment hedges FX forwards — 2 Other non-operating income, net Income tax effect of item above — (1) Provision for income taxes Total net gains on net investment hedges — 1 Pension and other retirement benefits Amortization of actuarial losses and prior service costs included in net income (2) (8) Other non-operating income, net Settlement charge — (8) Other non-operating income, net Total before income taxes (2) (16) Income tax effect of item above — 4 Provision for income taxes Total pension and other retirement benefits (2) (12) Total net losses included in Net Income attributable to reclassifications out of AOCL $ (23) $ (13) The following tables show changes in AOCL by component (net of tax): Three Months Ended September 30, 2022 2021 Gains/(Losses) Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance at June 30, $ (46) $ (46) $ (756) $ 249 $ (599) $ (108) $ (48) $ (152) $ (117) $ (425) Other comprehensive income/(loss) before reclassifications — — (343) 193 (150) 3 — (116) 73 (40) Amounts reclassified from AOCL 1 — — — 1 2 1 — — 3 Other comprehensive income/(loss) 1 — (343) 193 (149) 5 1 (116) 73 (37) Balance at September 30, $ (45) $ (46) $ (1,099) $ 442 $ (748) $ (103) $ (47) $ (268) $ (44) $ (462) Nine Months Ended September 30, 2022 2021 Gains/(Losses) Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance at December 31, $ (49) $ (47) $ (335) $ 21 $ (410) $ (118) $ (49) $ (45) $ (220) $ (432) Other comprehensive income/(loss) before reclassifications 2 — (784) 421 (361) 3 — (223) 177 (43) Amounts reclassified from AOCL 2 1 20 — 23 12 2 — (1) 13 Other comprehensive income/(loss) 4 1 (764) 421 (338) 15 2 (223) 176 (30) Balance at September 30, $ (45) $ (46) $ (1,099) $ 442 $ (748) $ (103) $ (47) $ (268) $ (44) $ (462) |
INDEBTEDNESS
INDEBTEDNESS | 9 Months Ended |
Sep. 30, 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: September 30, 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 (42) 3 (5) 556 1.75% 2015 Senior Notes, due 2027 490 — — (2) 488 3.25% 2017 Senior Notes, due 2028 500 (38) (3) (2) 457 4.25% 2018 Senior Notes, due 2029 400 (41) (2) (2) 355 4.875% 2018 Senior Notes, due 2048 400 (44) (6) (4) 346 0.950% 2019 Senior Notes, due 2030 735 — (2) (4) 729 3.75% 2020 Senior Notes, due 2025 700 (28) (1) (3) 668 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 — (7) (4) 589 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 (32) (9) (5) 454 4.25% 2022 Senior Notes, due 2032 500 (12) (2) (4) 482 Total long-term debt $ 7,825 $ (237) $ (58) $ (54) $ 7,476 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 nine months of 2022, the Company issued the 2022 Senior Notes due 2052 and the 2022 Senior Notes due 2032. The key terms of this debt issuance are set forth in the table above. Additionally, in the first nine months of 2022, the Company fully repaid $500 million of the 2017 Senior Notes due 2023. At September 30, 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 September 30, 2022, there were no such cross defaults. The repayment schedule for the Company’s borrowings is as follows: Year Ending December 31, Year Ending Total 2022 (After September 30,) $ — 2023 — 2024 500 2025 700 2026 — Thereafter 6,625 Total $ 7,825 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Income $ 5 $ 3 $ 9 $ 7 Expense on borrowings (54) (47) (152) (129) Income (expense) on UTPs and other tax related liabilities (2) (5) (5) (11) 25 Net periodic pension costs - interest component (4) (4) (12) (12) Interest expense, net $ (58) $ (53) $ (166) $ (109) Interest paid (1) $ 77 $ 53 $ 167 $ 139 (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 for the nine months ended September 30, 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 September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt $ 7,476 $ 6,426 $ 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 | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTSThe 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 25 $ 24 $ 77 $ 71 Sublease income (2) (2) (6) (4) Variable lease cost 5 5 15 15 Total lease cost $ 28 $ 27 $ 86 $ 82 The following tables present other information related to the Company’s operating leases: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 29 $ 27 $ 89 $ 83 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1 $ 117 $ 31 $ 123 September 30, 2022 September 30, 2021 Weighted-average remaining lease term 5.1 years 5.9 years Weighted-average discount rate applied to operating leases 3.1 % 3.1 % The following table presents a maturity analysis of the future minimum lease payments included within the Company’s operating lease liabilities at September 30, 2022: Year Ending December 31, Operating Leases 2022 (After September 30,) $ 29 2023 117 2024 111 2025 96 2026 78 After 2026 102 Total lease payments (undiscounted) 533 Less: Interest 40 Present value of lease liabilities: $ 493 Lease liabilities - current $ 104 Lease liabilities - noncurrent $ 389 |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 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 2018 actual revenue which comprises a “Baseline Pool” established in 2019, which 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 September 30, 2022 2021 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Total external revenue $ 590 $ 685 $ — $ 1,275 $ 925 $ 601 $ — $ 1,526 Intersegment revenue 43 2 (45) — 42 2 (44) — Revenue 633 687 (45) 1,275 967 603 (44) 1,526 Operating, SG&A 344 479 (45) 778 387 446 (44) 789 Adjusted Operating Income $ 289 $ 208 $ — $ 497 $ 580 $ 157 $ — $ 737 Add: Depreciation and 21 62 — 83 17 44 — 61 Restructuring — 1 — 1 — — — — Operating Income $ 413 $ 676 Nine Months Ended September 30, 2022 2021 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Total external revenue $ 2,123 $ 2,055 $ — $ 4,178 $ 2,941 $ 1,738 $ — $ 4,679 Intersegment revenue 129 5 (134) — 124 6 (130) — Revenue 2,252 2,060 (134) 4,178 3,065 1,744 (130) 4,679 Operating, SG&A 1,038 1,423 (134) 2,327 1,079 1,218 (130) 2,167 Adjusted Operating Income $ 1,214 $ 637 $ — $ 1,851 $ 1,986 $ 526 $ — $ 2,512 Add: Depreciation and amortization 60 182 — 242 53 127 — 180 Restructuring 15 17 — 32 — 2 — 2 Operating Income $ 1,577 $ 2,330 The cumulative restructuring charge for the MA reportable segment related to the 2020 MA Strategic Reorganization Restructuring Program is $19 million. The cumulative restructuring charge for the MIS and MA reportable segments related to the 2022 - 2023 Geolocation Restructuring Program is $15 million and $18 million, respectively. The restructuring programs are more fully discussed in Note 11. Consolidated Revenue Information by Geographic Area Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 668 $ 841 $ 2,214 $ 2,557 Non-U.S.: EMEA 393 443 1,271 1,402 Asia-Pacific 129 149 422 460 Americas 85 93 271 260 Total Non-U.S. 607 685 1,964 2,122 Total $ 1,275 $ 1,526 $ 4,178 $ 4,679 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTOn October 24, 2022, the Board approved the declaration of a quarterly dividend of $0.70 per share of Moody’s common stock, payable on December 14, 2022 to shareholders of record at the close of business on November 23, 2022. |
Description of Business and B_2
Description of Business and Basis of Presentation - (Policies) | 9 Months Ended |
Sep. 30, 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 have been applied to business combination transactions completed subsequent to January 1, 2022. |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by LOB: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 MIS: Corporate Finance (CFG) Investment-grade $ 67 $ 105 $ 249 $ 341 High-yield 21 82 91 347 Bank loans 47 145 232 482 Other accounts (1) 142 156 444 473 Total CFG 277 488 1,016 1,643 Structured Finance (SFG) Asset-backed securities 26 29 89 88 RMBS 22 31 85 89 CMBS 19 26 84 73 Structured credit 34 57 109 148 Other accounts — — 1 1 Total SFG 101 143 368 399 Financial Institutions (FIG) Banking 76 105 258 315 Insurance 24 38 82 114 Managed investments 6 8 19 29 Other accounts 3 2 9 7 Total FIG 109 153 368 465 Public, Project and Infrastructure Finance (PPIF) Public finance / sovereign 44 61 157 191 Project and infrastructure 48 69 180 212 Total PPIF 92 130 337 403 Total ratings revenue 579 914 2,089 2,910 MIS Other 11 11 34 31 Total external revenue 590 925 2,123 2,941 Intersegment revenue 43 42 129 124 Total MIS 633 967 2,252 3,065 MA: Decision Solutions 325 250 971 697 Research and Insights 184 177 552 523 Data and Information 176 174 532 518 Total external revenue 685 601 2,055 1,738 Intersegment revenue 2 2 5 6 Total MA 687 603 2,060 1,744 Eliminations (45) (44) (134) (130) Total MCO $ 1,275 $ 1,526 $ 4,178 $ 4,679 (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 September 30, 2022 Three Months Ended September 30, 2021 U.S. Non-U.S Total U.S. Non-U.S Total MIS: Corporate Finance $ 188 $ 89 $ 277 $ 334 $ 154 $ 488 Structured Finance 69 32 101 98 45 143 Financial Institutions 47 62 109 71 82 153 Public, Project and Infrastructure Finance 57 35 92 76 54 130 Total ratings revenue 361 218 579 579 335 914 MIS Other 1 10 11 1 10 11 Total MIS 362 228 590 580 345 925 MA: Decision Solutions 143 182 325 107 143 250 Research and Insights 100 84 184 96 81 177 Data and Information 63 113 176 58 116 174 Total MA 306 379 685 261 340 601 Total MCO $ 668 $ 607 $ 1,275 $ 841 $ 685 $ 1,526 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 U.S. Non-U.S Total U.S. Non-U.S Total MIS: Corporate Finance $ 673 $ 343 $ 1,016 $ 1,093 $ 550 $ 1,643 Structured Finance 249 119 368 254 145 399 Financial Institutions 165 203 368 226 239 465 Public, Project and Infrastructure Finance 210 127 337 233 170 403 Total ratings revenue 1,297 792 2,089 1,806 1,104 2,910 MIS Other 4 30 34 3 28 31 Total MIS 1,301 822 2,123 1,809 1,132 2,941 MA: Decision Solutions 425 546 971 294 403 697 Research and Insights 303 249 552 284 239 523 Data and Information 185 347 532 170 348 518 Total MA 913 1,142 2,055 748 990 1,738 Total MCO $ 2,214 $ 1,964 $ 4,178 $ 2,557 $ 2,122 $ 4,679 Three Months Ended September 30, 2022 2021 Transaction Recurring Total Transaction Recurring Total Corporate Finance $ 153 $ 124 $ 277 $ 366 $ 122 $ 488 55 % 45 % 100 % 75 % 25 % 100 % Structured Finance $ 51 $ 50 $ 101 $ 93 $ 50 $ 143 50 % 50 % 100 % 65 % 35 % 100 % Financial Institutions $ 41 $ 68 $ 109 $ 83 $ 70 $ 153 38 % 62 % 100 % 54 % 46 % 100 % Public, Project and Infrastructure Finance $ 50 $ 42 $ 92 $ 88 $ 42 $ 130 54 % 46 % 100 % 68 % 32 % 100 % MIS Other $ 1 $ 10 $ 11 $ 1 $ 10 $ 11 9 % 91 % 100 % 9 % 91 % 100 % Total MIS $ 296 $ 294 $ 590 $ 631 $ 294 $ 925 50 % 50 % 100 % 68 % 32 % 100 % Decision Solutions $ 37 $ 288 $ 325 $ 34 $ 216 $ 250 11 % 89 % 100 % 14 % 86 % 100 % Research and Insights $ 1 $ 183 $ 184 $ 2 $ 175 $ 177 1 % 99 % 100 % 1 % 99 % 100 % Data and Information $ — $ 176 $ 176 $ 1 $ 173 $ 174 — % 100 % 100 % 1 % 99 % 100 % Total MA $ 38 (1) $ 647 $ 685 $ 37 $ 564 $ 601 6 % 94 % 100 % 6 % 94 % 100 % Total Moody's Corporation $ 334 $ 941 $ 1,275 $ 668 $ 858 $ 1,526 26 % 74 % 100 % 44 % 56 % 100 % Nine Months Ended September 30, 2022 2021 Transaction Recurring Total Transaction Recurring Total Corporate Finance $ 645 $ 371 $ 1,016 $ 1,280 $ 363 $ 1,643 63 % 37 % 100 % 78 % 22 % 100 % Structured Finance $ 217 $ 151 $ 368 $ 251 $ 148 $ 399 59 % 41 % 100 % 63 % 37 % 100 % Financial Institutions $ 159 $ 209 $ 368 $ 252 $ 213 $ 465 43 % 57 % 100 % 54 % 46 % 100 % Public, Project and Infrastructure Finance $ 211 $ 126 $ 337 $ 276 $ 127 $ 403 63 % 37 % 100 % 68 % 32 % 100 % MIS Other $ 3 $ 31 $ 34 $ 3 $ 28 $ 31 9 % 91 % 100 % 10 % 90 % 100 % Total MIS $ 1,235 $ 888 $ 2,123 $ 2,062 $ 879 $ 2,941 58 % 42 % 100 % 70 % 30 % 100 % Decision Solutions $ 120 $ 851 $ 971 $ 111 $ 586 $ 697 12 % 88 % 100 % 16 % 84 % 100 % Research and Insights $ 4 $ 548 $ 552 $ 6 $ 517 $ 523 1 % 99 % 100 % 1 % 99 % 100 % Data and Information $ — $ 532 $ 532 $ 3 $ 515 $ 518 — % 100 % 100 % 1 % 99 % 100 % Total MA $ 124 (1) $ 1,931 $ 2,055 $ 120 $ 1,618 $ 1,738 6 % 94 % 100 % 7 % 93 % 100 % Total Moody's Corporation $ 1,359 $ 2,819 $ 4,178 $ 2,182 $ 2,497 $ 4,679 33 % 67 % 100 % 47 % 53 % 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 September 30, 2022 Nine Months Ended September 30, 2022 MIS MA Total MIS MA Total Revenue recognized at a point in time $ 296 $ 20 $ 316 $ 1,235 $ 77 $ 1,312 Revenue recognized over time 294 665 959 888 1,978 2,866 Total $ 590 $ 685 $ 1,275 $ 2,123 $ 2,055 $ 4,178 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 MIS MA Total MIS MA Total Revenue recognized at a point in time $ 631 $ 29 $ 660 $ 2,062 $ 78 $ 2,140 Revenue recognized over time 294 572 866 879 1,660 2,539 Total $ 925 $ 601 $ 1,526 $ 2,941 $ 1,738 $ 4,679 |
