Moody's (MCO) 10-K 1 Mar 10 2009 FY Annual report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenue	1797.2	1755.4	$2,259
Expenses
Operating	532.4	493.3	584
Selling, general and administrative	495.7	441.3	451.1
Restructuring	17.5	-2.5	50
Depreciation and amortization	64.1	75.1	42.9
Total expenses	1109.7	1007.2	1,128
Operating income	687.5	748.2	1,131
Interest income (expense), net	-33.4	-52.2	-24.3
Other non-operating income (expense), net	-7.9	33.8	15.3
Non-operating income (expense), net	-41.3	-18.4	(9)
Income before provision for income taxes	646.2	729.8	1,122
Provision for income taxes	239.1	268.2	415.2
Net income	407.1	461.6	706.8
Less: Net income attributable to noncontrolling interests	5.1	4	5.3
Net income attributable to Moody's	$402	457.6	701.5
Earnings per share
Basic	1.7	1.89	2.63
Diluted	1.69	1.87	2.58
Weighted average shares outstanding
Basic	236.1	242.4	266.4
Diluted	237.8	245.3	272.2

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	473.9	245.9
Short-term investments	10	7.1
Accounts receivable, net of allowances of $24.6 in 2009 and $23.9 in 2008	444.9	421.8
Deferred tax assets, net	32.3	26.5
Other current assets	51.8	107.8
Total current assets	1012.9	809.1
Property and equipment, net	293	247.7
Goodwill	349.2	338
Intangible assets, net	104.9	114
Deferred tax assets, net	192.6	220.1
Other assets	50.7	44.5
Total assets	2003.3	1773.4
Current liabilities:
Accounts payable and accrued liabilities	317.2	240.4
Commercial paper	443.7	104.7
Revolving credit facility	0	613
Current portion of long-term debt	3.8	0
Deferred revenue	471.3	435
Total current liabilities	1,236	1393.1
Non-current portion of deferred revenue	103.8	114.8
Long-term debt	746.2	750
Deferred tax liabilities, net	31.4	19
Unrecognized tax benefits	164.2	185.1
Other liabilities	317.8	297.5
Total liabilities	2599.4	2759.5
Shareholders' deficit:
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding	0	0
Capital surplus	391.1	392.7
Retained earnings	3,329	3023.2
Treasury stock, at cost; 106,044,833 and 107,757,537 shares of common stock at December 31, 2009 and 2008, respectively	-4288.5	-4361.6
Accumulated other comprehensive loss	-41.2	-52.1
Total Moody's shareholders' deficit	-606.2	-994.4
Noncontrolling interests	10.1	8.3
Total shareholders' deficit	-596.1	-986.1
Total liabilities and shareholders' deficit	2003.3	1773.4
Series common stock
Shareholders' deficit:
Common stock	$0	$0

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Accounts receivable, allowances	24.6	23.9
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	106,044,833	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

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities
Net income	407.1	461.6	706.8
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	64.1	75.1	42.9
Stock-based compensation expense	57.4	63.2	90.2
Non-cash portion of restructuring charge	0	0	7
Deferred income taxes	16.5	-17.3	-76.4
Excess tax benefits from exercise of stock options	(5)	-7.5	-52.2
Legacy Tax Matters	0	-7.8	-52.3
Changes in assets and liabilities:
Accounts receivable	-14.9	26.2	36.7
Other current assets	55.3	-23.1	-58.3
Other assets	-7.4	26	15.5
Accounts payable and accrued liabilities	50.4	-118.4	53.9
Restructuring liability	2.6	-29.8	33.1
Deferred revenue	17.9	9	79.2
Unrecognized tax benefits and other non-current tax liabilities	(21)	30.8	91.9
Deferred rent	21.1	6.6	53.1
Other liabilities	-0.3	45.1	17.1
Net cash provided by operating activities	643.8	539.7	988.2
Cash flows from investing activities
Capital additions	-90.7	-84.4	-181.8
Purchases of short-term investments	-17.6	-10.3	-191.4
Sales and maturities of short-term investments	15.4	15.9	252.9
Cash paid for acquisitions and investment in affiliates, net of cash acquired	-0.9	-241.4	-4.4
Insurance recovery	0	0.9	0
Net cash used in investing activities	-93.8	-319.3	-124.7
Cash flows from financing activities
Borrowings under revolving credit facilities	2,412	4266.2	1,000
Repayments of borrowings under revolving credit facilities	(3,025)	-3653.2	(1,000)
Issuance of commercial paper	11075.5	11522.7	6684.1
Repayment of commercial paper	-10736.5	-11969.4	-6136.7
Issuance of long term debt	0	150	300
Net proceeds from stock plans	19.8	23.5	65.9
Excess tax benefits from exercise of stock options	5	7.5	52.2
Cost of treasury shares repurchased	0	-592.9	-1738.4
Payment of dividends to MCO shareholders	-94.5	-96.8	-85.2
Payment of dividends to noncontrolling interests	-3.7	(5)	-4.2
Payments under capital lease obligations	-1.4	-1.7	(2)
Debt issuance costs and related fees	0	-0.7	-1.4
Net cash used in financing activities	-348.8	-349.8	-865.7
Effect of exchange rate changes on cash and cash equivalents	26.8	(51)	20.4
Increase (decrease) in cash and cash equivalents	228	-180.4	18.2
Cash and cash equivalents, beginning of the period	245.9	426.3	408.1
Cash and cash equivalents, end of the period	473.9	245.9	426.3

