Moody's (MCO) 10-Q 5 Nov 09 2009 Q3 Quarterly report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Revenue	451.8	433.4	1311.4	1351.7
Expenses
Operating	135.1	122.7	385.5	365.9
Selling, general and administrative	124.3	108.1	351.2	321.8
Restructuring	3.7	-1.8	18.6	-2.7
Depreciation and amortization	16.2	14.6	47.5	43.9
Total expenses	279.3	243.6	802.8	728.9
Operating income	172.5	189.8	508.6	622.8
Non-operating (expense) income, net
Interest (expense) income, net	-11.5	-12.6	-20.9	-36.5
Other non-operating (expense) income, net	1.7	7.5	-8.8	18.9
Total non-operating (expense) income, net	-9.8	-5.1	-29.7	-17.6
Income before provision for income taxes	162.7	184.7	478.9	605.2
Provision for income taxes	61	70.9	175.1	232.6
Net income	101.7	113.8	303.8	372.6
Less: Net income attributable to noncontrolling interests	1.1	0.8	3.7	3.7
Net income attributable to Moody's	100.6	$113	300.1	368.9
Earnings per share attributable to Moody's common shareholders
Basic	0.43	0.47	1.27	1.51
Diluted	0.42	0.46	1.26	1.49
Weighted average number of shares outstanding
Basic	236.4	241.3	236	244.4
Diluted	238.2	244.6	237.6	247.9
Dividends declared per share attributable to Moody's common shareholders	0.1	0.1	0.2	0.2

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Dec. 31, 2008
Current assets:
Cash and cash equivalents	422.7	245.9
Short-term investments	6.8	7.1
Accounts receivable, net of allowances of $25.7 in 2009 and $23.9 in 2008	378.9	421.8
Deferred tax assets, net	26.1	26.5
Other current assets	62	107.8
Total current assets	896.5	809.1
Property and equipment, net of accumulated depreciation of $165.1 in 2009 and $130.4 in 2008	278.6	247.7
Goodwill	350.4	338
Intangible assets, net	104.2	114
Deferred tax assets, net	195	220.1
Other assets	49.5	44.5
Total assets	1874.2	1773.4
Current liabilities:
Accounts payable and accrued liabilities	241.9	240.4
Commercial paper	531	104.7
Revolving credit facility	0	613
Current portion of long-term debt	1.9	0
Deferred revenue	427.5	435
Total current liabilities	1202.3	1393.1
Non-current portion of deferred revenue	107.1	114.8
Long-term debt	748.1	750
Deferred tax liabilities, net	22.8	19
Unrecognized tax benefits	158.3	185.1
Other liabilities	283.1	297.5
Total liabilities	2521.7	2759.5
Contingencies (Note 11)	-	-
Shareholders' deficit:
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding	0	0
Capital surplus	387.6	392.7
Retained earnings	3275.8	3023.2
Treasury stock, at cost; 106,439,447 and 107,757,537 shares of common stock at September 30, 2009 and December 31, 2008, respectively	-4304.5	-4361.6
Accumulated other comprehensive loss	-19.2	-52.1
Total Moody's shareholders' deficit	-656.9	-994.4
Noncontrolling interests	9.4	8.3
Total shareholders' deficit	-647.5	-986.1
Total liabilities and shareholders' deficit	1874.2	1773.4
Series common stock
Shareholders' deficit:
Common stock	0	0
Common stock
Shareholders' deficit:
Common stock	3.4	3.4

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions, except Share data	Sep. 30, 2009	Dec. 31, 2008
Accounts receivable, allowances	25.7	23.9
Property and equipment, accumulated depreciation	165.1	130.4
Preferred stock, par value	0.01	0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock, shares	106,439,447	107,757,537
Series common stock
Common stock, par value	0.01	0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Common stock
Common stock, par value	0.01	0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	342,902,272	342,902,272