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 September 30, Nine Months Ended 2022 2021 2022 2021 MIS: U.S. $ 362 $ 580 $ 1,301 $ 1,809 Non-U.S.: EMEA 139 211 497 707 Asia-Pacific 57 90 211 287 Americas 32 44 114 138 Total Non-U.S. 228 345 822 1,132 Total MIS 590 925 2,123 2,941 MA: U.S. 306 261 913 748 Non-U.S.: EMEA 254 232 774 695 Asia-Pacific 72 59 211 173 Americas 53 49 157 122 Total Non-U.S. 379 340 1,142 990 Total MA 685 601 2,055 1,738 Total MCO $ 1,275 $ 1,526 $ 4,178 $ 4,679 Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 668 $ 841 $ 2,214 $ 2,557 Non-U.S.: EMEA 393 443 1,271 1,402 Asia-Pacific 129 149 422 460 Americas 85 93 271 260 Total Non-U.S. 607 685 1,964 2,122 Total $ 1,275 $ 1,526 $ 4,178 $ 4,679 |
Schedule of Unbilled Receivables | The following table presents the Company's unbilled receivables, which are included within accounts receivable, net, at September 30, 2022 and December 31, 2021: As of September 30, 2022 As of December 31, 2021 MIS MA MIS MA Unbilled Receivables $ 381 $ 147 $ 386 $ 152 |
Schedule of Changes in the Deferred Revenue Balances | Significant changes in the deferred revenue balances during the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 MIS MA Total MIS MA Total Balance at June 30, $ 347 $ 1,019 $ 1,366 $ 368 $ 867 $ 1,235 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (110) (480) (590) (118) (484) (602) Increases due to amounts billable excluding amounts recognized as revenue during the period 82 389 471 85 393 478 Increases due to acquisitions during the period — — — — 89 89 Effect of exchange rate changes (5) (9) (14) (2) (12) (14) Total changes in deferred revenue (33) (100) (133) (35) (14) (49) Balance at September 30, $ 314 $ 919 $ 1,233 $ 333 $ 853 $ 1,186 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 MIS MA Total MIS MA Total Balance at December 31, $ 296 $ 1,039 $ 1,335 $ 313 $ 874 $ 1,187 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (186) (883) (1,069) (200) (814) (1,014) Increases due to amounts billable excluding amounts recognized as revenue during the period 218 819 1,037 224 713 937 Increases due to acquisitions during the period — 1 1 — 93 93 Effect of exchange rate changes (14) (57) (71) (4) (13) (17) Total changes in deferred revenue 18 (120) (102) 20 (21) (1) Balance at September 30, $ 314 $ 919 $ 1,233 $ 333 $ 853 $ 1,186 Deferred revenue - current $ 238 $ 917 $ 1,155 $ 247 $ 852 $ 1,099 Deferred revenue - non-current $ 76 $ 2 $ 78 $ 86 $ 1 $ 87 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock-based compensation cost $ 46 $ 41 $ 130 $ 127 Tax benefit $ 10 $ 8 $ 30 $ 29 |
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 1.91 % 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: Nine Months Ended 2022 2021 Exercise of stock options: Proceeds from stock option exercises $ 6 $ 20 Aggregate intrinsic value $ 7 $ 44 Tax benefit realized upon exercise $ 2 $ 10 Number of shares exercised (1) — 0.2 Vesting of restricted stock: Fair value of shares vested $ 174 $ 193 Tax benefit realized upon vesting $ 41 $ 43 Number of shares vested 0.5 0.7 Vesting of performance-based restricted stock: Fair value of shares vested $ 50 $ 28 Tax benefit realized upon vesting $ 7 $ 4 Number of shares vested 0.2 0.1 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Paid | The following table shows the amount the Company paid for income taxes: Nine Months Ended September 30, 2022 2021 Income taxes paid $ 394 $ 501 |
RECONCILIATION OF WEIGHTED AV_2
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic 183.2 186.0 184.1 186.6 Dilutive effect of shares issuable under stock-based compensation plans 0.7 1.3 0.8 1.4 Diluted 183.9 187.3 184.9 188.0 Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above 0.5 0.1 0.4 0.2 |
CASH EQUIVALENTS AND INVESTME_2
CASH EQUIVALENTS AND INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 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) $ 739 $ — $ 739 $ 640 $ 89 $ 10 Mutual funds $ 72 $ (2) $ 70 $ — $ — $ 70 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 are one month to 12 months at both September 30, 2022 and December 31, 2021. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 months to 27 months at September 30, 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) | 9 Months Ended |
Sep. 30, 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 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: Cash (1) $ 55 Accounts receivable 38 Other current assets (1) 12 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) 1,357 Deferred tax assets, net 50 Other assets 99 Liabilities: Accounts payable and accrued liabilities (1) $ (96) Deferred revenue (89) Operating lease liabilities (68) Deferred tax liabilities, net (214) Uncertain tax positions (1) (71) Other liabilities (2) Total liabilities (540) Net assets acquired $ 1,927 (1) During the third quarter of 2022, the Company adjusted the purchase price allocation pursuant to the receipt of additional information from the sellers relating to RMS's pre-acquisition income taxes. These adjustments included a decrease to UTPs of $25 million along with other immaterial adjustments. These adjustments resulted in a corresponding decrease in goodwill of $19 million. |
Business Acquisition, Pro Forma Information | Supplemental information on an unaudited pro forma basis is presented below for the three and nine months ended September 30, 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 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 September 30, 2021 Nine Months Ended Pro forma Revenue $ 1,597 $ 4,910 Pro forma Net Income attributable to Moody's $ 506 $ 1,807 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2022 As of December 31, 2021 Floating Interest Rate 2017 Senior Notes due 2023 Pay Floating/Receive Fixed $ — $ 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 2018 Senior Notes due 2029 (1) Pay Floating/Receive Fixed $ 400 $ — SOFR 2022 Senior Notes due 2052 (2) Pay Floating/Receive Fixed $ 500 $ — SOFR 2022 Senior Notes due 2032 (3) Pay Floating/Receive Fixed $ 250 $ — SOFR Total $ 2,550 $ 1,650 (1) Executed in the first quarter of 2022. (2) Executed in the second quarter of 2022. (3) Executed in the third quarter of 2022. September 30, 2022 Pay Receive Nature of Swap Notional Amount Weighted Average Interest Rate Notional Amount Weighted Average Interest Rate Pay Fixed/Receive Fixed € 765 3.67% $ 800 5.25% Pay Floating/Receive Floating 450 Based on 3-month EURIBOR 500 Based on 3-month USD LIBOR Pay Floating/Receive Floating 1,688 Based on ESTR 1,750 Based on SOFR Total € 2,903 $ 3,050 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Interest expense, net $ (58) $ (53) $ (166) $ (109) Descriptions Location on Consolidated Statements of Operations Net interest settlements and accruals on interest rate swaps Interest expense, net $ (4) $ 6 $ 5 $ 17 Fair value changes on interest rate swaps Interest expense, net $ (95) $ (16) $ (227) $ (40) Fair value changes on hedged debt Interest expense, net $ 95 $ 16 $ 227 $ 40 |
Schedule of Net Investment Hedges, Notional Amount That Will Be Settled At Expiry | As of September 30, 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, 2026 € 450 2027 € 531 2028 € 588 2029 € 373 2031 € 481 2032 € 480 Total € 2,903 |
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 September 30, Three Months Ended September 30, Three Months Ended September 30, 2022 2021 2022 2021 2022 2021 FX forward contracts $ — $ 2 $ — $ — $ — $ — Cross currency swaps 131 44 — — 17 8 Long-term debt 62 26 — — — — Total net investment hedges $ 193 $ 72 $ — $ — $ 17 $ 8 Derivatives in Cash Flow Hedging Relationships Interest rate contracts $ — $ 1 $ — $ (1) $ — $ — Total cash flow hedges $ — $ 1 $ — $ (1) $ — $ — Total $ 193 $ 73 $ — $ (1) $ 17 $ 8 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) Nine Months Ended Nine Months Ended Nine Months Ended 2022 2021 2022 2021 2022 2021 FX forward contracts $ — $ 18 $ — $ 1 $ — $ — Cross currency swaps 273 98 — — 38 27 Long-term debt 148 61 — — — — Total net investment hedges $ 421 $ 177 $ — $ 1 $ 38 $ 27 Derivatives in Cash Flow Hedging Relationships Interest rate contracts $ — $ — $ (1) $ (2) $ — $ — Total cash flow hedges $ — $ — $ (1) $ (2) $ — $ — Total $ 421 $ 177 $ (1) $ (1) $ 38 $ 27 |
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 September 30, 2022 December 31, 2021 Net investment hedges Cross currency swaps $ 292 $ 19 FX forwards 29 29 Long-term debt 121 (27) Total net investment hedges $ 442 $ 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 $ 396 $ (26) The following tables show changes in AOCL by component (net of tax): Three Months Ended September 30, 2022 2021 Gains/(Losses) Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance at June 30, $ (46) $ (46) $ (756) $ 249 $ (599) $ (108) $ (48) $ (152) $ (117) $ (425) Other comprehensive income/(loss) before reclassifications — — (343) 193 (150) 3 — (116) 73 (40) Amounts reclassified from AOCL 1 — — — 1 2 1 — — 3 Other comprehensive income/(loss) 1 — (343) 193 (149) 5 1 (116) 73 (37) Balance at September 30, $ (45) $ (46) $ (1,099) $ 442 $ (748) $ (103) $ (47) $ (268) $ (44) $ (462) Nine Months Ended September 30, 2022 2021 Gains/(Losses) Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance at December 31, $ (49) $ (47) $ (335) $ 21 $ (410) $ (118) $ (49) $ (45) $ (220) $ (432) Other comprehensive income/(loss) before reclassifications 2 — (784) 421 (361) 3 — (223) 177 (43) Amounts reclassified from AOCL 2 1 20 — 23 12 2 — (1) 13 Other comprehensive income/(loss) 4 1 (764) 421 (338) 15 2 (223) 176 (30) Balance at September 30, $ (45) $ (46) $ (1,099) $ 442 $ (748) $ (103) $ (47) $ (268) $ (44) $ (462) |
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards | The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: September 30, 2022 December 31, 2021 Notional amount of currency pair: Sell Buy Sell Buy Contracts to sell USD for GBP $ 138 £ 115 $ 126 £ 92 Contracts to sell USD for Japanese yen $ 18 ¥ 2,500 $ 22 ¥ 2,500 Contracts to sell USD for Canadian dollars $ 141 C$ 183 $ 120 C$ 150 Contracts to sell USD for Singapore dollars $ 58 S$ 80 $ 67 S$ 90 Contracts to sell USD for euros $ 332 € 325 $ 364 € 315 Contracts to sell USD for Russian ruble $ — ₽ — $ 16 ₽ 1,200 Contracts to sell USD for Indian rupee $ 20 ₹ 1,600 $ 7 ₹ 500 Contracts to sell GBP for USD £ — $ — £ 172 $ 231 Contracts to sell euros for USD € 135 $ 134 € — $ — 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 September 30, Nine Months Ended 2022 2021 2022 2021 FX forwards Other non-operating income, net $ (46) $ (18) $ (103) $ (25) Foreign exchange forwards relating to RMS acquisition (1) Other non-operating (expense) income, net $ — $ (13) $ — $ (13) (1) The Company entered into forward contracts to sell $1,675 million for £1,200 to hedge a portion of the GBP denominated RMS purchase price. The contract was terminated on September 14, 2021 and resulted in a $13 million loss. |
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 September 30, 2022 December 31, 2021 Assets: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other assets $ 181 $ 53 Interest rate swaps designated as fair value hedges Other assets — 13 Total derivatives designated as accounting hedges 181 66 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Other current assets — 1 Total assets $ 181 $ 67 Liabilities: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other liabilities $ — $ 17 Interest rate swaps designated as fair value hedges Other liabilities 237 23 Total derivatives designated as accounting hedges 237 40 Non-derivatives designated as accounting hedges: Long-term debt designated as net investment hedge Long-term debt 1,225 1,421 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Accounts payable and accrued liabilities 28 12 Total liabilities $ 1,490 $ 1,473 |
