Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | MCO |
Entity Registrant Name | MOODYS CORP /DE/ |
Entity Central Index Key | 1059556 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 202.2 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | $865.60 | $767.20 |
Expenses | ||
Operating | 244.4 | 216 |
Selling, general and administrative | 221.3 | 195.1 |
Depreciation and amortization | 28.6 | 23.1 |
Total expenses | 494.3 | 434.2 |
Operating Income | 371.3 | 333 |
Non-operating (expense) income, net | ||
Interest expense, net | -29.3 | -23.8 |
Other non-operating income (expense), net | 2.5 | 2.4 |
Total non-operating (expense) income, net | -26.8 | -21.4 |
Income before provisions for income taxes | 344.5 | 311.6 |
Provision for income taxes | 113.2 | 89.9 |
Net income | 231.3 | 221.7 |
Less: Net income attributable to noncontrolling interests | 1.2 | 3.7 |
Net income attributable to Moody's | $230.10 | $218 |
Earnings per share attributable to Moody's common shareholders | ||
Basic | $1.14 | $1.02 |
Diluted | $1.11 | $1 |
Weighted average number of shares outstanding | ||
Basic | 202.7 | 214 |
Diluted | 206.5 | 218.5 |
Dividends declared per share attributable to Moody's common shareholders | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(USD ($)) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $231.30 | $221.70 |
Foreign currency translation adjustment-Pre Tax Amount | -109.4 | -4.8 |
Foreign currency translation adjustment-Tax Amount | 0 | 0 |
Foreign currency translation adjustments-Net of Tax | -109.4 | -4.8 |
Cash Flow And Net Investment Hedges [Abstract] | ||
Net unrealized gain (losses) on cash flow and net investment hedges- Pre Tax | 31.6 | -3.6 |
Net unrealized gain (losses) on cash flow and net investment hedges-Tax Amount | -12.7 | 1.5 |
Net unrealized losses on cash flow and net investment hedges | 18.9 | -2.1 |
Reclassification of losses included in net income-Pre Tax | 0 | 0 |
Reclassification of losses included in net income-Tax Amount | 0 | 0 |
Reclassification of losses included in net income- Net of Tax | 0 | 0 |
Pension and Other Retirement Benefits Net of Tax [Abstract] | ||
Amortization of actuarial losses and prior service costs included in net income (pre-tax) | 3.8 | 1.7 |
Amortization of actuarial losses and prior service costs included in net income (tax) | 1.5 | 1.5 |
Amortization of actuarial losses and prior service costs included in net income | 2.3 | 0.2 |
Net actuarial losses and prior service costs (pre-tax) | 0 | 0 |
Net actuarial losses and prior service costs (tax) | 0 | 0 |
Net actuarial losses and prior service costs | 0 | 0 |
Total other comprehensive income (loss)-Pre Tax | -73 | -6.7 |
Net current period other comprehensive income/(loss) | 14.2 | 0 |
Comprehensive income (loss) | 144.1 | 215 |
Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest | 1.2 | 3.7 |
Comprehensive income attributable to Moody's | 142.9 | 211.3 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | -0.1 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 0 | 0 |
Total Reclassifications | -0.1 | 0 |
Available for sale securities [Abstract] | ||
Unrealized Gains On Available For Sale Securities Pre Tax | 1.1 | 0 |
Unrealized Gains On Available For Sale Securities Tax | 0 | 0 |
Unrealized Gains On Available For Sale Securities Net Of Tax | 1.1 | 0 |
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax | 0 | 0 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Tax | 0 | 0 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Net Of Tax | $0 | $0 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,509.90 | $1,219.50 |
Short-term investments | 485.5 | 458.1 |
Accounts receivable, net of allowances of $30.0 in 2012 and $28.0 in 2011 | 842.7 | 792.4 |
Deferred tax assets, net | 36.8 | 43.9 |
Other current assets | 164.4 | 172.5 |
Total current assets | 3,039.30 | 2,686.40 |
Property and equipment, net of accumulated depreciation of $286.6 in 2012 and $258.2 in 2011 | 299.3 | 302.3 |
Goodwill | 988 | 1,021.10 |
Intangible assets, net | 328 | 345.5 |
Deferred tax assets, net | 154.7 | 167.8 |
Other assets | 166.7 | 145.9 |
Total assets | 4,976 | 4,669 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 379.2 | 557.6 |
Deferred revenue | 737.7 | 624.6 |
Total current liabilities | 1,138.20 | 1,199.70 |
Deferred tax liabilities, net | 21.3 | 17.5 |
Non-current portion of deferred revenue | 132.3 | 132.2 |
Long-term debt | 3,095.10 | 2,547.30 |
Deferred tax liabilities, net | 90 | 95.7 |
Unrecognized tax benefits | 222.5 | 220.3 |
Other liabilities | 444.1 | 430.9 |
Total liabilities | 5,122.20 | 4,626.10 |
Contingencies (Note 14) | ||
Redeemable noncontrolling interest | ||
Shareholders' equity(deficit): | ||
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Capital surplus | 370.6 | 383.9 |
Retained earnings | 6,276.40 | 6,044.30 |
Treasury stock, at cost; 120,619,040 and 120,462,232 shares of common stock at June 30, 2012 and December 31, 2011, respectively | 6,701.70 | 6,384.20 |
Accumulated other comprehensive loss | -322.4 | -235.2 |
Total Moody's shareholders' equity (deficit) | -373.7 | -187.8 |
Noncontrolling interests | 227.5 | 230.7 |
Total shareholders' equity (deficit) | -146.2 | 42.9 |
Total liabilities, redeemable noncontrolling interest and shareholders' equity (deficit) | 4,976 | 4,669 |
Nonvoting Common Stock [Member] | ||
Shareholders' equity(deficit): | ||
Common stock | ||
Common Stock [Member] | ||
Shareholders' equity(deficit): | ||
Common stock | $3.40 | $3.40 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Accounts receivable, allowances | $30.90 | $29.40 |
Property and equipment, accumulated depreciation | $467.60 | $451.50 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 1,000,000,000 | |
Treasury stock, shares | 140,734,823 | 138,539,128 |
Nonvoting Common Stock [Member] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
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 [Member] | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000,000,000 | |
Common stock, shares issued | 342,902,272 | 342,902,272 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income | $231.30 | $221.70 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 28.6 | 23.1 |
Stock-based compensation expense | 22.7 | 20.3 |
Deferred income taxes | 7.6 | 27.9 |
Excess tax benefits from stock-based compensation plans | -37.4 | -38.8 |