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows from operating activities
Net income	303.8	372.6
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	47.5	43.9
Stock-based compensation expense	44.4	46.3
Excess tax benefits from stock-based compensation plans	-3.2	-7.4
Legacy Tax	0	-7.8
Changes in assets and liabilities:
Accounts receivable	51.3	89.4
Other current assets	45.1	-18.6
Other assets	9.4	14.4
Accounts payable and accrued liabilities	7.1	-123.2
Restructuring	7.8	-24.4
Deferred revenue	-22.8	-30.7
Unrecognized tax benefits	-26.8	28.6
Other liabilities	(7)	22.3
Net cash provided by operating activities	456.6	405.4
Cash flows from investing activities
Capital additions	-64.3	-65.4
Purchases of short-term investments	-10.7	-6.9
Sales and maturities of short-term investments	11.5	11.1
Cash paid for acquisitions, net of cash acquired	-0.9	-39.2
Insurance recovery	0	0.9
Net cash used in investing activities	-64.4	-99.5
Cash flows from financing activities
Borrowings under revolving credit facilities	2,412	2315.2
Repayments of borrowings under revolving credit facilities	(3,025)	-1721.2
Issuance of commercial paper	7,703	10880.2
Repayments of commercial paper	-7276.6	-11377.1
Proceeds from term loan	0	150
Net proceeds from stock-based compensation plans	14.6	22.3
Cost of treasury shares repurchased	0	-472.9
Excess tax benefits from stock-based compensation plans	3.2	7.4
Payment of dividends to MCO shareholders	-70.8	-73.3
Payment of dividends to noncontrolling interests	-2.9	(5)
Debt issuance costs and related fees	0	-0.7
Payments under capital lease obligations	-1.1	-1.3
Net cash used in financing activities	-243.6	-276.4
Effect of exchange rate changes on cash and cash equivalents	28.2	-17.2
Net increase in cash and cash equivalents	176.8	12.3
Cash and cash equivalents, beginning of the period	245.9	426.3
Cash and cash equivalents, end of the period	422.7	438.6

GLOSSARY OF TERMS AND ABBREVIAT

GLOSSARY OF TERMS AND ABBREVIATIONS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
GLOSSARY OF TERMS AND ABBREVIATIONS	GLOSSARY OF TERMS AND ABBREVIATIONS The following terms, abbreviations and acronyms are used to identify frequently used terms in this report: TERM DEFINITION ACNielsen ACNielsen Corporation a former affiliate of Old DB Analytics Moodys Analytics reportable segment of MCO; consists of three LOBs subscriptions, software and professional services AOCI Accumulated other comprehensive income (loss); a separate component of shareholders equity (deficit) ASC Accounting Standards Codification The FASBs codification of accounting standards which is the single source of authoritative GAAP ASU Accounting Standards Update Updates to the FASB Accounting Standards Codification which beginning in the third quarter of 2009, became the single source of authoritative GAAP Basel II Capital adequacy framework published in June 2004 by the Basel Committee on Banking Supervision Board The board of directors of the Company Bps Basis points Canary Wharf Lease Operating lease agreement entered into on February 6, 2008 for office space in London, England, to be occupied by the Company in the second half of 2009. CDOs Collateralized debt obligations CESR Committee of European Securities Regulators CFG Corporate finance group; an LOB of MIS CMBS Commercial mortgage-backed securities; part of CREF Cognizant Cognizant Corporation a former affiliate of Old D comprised the IMS Health and NMR businesses Commission European Commission Company Moodys Corporation and its subsidiaries; MCO; Moodys COSO Committee of Sponsoring Organizations of the Treadway Commission CP Commercial paper CP Notes Unsecured commercial paper notes CP Program The Companys commercial paper program entered into on October 3, 2007 CRAs Credit rating agencies CREF Commercial real estate finance which includes REITs, commercial real estate CDOs and MBS; part of SFG DB Business Old DBs Dun Bradstreet operating company DBPP Defined benefit pension plans Debt/EBITDA Ratio of Total Debt to EBITDA Directors Plan The 1998 MCO Non-Employee Directors Stock Incentive Plan Distribution Date September 30, 2000; the date which old DB separated into two publicly traded companies Moodys Corporation and New DB EBITDA Earnings before interest, taxes, depreciation and amortization ECAIs External Credit Assessment Institutions ECB European Central Bank TERM DEFINITION EITF Emerging Issues Task Force; a task force established by the FASB to improve financial reporting through the timely identification, discussion, and resolution of financial accounting issues within the framework of existing authoritative literature. EMEA Represents countries within Europe, the Middle East and Africa EPS Earnings per share ESPP The 1999 Moodys Corporation Employee Stock Purchase Plan ETR Effective tax rate EU European Union EUR Euros Excess Tax Benefit The difference between the tax benefit realized at exercise of an option or deliver