GOODWILL AND OTHER ACQUIRED I_2
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Activity in Goodwill | The following table summarizes the activity in goodwill for the periods indicated: Nine Months Ended September 30, 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) 3 — 3 87 — 87 90 — 90 Foreign currency translation adjustments (21) — (21) (451) — (451) (472) — (472) Ending balance $ 378 $ — $ 378 $ 5,251 $ (12) $ 5,239 $ 5,629 $ (12) $ 5,617 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 in the first quarter of 2022, partially offset by RMS measurement period adjustments in the third quarter of 2022, which are more fully discussed in Note 8. (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: September 30, December 31, Customer relationships $ 1,947 $ 2,101 Accumulated amortization (412) (381) Net customer relationships 1,535 1,720 Software/product technology 633 663 Accumulated amortization (251) (219) Net software/product technology 382 444 Database 176 179 Accumulated amortization (58) (46) Net database 118 133 Trade names 192 207 Accumulated amortization (53) (47) Net trade names 139 160 Other (1) 52 54 Accumulated amortization (44) (44) Net other 8 10 Total acquired intangible assets, net $ 2,182 $ 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 September 30, Nine Months Ended 2022 2021 2022 2021 Amortization expense $ 48 $ 37 $ 150 $ 108 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses Included in Consolidated Statements of Operations | Total expense included in the accompanying consolidated statements of operations relating to the aforementioned restructuring program is below: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 2020 MA Strategic Reorganization Restructuring Program $ — $ — $ (1) $ 2 2022 - 2023 Geolocation Restructuring Program 1 — 33 — Total Restructuring $ 1 $ — $ 32 $ 2 |
Changes to the Restructuring Liability | Changes to the restructuring liability for the aforementioned restructuring programs during the first nine months of 2022 were as follows: Employee Termination Costs Balance as of December 31, 2021 $ 4 2020 MA Strategic Reorganization Restructuring Program: Cost incurred and adjustments (1) Cash payments and adjustments (2) 2022 - 2023 Geolocation Restructuring Program: Cost incurred and adjustments 33 Cash payments and adjustments (6) Balance as of September 30, 2022 $ 28 Cumulative expense incurred to date 2020 MA Strategic Reorganization Restructuring Program $ 19 2022 - 2023 Geolocation Restructuring Program $ 33 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2022 and December 31, 2021: Fair Value Measurement as of September 30, 2022 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 181 $ — $ 181 Mutual funds 70 70 — Total $ 251 $ 70 $ 181 Liabilities: Derivatives (1) $ 265 $ — $ 265 Total $ 265 $ — $ 265 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 STATEMENTS OF OPERATIONS INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 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: September 30, 2022 December 31, 2021 Other current assets: Prepaid taxes $ 203 $ 112 Prepaid expenses 105 99 Capitalized costs to obtain and fulfill sales contracts 90 103 Other 65 75 Total other current assets $ 463 $ 389 Other assets: Investments in non-consolidated affiliates $ 504 $ 443 Deposits for real-estate leases 14 14 Indemnification assets related to acquisitions 109 106 Mutual funds and fixed deposits 80 89 Company owned life insurance (at contract value) 38 37 Costs to obtain sales contracts 143 138 Derivative instruments designated as accounting hedges 181 66 Pension and other retirement employee benefits 73 77 Other 77 64 Total other assets $ 1,219 $ 1,034 Accounts payable and accrued liabilities: Salaries and benefits $ 154 $ 211 Incentive compensation 155 324 Customer credits, advanced payments and advanced billings 83 100 Dividends 9 6 Professional service fees 63 75 Interest accrued on debt 51 85 Accounts payable 34 47 Income taxes 79 115 Pension and other retirement employee benefits 7 7 Accrued royalties 18 36 Foreign exchange forwards on certain assets and liabilities 28 12 Restructuring liability 24 4 Other 102 120 Total accounts payable and accrued liabilities $ 807 $ 1,142 Other liabilities: Pension and other retirement employee benefits $ 212 $ 235 Interest accrued on UTPs 44 59 MAKS indemnification provisions 22 33 Income tax liability - non-current portion 23 23 Derivative instruments designated as accounting hedges 237 40 Restructuring liability - non-current portion 4 — Other 46 48 Total other liabilities $ 588 $ 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 sheets: September 30, 2022 December 31, 2021 Equity method investments (1) $ 178 $ 121 Investments measured using the measurement alternative (2) 321 318 Other 5 4 Total investments in non-consolidated affiliates $ 504 $ 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 (expense), net: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 FX gain/(loss) (1) $ 13 $ (2) $ (9) $ (2) Purchase price hedge loss (2) — (13) — (13) Net periodic pension costs - other components 6 4 18 5 Income from investments in non-consolidated affiliates 10 6 14 15 Other (3) 1 (1) 13 Total $ 26 $ (4) $ 22 $ 18 (1) FX loss for the nine months ended September 30, 2022 includes FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia. (2) The amounts for the three and nine months ended September 30, 2021 represent a loss in the prior year on a forward contract used to hedge a portion of the GBP denominated RMS purchase price. |
COMPREHENSIVE INCOME AND ACCU_2
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Reclassifications out of AOCI | The following table provides details about the reclassifications out of AOCL: Three Months Ended September 30, 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 1 — Provision for income taxes Total net gains (losses) on cash flow hedges — (1) Pension and other retirement benefits Amortization of actuarial losses and prior service costs included in net income (1) (2) Other non-operating income, net Settlement charge — (1) Other non-operating income, net Total before income taxes (1) (3) Income tax effect of items above — 1 Provision for income taxes Total pension and other retirement benefits (1) (2) Total net losses included in Net Income attributable to reclassifications out of AOCL $ (1) $ (3) Nine Months Ended September 30, Location in the consolidated statements of operations Losses on currency translation adjustments 2022 2021 Foreign currency translation adjustments - reclassification of losses included in net income $ (20) $ — Other non-operating income, net Total losses on currency translation adjustments (20) — Losses on cash flow hedges Interest rate contract (2) (2) Other non-operating income, net Income tax effect of item above 1 — Provision for income taxes Total net losses on cash flow hedges (1) (2) Gains (losses) on net investment hedges FX forwards — 2 Other non-operating income, net Income tax effect of item above — (1) Provision for income taxes Total net gains on net investment hedges — 1 Pension and other retirement benefits Amortization of actuarial losses and prior service costs included in net income (2) (8) Other non-operating income, net Settlement charge — (8) Other non-operating income, net Total before income taxes (2) (16) Income tax effect of item above — 4 Provision for income taxes Total pension and other retirement benefits (2) (12) Total net losses included in Net Income attributable to reclassifications out of AOCL $ (23) $ (13) |
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 September 30, 2022 December 31, 2021 Net investment hedges Cross currency swaps $ 292 $ 19 FX forwards 29 29 Long-term debt 121 (27) Total net investment hedges $ 442 $ 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 $ 396 $ (26) The following tables show changes in AOCL by component (net of tax): Three Months Ended September 30, 2022 2021 Gains/(Losses) Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance at June 30, $ (46) $ (46) $ (756) $ 249 $ (599) $ (108) $ (48) $ (152) $ (117) $ (425) Other comprehensive income/(loss) before reclassifications — — (343) 193 (150) 3 — (116) 73 (40) Amounts reclassified from AOCL 1 — — — 1 2 1 — — 3 Other comprehensive income/(loss) 1 — (343) 193 (149) 5 1 (116) 73 (37) Balance at September 30, $ (45) $ (46) $ (1,099) $ 442 $ (748) $ (103) $ (47) $ (268) $ (44) $ (462) Nine Months Ended September 30, 2022 2021 Gains/(Losses) Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance at December 31, $ (49) $ (47) $ (335) $ 21 $ (410) $ (118) $ (49) $ (45) $ (220) $ (432) Other comprehensive income/(loss) before reclassifications 2 — (784) 421 (361) 3 — (223) 177 (43) Amounts reclassified from AOCL 2 1 20 — 23 12 2 — (1) 13 Other comprehensive income/(loss) 4 1 (764) 421 (338) 15 2 (223) 176 (30) Balance at September 30, $ (45) $ (46) $ (1,099) $ 442 $ (748) $ (103) $ (47) $ (268) $ (44) $ (462) |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Total Indebtedness | The following table summarizes total indebtedness: September 30, 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 (42) 3 (5) 556 1.75% 2015 Senior Notes, due 2027 490 — — (2) 488 3.25% 2017 Senior Notes, due 2028 500 (38) (3) (2) 457 4.25% 2018 Senior Notes, due 2029 400 (41) (2) (2) 355 4.875% 2018 Senior Notes, due 2048 400 (44) (6) (4) 346 0.950% 2019 Senior Notes, due 2030 735 — (2) (4) 729 3.75% 2020 Senior Notes, due 2025 700 (28) (1) (3) 668 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 — (7) (4) 589 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 (32) (9) (5) 454 4.25% 2022 Senior Notes, due 2032 500 (12) (2) (4) 482 Total long-term debt $ 7,825 $ (237) $ (58) $ (54) $ 7,476 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, Year Ending Total 2022 (After September 30,) $ — 2023 — 2024 500 2025 700 2026 — Thereafter 6,625 Total $ 7,825 |
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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Income $ 5 $ 3 $ 9 $ 7 Expense on borrowings (54) (47) (152) (129) Income (expense) on UTPs and other tax related liabilities (2) (5) (5) (11) 25 Net periodic pension costs - interest component (4) (4) (12) (12) Interest expense, net $ (58) $ (53) $ (166) $ (109) Interest paid (1) $ 77 $ 53 $ 167 $ 139 (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 for the nine months ended September 30, 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 September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt $ 7,476 $ 6,426 $ 7,413 $ 7,982 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Components of Lease Cost | The following table presents the components of the Company’s lease cost: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 25 $ 24 $ 77 $ 71 Sublease income (2) (2) (6) (4) Variable lease cost 5 5 15 15 Total lease cost $ 28 $ 27 $ 86 $ 82 |
Schedule of Operating Leases Information | The following tables present other information related to the Company’s operating leases: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 29 $ 27 $ 89 $ 83 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1 $ 117 $ 31 $ 123 September 30, 2022 September 30, 2021 Weighted-average remaining lease term 5.1 years 5.9 years Weighted-average discount rate applied to operating leases 3.1 % 3.1 % |
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 September 30, 2022: Year Ending December 31, Operating Leases 2022 (After September 30,) $ 29 2023 117 2024 111 2025 96 2026 78 After 2026 102 Total lease payments (undiscounted) 533 Less: Interest 40 Present value of lease liabilities: $ 493 Lease liabilities - current $ 104 Lease liabilities - noncurrent $ 389 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2022 2021 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Total external revenue $ 590 $ 685 $ — $ 1,275 $ 925 $ 601 $ — $ 1,526 Intersegment revenue 43 2 (45) — 42 2 (44) — Revenue 633 687 (45) 1,275 967 603 (44) 1,526 Operating, SG&A 344 479 (45) 778 387 446 (44) 789 Adjusted Operating Income $ 289 $ 208 $ — $ 497 $ 580 $ 157 $ — $ 737 Add: Depreciation and 21 62 — 83 17 44 — 61 Restructuring — 1 — 1 — — — — Operating Income $ 413 $ 676 Nine Months Ended September 30, 2022 2021 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Total external revenue $ 2,123 $ 2,055 $ — $ 4,178 $ 2,941 $ 1,738 $ — $ 4,679 Intersegment revenue 129 5 (134) — 124 6 (130) — Revenue 2,252 2,060 (134) 4,178 3,065 1,744 (130) 4,679 Operating, SG&A 1,038 1,423 (134) 2,327 1,079 1,218 (130) 2,167 Adjusted Operating Income $ 1,214 $ 637 $ — $ 1,851 $ 1,986 $ 526 $ — $ 2,512 Add: Depreciation and amortization 60 182 — 242 53 127 — 180 Restructuring 15 17 — 32 — 2 — 2 Operating Income $ 1,577 $ 2,330 |