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Common stock	Capital Surplus	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Shareholders' of Moody's Corporation	Non-Controlling Interests	Total
Beginning Balance at Dec. 31, 2006	3.4	345.7	2091.4	-2264.7	-8.4	167.4	10.5	177.9
Beginning Balance (in shares) at Dec. 31, 2006	342.9			-64.3
Net income			701.5			701.5	5.3	706.8
Dividends			-88.4			-88.4	-4.2	-92.6
Amounts recognized upon adoption of accounting guidance for UTPs			-43.4			-43.4		-43.4
Stock-based compensation		94.5				94.5		94.5
Shares issued for stock-based compensation plans, net		-85.5		151.5		66		66
Shares issued for stock-based compensation plans, net (in shares)				4.1
Net excess tax benefit upon settlement of stock-based compensation awards		33.2				33.2		33.2
Treasury shares repurchased (in shares)				-31.3
Treasury shares repurchased				-1738.4		-1738.4		-1738.4
Currency translation adjustment (net of tax of $18.5 million in 2009 $12.1 million in 2008 and $5.5 million in 2007)					12.9	12.9	0.1	13
Net actuarial gains (losses) and prior service costs (net of tax of $8.9 million in 2009, $18.0 million in 2008, and $5.9 million in 2007)					7.8	7.8		7.8
Amortization and recognition of prior service cost and actuarial losses (net of tax of $0.4 million in 2009, $0.8 million in 2008, and $2.5 million in 2007)					3.4	3.4		3.4
Unrealized loss on cash flow hedges (net of tax of $1.5 million in 2009 and $2.1 million in 2008)					-0.1	-0.1		-0.1
Ending Balance (in shares) at Dec. 31, 2007	342.9			-91.5
Ending Balance at Dec. 31, 2007	3.4	387.9	2661.1	-3851.6	15.6	-783.6	11.7	-771.9
Net income			457.6			457.6	4	461.6
Dividends			-95.5			-95.5	(5)	-100.5
Stock-based compensation		63.5				63.5		63.5
Shares issued for stock-based compensation plans, net		-59.3		82.9		23.6		23.6
Shares issued for stock-based compensation plans, net (in shares)				1.9
Net excess tax benefit upon settlement of stock-based compensation awards		0.6				0.6		0.6
Treasury shares repurchased (in shares)				-18.2
Treasury shares repurchased				-592.9		-592.9		-592.9
Currency translation adjustment (net of tax of $18.5 million in 2009 $12.1 million in 2008 and $5.5 million in 2007)					-37.8	-37.8	-2.4	-40.2
Net actuarial gains (losses) and prior service costs (net of tax of $8.9 million in 2009, $18.0 million in 2008, and $5.9 million in 2007)					-26.7	-26.7		-26.7
Amortization and recognition of prior service cost and actuarial losses (net of tax of $0.4 million in 2009, $0.8 million in 2008, and $2.5 million in 2007)					0.9	0.9		0.9
Unrealized loss on cash flow hedges (net of tax of $1.5 million in 2009 and $2.1 million in 2008)					-4.1	-4.1		-4.1
Ending Balance (in shares) at Dec. 31, 2008	342.9			-107.8
Ending Balance at Dec. 31, 2008	3.4	392.7	3023.2	-4361.6	-52.1	-994.4	8.3	-986.1
Net income			402			402	5.1	407.1
Dividends			-96.2			-96.2	-3.7	-99.9
Stock-based compensation		57.9				57.9		57.9
Shares issued for stock-based compensation plans, net		-53.4		73.1		19.7		19.7
Shares issued for stock-based compensation plans, net (in shares)				1.8
Net excess tax benefit upon settlement of stock-based compensation awards		-6.1				-6.1		-6.1
Currency translation adjustment (net of tax of $18.5 million in 2009 $12.1 million in 2008 and $5.5 million in 2007)					22.2	22.2	0.4	22.6
Net actuarial gains (losses) and prior service costs (net of tax of $8.9 million in 2009, $18.0 million in 2008, and $5.9 million in 2007)					-10.4	-10.4		-10.4
Amortization and recognition of prior service cost and actuarial losses (net of tax of $0.4 million in 2009, $0.8 million in 2008, and $2.5 million in 2007)					0.6	0.6		0.6
Unrealized loss on cash flow hedges (net of tax of $1.5 million in 2009 and $2.1 million in 2008)					-1.5	-1.5		-1.5
Ending Balance (in shares) at Dec. 31, 2009	342.9			(106)
Ending Balance at Dec. 31, 2009	3.4	391.1	$3,329	-4288.5	-41.2	-606.2	10.1	-596.1

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
In Millions	Total Comprehensive Income	Total
Currency translation adjustment, tax	5.5	5.5
Net actuarial gains (losses) and prior service costs, tax	5.9	5.9
Amortization and recognition of prior service cost and actuarial losses, tax	2.5	2.5
Unrealized loss on cash flow hedges, tax	0	0
Currency translation adjustment, tax	12.1	12.1
Net actuarial gains (losses) and prior service costs, tax	18	18
Amortization and recognition of prior service cost and actuarial losses, tax	0.8	0.8
Unrealized loss on cash flow hedges, tax	2.1	2.1
Currency translation adjustment, tax	18.5	18.5
Net actuarial gains (losses) and prior service costs, tax	8.9	8.9
Amortization and recognition of prior service cost and actuarial losses, tax	0.4	0.4
Unrealized loss on cash flow hedges, tax	1.5	1.5