NOTE 1. DESCRIPTION OF BUSINESS

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Moodys is a provider of (i)credit ratings and related research, data and analytical tools, (ii)quantitative credit risk measures, risk scoring software, and credit portfolio management solutions and (iii)securities pricing software and valuation models. Moodys operates in two reportable segments: Moodys Investors Service and Moodys Analytics. The MIS segment publishes credit ratings on a wide range of debt obligations and the entities that issue such obligations in markets worldwide. Revenue is derived from the originators and issuers of such transactions who use MISs ratings to support the distribution of their debt issues to investors. The MA segment develops a wide range of products and services that support the credit risk management activities of institutional participants in global financial markets. These offerings include quantitative credit risk scores, credit processing software, economic research, analytical models, financial data, securities pricing software and valuation models, and specialized professional services. MA also distributes investor-oriented research and data developed by MIS as part of its rating process, including in-depth research on major debt issuers, industry studies, and commentary on topical events. The Company operated as part of Old DB until September30, 2000, when Old DB separated into two publicly traded companies Moodys Corporation and New DB. At that time, Old DB distributed to its shareholders shares of New DB stock. New DB comprised the business of Old DBs Dun Bradstreet operating company. The remaining business of Old DB consisted solely of the business of providing ratings and related research and credit risk management services and was renamed Moodys Corporation. For purposes of governing certain ongoing relationships between the Company and New DB after the 2000 Distribution and to provide for an orderly transition, the Company and New DB entered into various agreements including a distribution agreement, tax allocation agreement and employee benefits agreement. These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the Companys consolidated financial statements and related notes in the Companys 2008 annual report on Form 10-K filed with the SEC on March2, 2009. The results of interim periods are not necessarily indicative of results for the full year or any subsequent period. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the periods presented have been included. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Certain prior year amounts have been reclassified to conform to the current year presentation.

NOTE 2. STOCK-BASED COMPENSATIO

NOTE 2. STOCK-BASED COMPENSATION
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 2. STOCK-BASED COMPENSATION	NOTE 2. STOCK-BASED COMPENSATION Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations: ThreeMonthsEnded September30, NineMonthsEnded September30, 2009 2008 2009 2008 Stock compensation cost $ 13.8 $ 17.1 $ 44.4 $ 46.3 Tax benefit $ 5.0 $ 6.4 $ 16.3 $ 17.2 During the first nine months of 2009, the Company granted 2.6million employee stock options, which had a weighted average grant date fair value of $8.52 per share based on the Black-Scholes option-pricing model. The Company also granted 0.6million shares of restricted stock in the first nine months of 2009, which had a weighted average grant date fair value of $25.18 per share. Unrecognized compensation expense at September30, 2009 was $48.9 million and $36.0 million for stock options and nonvested restricted stock, respectively, which is expected to be recognized over a weighted average period of 1.5years and 1.4 years, respectively. The following tables summarize information relating to stock option exercises and restricted stock vesting: NineMonthsEnded September30, Stock option exercises: 2009 2008 Proceeds from stock option exercises $ 13.5 $ 22.4 Aggregate intrinsic value $ 9.2 $ 21.1 Tax benefit realized upon exercise $ 3.7 $ 8.4 NineMonthsEnded September30, Restricted stock vesting: 2009 2008 Fair value of shares vested $ 7.9 $ 23.6 Tax benefit realized upon vesting $ 2.9 $ 9.0

NOTE 3. INCOME TAXES

NOTE 3. INCOME TAXES
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 3. INCOME TAXES	NOTE 3. INCOME TAXES Moodys effective tax rate was 37.5% and 38.4% for the three month periods ended September30, 2009 and 2008, respectively and 36.6% and 38.4% for the nine month periods ended September30, 2009 and 2008, respectively. The decrease in the effective tax rate was primarily due to a larger portion of consolidated taxable income being generated from international sources, which is taxed at a lower rate than the U.S. statutory rate, net reductions to tax and tax-related liabilities in the first quarter of 2009 and a $4.3 million tax benefit related to the settlement of a Legacy Tax Matter in the second quarter of 2009. The Company classifies interest related to UTBs in interest expense in its consolidated statements of operations. Penalties, if incurred, would be recognized in other non-operating expenses. During the third quarter and first nine months of 2009, the Company had an overall increase in its UTBs of $1.3 million ($0.5 million, net of federal tax benefit) and a net decrease of $26.8 million ($15.9 million, net of federal tax benefit), respectively, primarily relating to U.S. tax issues. Prepaid taxes of $32.8 million and $62.7 million at September30, 2009 and December31, 2008, respectively, are included in other current assets in the consolidated balance sheets. Moodys Corporation and subsidiaries are subject to U.S. federal income tax as well as income tax in various state, local and foreign jurisdictions. The Companys tax filings in New York State for the years 2004 through 2007 are currently under examination; tax filings in the U.K. for 2001 through 2006 are currently under examination by the U.K. taxing authorities; and assessments with respect to income tax and value-added-tax filings in Italy for 2004 are currently under review. Forongoingaudits related to open tax years,the Companyestimatesthatitispossiblethe balance of UTBs could decreasein the next twelve monthsas a result of the settlement of these audits, which might involve the payment of additional taxes, the adjustment of certain deferred taxes and/or the recognition of tax benefits. It is also possible thatnew issuesmight be raised by tax authoritieswhich could necessitateincreasesto the balance of UTBs. As the Company is unable to predict the timing or outcomeof these audits,it is therefore unable to estimate theamount of changesto the balance of UTBsat this time.However, the Company believes that it has adequately provided for its financial exposure for all open tax years by tax jurisdiction in accordance with the applicable provisions of topic 740 of the ASC regarding UTBs.Additionally, the Company is seeking tax rulings on certain tax positions which, if granted, could change the balance of UTBs over the next twelve months. However, due to the uncertainty involved with this process, the Company is unable to estimate the amount of changes to the balance of UTBs at this time.