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 September 30, Nine Months Ended 2022 2021 2022 2021 MIS: U.S. $ 362 $ 580 $ 1,301 $ 1,809 Non-U.S.: EMEA 139 211 497 707 Asia-Pacific 57 90 211 287 Americas 32 44 114 138 Total Non-U.S. 228 345 822 1,132 Total MIS 590 925 2,123 2,941 MA: U.S. 306 261 913 748 Non-U.S.: EMEA 254 232 774 695 Asia-Pacific 72 59 211 173 Americas 53 49 157 122 Total Non-U.S. 379 340 1,142 990 Total MA 685 601 2,055 1,738 Total MCO $ 1,275 $ 1,526 $ 4,178 $ 4,679 Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 668 $ 841 $ 2,214 $ 2,557 Non-U.S.: EMEA 393 443 1,271 1,402 Asia-Pacific 129 149 422 460 Americas 85 93 271 260 Total Non-U.S. 607 685 1,964 2,122 Total $ 1,275 $ 1,526 $ 4,178 $ 4,679 |
Description of Business and B_3
Description of Business and Basis of Presentation - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2022 segment | |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,275 | $ 1,526 | $ 4,178 | $ 4,679 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (45) | (44) | (134) | (130) |
MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 590 | 925 | 2,123 | 2,941 |
MIS | Corporate Finance (CFG) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 277 | 488 | 1,016 | 1,643 |
MIS | Corporate Finance (CFG) | Investment-grade | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 67 | 105 | 249 | 341 |
MIS | Corporate Finance (CFG) | High-yield | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21 | 82 | 91 | 347 |
MIS | Corporate Finance (CFG) | Bank loans | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 47 | 145 | 232 | 482 |
MIS | Corporate Finance (CFG) | Other accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 142 | 156 | 444 | 473 |
MIS | Structured Finance (SFG) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 101 | 143 | 368 | 399 |
MIS | Structured Finance (SFG) | Other accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 1 | 1 |
MIS | Structured Finance (SFG) | Asset-backed securities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26 | 29 | 89 | 88 |
MIS | Structured Finance (SFG) | RMBS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22 | 31 | 85 | 89 |
MIS | Structured Finance (SFG) | CMBS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 19 | 26 | 84 | 73 |
MIS | Structured Finance (SFG) | Structured credit | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 34 | 57 | 109 | 148 |
MIS | Financial Institutions (FIG) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 109 | 153 | 368 | 465 |
MIS | Financial Institutions (FIG) | Other accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3 | 2 | 9 | 7 |
MIS | Financial Institutions (FIG) | Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 76 | 105 | 258 | 315 |
MIS | Financial Institutions (FIG) | Insurance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24 | 38 | 82 | 114 |
MIS | Financial Institutions (FIG) | Managed investments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6 | 8 | 19 | 29 |
MIS | Public, Project and Infrastructure Finance (PPIF) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 92 | 130 | 337 | 403 |
MIS | Public, Project and Infrastructure Finance (PPIF) | Public finance / sovereign | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44 | 61 | 157 | 191 |
MIS | Public, Project and Infrastructure Finance (PPIF) | Project and infrastructure | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 48 | 69 | 180 | 212 |
MIS | Total ratings revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 579 | 914 | 2,089 | 2,910 |
MIS | MIS Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11 | 11 | 34 | 31 |
MIS | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 633 | 967 | 2,252 | 3,065 |
MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 685 | 601 | 2,055 | 1,738 |
MA | Decision Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 325 | 250 | 971 | 697 |
MA | Research and Insights | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 184 | 177 | 552 | 523 |
MA | Data and Information | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 176 | 174 | 532 | 518 |
MA | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 687 | $ 603 | $ 2,060 | $ 1,744 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Line of Business and Geographical Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,275 | $ 1,526 | $ 4,178 | $ 4,679 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 668 | 841 | 2,214 | 2,557 |
Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 607 | 685 | 1,964 | 2,122 |
MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 590 | 925 | 2,123 | 2,941 |
MIS | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 362 | 580 | 1,301 | 1,809 |
MIS | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 228 | 345 | 822 | 1,132 |
MIS | Corporate Finance (CFG) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 277 | 488 | 1,016 | 1,643 |
MIS | Corporate Finance (CFG) | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 188 | 334 | 673 | 1,093 |
MIS | Corporate Finance (CFG) | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 89 | 154 | 343 | 550 |
MIS | Structured Finance (SFG) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 101 | 143 | 368 | 399 |
MIS | Structured Finance (SFG) | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 69 | 98 | 249 | 254 |
MIS | Structured Finance (SFG) | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 32 | 45 | 119 | 145 |
MIS | Financial Institutions (FIG) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 109 | 153 | 368 | 465 |
MIS | Financial Institutions (FIG) | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 47 | 71 | 165 | 226 |
MIS | Financial Institutions (FIG) | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 62 | 82 | 203 | 239 |
MIS | Public, Project and Infrastructure Finance (PPIF) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 92 | 130 | 337 | 403 |
MIS | Public, Project and Infrastructure Finance (PPIF) | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 57 | 76 | 210 | 233 |
MIS | Public, Project and Infrastructure Finance (PPIF) | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 35 | 54 | 127 | 170 |
MIS | Total ratings revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 579 | 914 | 2,089 | 2,910 |
MIS | Total ratings revenue | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 361 | 579 | 1,297 | 1,806 |
MIS | Total ratings revenue | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 218 | 335 | 792 | 1,104 |
MIS | MIS Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11 | 11 | 34 | 31 |
MIS | MIS Other | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1 | 1 | 4 | 3 |
MIS | MIS Other | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10 | 10 | 30 | 28 |
MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 685 | 601 | 2,055 | 1,738 |
MA | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 306 | 261 | 913 | 748 |
MA | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 379 | 340 | 1,142 | 990 |
MA | Decision Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 325 | 250 | 971 | 697 |
MA | Decision Solutions | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 143 | 107 | 425 | 294 |
MA | Decision Solutions | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 182 | 143 | 546 | 403 |
MA | Research and Insights | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 184 | 177 | 552 | 523 |
MA | Research and Insights | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 100 | 96 | 303 | 284 |
MA | Research and Insights | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 84 | 81 | 249 | 239 |
MA | Data and Information | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 176 | 174 | 532 | 518 |
MA | Data and Information | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 63 | 58 | 185 | 170 |
MA | Data and Information | Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 113 | $ 116 | $ 347 | $ 348 |
Revenues - Consolidated Revenue
Revenues - Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,275 | $ 1,526 | $ 4,178 | $ 4,679 |
MIS | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 590 | 925 | 2,123 | 2,941 |
MA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 685 | 601 | 2,055 | 1,738 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 668 | 841 | 2,214 | 2,557 |
United States | MIS | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 362 | 580 | 1,301 | 1,809 |
United States | MA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 306 | 261 | 913 | 748 |
Non-U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 607 | 685 | 1,964 | 2,122 |
Non-U.S. | MIS | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 228 | 345 | 822 | 1,132 |
Non-U.S. | MA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 379 | 340 | 1,142 | 990 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 393 | 443 | 1,271 | 1,402 |
EMEA | MIS | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 139 | 211 | 497 | 707 |
EMEA | MA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 254 | 232 | 774 | 695 |
Asia-Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 129 | 149 | 422 | 460 |
Asia-Pacific | MIS | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 57 | 90 | 211 | 287 |
Asia-Pacific | MA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 72 | 59 | 211 | 173 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 85 | 93 | 271 | 260 |
Americas | MIS | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 32 | 44 | 114 | 138 |
Americas | MA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 53 | $ 49 | $ 157 | $ 122 |
Revenues - Transaction and Rela
Revenues - Transaction and Relationship Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,275 | $ 1,526 | $ 4,178 | $ 4,679 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 590 | $ 925 | $ 2,123 | $ 2,941 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 685 | $ 601 | $ 2,055 | $ 1,738 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
Corporate Finance (CFG) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 277 | $ 488 | $ 1,016 | $ 1,643 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
Structured Finance (SFG) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 101 | $ 143 | $ 368 | $ 399 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
Financial Institutions (FIG) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 109 | $ 153 | $ 368 | $ 465 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
Public, Project and Infrastructure Finance (PPIF) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 92 | $ 130 | $ 337 | $ 403 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
MIS Other | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 11 | $ 11 | $ 34 | $ 31 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
Decision Solutions | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 325 | $ 250 | $ 971 | $ 697 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
Research and Insights | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 184 | $ 177 | $ 552 | $ 523 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
Data and Information | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 176 | $ 174 | $ 532 | $ 518 |
Percentage of Revenues | 100% | 100% | 100% | 100% |
Transaction Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 334 | $ 668 | $ 1,359 | $ 2,182 |
Percentage of Revenues | 26% | 44% | 33% | 47% |
Transaction Revenue | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 296 | $ 631 | $ 1,235 | $ 2,062 |
Percentage of Revenues | 50% | 68% | 58% | 70% |
Transaction Revenue | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 38 | $ 37 | $ 124 | $ 120 |