GLOSSARY OF TERMS AND ABBREVIAT

GLOSSARY OF TERMS AND ABBREVIATIONS
	12 Months Ended Dec. 31, 2009 USD / shares
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 formed in January 2008 which combines MKMV, the sales of MIS research and other MCO non-rating commercial activities AOCI Accumulated other comprehensive income (loss); a separate component of shareholders equity (deficit) ASC The FASB Accounting Standards Codification; the sole source of authoritative GAAP as of July 1, 2009 except for rules and interpretive releases of the SEC, which are also sources of authoritative GAAP for SEC registrants. ASU The FASB Accounting Standards Updates to the ASC. It also provides background information for accounting guidance and the bases for conclusions on the changes in the ASC. ASUs are not considered authoritative until codified into the ASC. 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 CanaryWharfLease Operating lease agreement entered into on February 6, 2008 for office space in London, England, occupied by the Company in the second half of 2009 CDOs Collateralized debt obligations CFG Corporate finance group; an LOB of MIS CMBS Commercial mortgage-backed securities; part of CREF Cognizant Cognizant Corporation a former affiliate of Old DB, which comprised the IMS Health and NMR businesses Commission European Commission Common Stock the Companys common stock Company Moodys Corporation and its subsidiaries; MCO; Moodys COSO Committee of Sponsoring Organizations of the Treadway Commission CP Commercial paper CP Notes Unsecured CP notes CP Program The Companys CP program entered into on October 3, 2007 CRAs Credit rating agencies CREF Commercial real estate finance which includes REITs, commercial real estate CDOs and CMBS; part of SFG DB Business Old DBs Dun Bradstreet operating company DBPPs Defined benefit pension plans DCF Discounted cash flow; a fair value calculation methodology whereby future projected cash flows are discounted back to their present value using a discount rate Debt/EBITDA Ratio of Total Debt to EBITDA Directors Plan The 1998 Moodys Corporation Non-Employee Directors Stock Incentive Plan Distribution Date September30, 2000; the date which Old DB separated into two publicly traded companies Moodys Corporation and New DB EBITDA Earnings before interest, taxes, depreciation, amortization and extraordinary items ECAIs External Credit Assessment Institutions ECB European Central Bank EMEA Represents countries within Europe, the Middle East and Africa Enb Enb Consulting; an acquisition completed in December 2008; part of the MA segment; a provider of credit and capital markets training services EPS Earnings per share ESPP The 1999 Moo

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
	12 Months Ended Dec. 31, 2009 USD / shares
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	NOTE1 DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Moodys is a provider of (i)credit ratings , (ii)credit and economic related research, data and analytical tools, (iii)risk management software and (iv)quantitative credit risk measures, credit portfolio management solutions and training services. In 2007 and prior years, Moodys operated in two reportable segments: Moodys Investors Service and Moodys KMV. Beginning in January 2008, Moodys segments were changed to reflect the Reorganization announced in August 2007 and Moodys now reports in two new reportable segments: MIS and MA. As a result of the Reorganization, the rating agency remains in the MIS operating segment and several ratings business lines have been realigned. All of Moodys other non-rating commercial activities are included within the new Moodys Analytics segment. 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, and specialized advisory and training 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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation The consolidated financial statements include those of Moodys 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. Investments in companies for which the Company does not have the ability to exercise significant influence are carried on the cost basis of accounting. 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 that entity. The Company has reviewed the potential variable interest entities and determined that there are no consolidation requirements under Topic 810 of the ASC. Cash and Cash Equivalents Cash equivalents principally consist of investments in money market mutual funds and high-grade commercial paper with maturities of three months or less when purchased. Interest income on cash and cash equivalents and short-term investments was $2.5 million, $12.2 million and $19.3 million for the years ended December31, 2009, 2008 and 2007, respectively. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives which range from three to seven years for computer equipment, three to 20 years for equipment, five to 10 years for furniture and fixtures and three to seven years for software. Leasehold improvements have an estimated useful life of five to 20 years and are amortized over the shorter of the term of the lease or the estimated useful life of the improvement. 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 Costs for the internally developed computer software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. These costs primarily relate to the development or enhancement of credit processing software and quantitative credit risk assessment products sold by the MA segment, to be licensed to customers and generally consist of professional services provided by third parties and compensation costs of employees that develop the software. Judgment is required in determining when technological feasibility of a product is established and the Company believes that technological feasibility for its software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released to customers. The Company amortizes these assets based on the greater of either (i)a ratio of current product revenue to estimated total product revenue or (ii)the straight-line basis over the useful life. Amortization expense for all such software for the year ended December31, 2009, 2008 and 2007 was immaterial, $0.2 million and $1.7 million, respectively. T

RECONCILIATION OF WEIGHTED AVER

RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING
	12 Months Ended Dec. 31, 2009 USD / shares
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING	NOTE3 RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING Below is a reconciliation of basic to diluted shares outstanding: YearEndedDecember31, 2009 2008 2007 Basic 236.1 242.4 266.4 Dilutive effect of shares issuable under stock-based compensation plans 1.7 2.9 5.8 Diluted 237.8 245.3 272.2 Antidilutive options to purchase common shares and restricted stock excluded from the table above 15.6 11.3 5.6 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 December31, 2009, 2008 and 2007. These assumed proceeds include Excess Tax Benefits and any unrecognized compensation on the awards.