NOTE 4. WEIGHTED AVERAGE SHARES

NOTE 4. WEIGHTED AVERAGE SHARES OUTSTANDING
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 4. WEIGHTED AVERAGE SHARES OUTSTANDING	NOTE 4. WEIGHTED AVERAGE SHARES OUTSTANDING Below is a reconciliation of basic to diluted shares outstanding: ThreeMonthsEnded September30, NineMonthsEnded September30, 2009 2008 2009 2008 Basic 236.4 241.3 236.0 244.4 Dilutive effect of shares issuable under stock-based compensation plans 1.8 3.3 1.6 3.5 Diluted 238.2 244.6 237.6 247.9 Anti-dilutive options to purchase common shares and restricted stock excluded from the table above 14.7 10.5 16.0 10.9 The calculation of diluted EPS requires certain assumptions regarding the use of both cash proceeds and assumed proceeds that would be received upon the exercise of stock options and vesting of restricted stock outstanding as of September30, 2009 and 2008. These assumed proceeds include Excess Tax Benefits and any unrecognized compensation on the awards.

NOTE 5. SHORT-TERM INVESTMENTS

NOTE 5. SHORT-TERM INVESTMENTS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 5. SHORT-TERM INVESTMENTS	NOTE 5. 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 twelve months. The short-term investments, primarily consisting of certificates of deposit, are classified as held-to-maturity and therefore are carried at cost. The remaining contractual maturities of the short-term investments were one month to five months and one month to ten months as of September30, 2009 and December31, 2008, respectively. Interest and dividends are recorded into income when earned.

NOTE 6. DERIVATIVE INSTRUMENTS

NOTE 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	NOTE 6. 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. The Company engages in hedging activities to protect against FX risks from forecasted billings and related revenue denominated in the euro and the GBP. FX options and forward exchange contracts are utilized to hedge exposures related to changes in FX rates. As of September30, 2009 all FX options and forward exchange contracts had maturities between one and 14months. The hedging program mainly utilizes FX options. The forward exchange contracts are immaterial. Both the FX options and forward exchange contracts are designated as cash flow hedges. The following table summarizes the notional amounts of the Companys outstanding FX options: September30, 2009 December31, 2008 Notional amount of Currency Pair: GBP/USD 11.7 7.4 EUR/USD 24.0 12.9 EUR/GBP 29.9 24.3 In May 2008, the Company entered into interest rate swaps with a total notional amount of $150.0 million to protect against fluctuations in the LIBOR-based variable interest rate on the 2008 Term Loan, further described in Note 10. These interest rate swaps are designated as cash flow hedges. The Company also enters into foreign exchange forwards to mitigate the change in fair value on certain intercompany loans denominated in currencies other than the U.S. dollar. These forward contracts are not designated as hedging instruments 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 (expense) income, net in the Companys consolidated statements of operations along with the FX gain or loss recognized on the intercompany loan. The tables below show the location on the Companys consolidated balance sheets of the fair value of derivative instruments as well as information on gains/(losses) on those instruments: Fair Value of Derivative Instruments Asset Liability September30, 2009 December31, 2008 September30, 2009 December31, 2008 Derivatives designated as hedging instruments: FX options $ 2.1 $ 4.9 $ $ Interest rate swaps 8.6 10.7 Total derivatives designated as hedging instruments 2.1 4.9 8.6 10.7 Derivatives not designated as hedging instruments: FX forwards on intercompany loans 2.9 0.4 Total $ 5.0 $ 4.9 $ 9.0 $ 10.7 The fair value of FX options and interest rate swaps are included in other current assets and other liabilities, respectively, in the consolidated balance sheets at September30, 2009 and December31, 2008. The fair value of t

