Cover Page
Cover Page - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 50 | ||
Entity Common Stock, Shares Outstanding (in shares) | 183.2 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement for use in connection with its annual meeting of stockholders scheduled to be held on April 18, 2023, are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001059556 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
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 $0.01 per share | ||
Trading Symbol | MCO | ||
Security Exchange Name | NYSE | ||
1.75% 2015 Senior Notes, due 2027 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.75% Senior Notes Due 2027 | ||
Trading Symbol | MCO 27 | ||
Security Exchange Name | NYSE | ||
0.950% 2019 Senior Notes, due 2030 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.950% Senior Notes Due 2030 | ||
Trading Symbol | MCO 30 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | New York, NY |
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 5,468 | $ 6,218 | $ 5,371 |
Expenses | |||
Operating | 1,613 | 1,637 | 1,475 |
Selling, general and administrative | 1,527 | 1,480 | 1,229 |
Depreciation and amortization | 331 | 257 | 220 |
Restructuring | 114 | 0 | 50 |
Loss pursuant to the divestiture of MAKS | 0 | 0 | 9 |
Total expenses | 3,585 | 3,374 | 2,983 |
Operating income | 1,883 | 2,844 | 2,388 |
Non-operating (expense) income, net | |||
Interest expense, net | (231) | (171) | (205) |
Other non-operating income, net | 38 | 82 | 46 |
Gain on extinguishment of debt | 70 | 0 | 0 |
Non-operating (expense) income, net | (123) | (89) | (159) |
Income before provision for income taxes | 1,760 | 2,755 | 2,229 |
Provision for income taxes | 386 | 541 | 452 |
Net income | 1,374 | 2,214 | 1,777 |
Less: Net (loss) income attributable to noncontrolling interests | 0 | 0 | (1) |
Net income attributable to Moody’s | $ 1,374 | $ 2,214 | $ 1,778 |
Earnings per share | |||
Basic (in USD per share) | $ 7.47 | $ 11.88 | $ 9.48 |
Diluted (in USD per share) | $ 7.44 | $ 11.78 | $ 9.39 |
Weighted average shares outstanding | |||
Basic (in shares) | 183.9 | 186.4 | 187.6 |
Diluted (in shares) | 184.7 | 187.9 | 189.3 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,374 | $ 2,214 | $ 1,777 |
Foreign Currency Adjustments: | |||
Foreign currency translation adjustment - Pre Tax | (439) | (303) | 361 |
Foreign currency translation adjustment - Tax | 2 | 11 | (13) |
Foreign currency translation adjustment - Net of Tax | (437) | (292) | 348 |
Foreign currency translation adjustments - reclassification of losses included in net income - Pre Tax | 20 | 0 | 0 |
Foreign currency translation adjustments - reclassification of losses included in net income - Tax | 0 | 0 | 0 |
Foreign currency translation adjustments - reclassification of losses included in net income - Net of Tax | 20 | 0 | 0 |
Net (losses) gains on net investment hedges - Pre Tax | 219 | 319 | (364) |
Net (losses) gains on net investment hedges - Tax | (55) | (77) | 91 |
Net (losses) gains on net investment hedges - Net of Tax | 164 | 242 | (273) |
Net investment hedges - reclassification of gains included in net income - Pre Tax | 0 | (2) | (1) |
Net investment hedges - reclassification of gains included in net income - Tax | 0 | 1 | 0 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | (1) | (1) |
Cash Flow Hedges: | |||
Net losses on cash flow hedges - Pre Tax | 0 | 0 | (68) |
Net losses on cash flow hedges - Tax | 0 | 0 | 17 |
Net losses on cash flow hedges - Net of Tax | 0 | 0 | (51) |
Reclassification of losses included in net income - Pre Tax | 2 | 2 | 3 |
Reclassification of losses included in net income - Tax | 0 | 0 | (1) |
Reclassification of losses included in net income - Net of Tax | 2 | 2 | 2 |
Pension and Other Retirement Benefits: | |||
Amortization of actuarial losses/prior service costs and settlement charge included in net income - Pre Tax | 3 | 19 | 8 |
Amortization of actuarial losses and prior service costs and settlement charge included in net income - Tax | (1) | (5) | (2) |
Amortization of actuarial losses and prior service costs and settlement charge included in net income - Net of Tax | 2 | 14 | 6 |
Net actuarial (losses) gains and prior service costs - Pre Tax | (1) | 73 | (42) |
Net actuarial (losses) gains and prior service costs - Tax | 1 | (18) | 10 |
Net actuarial (losses) gains and prior service costs - Net of Tax | 0 | 55 | (32) |
Total other comprehensive (loss) income - Pre Tax | (196) | 108 | (103) |
Total other comprehensive (loss)income - Tax | (53) | (88) | 102 |
Total Other Comprehensive Income (Loss) | (249) | 20 | (1) |
Comprehensive Income | 1,125 | 2,234 | 1,776 |
Less: comprehensive loss attributable to noncontrolling interests | (16) | (2) | (8) |
Comprehensive Income Attributable to Moody’s | $ 1,141 | $ 2,236 | $ 1,784 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,769 | $ 1,811 |
Short-term investments | 90 | 91 |
Accounts receivable, net of allowances for credit losses of $40 in 2022 and $32 in 2021 | 1,652 | 1,720 |
Other current assets | 583 | 389 |
Total current assets | 4,094 | 4,011 |
Property and equipment, net of accumulated depreciation of $1,123 in 2022 and $1,010 in 2021 | 502 | 347 |
Operating lease right-of-use assets | 346 | 438 |
Goodwill | 5,839 | 5,999 |
Intangible assets, net | 2,210 | 2,467 |
Deferred tax assets, net | 266 | 384 |
Other assets | 1,092 | 1,034 |
Total assets | 14,349 | 14,680 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,011 | 1,142 |
Current portion of operating lease liabilities | 106 | 105 |
Deferred revenue | 1,258 | 1,249 |
Total current liabilities | 2,375 | 2,496 |
Non-current portion of deferred revenue | 75 | 86 |
Total long-term debt | 7,389 | 7,413 |
Deferred tax liabilities, net | 457 | 488 |
Uncertain tax positions | 322 | 388 |
Operating lease liabilities | 368 | 455 |
Other liabilities | 674 | 438 |
Total liabilities | 11,660 | 11,764 |
Contingencies | ||
Shareholders’ equity: | ||
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Capital surplus | 1,054 | 885 |
Retained earnings | 13,618 | 12,762 |
Treasury stock, at cost; 159,702,362 and 157,262,484 shares of common stock at December 31, 2022 and December 31, 2021, respectively | (11,513) | (10,513) |
Accumulated other comprehensive loss | (643) | (410) |
Total Moody’s shareholders’ equity | 2,519 | 2,727 |
Noncontrolling interests | 170 | 189 |
Total shareholders’ equity | 2,689 | 2,916 |
Total liabilities and shareholders’ equity | 14,349 | 14,680 |
Series Common Stock | ||
Shareholders’ equity: | ||
Common stock | 0 | 0 |
Non-Series Common Stock | ||
Shareholders’ equity: | ||
Common stock | $ 3 | $ 3 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts receivable, allowances | $ 40 | $ 32 |
Property and equipment, accumulated depreciation | $ 1,123 | $ 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 |
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 |
Treasury stock, shares (in shares) | 159,702,362 | 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 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 1,374 | $ 2,214 | $ 1,777 |
Reconciliation of net income to net cash provided by operating activities: | |||
Depreciation and amortization | 331 | 257 | 220 |
Stock-based compensation | 169 | 175 | 154 |
Deferred income taxes | 48 | (218) | (44) |
ROU asset impairment & other non-cash restructuring/impairment charges | 29 | 0 | 36 |
FX translation losses reclassified to net income | 20 | 0 | 0 |
Loss pursuant to the divestiture of MAKS | 0 | 0 | 9 |
(Gain)/loss on extinguishment/early redemption of debt | 70 | ||
(Gain)/loss on extinguishment/early redemption of debt | 13 | 24 | |
Non-cash gain related to minority interest in BitSight | 0 | (36) | 0 |
Settlement of treasury rate lock | 0 | 0 | (68) |
Changes in assets and liabilities: | |||
Accounts receivable | 34 | (257) | 31 |
Other current assets | (223) | (12) | (38) |
Other assets | (48) | (26) | (49) |
Lease obligations | (19) | (11) | (10) |
Accounts payable and accrued liabilities | (161) | 80 | 247 |
Deferred revenue | 20 | 65 | (29) |
Unrecognized tax positions and other non-current tax liabilities | (33) | (184) | (12) |
Other liabilities | 3 | (55) | (102) |
Net cash provided by operating activities | 1,474 | 2,005 | 2,146 |
Cash flows from investing activities | |||
Capital additions | (283) | (139) | (103) |
Purchases of investments | (320) | (437) | (181) |
Sales and maturities of investments | 218 | 147 | 104 |
Cash paid for acquisitions, net of cash acquired | (97) | (2,179) | (897) |
Receipts from settlements of net investment hedges | 220 | 37 | 2 |
Payments for settlements of net investment hedges | 0 | (48) | (2) |
Net cash used in investing activities | (262) | (2,619) | (1,077) |
Cash flows from financing activities | |||
Issuance of notes | 988 | 1,672 | 1,491 |
Repayment of notes | (626) | (500) | (800) |
Issuance of commercial paper | 0 | 0 | 789 |
Repayment of commercial paper | 0 | 0 | (792) |
Proceeds from stock-based compensation plans | 26 | 38 | 51 |
Repurchase of shares related to stock-based compensation | (87) | (83) | (104) |
Treasury shares | (983) | (750) | (503) |
Dividends | (515) | (463) | (420) |
Dividends to noncontrolling interests | (1) | (5) | (1) |
Payment for noncontrolling interest | 0 | 0 | (23) |
Debt issuance costs, extinguishment costs and related fees | (10) | (31) | (39) |
Net cash used in financing activities | (1,208) | (122) | (351) |
Effect of exchange rate changes on cash and cash equivalents | (46) | (50) | 47 |
(Decrease) increase in cash and cash equivalents | (42) | (786) | 765 |
Cash and cash equivalents, beginning of period | 1,811 | 2,597 | 1,832 |
Cash and cash equivalents, end of period | $ 1,769 | $ 1,811 | $ 2,597 |
Impairment, long-lived asset, held-for-use, statement of income or comprehensive income | Restructuring Charges | Restructuring Charges | Restructuring Charges |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Total Moody’s Shareholders’ Equity | Total Moody’s Shareholders’ Equity Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Capital Surplus | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjustment | Non- Controlling Interests | |
Common stock, shares, issued, beginning balance (in shares) at Dec. 31, 2019 | 342,900,000 | ||||||||||||
Treasury stock, common, shares, beginning balance (in shares) at Dec. 31, 2019 | 155,200,000 | ||||||||||||
Beginning Balance at Dec. 31, 2019 | $ 831 | $ (2) | $ 612 | $ (2) | $ 3 | $ 642 | $ 9,656 | $ (2) | $ (9,250) | $ (439) | $ 0 | $ 219 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 1,778 | 1,778 | 1,778 | 0 | |||||||||
Net income | 1,777 | ||||||||||||
Dividends | (424) | (421) | (421) | (3) | |||||||||
Stock-based compensation | 154 | 154 | 154 | ||||||||||
Shares issued for stock-based compensation plans at average cost, net | (53) | (53) | (58) | $ 5 | |||||||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 1,400,000 | ||||||||||||
Purchase of noncontrolling interest | (17) | (3) | (3) | (14) | |||||||||
Treasury shares repurchased | (503) | (503) | 0 | $ (503) | |||||||||
Treasury shares repurchased (in shares) | (2,000,000) | ||||||||||||
Currency translation adjustment, net of net investment hedge activity | 74 | 82 | 82 | (8) | |||||||||
Net actuarial gains (losses) and prior service cost | (32) | (32) | (32) | ||||||||||
Amortization of prior service costs/ actuarial losses and settlement charge | 6 | 6 | 6 | ||||||||||
Amortization of losses on cash flow hedges | 2 | ||||||||||||
Net realized and unrealized gain (loss) on cash flow hedges | (49) | (49) | (49) | ||||||||||
Common stock, shares, issued, ending balance (in shares) at Dec. 31, 2020 | 342,900,000 | ||||||||||||
Treasury stock, common, shares, ending balance (in shares) at Dec. 31, 2020 | 155,800,000 | ||||||||||||
Ending Balance at Dec. 31, 2020 | $ 1,763 | 1,569 | $ 3 | 735 | 11,011 | $ (9,748) | (432) | 194 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Accounting standards update | Accounting Standards Update 2016-13 [Member] | ||||||||||||
Net income | $ 2,214 | 2,214 | 2,214 | 0 | |||||||||
Dividends | (466) | (463) | (463) | (3) | |||||||||
Stock-based compensation | 175 | 175 | 175 | ||||||||||
Shares issued for stock-based compensation plans at average cost, net | (40) | (40) | (25) | $ (15) | |||||||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 700,000 | ||||||||||||
Treasury shares repurchased | (750) | (750) | 0 | $ (750) | |||||||||
Treasury shares repurchased (in shares) | (2,200,000) | ||||||||||||
Currency translation adjustment, net of net investment hedge activity | (51) | (49) | (49) | (2) | |||||||||
Net actuarial gains (losses) and prior service cost | 55 | 55 | 55 | ||||||||||
Amortization of prior service costs/ actuarial losses and settlement charge | 14 | 14 | 14 | ||||||||||
Amortization of losses on cash flow hedges | $ 2 | 2 | 2 | ||||||||||
Common stock, shares, issued, ending balance (in shares) at Dec. 31, 2021 | 342,902,272 | 342,900,000 | |||||||||||
Treasury stock, common, shares, ending balance (in shares) at Dec. 31, 2021 | 157,300,000 | ||||||||||||
Ending 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 | 1,374 | 1,374 | 1,374 | 0 | |||||||||
Dividends | (521) | (518) | (518) | (3) | |||||||||
Stock-based compensation | 169 | 169 | 169 | ||||||||||
Shares issued for stock-based compensation plans at average cost, net | (61) | (61) | (32) | $ (29) | |||||||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 600,000 | ||||||||||||
Shares issued as consideration to acquire kompany (in shares) | [1] | 100,000 | |||||||||||
Shares issued as consideration to acquire kompany | [1] | 44 | 44 | 35 | $ 9 | ||||||||
Treasury shares repurchased | (983) | (983) | (3) | $ (980) | |||||||||
Treasury shares repurchased (in shares) | (3,100,000) | ||||||||||||
Currency translation adjustment, net of net investment hedge activity | (253) | (237) | (237) | (16) | |||||||||
Net actuarial gains (losses) and prior service cost | 0 | ||||||||||||
Amortization of prior service costs/ actuarial losses and settlement charge | 2 | 2 | 2 | ||||||||||
Amortization of losses on cash flow hedges | $ 2 | 2 | 2 | ||||||||||
Common stock, shares, issued, ending balance (in shares) at Dec. 31, 2022 | 342,902,272 | 342,900,000 | |||||||||||
Treasury stock, common, shares, ending balance (in shares) at Dec. 31, 2022 | 159,700,000 | ||||||||||||
Ending Balance at Dec. 31, 2022 | $ 2,689 | $ 2,519 | $ 3 | $ 1,054 | $ 13,618 | $ (11,513) | $ (643) | $ 170 | |||||
[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 (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share attributable to Moody's common shareholders (in USD per share) | $ 2.80 | $ 2.48 | $ 2.24 |
Currency translation adjustment, tax | $ 53 | $ 65 | $ (78) |
Net actuarial gains (losses) and prior service cost, tax | (1) | 18 | (10) |
Amortization of actuarial losses and prior service costs included in net income, tax | $ 1 | $ 5 | 2 |
Net unrealized and unrealized gain (loss) on cash flow hedges, tax | $ (16) |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Moody’s is a global integrated risk assessment firm that empowers organizations and investors to make better decisions. Moody’s reports in two reportable segments: MIS and MA. MIS publishes credit ratings and provides assessment services on a wide range of debt obligations, programs and facilities, and the entities that issue such obligations in markets worldwide, including various corporate, financial institution and governmental obligations, and structured finance securities. MA is a global provider of: i) data and information; ii) research and insights; and iii) decision solutions, which help companies make better and faster decisions. MA leverages its industry expertise across multiple risks such as credit, market, financial crime, supply chain, catastrophe and climate to deliver integrated risk assessment solutions that enable business leaders to identify, measure and manage the implications of interrelated risks and opportunities. Certain reclassifications have been made to prior period amounts to conform to the current presentation. Adoption of New Accounting Standards in 2022 In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope,” which clarified the scope and application of the original guidance, ASU No. 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU No. 2020-04"), issued in March 2020 (codified into ASC Topic 848 "Reference Rate Reform"). ASU No. 2020-04 provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform—Deferral of the Sunset Date of Topic 848," which deferred the sunset date of Topic 848 to December 31, 2024. These ASU's were effective upon issuance, and the Company may elect to apply the amendments prospectively through December 31, 2024 as the transition from LIBOR is completed. As of December 31, 2022, the Company has interest rate swaps designated as fair value hedges and cross currency swaps designated as net investment hedges referencing three-month or six-month USD LIBOR with aggregate notional amounts as disclosed in Note 7. For derivative instruments that will be outstanding at the transition date, the Company intends to modify the contractual terms of the instruments to replace LIBOR with another reference rate, such as SOFR. Pursuant to the modification of the contractual terms of these instruments, the Company intends to utilize the various optional expedients set forth in ASC Topic 848 relating to derivative instruments used in hedging relationships. 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. 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 3. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation The consolidated financial statements include those of Moody’s Corporation and its majority- and wholly-owned subsidiaries. The effects of all intercompany transactions have been eliminated. Investments in companies for which the Company has significant influence over operating and financial policies but not a controlling interest are accounted for on an equity basis whereby the Company records its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net and any dividends received reduce the carrying amount of the investment. Equity investments without a readily determinable fair value for which the Company does not have significant influence are accounted for under the ASC 321 measurement alternative; these investments are recorded at initial cost, less impairment, adjusted upward or downward for any observable price changes in similar investments. The Company applies the guidelines set forth in Topic 810 of the ASC in assessing its interests in variable interest entities to decide whether to consolidate an entity. The Company has reviewed the potential variable interest entities and determined that there are no consolidation requirements under Topic 810 of the ASC. The Company consolidates its ICRA subsidiaries on a three month lag. Cash and Cash Equivalents Cash equivalents principally consist of investments in money market deposit accounts as well as certificates of deposit with maturities of three months or less when purchased. Short-term Investments Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next 12 months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives. Expenditures for maintenance and repairs that do not extend the economic useful life of the related assets are charged to expense as incurred. Computer Software Developed or Obtained for Internal Use The Company capitalizes costs related to software developed or obtained for internal use. These assets, included in property and equipment in the consolidated balance sheets, relate to the Company’s financial, website and other systems. Such costs generally consist of direct costs for third-party license fees, professional services provided by third parties and employee compensation, in each case incurred either during the application development stage or in connection with upgrades and enhancements that increase functionality. Such costs are depreciated over their estimated useful lives on a straight-line basis. Costs incurred during the preliminary project stage of development as well as maintenance costs are expensed as incurred. The Company also capitalizes implementation costs incurred in cloud computing arrangements (e.g., hosted arrangements) and depreciates the costs over the non-cancellable term of the cloud computing arrangements plus any option renewal periods that are reasonably certain to be exercised or for which the exercise is controlled by the service provider. The Company classifies the amortization of capitalized implementation costs in the same line item in the statement of operations as the fees associated with the hosting service (i.e., operating and SG&A expense) and classifies the related payments in the statement of cash flows in the same manner as payments made for fees associated with the hosting service (i.e. cash flows from operating activities). In addition, the capitalization of implementation costs is reflected in the balance sheet consistent with the location of prepayment of fees for the hosting element (i.e., within other current assets or other assets). Goodwill and Other Acquired Intangible Assets Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment (i.e., MIS and MA), or one level below an operating segment (i.e., a component of an operating segment), annually as of July 31 or more frequently if impairment indicators arise in accordance with ASC Topic 350. The Company evaluates the recoverability of goodwill using a two-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made based on the qualitative factors that an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be quantitatively determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company will record a goodwill impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. The Company evaluates its reporting units on an annual basis, or more frequently if there are changes in the reporting structure of the Company due to acquisitions, reporting unit realignments or if there are indicators of potential impairment. For the reporting units where the Company is consistently able to conclude that no impairment exists using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years. Goodwill is assigned to a reporting unit at the date when an acquisition is integrated into one of the established reporting units, and is based on which reporting unit is expected to benefit from the synergies of the acquisition. For purposes of assessing the recoverability of goodwill, the Company has four reporting units: two within the Company’s ratings business (one for the ICRA business and one that encompasses all of Moody’s other ratings operations) and two reporting units within MA consisting of businesses that offer: i) data and data-driven analytical solutions; and ii) risk-management software, workflow and CRE solutions. Impairment of long-lived assets and definite-lived intangible assets Long-lived assets (including ROU Assets) and amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Under the first step of the recoverability assessment, the Company compares the estimated undiscounted future cash flows attributable to the asset or asset group to their carrying value. If the undiscounted future cash flows are greater than the carrying value, no further assessment is required. If the undiscounted future cash flows are less than the carrying value, Moody's proceeds with step two of the assessment. Under step two of this assessment, Moody's is required to determine the fair value of the asset or asset group (reduced by the estimated cost to sell the asset for assets or disposal groups classified as held-for-sale) and recognize an impairment loss if the carrying amount exceeds its fair value. Stock-Based Compensation The Company records compensation expense over the requisite service period for all share-based payment award transactions granted to employees based on the fair value of the equity instrument at the time of grant. This includes shares issued under stock option and restricted stock plans. Derivative Instruments and Hedging Activities Based on the Company’s risk management policy, the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values on a gross basis. The changes in the value of derivatives that qualify as fair value hedges are recorded in the same income statement line item in earnings in which the corresponding adjustment to the carrying value of the hedged item is presented. The entire change in the fair value of derivatives that qualify as cash flow hedges is recorded to OCI and such amounts are reclassified from AOCI(L) to the same income statement line in earnings in the same period or periods during which the hedged transaction affects income. The Company assesses effectiveness for net investment hedges using the spot-method. The entire change in the fair value of derivatives that qualify as net investment hedges is initially recorded to OCI. Those changes in fair value attributable to components included in the assessment of hedge effectiveness in a net investment hedge are recorded in the currency translation adjustment component of OCI and remain in AOCI(L) until the period in which the hedged item affects earnings. Those changes in fair value attributable to components excluded from the assessment of hedge effectiveness in a net investment hedge are recorded to OCI and amortized to earnings using a systematic and rational method over the duration of the hedge. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur. Revenue Recognition and Costs to Obtain or Fulfill a Contract with a Customer Revenue recognition: Revenue is recognized when control of promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. When contracts with customers contain multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to each distinct performance obligation on a relative SSP basis. The Company determines the SSP by using the price charged for a deliverable when sold separately or uses management’s best estimate of SSP for goods or services not sold separately using estimation techniques that maximize observable data points, including: internal factors relevant to its pricing practices such as costs and margin objectives; standalone sales prices of similar products; pricing policies; percentage of the fee charged for a primary product or service relative to a related product or service; and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trends. Sales, usage-based, value added and other taxes are excluded from revenues. MIS Revenue In the MIS segment, revenue arrangements with multiple elements are generally comprised of two distinct performance obligations, a rating and the related monitoring service. Revenue attributed to ratings of issued securities is generally recognized when the rating is delivered to the issuer. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of certain structured finance products, primarily CMBS, issuers can elect to pay all of the annual monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities. MIS arrangements generally have standard contractual terms for which the stated payments are due at conclusion of the ratings process for ratings and either upfront or in arrears for monitoring services; and are signed by customers either on a per issue basis or at the beginning of the relationship with the customer. In situations when customer fees for an arrangement may be variable, the Company estimates the variable consideration at inception using the expected value method based on analysis of similar contracts in the same line of business, which is constrained based on the Company’s assessment of the realization of the adjustment amount. The Company allocates the transaction price within arrangements that include multiple performance obligations based upon the relative SSP of each service. The SSP for both rating and monitoring services is generally based upon observable selling prices where the rating or monitoring service is sold separately to similar customers. MA Revenue In the MA segment, products and services offered by the Company include hosted research and data subscriptions, installed and hosted software subscriptions, perpetual installed software licenses and related maintenance, or PCS, and professional services. Subscription and PCS contracts are generally invoiced in advance of the contractual coverage period, which is principally one year, but can range from 3-5 years. Perpetual software licenses are generally invoiced upon delivery and professional services are invoiced as those services are provided. Payment terms and conditions vary by contract type, but primarily include a requirement of payment within 30 to 60 days. Revenue from research, data and other hosted subscriptions is recognized ratably over the related subscription period as MA's performance obligation to provide access to these products is progressively fulfilled over the stated term of the contract. A large portion of these services are invoiced in the months of November, December and January. Revenue from the sale of a software license, when considered distinct from the related software implementation services, is generally recognized at the time the product master or first copy is delivered or transferred to the customer. PCS is generally recognized ratably over the contractual period commencing when the software license is fully delivered. Revenue from installed software subscriptions, which includes PCS, is bifurcated into a software license performance obligation and a PCS performance obligation, which follow the patterns of recognition described above. For implementation services and other service projects for which fees are fixed, the Company determined progress towards completion is most accurately measured on a percentage-of-completion basis (input method) as this approach utilizes the most directly observable data points and is therefore used to recognize the related revenue. For implementation services where price varies based on time expended, a time-based measure of progress towards completion of the performance obligation is utilized. Revenue from professional services rendered is generally recognized over time as the services are performed. Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where an arrangement contains multiple performance obligations, the Company accounts for the individual performance obligations separately if they are considered distinct. Revenue is generally allocated to all performance obligations based upon the relative SSP at contract inception. For certain performance obligations, judgment is required to determine the SSP. Revenue is recognized for each performance obligation based upon the conditions for revenue recognition noted above. In the MA segment, customers usually pay a fixed fee for the products and services based on signed contracts. However, accounting for variable consideration is applied mainly for: i) estimates for cancellation rights and price concessions and ii) T&M based services. The Company estimates the variable consideration associated with cancellation rights and price concessions based on the expected amount to be provided to customers and reduces the amount of revenue to be recognized. Costs to Obtain or Fulfill a Contract with a Customer: Costs to obtain a contract with a customer Costs incurred to obtain customer contracts, such as sales commissions, are deferred and recorded within other current assets and other assets when such costs are determined to be incremental to obtaining a contract, would not have been incurred otherwise and the Company expects to recover those costs. These costs are amortized to expense on a systematic basis consistent with the transfer of the products or services to the customer. Depending on the line of business to which the contract relates, this may be based upon the average economic life of the products sold or average period for which services are provided, inclusive of anticipated contract renewals. Determining the estimated economic life of the products sold requires judgment with respect to anticipated future technological changes. Costs to obtain customer contracts are only incurred in the MA segment. Cost to fulfill a contract with a customer Costs incurred to fulfill customer contracts, are deferred and recorded within other current assets and other assets when such costs relate directly to a contract, generate or enhance resources of the Company that will be used in satisfying performance obligations in the future and the Company expects to recover those costs. The Company capitalizes work-in-process costs for in-progress MIS ratings, which is recognized consistent with the rendering of the related services to the customers, as ratings are issued. In addition, within the MA segment, the Company capitalizes royalty costs related to third-party information data providers associated with hosted company information and business intelligence products. These costs are amortized to expense consistent with the recognition pattern of the related revenue over time. Accounts Receivable Allowances In order to determine an estimate of expected credit losses, receivables are segmented based on similar risk characteristics including historical credit loss patterns and industry or class of customers to calculate reserve rates. The Company uses an aging method for developing its allowance for credit losses by which receivable balances are stratified based on aging category. A reserve rate is calculated for each aging category which is generally based on historical information, and is adjusted, when necessary, for current conditions (e.g., macroeconomic or industry related) and reasonable and supportable forecasts about the future. The Company also considers customer specific information (e.g., bankruptcy or financial difficulty) when estimating its expected credit losses, as well as the economic environment of the customers, both from an industry and geographic perspective, in evaluating the need for allowances. Expected credit losses are reflected as additions to the accounts receivable allowance. Actual uncollectible account write-offs are recorded against the allowance. Leases The Company has operating leases, which substantially all 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. The Company determines if an arrangement meets the definition of a lease at contract inception. The Company recognizes in its consolidated balance sheet a lease liability and an ROU Asset for all leases with a lease term greater than 12 months. In determining the length of the lease term, the Company utilizes judgment in assessing the likelihood of whether it is reasonably certain that it will exercise an option to extend or early-terminate a lease, if such options are provided in the lease agreement. ROU Assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU Assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As substantially all of the Company’s leases do not provide an implicit interest rate, the Company uses its estimated secured incremental borrowing rates at the lease commencement date in determining the present value of lease payments. These secured incremental borrowing rates are attributable to the currency in which the lease is denominated. At commencement, the Company’s initial measurement of the ROU Asset is calculated as the present value of the remaining lease payments (i.e., lease liability), with additive adjustments reflecting: initial direct costs (e.g., broker commissions) and prepaid lease payments (if any); and reduced by any lease incentives provided by the lessor if: (i) received before lease commencement or (ii) receipt of the lease incentive is contingent upon future events for which the occurrence is both probable and within the Company’s control. Lease expense for minimum operating lease payments is recognized on a straight-line basis over the lease term. This straight-line lease expense represents a single lease cost which is comprised of both an interest accretion component relating to the lease liability and amortization of the ROU Assets. The Company records this single lease cost in operating and SG&A expenses. However, in situations where an operating lease ROU Asset has been impaired, the subsequent amortization of the ROU Asset is then recorded on a straight-line basis over the remaining lease term and is combined with accretion expense on the lease liability to result in single operating lease cost (which subsequent to impairment will no longer follow a straight-line recognition pattern). The Company has lease agreements which include lease and non-lease components. For the Company’s office space leases, the lease components (e.g., fixed rent payments) and non-lease components (e.g., fixed common-area maintenance costs) are combined and accounted for as a single lease component. Variable lease payments (e.g. variable common-area-maintenance costs) are only included in the initial measurement of the lease liability to the extent those payments depend on an index or a rate. Variable lease payments not included in the lease liability are recognized in net income in the period in which the obligation for those payments is incurred. Contingencies Moody’s is involved in legal and tax proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, the Company records liabilities in the consolidated financial statements when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In instances when a loss is reasonably possible but uncertainties exist related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if material. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. Moody’s also discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. In view of the inherent difficulty of assessing the potential outcome of legal proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation and similar matters and contingencies, particularly when the claimants seek large or indeterminate damages or assert novel legal theories or the matters involve a large number of parties, the Company often cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also may be unable to predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition and to accrue for and disclose such matters as and when required. However, because such matters are inherently unpredictable and unfavorable developments or resolutions can occur, the ultimate outcome of such matters, including the amount of any loss, may differ from those estimates. Operating Expenses Operating expenses include costs associated with the development and production of the Company’s products and services and their delivery to customers. These expenses principally include employee compensation and benefits and travel costs that are incurred in connection with these activities. Operating expenses are charged to income as incurred. Selling, General and Administrative Expenses SG&A expenses include such items as compensation and benefits for corporate officers and staff and compensation and other expenses related to sales. They also include items such as office rent, business insurance and professional fees. SG&A expenses are charged to income as incurred. Foreign Currency Translation For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated into U.S. dollars using end of year exchange rates, and revenue and expenses are translated using average exchange rates for the year. For these foreign operations, currency translation adjustments are recorded to other comprehensive income. Comprehensive Income Comprehensive income represents the change in net assets of a business enterprise during a period due to transactions and other events and circumstances from non-owner sources including: foreign currency translation impacts; net actuarial gains and losses and net prior service costs related to pension and other retirement plans; and gains and losses on derivative instruments designated as net investment hedges or cash flow hedges. Comprehensive income items, including cumulative translation adjustments of entities that are less-than-wholly-owned subsidiaries, will be reclassified to noncontrolling interests and thereby, adjusting accumulated other comprehensive income proportionately in accordance with the percentage of ownership interest of the non-controlling shareholder. Income Taxes The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes and deferred income taxes reflect the effect of temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes. The Company classifies interest related to unrecognized tax benefits as a component of interest expense in its consolidated statements of operations. Penalties are recognized in other non-operating expenses. For UTPs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. On December 22, 2017, the Tax Act was signed into law, resulting in all previously undistributed foreign earnings being subject to U.S. tax. The Company has provided deferred taxes for those entities whose earnings are not considered indefinitely reinvested. Fair Value of Financial Instruments The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, and certain short-term investments consisting primarily of certificates of deposit and money market deposits, all of which are short-term in nature and, accordingly, approximate fair value. The Company also invests in mutual funds, which are accounted for as equity securities with readily determinable fair values under ASC Topic 321. The Company measures these investments at fair value with both realized gains and losses and unrealized holding gains and losses for these investments included in net income. Also, the Company uses derivative instruments to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value in the Company’s consolidated balance sheets. Fair value is defined by the ASC 820 as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset. The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows: Level 1: quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement; Level 2: inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk principally consist of cash and cash equivalents, short-term investments, trade receivables and derivatives. For cash and cash equivalents, short-term investments and derivatives, the Company manages its credit exposure by limiting the amount of counterparty risk with any particular financial institution; limits are assigned to each counterparty based on perceived quality of credit, and are monitored daily. Cash equivalents are held among various money market deposit accounts and certificates of deposits as of December 31, 2022 and 2021. Short-term investments primarily consist of certificates of deposit as of December 31, 2022 and 2021. Derivatives primarily consist of foreign exchange forwards or swap contracts (interest rate swaps and cross-currency swaps) as of December 31, 2022 and 2021. For trade receivables, no customer accounted for 10% or more of accounts receivable at December 31, 2022 or 2021. Earnings per Share of Common Stock Basic shares outstanding is calculated based on the weighted average number of shares of common stock outstanding during the reporting period. Diluted shares outstanding is calculated giving effect to |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Revenue by Category The following table presents the Company’s revenues disaggregated by LOB: Year Ended December 31, 2022 2021 2020 MIS: Corporate finance (CFG) Investment-grade $ 294 $ 439 $ 636 High-yield 108 411 352 Bank loans 275 606 287 Other accounts (CFG) (1) 592 631 582 Total CFG 1,269 2,087 1,857 Structured finance (SFG) Asset-backed securities 116 118 98 RMBS 106 123 96 CMBS 98 102 61 Structured credit 140 215 105 Other accounts (SFG) 2 2 2 Total SFG 462 560 362 Financial institutions (FIG) Banking 337 411 355 Insurance 113 145 137 Managed investments 28 36 28 Other accounts (FIG) 13 10 10 Total FIG 491 602 530 Public, project and infrastructure finance (PPIF) Public finance / sovereign 197 244 250 Project and infrastructure 234 277 246 Total PPIF 431 521 496 Total ratings revenue 2,653 3,770 3,245 MIS Other 46 42 47 Total external revenue 2,699 3,812 3,292 Intersegment royalty 174 165 148 Total MIS 2,873 3,977 3,440 MA: Decision Solutions 1,324 1,011 835 Research and Insights 733 697 650 Data and Information 712 698 594 Total external revenue 2,769 2,406 2,079 Intersegment revenue 8 7 7 Total MA 2,777 2,413 2,086 Eliminations (182) (172) (155) Total MCO $ 5,468 $ 6,218 $ 5,371 (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: Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 U.S. Non-U.S. Total U.S. Non-U.S. Total U.S. Non-U.S. Total MIS: Corporate finance $ 832 $ 437 $ 1,269 $ 1,384 $ 703 $ 2,087 $ 1,291 $ 566 $ 1,857 Structured finance 308 154 462 364 196 560 214 148 362 Financial institutions 223 268 491 289 313 602 250 280 530 Public, project and infrastructure finance 266 165 431 304 217 521 311 185 496 Total ratings revenue 1,629 1,024 2,653 2,341 1,429 3,770 2,066 1,179 3,245 MIS Other 5 41 46 3 39 42 2 45 47 Total MIS 1,634 1,065 2,699 2,344 1,468 3,812 2,068 1,224 3,292 MA: Decision Solutions 584 740 1,324 436 575 1,011 340 495 835 Research and Insights 405 328 733 377 320 697 363 287 650 Data and Information 250 462 712 226 472 698 184 410 594 Total MA 1,239 1,530 2,769 1,039 1,367 2,406 887 1,192 2,079 Total MCO $ 2,873 $ 2,595 $ 5,468 $ 3,383 $ 2,835 $ 6,218 $ 2,955 $ 2,416 $ 5,371 The following table presents the Company's reportable segment revenues disaggregated by segment and geographic region: Year Ended December 31, 2022 2021 2020 MIS: U.S. $ 1,634 $ 2,344 $ 2,068 Non-U.S.: EMEA 648 930 727 Asia-Pacific 271 357 345 Americas 146 181 152 Total Non-U.S. 1,065 1,468 1,224 Total MIS 2,699 3,812 3,292 MA: U.S. 1,239 1,039 887 Non-U.S.: EMEA 1,034 955 818 Asia-Pacific 285 246 226 Americas 211 166 148 Total Non-U.S. 1,530 1,367 1,192 Total MA 2,769 2,406 2,079 Total MCO $ 5,468 $ 6,218 $ 5,371 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. Year Ended December 31, 2022 2021 2020 Transaction Recurring Total Transaction Recurring Total Transaction Recurring Total Corporate Finance $ 772 $ 497 $ 1,269 $ 1,600 $ 487 $ 2,087 $ 1,401 $ 456 $ 1,857 61 % 39 % 100 % 77 % 23 % 100 % 75 % 25 % 100 % Structured Finance $ 262 $ 200 $ 462 $ 362 $ 198 $ 560 $ 175 $ 187 $ 362 57 % 43 % 100 % 65 % 35 % 100 % 48 % 52 % 100 % Financial Institutions $ 211 $ 280 $ 491 $ 320 $ 282 $ 602 $ 265 $ 265 $ 530 43 % 57 % 100 % 53 % 47 % 100 % 50 % 50 % 100 % Public, Project and Infrastructure Finance $ 263 $ 168 $ 431 $ 354 $ 167 $ 521 $ 337 $ 159 $ 496 61 % 39 % 100 % 68 % 32 % 100 % 68 % 32 % 100 % MIS Other $ 4 $ 42 $ 46 $ 4 $ 38 $ 42 $ 4 $ 43 $ 47 9 % 91 % 100 % 10 % 90 % 100 % 9 % 91 % 100 % Total MIS $ 1,512 $ 1,187 $ 2,699 $ 2,640 $ 1,172 $ 3,812 $ 2,182 $ 1,110 $ 3,292 56 % 44 % 100 % 69 % 31 % 100 % 66 % 34 % 100 % Decision Solutions $ 164 $ 1,160 $ 1,324 $ 158 $ 853 $ 1,011 $ 185 $ 650 $ 835 12 % 88 % 100 % 16 % 84 % 100 % 22 % 78 % 100 % Research and Insights $ 6 $ 727 $ 733 $ 8 $ 689 $ 697 $ 8 $ 642 $ 650 1 % 99 % 100 % 1 % 99 % 100 % 1 % 99 % 100 % Data and Information $ — $ 712 $ 712 $ 4 $ 694 $ 698 $ 4 $ 590 $ 594 — % 100 % 100 % 1 % 99 % 100 % 1 % 99 % 100 % Total MA $ 170 $ 2,599 $ 2,769 $ 170 $ 2,236 $ 2,406 $ 197 $ 1,882 $ 2,079 6 % 94 % 100 % 7 % 93 % 100 % 9 % 91 % 100 % Total Moody’s Corporation $ 1,682 $ 3,786 $ 5,468 $ 2,810 $ 3,408 $ 6,218 $ 2,379 $ 2,992 $ 5,371 31 % 69 % 100 % 45 % 55 % 100 % 44 % 56 % 100 % The following table presents the timing of revenue recognition: Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 MIS MA Total MIS MA Total MIS MA Total Revenue recognized at a point in time $ 1,512 $ 97 $ 1,609 $ 2,640 $ 101 $ 2,741 $ 2,182 $ 121 $ 2,303 Revenue recognized over time 1,187 2,672 3,859 1,172 2,305 3,477 1,110 1,958 3,068 Total $ 2,699 $ 2,769 $ 5,468 $ 3,812 $ 2,406 $ 6,218 $ 3,292 $ 2,079 $ 5,371 Unbilled Receivables, Deferred Revenue and Remaining Performance Obligations Unbilled receivables At December 31, 2022 and December 31, 2021, accounts receivable included approximately $385 million and $386 million, respectively, of unbilled receivables related to the MIS segment. Certain MIS arrangements contain contractual terms whereby the customers are billed in arrears for annual monitoring services and rating fees, 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. Accordingly, at December 31, 2022 and December 31, 2021, accounts receivable included approximately $148 million and $152 million, respectively, of unbilled receivables related to the MA segment. Deferred revenue The Company recognizes deferred revenue when a contract requires a customer to pay consideration to the Company in advance of when revenue 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 year ended December 31, 2022 are as follows: Year Ended December 31, 2022 MIS MA Total Balance at December 31, 2021 $ 296 $ 1,039 $ 1,335 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (210) (996) (1,206) Increases due to amounts billable excluding amounts recognized as revenue during the period 202 1,018 1,220 Increases due to acquisitions during the period — 1 1 Effect of exchange rate changes (10) (7) (17) Total changes in deferred revenue (18) 16 (2) Balance at December 31, 2022 $ 278 $ 1,055 $ 1,333 Deferred revenue - current $ 205 $ 1,053 $ 1,258 Deferred revenue - noncurrent $ 73 $ 2 $ 75 Significant changes in the deferred revenue balances during the year ended December 31, 2021 are as follows: Year Ended December 31, 2021 MIS MA Total Balance at December 31, 2020 $ 313 $ 874 $ 1,187 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (220) (810) (1,030) Increases due to amounts billable excluding amounts recognized as revenue during the period 207 884 1,091 Increases due to acquisitions during the period — 94 94 Effect of exchange rate changes (4) (3) (7) Total changes in deferred revenue (17) 165 148 Balance at December 31, 2021 $ 296 $ 1,039 $ 1,335 Deferred revenue—current $ 214 $ 1,035 $ 1,249 Deferred revenue—noncurrent $ 82 $ 4 $ 86 For the MA segment, for the year ended December 31, 2021, the increase in the deferred revenue balance was primarily due to acquisitions (Cortera, RMS, and PassFort) and organic growth. Significant changes in the deferred revenue balances during the year ended December 31, 2020 are as follows: Year Ended December 31, 2020 MIS MA Total Balance at December 31, 2019 $ 322 $ 840 $ 1,162 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (229) (800) (1,029) Increases due to amounts billable excluding amounts recognized as revenue during the period 215 792 1,007 Increases due to acquisitions during the period — 24 24 Effect of exchange rate changes 5 18 23 Total changes in deferred revenue (9) 34 25 Balance at December 31, 2020 $ 313 $ 874 $ 1,187 Deferred revenue—current $ 216 $ 873 $ 1,089 Deferred revenue—noncurrent $ 97 $ 1 $ 98 For the MA segment, for the year ended December 31, 2020, the increase in the deferred revenue balance was primarily due to acquisitions (RDC, Acquire Media, ZMFS, and Catylist) and changes in FX translation rates. 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 December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $99 million. The Company expects to recognize into revenue approximately 25% 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 of unsatisfied performance obligations relating to 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 December 31, 2022 as well as amounts not yet invoiced to customers as of December 31, 2022 largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $3.5 billion. The Company expects to recognize into revenue approximately 60% of this balance within one year, approximately 25% of this balance between one to two years and the remaining amount thereafter. Costs to Obtain or Fulfill a Contract with a Customer MA Costs to Obtain a Contract with a Customer As of December 31, 2022 2021 Capitalized costs to obtain sales contracts $ 232 $ 183 Year ended December 31, 2022 2021 2020 Amortization of capitalized costs to obtain sales contracts $ 80 $ 60 $ 59 Amortization of costs incurred to obtain customer contracts is included within SG&A expenses in the consolidated statements of operations. Costs incurred to obtain customer contracts are only in the MA segment. MIS and MA Costs to Fulfill a Contract with a Customer As of December 31, 2022 As of December 31, 2021 MIS MA Total MIS MA Total Capitalized costs to fulfill sales contracts $ 12 $ 33 $ 45 $ 14 $ 44 $ 58 Year Ended Year Ended Year Ended MIS MA Total MIS MA Total MIS MA Total Amortization of capitalized costs to fulfill sales contracts $ 54 $ 69 $ 123 $ 48 $ 76 $ 124 $ 47 $ 66 $ 113 |
RECONCILIATION OF WEIGHTED AVER
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING | RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING Below is a reconciliation of basic to diluted shares outstanding: Year Ended December 31, 2022 2021 2020 Basic 183.9 186.4 187.6 Dilutive effect of shares issuable under stock-based compensation plans 0.8 1.5 1.7 Diluted 184.7 187.9 189.3 Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above 0.5 0.2 0.2 |
ACCELERATED SHARE REPURCHASE PR
ACCELERATED SHARE REPURCHASE PROGRAM | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
ACCELERATED SHARE REPURCHASE PROGRAM | ACCELERATED SHARE REPURCHASE PROGRAM On March 1, 2022, the Company entered into an ASR agreement with a financial institution counterparty to repurchase $500 million of its outstanding common stock. The Company paid $500 million to the counterparty and received an initial delivery of 1.2 million shares of its common stock. Final settlement of the ASR agreement was completed in April 2022 and the Company received delivery of an additional 0.3 million shares of the Company’s common stock. In total, the Company repurchased 1.5 million shares of the Company’s common stock during the term of the ASR Agreement, based on the volume-weighted average price (net of discount) of $324.20/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 | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
CASH EQUIVALENTS AND INVESTMENTS | CASH EQUIVALENTS AND INVESTMENTS The table below provides additional information on the Company’s cash equivalents and investments: As of December 31, 2022 Cost Gross Unrealized Gains Fair Value Balance sheet location Cash and cash equivalents Short-term investments Other assets Certificates of deposit and money market deposit accounts (1) $ 914 $ — $ 914 $ 808 $ 90 $ 16 Mutual funds $ 71 $ — $ 71 $ — $ — $ 71 As of December 31, 2021 Cost Gross Unrealized Gains Fair Value Balance sheet location Cash and cash equivalents Short-term investments Other assets Certificates of deposit and money market deposit accounts (1) $ 691 $ — $ 691 $ 584 $ 91 $ 16 Mutual funds $ 65 $ 8 $ 73 $ — $ — $ 73 (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 December 31, 2022 and at December 31, 2021. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 months to 24 months at December 31, 2022 and 13 months to 29 months at December 31, 2021. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents. In addition, the Company invests in Corporate-Owned Life Insurance (COLI). As of December 31, 2022 and December 31, 2021, the contract value of the COLI was $40 million and $37 million, respectively. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes. Derivatives and non-derivative instruments designated as accounting hedges: Fair Value Hedges Interest Rate Swaps The Company has entered into interest rate swaps to convert the fixed interest rate on certain of its long-term debt to a floating interest rate based on the 3-month LIBOR, 6-month LIBOR, and SOFR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the long-term debt, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the debt. The changes in the fair value of the swaps and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest expense, net in the Company’s consolidated statements of operations. The following table summarizes the Company’s interest rate swaps designated as fair value hedges: Nature of Swap Notional Amount Floating Interest Rate Hedged Item 2022 2021 2017 Senior Notes due 2023 Pay Floating/Receive Fixed $ — $ 250 3-month LIBOR 2017 Senior Notes due 2028 Pay Floating/Receive Fixed $ 500 $ 500 3-month LIBOR 2020 Senior Notes due 2025 Pay Floating/Receive Fixed $ 300 $ 300 6-month LIBOR 2014 Senior Notes due 2044 Pay Floating/Receive Fixed $ 300 $ 300 3-month LIBOR 2018 Senior Notes due 2048 Pay Floating/Receive Fixed $ 300 $ 300 3-month LIBOR 2018 Senior Notes due 2029 (1) Pay Floating/Receive Fixed $ 400 $ — SOFR 2022 Senior Notes due 2052 (1) Pay Floating/Receive Fixed $ 500 $ — SOFR 2022 Senior Notes due 2032 (1) Pay Floating/Receive Fixed $ 250 $ — SOFR Total Total $ 2,550 $ 1,650 (1) Executed in 2022. Refer to Note 18 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 (Expense) Year Ended December 31, 2022 2021 2020 Interest expense, net $ (231) $ (171) $ (205) Descriptions Location on Consolidated Statements of Operations Net interest settlements and accruals on interest rate swaps Interest expense, net $ (8) $ 23 $ 19 Fair value changes on interest rate swaps Interest expense, net $ (228) $ (60) $ 47 Fair value changes on hedged debt Interest expense, net $ 228 $ 60 $ (47) 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: December 31, 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 December 31, 2022, these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company: Year Ending December 31, 2026 € 450 2027 € 531 2028 € 588 2029 € 373 2031 € 481 2032 € 480 Total € 2,903 The following table provides information on the gains/(losses) on the Company’s net investment and cash flow hedges: Amount of Gain/(Loss) Amount of Gain/(Loss) Gain/(Loss) Recognized in Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships Year Ended December 31, Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 2022 2021 2020 FX forward contracts $ — $ 18 $ (14) $ — $ 1 $ — $ — $ — $ — Cross currency swaps 99 143 (165) — — — 56 35 50 Long-term debt 65 81 (95) — — — — — — Total net investment hedges $ 164 $ 242 $ (274) $ — $ 1 $ — $ 56 $ 35 $ 50 Derivatives in Cash Flow Hedging Relationships Interest rate contracts — — (51) (2) (2) (2) — — — Total cash flow hedges — — (51) (2) (2) (2) — — — Total $ 164 $ 242 $ (325) $ (2) $ (1) $ (2) $ 56 $ 35 $ 50 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 December 31, 2022 December 31, 2021 Net investment hedges Cross currency swaps $ 118 $ 19 FX forwards 29 29 Long-term debt 38 (27) Total net investment hedges 185 21 Cash flow hedges Interest rate contracts (47) (49) Cross-currency swap 2 2 Total cash flow hedges (45) (47) Total net (loss) gain in AOCL $ 140 $ (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 April 2023. The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: December 31, 2022 December 31, 2021 Notional Amount of Currency Pair: Sell Buy Sell Buy Contracts to sell USD for GBP $ 170 £ 146 $ 126 £ 92 Contracts to sell USD for Japanese yen $ 24 ¥ 3,500 $ 22 ¥ 2,500 Contracts to sell USD for Canadian dollars $ 87 C$ 120 $ 120 C$ 150 Contracts to sell USD for Singapore dollars $ 50 S$ 70 $ 67 S$ 90 Contracts to sell USD for euros $ 116 € 115 $ 364 € 315 Contracts to sell USD for Russian ruble $ — ₽ — $ 16 ₽ 1,200 Contracts to sell USD for Indian rupee $ 19 ₹ 1,600 $ 7 ₹ 500 Contracts to sell GBP for USD £ — $ — £ 172 $ 231 Contracts to sell euros for USD € 85 $ 89 € — $ — NOTE: € = euro, £ = British pound, S$ = Singapore dollar, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar, ₽ = Russian ruble, ₹= Indian rupee The following table summarizes the impact to the consolidated statements of operations relating to the net gain (loss) on the Company’s derivatives which are not designated as hedging instruments: Year Ended December 31, Derivatives Not Designated as Accounting Hedges Location on Statement of Operations 2022 2021 2020 FX forwards Other non-operating expense, net $ (72) $ (27) $ 41 Foreign exchange forwards relating to RMS acquisition (1) Other non-operating income, net $ — $ (13) $ — (1) The Company entered into forward contracts to sell $1,675 million for £1,200 million 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 instruments 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 December 31, 2022 December 31, 2021 Assets: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other assets $ 27 $ 53 Interest rate swaps designated as fair value hedges Other assets — 13 Total derivatives designated as accounting hedges 27 66 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Other current assets 19 1 Total assets $ 46 $ 67 Liabilities: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other liabilities 78 17 Interest rate swaps designated as fair value hedges Other liabilities 239 23 Total derivatives designated as accounting hedges 317 40 Non-derivative instruments designated as accounting hedge: Long-term debt designated as net investment hedge Long-term debt 1,334 1,421 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Accounts payable and accrued liabilities 2 12 Total liabilities $ 1,653 $ 1,473 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of: December 31, 2022 2021 Office and computer equipment (3 - 10 year estimated useful life) $ 339 $ 300 Office furniture and fixtures (3 - 10 year estimated useful life) 54 52 Internal-use computer software (1 - 10 year estimated useful life) 995 771 Leasehold improvements and building (1 - 20 year estimated useful life) 237 234 Total property and equipment, at cost 1,625 1,357 Less: accumulated depreciation and amortization (1,123) (1,010) Total property and equipment, net $ 502 $ 347 Depreciation and amortization expense related to the above assets was $131 million, $99 million, and $96 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS The following is a discussion of material acquisitions completed by the Company. The business combinations described below are accounted for using the acquisition method of accounting whereby assets acquired and liabilities assumed were recognized at fair value 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. With the exception of RMS, the Company has not presented pro forma combined results for these acquisitions because the impact on previously reported statements of operations would not have been material. PassFort On November 30, 2021, the Company acquired 100% of PassFort, a U.K. SaaS-based workflow platform for identity verification, customer onboarding, and risk analysis. The table below details the total consideration relating to the acquisition: Cash paid at closing $ 157 Additional consideration paid to sellers in 2022 (1) 1 Total consideration $ 158 (1) Represents additional consideration paid to the sellers following finalization of customary post-closing completion adjustments. Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: Cash $ 10 Accounts receivable 1 Intangible assets: Product technology (5 year useful life) $ 14 Customer relationships (16 year useful life) 8 Trade name (4 year useful life) 1 Total intangible assets (9 year weighted average useful life) 23 Goodwill 138 Liabilities: Accounts payable and accrued liabilities $ (7) Deferred revenue (1) Deferred tax liabilities (6) Total liabilities (14) Net assets acquired $ 158 Goodwill The goodwill recognized as a result of this acquisition includes, among other things, value created by combining the complementary risk assessment products of the Company and PassFort. The integration of PassFort’s platform into Moody’s suite of KYC and compliance offerings is expected to create a holistic workflow solution to benefit both new and existing Moody's customers. Goodwill, which has been assigned to the MA segment, is not deductible for tax purposes. Transaction costs Transaction costs directly related to the PassFort acquisition were not material. RMS On September 15, 2021, the Company acquired 100% of RMS, a global provider of climate and natural disaster risk modeling and analytics. The cash payment was funded with new debt financing and a combination of U.S. and offshore cash on hand. The acquisition will expand Moody’s insurance data and analytics business and accelerate the development of the Company’s global integrated risk capabilities to address the next generation of risk assessment. The table below details the total consideration relating to the acquisition: Cash paid at closing $ 1,922 Replacement equity compensation awards 5 Total consideration $ 1,927 Shown below is the 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 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 uncertain tax positions assumed in the transaction, for which the Company expects to be indemnified by the sellers in the event of an unfavorable outcome. Transaction costs Transaction costs 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 twelve months ended December 31, 2021 and 2020 as if the acquisition of RMS occurred on January 1, 2020. The pro forma financial information is presented for comparative purposes only, 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. Year Ended December 31, Unaudited 2021 2020 Pro forma Revenue $ 6,463 $ 5,667 Pro forma Net Income attributable to Moody's $ 2,244 $ 1,666 The unaudited pro forma results do not include any anticipated cost savings or other effects of the planned integration of RMS. Accordingly, the pro forma results above are not necessarily indicative of the results that would have been reported if the acquisition had occurred on the dates indicated, nor are the pro forma results indicative of results which may occur in the future. The RMS results included in the above have been converted to U.S. GAAP from IFRS as issued by the IASB and have been translated to USD at rates in effect for the periods presented. The RMS amounts in the pro forma results include an addition to revenue of approximately $18 million and a reduction to revenue of approximately $22 million relating to a fair value adjustment to deferred revenue required as part of acquisition accounting for the years ended December 31, 2021 and 2020, respectively. Cortera On March 19, 2021, the Company acquired 100% of Cortera, a provider of North American credit data and workflow solutions. The table below details the total consideration relating to the acquisition: Cash paid at closing $ 138 Additional consideration paid to sellers in 2021 (1) 1 Total consideration $ 139 (1) Represents additional consideration paid to the sellers following finalization of customary post-closing completion adjustments. Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: Current assets $ 7 Intangible assets: Database (10 year useful life) $ 38 Customer relationships (18 year useful life) 9 Product technology (8 year useful life) 9 Trade name (5 year useful life) 1 Total intangible assets (11 year weighted average useful life) 57 Goodwill (1) 79 Deferred tax assets (1) 16 Other assets 2 Liabilities: Accounts payable and accrued liabilities $ (1) Deferred revenue (4) Deferred tax liabilities (15) Other liabilities (2) Total liabilities (22) Net assets acquired $ 139 (1) During the third quarter of 2021, the Company received further information, that existed as of the acquisition date, with respect to Cortera’s deferred taxes. Accordingly, the Company recorded a measurement period adjustment of $16 million to its estimate for deferred tax assets. Current assets in the table above include acquired cash of $4 million and accounts receivable of approximately $2 million. Goodwill The goodwill recognized as a result of this acquisition includes, among other things, the value of combining the complementary risk assessment products of the Company and Cortera, which is expected to extend the Company’s reach to new and evolving market segments as well as cost savings synergies, expected new customer acquisitions and products. Goodwill, which has been assigned to the MA segment, is not deductible for tax purposes. Transaction costs Transaction costs directly related to the Cortera acquisition were not material. RDC On February 13, 2020, the Company acquired 100% of RDC, a provider of anti-money laundering and know-your-customer data and due diligence services. The table below details the total consideration relating to the acquisition: Cash paid at closing $ 700 Additional consideration paid to sellers in 2020 (1) 2 Total consideration $ 702 (1) Represents additional consideration paid to the sellers following finalization of customary post-closing completion adjustments. Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: (Amounts in millions) Current assets $ 24 Intangible assets: Customer relationships (25 year useful life) $ 174 Database (10 year useful life) 86 Product technology (4 year useful life) 17 Trade name (3 year useful life) 3 Total intangible assets (19 year weighted average life) 280 Goodwill 494 Other assets 2 Liabilities: Accounts payable and accrued liabilities $ (5) Deferred revenue (20) Deferred tax liabilities (71) Other liabilities (2) Total liabilities (98) Net assets acquired $ 702 Current assets in the table above include acquired cash of $6 million. Additionally, current assets include accounts receivable of approximately $14 million. Goodwill The goodwill recognized as a result of this acquisition includes, among other things, the value of combining the complementary product portfolios of the Company and RDC, which is expected to extend the Company’s reach to new and evolving market segments as well as cost savings synergies, expected new customer acquisitions and products. Goodwill, which has been assigned to the MA segment, is not deductible for tax purposes. Transaction costs Transaction costs directly related to the RDC acquisition were not material. Other Acquisitions During the fourth quarter of 2020, the Company acquired three additional businesses within the MA reportable segment, which were not individually material, but are material in aggregate, to Moody's consolidated financial statements: – In December 2020, the Company acquired 100% of Catylist, Inc., a provider of commercial real estate solutions for brokers. – In December 2020, the Company acquired 100% of ZM Financial Systems, a provider of financial management software for the U.S. banking sector. – In October 2020, the Company acquired 100% of Acquire Media, an aggregator and distributor of curated real-time news, multimedia, data, and alerts. The aggregate consideration transferred for the aforementioned acquisitions of $205 million was funded by cash on hand. The following table summarizes the aggregate fair value of the assets acquired and liabilities assumed as of the respective closing dates for each acquisition. (Amounts in millions) Current assets $ 5 Intangible assets: Customer relationships (18 year useful life) $ 47 Product technology (8 year useful life) 23 Database (10 year useful life) 8 Trade name (14 year useful life) 4 Total intangible assets (14 year weighted average life) 82 Goodwill 131 Other assets 3 Liabilities: Current liabilities $ (8) Long-term liabilities (8) Total liabilities (16) Net assets acquired $ 205 |
GOODWILL AND OTHER ACQUIRED INT
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS The following tables summarize the activity in goodwill: Year Ended December 31, 2022 MIS MA Consolidated Gross Accumulated Net Gross Accumulated Net Gross Accumulated Net Balance at beginning of year $ 396 $ — $ 396 $ 5,615 $ (12) $ 5,603 $ 6,011 $ (12) $ 5,999 Additions/ adjustments (1) 4 — 4 88 — 88 92 — 92 Foreign currency translation adjustments (23) — (23) (229) — (229) (252) — (252) Ending Balance $ 377 $ — $ 377 $ 5,474 $ (12) $ 5,462 $ 5,851 $ (12) $ 5,839 Year Ended December 31, 2021 MIS MA Consolidated Gross Accumulated Net Gross Accumulated Net Gross Accumulated Net Balance at beginning of year $ 311 $ — $ 311 $ 4,257 $ (12) $ 4,245 $ 4,568 $ (12) $ 4,556 Additions/ adjustments (2) 90 — 90 1,525 — 1,525 1,615 — 1,615 Foreign currency translation adjustments (5) — (5) (167) — (167) (172) — (172) Ending balance $ 396 $ — $ 396 $ 5,615 $ (12) $ 5,603 $ 6,011 $ (12) $ 5,999 (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 9. (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 accumulated amortization consisted of: December 31, 2022 2021 Customer relationships $ 2,024 $ 2,101 Accumulated amortization (453) (381) Net customer relationships 1,571 1,720 Software/product technology 661 663 Accumulated amortization (283) (219) Net software/product technology 378 444 Database 178 179 Accumulated amortization (64) (46) Net database 114 133 Trade names 197 207 Accumulated amortization (58) (47) Net trade names 139 160 Other (1) 52 54 Accumulated amortization (44) (44) Net other 8 10 Total $ 2,210 $ 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: Year Ended December 31, 2022 2021 2020 Amortization expense $ 200 $ 158 $ 124 Estimated future annual amortization expense for intangible assets subject to amortization is as follows: Year Ending December 31, 2023 $ 196 2024 187 2025 183 2026 180 2027 171 Thereafter 1,293 Total estimated future amortization $ 2,210 |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 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. The 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 leased office spaces and a reduction in staff, including the relocation of certain job functions. The exit from certain leased office spaces began late in 2022 and is expected to result in $50 million to $70 million of pre-tax charges from vacating the affected office spaces, a large portion of which Moody's intends to sublease. The program also includes $85 million to $100 million of pre-tax personnel-related restructuring charges, an amount that includes severance costs, expense related to the modification of equity awards 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 $85 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 related 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. On July 29, 2020, the chief executive officer of Moody’s approved a restructuring program (the “2020 Real Estate Rationalization Restructuring Program”) primarily in response to the COVID-19 pandemic which revolved around the rationalization and exit of certain leased office spaces. The exit from certain leased office space began in the third quarter of 2020 and was substantially completed at December 31, 2021. The 2020 Real Estate Rationalization Restructuring Program primarily reflected non-cash charges related to the impairment of operating lease right-of-use assets and leasehold improvements. The 2020 Restructuring Program is expected to result in an estimated annualized savings of approximately $5 million to $6 million a year. Total expenses included in the accompanying consolidated statements of operations relating to the Company's restructuring programs are as follows: Year Ended December 31, 2022 Employee Termination Costs (1) Real Estate Related Costs (2) Other Costs (3) Total 2020 Real Estate Rationalization Restructuring Program $ — $ 2 $ — $ 2 2020 MA Strategic Reorganization Restructuring Program (1) — — (1) 2022 - 2023 Geolocation Restructuring Program 85 27 1 113 Total Restructuring $ 84 $ 29 $ 1 $ 114 Year Ended December 31, 2021 Employee Termination Costs (1) Real Estate Related Costs Other Total 2018 Restructuring Program $ (2) $ — $ — $ (2) 2020 MA Strategic Reorganization Restructuring Program 2 — — 2 Total Restructuring $ — $ — $ — $ — Year Ended December 31, 2020 Employee Termination Costs (1) Real Estate Related Costs (4) Other Total 2018 Restructuring Program $ (4) $ — $ — $ (4) 2020 Real Estate Rationalization Restructuring Program — 36 — 36 2020 MA Strategic Reorganization Restructuring Program 18 — — 18 Total Restructuring $ 14 $ 36 $ — $ 50 (1) Includes severance costs and expense related to the modification of equity awards. (2) Primarily includes ROU Asset and leasehold improvement impairment charges and the non-cash acceleration of amortization of abandoned ROU assets and leasehold improvements for the year ended December 31, 2022. The fair value of the impaired assets was determined by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of those assets subsequent to the impairment was $0. (3) Primarily includes professional service fees related to execution of the 2022 - 2023 Geolocation Restructuring Program. (4) Includes ROU Asset impairment charges and the non-cash acceleration of amortization of leasehold improvements for the year ended December 31, 2020. The fair value of the impaired ROU Assets was determined by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of those ROU assets subsequent to the impairment was $10 million and was categorized as Level 3 within the ASC Topic 820 fair value hierarchy. Changes to the restructuring liability were as follows: 2022 2021 2020 Balance as of January 1 $ 4 $ 21 $ 24 2018 Restructuring Program: Cost incurred and adjustments — (2) (4) Cash payments — — (18) 2020 Real Estate Rationalization Restructuring Program: Cost incurred and adjustments — (1) 1 2020 MA Strategic Reorganization Restructuring Program: Cost incurred and adjustments (1) 2 18 Cash payments (2) (16) — 2022 - 2023 Geolocation Restructuring Program: Cost incurred and adjustments 86 — — Cash payments (22) — — Balance as of December 31 (1) $ 65 $ 4 $ 21 (1) Restructuring liability is primarily comprised of employee termination costs, with an immaterial amount of real estate-related and other costs. As of December 31, 2022, substantially all of the remaining $65 million restructuring liability is expected to be paid out in 2023. Cumulative expense incurred through December 31, 2022 Employee Real Estate Related Other Costs Total 2018 Restructuring Program $ 55 $ 48 $ — $ 103 2020 Real Estate Rationalization Restructuring Program $ — $ 38 $ — $ 38 2020 MA Strategic Reorganization Restructuring Program $ 19 $ — $ — $ 19 2022 - 2023 Geolocation Restructuring Program $ 85 $ 27 $ 1 $ 113 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The tables below present information about items which are carried at fair value on a recurring basis at December 31, 2022 and 2021: Fair value Measurement as of December 31, 2022 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 46 $ — $ 46 Mutual funds 71 71 — Total $ 117 $ 71 $ 46 Liabilities: Derivatives (1) $ 319 $ — $ 319 Total $ 319 $ — $ 319 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 forwards on certain assets and liabilities as well as interest rate swaps and cross-currency swaps as more fully described in Note 7 to the consolidated financial statements. The following are descriptions of the methodologies utilized by the Company to estimate the fair value of its derivative contracts and 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 INFORMATION