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
SHORT-TERM INVESTMENTS	NOTE4 SHORT-TERM INVESTMENTS Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for use in the Companys 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 to three months and one to ten months as of December31, 2009 and 2008, respectively. Interest and dividends are recorded into income when earned.

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
	12 Months Ended Dec. 31, 2009 USD / shares
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	NOTE5 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 December31, 2009, all FX options and forward exchange contracts had maturities between one and 11months. 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: December 31, 2009 2008 Notional amount of Currency Pair: GBP/USD 5.0 7.4 EUR/USD 9.9 12.9 EUR/GBP 21.0 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 14. 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 classification between assets and liabilities 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 December31, 2009 December31, 2008 December31, 2009 December31, 2008 Derivatives designated as hedging instruments: FX options $ 1.2 $ 4.9 $ $ Interest rate swaps 7.6 10.7 Total derivatives designated as hedging instruments 1.2 4.9 7.6 10.7 Derivatives not designated as hedging instruments: FX forwards on intercompany loans 0.3 1.0 Total $ 1.5 $ 4.9 $ 8.6 $ 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 December31, 2009 and December31, 2008

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET
	12 Months Ended Dec. 31, 2009 USD / shares
PROPERTY AND EQUIPMENT, NET	NOTE6 PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of: December 31, 2009 2008 Office and computer equipment $ 99.2 $ 89.3 Office furniture and fixtures 37.4 34.4 Internal-use computer software 145.9 101.2 Leasehold improvements 175.3 153.2 Total property and equipment, at cost 457.8 378.1 Less: accumulated depreciation and amortization (164.8 ) (130.4 ) Total property and equipment, net $ 293.0 $ 247.7 Depreciation and amortization expense related to the above assets was $47.7 million, $46.7 million and $31.5 million for the years ended December31, 2009, 2008 and 2007, respectively.

ACQUISITIONS

ACQUISITIONS
	12 Months Ended Dec. 31, 2009 USD / shares
ACQUISITIONS	NOTE7 ACQUISITIONS During 2008, the Company completed the acquisitions of Financial Projections, BQuotes, Fermat and Enb. These acquisitions were accounted for using the purchase method of accounting whereby the purchase price is allocated first to the net assets of the acquired entity based on the fair value of its net assets. Any excess of the purchase price over the fair value of the net assets acquired is recorded to goodwill. These acquisitions are discussed below in more detail. Enb Consulting Ltd. In December 2008, a subsidiary of the Company acquired Enb Consulting Ltd., a provider of credit and capital markets training services. The purchase price was not material and the near term impact to operations and cash flow is not expected to be material. Enb is part of the MA segment. Fermat International SA On October9, 2008, a subsidiary of the Company acquired Fermat International SA, a provider of risk and performance management software to the global banking sector, which is now part of the MA segment. The combination of MAs credit portfolio management and economic capital tools with Fermats expertise in risk management software positions MA to deliver comprehensive analytical solutions for financial institutions worldwide. The results of Fermat are reflected in the MA operating segment since the acquisition date. The aggregate purchase price of $211 million consisted of $204.5 million in cash payments to the sellers and $6.5 million in direct transaction costs, primarily professional fees. The purchase price was funded by using Moodys cash on hand. The acquisition has been accounted for as a purchase. Shown below is the purchase price allocation, which summarizes the fair values of the assets acquired, and liabilities assumed, at the date of acquisition: Current assets 53.9 Property and equipment, net 1.6 Intangible assets: Software (9.0 year weighted average life) $ 43.0 Client relationships (16.0 year weighted average life) 12.1 Other intangibles (1.8 year weighted average life) 2.6 Total intangible assets 57.7 In-process technology 4.5 Goodwill 125.0 Liabilities assumed (31.7 ) Net assets acquired 211.0 The acquired goodwill, which has been assigned to the MA segment, will not be amortized and will not be deductible for tax. The $4.5 million allocated to acquired in-process technology was written off immediately following the acquisition because the technological feasibility had not yet been established as of the acquisition date and was determined to have no future use. This write-off is included in depreciation and amortization expenses for the year ended December31, 2008. Current assets include acquired cash of approximately $26 million. BQuotes, Inc. In January 2008, a subsidiary of the Company acquired BQuotes, Inc., a global provider of price discovery tools and end-of-day pricing services for a wide range of fixed income securities, which was part of the MA segment. The purchase price was not material and the impact to operation