NOTE 7. GOODWILL AND OTHER ACQU

NOTE 7. GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 7. GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS	NOTE 7. GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS The following table summarizes the activity in goodwill for the periods indicated: Nine Months Ended September30, 2009 Year Ended December31, 2008 MIS MA Consolidated MIS MA Consolidated Beginning balance $ 10.6 $ 327.4 $ 338.0 $ 11.4 $ 168.5 $ 179.9 Additions 4.7 4.7 1.4 158.7 160.1 FX translation 0.8 6.9 7.7 (2.2 ) 0.2 (2.0 ) Ending balance $ 11.4 $ 339.0 $ 350.4 $ 10.6 $ 327.4 $ 338.0 The purchase price allocation for acquisitions made in the fourth quarter of 2008 is subject to adjustment as more detailed analyses are completed and additional information about fair value of assets and liabilities become available. Changes in the fair value of the net assets acquired could impact the amount of the purchase price allocable to goodwill. Acquired intangible assets and related amortization consisted of: September30, 2009 December31, 2008 Customer lists $ 81.6 $ 80.5 Accumulated amortization (42.3 ) (37.7 ) Net customer lists 39.3 42.8 Trade secret 25.5 25.5 Accumulated amortization (8.2 ) (6.6 ) Net trade secret 17.3 18.9 Software 57.8 55.2 Accumulated amortization (15.8 ) (11.0 ) Net software 42.0 44.2 Other 28.7 28.2 Accumulated amortization (23.1 ) (20.1 ) Net other 5.6 8.1 Total acquired intangible assets, net $ 104.2 $ 114.0 Other intangible assets primarily consist of databases, trade names and covenants not to compete. Amortization expense is as follows: ThreeMonthsEnded September30, NineMonthsEnded September30, 2009 2008 2009 2008 Amortization expense $ 4.2 $ 3.0 $ 12.4 $ 8.4 Estimated future amortization expense for acquired intangible assets subject to amortization is as follows: Year Ending December31, 2009 (after September 30) $ 4.6 2010 15.6 2011 14.5 2012 13.9 2013 13.6 Thereafter 42.0 Intangible assets are reviewed for impairment whenever circumstances indicate that the carrying amount may not be recoverable. If the estimated undiscounted future cash flows are lower than the carrying amount of the related asset, a loss is recognized for the difference between the carrying amount and the estimated fair value of the asset. Goodwill is tested for impairment annually as of November30th, or more frequently if circumstances indicate the assets may be impaired. For the three and nine months ended September30, 2009 there was an immaterial impairment to goodwill relating to the divestiture of non-st

NOTE 8. RESTRUCTURING

NOTE 8. RESTRUCTURING
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 8. RESTRUCTURING	NOTE 8. RESTRUCTURING On March27, 2009 the Company approved the 2009 Restructuring Plan to reduce costs in response to a strategic review of its business in certain jurisdictions and weak global economic and market conditions. The 2009 Restructuring Plan consists of headcount reductions of approximately 150 positions representing approximately 4% of the Companys workforce at December31, 2008 as well as contract termination costs and the divestiture of non-strategic assets. The Companys plan included closing offices in South Bend, Indiana; Jakarta, Indonesia and Taipei, Taiwan. There was $0.2 million in accelerated amortization for intangible assets recognized in the first quarter of 2009 relating to the closure of the Jakarta, Indonesia office. The entire charge, except for $0.2 million of intangible assets written off relating to the Indonesia office closure, will result in cash outlays that will be substantially paid out over the next twelve months. The cumulative amount of expense incurred from inception through September30, 2009 for the 2009 Restructuring Plan was $17.0 million. The 2009 Restructuring Plan is substantially complete at September30, 2009. On December31, 2007, the Company approved the 2007 Restructuring Plan that reduced global headcount by approximately 275 positions, or approximately 7.5% of the workforce, in response to the Companys reorganization announced in August 2007 and a decline in the then current and anticipated issuance of rated debt securities in some market sectors. Included in the 2007 Restructuring Plan was a reduction of staff as a result of: (i)consolidation of certain corporate staff functions, (ii)the integration of businesses comprising MA and (iii)an anticipated decline in new securities issuance in some market sectors. The 2007 Restructuring Plan also called for the termination of technology contracts as well as the outsourcing of certain technology functions. The cumulative amount of expense incurred from inception through September30, 2009 for the 2007 Restructuring Plan was $49.1 million. The 2007 Restructuring Plan was substantially complete as of December31, 2008. Total expenses included in the accompanying consolidated statements of operations are as follows: ThreeMonthsEnded September30, NineMonthsEnded September30, 2009 2008 2009 2008 2007 Restructuring Plan $ 0.7 $ (1.8 ) $ 1.6 $ (2.7 ) 2009 Restructuring Plan 3.0 17.0 Total $ 3.7 $ (1.8 ) $ 18.6 $ (2.7 ) The expense related to the 2007 Restructuring Plan primarily reflects adjustments to previous estimates. Changes to the restructuring liability during the first nine months of 2009 were as follows: Employee Termination Costs Contract Termination Costs Total Restructuring Liability Severance Pension Settlements Total Balance at December31, 2008 $ 1.5 $ 8.1 $ 9.6 $ 1.8 $ 11.4 2007 Restructuring Plan: Costs incurred and adjus