Legacy Tax Matters | 0 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | -62.7 | -42.8 |
Other current assets | 2.9 | -5 |
Other assets | -13.9 | -1.8 |
Accounts payable and accrued liabilities | -72.8 | -131.8 |
Deferred revenue | 127.9 | 114 |
Unrecognized tax benefits | 7.4 | -5.5 |
Other liabilities | 20.2 | -4.1 |
Net cash provided by operating activities | 261.8 | 177.2 |
Cash flows from investing activities | ||
Capital additions | -19 | -19.1 |
Purchases of short-term investments | -167.9 | -4.3 |
Sales and maturities of short-term investments | 116.8 | 13.8 |
Cash paid into escrow for ICRA share tender offer | 0 | -72.6 |
Receipts from settlement of net investment hedges | 20.8 | 0 |
Net cash used in investing activities | -49.3 | -82.2 |
Cash flows from financing activities | ||
Issuance of notes | 552.8 | 0 |
Repayments of notes | ||
Net proceeds from stock-based compensation plans | -23.9 | 6 |
Cost of treasury shares repurchased | -365.8 | -201.6 |
Excess tax benefits from stock-based compensation plans | 37.4 | 38.8 |
Payment of dividends | -68.7 | -59.9 |
Payment of dividends to noncontrolling interests | -3.7 | -5.4 |
Debt issuance costs and related fees | -4.2 | 0 |
Net cash used in financing activities | 123.9 | -222.1 |
Effect of exchange rate changes on cash and cash equivalents | -46 | -0.2 |
Net increase in cash and cash equivalents | 290.4 | -127.3 |
Cash and cash equivalents, beginning of the period | 1,219.50 | 1,919.50 |
Cash and cash equivalents, end of the period | $1,509.90 | $1,792.20 |
GLOSSARY_OF_TERMS_AND_ABBREVIA
GLOSSARY OF TERMS AND ABBREVIATIONS | 3 Months Ended |
Mar. 31, 2015 | |
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 | |
Adjusted Operating Income Operating income excluding depreciation and amortization | |
Adjusted Operating Margin Operating margin excluding depreciation and amortization | |
Amba Amba Investment Services; a provider of outsourced investment research and quantitative analytics for global financial institutions; a majority owned subsidiary of the Company acquired 100% of Amba in December 2013 | |
Americas Represents countries within North and South America, excluding the U.S. | |
AOCI Accumulated other comprehensive income (loss); a separate component of shareholders’ equity | |
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 | |
Asia-Pacific Represents countries in Asia including but not limited to: Australia, China, India, Indonesia, Japan, Korea, Malaysia, Singapore, Sri Lanka and Thailand | |
ASU The FASB Accounting Standards Update 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 | |
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, occupied by the Company in the second half of 2009 | |
CDO Collateralized debt obligation | |
CFG Corporate finance group; an LOB of MIS | |
CLO Collateralized loan obligation | |
CMBS Commercial mortgage-backed securities; part of the CREF asset class within SFG | |
Company Moody’s Corporation and its subsidiaries; MCO; Moody’s | |
Copal Copal Partners; an acquisition completed in November 2011; part of the MA segment; leading provider of outsourced research and analytical services to institutional investors | |
Copal Amba Operating segment created in January 2014 that consists of all operations from Copal as well as the operations of Amba. The Copal Amba operating segment provides outsourced research and analytical services to the global financial and corporate sectors | |
Council Council of the European Union | |
CRAs Credit rating agencies | |
CRA3 Regulation (EU) No 462/2013 of the European Parliament and of the Council, which updated the regulatory regimes imposing additional procedural requirements on CRAs | |
CREF Commercial real estate finance which includes REITs, commercial real estate CDOs and mortgage-backed securities; part of SFG | |
CSI CSI Global Education, Inc.; an acquisition completed in November 2010; part of the MA segment; a provider of financial learning, credentials, and certification services primarily in Canada | |
D&B Business Old D&B’s Dun & Bradstreet operating company | |
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 | |
EBITDA Earnings before interest, taxes, depreciation and amortization | |
EMEA Represents countries within Europe, the Middle East and Africa | |
EPS Earnings per share | |
ERS The enterprise risk solutions LOB within MA which offers risk management software products as well as software implementation services and related risk management advisory engagements | |
ESMA European Securities and Markets Authority | |
ETR Effective tax rate | |
EU European Union | |
EUR Euros | |
European Ratings Platform Central credit ratings website administered by ESMA | |
Excess Tax Benefits The difference between the tax benefit realized at exercise of an option or delivery of a restricted share and the tax benefit recorded at the time the option or restricted share is expensed under GAAP | |
Exchange Act The Securities Exchange Act of 1934, as amended | |
FASB Financial Accounting Standards Board | |
FIG Financial institutions group; an LOB of MIS | |
Financial Reform Act Dodd-Frank Wall Street Reform and Consumer Protection Act | |
Free Cash Flow Net cash provided by operating activities less cash paid for capital additions | |
FSTC Financial Services Training and Certifications; a reporting unit within the MA segment that includes on-line and classroom-based training services and CSI | |
FX Foreign exchange | |
GAAP U.S. Generally Accepted Accounting Principles | |
GBP British pounds | |
ICRA ICRA Limited.; a leading provider of credit ratings and research in India. The Company previously held 28.51% equity ownership and in June 2014, increased that ownership stake to 50.06% through the acquisition of additional shares | |
ICRA Acquisition The June 2014 purchase of an additional 21.55% ownership interest in ICRA resulting in majority ownership and consolidation if ICRAs financial statements. ICRAs results are consolidated into Moody’s financial statements on a three-month lag | |
IRS Internal Revenue Service | |
IT Information technology | |
KIS Korea Investors Service, Inc; a leading Korean rating agency and consolidated subsidiary of the Company | |
KIS Pricing Korea Investors Service Pricing, Inc; a leading Korean provider of fixed income securities pricing and consolidated subsidiary of the Company | |