GOODWILL AND OTHER ACQUIRED INT

GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS
	12 Months Ended Dec. 31, 2009 USD / shares
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS	NOTE8 GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS The following table summarizes the activity in goodwill: Year Ended December 31, 2009 2008 MIS MA Consolidated MIS MA Consolidated Beginning balance $ 10.6 $ 327.4 $ 338.0 $ 11.4 $ 168.5 $ 179.9 Additions/adjustments (0.3 ) 5.0 4.7 1.4 158.7 160.1 Foreign currency translation adjustments 0.8 5.7 6.5 (2.2 ) 0.2 (2.0 ) Ending balance $ 11.1 $ 338.1 $ 349.2 $ 10.6 $ 327.4 $ 338.0 The additions/adjustments for the MA segment in the table above relate primarily to adjustments made to the purchase accounting associated with the December 2008 acquisitions. Acquired Intangible assets consisted of: December 31, 2009 2008 Customer lists $ 80.6 $ 80.5 Accumulated amortization (42.8 ) (37.7 ) Net customer lists 37.8 42.8 Trade secret 25.5 25.5 Accumulated amortization (8.7 ) (6.6 ) Net trade secret 16.8 18.9 Software 55.0 55.2 Accumulated amortization (14.8 ) (11.0 ) Net software 40.2 44.2 Other 26.8 28.2 Accumulated amortization (16.7 ) (20.1 ) Net other 10.1 8.1 Total $ 104.9 $ 114.0 Other intangible assets primarily consist of databases, trade-names and covenants not to compete. Amortization expense for the years ended December31, 2009, 2008 and 2007 was $16.4 million, $28.2 million and $9.7 million, respectively. Estimated future annual amortization expense for intangible assets subject to amortization is as follows: Year Ending December31, 2010 $ 16.0 2011 15.0 2012 14.3 2013 14.1 2014 10.8 Thereafter 34.7 Intangible assets are reviewed for recoverability 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 or more frequently if circumstances indicate the assets may be impaired. For the year ended December31, 2009, there were no impairments to goodwill or to intangible assets. In 2008 an impairment of $11.1 million was recognized for certain software and database intangible assets within the MA segment, which is reflected in amortization expense. These intangible assets were determined to be impaired as a result of comparing the carrying amount to the undiscounted cash flows of the related asset group expected to result from the use and eventual disposition of the assets. The Company measured the amount of the impair

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE9 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consisted of: December 31, 2009 2008 Salaries and benefits $ 59.3 $ 49.7 Incentive compensation 75.6 47.1 Customer credits, advanced payments and advanced billings 14.8 23.4 Dividends 26.3 24.5 Professional service fees 35.5 23.9 Interest 9.6 10.2 Accounts payable 7.1 8.6 Income taxes (see Note 13) 20.3 3.5 Restructuring (see Note 10) 5.9 3.3 Other 62.8 46.2 Total $ 317.2 $ 240.4

RESTRUCTURING

RESTRUCTURING
	12 Months Ended Dec. 31, 2009 USD / shares
RESTRUCTURING	NOTE10 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 remaining liability of $5 million at December31, 2009 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 December31, 2009 for the 2009 Restructuring Plan was $15.6 million. The 2009 Restructuring Plan was 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 December31, 2009 for the 2007 Restructuring Plan was $49.4 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: Year Ended December31, 2009 2008 2007 2007 Restructuring Plan $ 1.9 $ (2.5 ) $ 50.0 2009 Restructuring Plan 15.6 Total $ 17.5 $ (2.5 ) $ 50.0 The expense in 2009 and 2008 related to the 2007 Restructuring Plan primarily reflects adjustments to previous estimates. Changes to the restructuring liability for the year ended December31, 2009 and 2008 were as follows: Employee Termination Costs Severance Pension Settlements Total Contract Termination Costs Total Restructuring Liability Balance at December31, 2007 $ 29.0 $ 8.1 $ 37.1 $ 4.1 $ 41.2 2007 Restructuring Plan: Costs incurred and adjustments (2.5 ) (2.5 ) 0.3 (2.2 ) Cash payments (25.0 ) (25.0 ) (2.6 ) (27.6 )

PENSION AND OTHER POST-RETIREME

PENSION AND OTHER POST-RETIREMENT BENEFITS
	12 Months Ended Dec. 31, 2009 USD / shares
PENSION AND OTHER POST-RETIREMENT BENEFITS	NOTE11 PENSION AND OTHER POST-RETIREMENT BENEFITS Moodys maintains funded and unfunded noncontributory Defined Benefit Pension Plans. The plans 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 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 at the Distribution Date, Moodys assumed responsibility for the pension and other post-retirement benefits relating to its active employees. New DB has assumed responsibility for the Companys retirees and vested terminated employees as of the Distribution Date. Through 2007, substantially all U.S. employees were eligible to participate in the Companys DBPPs. Effective January1, 2008, the Company no longer offers DBPPs to employees hired or rehired on or after January1, 2008 and new hires instead will receive a retirement contribution in 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. Following is a summary of changes in benefit obligations and fair value of plan assets for the Post-Retirement Plans for the years ended December31: Pension Plans Other Post-Retirement Plans 2009 2008 2009 2008 Change in Benefit Obligation: Benefit obligation, beginning of the period $ (171.8 ) $ (149.3 ) $ (11.0 ) $ (9.7 ) Service cost (12.1 ) (12.4 ) (0.8 ) (0.8 ) Interest cost (9.9 ) (9.7 ) (0.7 ) (0.6 ) Plan participants contributions (0.2 ) (0.1 ) Benefits paid 3.9 3.3 1.1 0.4 Plan amendments (2.5 ) Impact of curtailment 1.1 Impact of special termination benefits (2.8 ) Actuarial gain (loss) 7.4 (0.8 ) (0.7 ) (0.2 ) Assumption changes (28.0 ) (1.2 ) (0.8 ) Benefit obligation, end of the period (213.0 ) (171.8 ) (13.1 ) (11.0 ) Change in Plan Assets: Fair value of plan assets, beginning of the period 88.6 123.9 Actual return on plan assets 15.5 (33.9 ) Benefits paid (3.9 ) (3.3 ) (1.1 ) (0.4 ) Employer contributions 8.0 1.9 0.9 0.3 Plan participants contributions 0.2 0.1 Fair value of plan assets, end of the period 108.2 88.6 Funded