OTHER BALANCE SHEET INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Other Balance Sheet Information [Abstract] | |
OTHER BALANCE SHEET INFORMATION | OTHER BALANCE SHEET INFORMATION The following tables contain additional detail related to certain balance sheet captions: December 31, 2022 2021 Other current assets: Prepaid taxes $ 235 $ 112 Prepaid expenses 119 99 Capitalized costs to obtain and fulfill sales contracts 106 103 Foreign exchange forwards on certain assets and liabilities 19 1 Other 104 74 Total other current assets $ 583 $ 389 December 31, 2022 2021 Other assets: Investments in non-consolidated affiliates $ 517 $ 443 Deposits for real-estate leases 15 14 Indemnification assets related to acquisitions 110 106 Mutual funds and fixed deposits 87 89 Company owned life insurance (at contract value) 40 37 Costs to obtain sales contracts 171 138 Derivative instruments designated as accounting hedges 27 66 Pension and other retirement employee benefits 40 77 Other 85 64 Total other assets $ 1,092 $ 1,034 December 31, 2022 2021 Accounts payable and accrued liabilities: Salaries and benefits $ 104 $ 145 Incentive compensation 276 390 Customer credits, advanced payments and advanced billings 102 100 Dividends 6 6 Professional service fees 49 75 Interest accrued on debt 92 85 Accounts payable 52 47 Income taxes 86 115 Pension and other retirement employee benefits 7 7 Accrued royalties 23 36 Foreign exchange forwards on certain assets and liabilities 2 12 Restructuring liability 65 4 Other 147 120 Total accounts payable and accrued liabilities $ 1,011 $ 1,142 December 31, 2022 2021 Other liabilities: Pension and other retirement employee benefits $ 189 $ 235 Interest accrued on UTPs 47 59 MAKS indemnification provisions 23 33 Income tax liability – non-current portion 48 23 Derivative instruments designated as accounting hedges 317 40 Other 50 48 Total other liabilities $ 674 $ 438 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: December 31, 2022 2021 Equity method investments (1) $ 187 $ 121 Investments measured using the measurement alternative (2) 325 318 Other 5 4 Total investments in non-consolidated affiliates $ 517 $ 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, which is more fully discussed in Note 2. 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. Refer to Note 24 for disclosure on earnings from non-consolidated affiliates, which are included within other non-operating income, net. |
COMPREHENSIVE INCOME AND ACCUMU
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME | COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME The following table provides details about the reclassifications out of AOCL: Year Ended December 31, Location in the consolidated 2022 2021 2020 Losses on currency translation adjustments 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 Cross-currency swap 1 — — Other non-operating income, net Interest rate contract (3) (2) (3) Other non-operating income, net Total before income taxes (2) (2) (3) Income tax effect of item above — — 1 Provision for income taxes Total net losses on cash flow hedges (2) (2) (2) Gains on net investment hedges Cross currency swaps — — 1 Other non-operating income, net FX forwards — 2 — Other non-operating income, net Total before income taxes — 2 1 Income tax effect of item above — (1) — Provision for income taxes Total net gains on net investment hedges — 1 1 Pension and other retirement benefits Amortization of actuarial losses and prior service costs included in net income (3) (11) (6) Other non-operating income, net Settlement charge — (8) (2) Other non-operating income, net Total before income taxes (3) (19) (8) Income tax effect of item above 1 5 2 Provision for income taxes Total pension and other retirement benefits (2) (14) (6) Total net losses included in Net Income attributable to reclassifications out of AOCL $ (24) $ (15) $ (7) The following tables show changes in AOCL by component (net of tax): Year Ended December 31, 2022 Pension and Gains/ (Losses) on Cash Flow Hedges Foreign Net Investment Hedges Total Balance at December 31, 2021 $ (49) $ (47) $ (335) $ 21 $ (410) Other comprehensive income/(loss) before reclassifications — — (421) 164 (257) Amounts reclassified from AOCL 2 2 20 — 24 Other comprehensive income/(loss) 2 2 (401) 164 (233) Balance at December 31, 2022 $ (47) $ (45) $ (736) $ 185 $ (643) Year Ended December 31, 2021 Pension and Gains/ (Losses) on Cash Flow Hedges Foreign Net Investment Hedges Total Balance at December 31, 2020 $ (118) $ (49) $ (45) $ (220) $ (432) Other comprehensive income/(loss) before reclassifications 55 — (290) 242 7 Amounts reclassified from AOCL 14 2 — (1) 15 Other comprehensive income/(loss) 69 2 (290) 241 22 Balance at December 31, 2021 $ (49) $ (47) $ (335) $ 21 $ (410) Year Ended December 31, 2020 Pension and Gains/ (Losses) on Cash Flow Hedges Foreign Net Investment Hedges Total Balance at December 31, 2019 $ (92) $ — $ (401) $ 54 $ (439) Other comprehensive income/(loss) before reclassifications (32) (51) 356 (273) — Amounts reclassified from AOCL 6 2 — (1) 7 Other comprehensive income/(loss) (26) (49) 356 (274) 7 Balance at December 31, 2020 $ (118) $ (49) $ (45) $ (220) $ (432) |
PENSION AND OTHER RETIREMENT BE
PENSION AND OTHER RETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER RETIREMENT BENEFITS | PENSION AND OTHER RETIREMENT BENEFITS U.S. Plans Moody’s maintains funded and unfunded noncontributory Defined Benefit Pension Plans ("DBPPs"). The DBPPs provide defined benefits using a cash balance formula based on years of service and career average salary or final average pay for selected executives. The Company also provides certain healthcare and life insurance benefits for retired U.S. employees. The retirement healthcare plans are contributory; the life insurance plans are noncontributory. Moody’s funded and unfunded U.S. pension plans, the U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Retirement Plans.” The U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Other Retirement Plans.” Through 2007, substantially all U.S. employees were eligible to participate in the Company’s DBPPs. Effective January 1, 2008, the Company no longer offers DBPPs to U.S. employees hired or rehired on or after January 1, 2008 and new hires in the U.S. instead will receive a retirement contribution in similar benefit value under the Company’s Profit Participation Plan. Current participants of the Company’s Retirement Plans and Other Retirement Plans continue to accrue benefits based on existing plan benefit formulas. Following is a summary of changes in benefit obligations and fair value of plan assets for the Retirement Plans for the years ended December 31: Pension Plans Other Retirement Plans 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation, beginning of the period $ (570) $ (663) $ (48) $ (48) Service cost (14) (19) (4) (4) Interest cost (15) (14) (1) (1) Plan participants’ contributions — — (1) (1) Benefits paid 20 68 2 2 Actuarial (loss) gain 1 (6) — (3) Assumption changes 116 64 13 7 Benefit obligation, end of the period $ (462) $ (570) $ (39) $ (48) Change in plan assets: Fair value of plan assets, beginning of the period $ 544 $ 528 $ — $ — Actual return on plan assets (111) 34 — — Benefits paid (20) (68) (2) (2) Employer contributions 7 50 1 1 Plan participants’ contributions — — 1 1 Fair value of plan assets, end of the period $ 420 $ 544 $ — $ — Funded status of the plans $ (42) $ (26) $ (39) $ (48) Amounts recorded on the consolidated balance sheets: Pension and retirement benefits asset – non current $ 39 $ 74 $ — $ — Pension and retirement benefits liability – current (5) (5) (2) (1) Pension and retirement benefits liability – non current (76) (95) (37) (47) Net amount recognized $ (42) $ (26) $ (39) $ (48) Accumulated benefit obligation, end of the period $ (432) $ (524) The net decrease in the pension benefit obligation from assumption changes and actuarial gains in 2022 primarily resulted from increases to discount rates, partially offset by an increase to the annuity conversion rate. The net decrease in the pension benefit obligation from assumption changes and actuarial losses in 2021 primarily resulted from increases to the discount rates and changes to certain actuarial assumptions, including increased rates of retirement at younger ages. The following information is for those pension plans with an accumulated benefit obligation in excess of plan assets: December 31, 2022 2021 Aggregate projected benefit obligation $ 82 $ 101 Aggregate accumulated benefit obligation $ 72 $ 86 The following table summarizes the pre-tax net actuarial losses and prior service costs recognized in AOCL for the Company’s Retirement Plans as of December 31: Pension Plans Other Retirement Plans 2022 2021 2022 2021 Net actuarial losses (gains) $ (77) $ (61) $ 9 $ (4) Net prior service credits 2 3 — — Total recognized in AOCL – pretax $ (75) $ (58) $ 9 $ (4) Net periodic benefit expenses recognized for the Retirement Plans for the years ended December 31: Pension Plans Other Retirement Plans 2022 2021 2020 2022 2021 2020 Components of net periodic expense Service cost $ 14 $ 19 $ 17 $ 4 $ 4 $ 3 Interest cost 15 14 17 1 1 1 Expected return on plan assets (26) (27) (20) — — — Amortization of net actuarial loss and prior service credits from earlier periods 3 11 7 — 1 — Loss on settlement of pension obligations — 8 2 — — — Net periodic expense $ 6 $ 25 $ 23 $ 5 $ 6 $ 4 The following table summarizes the pre-tax amounts recorded in OCI related to the Company’s Retirement Plans for the years ended December 31: Pension Plans Other Retirement Plans 2022 2021 2020 2022 2021 2020 Amortization of net actuarial losses and prior service credit $ 3 $ 11 $ 7 $ — $ 1 $ — Settlement loss — 8 2 — — — Net actuarial (loss)/gain arising during the period (19) 65 (37) 13 4 (3) Total recognized in OCI – pre-tax $ (16) $ 84 $ (28) $ 13 $ 5 $ (3) ADDITIONAL INFORMATION: Assumptions—Retirement Plans Weighted-average assumptions used to determine benefit obligations at December 31: Pension Plans Other Retirement Plans 2022 2021 2022 2021 Discount rate 4.93 % 2.60 % 4.90 % 2.65 % Rate of compensation increase 3.63 % 3.63 % — — Weighted-average assumptions used to determine net periodic benefit expense for years ended December 31: Pension Plans Other Retirement Plans 2022 2021 2020 2022 2021 2020 Discount rate 2.60 % 2.24 % 3.04 % 2.65 % 2.30 % 3.05 % Expected return on plan assets 5.05 % 5.45 % 4.45 % — — — Rate of compensation increase 3.63 % 3.62 % 3.64 % — — — Cash balance plan interest crediting rate 4.50 % 4.50 % 4.50 % — — — The expected rate of return on plan assets represents the Company’s best estimate of the long-term return on plan assets and is determined by using a building block approach, which generally weighs the underlying long-term expected rate of return for each major asset class based on their respective allocation target within the plan portfolio, net of plan paid expenses. As the assumption reflects a long-term time horizon, the plan performance in any one particular year does not, by itself, significantly influence the Company’s evaluation. For 2022, the expected rate of return used in calculating the net periodic benefit costs was 5.05%. For 2023, the Company’s expected rate of return assumption is 6.55% to reflect the Company’s current view of long-term capital market outlook. Plan Assets Moody’s investment objective for the assets in the funded pension plan is to earn total returns that will minimize future contribution requirements over the long-term within a prudent level of risk. The Company works with its independent investment consultants to determine asset allocation targets for its pension plan investment portfolio based on its assessment of business and financial conditions, demographic and actuarial data, funding characteristics, and related risk factors. Other relevant factors, including historical and forward looking views of inflation and capital market returns, are also considered. Risk management practices include monitoring plan asset performance, diversification across asset classes and investment styles and periodic rebalancing toward asset allocation targets. The Company’s Asset Management Committee is responsible for overseeing the investment activities of the plan, which includes selecting acceptable asset classes, defining allowable ranges of holdings by asset class and by individual investment managers, defining acceptable securities within each asset class, and establishing investment performance expectations. Ongoing monitoring of the plan includes reviews of investment performance and managers on a regular basis, annual liability measurements, and periodic asset/liability studies. The Company’s investment policy uses risk-controlled investment strategies by increasing the plan’s asset allocation to fixed income securities and specifying ranges of acceptable target allocation by asset class based on different levels of the plan’s accounting funded status. In addition, the investment policy also requires the investment-grade fixed income assets to be rebalanced between shorter and longer duration bonds as the interest rate environment changes. This investment policy is designed to help protect the plan’s funded status and to limit volatility of the Company’s contributions. Based on the policy, the Company’s current target asset allocation is approximately 33% (range of 28% to 38%) in equity securities, 62% (range of 57% to 67%) in fixed income securities and 5% (range of 2% to 8%) in other investments and the plan will use a combination of active and passive investment strategies and different investment styles for its investment portfolios within each asset class. The plan’s equity investments are diversified across U.S. and non-U.S. stocks of small, medium and large capitalization. The plan’s fixed income investments are diversified principally across U.S. and non-U.S. government and corporate bonds, which are expected to help reduce plan exposure to interest rate variation and to better align assets with obligations. The plan also invests in other fixed income investments such as debts rated below investment grade, emerging market debt, and convertible securities. The plan’s other investment, which is made through a private real estate debt fund, is expected to provide additional diversification benefits and absolute return enhancement to the plan assets. Fair value of the assets in the Company’s funded pension plan by asset category at December 31, 2022 and 2021 are as follows: Fair Value Measurement as of December 31, 2022 Asset Category Balance Level 1 Level 2 Measured using NAV practical expedient (1) % of total Cash and cash equivalent $ 5 $ — $ 5 $ — 1 % Common/collective trust funds—equity securities U.S. large-cap 96 — 96 — 23 % U.S. small and mid-cap 17 — 17 — 4 % Emerging markets 19 — 19 — 5 % Total equity investments 132 — 132 — 31 % Emerging markets bond fund 26 — — 26 6 % Common/collective trust funds and corporate bonds —fixed income securities Intermediate-term investment grade U.S. government/ corporate bonds 54 — 54 — 13 % Mutual funds Long duration corporate bonds 126 — 126 — 30 % U.S. Treasury Inflation-Protected Securities (TIPs) 24 24 — — 6 % Convertible securities 14 14 — — 3 % Private investment fund—high yield securities 12 — — 12 3 % Total fixed-income investments 256 38 180 38 61 % Other investment—private real estate fund 27 — — 27 6 % Total Assets $ 420 $ 38 $ 317 $ 65 100 % Fair Value Measurement as of December 31, 2021 Asset Category Balance Level 1 Level 2 Measured using NAV practical expedient (1) % of total Cash and cash equivalent $ 4 $ — $ 4 $ — 1 % Common/collective trust funds—equity securities U.S. large-cap 135 — 135 — 25 % U.S. small and mid-cap 23 — 23 — 4 % Emerging markets 27 — 27 — 5 % Total equity investments 185 — 185 — 34 % Emerging markets bond fund 30 — — 30 6 % Common/collective trust funds and corporate bonds —fixed income securities Intermediate-term investment grade U.S. government/ corporate bonds 68 — 68 — 13 % Mutual funds Long duration corporate bonds 177 — 177 — 33 % U.S. Treasury Inflation-Protected Securities (TIPs) 24 24 — — 4 % Convertible securities 17 17 3 % Private investment fund—high yield securities 14 — — 14 3 % Total fixed-income investments 330 41 245 44 61 % Other investment—private real estate debt fund 25 — — 25 4 % Total Assets $ 544 $ 41 $ 434 $ 69 100 % (1) Investments are measured using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit a reconciliation of the fair value hierarchy to the value of the total plan assets. Cash and cash equivalents are primarily comprised of investments in money market mutual funds. In determining fair value, Level 1 investments are valued based on quoted market prices in active markets. Investments in common/collective trust and private mutual funds are valued using the NAV per unit in each fund. The NAV is based on the value of the underlying investments owned by each fund, minus its liabilities, and then divided by the number of shares outstanding. Common/collective trust funds and the private mutual fund are categorized in Level 2 to the extent that they are considered to have a readily determinable fair value. Investments for which fair value is estimated by using the NAV per share (or its equivalent) as a practical expedient are not categorized in the fair value hierarchy. Except for the Company’s U.S. funded pension plan, all of Moody’s Retirement Plans are unfunded and therefore have no plan assets. Cash Flows The Company did not contribute to its U.S. funded pension plan during the years ended December 31, 2022 and 2021. The Company made payments of $7 million and $50 million related to its U.S. unfunded pension plan obligations during the years ended December 31, 2022 and 2021, respectively. The Company currently does not anticipate making a contribution to its funded pension plan in 2023, and anticipates making payments of $6 million related to its unfunded U.S. pension plans and immaterial payments related to its other Retirement Plans during the year ended December 31, 2023. Estimated Future Benefits Payable Estimated future benefits payments for the Retirement Plans are as follows as of the year ended December 31, 2022: Year Ending December 31, Pension Plans Other Retirement Plans 2023 $ 22 $ 2 2024 25 2 2025 31 2 2026 29 2 2027 30 3 2028 - 2032 160 17 Defined Contribution Plans Moody’s has a Profit Participation Plan covering substantially all U.S. employees. The Profit Participation Plan provides for an employee salary deferral and the Company matches employee contributions, equal to 50% of employee contribution up to a maximum of 3% of the employee’s pay. Effective January 1, 2008, all new hires are automatically enrolled in the Profit Participation Plan when they meet eligibility requirements unless they decline participation. As the Company’s U.S. DBPPs are closed to new entrants effective January 1, 2008, all eligible new hires will instead receive a retirement contribution into the Profit Participation Plan in value similar to the pension benefits. Additionally, effective January 1, 2008, the Company implemented a deferred compensation plan in the U.S., which is unfunded and provides for employee deferral of compensation and Company matching contributions related to compensation in excess of the IRS limitations on benefits and contributions under qualified retirement plans. Total expenses associated with U.S. defined contribution plans were $35 million, $54 million and $44 million in the years ended December 31, 2022, 2021 and 2020, respectively. Effective January 1, 2008, Moody’s has designated the Moody’s Stock Fund, an investment option under the Profit Participation Plan, as an Employee Stock Ownership Plan and, as a result, participants in the Moody’s Stock Fund may receive dividends in cash or may reinvest such dividends into the Moody’s Stock Fund. Moody’s paid approximately $1 million during each of the years ended December 31, 2022, 2021, and 2020, respectively, for the Company’s common shares held by the Moody’s Stock Fund. The Company records the dividends as a reduction of retained earnings in the Consolidated Statements of Shareholders’ Equity. The Moody’s Stock Fund held approximately 329,300 and 328,500 shares of Moody’s common stock at December 31, 2022 and 2021, respectively. Non-U.S. Plans |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS Under the 1998 Plan, 33.0 million shares of the Company’s common stock have been reserved for issuance. The 2001 Plan, which is shareholder approved, permits the granting of up to 50.6 million shares, of which not more than 14.0 million shares are available for grants of awards other than stock options. The stock plans also provide for the granting of restricted stock. The stock plans provide that options are exercisable not later than ten years from the grant date. The vesting period for awards under the stock plans is generally determined by the Board at the date of the grant and has been four years except for employees who are at or near retirement eligibility, as defined, for which vesting is between one The Company maintains the Directors’ Plan for its Board, which permits the granting of awards in the form of non-qualified stock options, restricted stock or performance shares. The vesting period is determined by the Board at the date of the grant and is generally one year for both options and restricted stock. Under the Directors’ Plan, 1.7 million shares of common stock were reserved for issuance. Any director of the Company who is not an employee of the Company or any of its subsidiaries as of the date that an award is granted is eligible to participate in the Directors’ Plan. On September 15, 2021, the Company acquired RMS, which is discussed in more detail in Note 9. As part of the acquisition, the Company registered the RMS 2014 Equity Award Plan and the RMS 2015 Equity Incentive Plan (collectively, "RMS Plans") as part of the purchase agreement to acquire RMS. Under the RMS Plans, 1.2 million shares of the Company’s common stock have been reserved for issuance. The RMS Plans provide that options are exercisable not later than ten years from the grant date. The vesting period is generally determined by the Board at the date of the grant and is four years for both options and restricted stock granted during 2021. As a result of the acquisition, certain RMS employees' unvested equity awards (employee stock options and restricted stock) with an acquisition-date fair value of $33 million were converted into equity awards of the Company based on an exchange ratio as defined in the purchase agreement. The portion of the fair value of the replacement awards related to services provided prior to the acquisition was $5 million and was accounted for as consideration transferred (See Note 9). The remaining portion of the replacement awards of $28 million, which is associated with post-acquisition service requirements, will be recognized as compensation expense over the remaining vesting period. Presented below is a summary of the stock-based compensation expense and associated tax benefit in the accompanying consolidated statements of operations: Year Ended December 31, 2022 2021 2020 Stock-based compensation expense $ 169 $ 175 $ 154 Tax benefit $ 41 $ 42 $ 30 The fair value of each employee stock option award is estimated on the date of grant using the Black-Scholes option-pricing model that uses the assumptions noted below. The expected dividend yield is derived from the annual dividend rate on the date of grant. The expected stock volatility is based on an assessment of historical weekly stock prices of the Company as well as implied volatility from Moody’s traded options. The risk-free interest rate is based on U.S. government zero coupon bonds with maturities similar to the expected holding period. The expected holding period is determined by examining historical and projected post-vesting exercise behavior activity. The following weighted average assumptions were used for options granted (excluding the aforementioned RMS replacement awards for the year ended December 31, 2021): Year Ended December 31, 2022 2021 2020 Expected dividend yield 0.86 % 0.89 % 0.80 % Expected stock volatility 27 % 28 % 23 % Risk-free interest rate 1.91 % 0.82 % 1.43 % Expected holding period (in years) 5.6 5.6 5.7 Due to the RMS replacement option awards being heavily in-the-money at the acquisition date, the Company utilized a binomial valuation approach in 2021 to determine the fair value of the options, which approximated the intrinsic value of the replaced awards at the acquisition date. The following represents the fair value of the options at grant date (including the RMS replacement option awards for the year ended December 31, 2021): Year Ended December 31, 2022 2021 2020 Weighted average grant date fair value per share $ 84.00 $ 121.14 $ 60.66 A summary of option activity as of December 31, 2022 and changes during the year then ended is presented below: Options Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, December 31, 2021 1.0 $ 166.16 Granted 0.1 $ 324.64 Exercised (0.1) $ 148.28 Outstanding, December 31, 2022 1.0 $ 181.35 5.2 years $ 107 Vested and expected to vest, December 31, 2022 1.0 $ 181.01 5.2 years $ 107 Exercisable, December 31, 2022 0.7 $ 139.08 4.0 years $ 99 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between Moody’s closing stock price on the last trading day of the year ended December 31, 2022 and the exercise prices, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options as of December 31, 2022. This amount varies based on the fair value of Moody’s stock. As of December 31, 2022, there was $14 million of total unrecognized compensation expense related to options. The expense is expected to be recognized over a weighted average period of 2.0 years. The following table summarizes information relating to stock option exercises: Year Ended December 31, 2022 2021 2020 Proceeds from stock option exercises $ 8 $ 24 $ 39 Aggregate intrinsic value $ 9 $ 55 $ 132 Tax benefit realized upon exercise $ 2 $ 13 $ 32 A summary of nonvested restricted stock activity for the year ended December 31, 2022 is presented below: Nonvested Restricted Stock Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2021 1.4 $ 253.85 Granted 0.6 $ 318.88 Vested (0.6) $ 229.86 Forfeited (0.1) $ 281.24 Balance, December 31, 2022 1.3 $ 288.47 As of December 31, 2022, there was $216 million of total unrecognized compensation expense related to nonvested restricted stock. The expense is expected to be recognized over a weighted average period of 2.4 years. The following table summarizes information relating to the vesting of restricted stock awards: Year Ended December 31, 2022 2021 2020 Fair value of shares vested $ 180 $ 194 $ 202 Tax benefit realized upon vesting $ 42 $ 46 $ 46 A summary of performance-based restricted stock activity for the year ended December 31, 2022 is presented below: Performance-based restricted stock Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2021 0.4 $ 266.89 Granted 0.1 $ 310.62 Vested (0.2) $ 169.80 Balance, December 31, 2022 0.3 $ 303.80 The following table summarizes information relating to the vesting of the Company’s performance-based restricted stock awards: Year Ended December 31, 2022 2021 2020 Fair value of shares vested $ 50 $ 28 $ 70 Tax benefit realized upon vesting $ 7 $ 7 $ 17 As of December 31, 2022, there was $22 million of total unrecognized compensation expense related to this plan. The expense is expected to be recognized over a weighted average period of 1.4 years. The Company has a policy of issuing treasury stock to satisfy shares issued under stock-based compensation plans. In addition, the Company also sponsors the ESPP. Under the ESPP, 6 million shares of common stock were reserved for issuance. The ESPP permits eligible employees to purchase common stock of the Company on a monthly basis at a discount to the average of the high and the low trading prices on the New York Stock Exchange on the last trading day of each month. This discount was 5% in 2022, 2021, and 2020 resulting in the ESPP qualifying for non-compensatory status under Topic 718 of the ASC. Accordingly, no compensation expense was recognized for the ESPP in 2022, 2021, and 2020. The employee purchases are funded through after-tax payroll deductions, which plan participants can elect from one percent to ten percent of compensation, subject to the annual federal limit. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Components of the Company’s income tax provision are as follows: Year Ended December 31, 2022 2021 2020 Current: Federal $ 106 $ 404 $ 213 State and Local 17 106 68 Non-U.S. 215 249 215 Total current 338 759 496 Deferred: Federal 57 (172) 6 State and Local 10 (45) — Non-U.S. (19) (1) (50) Total deferred 48 (218) (44) Total provision for income taxes $ 386 $ 541 $ 452 A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate on income before provision for income taxes is as follows: Year Ended December 31, 2022 2021 2020 U.S. statutory tax rate 21.0 % 21.0 % 21.0 % State and local taxes, net of federal tax benefit 0.8 % 1.5 % 2.3 % Benefit of foreign operations (0.2) % (1.5) % (1.5) % Other 0.3 % (1.4) % (1.5) % Effective tax rate 21.9 % 19.6 % 20.3 % Income tax paid $ 488 $ 932 $ 514 The source of income before provision for income taxes is as follows: Year Ended December 31, 2022 2021 2020 U.S. $ 804 $ 1,563 $ 1,349 Non-U.S. 956 1,192 880 Income before provision for income taxes $ 1,760 $ 2,755 $ 2,229 The components of deferred tax assets and liabilities are as follows: December 31, 2022 2021 Deferred tax assets: Account receivable allowances $ 9 $ 8 Accumulated depreciation and amortization 15 10 Stock-based compensation 57 50 Accrued compensation and benefits 51 101 Capitalized costs 27 33 Operating lease liabilities 115 134 Deferred revenue 206 252 Net operating loss 36 33 Restructuring 11 1 Uncertain tax positions 68 86 Self-insured related reserves 12 10 Loss on net investment hedges - OCI — 11 Other 14 16 Total deferred tax assets 621 745 Deferred tax liabilities: Accumulated depreciation and amortization of intangible assets and capitalized software (593) (659) ROU Assets (82) (102) Capital gains (29) (31) Self-insured related income (12) (10) Revenue Accounting Standard - ASC 606 (5) (7) Deferred tax on unremitted foreign earnings (13) (12) Gain on net investment hedges - OCI (48) (4) Other (9) (6) Total deferred tax liabilities (791) (831) Net deferred tax liabilities (170) (86) Valuation allowance (21) (18) Total net deferred tax liabilities $ (191) $ (104) On December 22, 2017, the Tax Act was signed into law, which resulted in significant changes to U.S. corporate tax laws. The Tax Act includes a mandatory one-time deemed repatriation tax (“transition tax”) on previously untaxed accumulated earnings of foreign subsidiaries and beginning in 2018 reduces the statutory federal corporate income tax rate from 35% to 21%. Accordingly, the Company determined the transition tax to be $236 million, with the remaining balance due of $48 million as of December 31, 2022. As a result of the Tax Act, all previously net undistributed foreign earnings have now been subject to U.S. tax. The Company regularly evaluates which entities it will indefinitely reinvest earnings. The Company has provided deferred taxes for those entities whose earnings are not considered indefinitely reinvested. The Company’s annual tax expense for the year ended December 31, 2022 includes Excess Tax Benefits from stock compensation of $19 million, benefits from the resolution of certain UTPs of $30 million and other net increases to tax positions of $12 million. The Company had valuation allowances of $21 million and $18 million at December 31, 2022 and 2021, respectively, related to foreign net operating losses for which realization is uncertain. As of December 31, 2022, the Company had $322 million of UTPs of which $297 million represents the amount that, if recognized, would impact the effective tax rate in future periods. The decrease in 2022 resulted primarily from lapses in statutes of limitation for non-U.S. jurisdictions along with state income tax settlement payments. The decrease in 2021 resulted primarily from the resolutions of uncertain tax positions. The increase in 2020 was primarily due to the additional reserves established for non-U.S. tax exposures. A reconciliation of the beginning and ending amount of UTPs is as follows: Year Ended December 31, 2022 2021 2020 Balance as of January 1 $ 388 $ 483 $ 477 Additions for tax positions related to the current year 12 102 37 Additions for tax positions of prior years 12 18 17 Reductions for tax positions of prior years (27) — (2) Settlements with taxing authorities (30) (134) (5) Lapse of statute of limitations (33) (81) (41) Balance as of December 31 $ 322 $ 388 $ 483 The Company classifies interest related to UTPs in interest expense in its consolidated statements of operations. Penalties, if incurred, are recognized in other non-operating (expense) income, net. Refer to Note 18 for disclosure of interest (expense) income relating to UTPs and other tax-related liabilities. As of December 31, 2022, 2021 and 2020 the amount of accrued interest recorded in the Company’s consolidated balance sheets related to UTPs was $47 million, $59 million and $113 million, respectively. 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 City tax returns for 2015 through 2017 are currently under examination. After the resolution of a tax audit for 2012, certain of the Company’s U.K. subsidiaries’ returns from 2012 to 2021 remain open to examination. For current ongoing matters related to open tax years, the Company estimates that it is reasonably possible that a significant portion of the balance of UTPs could decrease in the next twelve months as a result of the effective settlement of these audits. Given the number of years and nature of matters that remain subject to examination in various tax jurisdictions both in the U.S. and internationally, the Company is unable to estimate a range of possible changes to its UTPs for 2023. It is also possible that new issues might be raised by tax authorities which might necessitate increases to the balance of UTPs. As the Company is unable to predict the timing of conclusion of these audits, the Company 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 ASC Topic 740. 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. |
INDEBTEDNESS