Legacy Tax Matter(s) Exposures to certain potential tax liabilities assumed in connection with the 2000 Distribution | |
Lewtan Lewtan Technologies; a leading provider of analytical tools and data for the global structured finance market; an acquisition completed in October 2014 | |
LIBOR London Interbank Offered Rate | |
LOB Line of business | |
MA Moody’s Analytics – a reportable segment of MCO formed in January 2008 which provides a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets; consists of three LOBs – RD&A, ERS and PS | |
M&A Mergers and acquisitions | |
Make Whole Amount The prepayment penalty amount relating to the Series 2007-1 Notes, 2010 Senior Notes, 2012 Senior Notes, 2013 Senior Notes, 2014 Senior Notes (5-year) and 2014 Senior Notes (30-year) which is a premium based on the excess, if any, of the discounted value of the remaining scheduled payments over the prepaid principal | |
MCO Moody’s Corporation and its subsidiaries; the Company; Moody’s | |
MD&A Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
MIS Moody’s Investors Service – a reportable segment of MCO; consists of five LOBs – SFG, CFG, FIG, PPIF and MIS Other | |
MIS Other Consists of non-ratings revenue from ICRA, KIS Pricing and KIS Research. These businesses are managed by MIS; an LOB of MIS | |
Moody’s Moody’s Corporation and its subsidiaries; MCO; the Company | |
Net Income Net income attributable to Moody’s Corporation, which excludes net income from consolidated noncontrolling interests belonging to the minority interest holder | |
New D&B The New D&B Corporation – which comprises the D&B Business | |
NM Percentage change is not meaningful | |
NRSRO Nationally Recognized Statistical Rating Organization | |
OCI Other comprehensive income (loss); includes gains and losses on cash flow and net investment hedges, certain gains and losses relating to pension and other retirement benefit obligations and foreign currency translation adjustments | |
Old D&B The former Dun and Bradstreet Company which distributed New D&B shares on September 30, 2000, and was renamed Moody’s Corporation | |
PPIF Public, project and infrastructure finance; an LOB of MIS | |
Profit Participation Plan Defined contribution profit participation plan that covers substantially all U.S. employees of the Company | |
PS Professional Services, an LOB within MA that provides outsourced research and analytical services as well as financial training and certification programs | |
RD&A Research, Data and Analytics; an LOB within MA that produces, sells and distributes research, data and related content. Includes products generated by MIS, such as analyses on major debt issuers, industry studies, and commentary on topical credit events, as well as economic research, data, quantitative risk scores, and other analytical tools that are produced within MA | |
Redeemable Noncontrolling Represents minority shareholders’ interest in entities which are controlled but not | |
Interest wholly-owned by Moody’s and for which Moody’s obligation to redeem the minority shareholders’ interest is in the control of the minority shareholders | |
Reform Act Credit Rating Agency Reform Act of 2006 | |
REIT Real Estate Investment Trust | |
Relationship Revenue In MIS, excluding MIS Other, relationship revenue represents the recurring monitoring of a rated debt obligation and/or entities that issue such obligations, as well as revenue from programs such as commercial paper, medium-term notes and shelf registrations. In MIS Other, relationship revenue represents subscription-based revenue. For MA, revenue represents subscription-based revenue and maintenance revenue | |
Retirement Plans Moody’s funded and unfunded pension plans, the retirement healthcare plans and retirement life insurance plans | |
SEC U.S. Securities and Exchange Commission | |
Securities Act Securities Act of 1933 | |
Series 2007-1 Notes Principal amount of $300 million, 6.06% senior unsecured notes due in September 2017 pursuant to the 2007 Agreement | |
SFG Structured finance group; an LOB of MIS | |
SG&A Selling, general and administrative expenses | |
Total Debt All indebtedness of the Company as reflected on the consolidated balance sheets | |
Transaction Revenue For MIS, excluding MIS Other, revenue representing the initial rating of a new debt issuance as well as other one-time fees. In MIS Other, transaction revenue represents revenue from professional services and outsourcing engagements. For MA, revenue represents software license fees and revenue from risk management advisory projects, training and certification services, and outsourced research and analytical engagements | |
U.K. United Kingdom | |
U.S. United States | |
U.S. Shared National Credit Interagency program designed to evaluate large and complex syndicated credits. Program The program is administered by the three federal banking regulatory agencies which | |
include the Federal Reserve System, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC). | |
USD U.S. dollar | |
UTBs Unrecognized tax benefits | |
UTPs Uncertain tax positions | |
WebEquity WebEquity Solutions LLC; a leading provider of cloud-based loan origination solutions for financial institutions; part of the ERS LOB within MA | |
2000 Distribution The distribution by Old D&B to its shareholders of all the outstanding shares of New D&B common stock on September 30, 2000 | |
2000 Distribution Agreement Agreement governing certain ongoing relationships between the Company and New D&B after the 2000 Distribution including the sharing of any liabilities for the payment of taxes, penalties and interest resulting from unfavorable IRS rulings on certain tax matters and certain other potential tax liabilities | |
2007 Agreement Note purchase agreement dated September 7, 2007, relating to the Series 2007-1 Notes | |
2008 Term Loan Five-year $150 million senior unsecured term loan entered into by the Company on May 7, 2008 | |
2010 Indenture Supplemental indenture and related agreements dated August 19, 2010, relating to the 2010 Senior Notes | |
2010 Senior Notes Principal amount of $500 million, 5.50% senior unsecured notes due in September 2020 pursuant to the 2010 Indenture | |
2012 Indenture Supplemental indenture and related agreements dated August 18, 2012, relating to the 2012 Senior Notes | |