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS
	12 Months Ended Dec. 31, 2009 USD / shares
STOCK-BASED COMPENSATION PLANS	NOTE12 STOCK-BASED COMPENSATION PLANS Presented below is a summary of the stock compensation cost and associated tax benefit in the accompanying Consolidated Statements of Operations: Year Ended December31, 2009 2008 2007 Stock compensation cost $ 57.4 $ 63.2 $ 90.2 Tax benefit $ 20.9 $ 23.5 $ 34.0 The 2007 restructuring charge, as described in Note 10, includes $4.3 million relating to a stock award modification for three employees which is not included in the stock compensation cost for 2007 shown in the table above. The nature of the modification was to accelerate the vesting of certain awards for the affected employees as if they were retirement-eligible at the date of their termination. 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 Moodys 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 was determined by examining historical and projected post-vesting exercise behavior activity. The following weighted average assumptions were used for options granted: Year Ended December 31, 2009 2008 2007 Expected dividend yield 1.59% 1.06% 0.44% Expected stock volatility 38% 25% 23% Risk-free interest rate 2.63% 2.96% 4.78% Expected holding period 5.8yrs 5.5yrs 5.7yrs Grant date fair value $ 8.52 $ 9.73 $ 22.65 Under the 1998 Plan, 33.0million shares of the Companys common stock have been reserved for issuance. The 2001 Plan, which is shareholder approved, permits the granting of up to 28.6million shares, of which not more than 8.0million shares are available for grants of awards other than stock options. The 2001 Plan was amended and approved at the annual shareholders meeting on April24, 2007, increasing the number of shares reserved for issuance by 3.0million which are included in the aforementioned amounts. 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 and four years. Options may not be granted at less than the fair market value of the Companys common stock at the date of grant. The Stock Plans also provide for the granting of restricted stock. 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 Directors Plan provides that options are exercisable not later than

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES	NOTE13 INCOME TAXES Components of the Companys income tax provision are as follows: Year Ended December31, 2009 2008 2007 Current: Federal $ 99.2 $ 147.5 $ 277.0 State and Local 53.3 49.3 89.8 Non-U.S. 70.1 88.7 124.8 Total current 222.6 285.5 491.6 Deferred: Federal 22.8 (10.9 ) (64.9 ) State and Local (9.3 ) (0.8 ) (10.7 ) Non-U.S. 3.0 (5.6 ) (0.8 ) Total deferred 16.5 (17.3 ) (76.4 ) Total Income Tax Provision $ 239.1 $ 268.2 $ 415.2 Year Ended December31, 2009 2008 2007 U.S. statutory tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 4.4 4.1 4.6 Benefit of foreign operations (2.4 ) (2.6 ) (0.1 ) Legacy tax items (0.3 ) (0.3 ) (2.4 ) Other 0.3 0.5 (0.1 ) Effective tax rate 37.0 % 36.7 % 37.0 % Income tax paid $ 192.2 $ 319.9 $ 408.7 Year Ended December31, 2009 2008 2007 United States $ 386.9 $ 437.4 $ 814.7 International 259.3 292.4 307.3 Income before provision for income taxes $ 646.2 $ 729.8 $ 1,122.0 The components of deferred tax assets and liabilities are as follows: Year Ended December31, 2009 2008 Deferred tax assets: Current: Account receivable allowances $ 7.5 $ 6.5 Accrued compensation and benefits 10.5 7.8 Deferred revenue 7.9 5.5 Restructuring 2.6 3.0 Other 3.9 3.4 Total current 32.4 26.2 Non-current: Accumulated depreciation and amortization 1.3 1.9 Stock-based compensation 81.0 68.5 Benefit plans 43.8 39.1 Deferred rent and construction allowance 28.9 27.9 Deferred revenue 39.2 38.6 Foreign net operating loss (1) 7.1 3.6 Uncertain tax positions 46.0 59.8 Other 5.2 9.9 Total non-current 252.5 249.3 Total deferred tax assets 284.9 275.5 Deferred tax liabilities: Current: Prepaid expenses (0.3 ) Other (0.1 ) (0.2 ) Total current (0.1 ) (0.5 ) Non-current: Accumulated depreciation (19.2 ) (11.4 ) Foreign earnings to be repatriated (25.2 ) Amortization of intangible assets and capitalized software (39.0 ) (35.8 ) Other liabilities (3.4 ) (0.3 )

INDEBTEDNESS

INDEBTEDNESS
	12 Months Ended Dec. 31, 2009 USD / shares
INDEBTEDNESS	NOTE14 INDEBTEDNESS The following table summarizes total indebtedness: December31, 2009 2008 2007 Facility $ $ 613.0 Commercial paper, net of unamortized discount of $0.1 million at 2009 and $0.3 million at 2008 443.7 104.7 Current Portion of Long-Term Debt 3.8 Notes payable: Series 2005-1 Notes 300.0 300.0 Series 2007-1 Notes 300.0 300.0 2008 Term Loan 146.2 150.0 Total Debt 1,193.7 1,467.7 Current portion (447.5 ) (717.7 ) Total long-term debt $ 746.2 $ 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