NOTE 9. PENSION AND OTHER POST-

NOTE 9. PENSION AND OTHER POST-RETIREMENT BENEFITS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 9. PENSION AND OTHER POST-RETIREMENT BENEFITS	NOTE 9. PENSION AND OTHER POST-RETIREMENT BENEFITS Moodys maintains funded and unfunded noncontributory Defined Benefit Pension Plans. The DBPPs provide defined benefits using a cash balance formula based on years of service and career average salary for its employees or final average pay for selected executives. The Company also provides certain healthcare and life insurance benefits for retired U.S. employees. The post-retirement healthcare plans are contributory with participants contributions adjusted annually; the life insurance plans are noncontributory. Moodys funded and unfunded pension plans, the post-retirement healthcare plans and the post-retirement life insurance plans are collectively referred to herein as the Post-Retirement Plans. Effective January1, 2008, the Company no longer offers DBPPs to employees hired or rehired on or after January1, 2008. However, new hires and re-hires instead receive a retirement contribution of similar benefit value under the Companys Profit Participation Plan. Current participants of the Companys DBPPs continue to accrue benefits based on existing plan benefit formulas. The components of net periodic benefit expense related to the Post-Retirement Plans are as follows: ThreeMonthsEndedSeptember30, Pension Plans Other Post-Retirement Plans 2009 2008 2009 2008 Components of net periodic expense Service cost $ 3.0 $ 3.1 $ 0.2 $ 0.2 Interest cost 2.5 2.4 0.2 0.1 Expected return on plan assets (2.5 ) (2.5 ) Amortization of net actuarial loss from earlier periods 0.1 0.1 Amortization of net prior service costs from earlier periods 0.1 0.1 Net periodic expense $ 3.2 $ 3.2 $ 0.4 $ 0.3 Nine Months Ended September 30, Pension Plans Other Post-Retirement Plans 2009 2008 2009 2008 Components of net periodic expense Service cost $ 9.1 $ 9.3 $ 0.6 $ 0.5 Interest cost 7.4 7.3 0.6 0.5 Expected return on plan assets (7.5 ) (7.5 ) Amortization of net actuarial loss from earlier periods 0.4 0.2 Amortization of net prior service costs from earlier periods 0.3 0.3 Curtailment loss 1.0 Cost of special termination benefits 2.8 Net periodic expense $ 9.7 $ 13.4 $ 1.2 $ 1.0 The curtailment loss and the cost of special termination benefits in 2008 relates to the termination of a participant in the Companys Supplemental Executive Benefit Plan. The Company contributed $5.8 million to its funded DBPP in September 2009. For unfunded plans, the Company made payments of $1.3 million to its unfunded DBPPs and $0.8 million to its other post-retirement plans during the nine months ended September30, 2009. For the remainder of 2009, the Company presently anticipates m

NOTE 10. INDEBTEDNESS

NOTE 10. INDEBTEDNESS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 10. INDEBTEDNESS	NOTE 10. INDEBTEDNESS The following table summarizes total indebtedness: September30, 2009 December31, 2008 2007 Facility $ $ 613.0 Commercial paper, net of unamortized discount of $0.1 at 2009 and $0.3 at 2008 531.0 104.7 Notes payable: Series 2005-1 Notes 300.0 300.0 Series 2007-1 Notes 300.0 300.0 2008 Term Loan 150.0 150.0 Total Debt 1,281.0 1,467.7 Current portion (532.9 ) (717.7 ) Total long-term debt $ 748.1 $ 750.0 2007 Facility On September28, 2007, the Company entered into a $1.0 billion five-year senior, unsecured revolving credit facility, expiring in September 2012. The 2007 Facility will serve, in part, to support the Companys CP Program described below. Interest on borrowings is payable at rates that are based on LIBOR plus a premium that can range from 16.0 to 40.0 basis points of the outstanding borrowing amount depending on the Debt/EBITDA ratio. The Company also pays quarterly facility fees, regardless of borrowing activity under the 2007 Facility. The quarterly fees for the 2007 Facility can range from 4.0 to10.0 basis points per annum of the facility amount, depending on the Companys Debt/EBITDA ratio. The Company also pays a utilization fee of 5.0basis points on borrowings outstanding when the aggregate amount outstanding exceeds 50% of the total facility. The weighted average interest rate on borrowings outstanding as December31, 2008 was 1.47%. The 2007 Facility contains certain covenants that, among other things, restrict the ability of the Company and certain of its subsidiaries, without the approval of the lenders, to engage in mergers, consolidations, asset sales, transactions with affiliates and sale-leaseback transactions or to incur liens, as defined in the related agreement. The 2007 Facility also contains financial covenants that, among other things, require the Company to maintain a Debt/EBITDA ratio of not more than 4.0 to 1.0 at the end of any fiscal quarter. Commercial Paper On October3, 2007, 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. Amounts available under the CP Program may be re-borrowed. The CP Program is supported by the Companys 2007 Facility. The maturities 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 at the time of issuance. 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 weighted average interest rate on CP borrowings outstanding was 0.3% and 2.08% as of