2012 Senior Notes Principal amount of $500 million, 4.50% senior unsecured notes due in September 2022 pursuant to the 2012 Indenture | |
2012 Facility Revolving credit facility of $1 billion entered into on April 18, 2012, expiring in 2017 | |
2013 Indenture Supplemental indenture and related agreements dated August 12, 2013, relating to the 2013 Senior Notes | |
2013 Senior Notes Principal amount of $500 million, 4.875% senior unsecured notes due in February 2024 pursuant to the 2013 Indenture | |
2014 Indenture Supplemental indenture and related agreements dated July 16, 2014, relating to the 2014 Senior Notes | |
2014 Senior Notes (5-Year) Principal amount of $450 million, 2.75% senior unsecured notes due in July 2019 | |
2014 Senior Notes (30-Year) Principal amount of $300 million, 5.25% senior unsecured notes due in July 2044 | |
2015 Indenture Supplemental indenture and related agreements dated March 9, 2015, relating to the 2015 Senior Notes | |
2015 Senior Notes Principal amount €500 million, 1.75% senior unsecured notes issued March 9, 2015 and due in March 2027 | |
7WTC The Company’s corporate headquarters located at 7 World Trade Center in New York, NY | |
7WTC Lease Operating lease agreement entered into on October 20, 2006 |
DESCRIPTION_OF_BUSINESS_AND_BA
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION |
Moody’s is a provider of (i) credit ratings, (ii) credit, capital markets and economic research, data and analytical tools, (iii) software solutions and related risk management services, (iv) quantitative credit risk measures, financial services training and certification services and (v) outsourced research and analytical services. Moody’s has two reportable segments: MIS and MA. | |
MIS, the credit rating agency, publishes credit ratings on a wide range of debt obligations and the entities that issue such obligations in markets worldwide. Revenue is primarily derived from the originators and issuers of such transactions who use MIS ratings in the distribution of their debt issues to investors. Additionally, MIS earns revenue from certain non-ratings-related operations which consist primarily of the distribution of research and fixed income pricing services in the Asia-Pacific region and outsourced services. The revenue from these operations is included in the MIS Other LOB and is not material to the results of the MIS segment. | |
The MA segment develops a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets. Within its Research, Data and Analytics business, MA distributes research and data developed by MIS as part of its ratings process, including in-depth research on major debt issuers, industry studies and commentary on topical credit-related events. The RD&A business also produces economic research as well as data and analytical tools such as quantitative credit risk scores. Within its Enterprise Risk Solutions business, MA provides software solutions as well as related risk management services. The Professional Services business provides outsourced research and analytical services along with financial training and certification programs. | |
These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the Company’s consolidated financial statements and related notes in the Company’s 2014 annual report on Form 10-K filed with the SEC on February 25, 2015. The results of interim periods are not necessarily indicative of results for the full year or any subsequent period. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the periods presented have been included. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Recovered_Sheet1
Description of Business and Basis of Presentation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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: | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Stock-based compensation cost | $ | 22.7 | $ | 20.3 | |||
Tax benefit | $ | 7.9 | $ | 6.3 | |||
During the first Three months of 2015, the Company granted 0.3 million employee stock options, which had a weighted average grant date fair value of $36.06 per share based on the Black-Scholes option-pricing model. The Company also granted 0.8 million shares of restricted stock in the first Three months of 2015, which had a weighted average grant date fair value of $98.01 per share and generally vest ratably over a four-year period. Additionally, the Company granted approximately 0.2 million shares of performance-based awards whereby the number of shares that ultimately vest are based on the achievement of certain non-market based performance metrics of the Company over a three-year period. The weighted average grant date fair value of these awards was $94.01 per share. | |||||||
The following weighted average assumptions were used in determining the fair value for options granted in 2015: | |||||||
Expected dividend yield | 1.39% | ||||||
Expected stock volatility | 39.40% | ||||||
Risk-free interest rate | 1.88% | ||||||
Expected holding period | 6.9 years | ||||||
Grant date fair value | $36.06 | ||||||
Unrecognized compensation expense at March 31, 2015 was $15.6 million and $148.5 million for stock options and unvested restricted stock, respectively, which is expected to be recognized over a weighted average period of 1.4 years and 1.9 years, respectively. Additionally, there was $24.5 million of unrecognized compensation expense relating to the aforementioned non-market based performance-based awards, which is expected to be recognized over a weighted average period of 1.2 years. | |||||||
The following tables summarize information relating to stock option exercises, restricted stock vesting and the delivery of performance-based awards: | |||||||
Three Months Ended | |||||||
March 31, | |||||||
Exercise of stock options: | 2015 | 2014 | |||||
Proceeds from stock option exercises | $ | 33.5 | $ | 56.1 | |||
Aggregate intrinsic value | $ | 32.1 | $ | 42.9 | |||
Tax benefit realized upon exercise | $ | 11.9 | $ | 16.1 | |||
Number of shares exercised | 0.7 | 1.2 | |||||
Three Months Ended | |||||||
March 31, | |||||||
Vesting of restricted stock: | 2015 | 2014 | |||||
Fair value of shares vested | $ | 108.9 | $ | 91.4 | |||
Tax benefit realized upon vesting | $ | 35.9 | $ | 31.8 | |||
Number of shares vested | 1.1 | 1.2 | |||||
Three Months Ended | |||||||
March 31, | |||||||
Vesting of performance-based restricted stock: | 2015 | 2014 | |||||
Fair value of shares vested | $ | 43.1 | $ | 38 | |||