CAPITAL STOCK

CAPITAL STOCK
	12 Months Ended Dec. 31, 2009 USD / shares
CAPITAL STOCK	NOTE15 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, 10.0million are shares of preferred stock and 10.0million are shares of series common stock. The preferred stock and series common stock can be issued with varying terms, as determined by the Board. Rights Agreement The Company had a rights agreement, which expired as of June30, 2008 and was not renewed. The rights agreement was designed to protect its shareholders in the event of unsolicited offers to acquire the Company and coercive takeover tactics that, in the opinion of the Board, could impair its ability to represent shareholder interests. Share Repurchase Program The Company implemented a systematic share repurchase program in the third quarter of 2005 through an SEC Rule10b5-1 program. Moodys may also purchase opportunistically when conditions warrant. On June5, 2006, the Board authorized a $2.0 billion share repurchase program, which the Company completed during January 2008. On July30, 2007, the Board of the Company authorized an additional $2.0 billion share repurchase program, which the Company began utilizing in January 2008 after completing the June 2006 authorization. There is no established expiration date for the remaining authorization. The Companys intent is to return capital to shareholders in a way that serves their long-term interests. As a result, Moodys share repurchase activity will continue to vary from quarter to quarter. During 2009, Moodys did not repurchase any of its common stock, and issued 1.9 millions shares under employee stock-based compensation plans. Dividends During 2009, 2008 and 2007, the Company paid a quarterly dividend of $0.10, $0.10 and $0.08 per share of Moodys common stock in each of the quarters, resulting in dividends paid per share during the years ended December31, 2009, 2008 and 2007 of $0.40, $0.40 and $0.32, respectively. On December15, 2009, the Board of the Company approved the declaration of a quarterly dividend of $0.105 per share of Moodys common stock, payable on March10, 2010 to shareholders of record at the close of business on February20, 2010. 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, 2009 USD / shares
LEASE COMMITMENTS	NOTE16 LEASE COMMITMENTS Moodys operates its business from various leased facilities, which are under operating leases that expire over the next 18 years. Moodys also leases certain computer and other equipment under operating and capital leases that expire over the next four years. Rent expense, including lease incentives, is amortized on a straight-line basis over the related lease term. Rent and amortization expense under operating leases for the years ended December31, 2009, 2008 and 2007 was $74.3 million, $64.4 million and $65.8 million, respectively. The amount of deferred rent that is included in other liabilities in the consolidated balance sheets is $90.8 million and $69.7 million at December31, 2009 and 2008, respectively. The Company has $4.8 million and $5.5 million of computer equipment subject to capital lease obligations at December31, 2009 and 2008, respectively, with accumulated amortization of $4.3 million and $2.9 million, respectively. The approximate minimum rent for leases that have remaining or original noncancelable lease terms in excess of one year at December31, 2009 is as follows: Year Ending December31, CapitalLeases OperatingLeases 2010 $ 1.3 $ 57.9 2011 50.6 2012 55.3 2013 54.6 2014 54.3 Thereafter 632.5 Total minimum lease payments $ 1.3 $ 905.2 Less: amount representing interest Present value of net minimum lease payments under capital leases $ 1.3 On October20, 2006, the Company entered into a 21-year operating lease agreement to occupy 15 floors of an office building at 7WTC which includes a total of 20 years of renewal options. On March28, 2007 the 7WTC lease agreement was amended for the Company to lease an additional two floors for a term of 20 years. The total base rent for the entire lease term, including rent credits, for the 7WTC lease is approximately $642 million. On February6, 2008, the Company entered into a 17.5 year operating lease agreement to occupy six floors of an office tower located in the Canary Wharf district of London, England. The total base rent of the Canary Wharf Lease over its 17.5-year term is approximately 134million GBPs, and the Company will begin making base rent payments in 2011. In addition to the base rent payments the Company will be obligated to pay certain customary amounts for its share of operating expenses and tax obligation. The Company expects to incur approximately 41million GBP of costs to build out the floors to its specifications of which, approximately 17million GBPs is expected to be incurred over the next twelve months.

CONTINGENCIES

CONTINGENCIES
	12 Months Ended Dec. 31, 2009 USD / shares
CONTINGENCIES	NOTE17 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 responding to such investigations and inquiries. Moodys is 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 2009, the