NOTE 11. CONTINGENCIES

NOTE 11. CONTINGENCIES
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 11. CONTINGENCIES	NOTE 11. CONTINGENCIES From time to time, Moodys is involved in legal and tax proceedings, governmental investigations, claims and litigation that are incidental to the Companys business, including claims based on ratings assigned by MIS. Moodys is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Companys liabilities and contingencies in connection with these matters based upon the latest information available. Moodys discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. Following the events in the U.S. subprime residential mortgage sector and the credit markets more broadly over the last two years, MIS and other credit rating agencies are the subject of intense scrutiny, increased regulation, ongoing investigation, and civil litigation. Legislative, regulatory and enforcement entities around the world are considering additional legislation, regulation and enforcement actions, including with respect to MISs compliance with newly imposed regulatory standards. Moodys has received subpoenas and inquiries from states attorneys general and other governmental authorities and is cooperating with such investigations and inquiries. Moodys is also cooperating with a review by the SEC relating to errors in the model used by MIS to rate certain constant-proportion debt obligations. In addition, the Company is facing market participant litigation relating to the performance of MIS rated securities. Although Moodys in the normal course experiences such litigation, the volume and cost of defending such litigation has significantly increased in the current economic environment. On June27, 2008, the Brockton Contributory Retirement System, a purported shareholder of the Companys securities, filed a purported shareholder derivative complaint on behalf of the Company against its directors and certain senior officers, and the Company as nominal defendant, in the Supreme Court of the State of New York, County of New York. The plaintiff asserts various causes of action relating to the named defendants oversight of MISs ratings of RMBS and constant-proportion debt obligations, and their participation in the alleged public dissemination of false and misleading information about MISs ratings practices and/or a failure to implement internal procedures and controls to prevent the alleged wrongdoing. The plaintiff seeks compensatory damages, restitution, disgorgement of profits and other equitable relief. On July2, 2008, Thomas R. Flynn, a purported shareholder of the Companys securities, filed a similar purported shareholder derivative complaint on behalf of the Company against its directors and certain senior officers, and the Company as nominal defendant, in the Supreme Court of the State of New York, County of New York, asserting similar claims and seeking the same relief. The cases have been consolidated and plaintiffs filed an amended consolidated complaint in November 2008. The Company removed the consolidated action to the United States District Court for the Southern District of New York in December 2008. In January 2

NOTE 12. COMPREHENSIVE INCOME A

NOTE 12. COMPREHENSIVE INCOME AND NONCONTROLLING INTERESTS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 12. COMPREHENSIVE INCOME AND NONCONTROLLING INTERESTS	NOTE 12. COMPREHENSIVE INCOME AND NONCONTROLLING INTERESTS The components of total comprehensive income, net of tax, are as follows: Three months ended September30, 2009 2008 Shareholders ofMoodys Corporation Noncontrolling Interests Total Shareholders ofMoodys Corporation Noncontrolling Interests Total Net income $ 100.6 $ 1.1 $ 101.7 $ 113.0 $ 0.8 $ 113.8 Net realized and unrealized gain/(loss) on cash flow hedges (net of tax of $0.7 and $1.6 million 2009 and 2008, respectively) (2.9 ) (2.9 ) 1.0 1.0 FX translation (net of tax of $1.0 million and $9.4 million in 2009 and 2008, respectively) 13.2 0.5 13.7 (40.8 ) 1.0 (39.8 ) Amortization of actuarial losses and prior service costs (net of tax of $0.1 million in both 2009 and 2008) 0.1 0.1 0.1 0.1 Total comprehensive income $ 111.0 $ 1.6 $ 112.6 $ 73.3 $ 1.8 $ 75.1 Nine months ended September30, 2009 2008 Shareholders of Moodys Corporation Noncontrolling Interests Total Shareholders of Moodys Corporation Noncontrolling Interests Total Net income $ 300.1 $ 3.7 $ 303.8 $ 368.9 $ 3.7 $ 372.6 Net realized and unrealized gain/ (loss) on cash flow hedges (net of tax of $3.4 million and $0.3 million in 2009 and 2008, respectively) (1.4 ) (1.4 ) 0.5 0.5 FX translation (net of tax of $10.7 million and $6.6 million in 2009 and 2008, respectively) 30.5 0.3 30.8 (30.7 ) 2.1 (28.6 ) Net actuarial gains recognized (net of tax of $2.1 million and $0.8 million in 2009 and 2008, respectively) 3.1 3.1 0.6 0.6 Amortization of actuarial losses and prior service costs (net of tax of $0.3 million and $0.2 million in 2009 and 2008, respectively) 0.4 0.4 0.3 0.3 Total comprehensive income $ 332.7 $ 4.0 $ 336.7 $ 339.6 $ 5.8 $ 345.4 The following table summarizes the activity in the Companys noncontrolling interests: Balance at December31, 2008 $ 8.3 Net income attributable to noncontrolling interests 3.7 Dividends declared attributable to noncontrolling interests (2.9 ) FX translation 0.3 Balance at September30, 2009 $ 9.4