Tax benefit realized upon vesting | $ | 16.1 | $ | 14.8 | |||
Number of shares vested | 0.5 | 0.5 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Stock-Based Compensation Cost and Associated Tax Benefit | Three Months Ended | ||||||
March 31, | |||||||
2015 | 2014 | ||||||
Stock-based compensation cost | $ | 22.7 | $ | 20.3 | |||
Tax benefit | $ | 7.9 | $ | 6.3 | |||
Weighted Average Assumptions used in Determining Fair Value for Options Granted | Expected dividend yield | 1.39% | |||||
Expected stock volatility | 39.40% | ||||||
Risk-free interest rate | 1.88% | ||||||
Expected holding period | 6.9 years | ||||||
Grant date fair value | $36.06 | ||||||
Stock Option Exercises and Restricted Stock Vesting | Three Months Ended | ||||||
March 31, | |||||||
Exercise of stock options: | 2015 | 2014 | |||||
Proceeds from stock option exercises | $ | 33.5 | $ | 56.1 | |||
Aggregate intrinsic value | $ | 32.1 | $ | 42.9 | |||
Tax benefit realized upon exercise | $ | 11.9 | $ | 16.1 | |||
Number of shares exercised | 0.7 | 1.2 | |||||
Three Months Ended | |||||||
March 31, | |||||||
Vesting of restricted stock: | 2015 | 2014 | |||||
Fair value of shares vested | $ | 108.9 | $ | 91.4 | |||
Tax benefit realized upon vesting | $ | 35.9 | $ | 31.8 | |||
Number of shares vested | 1.1 | 1.2 | |||||
Three Months Ended | |||||||
March 31, | |||||||
Vesting of performance-based restricted stock: | 2015 | 2014 | |||||
Fair value of shares vested | $ | 43.1 | $ | 38 | |||
Tax benefit realized upon vesting | $ | 16.1 | $ | 14.8 | |||
Number of shares vested | 0.5 | 0.5 |
StockBased_Compensation_Cost_a
Stock-Based Compensation Cost and Associated Tax Benefit (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||
Stock compensation cost | $22.70 | $20.30 |
Tax benefit | $7.90 | $6.30 |
Weighted_Average_Assumptions_u
Weighted Average Assumptions used in Determining Fair Value for Options Granted (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Schedule Of Weighted Average Assumptions For Fair Values Of Stock Options [Line Items] | |
Expected dividend yield | 1.39% |
Expected stock volatility | 39.35% |
Risk-free interest rate | 1.88% |
Expected holding period | 7 years 2 months 12 days |
Grant date fair value | $36.06 |
Stock_Option_Exercises_and_Res
Stock Option Exercises and Restricted Stock Vesting (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Proceeds from stock option exercises | $33.50 | $56.10 |
Aggregate intrinsic value | 32.1 | 42.9 |
Tax benefit realized upon exercise/vesting | 11.9 | 16.1 |
Number of shares exercised | 0.7 | 1.2 |
Restricted Stock [Member] | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Fair value of shares vested | 108.9 | 91.4 |
Tax benefit realized upon exercise/vesting | 35.9 | 31.8 |
Number of shares vested | 1.1 | 1.2 |
Restricted Stock [Member] | Non Market Performance Based Vesting Condition [Member] | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Fair value of shares vested | 43.1 | 38 |
Tax benefit realized upon exercise/vesting | $16.10 | $14.80 |
Number of shares vested | 0.5 | 0.5 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Employee stock options, weighted average grant date fair value | $36.06 |
Employee Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Employee stock options, granted | 0.3 |
Restricted stock, weighted average grant date fair value | $98.01 |
Unrecognized compensation expense | $15.60 |
Weighted average period to recognize expense | 1 year 5 months |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted stock, granted | 0.8 |
Unrecognized compensation expense | 148.5 |
Weighted average period to recognize expense | 1 year 11 months |
Non Market Performance Based Vesting Condition [Member] | Employee Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted stock, weighted average grant date fair value | $94.01 |
Unrecognized compensation expense | $24.50 |
Non Market Performance Based Vesting Condition [Member] | Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted stock, granted | 0.2 |
Weighted average period to recognize expense | 11 months |
INCOME_TAXES
INCOME TAXES | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
INCOME TAXES | NOTE 3. INCOME TAXES | |||||||||||
Moody’s effective tax rate was 32.9% and 28.9% for the three months ended March 31, 2015 and 2014, respectively. The increase in the ETR reflects a benefit related to the reversal of UTBs resulting from the favorable resolution of certain international tax matters in the prior year partially offset by lower state taxes in 2015. | ||||||||||||
The Company classifies interest related to UTBs in interest expense, net in its consolidated statements of operations. Penalties, if incurred, would be recognized in other non-operating (expense) income, net. | ||||||||||||
Moody’s Corporation and subsidiaries are subject to U.S. federal income tax as well as income tax in various state, local and foreign jurisdictions. The Company’s U.S. federal income tax returns for the years 2008 through 2010 are under examination and its returns for 2011 through 2013 remain open to examination. The Company’s New York City tax return for 2013 is currently under examination. The Company’s U.K. tax return for 2012 is currently under examination and its return for 2013 remains open to examination. | ||||||||||||
For ongoing audits, it is possible the balance of UTBs could decrease in the next twelve months as a result of the settlement of these audits, which might involve the payment of additional taxes, the adjustment of certain deferred taxes and/or the recognition of tax benefits. It is also possible that new issues might be raised by tax authorities which could necessitate increases to the balance of UTBs. As the Company is unable to predict the timing or outcome of these audits, it is therefore unable to estimate the amount of changes to the balance of UTBs at this time. However, the Company believes that it has adequately provided for its financial exposure relating to all open tax years by tax jurisdiction in accordance with the applicable provisions of Topic 740 of the ASC regarding UTBs. | ||||||||||||
The following table shows the amount the Company paid for income taxes: | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Income taxes paid* | $ | 31.4 | $ | 76.3 | ||||||||