INDEBTEDNESS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS The Company’s debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for certain debt as depicted in the table below, which is recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge the fair value of the note. The following table summarizes total indebtedness: December 31, 2022 Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value Notes Payable: 4.875% 2013 Senior Notes, due 2024 $ 500 $ — $ (1) $ (1) $ 498 5.25% 2014 Senior Notes, due 2044 600 (42) 3 (4) 557 1.75% 2015 Senior Notes, due 2027 534 — — (2) 532 3.25% 2017 Senior Notes, due 2028 500 (37) (3) (2) 458 4.25% 2018 Senior Notes, due 2029 400 (42) (2) (2) 354 4.875% 2018 Senior Notes, due 2048 400 (44) (6) (4) 346 0.950% 2019 Senior Notes, due 2030 800 — (2) (4) 794 3.75% 2020 Senior Notes, due 2025 700 (27) (1) (3) 669 3.25% 2020 Senior Notes, due 2050 300 — (4) (3) 293 2.55% 2020 Senior Notes, due 2060 300 — (2) (3) 295 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 (35) (8) (5) 452 4.25% 2022 Senior Notes, due 2032 500 (12) (2) (4) 482 Total long-term debt $ 7,734 $ (239) $ (55) $ (51) $ 7,389 December 31, 2021 Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value Notes Payable: 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 tables above represents the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt. Credit Facility The following summarizes information relating to the Company's revolving credit facility: December 31, 2022 December 31, 2021 Issue Date Capacity Maturity Drawn Undrawn Drawn Undrawn 2021 Credit Facility December 17, 2021 $ 1,250 December 17, 2026 $ — $ 1,250 $ — $ 1,250 Interest on borrowings under the 2021 Credit Facility is payable at rates that are based on an adjusted term SOFR Rate plus a premium that can range from 80.5 basis points to 122.5 basis points, depending on the Company’s index debt ratings, as set forth in the 2021 Facility Agreement. The Company also has the option to choose other rates, such as those based on adjusted Daily Simple SOFR or an alternate base rate as set forth in the 2021 Facility Agreement. The Company also pays quarterly facility fees, regardless of borrowing activity under the Facility. The quarterly fees for the 2021 Facility can range from 7 basis points of the 2021 Credit Facility amount to 15 basis points, depending on the Company’s index debt ratings. The facility fees for the 2021 Credit Facility are subject to sustainability-based pricing adjustments based on the Company’s annual performance with respect to certain spending with vendors who have committed to and publicly announced the setting of science-based targets to reduce greenhouse gas emissions. The 2021 Facility contains a financial covenant that requires the Company to maintain a total debt to EBITDA Ratio of (i) not more than 4 to 1 at the end of any fiscal quarter or (ii) not more than 4.5 to 1 as of the end of the first three consecutive quarters immediately following any acquisition with consideration in excess of $500 million, subject to certain conditions as set forth in the 2021 Facility. Commercial Paper On August 3, 2016, the Company entered into a private placement commercial paper program under which the Company may issue CP notes up to a maximum amount of $1.0 billion. Borrowings under the CP Program are backstopped by the 2021 Facility. Amounts under the CP Program may be re-borrowed. The maturity of the CP Notes will vary, but may not exceed 397 days from the date of issue. The CP Notes are sold at a discount from par, or alternatively, sold at par and bear interest at rates that will vary based upon market conditions. The rates of interest will depend on whether the CP Notes will be a fixed or floating rate. The interest on a floating rate may be based on the following: (a) certificate of deposit rate; (b) commercial paper rate; (c) the federal funds rate; (d) the LIBOR; (e) prime rate; (f) Treasury rate; or (g) such other base rate as may be specified in a supplement to the private placement agreement. The CP Program contains certain events of default including, among other things: non-payment of principal, interest or fees; entrance into any form of moratorium; and bankruptcy and insolvency events, subject in certain instances to cure periods. As of December 31, 2022, the Company has no CP borrowings outstanding. Notes Payable The Company may prepay certain of its senior notes, in whole or in part, but may incur a Make Whole amount penalty. During 2022, the Company issued the 2022 Senior Notes due 2052 and the 2022 Senior Notes due 2032. The key terms of these debt issuances are set forth in the table above. In 2022, the Company fully repaid $500 million of the 2017 Senior Notes due 2023 via a tender offer. Additionally, in December 2022, the Company repaid a portion of its outstanding 2.55% 2020 Senior Notes due 2060 via a partial tender offer. Pursuant to this tender offer, the Company early redeemed $200 million in principal amount of the notes for $126 million, resulting in a net $70 million gain on extinguishment. This gain on extinguishment is net of $4 million related to unamortized discounts and debt issuance costs associated with the principal amount that was repaid. At December 31, 2022, the Company was in compliance with all covenants contained within all of the debt agreements. All the debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of December 31, 2022, there were no such cross defaults. The repayment schedule for the Company’s borrowings is as follows: Year Ending December 31, Total 2023 $ — 2024 500 2025 700 2026 — 2027 534 Thereafter 6,000 Total $ 7,734 Interest expense, net The following table summarizes the components of interest as presented in the consolidated statements of operations: Year Ended December 31, 2022 2021 2020 Expense on borrowings $ (216) $ (185) $ (163) (Expense) income on UTPs and other tax related liabilities (1) (13) 21 (34) Net periodic pension costs - interest component (17) (16) (19) Income 15 9 11 Interest expense, net $ (231) $ (171) $ (205) Interest paid (2) $ 198 $ 162 $ 132 (1) The amount for the year ended December 31, 2021 includes a $45 million benefit relating to the reversal of tax-related interest accruals pursuant to the resolution of tax matters. (2) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 7. The fair value and carrying value of the Company’s debt as of December 31, 2022 and 2021 are as follows: December 31, 2022 December 31, 2021 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt $ 7,389 $ 6,564 $ 7,413 $ 7,982 The fair value of the Company’s debt is estimated based on quoted prices in active markets as of the reporting date, which are considered Level 1 inputs within the fair value hierarchy. |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK Authorized Capital Stock The total number of shares of all classes of stock that the Company has authority to issue under its Restated Certificate of Incorporation is 1.02 billion shares with a par value of $0.01, of which 1.0 billion are shares of common stock, 10.0 million are shares of preferred stock and 10.0 million are shares of series common stock. The preferred stock and series common stock can be issued with varying terms, as determined by the Board. Share Repurchase Program The Company first implemented a systematic share repurchase program in the third quarter of 2005 through an SEC Rule 10b5-1 program and has maintained its program since. Moody’s may also purchase opportunistically when conditions warrant. As a result, Moody’s share repurchase activity will continue to vary from quarter to quarter. The table below summarizes the Company’s remaining authority under its share repurchase program as of December 31, 2022: Date Authorized Amount Authorized Remaining Authority February 7, 2022 $ 750 $ 750 February 9, 2021 $ 1,000 $ 98 Total Remaining Authority at December 31, 2022 $ 848 During 2022, Moody’s repurchased 3.1 million shares of its common stock under its share repurchase program and issued a net 0.6 million shares under employee stock-based compensation plans. The net amount includes shares withheld for employee payroll taxes. Dividends The Company’s cash dividends were: Dividends Per Share Year ended December 31, 2022 2021 2020 Declared Paid Declared Paid Declared Paid First quarter $ 0.70 $ 0.70 $ 0.62 $ 0.62 $ 0.56 $ 0.56 Second quarter 0.70 0.70 0.62 0.62 0.56 0.56 Third quarter 0.70 0.70 0.62 0.62 0.56 0.56 Fourth quarter 0.70 0.70 0.62 0.62 0.56 0.56 Total $ 2.80 $ 2.80 $ 2.48 $ 2.48 $ 2.24 $ 2.24 On January 30, 2023, the Board approved the declaration of a quarterly dividend of $0.77 per share of Moody’s common stock, payable on March 17, 2023 to shareholders of record at the close of business on February 24, 2023. The continued payment of dividends at the rate noted above, or at all, is subject to the discretion of the Board. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS The Company has operating leases, substantially all of which relate to the lease of office space. The Company's leases 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 from one The following table presents the components of the Company’s lease cost: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 102 $ 98 $ 96 Sublease income (7) (6) (5) Variable lease cost 20 19 19 Total lease cost $ 115 $ 111 $ 110 During 2022, the Company recorded $23 million of ROU Asset impairment charges related to the exit of certain real estate leases. The impairment charges were recorded within Restructuring expense on the consolidated statement of operations. Refer to Note 11 for further details. The following tables present other information related to the Company’s operating leases: Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 118 $ 113 $ 108 Right-of-use assets obtained in exchange for new operating lease liabilities $ 35 $ 137 $ 36 Year Ended December 31, 2022 2021 2020 Weighted-average remaining lease term (in years) 4.9 5.6 6.0 Weighted-average discount rate applied to operating leases 3.1 % 3.1 % 3.6 % The following table presents a maturity analysis of the future minimum lease payments included within the Company’s operating lease liabilities at December 31, 2022: Year Ending December 31, Operating Leases 2023 $ 119 2024 111 2025 98 2026 79 2027 64 Thereafter 40 Total lease payments (undiscounted) 511 Less: Interest 37 Present value of lease liabilities: $ 474 Lease liabilities - current $ 106 Lease liabilities - noncurrent $ 368 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Given the nature of the Company's activities, Moody’s and its subsidiaries are subject to legal and tax proceedings, governmental, regulatory and legislative investigations, subpoenas and other inquiries, and claims and litigation by governmental and private parties that are based on ratings assigned by MIS or that are otherwise incidental to the Company’s business. Moody’s and MIS also are subject to periodic reviews, inspections, examinations and investigations by regulators in the U.S. and other jurisdictions, any of which may result in claims, legal proceedings, assessments, fines, penalties or restrictions on business activities. Moody’s also is subject to ongoing tax audits as addressed in Note 17 to the consolidated financial statements. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, the Company records liabilities in the consolidated financial statements when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In instances when a loss is reasonably possible but uncertainties exist related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if material. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. Moody’s also discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. In view of the inherent difficulty of assessing the potential outcome of legal proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation and similar matters and contingencies, particularly when the claimants seek large or indeterminate damages or assert novel legal theories or the matters involve a large number of parties, the Company often cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also may be unable to predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition and to accrue for and disclose such matters as and when required. However, because such matters are inherently unpredictable and unfavorable developments or resolutions can occur, the ultimate outcome of such matters, including the amount of any loss, may differ from those estimates. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company is organized into two operating segments: MIS and MA and accordingly, the Company reports in two reportable segments: MIS and MA. The MIS segment consists of five LOBs. The CFG, SFG, FIG and PPIF 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 3 for further details on the components of the Company’s revenue. Year Ended December 31, 2022 2021 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Total external revenue $ 2,699 $ 2,769 $ — $ 5,468 $ 3,812 $ 2,406 $ — $ 6,218 Intersegment revenue 174 8 (182) — 165 7 (172) — Revenue 2,873 2,777 (182) 5,468 3,977 2,413 (172) 6,218 Operating, SG&A 1,385 1,937 (182) 3,140 1,503 1,786 (172) 3,117 Adjusted Operating Income 1,488 840 — 2,328 2,474 627 — 3,101 Add: Depreciation and amortization 81 250 — 331 72 185 — 257 Restructuring 65 49 — 114 (1) 1 — — Operating Income $ 1,883 $ 2,844 Year Ended December 31, 2020 MIS MA Eliminations Consolidated Total external revenue $ 3,292 $ 2,079 $ — $ 5,371 Intersegment revenue 148 7 (155) — Revenue 3,440 2,086 (155) 5,371 Operating, SG&A 1,387 1,472 (155) 2,704 Adjusted Operating Income 2,053 614 — 2,667 Add: Depreciation and amortization 70 150 — 220 Restructuring 19 31 — 50 Loss pursuant to the divestiture of MAKS — 9 — 9 Operating income $ 2,388 The table below shows cumulative restructuring expense incurred through December 31, 2022 by reportable segment. MIS MA Total 2018 Restructuring Program $ 60 $ 43 $ 103 2020 Real Estate Rationalization Restructuring Program 22 16 38 2020 MA Strategic Reorganization Restructuring Program — 19 19 2022 - 2023 Geolocation Restructuring Program 64 49 113 The costs expected to be incurred related to the 2022 - 2023 Geolocation Restructuring Program are $70 million - $90 million for the MIS segment and $65 million - $80 million for the MA segment. The restructuring programs are more fully discussed in Note 11. CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA Year Ended December 31, 2022 2021 2020 Revenue: U.S. $ 2,873 $ 3,383 $ 2,955 Non-U.S.: EMEA 1,682 1,885 1,545 Asia-Pacific 556 603 571 Americas 357 347 300 Total Non-U.S. 2,595 2,835 2,416 Total $ 5,468 $ 6,218 $ 5,371 Long-lived assets at December 31: U.S. $ 4,408 $ 4,449 $ 2,162 Non-U.S. 4,489 4,802 4,889 Total $ 8,897 $ 9,251 $ 7,051 |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS Accounts receivable allowances represent estimates for uncollectible accounts. The valuation allowance on deferred tax assets relates to foreign net operating tax losses for which realization is uncertain. Below is a summary of activity: Year Ended December 31, Balance at Beginning of the Year Adoption of Credit Losses Accounting Standard Charged to costs and expenses Deductions (1) Balance at End of the Year 2022 Allowances for credit losses $ (32) $ — $ (25) $ 17 $ (40) Deferred tax assets—valuation allowance $ (18) $ — $ (4) $ 1 $ (21) 2021 Allowances for credit losses $ (34) $ — $ (13) $ 15 $ (32) Deferred tax assets—valuation allowance $ (15) $ — $ (4) $ 1 $ (18) 2020 Allowances for credit losses $ (20) $ (2) $ (26) $ 14 $ (34) Deferred tax assets—valuation allowance $ (9) $ — $ (6) $ — $ (15) (1) Reflects write-off of uncollectible accounts receivable or expiration of foreign net operating tax losses. |
OTHER NON-OPERATING (EXPENSE) I
OTHER NON-OPERATING (EXPENSE) INCOME, NET | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER NON-OPERATING (EXPENSE) INCOME, NET | OTHER NON-OPERATING INCOME, NET The following table summarizes the components of other non-operating income, net as presented in the consolidated statements of operations: Year Ended December 31, 2022 2021 2020 FX (loss) gain (1) $ (10) $ (1) $ 2 Purchase price hedge loss (2) — (13) — Net periodic pension costs—other components 24 9 13 Income from investments in non-consolidated affiliates (3) 17 60 6 Other 7 27 25 Total $ 38 $ 82 $ 46 (1) The amount for the year ended December 31, 2022 includes FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia. (2) The amount for the year ended December 31, 2021 reflects a loss on a forward contract to hedge a portion of the RMS British pound-denominated purchase price. (3) The amount for the year ended December 31, 2021 includes a $36 million non-cash gain relating to the exchange of Moody’s minority investment in VisibleRisk (accounted for under the equity method) for shares of BitSight, a cybersecurity ratings company. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Adoption of New Accounting Standards in 2022 In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope,” which clarified the scope and application of the original guidance, ASU No. 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU No. 2020-04"), issued in March 2020 (codified into ASC Topic 848 "Reference Rate Reform"). ASU No. 2020-04 provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform—Deferral of the Sunset Date of Topic 848," which deferred the sunset date of Topic 848 to December 31, 2024. These ASU's were effective upon issuance, and the Company may elect to apply the amendments prospectively through December 31, 2024 as the transition from LIBOR is completed. As of December 31, 2022, the Company has interest rate swaps designated as fair value hedges and cross currency swaps designated as net investment hedges referencing three-month or six-month USD LIBOR with aggregate notional amounts as disclosed in Note 7. For derivative instruments that will be outstanding at the transition date, the Company intends to modify the contractual terms of the instruments to replace LIBOR with another reference rate, such as SOFR. Pursuant to the modification of the contractual terms of these instruments, the Company intends to utilize the various optional expedients set forth in ASC Topic 848 relating to derivative instruments used in hedging relationships. 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. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include those of Moody’s Corporation and its majority- and wholly-owned subsidiaries. The effects of all intercompany transactions have been eliminated. Investments in companies for which the Company has significant influence over operating and financial policies but not a controlling interest are accounted for on an equity basis whereby the Company records its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net and any dividends received reduce the carrying amount of the investment. Equity investments without a readily determinable fair value for which the Company does not have significant influence are accounted for under the ASC 321 measurement alternative; these investments are recorded at initial cost, less impairment, adjusted upward or downward for any observable price changes in similar investments. The Company applies the guidelines set forth in Topic 810 of the ASC in assessing its interests in variable interest entities to decide whether to consolidate an entity. The Company has reviewed the potential variable interest entities and determined that there are no consolidation requirements under Topic 810 of the ASC. The Company consolidates its ICRA subsidiaries on a three month lag. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents principally consist of investments in money market deposit accounts as well as certificates of deposit with maturities of three months or less when purchased. |
Short-term Investments | Short-term Investments Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next 12 months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives. Expenditures for maintenance and repairs that do not extend the economic useful life of the related assets are charged to expense as incurred. |
Computer Software Developed or Obtained for Internal Use | Computer Software Developed or Obtained for Internal Use The Company capitalizes costs related to software developed or obtained for internal use. These assets, included in property and equipment in the consolidated balance sheets, relate to the Company’s financial, website and other systems. Such costs generally consist of direct costs for third-party license fees, professional services provided by third parties and employee compensation, in each case incurred either during the application development stage or in connection with upgrades and enhancements that increase functionality. Such costs are depreciated over their estimated useful lives on a straight-line basis. Costs incurred during the preliminary project stage of development as well as maintenance costs are expensed as incurred. |
Goodwill and Other Acquired Intangible Assets | Goodwill and Other Acquired Intangible Assets Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment (i.e., MIS and MA), or one level below an operating segment (i.e., a component of an operating segment), annually as of July 31 or more frequently if impairment indicators arise in accordance with ASC Topic 350. The Company evaluates the recoverability of goodwill using a two-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made based on the qualitative factors that an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be quantitatively determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company will record a goodwill impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. The Company evaluates its reporting units on an annual basis, or more frequently if there are changes in the reporting structure of the Company due to acquisitions, reporting unit realignments or if there are indicators of potential impairment. For the reporting units where the Company is consistently able to conclude that no impairment exists using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years. Goodwill is assigned to a reporting unit at the date when an acquisition is integrated into one of the established reporting units, and is based on which reporting unit is expected to benefit from the synergies of the acquisition. For purposes of assessing the recoverability of goodwill, the Company has four reporting units: two within the Company’s ratings business (one for the ICRA business and one that encompasses all of Moody’s other ratings operations) and two reporting units within MA consisting of businesses that offer: i) data and data-driven analytical solutions; and ii) risk-management software, workflow and CRE solutions. |
Impairment of long-lived assets and definite-lived intangible assets | Impairment of long-lived assets and definite-lived intangible assets Long-lived assets (including ROU Assets) and amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Stock-Based Compensation | Stock-Based Compensation The Company records compensation expense over the requisite service period for all share-based payment award transactions granted to employees based on the fair value of the equity instrument at the time of grant. This includes shares issued under stock option and restricted stock plans. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Based on the Company’s risk management policy, the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values on a gross basis. The changes in the value of derivatives that qualify as fair value hedges are recorded in the same income statement line item in earnings in which the corresponding adjustment to the carrying value of the hedged item is presented. The entire change in the fair value of derivatives that qualify as cash flow hedges is recorded to OCI and such amounts are reclassified from AOCI(L) to the same income statement line in earnings in the same period or periods during which the hedged transaction affects income. The Company assesses effectiveness for net investment hedges using the spot-method. The entire change in the fair value of derivatives that qualify as net investment hedges is initially recorded to OCI. Those changes in fair value attributable to components included in the assessment of hedge effectiveness in a net investment hedge are recorded in the currency translation adjustment component of OCI and remain in AOCI(L) until the period in which the hedged item affects earnings. Those changes in fair value attributable to components excluded from the assessment of hedge effectiveness in a net investment hedge are recorded to OCI and amortized to earnings using a systematic and rational method over the duration of the hedge. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur. |
Revenue Recognition and Costs to Obtain or Fulfill a Contract with a Customer | Revenue Recognition and Costs to Obtain or Fulfill a Contract with a Customer Revenue recognition: Revenue is recognized when control of promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. When contracts with customers contain multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to each distinct performance obligation on a relative SSP basis. The Company determines the SSP by using the price charged for a deliverable when sold separately or uses management’s best estimate of SSP for goods or services not sold separately using estimation techniques that maximize observable data points, including: internal factors relevant to its pricing practices such as costs and margin objectives; standalone sales prices of similar products; pricing policies; percentage of the fee charged for a primary product or service relative to a related product or service; and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trends. Sales, usage-based, value added and other taxes are excluded from revenues. MIS Revenue In the MIS segment, revenue arrangements with multiple elements are generally comprised of two distinct performance obligations, a rating and the related monitoring service. Revenue attributed to ratings of issued securities is generally recognized when the rating is delivered to the issuer. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of certain structured finance products, primarily CMBS, issuers can elect to pay all of the annual monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities. MIS arrangements generally have standard contractual terms for which the stated payments are due at conclusion of the ratings process for ratings and either upfront or in arrears for monitoring services; and are signed by customers either on a per issue basis or at the beginning of the relationship with the customer. In situations when customer fees for an arrangement may be variable, the Company estimates the variable consideration at inception using the expected value method based on analysis of similar contracts in the same line of business, which is constrained based on the Company’s assessment of the realization of the adjustment amount. The Company allocates the transaction price within arrangements that include multiple performance obligations based upon the relative SSP of each service. The SSP for both rating and monitoring services is generally based upon observable selling prices where the rating or monitoring service is sold separately to similar customers. MA Revenue In the MA segment, products and services offered by the Company include hosted research and data subscriptions, installed and hosted software subscriptions, perpetual installed software licenses and related maintenance, or PCS, and professional services. Subscription and PCS contracts are generally invoiced in advance of the contractual coverage period, which is principally one year, but can range from 3-5 years. Perpetual software licenses are generally invoiced upon delivery and professional services are invoiced as those services are provided. Payment terms and conditions vary by contract type, but primarily include a requirement of payment within 30 to 60 days. Revenue from research, data and other hosted subscriptions is recognized ratably over the related subscription period as MA's performance obligation to provide access to these products is progressively fulfilled over the stated term of the contract. A large portion of these services are invoiced in the months of November, December and January. Revenue from the sale of a software license, when considered distinct from the related software implementation services, is generally recognized at the time the product master or first copy is delivered or transferred to the customer. PCS is generally recognized ratably over the contractual period commencing when the software license is fully delivered. Revenue from installed software subscriptions, which includes PCS, is bifurcated into a software license performance obligation and a PCS performance obligation, which follow the patterns of recognition described above. For implementation services and other service projects for which fees are fixed, the Company determined progress towards completion is most accurately measured on a percentage-of-completion basis (input method) as this approach utilizes the most directly observable data points and is therefore used to recognize the related revenue. For implementation services where price varies based on time expended, a time-based measure of progress towards completion of the performance obligation is utilized. Revenue from professional services rendered is generally recognized over time as the services are performed. Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where an arrangement contains multiple performance obligations, the Company accounts for the individual performance obligations separately if they are considered distinct. Revenue is generally allocated to all performance obligations based upon the relative SSP at contract inception. For certain performance obligations, judgment is required to determine the SSP. Revenue is recognized for each performance obligation based upon the conditions for revenue recognition noted above. In the MA segment, customers usually pay a fixed fee for the products and services based on signed contracts. However, accounting for variable consideration is applied mainly for: i) estimates for cancellation rights and price concessions and ii) T&M based services. The Company estimates the variable consideration associated with cancellation rights and price concessions based on the expected amount to be provided to customers and reduces the amount of revenue to be recognized. Costs to Obtain or Fulfill a Contract with a Customer: Costs to obtain a contract with a customer Costs incurred to obtain customer contracts, such as sales commissions, are deferred and recorded within other current assets and other assets when such costs are determined to be incremental to obtaining a contract, would not have been incurred otherwise and the Company expects to recover those costs. These costs are amortized to expense on a systematic basis consistent with the transfer of the products or services to the customer. Depending on the line of business to which the contract relates, this may be based upon the average economic life of the products sold or average period for which services are provided, inclusive of anticipated contract renewals. Determining the estimated economic life of the products sold requires judgment with respect to anticipated future technological changes. Costs to obtain customer contracts are only incurred in the MA segment. Cost to fulfill a contract with a customer Costs incurred to fulfill customer contracts, are deferred and recorded within other current assets and other assets when such costs relate directly to a contract, generate or enhance resources of the Company that will be used in satisfying performance obligations in the future and the Company expects to recover those costs. |
Accounts Receivable Allowances | Accounts Receivable Allowances In order to determine an estimate of expected credit losses, receivables are segmented based on similar risk characteristics including historical credit loss patterns and industry or class of customers to calculate reserve rates. The Company uses an aging method for developing its allowance for credit losses by which receivable balances are stratified based on aging category. A reserve rate is calculated for each aging category which is generally based on historical information, and is adjusted, when necessary, for current conditions (e.g., macroeconomic or industry related) and reasonable and supportable forecasts about the future. The Company also considers customer specific information (e.g., bankruptcy or financial difficulty) when estimating its expected credit losses, as well as the economic environment of the customers, both from an industry and geographic perspective, in evaluating the need for allowances. Expected credit losses are reflected as additions to the accounts receivable allowance. Actual uncollectible account write-offs are recorded against the allowance. |
Leases | Leases The Company has operating leases, which substantially all 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. The Company determines if an arrangement meets the definition of a lease at contract inception. The Company recognizes in its consolidated balance sheet a lease liability and an ROU Asset for all leases with a lease term greater than 12 months. In determining the length of the lease term, the Company utilizes judgment in assessing the likelihood of whether it is reasonably certain that it will exercise an option to extend or early-terminate a lease, if such options are provided in the lease agreement. ROU Assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU Assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As substantially all of the Company’s leases do not provide an implicit interest rate, the Company uses its estimated secured incremental borrowing rates at the lease commencement date in determining the present value of lease payments. These secured incremental borrowing rates are attributable to the currency in which the lease is denominated. At commencement, the Company’s initial measurement of the ROU Asset is calculated as the present value of the remaining lease payments (i.e., lease liability), with additive adjustments reflecting: initial direct costs (e.g., broker commissions) and prepaid lease payments (if any); and reduced by any lease incentives provided by the lessor if: (i) received before lease commencement or (ii) receipt of the lease incentive is contingent upon future events for which the occurrence is both probable and within the Company’s control. Lease expense for minimum operating lease payments is recognized on a straight-line basis over the lease term. This straight-line lease expense represents a single lease cost which is comprised of both an interest accretion component relating to the lease liability and amortization of the ROU Assets. The Company records this single lease cost in operating and SG&A expenses. However, in situations where an operating lease ROU Asset has been impaired, the subsequent amortization of the ROU Asset is then recorded on a straight-line basis over the remaining lease term and is combined with accretion expense on the lease liability to result in single operating lease cost (which subsequent to impairment will no longer follow a straight-line recognition pattern). The Company has lease agreements which include lease and non-lease components. For the Company’s office space leases, the lease components (e.g., fixed rent payments) and non-lease components (e.g., fixed common-area maintenance costs) are combined and accounted for as a single lease component. Variable lease payments (e.g. variable common-area-maintenance costs) are only included in the initial measurement of the lease liability to the extent those payments depend on an index or a rate. Variable lease payments not included in the lease liability are recognized in net income in the period in which the obligation for those payments is incurred. |
Contingencies | Contingencies Moody’s is involved in legal and tax proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, the Company records liabilities in the consolidated financial statements when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In instances when a loss is reasonably possible but uncertainties exist related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if material. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. Moody’s also discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. In view of the inherent difficulty of assessing the potential outcome of legal proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation and similar matters and contingencies, particularly when the claimants seek large or indeterminate damages or assert novel legal theories or the matters involve a large number of parties, the Company often cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also may be unable to predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition and to accrue for and disclose such matters as and when required. However, because such matters are inherently unpredictable and unfavorable developments or resolutions can occur, the ultimate outcome of such matters, including the amount of any loss, may differ from those estimates. |
Operating Expenses | Operating Expenses Operating expenses include costs associated with the development and production of the Company’s products and services and their delivery to customers. These expenses principally include employee compensation and benefits and travel costs that are incurred in connection with these activities. Operating expenses are charged to income as incurred. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses SG&A expenses include such items as compensation and benefits for corporate officers and staff and compensation and other expenses related to sales. They also include items such as office rent, business insurance and professional fees. SG&A expenses are charged to income as incurred. |
Foreign Currency Translation | Foreign Currency Translation For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated into U.S. dollars using end of year exchange rates, and revenue and expenses are translated using average exchange rates for the year. For these foreign operations, currency translation adjustments are recorded to other comprehensive income. |
Comprehensive Income | Comprehensive Income Comprehensive income represents the change in net assets of a business enterprise during a period due to transactions and other events and circumstances from non-owner sources including: foreign currency translation impacts; net actuarial gains and losses and net prior service costs related to pension and other retirement plans; and gains and losses on derivative instruments designated as net investment hedges or cash flow hedges. Comprehensive income items, including cumulative translation adjustments of entities that are less-than-wholly-owned subsidiaries, will be reclassified to noncontrolling interests and thereby, adjusting accumulated other comprehensive income proportionately in accordance with the percentage of ownership interest of the non-controlling shareholder. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes and deferred income taxes reflect the effect of temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes. The Company classifies interest related to unrecognized tax benefits as a component of interest expense in its consolidated statements of operations. Penalties are recognized in other non-operating expenses. For UTPs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. On December 22, 2017, the Tax Act was signed into law, resulting in all previously undistributed foreign earnings being subject to U.S. tax. The Company has provided deferred taxes for those entities whose earnings are not considered indefinitely reinvested. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, and certain short-term investments consisting primarily of certificates of deposit and money market deposits, all of which are short-term in nature and, accordingly, approximate fair value. The Company also invests in mutual funds, which are accounted for as equity securities with readily determinable fair values under ASC Topic 321. The Company measures these investments at fair value with both realized gains and losses and unrealized holding gains and losses for these investments included in net income. Also, the Company uses derivative instruments to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value in the Company’s consolidated balance sheets. Fair value is defined by the ASC 820 as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset. The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows: Level 1: quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement; Level 2: inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk principally consist of cash and cash equivalents, short-term investments, trade receivables and derivatives. For cash and cash equivalents, short-term investments and derivatives, the Company manages its credit exposure by limiting the amount of counterparty risk with any particular financial institution; limits are assigned to each counterparty based on perceived quality of credit, and are monitored daily. Cash equivalents are held among various money market deposit accounts and certificates of deposits as of December 31, 2022 and 2021. Short-term investments primarily consist of certificates of deposit as of December 31, 2022 and 2021. Derivatives primarily consist of foreign exchange forwards or swap contracts (interest rate swaps and cross-currency swaps) as of December 31, 2022 and 2021. For trade receivables, no customer accounted for 10% or more of accounts receivable at December 31, 2022 or 2021. |
Earnings per Share of Common Stock | Earnings per Share of Common Stock Basic shares outstanding is calculated based on the weighted average number of shares of common stock outstanding during the reporting period. Diluted shares outstanding is calculated giving effect to all potentially dilutive common shares, assuming that such shares were outstanding and dilutive during the reporting period. |