Percentage of Revenues | 6% | 6% | 6% | 7% |
Transaction Revenue | Corporate Finance (CFG) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 153 | $ 366 | $ 645 | $ 1,280 |
Percentage of Revenues | 55% | 75% | 63% | 78% |
Transaction Revenue | Structured Finance (SFG) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 51 | $ 93 | $ 217 | $ 251 |
Percentage of Revenues | 50% | 65% | 59% | 63% |
Transaction Revenue | Financial Institutions (FIG) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 41 | $ 83 | $ 159 | $ 252 |
Percentage of Revenues | 38% | 54% | 43% | 54% |
Transaction Revenue | Public, Project and Infrastructure Finance (PPIF) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 50 | $ 88 | $ 211 | $ 276 |
Percentage of Revenues | 54% | 68% | 63% | 68% |
Transaction Revenue | MIS Other | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1 | $ 1 | $ 3 | $ 3 |
Percentage of Revenues | 9% | 9% | 9% | 10% |
Transaction Revenue | Decision Solutions | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 37 | $ 34 | $ 120 | $ 111 |
Percentage of Revenues | 11% | 14% | 12% | 16% |
Transaction Revenue | Research and Insights | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1 | $ 2 | $ 4 | $ 6 |
Percentage of Revenues | 1% | 1% | 1% | 1% |
Transaction Revenue | Data and Information | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 1 | $ 0 | $ 3 |
Percentage of Revenues | 0% | 1% | 0% | 1% |
Recurring Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 941 | $ 858 | $ 2,819 | $ 2,497 |
Percentage of Revenues | 74% | 56% | 67% | 53% |
Recurring Revenue | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 294 | $ 294 | $ 888 | $ 879 |
Percentage of Revenues | 50% | 32% | 42% | 30% |
Recurring Revenue | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 647 | $ 564 | $ 1,931 | $ 1,618 |
Percentage of Revenues | 94% | 94% | 94% | 93% |
Recurring Revenue | Corporate Finance (CFG) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 124 | $ 122 | $ 371 | $ 363 |
Percentage of Revenues | 45% | 25% | 37% | 22% |
Recurring Revenue | Structured Finance (SFG) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 50 | $ 50 | $ 151 | $ 148 |
Percentage of Revenues | 50% | 35% | 41% | 37% |
Recurring Revenue | Financial Institutions (FIG) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 68 | $ 70 | $ 209 | $ 213 |
Percentage of Revenues | 62% | 46% | 57% | 46% |
Recurring Revenue | Public, Project and Infrastructure Finance (PPIF) | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 42 | $ 42 | $ 126 | $ 127 |
Percentage of Revenues | 46% | 32% | 37% | 32% |
Recurring Revenue | MIS Other | MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 10 | $ 10 | $ 31 | $ 28 |
Percentage of Revenues | 91% | 91% | 91% | 90% |
Recurring Revenue | Decision Solutions | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 288 | $ 216 | $ 851 | $ 586 |
Percentage of Revenues | 89% | 86% | 88% | 84% |
Recurring Revenue | Research and Insights | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 183 | $ 175 | $ 548 | $ 517 |
Percentage of Revenues | 99% | 99% | 99% | 99% |
Recurring Revenue | Data and Information | MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 176 | $ 173 | $ 532 | $ 515 |
Percentage of Revenues | 100% | 99% | 100% | 99% |
Revenues - Revenue Recognition
Revenues - Revenue Recognition Timing (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized | $ 1,275 | $ 1,526 | $ 4,178 | $ 4,679 |
At Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized | 316 | 660 | 1,312 | 2,140 |
Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized | 959 | 866 | 2,866 | 2,539 |
MIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized | 590 | 925 | 2,123 | 2,941 |
MIS | At Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized | 296 | 631 | 1,235 | 2,062 |
MIS | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized | 294 | 294 | 888 | 879 |
MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized | 685 | 601 | 2,055 | 1,738 |
MA | At Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized | 20 | 29 | 77 | 78 |
MA | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized | $ 665 | $ 572 | $ 1,978 | $ 1,660 |
Revenues - Unbilled Receivables
Revenues - Unbilled Receivables (Detail) - Accounts Receivable - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled Receivables | $ 381 | $ 386 |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled Receivables | $ 147 | $ 152 |
Revenues - Schedule of Changes
Revenues - Schedule of Changes in the Deferred Revenue Balances (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Change in Contract with Customer, Liability [Abstract] | |||||
Beginning Balance | $ 1,366 | $ 1,235 | $ 1,335 | $ 1,187 | |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (590) | (602) | (1,069) | (1,014) | |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 471 | 478 | 1,037 | 937 | |
Increases due to acquisitions during the period | 0 | 89 | 1 | 93 | |
Effect of exchange rate changes | (14) | (14) | (71) | (17) | |
Total changes in deferred revenue | (133) | (49) | (102) | (1) | |
Ending Balance | 1,233 | 1,186 | 1,233 | 1,186 | |
Deferred revenue - current | 1,155 | 1,099 | 1,155 | 1,099 | $ 1,249 |
Deferred revenue - non-current | 78 | 87 | 78 | 87 | $ 86 |
MIS | |||||
Change in Contract with Customer, Liability [Abstract] | |||||
Beginning Balance | 347 | 368 | 296 | 313 | |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (110) | (118) | (186) | (200) | |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 82 | 85 | 218 | 224 | |
Increases due to acquisitions during the period | 0 | 0 | 0 | 0 | |
Effect of exchange rate changes | (5) | (2) | (14) | (4) | |
Total changes in deferred revenue | (33) | (35) | 18 | 20 | |
Ending Balance | 314 | 333 | 314 | 333 | |
Deferred revenue - current | 238 | 247 | 238 | 247 | |
Deferred revenue - non-current | 76 | 86 | 76 | 86 | |
MA | |||||
Change in Contract with Customer, Liability [Abstract] | |||||
Beginning Balance | 1,019 | 867 | 1,039 | 874 | |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (480) | (484) | (883) | (814) | |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 389 | 393 | 819 | 713 | |
Increases due to acquisitions during the period | 0 | 89 | 1 | 93 | |
Effect of exchange rate changes | (9) | (12) | (57) | (13) | |
Total changes in deferred revenue | (100) | (14) | (120) | (21) | |
Ending Balance | 919 | 853 | 919 | 853 | |
Deferred revenue - current | 917 | 852 | 917 | 852 | |
Deferred revenue - non-current | $ 2 | $ 1 | $ 2 | $ 1 |
Revenues - Expected Recognition
Revenues - Expected Recognition Period for Remaining Performance Obligations (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, explanation | 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 September 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $103 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 September 30, 2022 as well as amounts not yet invoiced to customers as of September 30, 2022, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of September 30, 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 30% of this balance between one to two years and the remaining amount thereafter. |
MIS | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 103 |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 20% |
Revenue, remaining performance obligation, period | 1 year |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 50% |
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]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 60% |
Revenue, remaining performance obligation, period | 1 year |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 30% |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | ||||
Stock-based compensation cost | $ 46 | $ 41 | $ 130 | $ 127 |
Tax benefit | $ 10 | $ 8 | $ 30 | $ 29 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
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 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Other than options, shares granted (in shares) | shares | 0.6 |
Other than options, weighted average grant date fair value (in usd per share) | $ / shares | $ 321.70 |
Award vesting period | 4 years |
Unrecognized compensation expense | $ | $ 260 |
Weighted average period to recognize expense | 2 years 7 months 6 days |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Unrecognized compensation expense | $ | $ 18 |
Weighted average period to recognize expense | 2 years 1 month 6 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 | $ 310.62 |
Award vesting period | 3 years |
Unrecognized compensation expense | $ | $ 34 |
Weighted average period to recognize expense | 1 year 7 months 6 days |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions used in Determining Fair Value for Options Granted (Detail) | 9 Months Ended |
Sep. 30, 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% |
Risk-free interest rate | 1.91% |
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 | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Proceeds from stock option exercises | $ 6 | $ 20 |
Aggregate intrinsic value | 7 | 44 |
Tax benefit realized upon exercise | $ 2 | $ 10 |
Number of shares exercised (shares) | 41 | 200 |
Restricted Stock | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Fair value of shares vested | $ 174 | $ 193 |
Tax benefit realized upon vesting | $ 41 | $ 43 |
Number of shares vested (shares) | 500 | 700 |
Performance Based Restricted Stock | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Fair value of shares vested | $ 50 | $ 28 |
Tax benefit realized upon vesting | $ 7 | $ 4 |
Number of shares vested (shares) | 200 | 100 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (percent) | 20.50% | 23.40% | 21.30% | 20.20% |
Increase in effective income tax due to resolution of uncertain tax positions | (2.90%) | 1.10% | ||
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) | $ (28) | $ (80) | ||
Income tax examination, description | 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 2020 are currently under examination and 2021 remains open to examination. The Company’s New York State tax returns for 2017 through 2018 and New York City tax returns for 2015 through 2018 are currently under examination. The Company’s U.K. tax returns for 2012 through 2020 remain open to examination. | |||
Overall increase (decrease) in unrecognized tax benefits (UTPs), net of federal tax | $ (75) | |||
Inflation reduction act impact on ETR | In August 2022, the U.S. Congress passed the Inflation Reduction Act, which included a corporate minimum tax on book earnings of 15%, an excise tax on corporate share repurchases of 1%, and certain climate change and energy tax credit incentives. The adoption of a corporate minimum tax of 15% is not expected to impact Moody’s ETR. The excise tax of 1% on corporate share buybacks will not have an impact on the Company’s ETR for the years 2022 or 2023. |
Income Taxes - Income Taxes Pai
Income Taxes - Income Taxes Paid (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income taxes paid | $ 394 | $ 501 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Basic (in shares) | 183.2 | 186 | 184.1 | 186.6 |
Dilutive effect of shares issuable under stock-based compensation plans (in shares) | 0.7 | 1.3 | 0.8 | 1.4 |
Diluted (in shares) | 183.9 | 187.3 | 184.9 | 188 |
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) | 0.5 | 0.1 | 0.4 | 0.2 |
Accelerated Share Repurchase _2
Accelerated Share Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 2 Months Ended | |
Mar. 01, 2022 | Apr. 30, 2022 | Apr. 30, 2022 | |
Accelerated Share Repurchases [Line Items] | |||
Accelerated share repurchases, final price paid per share (in usd per share) | $ 324.20 | ||
Accelerated Share Repurchases | |||
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 | |||
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 1,656 | $ 1,811 |
Short-term investments | 89 | 91 |
Other assets | 1,219 | 1,034 |
Certificates of deposit and money market deposit accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 739 | 691 |
Gains/(Losses) | 0 | 0 |
Fair Value | 739 | 691 |