* Payments in 2014 include $26 million of 2013 estimated federal taxes paid in the first quarter of 2014. | ||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Income Taxes Paid | Three Months Ended | |||||||||||
March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Income taxes paid* | $ | 31.4 | $ | 76.3 | ||||||||
* Payments in 2014 include $26 million of 2013 estimated federal taxes paid in the first quarter of 2014. | ||||||||||||
Income_Taxes_Paid_Detail
Income Taxes Paid (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Taxes [Line Items] | ||
Income Taxes Paid | $31.40 | $76.30 |
Income_Taxes_Paid_Parenthetica
Income Taxes Paid (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Income Taxes [Line Items] | |
Taxes Paid Deferred | $26 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Contingency [Line Items] | ||
Effective tax rate | 32.90% | 28.90% |
Overall increase (decrease) in unrecognized tax benefits (UTPs) | ($7.40) | $5.50 |
WEIGHTED_AVERAGE_SHARES_OUTSTA
WEIGHTED AVERAGE SHARES OUTSTANDING | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | NOTE 4. WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||
Below is a reconciliation of basic to diluted shares outstanding: | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Basic | 202.7 | 214 | |||||
Dilutive effect of shares issuable under stock-based compensation plans | 3.8 | 4.5 | |||||
Diluted | 206.5 | 218.5 | |||||
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock excluded from the table above | 1 | 1 | |||||
The calculation of diluted EPS requires certain assumptions regarding the use of both cash proceeds and assumed proceeds that would be received upon the exercise of stock options and vesting of restricted stock outstanding as of March 31, 2015 and 2014. These assumed proceeds include Excess Tax Benefits and any unrecognized compensation of the awards. |
WEIGHTED_AVERAGE_SHARES_OUTSTA1
WEIGHTED AVERAGE SHARES OUTSTANDING (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Reconciliation of Basic to Diluted Shares Outstanding | Three Months Ended | ||||||
March 31, | |||||||
2015 | 2014 | ||||||
Basic | 202.7 | 214 | |||||
Dilutive effect of shares issuable under stock-based compensation plans | 3.8 | 4.5 | |||||
Diluted | 206.5 | 218.5 | |||||
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock excluded from the table above | 1 | 1 |
Reconciliation_of_Basic_to_Dil
Reconciliation of Basic to Diluted Shares Outstanding (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule Of Earnings Per Share Basic And Diluted By Common Class [Line Items] | ||
Basic | 202.7 | 214 |
Dilutive effect of shares issuable under stock-based compensation plans | 3.8 | 4.5 |
Diluted | 206.5 | 218.5 |
Anti-dilutive options to purchase common shares and restricted stock excluded from the table above | 1 | 1 |
CASH_EQUIVALENT_AND_INVESTMENT
CASH EQUIVALENT AND INVESTMENTS | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
CASH EQUIVALENT AND INVESTMENT | NOTE 5 CASH EQUIVALENTS AND INVESTMENTS | |||||||||||||
The table below provides additional information on the Company’s cash equivalents and investments: | ||||||||||||||
As of March 31, 2015 | ||||||||||||||
Balance sheet location | ||||||||||||||
Cost | Gross Unrealized Gains | Fair Value | Cash and cash equivalents | Short-term investments | Other assets | |||||||||
Money market mutual funds | $ | 100.5 | $ | - | $ | 100.5 | $ | 100.5 | $ | - | $ | - | ||
Certificates of deposit and money market deposit accounts (1) | $ | 1,217.20 | $ | - | $ | 1,217.20 | $ | 727.4 | $ | 485.5 | $ | 4.3 | ||
Fixed maturity and open ended mutual funds (2) | $ | 45.3 | $ | 2 | $ | 47.3 | $ | - | $ | - | $ | 47.3 | ||
As of December 31, 2014 | ||||||||||||||
Balance sheet location | ||||||||||||||
Cost | Gross Unrealized Gains | Fair Value | Cash and cash equivalents | Short-term investments | Other assets | |||||||||
Money market mutual funds | $ | 149.7 | $ | - | $ | 149.7 | $ | 149.7 | $ | - | $ | - | ||
Certificates of deposit and money market deposit accounts (1) | $ | 842.5 | $ | - | $ | 842.5 | $ | 380.1 | $ | 458.1 | $ | 4.3 | ||
Fixed maturity and open ended mutual funds (2) | $ | 47.1 | $ | 0.9 | $ | 48 | $ | - | $ | - | $ | 48 | ||
(1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one month to eight months and one month to ten months at March 31, 2015 and December 31, 2014, respectively. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents. | ||||||||||||||
(2) Consists of investments in fixed maturity mutual funds and open-ended mutual funds. The remaining contractual maturities for the fixed maturity instruments range from one month to 20 months and two months to 23 months for three months ended March 31, 2015 and year ended December 31, 2014, respectively. | ||||||||||||||
The money market mutual funds as well as the fixed maturity and open ended mutual funds in the table above are deemed to be ‘available for sale’ under ASC Topic 320 and the fair value of these instruments is determined using Level 1 inputs as defined in the ASC. | ||||||||||||||
The total proceeds received in the three months ended March 31, 2015 for maturities of fixed maturity mutual funds was $0.8 million. The gross realized gains on these maturities were immaterial. |
CASH_EQUIVALENT_AND_INVESTMENT1
CASH EQUIVALENT AND INVESTMENTS (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Available For Sale Securities Schedule | ||||||||||||||
As of March 31, 2015 | ||||||||||||||
Balance sheet location | ||||||||||||||
Cost | Gross Unrealized Gains | Fair Value | Cash and cash equivalents | Short-term investments | Other assets | |||||||||
Money market mutual funds | $ | 100.5 | $ | - | $ | 100.5 | $ | 100.5 | $ | - | $ | - | ||
Certificates of deposit and money market deposit accounts (1) | $ | 1,217.20 | $ | - | $ | 1,217.20 | $ | 727.4 | $ | 485.5 | $ | 4.3 | ||
Fixed maturity and open ended mutual funds (2) | $ | 45.3 | $ | 2 | $ | 47.3 | $ | - | $ | - | $ | 47.3 | ||
As of December 31, 2014 | ||||||||||||||
Balance sheet location | ||||||||||||||
Cost | Gross Unrealized Gains | Fair Value | Cash and cash equivalents | Short-term investments | Other assets | |||||||||
Money market mutual funds | $ | 149.7 | $ | - | $ | 149.7 | $ | 149.7 | $ | - | $ | - | ||
Certificates of deposit and money market deposit accounts (1) | $ | 842.5 | $ | - | $ | 842.5 | $ | 380.1 | $ | 458.1 | $ | 4.3 | ||