Pension and Other Retirement Benefits | Pension and Other Retirement Benefits Moody’s maintains various noncontributory DBPPs as well as other contributory and noncontributory retirement plans. The expense and assets/liabilities that the Company reports for its pension and other retirement benefits are dependent on many assumptions concerning the outcome of future events and circumstances. These assumptions represent the Company’s best estimates and may vary by plan. The differences between the assumptions for the expected long-term rate of return on plan assets and actual experience is spread over a five-year period to the market-related value of plan assets, which is used in determining the expected return on assets component of annual pension expense. All other actuarial gains and losses are generally deferred and amortized over the estimated average future working life of active plan participants. The Company recognizes as an asset or liability in its consolidated balance sheet the funded status of its defined benefit retirement plans, measured on a plan-by-plan basis. Changes in the funded status due to actuarial gains/losses are recorded as part of other comprehensive income during the period the changes occur. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by LOB: Year Ended December 31, 2022 2021 2020 MIS: Corporate finance (CFG) Investment-grade $ 294 $ 439 $ 636 High-yield 108 411 352 Bank loans 275 606 287 Other accounts (CFG) (1) 592 631 582 Total CFG 1,269 2,087 1,857 Structured finance (SFG) Asset-backed securities 116 118 98 RMBS 106 123 96 CMBS 98 102 61 Structured credit 140 215 105 Other accounts (SFG) 2 2 2 Total SFG 462 560 362 Financial institutions (FIG) Banking 337 411 355 Insurance 113 145 137 Managed investments 28 36 28 Other accounts (FIG) 13 10 10 Total FIG 491 602 530 Public, project and infrastructure finance (PPIF) Public finance / sovereign 197 244 250 Project and infrastructure 234 277 246 Total PPIF 431 521 496 Total ratings revenue 2,653 3,770 3,245 MIS Other 46 42 47 Total external revenue 2,699 3,812 3,292 Intersegment royalty 174 165 148 Total MIS 2,873 3,977 3,440 MA: Decision Solutions 1,324 1,011 835 Research and Insights 733 697 650 Data and Information 712 698 594 Total external revenue 2,769 2,406 2,079 Intersegment revenue 8 7 7 Total MA 2,777 2,413 2,086 Eliminations (182) (172) (155) Total MCO $ 5,468 $ 6,218 $ 5,371 (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: Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 U.S. Non-U.S. Total U.S. Non-U.S. Total U.S. Non-U.S. Total MIS: Corporate finance $ 832 $ 437 $ 1,269 $ 1,384 $ 703 $ 2,087 $ 1,291 $ 566 $ 1,857 Structured finance 308 154 462 364 196 560 214 148 362 Financial institutions 223 268 491 289 313 602 250 280 530 Public, project and infrastructure finance 266 165 431 304 217 521 311 185 496 Total ratings revenue 1,629 1,024 2,653 2,341 1,429 3,770 2,066 1,179 3,245 MIS Other 5 41 46 3 39 42 2 45 47 Total MIS 1,634 1,065 2,699 2,344 1,468 3,812 2,068 1,224 3,292 MA: Decision Solutions 584 740 1,324 436 575 1,011 340 495 835 Research and Insights 405 328 733 377 320 697 363 287 650 Data and Information 250 462 712 226 472 698 184 410 594 Total MA 1,239 1,530 2,769 1,039 1,367 2,406 887 1,192 2,079 Total MCO $ 2,873 $ 2,595 $ 5,468 $ 3,383 $ 2,835 $ 6,218 $ 2,955 $ 2,416 $ 5,371 The following table presents the Company's reportable segment revenues disaggregated by segment and geographic region: Year Ended December 31, 2022 2021 2020 MIS: U.S. $ 1,634 $ 2,344 $ 2,068 Non-U.S.: EMEA 648 930 727 Asia-Pacific 271 357 345 Americas 146 181 152 Total Non-U.S. 1,065 1,468 1,224 Total MIS 2,699 3,812 3,292 MA: U.S. 1,239 1,039 887 Non-U.S.: EMEA 1,034 955 818 Asia-Pacific 285 246 226 Americas 211 166 148 Total Non-U.S. 1,530 1,367 1,192 Total MA 2,769 2,406 2,079 Total MCO $ 5,468 $ 6,218 $ 5,371 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. Year Ended December 31, 2022 2021 2020 Transaction Recurring Total Transaction Recurring Total Transaction Recurring Total Corporate Finance $ 772 $ 497 $ 1,269 $ 1,600 $ 487 $ 2,087 $ 1,401 $ 456 $ 1,857 61 % 39 % 100 % 77 % 23 % 100 % 75 % 25 % 100 % Structured Finance $ 262 $ 200 $ 462 $ 362 $ 198 $ 560 $ 175 $ 187 $ 362 57 % 43 % 100 % 65 % 35 % 100 % 48 % 52 % 100 % Financial Institutions $ 211 $ 280 $ 491 $ 320 $ 282 $ 602 $ 265 $ 265 $ 530 43 % 57 % 100 % 53 % 47 % 100 % 50 % 50 % 100 % Public, Project and Infrastructure Finance $ 263 $ 168 $ 431 $ 354 $ 167 $ 521 $ 337 $ 159 $ 496 61 % 39 % 100 % 68 % 32 % 100 % 68 % 32 % 100 % MIS Other $ 4 $ 42 $ 46 $ 4 $ 38 $ 42 $ 4 $ 43 $ 47 9 % 91 % 100 % 10 % 90 % 100 % 9 % 91 % 100 % Total MIS $ 1,512 $ 1,187 $ 2,699 $ 2,640 $ 1,172 $ 3,812 $ 2,182 $ 1,110 $ 3,292 56 % 44 % 100 % 69 % 31 % 100 % 66 % 34 % 100 % Decision Solutions $ 164 $ 1,160 $ 1,324 $ 158 $ 853 $ 1,011 $ 185 $ 650 $ 835 12 % 88 % 100 % 16 % 84 % 100 % 22 % 78 % 100 % Research and Insights $ 6 $ 727 $ 733 $ 8 $ 689 $ 697 $ 8 $ 642 $ 650 1 % 99 % 100 % 1 % 99 % 100 % 1 % 99 % 100 % Data and Information $ — $ 712 $ 712 $ 4 $ 694 $ 698 $ 4 $ 590 $ 594 — % 100 % 100 % 1 % 99 % 100 % 1 % 99 % 100 % Total MA $ 170 $ 2,599 $ 2,769 $ 170 $ 2,236 $ 2,406 $ 197 $ 1,882 $ 2,079 6 % 94 % 100 % 7 % 93 % 100 % 9 % 91 % 100 % Total Moody’s Corporation $ 1,682 $ 3,786 $ 5,468 $ 2,810 $ 3,408 $ 6,218 $ 2,379 $ 2,992 $ 5,371 31 % 69 % 100 % 45 % 55 % 100 % 44 % 56 % 100 % The following table presents the timing of revenue recognition: Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 MIS MA Total MIS MA Total MIS MA Total Revenue recognized at a point in time $ 1,512 $ 97 $ 1,609 $ 2,640 $ 101 $ 2,741 $ 2,182 $ 121 $ 2,303 Revenue recognized over time 1,187 2,672 3,859 1,172 2,305 3,477 1,110 1,958 3,068 Total $ 2,699 $ 2,769 $ 5,468 $ 3,812 $ 2,406 $ 6,218 $ 3,292 $ 2,079 $ 5,371 |
Schedule of Changes in the Deferred Revenue Balances | Significant changes in the deferred revenue balances during the year ended December 31, 2022 are as follows: Year Ended December 31, 2022 MIS MA Total Balance at December 31, 2021 $ 296 $ 1,039 $ 1,335 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (210) (996) (1,206) Increases due to amounts billable excluding amounts recognized as revenue during the period 202 1,018 1,220 Increases due to acquisitions during the period — 1 1 Effect of exchange rate changes (10) (7) (17) Total changes in deferred revenue (18) 16 (2) Balance at December 31, 2022 $ 278 $ 1,055 $ 1,333 Deferred revenue - current $ 205 $ 1,053 $ 1,258 Deferred revenue - noncurrent $ 73 $ 2 $ 75 Significant changes in the deferred revenue balances during the year ended December 31, 2021 are as follows: Year Ended December 31, 2021 MIS MA Total Balance at December 31, 2020 $ 313 $ 874 $ 1,187 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (220) (810) (1,030) Increases due to amounts billable excluding amounts recognized as revenue during the period 207 884 1,091 Increases due to acquisitions during the period — 94 94 Effect of exchange rate changes (4) (3) (7) Total changes in deferred revenue (17) 165 148 Balance at December 31, 2021 $ 296 $ 1,039 $ 1,335 Deferred revenue—current $ 214 $ 1,035 $ 1,249 Deferred revenue—noncurrent $ 82 $ 4 $ 86 Significant changes in the deferred revenue balances during the year ended December 31, 2020 are as follows: Year Ended December 31, 2020 MIS MA Total Balance at December 31, 2019 $ 322 $ 840 $ 1,162 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (229) (800) (1,029) Increases due to amounts billable excluding amounts recognized as revenue during the period 215 792 1,007 Increases due to acquisitions during the period — 24 24 Effect of exchange rate changes 5 18 23 Total changes in deferred revenue (9) 34 25 Balance at December 31, 2020 $ 313 $ 874 $ 1,187 Deferred revenue—current $ 216 $ 873 $ 1,089 Deferred revenue—noncurrent $ 97 $ 1 $ 98 |
Capitalized Contract Cost | MA Costs to Obtain a Contract with a Customer As of December 31, 2022 2021 Capitalized costs to obtain sales contracts $ 232 $ 183 Year ended December 31, 2022 2021 2020 Amortization of capitalized costs to obtain sales contracts $ 80 $ 60 $ 59 MIS and MA Costs to Fulfill a Contract with a Customer As of December 31, 2022 As of December 31, 2021 MIS MA Total MIS MA Total Capitalized costs to fulfill sales contracts $ 12 $ 33 $ 45 $ 14 $ 44 $ 58 Year Ended Year Ended Year Ended MIS MA Total MIS MA Total MIS MA Total Amortization of capitalized costs to fulfill sales contracts $ 54 $ 69 $ 123 $ 48 $ 76 $ 124 $ 47 $ 66 $ 113 |
RECONCILIATION OF WEIGHTED AV_2
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic to Diluted Shares Outstanding | Below is a reconciliation of basic to diluted shares outstanding: Year Ended December 31, 2022 2021 2020 Basic 183.9 186.4 187.6 Dilutive effect of shares issuable under stock-based compensation plans 0.8 1.5 1.7 Diluted 184.7 187.9 189.3 Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above 0.5 0.2 0.2 |
CASH EQUIVALENTS AND INVESTME_2
CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | The table below provides additional information on the Company’s cash equivalents and investments: As of December 31, 2022 Cost Gross Unrealized Gains Fair Value Balance sheet location Cash and cash equivalents Short-term investments Other assets Certificates of deposit and money market deposit accounts (1) $ 914 $ — $ 914 $ 808 $ 90 $ 16 Mutual funds $ 71 $ — $ 71 $ — $ — $ 71 As of December 31, 2021 Cost Gross Unrealized Gains Fair Value Balance sheet location Cash and cash equivalents Short-term investments Other assets Certificates of deposit and money market deposit accounts (1) $ 691 $ — $ 691 $ 584 $ 91 $ 16 Mutual funds $ 65 $ 8 $ 73 $ — $ — $ 73 (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 December 31, 2022 and at December 31, 2021. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 months to 24 months at December 31, 2022 and 13 months to 29 months at December 31, 2021. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes the Company’s interest rate swaps designated as fair value hedges: Nature of Swap Notional Amount Floating Interest Rate Hedged Item 2022 2021 2017 Senior Notes due 2023 Pay Floating/Receive Fixed $ — $ 250 3-month LIBOR 2017 Senior Notes due 2028 Pay Floating/Receive Fixed $ 500 $ 500 3-month LIBOR 2020 Senior Notes due 2025 Pay Floating/Receive Fixed $ 300 $ 300 6-month LIBOR 2014 Senior Notes due 2044 Pay Floating/Receive Fixed $ 300 $ 300 3-month LIBOR 2018 Senior Notes due 2048 Pay Floating/Receive Fixed $ 300 $ 300 3-month LIBOR 2018 Senior Notes due 2029 (1) Pay Floating/Receive Fixed $ 400 $ — SOFR 2022 Senior Notes due 2052 (1) Pay Floating/Receive Fixed $ 500 $ — SOFR 2022 Senior Notes due 2032 (1) Pay Floating/Receive Fixed $ 250 $ — SOFR Total Total $ 2,550 $ 1,650 (1) Executed in 2022. December 31, 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 (Expense) Year Ended December 31, 2022 2021 2020 Interest expense, net $ (231) $ (171) $ (205) Descriptions Location on Consolidated Statements of Operations Net interest settlements and accruals on interest rate swaps Interest expense, net $ (8) $ 23 $ 19 Fair value changes on interest rate swaps Interest expense, net $ (228) $ (60) $ 47 Fair value changes on hedged debt Interest expense, net $ 228 $ 60 $ (47) |
Schedule of Net Investment Hedges, Notional Amount That Will Be Settled At Expiry | As of December 31, 2022, these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company: Year 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 | The following table provides information on the gains/(losses) on the Company’s net investment and cash flow hedges: Amount of Gain/(Loss) Amount of Gain/(Loss) Gain/(Loss) Recognized in Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships Year Ended December 31, Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 2022 2021 2020 FX forward contracts $ — $ 18 $ (14) $ — $ 1 $ — $ — $ — $ — Cross currency swaps 99 143 (165) — — — 56 35 50 Long-term debt 65 81 (95) — — — — — — Total net investment hedges $ 164 $ 242 $ (274) $ — $ 1 $ — $ 56 $ 35 $ 50 Derivatives in Cash Flow Hedging Relationships Interest rate contracts — — (51) (2) (2) (2) — — — Total cash flow hedges — — (51) (2) (2) (2) — — — Total $ 164 $ 242 $ (325) $ (2) $ (1) $ (2) $ 56 $ 35 $ 50 |
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 December 31, 2022 December 31, 2021 Net investment hedges Cross currency swaps $ 118 $ 19 FX forwards 29 29 Long-term debt 38 (27) Total net investment hedges 185 21 Cash flow hedges Interest rate contracts (47) (49) Cross-currency swap 2 2 Total cash flow hedges (45) (47) Total net (loss) gain in AOCL $ 140 $ (26) The following tables show changes in AOCL by component (net of tax): Year Ended December 31, 2022 Pension and Gains/ (Losses) on Cash Flow Hedges Foreign Net Investment Hedges Total Balance at December 31, 2021 $ (49) $ (47) $ (335) $ 21 $ (410) Other comprehensive income/(loss) before reclassifications — — (421) 164 (257) Amounts reclassified from AOCL 2 2 20 — 24 Other comprehensive income/(loss) 2 2 (401) 164 (233) Balance at December 31, 2022 $ (47) $ (45) $ (736) $ 185 $ (643) Year Ended December 31, 2021 Pension and Gains/ (Losses) on Cash Flow Hedges Foreign Net Investment Hedges Total Balance at December 31, 2020 $ (118) $ (49) $ (45) $ (220) $ (432) Other comprehensive income/(loss) before reclassifications 55 — (290) 242 7 Amounts reclassified from AOCL 14 2 — (1) 15 Other comprehensive income/(loss) 69 2 (290) 241 22 Balance at December 31, 2021 $ (49) $ (47) $ (335) $ 21 $ (410) Year Ended December 31, 2020 Pension and Gains/ (Losses) on Cash Flow Hedges Foreign Net Investment Hedges Total Balance at December 31, 2019 $ (92) $ — $ (401) $ 54 $ (439) Other comprehensive income/(loss) before reclassifications (32) (51) 356 (273) — Amounts reclassified from AOCL 6 2 — (1) 7 Other comprehensive income/(loss) (26) (49) 356 (274) 7 Balance at December 31, 2020 $ (118) $ (49) $ (45) $ (220) $ (432) |
Summary of Notional Amounts of Outstanding Derivative Positions | The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: December 31, 2022 December 31, 2021 Notional Amount of Currency Pair: Sell Buy Sell Buy Contracts to sell USD for GBP $ 170 £ 146 $ 126 £ 92 Contracts to sell USD for Japanese yen $ 24 ¥ 3,500 $ 22 ¥ 2,500 Contracts to sell USD for Canadian dollars $ 87 C$ 120 $ 120 C$ 150 Contracts to sell USD for Singapore dollars $ 50 S$ 70 $ 67 S$ 90 Contracts to sell USD for euros $ 116 € 115 $ 364 € 315 Contracts to sell USD for Russian ruble $ — ₽ — $ 16 ₽ 1,200 Contracts to sell USD for Indian rupee $ 19 ₹ 1,600 $ 7 ₹ 500 Contracts to sell GBP for USD £ — $ — £ 172 $ 231 Contracts to sell euros for USD € 85 $ 89 € — $ — NOTE: € = euro, £ = British pound, S$ = Singapore dollar, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar, ₽ = 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 gain (loss) on the Company’s derivatives which are not designated as hedging instruments: Year Ended December 31, Derivatives Not Designated as Accounting Hedges Location on Statement of Operations 2022 2021 2020 FX forwards Other non-operating expense, net $ (72) $ (27) $ 41 Foreign exchange forwards relating to RMS acquisition (1) Other non-operating income, net $ — $ (13) $ — (1) The Company entered into forward contracts to sell $1,675 million for £1,200 million 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 instruments 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 December 31, 2022 December 31, 2021 Assets: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other assets $ 27 $ 53 Interest rate swaps designated as fair value hedges Other assets — 13 Total derivatives designated as accounting hedges 27 66 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Other current assets 19 1 Total assets $ 46 $ 67 Liabilities: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other liabilities 78 17 Interest rate swaps designated as fair value hedges Other liabilities 239 23 Total derivatives designated as accounting hedges 317 40 Non-derivative instruments designated as accounting hedge: Long-term debt designated as net investment hedge Long-term debt 1,334 1,421 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Accounts payable and accrued liabilities 2 12 Total liabilities $ 1,653 $ 1,473 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consisted of: December 31, 2022 2021 Office and computer equipment (3 - 10 year estimated useful life) $ 339 $ 300 Office furniture and fixtures (3 - 10 year estimated useful life) 54 52 Internal-use computer software (1 - 10 year estimated useful life) 995 771 Leasehold improvements and building (1 - 20 year estimated useful life) 237 234 Total property and equipment, at cost 1,625 1,357 Less: accumulated depreciation and amortization (1,123) (1,010) Total property and equipment, net $ 502 $ 347 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The table below details the total consideration relating to the acquisition: Cash paid at closing $ 157 Additional consideration paid to sellers in 2022 (1) 1 Total consideration $ 158 (1) Represents additional consideration paid to the sellers following finalization of customary post-closing completion adjustments. The table below details the total consideration relating to the acquisition: Cash paid at closing $ 1,922 Replacement equity compensation awards 5 Total consideration $ 1,927 The table below details the total consideration relating to the acquisition: Cash paid at closing $ 138 Additional consideration paid to sellers in 2021 (1) 1 Total consideration $ 139 (1) Represents additional consideration paid to the sellers following finalization of customary post-closing completion adjustments. The table below details the total consideration relating to the acquisition: Cash paid at closing $ 700 Additional consideration paid to sellers in 2020 (1) 2 Total consideration $ 702 (1) Represents additional consideration paid to the sellers following finalization of customary post-closing completion adjustments. |
Summary of Fair Values of 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 $ 10 Accounts receivable 1 Intangible assets: Product technology (5 year useful life) $ 14 Customer relationships (16 year useful life) 8 Trade name (4 year useful life) 1 Total intangible assets (9 year weighted average useful life) 23 Goodwill 138 Liabilities: Accounts payable and accrued liabilities $ (7) Deferred revenue (1) Deferred tax liabilities (6) Total liabilities (14) Net assets acquired $ 158 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 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. Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: Current assets $ 7 Intangible assets: Database (10 year useful life) $ 38 Customer relationships (18 year useful life) 9 Product technology (8 year useful life) 9 Trade name (5 year useful life) 1 Total intangible assets (11 year weighted average useful life) 57 Goodwill (1) 79 Deferred tax assets (1) 16 Other assets 2 Liabilities: Accounts payable and accrued liabilities $ (1) Deferred revenue (4) Deferred tax liabilities (15) Other liabilities (2) Total liabilities (22) Net assets acquired $ 139 Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: (Amounts in millions) Current assets $ 24 Intangible assets: Customer relationships (25 year useful life) $ 174 Database (10 year useful life) 86 Product technology (4 year useful life) 17 Trade name (3 year useful life) 3 Total intangible assets (19 year weighted average life) 280 Goodwill 494 Other assets 2 Liabilities: Accounts payable and accrued liabilities $ (5) Deferred revenue (20) Deferred tax liabilities (71) Other liabilities (2) Total liabilities (98) Net assets acquired $ 702 The following table summarizes the aggregate fair value of the assets acquired and liabilities assumed as of the respective closing dates for each acquisition. (Amounts in millions) Current assets $ 5 Intangible assets: Customer relationships (18 year useful life) $ 47 Product technology (8 year useful life) 23 Database (10 year useful life) 8 Trade name (14 year useful life) 4 Total intangible assets (14 year weighted average life) 82 Goodwill 131 Other assets 3 Liabilities: Current liabilities $ (8) Long-term liabilities (8) Total liabilities (16) Net assets acquired $ 205 |
BvD Pro Forma Information | Supplemental information on an unaudited pro forma basis is presented below for the twelve months ended December 31, 2021 and 2020 as if the acquisition of RMS occurred on January 1, 2020. The pro forma financial information is presented for comparative purposes only, 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. Year Ended December 31, Unaudited 2021 2020 Pro forma Revenue $ 6,463 $ 5,667 Pro forma Net Income attributable to Moody's $ 2,244 $ 1,666 |
GOODWILL AND OTHER ACQUIRED I_2
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Activity in Goodwill | The following tables summarize the activity in goodwill: Year Ended December 31, 2022 MIS MA Consolidated Gross Accumulated Net Gross Accumulated Net Gross Accumulated Net Balance at beginning of year $ 396 $ — $ 396 $ 5,615 $ (12) $ 5,603 $ 6,011 $ (12) $ 5,999 Additions/ adjustments (1) 4 — 4 88 — 88 92 — 92 Foreign currency translation adjustments (23) — (23) (229) — (229) (252) — (252) Ending Balance $ 377 $ — $ 377 $ 5,474 $ (12) $ 5,462 $ 5,851 $ (12) $ 5,839 Year Ended December 31, 2021 MIS MA Consolidated Gross Accumulated Net Gross Accumulated Net Gross Accumulated Net Balance at beginning of year $ 311 $ — $ 311 $ 4,257 $ (12) $ 4,245 $ 4,568 $ (12) $ 4,556 Additions/ adjustments (2) 90 — 90 1,525 — 1,525 1,615 — 1,615 Foreign currency translation adjustments (5) — (5) (167) — (167) (172) — (172) Ending balance $ 396 $ — $ 396 $ 5,615 $ (12) $ 5,603 $ 6,011 $ (12) $ 5,999 (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 9. (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 accumulated amortization consisted of: December 31, 2022 2021 Customer relationships $ 2,024 $ 2,101 Accumulated amortization (453) (381) Net customer relationships 1,571 1,720 Software/product technology 661 663 Accumulated amortization (283) (219) Net software/product technology 378 444 Database 178 179 Accumulated amortization (64) (46) Net database 114 133 Trade names 197 207 Accumulated amortization (58) (47) Net trade names 139 160 Other (1) 52 54 Accumulated amortization (44) (44) Net other 8 10 Total $ 2,210 $ 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: Year Ended December 31, 2022 2021 2020 Amortization expense $ 200 $ 158 $ 124 |
Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization | Estimated future annual amortization expense for intangible assets subject to amortization is as follows: Year Ending December 31, 2023 $ 196 2024 187 2025 183 2026 180 2027 171 Thereafter 1,293 Total estimated future amortization $ 2,210 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses Included in Consolidated Statements of Operations | Total expenses included in the accompanying consolidated statements of operations relating to the Company's restructuring programs are as follows: Year Ended December 31, 2022 Employee Termination Costs (1) Real Estate Related Costs (2) Other Costs (3) Total 2020 Real Estate Rationalization Restructuring Program $ — $ 2 $ — $ 2 2020 MA Strategic Reorganization Restructuring Program (1) — — (1) 2022 - 2023 Geolocation Restructuring Program 85 27 1 113 Total Restructuring $ 84 $ 29 $ 1 $ 114 Year Ended December 31, 2021 Employee Termination Costs (1) Real Estate Related Costs Other Total 2018 Restructuring Program $ (2) $ — $ — $ (2) 2020 MA Strategic Reorganization Restructuring Program 2 — — 2 Total Restructuring $ — $ — $ — $ — Year Ended December 31, 2020 Employee Termination Costs (1) Real Estate Related Costs (4) Other Total 2018 Restructuring Program $ (4) $ — $ — $ (4) 2020 Real Estate Rationalization Restructuring Program — 36 — 36 2020 MA Strategic Reorganization Restructuring Program 18 — — 18 Total Restructuring $ 14 $ 36 $ — $ 50 (1) Includes severance costs and expense related to the modification of equity awards. (2) Primarily includes ROU Asset and leasehold improvement impairment charges and the non-cash acceleration of amortization of abandoned ROU assets and leasehold improvements for the year ended December 31, 2022. The fair value of the impaired assets was determined by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of those assets subsequent to the impairment was $0. (3) Primarily includes professional service fees related to execution of the 2022 - 2023 Geolocation Restructuring Program. (4) Includes ROU Asset impairment charges and the non-cash acceleration of amortization of leasehold improvements for the year ended December 31, 2020. The fair value of the impaired ROU Assets was determined by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of those ROU assets subsequent to the impairment was $10 million and was categorized as Level 3 within the ASC Topic 820 fair value hierarchy. The table below shows cumulative restructuring expense incurred through December 31, 2022 by reportable segment. MIS MA Total 2018 Restructuring Program $ 60 $ 43 $ 103 2020 Real Estate Rationalization Restructuring Program 22 16 38 2020 MA Strategic Reorganization Restructuring Program — 19 19 2022 - 2023 Geolocation Restructuring Program 64 49 113 |
Changes to the Restructuring Liability | Changes to the restructuring liability were as follows: 2022 2021 2020 Balance as of January 1 $ 4 $ 21 $ 24 2018 Restructuring Program: Cost incurred and adjustments — (2) (4) Cash payments — — (18) 2020 Real Estate Rationalization Restructuring Program: Cost incurred and adjustments — (1) 1 2020 MA Strategic Reorganization Restructuring Program: Cost incurred and adjustments (1) 2 18 Cash payments (2) (16) — 2022 - 2023 Geolocation Restructuring Program: Cost incurred and adjustments 86 — — Cash payments (22) — — Balance as of December 31 (1) $ 65 $ 4 $ 21 (1) Restructuring liability is primarily comprised of employee termination costs, with an immaterial amount of real estate-related and other costs. As of December 31, 2022, substantially all of the remaining $65 million restructuring liability is expected to be paid out in 2023. Cumulative expense incurred through December 31, 2022 Employee Real Estate Related Other Costs Total 2018 Restructuring Program $ 55 $ 48 $ — $ 103 2020 Real Estate Rationalization Restructuring Program $ — $ 38 $ — $ 38 2020 MA Strategic Reorganization Restructuring Program $ 19 $ — $ — $ 19 2022 - 2023 Geolocation Restructuring Program $ 85 $ 27 $ 1 $ 113 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Carried at Fair Value on Recurring Basis | The tables below present information about items which are carried at fair value on a recurring basis at December 31, 2022 and 2021: Fair value Measurement as of December 31, 2022 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 46 $ — $ 46 Mutual funds 71 71 — Total $ 117 $ 71 $ 46 Liabilities: Derivatives (1) $ 319 $ — $ 319 Total $ 319 $ — $ 319 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 forwards on certain assets and liabilities as well as interest rate swaps and cross-currency swaps as more fully described in Note 7 to the consolidated financial statements. |
OTHER BALANCE SHEET INFORMATI_2
OTHER BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Balance Sheet Information [Abstract] | |
Additional Details Related to Certain Balance Sheet Captions | The following tables contain additional detail related to certain balance sheet captions: December 31, 2022 2021 Other current assets: Prepaid taxes $ 235 $ 112 Prepaid expenses 119 99 Capitalized costs to obtain and fulfill sales contracts 106 103 Foreign exchange forwards on certain assets and liabilities 19 1 Other 104 74 Total other current assets $ 583 $ 389 December 31, 2022 2021 Other assets: Investments in non-consolidated affiliates $ 517 $ 443 Deposits for real-estate leases 15 14 Indemnification assets related to acquisitions 110 106 Mutual funds and fixed deposits 87 89 Company owned life insurance (at contract value) 40 37 Costs to obtain sales contracts 171 138 Derivative instruments designated as accounting hedges 27 66 Pension and other retirement employee benefits 40 77 Other 85 64 Total other assets $ 1,092 $ 1,034 December 31, 2022 2021 Accounts payable and accrued liabilities: Salaries and benefits $ 104 $ 145 Incentive compensation 276 390 Customer credits, advanced payments and advanced billings 102 100 Dividends 6 6 Professional service fees 49 75 Interest accrued on debt 92 85 Accounts payable 52 47 Income taxes 86 115 Pension and other retirement employee benefits 7 7 Accrued royalties 23 36 Foreign exchange forwards on certain assets and liabilities 2 12 Restructuring liability 65 4 Other 147 120 Total accounts payable and accrued liabilities $ 1,011 $ 1,142 December 31, 2022 2021 Other liabilities: Pension and other retirement employee benefits $ 189 $ 235 Interest accrued on UTPs 47 59 MAKS indemnification provisions 23 33 Income tax liability – non-current portion 48 23 Derivative instruments designated as accounting hedges 317 40 Other 50 48 Total other liabilities $ 674 $ 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: December 31, 2022 2021 Equity method investments (1) $ 187 $ 121 Investments measured using the measurement alternative (2) 325 318 Other 5 4 Total investments in non-consolidated affiliates $ 517 $ 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, which is more fully discussed in Note 2. |
COMPREHENSIVE INCOME AND ACCU_2
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Reclassifications out of AOCI | The following table provides details about the reclassifications out of AOCL: Year Ended December 31, Location in the consolidated 2022 2021 2020 Losses on currency translation adjustments 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 Cross-currency swap 1 — — Other non-operating income, net Interest rate contract (3) (2) (3) Other non-operating income, net Total before income taxes (2) (2) (3) Income tax effect of item above — — 1 Provision for income taxes Total net losses on cash flow hedges (2) (2) (2) Gains on net investment hedges Cross currency swaps — — 1 Other non-operating income, net FX forwards — 2 — Other non-operating income, net Total before income taxes — 2 1 Income tax effect of item above — (1) — Provision for income taxes Total net gains on net investment hedges — 1 1 Pension and other retirement benefits Amortization of actuarial losses and prior service costs included in net income (3) (11) (6) Other non-operating income, net Settlement charge — (8) (2) Other non-operating income, net Total before income taxes (3) (19) (8) Income tax effect of item above 1 5 2 Provision for income taxes Total pension and other retirement benefits (2) (14) (6) Total net losses included in Net Income attributable to reclassifications out of AOCL $ (24) $ (15) $ (7) |
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 December 31, 2022 December 31, 2021 Net investment hedges Cross currency swaps $ 118 $ 19 FX forwards 29 29 Long-term debt 38 (27) Total net investment hedges 185 21 Cash flow hedges Interest rate contracts (47) (49) Cross-currency swap 2 2 Total cash flow hedges (45) (47) Total net (loss) gain in AOCL $ 140 $ (26) The following tables show changes in AOCL by component (net of tax): Year Ended December 31, 2022 Pension and Gains/ (Losses) on Cash Flow Hedges Foreign Net Investment Hedges Total Balance at December 31, 2021 $ (49) $ (47) $ (335) $ 21 $ (410) Other comprehensive income/(loss) before reclassifications — — (421) 164 (257) Amounts reclassified from AOCL 2 2 20 — 24 Other comprehensive income/(loss) 2 2 (401) 164 (233) Balance at December 31, 2022 $ (47) $ (45) $ (736) $ 185 $ (643) Year Ended December 31, 2021 Pension and Gains/ (Losses) on Cash Flow Hedges Foreign Net Investment Hedges Total Balance at December 31, 2020 $ (118) $ (49) $ (45) $ (220) $ (432) Other comprehensive income/(loss) before reclassifications 55 — (290) 242 7 Amounts reclassified from AOCL 14 2 — (1) 15 Other comprehensive income/(loss) 69 2 (290) 241 22 Balance at December 31, 2021 $ (49) $ (47) $ (335) $ 21 $ (410) Year Ended December 31, 2020 Pension and Gains/ (Losses) on Cash Flow Hedges Foreign Net Investment Hedges Total Balance at December 31, 2019 $ (92) $ — $ (401) $ 54 $ (439) Other comprehensive income/(loss) before reclassifications (32) (51) 356 (273) — Amounts reclassified from AOCL 6 2 — (1) 7 Other comprehensive income/(loss) (26) (49) 356 (274) 7 Balance at December 31, 2020 $ (118) $ (49) $ (45) $ (220) $ (432) |
PENSION AND OTHER RETIREMENT _2
PENSION AND OTHER RETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Summary of Changes in Benefit Obligations and Fair Value of Plan Assets for Retirement Plans | Following is a summary of changes in benefit obligations and fair value of plan assets for the Retirement Plans for the years ended December 31: Pension Plans Other Retirement Plans 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation, beginning of the period $ (570) $ (663) $ (48) $ (48) Service cost (14) (19) (4) (4) Interest cost (15) (14) (1) (1) Plan participants’ contributions — — (1) (1) Benefits paid 20 68 2 2 Actuarial (loss) gain 1 (6) — (3) Assumption changes 116 64 13 7 Benefit obligation, end of the period $ (462) $ (570) $ (39) $ (48) Change in plan assets: Fair value of plan assets, beginning of the period $ 544 $ 528 $ — $ — Actual return on plan assets (111) 34 — — Benefits paid (20) (68) (2) (2) Employer contributions 7 50 1 1 Plan participants’ contributions — — 1 1 Fair value of plan assets, end of the period $ 420 $ 544 $ — $ — Funded status of the plans $ (42) $ (26) $ (39) $ (48) Amounts recorded on the consolidated balance sheets: Pension and retirement benefits asset – non current $ 39 $ 74 $ — $ — Pension and retirement benefits liability – current (5) (5) (2) (1) Pension and retirement benefits liability – non current (76) (95) (37) (47) Net amount recognized $ (42) $ (26) $ (39) $ (48) Accumulated benefit obligation, end of the period $ (432) $ (524) |
Accumulated Benefit Obligation in Excess of Plan Assets | The following information is for those pension plans with an accumulated benefit obligation in excess of plan assets: December 31, 2022 2021 Aggregate projected benefit obligation $ 82 $ 101 Aggregate accumulated benefit obligation $ 72 $ 86 |
Summary of Pre-Tax Net Actuarial Losses and Prior Service Cost Recognized in AOCI | The following table summarizes the pre-tax net actuarial losses and prior service costs recognized in AOCL for the Company’s Retirement Plans as of December 31: Pension Plans Other Retirement Plans 2022 2021 2022 2021 Net actuarial losses (gains) $ (77) $ (61) $ 9 $ (4) Net prior service credits 2 3 — — Total recognized in AOCL – pretax $ (75) $ (58) $ 9 $ (4) |
Components of Net Periodic Benefit Expense Related to Retirement Plans | Net periodic benefit expenses recognized for the Retirement Plans for the years ended December 31: Pension Plans Other Retirement Plans 2022 2021 2020 2022 2021 2020 Components of net periodic expense Service cost $ 14 $ 19 $ 17 $ 4 $ 4 $ 3 Interest cost 15 14 17 1 1 1 Expected return on plan assets (26) (27) (20) — — — Amortization of net actuarial loss and prior service credits from earlier periods 3 11 7 — 1 — Loss on settlement of pension obligations — 8 2 — — — Net periodic expense $ 6 $ 25 $ 23 $ 5 $ 6 $ 4 |
Summary of Pre-Tax Amounts Recorded in OCI | The following table summarizes the pre-tax amounts recorded in OCI related to the Company’s Retirement Plans for the years ended December 31: Pension Plans Other Retirement Plans 2022 2021 2020 2022 2021 2020 Amortization of net actuarial losses and prior service credit $ 3 $ 11 $ 7 $ — $ 1 $ — Settlement loss — 8 2 — — — Net actuarial (loss)/gain arising during the period (19) 65 (37) 13 4 (3) Total recognized in OCI – pre-tax $ (16) $ 84 $ (28) $ 13 $ 5 $ (3) |
Weighted-average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Expenses | Weighted-average assumptions used to determine benefit obligations at December 31: Pension Plans Other Retirement Plans 2022 2021 2022 2021 Discount rate 4.93 % 2.60 % 4.90 % 2.65 % Rate of compensation increase 3.63 % 3.63 % — — Weighted-average assumptions used to determine net periodic benefit expense for years ended December 31: Pension Plans Other Retirement Plans 2022 2021 2020 2022 2021 2020 Discount rate 2.60 % 2.24 % 3.04 % 2.65 % 2.30 % 3.05 % Expected return on plan assets 5.05 % 5.45 % 4.45 % — — — Rate of compensation increase 3.63 % 3.62 % 3.64 % — — — Cash balance plan interest crediting rate 4.50 % 4.50 % 4.50 % — — — |
Summary of Pension Plan Assets by Category Based on Hierarchy of Fair Value Measurements | Fair value of the assets in the Company’s funded pension plan by asset category at December 31, 2022 and 2021 are as follows: Fair Value Measurement as of December 31, 2022 Asset Category Balance Level 1 Level 2 Measured using NAV practical expedient (1) % of total Cash and cash equivalent $ 5 $ — $ 5 $ — 1 % Common/collective trust funds—equity securities U.S. large-cap 96 — 96 — 23 % U.S. small and mid-cap 17 — 17 — 4 % Emerging markets 19 — 19 — 5 % Total equity investments 132 — 132 — 31 % Emerging markets bond fund 26 — — 26 6 % Common/collective trust funds and corporate bonds —fixed income securities Intermediate-term investment grade U.S. government/ corporate bonds 54 — 54 — 13 % Mutual funds Long duration corporate bonds 126 — 126 — 30 % U.S. Treasury Inflation-Protected Securities (TIPs) 24 24 — — 6 % Convertible securities 14 14 — — 3 % Private investment fund—high yield securities 12 — — 12 3 % Total fixed-income investments 256 38 180 38 61 % Other investment—private real estate fund 27 — — 27 6 % Total Assets $ 420 $ 38 $ 317 $ 65 100 % Fair Value Measurement as of December 31, 2021 Asset Category Balance Level 1 Level 2 Measured using NAV practical expedient (1) % of total Cash and cash equivalent $ 4 $ — $ 4 $ — 1 % Common/collective trust funds—equity securities U.S. large-cap 135 — 135 — 25 % U.S. small and mid-cap 23 — 23 — 4 % Emerging markets 27 — 27 — 5 % Total equity investments 185 — 185 — 34 % Emerging markets bond fund 30 — — 30 6 % Common/collective trust funds and corporate bonds —fixed income securities Intermediate-term investment grade U.S. government/ corporate bonds 68 — 68 — 13 % Mutual funds Long duration corporate bonds 177 — 177 — 33 % U.S. Treasury Inflation-Protected Securities (TIPs) 24 24 — — 4 % Convertible securities 17 17 3 % Private investment fund—high yield securities 14 — — 14 3 % Total fixed-income investments 330 41 245 44 61 % Other investment—private real estate debt fund 25 — — 25 4 % Total Assets $ 544 $ 41 $ 434 $ 69 100 % (1) Investments are measured using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit a reconciliation of the fair value hierarchy to the value of the total plan assets. |
Estimated Future Benefits Payments for Retirement Plans | Estimated future benefits payments for the Retirement Plans are as follows as of the year ended December 31, 2022: Year Ending December 31, Pension Plans Other Retirement Plans 2023 $ 22 $ 2 2024 25 2 2025 31 2 2026 29 2 2027 30 3 2028 - 2032 160 17 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Cost and Associated Tax Benefit | Presented below is a summary of the stock-based compensation expense and associated tax benefit in the accompanying consolidated statements of operations: Year Ended December 31, 2022 2021 2020 Stock-based compensation expense $ 169 $ 175 $ 154 Tax benefit $ 41 $ 42 $ 30 |
Weighted Average Assumptions used in Determining Fair Value for Options Granted | The following weighted average assumptions were used for options granted (excluding the aforementioned RMS replacement awards for the year ended December 31, 2021): Year Ended December 31, 2022 2021 2020 Expected dividend yield 0.86 % 0.89 % 0.80 % Expected stock volatility 27 % 28 % 23 % Risk-free interest rate 1.91 % 0.82 % 1.43 % Expected holding period (in years) 5.6 5.6 5.7 The following represents the fair value of the options at grant date (including the RMS replacement option awards for the year ended December 31, 2021): Year Ended December 31, 2022 2021 2020 Weighted average grant date fair value per share $ 84.00 $ 121.14 $ 60.66 |