Cash and cash equivalents | 640 | 584 |
Short-term investments | 89 | 91 |
Other assets | 10 | 16 |
Mutual funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 72 | 65 |
Gains/(Losses) | (2) | 8 |
Fair Value | 70 | 73 |
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Other assets | $ 70 | $ 73 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments (Footnote) (Detail) - Certificates of deposit and money market deposit accounts | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 | 27 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 | Sep. 30, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Company owned life insurance (at contract value) | $ 38 | $ 37 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 15, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 5,617 | $ 5,999 | $ 4,556 | |
MA | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 5,239 | 5,603 | 4,245 | |
MIS | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 378 | 396 | $ 311 | |
RMS | ||||
Business Acquisition [Line Items] | ||||
Business acquisition interests acquired | 100% | |||
Goodwill | $ 1,357 | |||
Indemnification asset, amount | 95 | |||
RMS | Selling, General and Administrative Expenses | ||||
Business Acquisition [Line Items] | ||||
Transaction costs | $ 22 | |||
RMS | MA | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 1,267 | |||
RMS | MIS | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 90 |
Acquisitions - Total Considerat
Acquisitions - Total Consideration Relating to Acquisition (Details) - RMS $ in Millions | Sep. 15, 2021 USD ($) |
Business Acquisition [Line Items] | |
Cash paid at closing | $ 1,922 |
Replacement equity compensation awards | 5 |
Total consideration | $ 1,927 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 15, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 5,617 | $ 5,999 | $ 4,556 | |
RMS | ||||
Business Acquisition [Line Items] | ||||
Cash (1) | $ 55 | |||
Accounts receivable | 38 | |||
Other current assets (1) | 12 | |||
Property and equipment, net | 13 | |||
Operating lease right-of-use assets | 64 | |||
Total intangible assets | 779 | |||
Goodwill | 1,357 | |||
Deferred tax assets, net | 50 | |||
Other assets | 99 | |||
Liabilities: | ||||
Accounts payable and accrued liabilities (1) | (96) | |||
Deferred revenue | (89) | |||
Operating lease liabilities | (68) | |||
Deferred tax liabilities, net | (214) | |||
Uncertain tax positions (1) | (71) | |||
Other liabilities | (2) | |||
Total liabilities | (540) | |||
Net assets acquired | $ 1,927 | |||
Acquired finite-lived intangible asset, useful life | 18 years | |||
Business combination, provisional information, initial accounting Incomplete, uncertain tax positions, decrease | 25 | |||
Goodwill, period decrease | $ 19 | |||
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 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - RMS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Pro forma Revenue | $ 1,597 | $ 4,910 |
Pro forma Net Income attributable to Moody's | $ 506 | $ 1,807 |
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 | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Notional Amount | $ 2,550 | $ 1,650 |
2017 Senior Notes due 2023 | ||
Derivative [Line Items] | ||
Notional Amount | $ 0 | 250 |
Floating Interest Rate | 3-month USD LIBOR | |
2017 Senior Notes due 2028 | ||
Derivative [Line Items] | ||
Notional Amount | $ 500 | 500 |
Floating Interest Rate | 3-month USD LIBOR | |
2020 Senior Notes due 2025 | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | 300 |
Floating Interest Rate | 6-month USD LIBOR | |
2014 Senior Notes due 2044 | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | 300 |
Floating Interest Rate | 3-month USD LIBOR | |
2018 Senior Notes due 2048 | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | 300 |
Floating Interest Rate | 3-month USD LIBOR | |
2018 Senior Notes due 2029 | ||
Derivative [Line Items] | ||
Notional Amount | $ 400 | 0 |
Floating Interest Rate | SOFR | |
2022 Senior Notes due 2052 | ||
Derivative [Line Items] | ||
Notional Amount | $ 500 | 0 |
Floating Interest Rate | SOFR | |
Two Thousand And Twenty Two Due Two Thousand And Thirty Two | ||
Derivative [Line Items] | ||
Notional Amount | $ 250 | $ 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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest expense, net | $ (58) | $ (53) | $ (166) | $ (109) |
Designated as Hedging Instrument | Interest Rate Swap | Fair Value hedge Net Interest Settlements and Accruals | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net interest settlements and accruals on interest rate swaps | (4) | 6 | 5 | 17 |
Designated as Hedging Instrument | Interest Rate Swap | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value changes on interest rate swaps | (95) | (16) | (227) | (40) |
Fair value changes on hedged debt | $ 95 | $ 16 | $ 227 | $ 40 |
Derivative Instruments And He_5
Derivative Instruments And Hedging Activities - Additional Information (Detail) € in Millions, $ in Millions | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Dec. 31, 2021 USD ($) |
Derivative [Line Items] | |||
Cumulative loss | $ 748 | $ 410 | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Cumulative loss | (396) | 26 | |
Net Investment Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Cumulative loss | (442) | (21) | |
Net Investment Hedging | Designated as Hedging Instrument | Currency Swap | |||
Derivative [Line Items] | |||
Notional Amount | € | € 2,903 | ||
Cumulative loss | (292) | (19) | |
Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Cumulative loss | 46 | 47 | |
Cash Flow Hedging | Designated as Hedging Instrument | Currency Swap | |||
Derivative [Line Items] | |||
Cumulative loss | $ (2) | $ (2) | |
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 | Currency Swap | |||
Derivative [Line Items] | |||
Notional Amount | € | € 500 | ||
2019 Senior Notes Due 2030 | Net Investment Hedging | Designated as Hedging Instrument | Currency Swap | |||
Derivative [Line Items] | |||
Notional Amount | € | € 750 | ||
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) - Currency Swap - Net Investment Hedging € in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | |
Currency Paid | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 2,903 | € 2,088 | ||
Currency Paid | 2.16% | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 765 | € 909 | ||
Weighted Average Fixed Interest Rate | 3.67% | 2.16% | 3.67% | 2.16% |
Currency Paid | 3-month EURIBOR One | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 450 | € 1,179 | ||
Floating Interest Rate | Based on 3-month EURIBOR | Based on 3-month EURIBOR | ||
Currency Paid | Based on ESTR | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 1,688 | |||
Floating Interest Rate | Based on ESTR | |||
Currency Received | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 3,050 | $ 2,400 | ||
Currency Received | 4.45% | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 800 | $ 1,050 | ||
Weighted Average Fixed Interest Rate | 5.25% | 4.45% | 5.25% | 4.45% |
Currency Received | 3-month U.S. LIBOR | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 500 | $ 1,350 | ||
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 | $ | $ 1,750 | |||
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 - Currency Swap € in Millions | Sep. 30, 2022 EUR (€) |
Net Investment Hedging | |
Derivative [Line Items] | |
Notional Amount | € 2,903 |
2026 | |
Derivative [Line Items] | |
Notional Amount | 450 |
2027 | |
Derivative [Line Items] | |
Notional Amount | 531 |
2028 | |
Derivative [Line Items] | |
Notional Amount | 588 |
2029 | |
Derivative [Line Items] | |
Notional Amount | 373 |
2031 | |
Derivative [Line Items] | |
Notional Amount | 481 |
2032 | |
Derivative [Line Items] | |
Notional Amount | € 480 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | $ 193 | $ 73 | $ 421 | $ 177 |
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 | 0 | (1) | (1) | (2) |
Total, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 0 | (1) | (1) | (1) |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 17 | 8 | 38 | 27 |
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 | 193 | 72 | 421 | 177 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 0 | 0 | 1 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 17 | 8 | 38 | 27 |
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 | 1 | 0 | 0 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 0 | (1) | (1) | (2) |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 | 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 | 2 | 0 | 18 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 0 | 0 | 1 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 |
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 | 131 | 44 | 273 | 98 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 0 | 0 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 17 | 8 | 38 | 27 |
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 | 62 | 26 | 148 | 61 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 0 | 0 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 |
Interest rate contracts | 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 | 1 | 0 | 0 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 0 | (1) | (1) | (2) |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | $ 0 | $ 0 | $ 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 | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | $ (748) | $ (410) |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 396 | (26) |
Net Investment Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 442 | 21 |
Net Investment Hedging | Cross currency swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 292 | 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 | 121 | (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 contracts | 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 | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Sep. 30, 2022 GBP (£) | Sep. 30, 2022 JPY (¥) | Sep. 30, 2022 CAD ($) | Sep. 30, 2022 SGD ($) | Sep. 30, 2022 RUB (₽) | Sep. 30, 2022 INR (₨) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 JPY (¥) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 SGD ($) | Dec. 31, 2021 RUB (₽) | Dec. 31, 2021 INR (₨) |
Contracts to sell USD for GBP | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | $ 138 | £ 115 | $ 126 | £ 92 | ||||||||||||
Contracts to sell USD for Japanese yen | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 18 | ¥ 2,500 | 22 | ¥ 2,500 | ||||||||||||
Contracts to sell USD for Canadian dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 141 | $ 183 | 120 | $ 150 | ||||||||||||
Contracts to sell USD for Singapore dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 58 | $ 80 | 67 | $ 90 | ||||||||||||
Contracts to sell USD for euros | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 332 | € 325 | 364 | € 315 | ||||||||||||
Contracts to sell USD for Russian ruble | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 0 | ₽ 0 | 16 | ₽ 1,200 | ||||||||||||
Contracts to sell USD for Indian rupee | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 20 | ₨ 1,600 | 7 | ₨ 500 | ||||||||||||
Contracts to sell GBP for USD | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 0 | £ 0 | 231 | £ 172 | ||||||||||||
Contracts to sell euros for USD | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | $ 134 | € 135 | $ 0 | € 0 |
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) £ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 GBP (£) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign exchange forwards amount of gain (loss) recognized in income | $ 0 | $ (13) | $ 0 | $ (13) | |
Not Designated as Accounting Hedges | FX forwards | RMS | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional Amount | 1,675 | 1,675 | £ 1,200 | ||
Other non-operating income, net | Not Designated as Accounting Hedges | FX forwards | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign exchange forwards amount of gain (loss) recognized in income | (46) | (18) | (103) | (25) | |
Other non-operating income, net | Not Designated as Accounting Hedges | FX forwards | RMS | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign exchange forwards amount of gain (loss) recognized in income | $ 0 | $ (13) | $ 0 | $ (13) |