Fixed maturity and open ended mutual funds (2) | $ | 47.1 | $ | 0.9 | $ | 48 | $ | - | $ | - | $ | 48 | ||
(1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one month to eight months and one month to ten months at March 31, 2015 and December 31, 2014, respectively. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents. | ||||||||||||||
(2) Consists of investments in fixed maturity mutual funds and open-ended mutual funds. The remaining contractual maturities for the fixed maturity instruments range from one month to 20 months and two months to 23 months for three months ended March 31, 2015 and year ended December 31, 2014, respectively. |
Recovered_Sheet2
Cash Equivalent and Investments (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities LineItems | ||
Fair Value | $47.30 | $48 |
money market | ||
Schedule Of Available For Sale Securities LineItems | ||
Cost | 149.7 | |
Gross Unrealized Gain | 0 | 0 |
Fair Value | 100.5 | 149.7 |
Certificates Of Deposit Member | ||
Schedule Of Available For Sale Securities LineItems | ||
Cost | 1,217.20 | 842.5 |
Gross Unrealized Gain | 0 | 0 |
Fair Value | 1,217.20 | 842.5 |
fixed maturity and mutual funds [Member] | ||
Schedule Of Available For Sale Securities LineItems | ||
Cost | 45.3 | 47.1 |
Gross Unrealized Gain | 2 | 0.9 |
Fair Value | 47.3 | 48 |
CashAndCashEquivalentsMember | money market | ||
Schedule Of Available For Sale Securities LineItems | ||
Fair Value | 100.5 | 149.7 |
CashAndCashEquivalentsMember | Certificates Of Deposit Member | ||
Schedule Of Available For Sale Securities LineItems | ||
Fair Value | 727.4 | 380.1 |
CashAndCashEquivalentsMember | fixed maturity and mutual funds [Member] | ||
Schedule Of Available For Sale Securities LineItems | ||
Fair Value | 0 | 0 |
Short Term Investments Member | money market | ||
Schedule Of Available For Sale Securities LineItems | ||
Fair Value | 0 | 0 |
Short Term Investments Member | Certificates Of Deposit Member | ||
Schedule Of Available For Sale Securities LineItems | ||
Fair Value | 485.5 | 458.1 |
Short Term Investments Member | fixed maturity and mutual funds [Member] | ||
Schedule Of Available For Sale Securities LineItems | ||
Fair Value | 0 | 0 |
Other Assets [Member] | money market | ||
Schedule Of Available For Sale Securities LineItems | ||
Fair Value | 0 | 0 |
Other Assets [Member] | Certificates Of Deposit Member | ||
Schedule Of Available For Sale Securities LineItems | ||
Fair Value | 4.3 | 4.3 |
Other Assets [Member] | fixed maturity and mutual funds [Member] | ||
Schedule Of Available For Sale Securities LineItems | ||
Fair Value | $47.30 | $48 |
Recovered_Sheet3
Cash Equivalent and Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Schedule Of Investments [Line Items] | |||
Available For Sale Securities | $47.30 | 48 | |
Certificates Of Deposit Member | |||
Schedule Of Investments [Line Items] | |||
Available For Sale Securities | 1,217.20 | 842.5 | |
fixed maturity and mutual funds [Member] | |||
Schedule Of Investments [Line Items] | |||
Available For Sale Securities | 47.3 | 48 | |
Proceeds From Sale Of Available For Sale Securities | $0.80 | ||
Minimum [Member] | fixed maturity and mutual funds [Member] | |||
Schedule Of Investments [Line Items] | |||
Securities Maturity period | 1 month | 2 months | |
Minimum [Member] | Short Term Investments Member | |||
Schedule Of Investments [Line Items] | |||
Securities Maturity period | 1 month | 1 month | |
Maximum [Member] | Certificates Of Deposit Member | |||
Schedule Of Investments [Line Items] | |||
Securities Maturity period | 90 days | ||
Maximum [Member] | fixed maturity and mutual funds [Member] | |||
Schedule Of Investments [Line Items] | |||
Securities Maturity period | 20 months | 23 months | |
Maximum [Member] | Short Term Investments Member | |||
Schedule Of Investments [Line Items] | |||
Securities Maturity period | 8 months | 10 months |
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||
The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes. | ||||||||||
Derivatives and non-derivative instruments designated as accounting hedges: | ||||||||||
Interest Rate Swaps | ||||||||||
In the second quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on the 2010 Senior Notes to a floating interest rate based on the 3-month LIBOR. In the third quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on the remaining balance of the 2010 Senior Notes to a floating interest rate based on the 3-month LIBOR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the 2010 Senior Notes, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the 2010 Senior Notes. The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations. | ||||||||||
In the third quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on a portion of the 2014 Senior Notes (5-year) to a floating interest rate based on the 3-month LIBOR. In the first quarter of 2015, the Company entered into interest rate swaps with a total notional amount of $200 million to convert the fixed interest rate on the remaining balance of the 2014 Senior Notes (5-year) to a floating interest rate based on the 3-month LIBOR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the 2014 Senior Notes (5-year), thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the 2014 Senior Notes (5-year). The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations. | ||||||||||
The following table summarizes the net gain (loss) on the Company’s interest rate swaps designated as fair value hedges: | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
Derivatives designated as fair value accounting hedges | Location on Statement of Operations | 2015 | 2014 | |||||||
Interest rate swaps | Interest income(expense), net | $ | 3.5 | $ | -1.5 | |||||
Net investment hedges | ||||||||||
The Company entered into foreign currency forward contracts that are designated as net investment hedges and additionally has designated €400 million of the 2015 Senior Notes as a net investment hedge. These hedges are intended to mitigate FX exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against adverse changes in foreign exchange rates. These net investment hedges are designated as accounting hedges under the applicable sections of Topic 815 of the ASC. | ||||||||||