Share-based Payment Arrangement, Option and Stock Appreciation Rights, Activity | A summary of option activity as of December 31, 2022 and changes during the year then ended is presented below: Options Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, December 31, 2021 1.0 $ 166.16 Granted 0.1 $ 324.64 Exercised (0.1) $ 148.28 Outstanding, December 31, 2022 1.0 $ 181.35 5.2 years $ 107 Vested and expected to vest, December 31, 2022 1.0 $ 181.01 5.2 years $ 107 Exercisable, December 31, 2022 0.7 $ 139.08 4.0 years $ 99 |
Stock Option Exercises and Restricted Stock Vesting | The following table summarizes information relating to stock option exercises: Year Ended December 31, 2022 2021 2020 Proceeds from stock option exercises $ 8 $ 24 $ 39 Aggregate intrinsic value $ 9 $ 55 $ 132 Tax benefit realized upon exercise $ 2 $ 13 $ 32 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | A summary of nonvested restricted stock activity for the year ended December 31, 2022 is presented below: Nonvested Restricted Stock Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2021 1.4 $ 253.85 Granted 0.6 $ 318.88 Vested (0.6) $ 229.86 Forfeited (0.1) $ 281.24 Balance, December 31, 2022 1.3 $ 288.47 A summary of performance-based restricted stock activity for the year ended December 31, 2022 is presented below: Performance-based restricted stock Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2021 0.4 $ 266.89 Granted 0.1 $ 310.62 Vested (0.2) $ 169.80 Balance, December 31, 2022 0.3 $ 303.80 |
Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest | The following table summarizes information relating to the vesting of restricted stock awards: Year Ended December 31, 2022 2021 2020 Fair value of shares vested $ 180 $ 194 $ 202 Tax benefit realized upon vesting $ 42 $ 46 $ 46 The following table summarizes information relating to the vesting of the Company’s performance-based restricted stock awards: Year Ended December 31, 2022 2021 2020 Fair value of shares vested $ 50 $ 28 $ 70 Tax benefit realized upon vesting $ 7 $ 7 $ 17 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Components of the Company’s income tax provision are as follows: Year Ended December 31, 2022 2021 2020 Current: Federal $ 106 $ 404 $ 213 State and Local 17 106 68 Non-U.S. 215 249 215 Total current 338 759 496 Deferred: Federal 57 (172) 6 State and Local 10 (45) — Non-U.S. (19) (1) (50) Total deferred 48 (218) (44) Total provision for income taxes $ 386 $ 541 $ 452 |
Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income before Provision for Income Taxes | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate on income before provision for income taxes is as follows: Year Ended December 31, 2022 2021 2020 U.S. statutory tax rate 21.0 % 21.0 % 21.0 % State and local taxes, net of federal tax benefit 0.8 % 1.5 % 2.3 % Benefit of foreign operations (0.2) % (1.5) % (1.5) % Other 0.3 % (1.4) % (1.5) % Effective tax rate 21.9 % 19.6 % 20.3 % Income tax paid $ 488 $ 932 $ 514 |
Source of Income before Provision for Income Taxes | The source of income before provision for income taxes is as follows: Year Ended December 31, 2022 2021 2020 U.S. $ 804 $ 1,563 $ 1,349 Non-U.S. 956 1,192 880 Income before provision for income taxes $ 1,760 $ 2,755 $ 2,229 |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows: December 31, 2022 2021 Deferred tax assets: Account receivable allowances $ 9 $ 8 Accumulated depreciation and amortization 15 10 Stock-based compensation 57 50 Accrued compensation and benefits 51 101 Capitalized costs 27 33 Operating lease liabilities 115 134 Deferred revenue 206 252 Net operating loss 36 33 Restructuring 11 1 Uncertain tax positions 68 86 Self-insured related reserves 12 10 Loss on net investment hedges - OCI — 11 Other 14 16 Total deferred tax assets 621 745 Deferred tax liabilities: Accumulated depreciation and amortization of intangible assets and capitalized software (593) (659) ROU Assets (82) (102) Capital gains (29) (31) Self-insured related income (12) (10) Revenue Accounting Standard - ASC 606 (5) (7) Deferred tax on unremitted foreign earnings (13) (12) Gain on net investment hedges - OCI (48) (4) Other (9) (6) Total deferred tax liabilities (791) (831) Net deferred tax liabilities (170) (86) Valuation allowance (21) (18) Total net deferred tax liabilities $ (191) $ (104) |
Reconciliation of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of UTPs is as follows: Year Ended December 31, 2022 2021 2020 Balance as of January 1 $ 388 $ 483 $ 477 Additions for tax positions related to the current year 12 102 37 Additions for tax positions of prior years 12 18 17 Reductions for tax positions of prior years (27) — (2) Settlements with taxing authorities (30) (134) (5) Lapse of statute of limitations (33) (81) (41) Balance as of December 31 $ 322 $ 388 $ 483 |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Total Indebtedness | The following table summarizes total indebtedness: December 31, 2022 Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value Notes Payable: 4.875% 2013 Senior Notes, due 2024 $ 500 $ — $ (1) $ (1) $ 498 5.25% 2014 Senior Notes, due 2044 600 (42) 3 (4) 557 1.75% 2015 Senior Notes, due 2027 534 — — (2) 532 3.25% 2017 Senior Notes, due 2028 500 (37) (3) (2) 458 4.25% 2018 Senior Notes, due 2029 400 (42) (2) (2) 354 4.875% 2018 Senior Notes, due 2048 400 (44) (6) (4) 346 0.950% 2019 Senior Notes, due 2030 800 — (2) (4) 794 3.75% 2020 Senior Notes, due 2025 700 (27) (1) (3) 669 3.25% 2020 Senior Notes, due 2050 300 — (4) (3) 293 2.55% 2020 Senior Notes, due 2060 300 — (2) (3) 295 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 (35) (8) (5) 452 4.25% 2022 Senior Notes, due 2032 500 (12) (2) (4) 482 Total long-term debt $ 7,734 $ (239) $ (55) $ (51) $ 7,389 December 31, 2021 Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value Notes Payable: 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 tables above represents the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt. |
Schedule of Credit Facilities | The following summarizes information relating to the Company's revolving credit facility: December 31, 2022 December 31, 2021 Issue Date Capacity Maturity Drawn Undrawn Drawn Undrawn 2021 Credit Facility December 17, 2021 $ 1,250 December 17, 2026 $ — $ 1,250 $ — $ 1,250 |
Principal Payments Due on Long-term Borrowings | The repayment schedule for the Company’s borrowings is as follows: Year Ending December 31, Total 2023 $ — 2024 500 2025 700 2026 — 2027 534 Thereafter 6,000 Total $ 7,734 |
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: Year Ended December 31, 2022 2021 2020 Expense on borrowings $ (216) $ (185) $ (163) (Expense) income on UTPs and other tax related liabilities (1) (13) 21 (34) Net periodic pension costs - interest component (17) (16) (19) Income 15 9 11 Interest expense, net $ (231) $ (171) $ (205) Interest paid (2) $ 198 $ 162 $ 132 (1) The amount for the year ended December 31, 2021 includes a $45 million benefit relating to the reversal of tax-related interest accruals pursuant to the resolution of tax matters. (2) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 7. |
Fair Value and Carrying Value of Long-term Debt | The fair value and carrying value of the Company’s debt as of December 31, 2022 and 2021 are as follows: December 31, 2022 December 31, 2021 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt $ 7,389 $ 6,564 $ 7,413 $ 7,982 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Share Repurchase Programs | The table below summarizes the Company’s remaining authority under its share repurchase program as of December 31, 2022: Date Authorized Amount Authorized Remaining Authority February 7, 2022 $ 750 $ 750 February 9, 2021 $ 1,000 $ 98 Total Remaining Authority at December 31, 2022 $ 848 |
Dividends Paid | The Company’s cash dividends were: Dividends Per Share Year ended December 31, 2022 2021 2020 Declared Paid Declared Paid Declared Paid First quarter $ 0.70 $ 0.70 $ 0.62 $ 0.62 $ 0.56 $ 0.56 Second quarter 0.70 0.70 0.62 0.62 0.56 0.56 Third quarter 0.70 0.70 0.62 0.62 0.56 0.56 Fourth quarter 0.70 0.70 0.62 0.62 0.56 0.56 Total $ 2.80 $ 2.80 $ 2.48 $ 2.48 $ 2.24 $ 2.24 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Cost | The following table presents the components of the Company’s lease cost: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 102 $ 98 $ 96 Sublease income (7) (6) (5) Variable lease cost 20 19 19 Total lease cost $ 115 $ 111 $ 110 |
Schedule of Operating Leases Information | The following tables present other information related to the Company’s operating leases: Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 118 $ 113 $ 108 Right-of-use assets obtained in exchange for new operating lease liabilities $ 35 $ 137 $ 36 Year Ended December 31, 2022 2021 2020 Weighted-average remaining lease term (in years) 4.9 5.6 6.0 Weighted-average discount rate applied to operating leases 3.1 % 3.1 % 3.6 % |
Lessee, Operating Lease, Liability, Maturity | The following table presents a maturity analysis of the future minimum lease payments included within the Company’s operating lease liabilities at December 31, 2022: Year Ending December 31, Operating Leases 2023 $ 119 2024 111 2025 98 2026 79 2027 64 Thereafter 40 Total lease payments (undiscounted) 511 Less: Interest 37 Present value of lease liabilities: $ 474 Lease liabilities - current $ 106 Lease liabilities - noncurrent $ 368 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | The table below shows revenue and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Refer to Note 3 for further details on the components of the Company’s revenue. Year Ended December 31, 2022 2021 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Total external revenue $ 2,699 $ 2,769 $ — $ 5,468 $ 3,812 $ 2,406 $ — $ 6,218 Intersegment revenue 174 8 (182) — 165 7 (172) — Revenue 2,873 2,777 (182) 5,468 3,977 2,413 (172) 6,218 Operating, SG&A 1,385 1,937 (182) 3,140 1,503 1,786 (172) 3,117 Adjusted Operating Income 1,488 840 — 2,328 2,474 627 — 3,101 Add: Depreciation and amortization 81 250 — 331 72 185 — 257 Restructuring 65 49 — 114 (1) 1 — — Operating Income $ 1,883 $ 2,844 Year Ended December 31, 2020 MIS MA Eliminations Consolidated Total external revenue $ 3,292 $ 2,079 $ — $ 5,371 Intersegment revenue 148 7 (155) — Revenue 3,440 2,086 (155) 5,371 Operating, SG&A 1,387 1,472 (155) 2,704 Adjusted Operating Income 2,053 614 — 2,667 Add: Depreciation and amortization 70 150 — 220 Restructuring 19 31 — 50 Loss pursuant to the divestiture of MAKS — 9 — 9 Operating income $ 2,388 |
Restructuring Expenses Included in Consolidated Statements of Operations | Total expenses included in the accompanying consolidated statements of operations relating to the Company's restructuring programs are as follows: Year Ended December 31, 2022 Employee Termination Costs (1) Real Estate Related Costs (2) Other Costs (3) Total 2020 Real Estate Rationalization Restructuring Program $ — $ 2 $ — $ 2 2020 MA Strategic Reorganization Restructuring Program (1) — — (1) 2022 - 2023 Geolocation Restructuring Program 85 27 1 113 Total Restructuring $ 84 $ 29 $ 1 $ 114 Year Ended December 31, 2021 Employee Termination Costs (1) Real Estate Related Costs Other Total 2018 Restructuring Program $ (2) $ — $ — $ (2) 2020 MA Strategic Reorganization Restructuring Program 2 — — 2 Total Restructuring $ — $ — $ — $ — Year Ended December 31, 2020 Employee Termination Costs (1) Real Estate Related Costs (4) Other Total 2018 Restructuring Program $ (4) $ — $ — $ (4) 2020 Real Estate Rationalization Restructuring Program — 36 — 36 2020 MA Strategic Reorganization Restructuring Program 18 — — 18 Total Restructuring $ 14 $ 36 $ — $ 50 (1) Includes severance costs and expense related to the modification of equity awards. (2) Primarily includes ROU Asset and leasehold improvement impairment charges and the non-cash acceleration of amortization of abandoned ROU assets and leasehold improvements for the year ended December 31, 2022. The fair value of the impaired assets was determined by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of those assets subsequent to the impairment was $0. (3) Primarily includes professional service fees related to execution of the 2022 - 2023 Geolocation Restructuring Program. (4) Includes ROU Asset impairment charges and the non-cash acceleration of amortization of leasehold improvements for the year ended December 31, 2020. The fair value of the impaired ROU Assets was determined by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of those ROU assets subsequent to the impairment was $10 million and was categorized as Level 3 within the ASC Topic 820 fair value hierarchy. The table below shows cumulative restructuring expense incurred through December 31, 2022 by reportable segment. MIS MA Total 2018 Restructuring Program $ 60 $ 43 $ 103 2020 Real Estate Rationalization Restructuring Program 22 16 38 2020 MA Strategic Reorganization Restructuring Program — 19 19 2022 - 2023 Geolocation Restructuring Program 64 49 113 |
Company's Reportable Segment Revenues Disaggregated by Segment and Geographic Region | CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA Year Ended December 31, 2022 2021 2020 Revenue: U.S. $ 2,873 $ 3,383 $ 2,955 Non-U.S.: EMEA 1,682 1,885 1,545 Asia-Pacific 556 603 571 Americas 357 347 300 Total Non-U.S. 2,595 2,835 2,416 Total $ 5,468 $ 6,218 $ 5,371 Long-lived assets at December 31: U.S. $ 4,408 $ 4,449 $ 2,162 Non-U.S. 4,489 4,802 4,889 Total $ 8,897 $ 9,251 $ 7,051 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Summary of Activity for Valuation Allowances | Below is a summary of activity: Year Ended December 31, Balance at Beginning of the Year Adoption of Credit Losses Accounting Standard Charged to costs and expenses Deductions (1) Balance at End of the Year 2022 Allowances for credit losses $ (32) $ — $ (25) $ 17 $ (40) Deferred tax assets—valuation allowance $ (18) $ — $ (4) $ 1 $ (21) 2021 Allowances for credit losses $ (34) $ — $ (13) $ 15 $ (32) Deferred tax assets—valuation allowance $ (15) $ — $ (4) $ 1 $ (18) 2020 Allowances for credit losses $ (20) $ (2) $ (26) $ 14 $ (34) Deferred tax assets—valuation allowance $ (9) $ — $ (6) $ — $ (15) (1) Reflects write-off of uncollectible accounts receivable or expiration of foreign net operating tax losses. |
OTHER NON-OPERATING (EXPENSE)_2
OTHER NON-OPERATING (EXPENSE) INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Components of Other Non-Operating Income | The following table summarizes the components of other non-operating income, net as presented in the consolidated statements of operations: Year Ended December 31, 2022 2021 2020 FX (loss) gain (1) $ (10) $ (1) $ 2 Purchase price hedge loss (2) — (13) — Net periodic pension costs—other components 24 9 13 Income from investments in non-consolidated affiliates (3) 17 60 6 Other 7 27 25 Total $ 38 $ 82 $ 46 (1) The amount for the year ended December 31, 2022 includes FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia. (2) The amount for the year ended December 31, 2021 reflects a loss on a forward contract to hedge a portion of the RMS British pound-denominated purchase price. (3) The amount for the year ended December 31, 2021 includes a $36 million non-cash gain relating to the exchange of Moody’s minority investment in VisibleRisk (accounted for under the equity method) for shares of BitSight, a cybersecurity ratings company. |
Description of Business and B_2
Description of Business and Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2022 reportingUnit customer | Dec. 31, 2021 customer | |
Capitalized Contract Cost [Line Items] | ||
Number of reporting units | 4 | |
Number of customers greater than 10% or more of accounts receivable | customer | 0 | 0 |
MIS | ||
Capitalized Contract Cost [Line Items] | ||
Number of reporting units | 2 | |
MA | ||
Capitalized Contract Cost [Line Items] | ||
Number of reporting units | 2 | |
Subscription and Maintenance Contracts | MA | Minimum | ||
Capitalized Contract Cost [Line Items] | ||
Revenue, contractual coverage period (years) | 3 years | |
General customer contract payment condition (days) | 30 days | |
Subscription and Maintenance Contracts | MA | Maximum | ||
Capitalized Contract Cost [Line Items] | ||
Revenue, contractual coverage period (years) | 5 years | |
General customer contract payment condition (days) | 60 days |
Revenues - Revenue by Category
Revenues - Revenue by Category (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 5,468 | $ 6,218 | $ 5,371 |
Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | (182) | (172) | (155) |
MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,699 | 3,812 | 3,292 |
MIS | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,873 | 3,977 | 3,440 |
MIS | Corporate finance (CFG) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,269 | 2,087 | 1,857 |
MIS | Corporate finance (CFG) | Investment-grade | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 294 | 439 | 636 |
MIS | Corporate finance (CFG) | High-yield | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 108 | 411 | 352 |
MIS | Corporate finance (CFG) | Bank loans | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 275 | 606 | 287 |
MIS | Corporate finance (CFG) | Other accounts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 592 | 631 | 582 |
MIS | Structured finance (SFG) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 462 | 560 | 362 |
MIS | Structured finance (SFG) | Asset-backed securities | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 116 | 118 | 98 |
MIS | Structured finance (SFG) | RMBS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 106 | 123 | 96 |
MIS | Structured finance (SFG) | CMBS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 98 | 102 | 61 |
MIS | Structured finance (SFG) | Other accounts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2 | 2 | 2 |
MIS | Structured finance (SFG) | Structured credit | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 140 | 215 | 105 |
MIS | Financial institutions (FIG) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 491 | 602 | 530 |
MIS | Financial institutions (FIG) | Banking | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 337 | 411 | 355 |
MIS | Financial institutions (FIG) | Insurance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 113 | 145 | 137 |
MIS | Financial institutions (FIG) | Managed investments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 28 | 36 | 28 |
MIS | Financial institutions (FIG) | Other accounts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 13 | 10 | 10 |
MIS | Public, project and infrastructure finance (PPIF) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 431 | 521 | 496 |
MIS | Public, project and infrastructure finance (PPIF) | Public finance / sovereign | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 197 | 244 | 250 |
MIS | Public, project and infrastructure finance (PPIF) | Project and infrastructure | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 234 | 277 | 246 |
MIS | Rating Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,653 | 3,770 | 3,245 |
MIS | MIS Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 46 | 42 | 47 |
MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,769 | 2,406 | 2,079 |
MA | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,777 | 2,413 | 2,086 |
MA | Decision Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,324 | 1,011 | 835 |
MA | Research and Insights | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 733 | 697 | 650 |
MA | Data and Information | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 712 | $ 698 | $ 594 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Line of Business and Geographical Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 5,468 | $ 6,218 | $ 5,371 |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,873 | 3,383 | 2,955 |
Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,595 | 2,835 | 2,416 |
MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,699 | 3,812 | 3,292 |
MIS | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,634 | 2,344 | 2,068 |
MIS | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,065 | 1,468 | 1,224 |
MIS | Rating Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,653 | 3,770 | 3,245 |
MIS | Rating Revenue | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,629 | 2,341 | 2,066 |
MIS | Rating Revenue | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,024 | 1,429 | 1,179 |
MIS | Corporate finance (CFG) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,269 | 2,087 | 1,857 |
MIS | Corporate finance (CFG) | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 832 | 1,384 | 1,291 |
MIS | Corporate finance (CFG) | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 437 | 703 | 566 |
MIS | Structured finance (SFG) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 462 | 560 | 362 |
MIS | Structured finance (SFG) | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 308 | 364 | 214 |
MIS | Structured finance (SFG) | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 154 | 196 | 148 |
MIS | Financial institutions (FIG) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 491 | 602 | 530 |
MIS | Financial institutions (FIG) | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 223 | 289 | 250 |
MIS | Financial institutions (FIG) | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 268 | 313 | 280 |
MIS | Public, project and infrastructure finance (PPIF) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 431 | 521 | 496 |
MIS | Public, project and infrastructure finance (PPIF) | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 266 | 304 | 311 |
MIS | Public, project and infrastructure finance (PPIF) | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 165 | 217 | 185 |
MIS | MIS Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 46 | 42 | 47 |
MIS | MIS Other | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5 | 3 | 2 |
MIS | MIS Other | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 41 | 39 | 45 |
MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,769 | 2,406 | 2,079 |
MA | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,239 | 1,039 | 887 |
MA | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,530 | 1,367 | 1,192 |
MA | Decision Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,324 | 1,011 | 835 |
MA | Decision Solutions | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 584 | 436 | 340 |
MA | Decision Solutions | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 740 | 575 | 495 |
MA | Research and Insights | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 733 | 697 | 650 |
MA | Research and Insights | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 405 | 377 | 363 |
MA | Research and Insights | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 328 | 320 | 287 |
MA | Data and Information | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 712 | 698 | 594 |
MA | Data and Information | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 250 | 226 | 184 |
MA | Data and Information | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 462 | $ 472 | $ 410 |
Revenues - Consolidated Revenue
Revenues - Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 5,468 | $ 6,218 | $ 5,371 |
MIS | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,699 | 3,812 | 3,292 |
MA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,769 | 2,406 | 2,079 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,873 | 3,383 | 2,955 |
U.S. | MIS | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,634 | 2,344 | 2,068 |
U.S. | MA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,239 | 1,039 | 887 |
Non-U.S. | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,595 | 2,835 | 2,416 |
Non-U.S. | MIS | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,065 | 1,468 | 1,224 |
Non-U.S. | MA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,530 | 1,367 | 1,192 |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,682 | 1,885 | 1,545 |
EMEA | MIS | |||
Segment Reporting Information [Line Items] | |||
Revenue | 648 | 930 | 727 |
EMEA | MA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,034 | 955 | 818 |
Asia-Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenue | 556 | 603 | 571 |
Asia-Pacific | MIS | |||
Segment Reporting Information [Line Items] | |||
Revenue | 271 | 357 | 345 |
Asia-Pacific | MA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 285 | 246 | 226 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Revenue | 357 | 347 | 300 |
Americas | MIS | |||
Segment Reporting Information [Line Items] | |||
Revenue | 146 | 181 | 152 |
Americas | MA | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 211 | $ 166 | $ 148 |
Revenues - Transaction and Rela
Revenues - Transaction and Relationship Revenue (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 5,468 | $ 6,218 | $ 5,371 |
Percentage of Revenues | 100% | 100% | 100% |
MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,699 | $ 3,812 | $ 3,292 |
Percentage of Revenues | 100% | 100% | 100% |
MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,769 | $ 2,406 | $ 2,079 |
Percentage of Revenues | 100% | 100% | 100% |
Corporate finance (CFG) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,269 | $ 2,087 | $ 1,857 |
Percentage of Revenues | 100% | 100% | 100% |
Structured finance (SFG) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 462 | $ 560 | $ 362 |
Percentage of Revenues | 100% | 100% | 100% |
Financial institutions (FIG) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 491 | $ 602 | $ 530 |
Percentage of Revenues | 100% | 100% | 100% |
Public, project and infrastructure finance (PPIF) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 431 | $ 521 | $ 496 |
Percentage of Revenues | 100% | 100% | 100% |
MIS Other | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 46 | $ 42 | $ 47 |
Percentage of Revenues | 100% | 100% | 100% |
Decision Solutions | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,324 | $ 1,011 | $ 835 |
Percentage of Revenues | 100% | 100% | 100% |
Research and Insights | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 733 | $ 697 | $ 650 |
Percentage of Revenues | 100% | 100% | 100% |
Data and Information | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 712 | $ 698 | $ 594 |
Percentage of Revenues | 100% | 100% | 100% |
Transaction Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,682 | $ 2,810 | $ 2,379 |
Percentage of Revenues | 31% | 45% | 44% |
Transaction Revenue | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,512 | $ 2,640 | $ 2,182 |
Percentage of Revenues | 56% | 69% | 66% |
Transaction Revenue | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 170 | $ 170 | $ 197 |
Percentage of Revenues | 6% | 7% | 9% |
Transaction Revenue | Corporate finance (CFG) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 772 | $ 1,600 | $ 1,401 |
Percentage of Revenues | 61% | 77% | 75% |
Transaction Revenue | Structured finance (SFG) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 262 | $ 362 | $ 175 |
Percentage of Revenues | 57% | 65% | 48% |
Transaction Revenue | Financial institutions (FIG) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 211 | $ 320 | $ 265 |
Percentage of Revenues | 43% | 53% | 50% |
Transaction Revenue | Public, project and infrastructure finance (PPIF) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 263 | $ 354 | $ 337 |
Percentage of Revenues | 61% | 68% | 68% |
Transaction Revenue | MIS Other | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 4 | $ 4 | $ 4 |
Percentage of Revenues | 9% | 10% | 9% |
Transaction Revenue | Decision Solutions | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 164 | $ 158 | $ 185 |
Percentage of Revenues | 12% | 16% | 22% |
Transaction Revenue | Research and Insights | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 6 | $ 8 | $ 8 |
Percentage of Revenues | 1% | 1% | 1% |
Transaction Revenue | Data and Information | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 0 | $ 4 | $ 4 |
Percentage of Revenues | 0% | 1% | 1% |
Relationship Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 3,786 | $ 3,408 | $ 2,992 |
Percentage of Revenues | 69% | 55% | 56% |
Relationship Revenue | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,187 | $ 1,172 | $ 1,110 |
Percentage of Revenues | 44% | 31% | 34% |
Relationship Revenue | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,599 | $ 2,236 | $ 1,882 |
Percentage of Revenues | 94% | 93% | 91% |
Relationship Revenue | Corporate finance (CFG) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 497 | $ 487 | $ 456 |
Percentage of Revenues | 39% | 23% | 25% |
Relationship Revenue | Structured finance (SFG) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 200 | $ 198 | $ 187 |
Percentage of Revenues | 43% | 35% | 52% |
Relationship Revenue | Financial institutions (FIG) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 280 | $ 282 | $ 265 |
Percentage of Revenues | 57% | 47% | 50% |
Relationship Revenue | Public, project and infrastructure finance (PPIF) | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 168 | $ 167 | $ 159 |
Percentage of Revenues | 39% | 32% | 32% |
Relationship Revenue | MIS Other | MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 42 | $ 38 | $ 43 |
Percentage of Revenues | 91% | 90% | 91% |
Relationship Revenue | Decision Solutions | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,160 | $ 853 | $ 650 |
Percentage of Revenues | 88% | 84% | 78% |
Relationship Revenue | Research and Insights | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 727 | $ 689 | $ 642 |
Percentage of Revenues | 99% | 99% | 99% |
Relationship Revenue | Data and Information | MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 712 | $ 694 | $ 590 |
Percentage of Revenues | 100% | 99% | 99% |
Revenues - Revenue Recognition
Revenues - Revenue Recognition Timing (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | $ 5,468 | $ 6,218 | $ 5,371 |
At Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 1,609 | 2,741 | 2,303 |
Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 3,859 | 3,477 | 3,068 |
MIS | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 2,699 | 3,812 | 3,292 |
MIS | At Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 1,512 | 2,640 | 2,182 |
MIS | Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 1,187 | 1,172 | 1,110 |
MA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 2,769 | 2,406 | 2,079 |
MA | At Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 97 | 101 | 121 |
MA | Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | $ 2,672 | $ 2,305 | $ 1,958 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - Accounts Receivable - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled Receivables | $ 385 | $ 386 |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled Receivables | $ 148 | $ 152 |
Revenues - Schedule of Changes
Revenues - Schedule of Changes in the Deferred Revenue Balances (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in Contract with Customer, Liability [Abstract] | |||
Beginning Balance | $ 1,335 | $ 1,187 | $ 1,162 |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (1,206) | (1,030) | (1,029) |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 1,220 | 1,091 | 1,007 |
Increases due to acquisitions during the period | 1 | 94 | 24 |
Effect of exchange rate changes | (17) | (7) | 23 |
Total changes in deferred revenue | (2) | 148 | 25 |
Ending Balance | 1,333 | 1,335 | 1,187 |
Deferred revenue - current | 1,258 | 1,249 | 1,089 |
Deferred revenue - noncurrent | 75 | 86 | 98 |
MIS | |||
Change in Contract with Customer, Liability [Abstract] | |||
Beginning Balance | 296 | 313 | 322 |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (210) | (220) | (229) |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 202 | 207 | 215 |
Increases due to acquisitions during the period | 0 | 0 | 0 |
Effect of exchange rate changes | (10) | (4) | 5 |
Total changes in deferred revenue | (18) | (17) | (9) |
Ending Balance | 278 | 296 | 313 |
Deferred revenue - current | 205 | 214 | 216 |
Deferred revenue - noncurrent | 73 | 82 | 97 |
MA | |||
Change in Contract with Customer, Liability [Abstract] | |||
Beginning Balance | 1,039 | 874 | 840 |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (996) | (810) | (800) |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 1,018 | 884 | 792 |
Increases due to acquisitions during the period | 1 | 94 | 24 |
Effect of exchange rate changes | (7) | (3) | 18 |
Total changes in deferred revenue | 16 | 165 | 34 |
Ending Balance | 1,055 | 1,039 | 874 |
Deferred revenue - current | 1,053 | 1,035 | 873 |
Deferred revenue - noncurrent | $ 2 | $ 4 | $ 1 |
Revenues - Expected Recognition
Revenues - Expected Recognition Period for Remaining Performance Obligations (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
MIS | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 99 |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 25% |
Revenue, remaining performance obligation, period | 1 year |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
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 | $ 3,500 |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
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]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 25% |
Revenue, remaining performance obligation, period | 1 year |
Revenues - Costs to Fulfill a C
Revenues - Costs to Fulfill a Contract with a Customer (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized Costs To Fulfill Sales Contracts | Operating Expense | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost, amortization | $ 123 | $ 124 | $ 113 |
Capitalized Costs To Fulfill Sales Contracts | Selling, General and Administrative Expenses | |||
Disaggregation of Revenue [Line Items] | |||
Deferred cost balance | 45 | 58 | |
MA | Capitalized Costs To Obtain Sales Contracts | |||
Disaggregation of Revenue [Line Items] | |||
Deferred cost balance | 232 | 183 | |
MA | Capitalized Costs To Obtain Sales Contracts | Selling, General and Administrative Expenses | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost, amortization | 80 | 60 | 59 |
MA | Capitalized Costs To Fulfill Sales Contracts | Selling, General and Administrative Expenses | |||
Disaggregation of Revenue [Line Items] | |||
Deferred cost balance | 33 | 44 | |
MA | Royalty Cost | Operating Expense | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost, amortization | 69 | 76 | 66 |
MIS | Capitalized Costs To Fulfill Sales Contracts | Selling, General and Administrative Expenses | |||
Disaggregation of Revenue [Line Items] | |||
Deferred cost balance | 12 | 14 | |
MIS | Capitalization of Work-In-Process for In-Progress Ratings | Operating Expense | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost, amortization | $ 54 | $ 48 | $ 47 |
Reconciliation of Weighted Av_3
Reconciliation of Weighted Average Shares Outstanding - Reconciliation of Basic to Diluted Shares Outstanding (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Basic (in shares) | 183.9 | 186.4 | 187.6 |
Dilutive effect of shares issuable under stock-based compensation plans (in shares) | 0.8 | 1.5 | 1.7 |
Diluted (in shares) | 184.7 | 187.9 | 189.3 |
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above (in shares) | 0.5 | 0.2 | 0.2 |
Accelerated Share Repurchase _2
Accelerated Share Repurchase Program - Additional Information (Details) - 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 repurchases payment | $ 500,000,000 | ||
March 1, 2022 | Accelerated Share Repurchases | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury shares repurchased (in shares) | 1.2 | ||
April 26, 2019 | 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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 1,769 | $ 1,811 |
Short-term investments | 90 | 91 |
Other assets | 1,092 | 1,034 |
Certificates of deposit and money market deposit accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 914 | 691 |
Gross Unrealized Gains | 0 | 0 |
Fair Value | 914 | 691 |
Cash and cash equivalents | 808 | 584 |
Short-term investments | 90 | 91 |
Other assets | 16 | 16 |
Mutual funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 71 | 65 |
Gross Unrealized Gains | 0 | 8 |
Fair Value | 71 | 73 |
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Other assets | $ 71 | $ 73 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments - Footnote (Detail) - Certificates of deposit and money market deposit accounts | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Short-term Investments | Minimum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 1 month | |
Short-term Investments | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 12 months | |
Other assets | Minimum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 13 months | 13 months |
Other assets | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 24 months | 29 months |
Cash and cash equivalent | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 90 days |
Cash Equivalents and Investme_5
Cash Equivalents and Investments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Company owned life insurance (at contract value) | $ 40 | $ 37 |
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 | 12 Months Ended | |
Dec. 31, 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 LIBOR | |
2017 Senior Notes due 2028 | ||
Derivative [Line Items] | ||
Notional Amount | $ 500 | 500 |
Floating Interest Rate | 3-month LIBOR | |
2020 Senior Notes due 2025 | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | 300 |
Floating Interest Rate | 6-month LIBOR | |
2014 Senior Notes due 2044 | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | 300 |
Floating Interest Rate | 3-month LIBOR | |
2018 Senior Notes due 2048 | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | 300 |
Floating Interest Rate | 3-month 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 | |
2022 Senior Notes due 2032 | ||
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest expense, net | $ (231) | $ (171) | $ (205) |
Derivative, gain (loss), statement of income or comprehensive income | Interest expense, net | Interest expense, net | Interest expense, net |
Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value changes on interest rate swaps | $ (228) | $ (60) | $ 47 |
Fair value changes on hedged debt | 228 | 60 | (47) |
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 | $ (8) | $ 23 | $ 19 |
Derivative Instruments And He_5
Derivative Instruments And Hedging Activities - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) | |
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | $ 643 | $ 410 | ||
Foreign exchange forwards amount of gain (loss) recognized in income | 0 | (13) | $ 0 | |
Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | (140) | 26 | ||
Net Investment Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | (185) | (21) | ||