Derivative Instruments And H_12
Derivative Instruments And Hedging Activities - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 181 | $ 67 |
Liabilities | 1,490 | 1,473 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 181 | 66 |
Liabilities | 237 | 40 |
Designated as Hedging Instrument | Long-term debt | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 1,225 | 1,421 |
Designated as Hedging Instrument | Currency Swap | Other assets | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 181 | 53 |
Designated as Hedging Instrument | Currency Swap | Other liabilities | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 0 | 17 |
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 | 237 | 23 |
Not Designated as Accounting Hedges | FX forwards | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 1 |
Not Designated as Accounting Hedges | FX forwards | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ 28 | $ 12 |
Goodwill And Other Acquired I_3
Goodwill And Other Acquired Intangible Assets - Activity in Goodwill (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 | 90 | 1,615 |
Foreign currency translation adjustments | (472) | (172) |
Ending balance, goodwill gross | 5,629 | 6,011 |
Ending balance, Accumulated impairment charge | (12) | (12) |
Ending balance, goodwill net | 5,617 | 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 | 3 | 90 |
Foreign currency translation adjustments | (21) | (5) |
Ending balance, goodwill gross | 378 | 396 |
Ending balance, Accumulated impairment charge | 0 | 0 |
Ending balance, goodwill net | 378 | 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 | 87 | 1,525 |
Foreign currency translation adjustments | (451) | (167) |
Ending balance, goodwill gross | 5,251 | 5,615 |
Ending balance, Accumulated impairment charge | (12) | (12) |
Ending balance, goodwill net | $ 5,239 | $ 5,603 |
Goodwill And Other Acquired I_4
Goodwill And Other Acquired Intangible Assets - Acquired Intangible Assets and Related Amortization (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, net | $ 2,182 | $ 2,467 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 1,947 | 2,101 |
Accumulated amortization | (412) | (381) |
Acquired intangible assets, net | 1,535 | 1,720 |
Software/product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 633 | 663 |
Accumulated amortization | (251) | (219) |
Acquired intangible assets, net | 382 | 444 |
Database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 176 | 179 |
Accumulated amortization | (58) | (46) |
Acquired intangible assets, net | 118 | 133 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 192 | 207 |
Accumulated amortization | (53) | (47) |
Acquired intangible assets, net | 139 | 160 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 52 | 54 |
Accumulated amortization | (44) | (44) |
Acquired intangible assets, net | $ 8 | $ 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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 48 | $ 37 | $ 150 | $ 108 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 24 Months Ended | 27 Months Ended | |||
Jun. 30, 2022 | Dec. 22, 2020 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2024 | Sep. 30, 2021 | |
2022-2023 Geolocation Restructuring Program | Minimum | Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | $ 75 | |||||
2022-2023 Geolocation Restructuring Program | Maximum | Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | $ 100 | |||||
2022-2023 Geolocation Restructuring Program | Estimated Annual Savings | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Effect on future earnings, amount | $ 100 | |||||
2022-2023 Geolocation Restructuring Program | Estimated Annual Savings | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Effect on future earnings, amount | $ 135 | |||||
2020 MA Strategic Reorganization Restructuring Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost incurred to date | $ 19 | |||||
2020 MA Strategic Reorganization Restructuring Program | Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | $ 20 | |||||
2020 MA Strategic Reorganization Restructuring Program | Estimated Annual Savings | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Effect on future earnings, amount | $ 20 | |||||
Termination or Sublease of Affected Real Estate Leases | 2022-2023 Geolocation Restructuring Program | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expected cost | $ 50 | |||||
Termination or Sublease of Affected Real Estate Leases | 2022-2023 Geolocation Restructuring Program | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expected cost | 70 | |||||
Employee Severance | 2022-2023 Geolocation Restructuring Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | 6 | |||||
Cost incurred to date | 33 | |||||
Employee Severance | 2022-2023 Geolocation Restructuring Program | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expected cost | 75 | |||||
Employee Severance | 2022-2023 Geolocation Restructuring Program | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expected cost | 100 | |||||
Employee Severance | 2020 MA Strategic Reorganization Restructuring Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | 2 | |||||
Cost incurred to date | $ 19 |
Restructuring - Restructuring E
Restructuring - Restructuring Expenses Included in Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 1 | $ 0 | $ 32 | $ 2 |
2020 MA Strategic Reorganization Restructuring Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 0 | 0 | (1) | 2 |
2022-2023 Geolocation Restructuring Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 1 | $ 0 | $ 33 | $ 0 |
Restructuring - Changes in Rest
Restructuring - Changes in Restructuring Liability (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability, Beginning Balance | $ 4 | |
Restructuring liability, Ending Balance | 28 | |
2020 MA Strategic Reorganization Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Cost incurred to date | $ 19 | |
2020 MA Strategic Reorganization Restructuring Program | Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Cost incurred and adjustments | (1) | |
Cash payments and adjustments | (2) | |
Cost incurred to date | 19 | |
2022-2023 Geolocation Restructuring Program | Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Cost incurred and adjustments | 33 | |
Cash payments and adjustments | (6) | |
Cost incurred to date | $ 33 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Carried at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Derivatives | $ 181 | $ 67 |
Total | 251 | 140 |
Liabilities: | ||
Derivatives | 265 | 52 |
Total | 265 | 52 |
Mutual Funds | ||
Assets: | ||
Mutual funds | 70 | 73 |
Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Total | 70 | 73 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total | 0 | 0 |
Level 1 | Mutual Funds | ||
Assets: | ||
Mutual funds | 70 | 73 |
Level 2 | ||
Assets: | ||
Derivatives | 181 | 67 |
Total | 181 | 67 |
Liabilities: | ||
Derivatives | 265 | 52 |
Total | 265 | 52 |
Level 2 | Mutual Funds | ||
Assets: | ||
Mutual funds | $ 0 | $ 0 |
OTHER BALANCE SHEET AND STATE_3
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION - Additional Details Related to Certain Balance Sheet Captions (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other current assets: | ||
Prepaid taxes | $ 203 | $ 112 |
Prepaid expenses | 105 | 99 |
Capitalized costs to obtain and fulfill sales contracts | 90 | 103 |
Other | 65 | 75 |
Total other current assets | 463 | 389 |
Other assets: | ||
Investments in non-consolidated affiliates | 504 | 443 |
Deposits for real-estate leases | 14 | 14 |
Indemnification assets related to acquisitions | 109 | 106 |
Mutual funds and fixed deposits | 80 | 89 |
Company owned life insurance (at contract value) | 38 | 37 |
Costs to obtain sales contracts | 143 | 138 |
Derivative instruments designated as accounting hedges | 181 | 66 |
Pension and other retirement employee benefits | 73 | 77 |
Other | 77 | 64 |
Total other assets | 1,219 | 1,034 |
Accounts payable and accrued liabilities: | ||
Salaries and benefits | 154 | 211 |
Incentive compensation | 155 | 324 |
Customer credits, advanced payments and advanced billings | 83 | 100 |
Dividends | 9 | 6 |
Professional service fees | 63 | 75 |
Interest accrued on debt | 51 | 85 |
Accounts payable | 34 | 47 |
Income taxes | 79 | 115 |
Pension and other retirement employee benefits | 7 | 7 |
Accrued royalties | 18 | 36 |
Foreign exchange forwards on certain assets and liabilities | 28 | 12 |
Restructuring liability | 24 | 4 |
Other | 102 | 120 |
Total accounts payable and accrued liabilities | 807 | 1,142 |
Other liabilities: | ||
Pension and other retirement employee benefits | 212 | 235 |
Interest accrued on UTPs | 44 | 59 |
MAKS indemnification provisions | 22 | 33 |
Income tax liability - non-current portion | 23 | 23 |
Derivative instruments designated as accounting hedges | 237 | 40 |
Restructuring liability - non-current portion | 4 | 0 |
Other | 46 | 48 |
Total other liabilities | $ 588 | $ 438 |
OTHER BALANCE SHEET AND STATE_4
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Other Balance Sheet And Statement Of Operations Information [Abstract] | |
Expected credit losses | $ 10 |
OTHER BALANCE SHEET AND STATE_5
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION - Investments in Non-Consolidated Affiliates (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other Balance Sheet And Statement Of Operations Information [Abstract] | ||
Equity method investments | $ 178 | $ 121 |
Investments measured using the measurement alternative | 321 | 318 |
Other | 5 | 4 |
Total investments in non-consolidated affiliates | $ 504 | $ 443 |
OTHER BALANCE SHEET AND STATE_6
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION - Other Non-Operating Interest (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Balance Sheet And Statement Of Operations Information [Abstract] | ||||
FX gain (loss) | $ 13 | $ (2) | $ (9) | $ (2) |
Purchase price hedge loss | 0 | (13) | 0 | (13) |
Net periodic pension costs - other components | 6 | 4 | 18 | 5 |
Income from investments in non-consolidated affiliates | 10 | 6 | 14 | 15 |
Other | (3) | 1 | (1) | 13 |
Total | $ 26 | $ (4) | 22 | $ 18 |
FX losses related to liquidation of Russian subsidiaries | $ 20 |
Comprehensive Income And Accu_3
Comprehensive Income And Accumulated Other Comprehensive Loss - Reclassification out of AOCI (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other non-operating income (expense), net | $ 26 | $ (4) | $ 22 | $ 18 |
Provision for income taxes | (78) | (145) | (305) | (452) |
Total before income taxes | 381 | 619 | 1,433 | 2,239 |
Net income attributable to Moody's | 303 | 474 | 1,128 | 1,787 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net income attributable to Moody's | (1) | (3) | (23) | (13) |
Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other non-operating income (expense), net | (20) | 0 | ||
Net income attributable to Moody's | (20) | 0 | ||
Gains (losses) on net investment hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Provision for income taxes | 1 | 0 | 1 | 0 |
Net income attributable to Moody's | 0 | (1) | (1) | (2) |
Gains (losses) on net investment hedges | Reclassification out of Accumulated Other Comprehensive Income | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other non-operating income (expense), net | (1) | (1) | (2) | (2) |
Net Investment Hedges | 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 | 1 | ||
Net Investment Hedges | Reclassification out of Accumulated Other Comprehensive Income | FX forwards | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other non-operating income (expense), net | 0 | 2 | ||
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 | 0 | 4 |
Total before income taxes | (1) | (3) | (2) | (16) |
Net income attributable to Moody's | (1) | (2) | (2) | (12) |
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 (expense), net | (1) | (2) | (2) | (8) |
Settlement charge | Reclassification out of Accumulated Other Comprehensive Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other non-operating income (expense), net | $ 0 | $ (1) | $ 0 | $ (8) |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 2,727 | |||