NOTE 13. SEGMENT INFORMATION

NOTE 13. SEGMENT INFORMATION
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 13. SEGMENT INFORMATION	NOTE 13. SEGMENT INFORMATION The Company operates in two reportable segments: MIS and MA. Revenue for MIS and expenses for MA include an intersegment royalty charged to MA for the rights to use and distribute content, data and products developed by MIS. Additionally, overhead costs and corporate expenses of the Company are allocated to each segment based on a revenue-split methodology. Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resource, information technology and legal. Eliminations in the table below represent intersegment royalty revenue/expense. Below is financial information by segment, MIS and MA revenue by line of business and consolidated revenue information by geographic area, each of which is for the three and nine-month periods ended September30, 2009 and 2008, and total assets by segment as of September30, 2009 and December31, 2008. Financial Information by Segment Three Months Ended September30, 2009 2008 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Revenue $ 319.8 146.5 $ (14.5 ) $ 451.8 $ 312.6 $ 136.6 $ (15.8 ) $ 433.4 Expenses: Operating, SGA 173.7 100.2 (14.5 ) 259.4 157.2 89.4 (15.8 ) 230.8 Restructuring 1.0 2.7 3.7 (1.4 ) (0.4 ) (1.8 ) Depreciation and amortization 7.9 8.3 16.2 8.5 6.1 14.6 Total 182.6 111.2 (14.5 ) 279.3 164.3 95.1 (15.8 ) 243.6 Operating income $ 137.2 $ 35.3 $ $ 172.5 $ 148.3 $ 41.5 $ $ 189.8 Nine Months Ended September30, 2009 2008 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Revenue $ 929.4 $ 425.6 $ (43.6 ) $ 1,311.4 $ 998.3 400.9 $ (47.5 ) $ 1,351.7 Expenses: Operating, SGA 489.5 290.8 (43.6 ) 736.7 481.0 254.2 (47.5 ) 687.7 Restructuring 9.1 9.5 18.6 (1.8 ) (0.9 ) (2.7 ) Depreciation and amortization 23.1 24.4 47.5 25.9 18.0 43.9 Total 521.7 324.7 (43.6 ) 802.8 505.1 271.3 (47.5 ) 728.9 Operating income

NOTE 14. RECENTLY ISSUED ACCOUN

NOTE 14. RECENTLY ISSUED ACCOUNTING STANDARDS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 14. RECENTLY ISSUED ACCOUNTING STANDARDS	NOTE 14. RECENTLY ISSUED ACCOUNTING STANDARDS Adopted: In June 2009, the FASB issued SFAS No.168 The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No.162. SFAS No.168 sets forth the FASBs new codification which was first introduced in SFAS No.162, The Hierarchy of Generally Accepted Accounting Principles as the source of authoritative GAAP. The Company has implemented the provisions of this statement in its financial statements for the period ending September30, 2009. The implementation of the standard did not have any impact on its consolidated financial statements but required the Company to reference the new codification. Not Yet Adopted: In October 2009, the FASB issued ASU No.2009-13 Revenue Recognition (Topic 605) which modifies the criteria for separating consideration in a revenue arrangement with multiple deliverables. The ASU will require that a relative-selling price model be used for allocating the consideration revenue arrangements with multiple deliverables into its separate elements. The ASU also changes the level of evidence regarding stand-alone selling price required to separate deliverables by allowing a vendor to use its best estimate of stand-alone selling price when more objective evidence is not available. ASU No.2009-13 also requires enhanced disclosures regarding the aforementioned revenue arrangements. This standard will be effective for fiscal years beginning after June15, 2010 with early adoption permitted. The Company is currently evaluating the potential impact on its consolidated financial statements.

NOTE 15. SUBSEQUENT EVENTS

NOTE 15. SUBSEQUENT EVENTS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 15. SUBSEQUENT EVENTS	NOTE 15. SUBSEQUENT EVENTS On October27, 2009, the Board approved the declaration of a quarterly dividend of $0.10 per share of Moodys common stock, payable on December10, 2009 to shareholders of record at the close of business on November20, 2009. Subsequent events were evaluated by the Company through November 4, 2009 which is the date the financial statements were issued.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009
Entity [Text Block]
Trading Symbol	MCO
Entity Registrant Name	MOODYS CORP /DE/
Entity Central Index Key	0001059556
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	236,500,000