Net Investment Hedging | Designated as Hedging Instrument | Cross currency swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 2,903,000,000 | |||
Accumulated other comprehensive loss | (118) | (19) | ||
Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | 45 | 47 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Cross currency swaps | ||||
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | $ (2) | $ (2) | ||
2015 Senior Notes, due 2027 | Net Investment Hedging | Designated as Hedging Instrument | Cross currency swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | € | 500,000,000 | |||
0.950% 2019 Senior Note, due 2030 | Net Investment Hedging | Designated as Hedging Instrument | Cross currency swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 750,000,000 |
Derivative Instruments And He_6
Derivative Instruments And Hedging Activities - Summary of Notional Amounts of Outstanding Cross Currency Swap (Detail) - Cross currency swaps - Net Investment Hedging € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | |
Currency Paid | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 2,903 | € 2,088 | ||
Currency Paid | Fixed Pay Weighted Average Interest Rate | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 765 | € 909 | ||
Weighted Average Interest Rate | 3.67% | 2.16% | 3.67% | 2.16% |
Currency Paid | 3-month EURIBOR | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 450 | € 1,179 | ||
Floating Interest Rate | Based on 3-month EURIBOR | Based on 3-month EURIBOR | ||
Currency Paid | Euro Short-Term Rate | ||||
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 | Fixed Received Weighted Average Interest Rate | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 800 | $ 1,050 | ||
Weighted Average 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 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
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 - Cross currency swaps € in Millions | Dec. 31, 2022 EUR (€) |
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 |
Net Investment Hedging | |
Derivative [Line Items] | |
Notional Amount | € 2,903 |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedging relationships, amount of gain/(loss) recognized in AOCI on derivative, net of tax | $ 0 | $ 0 | $ (51) |
Total, amount of gain/loss) recognized in AOCI on derivative, net of tax | 164 | 242 | (325) |
Net investment hedging relationships, amount of gain/(loss) reclassified from AOCI into income, net of tax | 0 | 1 | 1 |
Cash flow hedging relationships, amount of gain/(loss) reclassified from AOCI into income, net of tax | (2) | (2) | (2) |
Total, amount of gain/loss) reclassified from AOCI into income, net of tax | (2) | (1) | (2) |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 56 | 35 | 50 |
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 | 164 | 242 | (274) |
Net investment hedging relationships, amount of gain/(loss) reclassified from AOCI into income, net of tax | 0 | 1 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 56 | 35 | 50 |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedging relationships, amount of gain/(loss) recognized in AOCI on derivative, net of tax | 0 | 0 | (51) |
Cash flow hedging relationships, amount of gain/(loss) reclassified from AOCI into income, net of tax | (2) | (2) | (2) |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 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 | 18 | (14) |
Net investment hedging relationships, amount of gain/(loss) reclassified from AOCI into income, net of tax | 0 | 1 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Cross currency swaps | 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 | 99 | 143 | (165) |
Net investment hedging relationships, amount of gain/(loss) reclassified from AOCI into income, net of tax | 0 | 0 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 56 | 35 | 50 |
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 | 65 | 81 | (95) |
Net investment hedging relationships, amount of gain/(loss) reclassified from AOCI into income, net of tax | 0 | 0 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Interest rate contract | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedging relationships, amount of gain/(loss) recognized in AOCI on derivative, net of tax | 0 | 0 | (51) |
Cash flow hedging relationships, amount of gain/(loss) reclassified from AOCI into income, net of tax | (2) | (2) | (2) |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | $ (643) | $ (410) |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 140 | (26) |
Net Investment Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 185 | 21 |
Net Investment Hedging | Cross currency swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 118 | 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 | 38 | (27) |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | (45) | (47) |
Cash Flow Hedging | Cross currency swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 2 | 2 |
Cash Flow Hedging | Interest rate contract | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | $ (47) | $ (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 | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 JPY (¥) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 SGD ($) | Dec. 31, 2022 RUB (₽) | Dec. 31, 2022 INR (₨) | Dec. 31, 2021 USD ($) | 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 | $ 170 | £ 146 | $ 126 | £ 92 | ||||||||||||
Contracts to sell USD for Japanese yen | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 24 | ¥ 3,500 | 22 | ¥ 2,500 | ||||||||||||
Contracts to sell USD for Canadian dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 87 | $ 120 | 120 | $ 150 | ||||||||||||
Contracts to sell USD for Singapore dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 50 | $ 70 | 67 | $ 90 | ||||||||||||
Contracts to sell USD for euros | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 116 | € 115 | 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 | 19 | ₨ 1,600 | 7 | ₨ 500 | ||||||||||||
Contracts to sell GBP for USD | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | 0 | $ 231 | £ 172 | |||||||||||||
Contracts to sell euros for USD | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Notional Amount | $ 89 | € 85 | € 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 | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2021 GBP (£) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange forwards amount of gain (loss) recognized in income | $ 0 | $ (13) | $ 0 | |
FX forwards | RMS | Not Designated as Accounting Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional Amount | 1,675 | £ 1,200 | ||
FX forwards | Other non-operating expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange forwards amount of gain (loss) recognized in income | (72) | (27) | 41 | |
FX forwards | Other non-operating expense, net | RMS | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange forwards amount of gain (loss) recognized in income | $ 0 | (13) | $ 0 | |
FX forwards | Other non-operating expense, net | RMS | Not Designated as Accounting Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange forwards amount of gain (loss) recognized in income | $ (13) |
Derivative Instruments And H_12
Derivative Instruments And Hedging Activities - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 46 | $ 67 |
Liabilities | $ 1,653 | $ 1,473 |
Derivative asset, statement of financial position | Other current assets, Other assets | Other current assets, Other assets |
Derivative liability, statement of financial position | Accounts payable and accrued liabilities, Other liabilities | Accounts payable and accrued liabilities, Other liabilities |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Assets | $ 27 | $ 66 |
Liabilities | 317 | 40 |
Designated as Hedging Instrument | Long-term debt | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 1,334 | 1,421 |
Designated as Hedging Instrument | Cross currency swaps | Other assets | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 27 | 53 |
Designated as Hedging Instrument | Cross currency swaps | Other liabilities | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 78 | 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 | 239 | 23 |
Not Designated as Accounting Hedges | FX forwards | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 19 | 1 |
Not Designated as Accounting Hedges | FX forwards | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ 2 | $ 12 |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 1,625 | $ 1,357 |
Less: accumulated depreciation and amortization | (1,123) | (1,010) |
Total property and equipment, net | 502 | 347 |
Office and Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 339 | 300 |
Office and Computer Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 3 years | |
Office and Computer Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 10 years | |
Office Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 54 | 52 |
Office Furniture and Fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 3 years | |
Office Furniture and Fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 10 years | |
Internal-use Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 995 | 771 |
Internal-use Computer Software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 1 year | |
Internal-use Computer Software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 10 years | |
Leasehold Improvements and Building | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 237 | $ 234 |
Leasehold Improvements and Building | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 1 year | |
Leasehold Improvements and Building | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 20 years |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense related to property and equipment | $ 131 | $ 99 | $ 96 |
Acquisitions - Acquisitions Nar
Acquisitions - Acquisitions Narrative (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2021 USD ($) | Sep. 15, 2021 USD ($) | Mar. 19, 2021 USD ($) | Feb. 13, 2020 USD ($) | Dec. 31, 2020 USD ($) business | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Oct. 31, 2020 | |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 4,556 | $ 5,999 | $ 4,556 | $ 5,839 | |||||
MA | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 4,245 | 5,603 | 4,245 | 5,462 | |||||
Number of businesses acquired | business | 3 | ||||||||
MIS | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 311 | 396 | 311 | $ 377 | |||||
PassFort | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition interests acquired | 100% | ||||||||
Goodwill | $ 138 | ||||||||
Cash and equivalents | 10 | ||||||||
Receivables | 1 | ||||||||
Cash paid at closing | 157 | ||||||||
Consideration transferred | $ 158 | ||||||||
RMS | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition interests acquired | 100% | ||||||||
Goodwill | $ 1,357 | ||||||||
Indemnification assets related to acquisitions | 95 | ||||||||
Cash and equivalents | 55 | ||||||||
Receivables | 38 | ||||||||
Cash paid at closing | 1,922 | ||||||||
Consideration transferred | 1,927 | ||||||||
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 | ||||||||
RMS | Fair Value Adjustment to Deferred Revenue | |||||||||
Business Acquisition [Line Items] | |||||||||
Revenues | $ 18 | (22) | |||||||
Cortera | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition interests acquired | 100% | ||||||||
Goodwill | $ 79 | ||||||||
Cash and equivalents | 4 | ||||||||
Receivables | 2 | ||||||||
Cash paid at closing | 138 | ||||||||
Consideration transferred | $ 139 | ||||||||
Regulatory DataCorp | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition interests acquired | 100% | ||||||||
Goodwill | $ 494 | ||||||||
Cash and equivalents | 6 | ||||||||
Receivables | 14 | ||||||||
Cash paid at closing | 700 | ||||||||
Consideration transferred | $ 702 | ||||||||
Acquire Media, ZM Financial Systems & Catylist Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 131 | $ 131 | |||||||
Consideration transferred | $ 205 | ||||||||
Catylist Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition interests acquired | 100% | 100% | |||||||
ZM Financial Systems | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition interests acquired | 100% | 100% | |||||||
Acquire Media | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition interests acquired | 100% |
Acquisitions - Total Considerat
Acquisitions - Total Consideration Relating to Acquisition (Detail) - USD ($) $ in Millions | Nov. 30, 2021 | Sep. 15, 2021 | Mar. 19, 2021 | Feb. 13, 2020 |
PassFort | ||||
Business Acquisition [Line Items] | ||||
Cash paid at closing | $ 157 | |||
Additional consideration paid to sellers | 1 | |||
Total consideration | $ 158 | |||
RMS | ||||
Business Acquisition [Line Items] | ||||
Cash paid at closing | $ 1,922 | |||
Replacement equity compensation awards | 5 | |||
Total consideration | $ 1,927 | |||
Cortera | ||||
Business Acquisition [Line Items] | ||||
Cash paid at closing | $ 138 | |||
Additional consideration paid to sellers | 1 | |||
Total consideration | $ 139 | |||
Regulatory DataCorp | ||||
Business Acquisition [Line Items] | ||||
Cash paid at closing | $ 700 | |||
Additional consideration paid to sellers | 2 | |||
Total consideration | $ 702 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2021 | Sep. 15, 2021 | Mar. 19, 2021 | Feb. 13, 2020 | Sep. 30, 2022 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 4,556 | $ 5,839 | $ 5,999 | |||||
PassFort | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 10 | |||||||
Accounts receivable | 1 | |||||||
Total intangible assets | 23 | |||||||
Goodwill | 138 | |||||||
Liabilities: | ||||||||
Accounts payable and accrued liabilities | (7) | |||||||
Deferred revenue | (1) | |||||||
Deferred tax liabilities | (6) | |||||||
Total liabilities | (14) | |||||||
Net assets acquired | $ 158 | |||||||
Weighted average life of intangible assets acquired (in years) | 9 years | |||||||
PassFort | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 8 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 16 years | |||||||
PassFort | Product technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 14 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 5 years | |||||||
PassFort | Trade names | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 1 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 4 years | |||||||
RMS | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 55 | |||||||
Accounts receivable | 38 | |||||||
Other current assets | 12 | |||||||
Property and equipment | 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 | (96) | |||||||
Deferred revenue | (89) | |||||||
Operating lease liabilities | (68) | |||||||
Deferred tax liabilities | (214) | |||||||
Other liabilities | (2) | |||||||
Uncertain tax positions | (71) | |||||||
Total liabilities | (540) | |||||||
Net assets acquired | $ 1,927 | |||||||
Weighted average life of intangible assets acquired (in years) | 18 years | |||||||
Business combination, provisional information, initial accounting incomplete, in uncertain tax positions, decrease | $ 25 | |||||||
Goodwill, period decrease | $ 19 | |||||||
RMS | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 518 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 23 years | |||||||
RMS | Product technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 212 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 7 years | |||||||
RMS | Trade names | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 49 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 9 years | |||||||
Cortera | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 4 | |||||||
Accounts receivable | 2 | |||||||
Current assets | 7 | |||||||
Total intangible assets | 57 | |||||||
Goodwill | 79 | |||||||
Deferred tax assets, net | 16 | |||||||
Other assets | 2 | |||||||
Liabilities: | ||||||||
Accounts payable and accrued liabilities | (1) | |||||||
Deferred revenue | (4) | |||||||
Deferred tax liabilities | (15) | |||||||
Other liabilities | (2) | |||||||
Total liabilities | (22) | |||||||
Net assets acquired | $ 139 | |||||||
Weighted average life of intangible assets acquired (in years) | 11 years | |||||||
Cortera | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 9 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 18 years | |||||||
Cortera | Database | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 38 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 10 years | |||||||
Cortera | Product technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 9 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 8 years | |||||||
Cortera | Trade names | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 1 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 5 years | |||||||
Regulatory DataCorp | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 6 | |||||||
Accounts receivable | 14 | |||||||
Current assets | 24 | |||||||
Total intangible assets | 280 | |||||||
Goodwill | 494 | |||||||
Other assets | 2 | |||||||
Liabilities: | ||||||||
Accounts payable and accrued liabilities | (5) | |||||||
Deferred revenue | (20) | |||||||
Deferred tax liabilities | (71) | |||||||
Other liabilities | (2) | |||||||
Total liabilities | (98) | |||||||
Net assets acquired | $ 702 | |||||||
Weighted average life of intangible assets acquired (in years) | 19 years | |||||||
Regulatory DataCorp | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 174 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 25 years | |||||||
Regulatory DataCorp | Database | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 86 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 10 years | |||||||
Regulatory DataCorp | Product technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 17 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 4 years | |||||||
Regulatory DataCorp | Trade names | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 3 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 3 years | |||||||
Acquire Media, ZM Financial Systems & Catylist Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | 5 | |||||||
Total intangible assets | 82 | |||||||
Goodwill | 131 | |||||||
Other assets | 3 | |||||||
Liabilities: | ||||||||
Current liabilities | (8) | |||||||
Long-term liabilities | (8) | |||||||
Total liabilities | (16) | |||||||
Net assets acquired | $ 205 | |||||||
Weighted average life of intangible assets acquired (in years) | 14 years | |||||||
Acquire Media, ZM Financial Systems & Catylist Inc. | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 47 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 18 years | |||||||
Acquire Media, ZM Financial Systems & Catylist Inc. | Database | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 8 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 10 years | |||||||
Acquire Media, ZM Financial Systems & Catylist Inc. | Product technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 23 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 8 years | |||||||
Acquire Media, ZM Financial Systems & Catylist Inc. | Trade names | ||||||||
Business Acquisition [Line Items] | ||||||||
Total intangible assets | $ 4 | |||||||
Liabilities: | ||||||||
Weighted average life of intangible assets acquired acquired (in years) | 14 years |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - RMS - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Pro forma Revenue | $ 6,463 | $ 5,667 |
Pro forma Net Income attributable to Moody's | $ 2,244 | $ 1,666 |
Goodwill And Other Acquired I_3
Goodwill And Other Acquired Intangible Assets - Activity in Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance, goodwill gross | $ 6,011 | $ 4,568 |
Beginning balance, accumulated impairment charge | (12) | (12) |
Beginning balance, goodwill net | 5,999 | 4,556 |
Additions/adjustments | 92 | 1,615 |
Foreign currency translation adjustments | (252) | (172) |
Ending balance, goodwill gross | 5,851 | 6,011 |
Ending balance, accumulated impairment charge | (12) | (12) |
Ending balance, goodwill net | 5,839 | 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 | 4 | 90 |
Foreign currency translation adjustments | (23) | (5) |
Ending balance, goodwill gross | 377 | 396 |
Ending balance, accumulated impairment charge | 0 | 0 |
Ending balance, goodwill net | 377 | 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 | 88 | 1,525 |
Foreign currency translation adjustments | (229) | (167) |
Ending balance, goodwill gross | 5,474 | 5,615 |
Ending balance, accumulated impairment charge | (12) | (12) |
Ending balance, goodwill net | $ 5,462 | $ 5,603 |
Goodwill And Other Acquired I_4
Goodwill And Other Acquired Intangible Assets - Acquired Intangible Assets and Related Amortization (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, net | $ 2,210 | $ 2,467 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 2,024 | 2,101 |
Accumulated amortization | (453) | (381) |
Acquired intangible assets, net | 1,571 | 1,720 |
Software/product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 661 | 663 |
Accumulated amortization | (283) | (219) |
Acquired intangible assets, net | 378 | 444 |
Database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 178 | 179 |
Accumulated amortization | (64) | (46) |
Acquired intangible assets, net | 114 | 133 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 197 | 207 |
Accumulated amortization | (58) | (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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 200 | $ 158 | $ 124 |
Goodwill And Other Acquired I_6
Goodwill And Other Acquired Intangible Assets - Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 196 |
2024 | 187 |
2025 | 183 |
2026 | 180 |
2027 | 171 |
Thereafter | 1,293 |
Total estimated future amortization | $ 2,210 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | 27 Months Ended | |||||
Jun. 30, 2022 | Dec. 22, 2020 | Jul. 29, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2024 | |
2022 - 2023 Geolocation Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring | $ 22 | $ 0 | $ 0 | ||||
Cumulative expense incurred through December 31, 2022 | 113 | ||||||
2022 - 2023 Geolocation Restructuring Program | Employee Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative expense incurred through December 31, 2022 | 85 | ||||||
2022 - 2023 Geolocation Restructuring Program | Real Estate | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative expense incurred through December 31, 2022 | 27 | ||||||
2020 MA Strategic Reorganization Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring | 2 | 16 | 0 | ||||
Cumulative expense incurred through December 31, 2022 | 19 | ||||||
2020 MA Strategic Reorganization Restructuring Program | Employee Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative expense incurred through December 31, 2022 | 19 | ||||||
2020 MA Strategic Reorganization Restructuring Program | Real Estate | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative expense incurred through December 31, 2022 | 0 | ||||||
2020 Real Estate Rationalization Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative expense incurred through December 31, 2022 | 38 | ||||||
2020 Real Estate Rationalization Restructuring Program | Employee Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative expense incurred through December 31, 2022 | 0 | ||||||
2020 Real Estate Rationalization Restructuring Program | Real Estate | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative expense incurred through December 31, 2022 | 38 | ||||||
2018 Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring | 0 | $ 0 | $ 18 | ||||
Cumulative expense incurred through December 31, 2022 | 103 | ||||||
2018 Restructuring Program | Employee Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative expense incurred through December 31, 2022 | 55 | ||||||
2018 Restructuring Program | Real Estate | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative expense incurred through December 31, 2022 | 48 | ||||||
Estimated Annual Savings | 2020 MA Strategic Reorganization Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Effect on future earnings, amount | $ 20 | ||||||
Minimum | 2022 - 2023 Geolocation Restructuring Program | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring | $ 85 | ||||||
Minimum | 2022 - 2023 Geolocation Restructuring Program | Contract Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expected cost | 50 | ||||||
Minimum | 2022 - 2023 Geolocation Restructuring Program | Employee Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expected cost | 85 | ||||||
Minimum | 2020 MA Strategic Reorganization Restructuring Program | Employee Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative expense incurred through December 31, 2022 | $ 19 | ||||||
Minimum | Estimated Annual Savings | 2022 - 2023 Geolocation Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Effect on future earnings, amount | $ 100 | ||||||
Minimum | Estimated Annual Savings | 2020 Real Estate Rationalization Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Effect on future earnings, amount | $ 5 | ||||||
Maximum | 2022 - 2023 Geolocation Restructuring Program | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring | $ 100 | ||||||
Maximum | 2022 - 2023 Geolocation Restructuring Program | Contract Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expected cost | 70 | ||||||
Maximum | 2022 - 2023 Geolocation Restructuring Program | Employee Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expected cost | $ 100 | ||||||
Maximum | Estimated Annual Savings | 2022 - 2023 Geolocation Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Effect on future earnings, amount | $ 135 | ||||||
Maximum | Estimated Annual Savings | 2020 Real Estate Rationalization Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Effect on future earnings, amount | $ 6 |
Restructuring - Restructuring E
Restructuring - Restructuring Expenses Included in Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 114 | $ 0 | $ 50 |
Employee Termination Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 84 | 0 | 14 |
Real Estate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 29 | 0 | 36 |
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 1 | 0 | 0 |
2018 Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (2) | (4) | |
2018 Restructuring Program | Employee Termination Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (2) | (4) | |
2018 Restructuring Program | Real Estate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | 0 | |
2018 Restructuring Program | Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | 0 | |
2020 Real Estate Rationalization Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 2 | 36 | |
2020 Real Estate Rationalization Restructuring Program | Employee Termination Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | 0 | |
2020 Real Estate Rationalization Restructuring Program | Real Estate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 2 | 36 | |
2020 Real Estate Rationalization Restructuring Program | Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | 0 | |
2020 MA Strategic Reorganization Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (1) | 2 | 18 |
2020 MA Strategic Reorganization Restructuring Program | Employee Termination Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (1) | 2 | 18 |
2020 MA Strategic Reorganization Restructuring Program | Real Estate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | 0 | 0 |
2020 MA Strategic Reorganization Restructuring Program | Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | $ 0 | $ 0 |
2022 - 2023 Geolocation Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 113 | ||
2022 - 2023 Geolocation Restructuring Program | Employee Termination Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 85 | ||
2022 - 2023 Geolocation Restructuring Program | Real Estate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 27 | ||
2022 - 2023 Geolocation Restructuring Program | Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 1 |
Restructuring - Restructuring_2
Restructuring - Restructuring Expenses Included in Consolidated Statements of Operations (Footnote) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Restructuring Cost and Reserve [Line Items] | |||
Operating lease right-of-use assets | $ 346 | $ 438 | |
Level 3 | Real Estate | |||
Restructuring Cost and Reserve [Line Items] | |||
Operating lease right-of-use assets | $ 0 | $ 10 |
Restructuring - Changes in Rest
Restructuring - Changes in Restructuring Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring liability, beginning balance | $ 4 | $ 21 | $ 24 |
Restructuring liability, ending balance | $ 65 | 4 | 21 |
Restructuring, incurred cost, statement of income or comprehensive income | Restructuring Charges | ||
2018 Restructuring Program | |||
Restructuring Reserve [Roll Forward] | |||
Cost incurred and adjustments | $ 0 | (2) | (4) |
Payments for Restructuring | 0 | 0 | (18) |
Cumulative expense incurred through December 31, 2022 | 103 | ||
2018 Restructuring Program | Employee Termination Costs | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 55 | ||
2018 Restructuring Program | Real Estate | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 48 | ||
2018 Restructuring Program | Other Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 0 | ||
2020 Real Estate Rationalization Restructuring Program | |||
Restructuring Reserve [Roll Forward] | |||
Cost incurred and adjustments | 0 | (1) | 1 |
Cumulative expense incurred through December 31, 2022 | 38 | ||
2020 Real Estate Rationalization Restructuring Program | Employee Termination Costs | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 0 | ||
2020 Real Estate Rationalization Restructuring Program | Real Estate | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 38 | ||
2020 Real Estate Rationalization Restructuring Program | Other Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 0 | ||
2020 MA Strategic Reorganization Restructuring Program | |||
Restructuring Reserve [Roll Forward] | |||
Cost incurred and adjustments | (1) | 2 | 18 |
Payments for Restructuring | (2) | (16) | 0 |
Cumulative expense incurred through December 31, 2022 | 19 | ||
2020 MA Strategic Reorganization Restructuring Program | Employee Termination Costs | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 19 | ||
2020 MA Strategic Reorganization Restructuring Program | Real Estate | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 0 | ||
2020 MA Strategic Reorganization Restructuring Program | Other Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 0 | ||
2022 - 2023 Geolocation Restructuring Program | |||
Restructuring Reserve [Roll Forward] | |||
Cost incurred and adjustments | 86 | 0 | 0 |
Payments for Restructuring | (22) | $ 0 | $ 0 |
Cumulative expense incurred through December 31, 2022 | 113 | ||
2022 - 2023 Geolocation Restructuring Program | Employee Termination Costs | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 85 | ||
2022 - 2023 Geolocation Restructuring Program | Real Estate | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | 27 | ||
2022 - 2023 Geolocation Restructuring Program | Other Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Cumulative expense incurred through December 31, 2022 | $ 1 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Carried at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Derivatives | $ 46 | $ 67 |
Total | 117 | 140 |
Liabilities: | ||
Derivatives | 319 | 52 |
Total | 319 | 52 |
Mutual Fund | ||
Assets: | ||
Mutual funds | 71 | 73 |
Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Total | 71 | 73 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total | 0 | 0 |
Level 1 | Mutual Fund | ||
Assets: | ||
Mutual funds | 71 | 73 |
Level 2 | ||
Assets: | ||
Derivatives | 46 | 67 |
Total | 46 | 67 |
Liabilities: | ||
Derivatives | 319 | 52 |
Total | 319 | 52 |
Level 2 | Mutual Fund | ||
Assets: | ||
Mutual funds | $ 0 | $ 0 |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Additional Details Related to Certain Balance Sheet Captions (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Other current assets: | |||
Prepaid taxes | $ 235 | $ 112 | |
Prepaid expenses | 119 | 99 | |
Capitalized costs to obtain and fulfill sales contracts | 106 | 103 | |
Foreign exchange forwards on certain assets and liabilities | 19 | 1 | |
Other | 104 | 74 | |
Total other current assets | 583 | 389 | |
Other assets: | |||
Investments in non-consolidated affiliates | 517 | 443 | |
Deposits for real-estate leases | 15 | 14 | |
Indemnification assets related to acquisitions | 110 | 106 | |
Mutual funds and fixed deposits | 87 | 89 | |
Company owned life insurance (at contract value) | 40 | 37 | |
Costs to obtain sales contracts | 171 | 138 | |
Derivative instruments designated as accounting hedges | 27 | 66 | |
Pension and other retirement employee benefits | 40 | 77 | |
Other | 85 | 64 | |
Total other assets | 1,092 | 1,034 | |
Accounts payable and accrued liabilities: | |||
Salaries and benefits | 104 | 145 | |
Incentive compensation | 276 | 390 | |
Customer credits, advanced payments and advanced billings | 102 | 100 | |
Dividends | 6 | 6 | |
Professional service fees | 49 | 75 | |
Interest accrued on debt | 92 | 85 | |
Accounts payable | 52 | 47 | |
Income taxes | 86 | 115 | |
Pension and other retirement employee benefits | 7 | 7 | |
Accrued royalties | 23 | 36 | |
Foreign exchange forwards on certain assets and liabilities | 2 | 12 | |
Restructuring liability | 65 | 4 | |
Other | 147 | 120 | |
Total accounts payable and accrued liabilities | 1,011 | 1,142 | |
Other liabilities: | |||
Pension and other retirement employee benefits | 189 | 235 | |
Interest accrued on UTPs | 47 | 59 | $ 113 |
MAKS indemnification provisions | 23 | 33 | |
Income tax liability – non-current portion | 48 | 23 | |
Derivative instruments designated as accounting hedges | 317 | 40 | |
Other | 50 | 48 | |
Total other liabilities | $ 674 | $ 438 |
Other Balance Sheet Informati_4
Other Balance Sheet Information - Investments in Non-Consolidated Affiliates (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method investments | $ 187 | $ 121 |
Investments measured using the measurement alternative | 325 | 318 |
Other | 5 | 4 |
Total investments in non-consolidated affiliates | $ 517 | $ 443 |
Comprehensive Income And Accu_3
Comprehensive Income And Accumulated Other Comprehensive Income - Reclassification out of AOCI (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income, net | $ 38 | $ 82 | $ 46 |
Income before provision for income taxes | 1,760 | 2,755 | 2,229 |
Provision for income taxes | (386) | (541) | (452) |
Net income attributable to Moody’s | 1,374 | 2,214 | 1,778 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income attributable to Moody’s | (24) | (15) | (7) |
Losses on currency translation adjustments | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income, net | (20) | 0 | 0 |
Net income attributable to Moody’s | (20) | 0 | 0 |
Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total before income taxes | (2) | (2) | (3) |
Provision for income taxes | 0 | 0 | 1 |
Net income attributable to Moody’s | (2) | (2) | (2) |
Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Interest rate contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income, net | (3) | (2) | (3) |
Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Cross currency swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income, net | 1 | 0 | 0 |
Gains on net investment hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Income before provision for income taxes | 0 | 2 | 1 |
Provision for income taxes | 0 | (1) | 0 |
Net income attributable to Moody’s | 0 | 1 | 1 |
Gains on net investment hedges | Reclassification out of Accumulated Other Comprehensive Income | Cross currency swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income, net | 0 | 0 | 1 |
Gains on net investment hedges | Reclassification out of Accumulated Other Comprehensive Income | FX forwards | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income, net | 0 | 2 | 0 |
Pension and other retirement benefits | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Income before provision for income taxes | (3) | (19) | (8) |
Provision for income taxes | 1 | 5 | 2 |
Net income attributable to Moody’s | (2) | (14) | (6) |
Amortization of actuarial losses and prior service costs included in net income | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income, net | (3) | (11) | (6) |
Settlement charge | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income, net | $ 0 | $ (8) | $ (2) |
Comprehensive Income And Accu_4
Comprehensive Income And Accumulated Other Comprehensive Income - Changes in Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 2,916 | $ 1,763 | $ 831 |
Other comprehensive income/(loss) before reclassifications | (257) | 7 | 0 |
Amounts reclassified from AOCL | 24 | 15 | 7 |
Other comprehensive income/(loss) | (233) | 22 | 7 |
Ending Balance | 2,689 | 2,916 | 1,763 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (410) | (432) | (439) |
Ending Balance | (643) | (410) | (432) |
Pension and Other Retirement Benefits | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (49) | (118) | (92) |
Other comprehensive income/(loss) before reclassifications | 0 | 55 | (32) |
Amounts reclassified from AOCL | 2 | 14 | 6 |
Other comprehensive income/(loss) | 2 | 69 | (26) |
Ending Balance | (47) | (49) | (118) |
Gains/ (Losses) on Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (47) | (49) | 0 |
Other comprehensive income/(loss) before reclassifications | 0 | 0 | (51) |
Amounts reclassified from AOCL | 2 | 2 | 2 |
Other comprehensive income/(loss) | 2 | 2 | (49) |
Ending Balance | (45) | (47) | (49) |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (335) | (45) | (401) |
Other comprehensive income/(loss) before reclassifications | (421) | (290) | 356 |
Amounts reclassified from AOCL | 20 | 0 | 0 |
Other comprehensive income/(loss) | (401) | (290) | 356 |
Ending Balance | (736) | (335) | (45) |
Net Investment Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 21 | (220) | 54 |
Other comprehensive income/(loss) before reclassifications | 164 | 242 | (273) |
Amounts reclassified from AOCL | 0 | (1) | (1) |
Other comprehensive income/(loss) | 164 | 241 | (274) |
Ending Balance | $ 185 | $ 21 | $ (220) |
Pension And Other Retirement _3
Pension And Other Retirement Benefits - Summary of Changes in Benefit Obligations and Fair Value of Plan Assets for Post-Retirement Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation: | |||
Interest cost | $ (17) | $ (16) | $ (19) |
Amounts recorded on the consolidated balance sheets: | |||
Pension and retirement benefits asset – non current | 40 | 77 | |
Pension and retirement benefits liability – current | (7) | (7) | |
Pension and retirement benefits liability – non current | (189) | (235) | |
U.S. Plans | Pension Plans | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of the period | (570) | (663) | |
Service cost | (14) | (19) | (17) |
Interest cost | (15) | (14) | (17) |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | 20 | 68 | |
Actuarial (loss) gain | 1 | (6) | |
Assumption changes | 116 | 64 | |