Ending balance | $ 2,255 | 2,255 | ||
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (599) | $ (425) | (410) | $ (432) |
Other comprehensive income/(loss) before reclassifications | (150) | (40) | (361) | (43) |
Amounts reclassified from AOCL | 1 | 3 | 23 | 13 |
Other comprehensive income/(loss) | (149) | (37) | (338) | (30) |
Ending balance | (748) | (462) | (748) | (462) |
Pension and Other Retirement Benefits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (46) | (108) | (49) | (118) |
Other comprehensive income/(loss) before reclassifications | 0 | 3 | 2 | 3 |
Amounts reclassified from AOCL | 1 | 2 | 2 | 12 |
Other comprehensive income/(loss) | 1 | 5 | 4 | 15 |
Ending balance | (45) | (103) | (45) | (103) |
Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (46) | (48) | (47) | (49) |
Other comprehensive income/(loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCL | 0 | 1 | 1 | 2 |
Other comprehensive income/(loss) | 0 | 1 | 1 | 2 |
Ending balance | (46) | (47) | (46) | (47) |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (756) | (152) | (335) | (45) |
Other comprehensive income/(loss) before reclassifications | (343) | (116) | (784) | (223) |
Amounts reclassified from AOCL | 0 | 0 | 20 | 0 |
Other comprehensive income/(loss) | (343) | (116) | (764) | (223) |
Ending balance | (1,099) | (268) | (1,099) | (268) |
Net Investment Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 249 | (117) | 21 | (220) |
Other comprehensive income/(loss) before reclassifications | 193 | 73 | 421 | 177 |
Amounts reclassified from AOCL | 0 | 0 | 0 | (1) |
Other comprehensive income/(loss) | 193 | 73 | 421 | 176 |
Ending balance | $ 442 | $ (44) | $ 442 | $ (44) |
Indebtedness - Summary of Total
Indebtedness - Summary of Total Indebtedness (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal Amount | $ 7,825 | $ 7,521 |
Fair Value of Interest Rate Swap | (237) | (10) |
Unamortized (Discount) Premium | (58) | (48) |
Unamortized Debt Issuance Costs | (54) | (50) |
Carrying Amount | $ 7,476 | $ 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 | (42) | (7) |
Unamortized (Discount) Premium | 3 | 3 |
Unamortized Debt Issuance Costs | (5) | (5) |
Carrying Amount | $ 556 | $ 591 |
1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 1.75% | 1.75% |
Principal Amount | $ 490 | $ 568 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | 0 | 0 |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 488 | $ 566 |
2.625% 2017 Senior Notes, due 2023 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.625% | |
Principal Amount | $ 500 | |
Fair Value of Interest Rate Swap | 5 | |
Unamortized (Discount) Premium | 0 | |
Unamortized Debt Issuance Costs | (1) | |
Carrying Amount | $ 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 | (38) | 8 |
Unamortized (Discount) Premium | (3) | (3) |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 457 | $ 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 | (41) | 0 |
Unamortized (Discount) Premium | (2) | (2) |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 355 | $ 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 | (44) | (7) |
Unamortized (Discount) Premium | (6) | (6) |
Unamortized Debt Issuance Costs | (4) | (4) |
Carrying Amount | $ 346 | $ 383 |
0.950% Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 0.95% | 0.95% |
Principal Amount | $ 735 | $ 853 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (2) | (2) |
Unamortized Debt Issuance Costs | (4) | (5) |
Carrying Amount | $ 729 | $ 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 | (28) | (9) |
Unamortized (Discount) Premium | (1) | (1) |
Unamortized Debt Issuance Costs | (3) | (4) |
Carrying Amount | $ 668 | $ 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% | 2% |
Principal Amount | $ 600 | $ 600 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (7) | (8) |
Unamortized Debt Issuance Costs | (4) | (5) |
Carrying Amount | $ 589 | $ 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 | (32) | |
Unamortized (Discount) Premium | (9) | |
Unamortized Debt Issuance Costs | (5) | |
Carrying Amount | $ 454 | |
4.25% 2022 Senior Notes, due 2032 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.25% | |
Principal Amount | $ 500 | |
Fair Value of Interest Rate Swap | (12) | |
Unamortized (Discount) Premium | (2) | |
Unamortized Debt Issuance Costs | (4) | |
Carrying Amount | $ 482 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||
Repayments of notes payable | $ 500 | $ 0 |
Debt Instrument, Covenant Compliance | At September 30, 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 September 30, 2022, there were no such cross defaults. | |
2017 Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Repayments of notes payable | $ 500 |
Indebtedness - Principal Paymen
Indebtedness - Principal Payments Due on Long-Term Borrowings (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
2022 (After September 30,) | $ 0 | |
2023 | 0 | |
2024 | 500 | |
2025 | 700 | |
2026 | 0 | |
Thereafter | 6,625 | |
Total principal payment | 7,825 | $ 7,521 |
4.875% 2013 Senior Notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 500 | 500 |
5.25% 2014 Senior Notes, due 2044 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 600 | 600 |
1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 490 | 568 |
2.625% 2017 Senior Notes, due 2023 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 500 | |
3.25% 2017 Senior Notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 500 | 500 |
4.25% 2018 Senior Notes, due 2029 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 400 | 400 |
4.875% 2018 Senior Notes, due 2048 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 400 | 400 |
0.950% Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 735 | 853 |
3.75% 2020 Senior Notes, due 2025 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 700 | 700 |
3.25% 2020 Senior Notes, due 2050 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 300 | 300 |
2.55% 2020 Senior Notes, due 2060 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 500 | 500 |
2.00% 2021 Senior Notes, due 2031 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 600 | 600 |
2.75% 2021 Senior Notes, due 2041 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 600 | 600 |
3.10% 2021 Senior Notes, due 2061 | ||
Debt Instrument [Line Items] | ||
Total principal payment | 500 | $ 500 |
3.75% 2022 Senior Notes, due 2052 | ||
Debt Instrument [Line Items] | ||
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Income | $ 5 | $ 3 | $ 9 | $ 7 |
Expense on borrowings | (54) | (47) | (152) | (129) |
Income (expense) on UTPs and other tax related liabilities | (5) | (5) | (11) | 25 |
Net periodic pension costs - interest component | (4) | (4) | (12) | (12) |
Interest expense, net | (58) | (53) | (166) | (109) |
Interest paid | $ 77 | $ 53 | $ 167 | 139 |
Interest accrued on UTPs | $ 40 |
Indebtedness - Fair Value and C
Indebtedness - Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Carrying Amount | $ 7,476 | $ 7,413 |
Estimated Fair Value | $ 6,426 | $ 7,982 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) | Sep. 30, 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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lease, Cost [Abstract] | ||||
Operating lease cost | $ 25 | $ 24 | $ 77 | $ 71 |
Sublease income | (2) | (2) | (6) | (4) |
Variable lease cost | 5 | 5 | 15 | 15 |
Total lease cost | $ 28 | $ 27 | $ 86 | $ 82 |
Lease Commitments - Operating L
Lease Commitments - Operating Leases Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 29 | $ 27 | $ 89 | $ 83 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1 | $ 117 | $ 31 | $ 123 |
Weighted-average remaining lease term (years) | 5 years 1 month 6 days | 5 years 10 months 24 days | 5 years 1 month 6 days | 5 years 10 months 24 days |
Weighted-average discount rate applied to operating leases (percent) | 3.10% | 3.10% | 3.10% | 3.10% |
Lease Commitments - Operating_2
Lease Commitments - Operating Leases, Future Minimum Payment (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 (After September 30,) | $ 29 | |
2023 | 117 | |
2024 | 111 | |
2025 | 96 | |
2026 | 78 | |
After 2026 | 102 | |
Total lease payments (undiscounted) | 533 | |
Less: Interest | 40 | |
Present value of lease liabilities: | 493 | |
Lease liabilities - current | 104 | $ 105 |
Lease liabilities - noncurrent | $ 389 | $ 455 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 USD ($) lineOfBusiness segment | Sep. 30, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments (segment) | segment | 2 | |
Number of reportable segments | segment | 2 | |
2020 MA Strategic Reorganization Restructuring Program | ||
Segment Reporting Information [Line Items] | ||
Cost incurred to date | $ 19 | |
Employee Severance | 2020 MA Strategic Reorganization Restructuring Program | ||
Segment Reporting Information [Line Items] | ||
Cost incurred to date | $ 19 | |
Employee Severance | 2022-2023 Geolocation Restructuring Program | ||
Segment Reporting Information [Line Items] | ||
Cost incurred to date | $ 33 | |
MIS | ||
Segment Reporting Information [Line Items] | ||
Number of lines of businesses | lineOfBusiness | 5 | |
MIS | Employee Severance | 2022-2023 Geolocation Restructuring Program | ||
Segment Reporting Information [Line Items] | ||
Cost incurred to date | $ 15 | |
MA | ||
Segment Reporting Information [Line Items] | ||
Number of lines of businesses | lineOfBusiness | 3 | |
MA | 2020 MA Strategic Reorganization Restructuring Program | ||
Segment Reporting Information [Line Items] | ||
Cost incurred to date | $ 19 | |
MA | Employee Severance | 2022-2023 Geolocation Restructuring Program | ||
Segment Reporting Information [Line Items] | ||
Cost incurred to date | $ 18 |
Segment Information - Financial
Segment Information - Financial Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Revenue | $ 1,275 | $ 1,526 | $ 4,178 | $ 4,679 |
Operating, SG&A | 778 | 789 | 2,327 | 2,167 |
Adjusted Operating Income | 497 | 737 | 1,851 | 2,512 |
Depreciation and amortization | 83 | 61 | 242 | 180 |
Restructuring | 1 | 0 | 32 | 2 |
Operating income | 413 | 676 | 1,577 | 2,330 |
Eliminations | ||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Revenue | (45) | (44) | (134) | (130) |
Operating, SG&A | (45) | (44) | (134) | (130) |
Adjusted Operating Income | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Restructuring | 0 | 0 | 0 | 0 |
MIS | ||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Revenue | 590 | 925 | 2,123 | 2,941 |
MIS | Operating Segments | ||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Revenue | 633 | 967 | 2,252 | 3,065 |
Operating, SG&A | 344 | 387 | 1,038 | 1,079 |
Adjusted Operating Income | 289 | 580 | 1,214 | 1,986 |
Depreciation and amortization | 21 | 17 | 60 | 53 |
Restructuring | 0 | 0 | 15 | 0 |
MIS | Eliminations | ||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Revenue | 43 | 42 | 129 | 124 |
MA | ||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Revenue | 685 | 601 | 2,055 | 1,738 |
MA | Operating Segments | ||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Revenue | 687 | 603 | 2,060 | 1,744 |
Operating, SG&A | 479 | 446 | 1,423 | 1,218 |
Adjusted Operating Income | 208 | 157 | 637 | 526 |
Depreciation and amortization | 62 | 44 | 182 | 127 |
Restructuring | 1 | 0 | 17 | 2 |
MA | Eliminations | ||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Revenue | $ 2 | $ 2 | $ 5 | $ 6 |
Segment Information - Consolida
Segment Information - Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,275 | $ 1,526 | $ 4,178 | $ 4,679 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 668 | 841 | 2,214 | 2,557 |
Non-U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 607 | 685 | 1,964 | 2,122 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 393 | 443 | 1,271 | 1,402 |
Asia-Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 129 | 149 | 422 | 460 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 85 | $ 93 | $ 271 | $ 260 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | Oct. 24, 2022 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividend declared, per share (in USD per share) | $ 0.70 |