SEGMENT INFORMATION

SEGMENT INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
SEGMENT INFORMATION	NOTE18 SEGMENT INFORMATION Beginning in January 2008, Moodys segments were changed to reflect the business Reorganization announced in August 2007. As a result of the Reorganization, the rating agency is reported in the MIS segment and several ratings business lines have been realigned. All of Moodys other non-rating commercial activities are reported in the MA segment. As a result, the Company began operating in two new reportable segments beginning in January 2008. 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, all of which were previously included in the former MIS segment, are allocated to each new 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 represents intersegment royalty revenue/expense. Below is financial information by segment, MIS revenue by business unit and consolidated revenue by geographic area and total assets by segment. The effects of the change in the composition of reportable segments have been reflected throughout the accompanying financial statements. FINANCIAL INFORMATION BY SEGMENT: Year Ended December31, 2009 2008 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Revenue $ 1,277.7 $ 579.5 $ (60.0 ) $ 1,797.2 $ 1,268.3 $ 550.7 $ (63.6 ) $ 1,755.4 Expenses: Operating and SGA 680.1 408.0 (60.0 ) 1,028.1 636.0 362.2 (63.6 ) 934.6 Restructuring 9.1 8.4 17.5 (1.6 ) (0.9 ) (2.5 ) Depreciation and amortization 31.3 32.8 64.1 33.3 41.8 75.1 Total 720.5 449.2 (60.0 ) 1,109.7 667.7 403.1 (63.6 ) 1,007.2 Operating income $ 557.2 $ 130.3 $ $ 687.5 $ 600.6 $ 147.6 $ $ 748.2 Year Ended December31, 2007 MIS MA Eliminations/ CorporateItems Consolidated Revenue $ 1,835.4 $ 479.1 $ (55.5 ) $ 2,259.0 Expenses: Operating and SGA 759.4 331.2 (55.5 ) 1,035.1 Restructuring 41.3 8.7 50.0 Depreciation and amortization 24.0 18.9 42.9 Total 824.7 358.8 (55.5 ) 1,128.0 Operating income $ 1,010.7 $ 120.3 $ $ 1,131.0 MIS AND MA REVENUE BY LINE OF BUSINESS As part of th

VALUATION AND QUALIFYING ACCOUN

VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
VALUATION AND QUALIFYING ACCOUNTS	NOTE19 VALUATION AND QUALIFYING ACCOUNTS Accounts receivable allowances primarily represent adjustments to customer billings that are estimated when the related revenue is recognized. Below is a summary of activity: Year Ended December 31, BalanceatBeginning oftheYear Additions Write-offs and Adjustments Balance atEndof the Year 2009 $ (23.9 ) $ (41.2 ) $ 40.5 $ (24.6 ) 2008 $ (16.2 ) $ (39.6 ) $ 31.9 $ (23.9 ) 2007 $ (14.5 ) $ (39.3 ) $ 37.6 $ (16.2 )

OTHER NON-OPERATING INCOME

OTHER NON-OPERATING INCOME (EXPENSE), NET
	12 Months Ended Dec. 31, 2009 USD / shares
OTHER NON-OPERATING INCOME (EXPENSE), NET	NOTE20 OTHER NON-OPERATING INCOME (EXPENSE), NET The following table summarizes the components of other non-operating income (expense) as presented in the consolidated statements of operations: Year EndedDecember31, 2009 2008 2007 FX gain/(loss) $ (9.5 ) $ 24.7 $ 0.2 Legacy Tax (see Note 17) 11.0 14.4 Joint venture income 6.1 3.9 2.2 Other (4.5 ) (5.8 ) (1.5 ) Total $ (7.9 ) $ 33.8 $ 15.3

QUARTERLY FINANCIAL DATA

QUARTERLY FINANCIAL DATA (UNAUDITED)
	12 Months Ended Dec. 31, 2009 USD / shares
QUARTERLY FINANCIAL DATA (UNAUDITED)	NOTE21 QUARTERLY FINANCIAL DATA (UNAUDITED) Three Months Ended (amounts in millions, except EPS) March31 June30 September30 December31 2009 Revenue $ 408.9 $ 450.7 $ 451.8 $ 485.8 Operating income $ 148.9 $ 187.2 $ 172.5 $ 178.9 Net income attributable to Moodys $ 90.2 $ 109.3 $ 100.6 $ 101.9 EPS: Basic $ 0.38 $ 0.46 $ 0.43 $ 0.43 Diluted $ 0.38 $ 0.46 $ 0.42 $ 0.43 2008 Revenue $ 430.7 $ 487.6 $ 433.4 $ 403.7 Operating income $ 199.3 $ 233.7 $ 189.8 $ 125.4 Net income attributable to Moodys $ 120.7 $ 135.2 $ 113.0 $ 88.7 EPS: Basic $ 0.49 $ 0.55 $ 0.47 $ 0.38 Diluted $ 0.48 $ 0.54 $ 0.46 $ 0.37 Basic and diluted EPS are computed for each of the periods presented. The number of weighted average shares outstanding changes as common shares are issued pursuant to employee stock plans and for other purposes or as shares are repurchased. Therefore, the sum of basic and diluted EPS for each of the four quarters may not equal the full year basic and diluted EPS. The quarterly financial data includes an $8.2 million, $7.8 million and $2.9 million benefit to net income related to the resolution of Legacy Tax Matters for the three months ended June30, 2009, June30, 2008 andSeptember30, 2008, respectively. There was an $11.8 million pre-tax restructuring charge for the three months ended March31, 2009.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS
	12 Months Ended Dec. 31, 2009 USD / shares
SUBSEQUENT EVENTS	NOTE22 SUBSEQUENT EVENTS Subsequent events were evaluated by the Company through the date the financial statements were issued. There were no events that occurred subsequent to December31, 2009 that would require recognition in the Companys consolidated financial statements.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Trading Symbol	MCO
Entity Registrant Name	MOODYS CORP /DE/
Entity Central Index Key	0001059556
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		236,900,000
Entity Public Float			$6,200,000,000