Benefit obligation, end of the period | (462) | (570) | (663) |
Change in plan assets: | |||
Fair value of plan assets, beginning of the period | 544 | 528 | |
Actual return on plan assets | (111) | 34 | |
Benefits paid | (20) | (68) | |
Employer contributions | 7 | 50 | |
Plan participants’ contributions | 0 | 0 | |
Fair value of plan assets, end of the period | 420 | 544 | 528 |
Funded status of the plans | (42) | (26) | |
Amounts recorded on the consolidated balance sheets: | |||
Pension and retirement benefits asset – non current | 39 | 74 | |
Pension and retirement benefits liability – current | (5) | (5) | |
Pension and retirement benefits liability – non current | (76) | (95) | |
Net amount recognized | (42) | (26) | |
Accumulated benefit obligation, end of the period | (432) | (524) | |
U.S. Plans | Other Retirement Plans | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of the period | (48) | (48) | |
Service cost | (4) | (4) | (3) |
Interest cost | (1) | (1) | (1) |
Plan participants’ contributions | (1) | (1) | |
Benefits paid | 2 | 2 | |
Actuarial (loss) gain | 0 | (3) | |
Assumption changes | 13 | 7 | |
Benefit obligation, end of the period | (39) | (48) | (48) |
Change in plan assets: | |||
Fair value of plan assets, beginning of the period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Benefits paid | (2) | (2) | |
Employer contributions | 1 | 1 | |
Plan participants’ contributions | 1 | 1 | |
Fair value of plan assets, end of the period | 0 | 0 | $ 0 |
Funded status of the plans | (39) | (48) | |
Amounts recorded on the consolidated balance sheets: | |||
Pension and retirement benefits asset – non current | 0 | 0 | |
Pension and retirement benefits liability – current | (2) | (1) | |
Pension and retirement benefits liability – non current | (37) | (47) | |
Net amount recognized | $ (39) | $ (48) |
Pension And Other Retirement _4
Pension And Other Retirement Benefits - Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - Pension Plans - U.S. Plans - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Aggregate projected benefit obligation | $ 82 | $ 101 |
Aggregate accumulated benefit obligation | $ 72 | $ 86 |
Pension And Other Retirement _5
Pension And Other Retirement Benefits - Summary of Pre-Tax Net Actuarial Losses and Prior Service Cost Recognized in Accumulated Other Comprehensive Income (Loss) (Detail) - U.S. Plans - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Plans | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Net actuarial losses (gains) | $ (77) | $ (61) |
Net prior service credits | 2 | 3 |
Total recognized in AOCL – pretax | (75) | (58) |
Other Retirement Plans | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Net actuarial losses (gains) | 9 | (4) |
Net prior service credits | 0 | 0 |
Total recognized in AOCL – pretax | $ 9 | $ (4) |
Pension And Other Retirement _6
Pension And Other Retirement Benefits - Components of Net Periodic Benefit Expense Related to Retirement Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 17 | $ 16 | $ 19 |
U.S. Plans | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 14 | 19 | 17 |
Interest cost | 15 | 14 | 17 |
Expected return on plan assets | (26) | (27) | (20) |
Amortization of net actuarial loss and prior service credits from earlier periods | 3 | 11 | 7 |
Loss on settlement of pension obligation | 0 | 8 | 2 |
Net periodic expense | 6 | 25 | 23 |
U.S. Plans | Other Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 4 | 3 |
Interest cost | 1 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss and prior service credits from earlier periods | 0 | 1 | 0 |
Loss on settlement of pension obligation | 0 | 0 | 0 |
Net periodic expense | $ 5 | $ 6 | $ 4 |
Pension And Other Retirement _7
Pension And Other Retirement Benefits - Summary Of Pre Tax Amounts Recognized In Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (loss)/gain arising during the period | $ (1) | $ 73 | $ (42) |
U.S. Plans | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of net actuarial losses and prior service credit | 3 | 11 | 7 |
Settlement loss | 0 | 8 | 2 |
Net actuarial (loss)/gain arising during the period | (19) | 65 | (37) |
Total recognized in OCI – pre-tax | (16) | 84 | (28) |
U.S. Plans | Other Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of net actuarial losses and prior service credit | 0 | 1 | 0 |
Settlement loss | 0 | 0 | 0 |
Net actuarial (loss)/gain arising during the period | 13 | 4 | (3) |
Total recognized in OCI – pre-tax | $ 13 | $ 5 | $ (3) |
Pension And Other Retirement _8
Pension And Other Retirement Benefits - Weighted-Average Assumptions Used to Determine Benefit Obligations (Detail) - U.S. Plans | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.93% | 2.60% |
Rate of compensation increase | 3.63% | 3.63% |
Other Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.90% | 2.65% |
Rate of compensation increase | 0% | 0% |
Pension And Other Retirement _9
Pension And Other Retirement Benefits - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Expense (Detail) - U.S. Plans | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.60% | 2.24% | 3.04% |
Expected return on plan assets | 5.05% | 5.45% | 4.45% |
Rate of compensation increase | 3.63% | 3.62% | 3.64% |
Cash balance plan interest crediting rate | 4.50% | 4.50% | 4.50% |
Other Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.65% | 2.30% | 3.05% |
Expected return on plan assets | 0% | 0% | 0% |
Rate of compensation increase | 0% | 0% | 0% |
Cash balance plan interest crediting rate | 0% | 0% | 0% |
Pension and Other Retirement_10
Pension and Other Retirement Benefits - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Dividends paid on ESOP | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |
Moody's shares held in ESOP | 329,300 | 328,500 | ||
U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Employee contribution percentage of employee contribution in participation | 50% | |||
Maximum employee contribution in profit participation plan | 3% | |||
Defined contribution compensation expense | $ 35,000,000 | $ 54,000,000 | $ 44,000,000 | |
U.S. Plans | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Expected rate of return | 5.05% | 5.45% | 4.45% | |
Employer contributions | $ 7,000,000 | $ 50,000,000 | ||
U.S. Plans | Other Retirement Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Expected rate of return | 0% | 0% | 0% | |
Employer contributions | $ 1,000,000 | $ 1,000,000 | ||
U.S. Plans | Equity Securities | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 33% | |||
U.S. Plans | Equity Securities | Pension Plans | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 28% | |||
U.S. Plans | Equity Securities | Pension Plans | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 38% | |||
U.S. Plans | Fixed Income Securities | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 62% | |||
U.S. Plans | Fixed Income Securities | Pension Plans | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 57% | |||
U.S. Plans | Fixed Income Securities | Pension Plans | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 67% | |||
U.S. Plans | Other Investments | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 5% | |||
U.S. Plans | Other Investments | Pension Plans | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 2% | |||
U.S. Plans | Other Investments | Pension Plans | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 8% | |||
Non-U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Defined contribution compensation expense | $ 37,000,000 | 32,000,000 | $ 29,000,000 | |
Unfunded Plan | U.S. Plans | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Employer contributions | $ 7,000,000 | $ 50,000,000 | ||
Forecast | U.S. Plans | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Expected rate of return | 6.55% | |||
Forecast | Funded Plan | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Employer contributions | $ 0 | |||
Forecast | Unfunded Plan | Other Retirement Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Employer contributions | 0 | |||
Forecast | Unfunded Plan | U.S. Plans | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Employer contributions | $ 6,000,000 |
Pension And Other Retirement_11
Pension And Other Retirement Benefits - Summary of Pension Plan Assets by Category Based on Hierarchy of Fair Value Measurements (Detail) - Pension Plans - U.S. Plans - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 420 | $ 544 | $ 528 |
Percent of total assets | 100% | 100% | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 38 | $ 41 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 317 | 434 | |
Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 65 | 69 | |
Cash and cash equivalent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 5 | $ 4 | |
Percent of total assets | 1% | 1% | |
Cash and cash equivalent | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 5 | $ 4 | |
Total equity investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 132 | $ 185 | |
Percent of total assets | 31% | 34% | |
Total equity investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 132 | $ 185 | |
U.S. large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 96 | $ 135 | |
Percent of total assets | 23% | 25% | |
U.S. large-cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 96 | $ 135 | |
U.S. small and mid-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 17 | $ 23 | |
Percent of total assets | 4% | 4% | |
U.S. small and mid-cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 17 | $ 23 | |
Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 19 | $ 27 | |
Percent of total assets | 5% | 5% | |
Emerging markets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 19 | $ 27 | |
Total fixed-income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 256 | $ 330 | |
Percent of total assets | 61% | 61% | |
Total fixed-income investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 38 | $ 41 | |
Total fixed-income investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 180 | 245 | |
Total fixed-income investments | Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 38 | 44 | |
Emerging markets bond fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 26 | $ 30 | |
Percent of total assets | 6% | 6% | |
Emerging markets bond fund | Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 26 | $ 30 | |
Intermediate-term investment grade U.S. government/ corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 54 | $ 68 | |
Percent of total assets | 13% | 13% | |
Intermediate-term investment grade U.S. government/ corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 54 | $ 68 | |
Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 126 | $ 177 | |
Percent of total assets | 30% | 33% | |
Corporate Bond Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 0 | $ 0 | |
Corporate Bond Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 126 | 177 | |
U.S. Treasury Inflation-Protected Securities (TIPs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 24 | $ 24 | |
Percent of total assets | 6% | 4% | |
U.S. Treasury Inflation-Protected Securities (TIPs) | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 24 | $ 24 | |
Convertible securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 14 | $ 17 | |
Percent of total assets | 3% | 3% | |
Convertible securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 14 | $ 17 | |
Private investment fund—high yield securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 12 | $ 14 | |
Percent of total assets | 3% | 3% | |
Private investment fund—high yield securities | Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 12 | $ 14 | |
Other investment—private real estate fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 27 | $ 25 | |
Percent of total assets | 6% | 4% | |
Other investment—private real estate fund | Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 27 | $ 25 |
Pension And Other Retirement_12
Pension And Other Retirement Benefits - Estimated Future Benefits Payments for Retirement Plans (Detail) - U.S. Plans $ in Millions | Dec. 31, 2022 USD ($) |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 22 |
2024 | 25 |
2025 | 31 |
2026 | 29 |
2027 | 30 |
2028 - 2032 | 160 |
Other Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 2 |
2024 | 2 |
2025 | 2 |
2026 | 2 |
2027 | 3 |
2028 - 2032 | $ 17 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Sep. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RMS | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of equity interest in RMS prior to obtaining a controlling interest | $ 33 | |||
Consideration transferred | 5 | |||
Share-based payment arrangement, expense | $ 28 | |||
Equity Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 14 | |||
Weighted average period to recognize expense | 2 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 216 | |||
Weighted average period to recognize expense | 2 years 4 months 24 days | |||
Performance Based Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 22 | |||
Weighted average period to recognize expense | 1 year 4 months 24 days | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserve for issuance or grant (shares) | 6 | |||
Discount allowed to employees on purchase of shares under ESPP plan | 5% | 5% | 5% | |
1998 and 2001 Plan | Equity Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
1998 and 2001 Plan | Performance Based Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
1998 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserve for issuance or grant (shares) | 33 | |||
2001 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserve for issuance or grant (shares) | 50.6 | |||
2001 Plan | Instruments Other Than Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserve for issuance or grant (shares) | 14 | |||
RMS Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserve for issuance or grant (shares) | 1.2 | |||
Award vesting period (in years) | 4 years | |||
Directors' Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserve for issuance or grant (shares) | 1.7 | |||
Award vesting period (in years) | 1 year | |||
Minimum | Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee subscription rate as a percentage of compensation | 1% | |||
Minimum | 1998 and 2001 Plan | Equity Option | Employees at or Near Retirement Eligibility | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 1 year | |||
Maximum | Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee subscription rate as a percentage of compensation | 10% | |||
Maximum | 1998 and 2001 Plan | Equity Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Maximum | 1998 and 2001 Plan | Equity Option | Employees at or Near Retirement Eligibility | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Maximum | RMS Plan | Equity Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Stock-Based Compensation Cost and Associated Tax Benefit (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 169 | $ 175 | $ 154 |
Tax benefit | $ 41 | $ 42 | $ 30 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Weighted Average Assumptions used in Determining Fair Value for Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected dividend yield | 0.86% | 0.89% | 0.80% |
Expected stock volatility | 27% | 28% | 23% |
Risk-free interest rate | 1.91% | 0.82% | 1.43% |
Expected holding period (in years) | 5 years 7 months 6 days | 5 years 7 months 6 days | 5 years 8 months 12 days |
Weighted average grant date fair value per share (in USD per share) | $ 84 | $ 121.14 | $ 60.66 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Summary of Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Shares | |
Shares, outstanding, beginning balance (in shares) | shares | 1 |
Shares, granted (in shares) | shares | 0.1 |
Shares, exercised (in shares) | shares | (0.1) |
Shares, outstanding, ending balance (in shares) | shares | 1 |
Shares, vested and expected to vest (in shares) | shares | 1 |
Shares, exercisable (in shares) | shares | 0.7 |
Weighted Average Exercise Price Per Share | |
Weighted average exercise price per share, beginning balance (in USD per share) | $ / shares | $ 166.16 |
Weighted average exercise price per share, granted (in USD per share) | $ / shares | 324.64 |
Weighted average exercise price per share, exercised (in USD per share) | $ / shares | 148.28 |
Weighted average exercise price per share, ending balance (in USD per share) | $ / shares | 181.35 |
Weighted average exercise price per share, vested and expected to vest (in USD per share) | $ / shares | 181.01 |
Weighted average exercise price per share, exercisable (in USD per share) | $ / shares | $ 139.08 |
Weighted Average Remaining Contractual Term | |
Weighted average remaining contractual term, outstanding (in years) | 5 years 2 months 12 days |
Weighted average remaining contractual term, vested and expected to vest (in years) | 5 years 2 months 12 days |
Weighted average remaining contractual term (in years) | 4 years |
Aggregate Intrinsic Value | |
Aggregate intrinsic value, outstanding | $ | $ 107 |
Aggregate intrinsic value, vested and expected to vest | $ | 107 |
Aggregate intrinsic value, exercisable | $ | $ 99 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Stock Option Exercises and Restricted Stock Vesting (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Proceeds from stock option exercises | $ 8 | $ 24 | $ 39 |
Aggregate intrinsic value | 9 | 55 | 132 |
Tax benefit realized upon exercise | 2 | 13 | 32 |
Restricted Stock | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Fair value of shares vested | 180 | 194 | 202 |
Tax benefit realized upon vesting | 42 | 46 | 46 |
Performance Based Restricted Stock | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Fair value of shares vested | 50 | 28 | 70 |
Tax benefit realized upon vesting | $ 7 | $ 7 | $ 17 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Summary of Nonvested Restricted Stock (Details) - Non Vested Restricted Stock shares in Millions | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Shares | |
Shares, beginning balance (in shares) | shares | 1.4 |
Shares, granted (in shares) | shares | 0.6 |
Shares, vested (in shares) | shares | (0.6) |
Shares, forfeited (in shares) | shares | (0.1) |
Shares, ending balance (in shares) | shares | 1.3 |
Weighted Average Grant Date Fair Value Per Share | |
Weighted average grant date fair value per share, beginning balance (in USD per share) | $ / shares | $ 253.85 |
Weighted average grant date fair value per share, granted (in USD per share) | $ / shares | 318.88 |
Weighted average grant date fair value per share, vested (in USD per share) | $ / shares | 229.86 |
Weighted average grant date fair value per share, forfeited (in USD per share) | $ / shares | 281.24 |
Weighted average grant date fair value per share, ending balance (in USD per share) | $ / shares | $ 288.47 |
Stock-Based Compensation Plan_8
Stock-Based Compensation Plans - Summary of Performance Based Restricted Stock (Details) - Performance Based Restricted Stock shares in Millions | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Performance-Based Restricted Stock | |
Shares, beginning balance (in shares) | shares | 0.4 |
Shares, granted (in shares) | shares | 0.1 |
Shares, vested (in shares) | shares | (0.2) |
Shares, ending balance (in shares) | shares | 0.3 |
Performance based restricted stock, Weighted Average Grant Date Fair Value Per Share | |
Weighted average grant date fair value per share, beginning balance (in USD per share) | $ / shares | $ 266.89 |
Weighted average grant date fair value per share, granted (in USD per share) | $ / shares | 310.62 |
Weighted average grant date fair value per share, vested (in USD per share) | $ / shares | 169.80 |
Weighted average grant date fair value per share, ending balance (in USD per share) | $ / shares | $ 303.80 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 106 | $ 404 | $ 213 |
State and Local | 17 | 106 | 68 |
Non-U.S. | 215 | 249 | 215 |
Total current | 338 | 759 | 496 |
Deferred: | |||
Federal | 57 | (172) | 6 |
State and Local | 10 | (45) | 0 |
Non-U.S. | (19) | (1) | (50) |
Total deferred | 48 | (218) | (44) |
Total provision for income taxes | $ 386 | $ 541 | $ 452 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income Before Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory tax rate | 21% | 21% | 21% |
State and local taxes, net of federal tax benefit | 0.80% | 1.50% | 2.30% |
Benefit of foreign operations | (0.20%) | (1.50%) | (1.50%) |
Other | 0.30% | (1.40%) | (1.50%) |
Effective tax rate | 21.90% | 19.60% | 20.30% |
Income tax paid | $ 488 | $ 932 | $ 514 |
Income Taxes - Source of income
Income Taxes - Source of income Before Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 804 | $ 1,563 | $ 1,349 |
Non-U.S. | 956 | 1,192 | 880 |
Income before provision for income taxes | $ 1,760 | $ 2,755 | $ 2,229 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||||
Account receivable allowances | $ 9 | $ 8 | ||
Accumulated depreciation and amortization | 15 | 10 | ||
Stock-based compensation | 57 | 50 | ||
Accrued compensation and benefits | 51 | 101 | ||
Capitalized costs | 27 | 33 | ||
Operating lease liabilities | 115 | 134 | ||
Deferred revenue | 206 | 252 | ||
Net operating loss | 36 | 33 | ||
Restructuring | 11 | 1 | ||
Uncertain tax positions | 68 | 86 | ||
Self-insured related reserves | 12 | 10 | ||
Loss on net investment hedges - OCI | 0 | 11 | ||
Other | 14 | 16 | ||
Total deferred tax assets | 621 | 745 | ||
Deferred tax liabilities: | ||||
Accumulated depreciation and amortization of intangible assets and capitalized software | (593) | (659) | ||
ROU Assets | (82) | (102) | ||
Capital gains | (29) | (31) | ||
Self-insured related income | (12) | (10) | ||
Revenue Accounting Standard - ASC 606 | (5) | (7) | ||
Deferred tax on unremitted foreign earnings | (13) | (12) | ||
Gain on net investment hedges - OCI | (48) | (4) | ||
Other | (9) | (6) | ||
Total deferred tax liabilities | (791) | (831) | ||
Net deferred tax liabilities | (170) | (86) | ||
Valuation allowance | (21) | (18) | $ (15) | $ (9) |
Net deferred tax liabilities | $ (191) | $ (104) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Income Tax Contingency [Line Items] | |||||
Revision of estimated repatriation tax liability resulting from tax reform legislation | $ 236 | ||||
Revision of estimated repatriation tax liability resulting from tax reform legislation, due at end of year | $ 48 | ||||
Excess tax benefits from stock compensation | 19 | ||||
Excess benefits from resolution of certain UTPs | 30 | ||||
Decrease to uncertain tax positions | 12 | ||||
Valuation allowance | 21 | $ 18 | $ 15 | $ 9 | |
Unrecognized tax benefits | 322 | 388 | 483 | $ 477 | |
Uncertain tax positions if recognized would impact the effective tax rate | 297 | ||||
Interest accrued on UTPs | $ 47 | $ 59 | $ 113 | ||
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. |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Uncertain Tax Positions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits | |||
Unrecognized tax positions, beginning balance | $ 388 | $ 483 | $ 477 |
Additions for tax positions related to the current year | 12 | 102 | 37 |
Additions for tax positions of prior years | 12 | 18 | 17 |
Reductions for tax positions of prior years | (27) | 0 | (2) |
Settlements with taxing authorities | (30) | (134) | (5) |
Lapse of statute of limitations | (33) | (81) | (41) |
Unrecognized tax positions, ending balance | $ 322 | $ 388 | $ 483 |
Indebtedness - Summary of Total
Indebtedness - Summary of Total Indebtedness (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal Amount | $ 7,734 | $ 7,521 |
Fair Value of Interest Rate Swap | (239) | (10) |
Unamortized (Discount) Premium | (55) | (48) |
Unamortized Debt Issuance Costs | (51) | (50) |
Carrying Amount | $ 7,389 | $ 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 | (4) | (5) |
Carrying Amount | $ 557 | $ 591 |
1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 1.75% | 1.75% |
Principal Amount | $ 534 | $ 568 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | 0 | 0 |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 532 | $ 566 |
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 | |
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 | (37) | 8 |
Unamortized (Discount) Premium | (3) | (3) |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 458 | $ 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 | (42) | 0 |
Unamortized (Discount) Premium | (2) | (2) |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 354 | $ 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% 2019 Senior Notes, due 2030 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 0.95% | 0.95% |
Principal Amount | $ 800 | $ 853 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (2) | (2) |
Unamortized Debt Issuance Costs | (4) | (5) |
Carrying Amount | $ 794 | $ 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 | (27) | (9) |
Unamortized (Discount) Premium | (1) | (1) |
Unamortized Debt Issuance Costs | (3) | (4) |
Carrying Amount | $ 669 | $ 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 | $ 300 | $ 500 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (2) | (4) |
Unamortized Debt Issuance Costs | (3) | (5) |
Carrying Amount | $ 295 | $ 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 | (35) | |
Unamortized (Discount) Premium | (8) | |
Unamortized Debt Issuance Costs | (5) | |
Carrying Amount | $ 452 | |
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 - Schedule of Cred
Indebtedness - Schedule of Credit Facilities (Details) - 2021 Credit Facility - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 17, 2021 |
Line of Credit Facility [Line Items] | |||
Maximum Borrowing Capacity | $ 1,250,000,000 | ||
Drawn | $ 0 | $ 0 | |
Undrawn | $ 1,250,000,000 | $ 1,250,000,000 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 17, 2021 | Aug. 03, 2016 | |
Debt Instrument [Line Items] | ||||||
Gain on extinguishment of debt | $ 70,000,000 | $ 0 | $ 0 | |||
Debt instrument, covenant compliance | At December 31, 2022, the Company was in compliance with all covenants contained within all of the debt agreements. All the debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of December 31, 2022, there were no such cross defaults. | |||||
Benefit pursuant to the resolution of tax matters | $ 45,000,000 | |||||
2017 Senior Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 500,000,000 | |||||
Senior unsecured notes, interest | 2.625% | |||||
2.55% 2020 Senior Notes, due 2060 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 126,000,000 | |||||
Senior unsecured notes, interest | 2.55% | 2.55% | 2.55% | |||
Extinguishment of debt, amount | $ 200,000,000 | |||||
Gain on extinguishment of debt | 70,000,000 | |||||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ 4,000,000 | $ 4,000,000 | ||||
3.10% 2021 Senior Notes, due 2061 | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured notes, interest | 3.10% | 3.10% | 3.10% | |||
2.75% 2021 Senior Notes, due 2041 | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured notes, interest | 2.75% | 2.75% | 2.75% | |||
3.25% 2020 Senior Notes, due 2050 | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured notes, interest | 3.25% | 3.25% | 3.25% | |||
2021 Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,250,000,000 | |||||
2021 Credit Facility | Term Loan Facility Any Fiscal Quarter | ||||||
Debt Instrument [Line Items] | ||||||
Debt/EBITDA ratio | 4 | |||||
2021 Credit Facility | First Three Consecutive Quarters immediately following Any Acquisition | ||||||
Debt Instrument [Line Items] | ||||||
Debt/EBITDA ratio | 4.5 | |||||
2021 Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Facility fee basis points | 0.07% | |||||
Contingent consideration arising from acquisitions, payment or settlement | $ 500,000,000 | $ 500,000,000 | ||||
2021 Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Facility fee basis points | 0.15% | |||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||
Commercial paper | $ 0 | $ 0 | ||||
Commercial Paper | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Term | 397 days | |||||
Adjusted LIBOR | 2021 Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 0.805% | |||||
Adjusted LIBOR | 2021 Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.225% |
Indebtedness - Principal Paymen
Indebtedness - Principal Payments Due on Long-Term Borrowings (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 0 | |
2024 | 500 | |
2025 | 700 | |
2026 | 0 | |
2027 | 534 | |
Thereafter | 6,000 | |
Total principal payment | $ 7,734 | $ 7,521 |
Indebtedness - Summary of Compo
Indebtedness - Summary of Components of Interest as Presented in Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Expense on borrowings | $ (216) | $ (185) | $ (163) |
(Expense) income on UTPs and other tax related liabilities(1) | (13) | 21 | (34) |
Net periodic pension costs--interest component | (17) | (16) | (19) |
Income | 15 | 9 | 11 |
Interest expense, net | (231) | (171) | (205) |
Interest paid | $ 198 | $ 162 | $ 132 |
Indebtedness - Fair Value and C
Indebtedness - Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Carrying Amount | $ 7,389 | $ 7,413 |
Level 2 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | $ 6,564 | $ 7,982 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - $ / shares | 12 Months Ended | |||
Jan. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||||
All classes of stock, shares authorized (in shares) | 1,020,000,000 | |||
Shares of all classes of stock, par value (in usd per share) | $ 0.01 | |||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Shares issued during the period for stock-based compensation plans (in shares) | 600,000 | |||
Series Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Treasury Stock | ||||
Class of Stock [Line Items] | ||||
Treasury shares repurchased (in shares) | 3,100,000 | 2,200,000 | 2,000,000 | |
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Dividend declared, declaration date | Jan. 30, 2023 | |||
Quarterly dividend declared (in dollars per share) | $ 0.77 | |||
Dividend declared, payable date | Mar. 17, 2023 | |||
Dividend declared, record date | Feb. 24, 2023 |
Capital Stock - Share Repurchas
Capital Stock - Share Repurchase Programs (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Equity, Class of Treasury Stock [Line Items] | |
Remaining Authority | $ 848 |
February 8. 2022 | |
Equity, Class of Treasury Stock [Line Items] | |
Amount Authorized | 750 |
Remaining Authority | 750 |
February 9, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |
Amount Authorized | 1,000 |
Remaining Authority | $ 98 |
Capital Stock - Dividends Paid
Capital Stock - Dividends Paid (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |||||||||||||||
Dividends declared per share (in USD per share) | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.56 | $ 0.56 | $ 0.56 | $ 0.56 | $ 2.80 | $ 2.48 | $ 2.24 |
Dividends per share paid (in USD per share) | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.56 | $ 0.56 | $ 0.56 | $ 0.56 | $ 2.80 | $ 2.48 | $ 2.24 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Charges | |
Lessee, Lease, Description [Line Items] | |
Impairment of right-of-use | $ 23 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term | 20 years |
Lease Commitments - Components
Lease Commitments - Components of Lease Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 102 | $ 98 | $ 96 |
Sublease income | (7) | (6) | (5) |
Variable lease cost | 20 | 19 | 19 |
Total lease cost | $ 115 | $ 111 | $ 110 |
Lease Commitments - Operating L
Lease Commitments - Operating Leases Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 118 | $ 113 | $ 108 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 35 | $ 137 | $ 36 |
Weighted-average remaining lease term (years) | 4 years 10 months 24 days | 5 years 7 months 6 days | 6 years |
Weighted-average discount rate applied to operating leases (percent) | 3.10% | 3.10% | 3.60% |
Lease Commitments - Operating_2
Lease Commitments - Operating Leases, Future Minimum Payment (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 119 | |
2024 | 111 | |
2025 | 98 | |
2026 | 79 | |
2027 | 64 | |
Thereafter | 40 | |
Total lease payments (undiscounted) | 511 | |
Less: Interest | 37 | |
Present value of lease liabilities: | 474 | |
Lease liabilities - current | 106 | $ 105 |
Lease liabilities - noncurrent | $ 368 | $ 455 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) segment lineOfBusiness | |
Segment Reporting Information [Line Items] | |
Number of operating segments | segment | 2 |
Number of reportable segments | segment | 2 |
MIS | |
Segment Reporting Information [Line Items] | |
Number of lines of business | lineOfBusiness | 5 |
MA | |
Segment Reporting Information [Line Items] | |
Number of lines of business | lineOfBusiness | 3 |
2022 - 2023 Geolocation Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | $ 113 |
2022 - 2023 Geolocation Restructuring Program | MIS | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 64 |
2022 - 2023 Geolocation Restructuring Program | MIS | Minimum | |
Segment Reporting Information [Line Items] | |
Restructuring expected cost | 70 |
2022 - 2023 Geolocation Restructuring Program | MIS | Maximum | |
Segment Reporting Information [Line Items] | |
Restructuring expected cost | 90 |
2022 - 2023 Geolocation Restructuring Program | MA | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 49 |
2022 - 2023 Geolocation Restructuring Program | MA | Minimum | |
Segment Reporting Information [Line Items] | |
Restructuring expected cost | 65 |
2022 - 2023 Geolocation Restructuring Program | MA | Maximum | |
Segment Reporting Information [Line Items] | |
Restructuring expected cost | $ 80 |
Segment Information - Financial
Segment Information - Financial Information by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Revenue | $ 5,468 | $ 6,218 | $ 5,371 |
Operating, SG&A | 3,140 | 3,117 | 2,704 |
Adjusted Operating Income | 2,328 | 3,101 | 2,667 |
Depreciation and amortization | 331 | 257 | 220 |
Restructuring | 114 | 0 | 50 |
Loss pursuant to the divestiture of MAKS | 0 | 0 | 9 |
Operating income | 1,883 | 2,844 | 2,388 |
Eliminations | |||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Revenue | (182) | (172) | (155) |
Operating, SG&A | (182) | (172) | (155) |
Adjusted Operating Income | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 |
Restructuring | 0 | 0 | 0 |
Loss pursuant to the divestiture of MAKS | 0 | ||
MIS | |||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Revenue | 2,699 | 3,812 | 3,292 |
MIS | Eliminations | |||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Revenue | 174 | 165 | 148 |
MIS | Operating Segments | |||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Revenue | 2,873 | 3,977 | 3,440 |
Operating, SG&A | 1,385 | 1,503 | 1,387 |
Adjusted Operating Income | 1,488 | 2,474 | 2,053 |
Depreciation and amortization | 81 | 72 | 70 |
Restructuring | 65 | (1) | 19 |
Loss pursuant to the divestiture of MAKS | 0 | ||
MA | |||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Revenue | 2,769 | 2,406 | 2,079 |
MA | Eliminations | |||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Revenue | 8 | 7 | 7 |
MA | Operating Segments | |||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Revenue | 2,777 | 2,413 | 2,086 |
Operating, SG&A | 1,937 | 1,786 | 1,472 |
Adjusted Operating Income | 840 | 627 | 614 |
Depreciation and amortization | 250 | 185 | 150 |
Restructuring | $ 49 | $ 1 | 31 |
Loss pursuant to the divestiture of MAKS | $ 9 |
Segment Information - Cumulativ
Segment Information - Cumulative Restructuring Expense (Details) $ in Millions | Dec. 31, 2022 USD ($) |
2018 Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | $ 103 |
2020 Real Estate Rationalization Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 38 |
2020 MA Strategic Reorganization Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 19 |
2022 - 2023 Geolocation Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 113 |
MIS | 2018 Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 60 |
MIS | 2020 Real Estate Rationalization Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 22 |
MIS | 2020 MA Strategic Reorganization Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 0 |
MIS | 2022 - 2023 Geolocation Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 64 |
MA | 2018 Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 43 |
MA | 2020 Real Estate Rationalization Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 16 |
MA | 2020 MA Strategic Reorganization Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | 19 |
MA | 2022 - 2023 Geolocation Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cumulative expense incurred through December 31, 2022 | $ 49 |
Segment Information - Consolida
Segment Information - Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 5,468 | $ 6,218 | $ 5,371 |
Long-lived assets | 8,897 | 9,251 | 7,051 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,873 | 3,383 | 2,955 |
Long-lived assets | 4,408 | 4,449 | 2,162 |
Non-U.S. | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,595 | 2,835 | 2,416 |
Long-lived assets | 4,489 | 4,802 | 4,889 |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,682 | 1,885 | 1,545 |
Asia-Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenue | 556 | 603 | 571 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 357 | $ 347 | $ 300 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts - Summary of Activity for Valuation Allowances (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance, accounts receivable allowance | $ (32) | $ (34) | $ (20) | |
Charged to costs and expenses, accounts receivable allowance | (25) | (13) | (26) | |
Deductions, accounts receivable allowance | 17 | 15 | 14 | |
Ending balance, accounts receivable allowance | (40) | (32) | (34) | $ (20) |
Beginning balance, deferred tax assets valuation allowance | (18) | (15) | (9) | |
Charged to costs and expenses, deferred tax assets valuation allowance | (4) | (4) | (6) | |
Deductions, deferred tax assets valuation allowance | 1 | 1 | 0 | |
Ending balance, deferred tax assets valuation allowance | $ (21) | $ (18) | $ (15) | $ (9) |
Accounting standards update | Accounting Standards Update 2016-13 [Member] | Accounting Standards Update 2016-13 [Member] | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance, accounts receivable allowance | $ 2 | |||
Ending balance, accounts receivable allowance | $ 2 |
Components of Other Non-Operati
Components of Other Non-Operating (Expense) Income, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
FX (loss) gain | $ (10) | $ (1) | $ 2 |
Purchase Price Hedge Loss | 0 | (13) | 0 |
Net periodic pension costs—other components | 24 | 9 | 13 |
Income from investments in non-consolidated affiliates | 17 | 60 | 6 |
Other | 7 | 27 | 25 |
Total | 38 | 82 | 46 |
Foreign currency translation adjustments - reclassification of losses included in net income - Pre Tax | 20 | 0 | 0 |
Disposal group, including discontinued operation, foreign currency translation losses | (20) | ||
Non-cash gain related to minority interest in Bitsight | $ 0 | $ 36 | $ 0 |