Hedge effectiveness is assessed based on the overall changes in the fair value of the hedge on a pre-tax basis. For hedges that meet the effectiveness requirements, any change in the fair value for the hedge is recorded in AOCI. Any change in the fair value of these hedges that is the result of ineffectiveness is recognized immediately in other non-operating (expense) income in the Company’s consolidated statement of operations. | ||||||||||
The following table summarizes the notional amounts of the Company’s outstanding net investment hedges: | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Notional amount of net investment hedges: | ||||||||||
Long-term debt designated as net investment hedge | € | 400 | € | - | ||||||
Contracts to sell euros for USD | € | - | € | 50 | ||||||
Contracts to sell Japanese yen for USD | ¥ | 19,400 | ¥ | 19,400 | ||||||
The outstanding contracts to sell Japanese yen for USD expire in November 2015. The hedge relating to the portion of the 2015 Senior Notes that was designated as a net investment hedge will terminate upon the repayment of the notes in 2027 unless terminated earlier at the discretion of the Company. | ||||||||||
The following table provides information on the gains/(losses) on the Company’s net investment hedges: | ||||||||||
Derivatives and non-derivative instruments in Net Investment Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | |||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2015 | 2014 | |||||||||
FX forwards | $ | 11.3 | $ | -2.1 | ||||||
Long-term debt | 7.6 | - | ||||||||
Total | $ | 18.9 | $ | -2.1 | ||||||
All gains and losses on derivatives designated as net investment hedges are recognized in AOCI. | ||||||||||
The cumulative amount of realized and unrecognized net investment hedge gains recorded in AOCI is as follows: | ||||||||||
Gains, net of tax | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
FX forwards on net investment hedges | $ | 32 | $ | 20.9 | ||||||
Long-term debt designated as net investment hedge | 7.8 | - | ||||||||
Total gains on net investment hedges | $ | 39.8 | $ | 20.9 | ||||||
Derivatives not designated as accounting hedges: | ||||||||||
Foreign exchange forwards | ||||||||||
The Company also enters into foreign exchange forwards to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than a subsidiary’s functional currency. These forward contracts are not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating (expense) income, net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through June 2015. | ||||||||||
The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Notional amount of currency pair: | ||||||||||
Contracts to purchase USD with euros | $ | 0.7 | $ | 38.5 | ||||||
Contracts to sell USD for euros | $ | 44.2 | $ | 51.5 | ||||||
Contracts to purchase USD with GBP | $ | - | $ | 0.2 | ||||||
Contracts to purchase USD with other foreign currencies | $ | - | $ | 1.2 | ||||||
Contracts to purchase euros with other foreign currencies | € | 35.4 | € | 34 | ||||||
Contracts to purchase euros with GBP | € | 28.3 | € | 25 | ||||||
Contracts to sell euros for GBP | € | 33 | € | 38.2 | ||||||
Cross-currency swaps | ||||||||||
In conjunction with the issuance of the 2015 Senior Notes, the Company entered into a cross-currency swap to exchange €100 million for U.S. dollars on the date of the settlement of the notes. The Company has not designated these cross-currency swaps as accounting hedges. Accordingly, changes in fair value on these swaps is recognized immediately in other non-operating (expense), income, net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the €100 million principal of the 2015 Senior Notes that was not designated as a net investment hedge. The purpose of this cross-currency swap is to mitigate FX risk on the remaining principal balance on the 2015 Senior Notes that was not designated as a net investment hedge as more fully discussed above. Under the terms of the swap, the Company will pay the counterparty interest on the $110.5 million received at 3.945% per annum and the counterparty will pay the Company interest on the €100 million paid at 1.75% per annum. These interest payments will be settled in March of each year, beginning in 2016, until the maturity of the 2015 Senior Notes in 2027. The principal payments on this cross currency swap will be settled in 2027, concurrent with the repayment of the 2015 Senior Notes. | ||||||||||
The following table summarizes the net gain (loss) on the Company’s derivatives which are not designated as hedging instruments: | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
Derivatives not designated as accounting hedges | Location on Statement of Operations | 2015 | 2014 | |||||||
Cross-currency swap | Other non-operating income (expense), net | $ | -5 | $ | - | |||||
Foreign exchange forwards | Other non-operating income (expense), net | -4.4 | -0.4 | |||||||
Total | $ | -9.4 | $ | -0.4 | ||||||
The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instruments as well as its nonderivative debt instruments designated and qualifying as net investment hedges: | ||||||||||
Derivative Instruments | ||||||||||
Balance Sheet Location | 31-Mar-15 | 31-Dec-14 | ||||||||
Assets: | ||||||||||
Derivatives designated as accounting hedges: | ||||||||||
FX forwards on net investment in certain foreign subsidiaries | Other current assets | $ | 17.1 | $ | 18.8 | |||||
Interest rate swaps | Other assets | 19.4 | 17.4 | |||||||
Total derivatives designated as accounting hedges | 36.5 | 36.2 | ||||||||
Derivatives not designated as accounting hedges: | ||||||||||
FX forwards on certain assets and liabilities | Other current assets | 1.3 | 5.6 | |||||||
Total assets | $ | 37.8 | $ | 41.8 | ||||||
Liabilities: | ||||||||||
Derivatives and non-derivative instruments designated as accounting hedges: | ||||||||||
Long-term debt designated as net investment hedge | Long-term debt | $ | 429.6 | $ | - | |||||
Derivatives not designated as accounting hedges: | ||||||||||
Cross-currency swap | Other non-current liabilities | 5 | - | |||||||
FX forwards on certain assets and liabilities | Accounts payable and accrued liabilities | 1.4 | 2.1 | |||||||
Total liabilities | $ | 436 | $ | 2.1 | ||||||
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Fair Value of Derivative Instruments | Derivative Instruments | |||||||||
Balance Sheet Location | 31-Mar-15 | 31-Dec-14 | ||||||||
Assets: | ||||||||||
Derivatives designated as accounting hedges: | ||||||||||
FX forwards on net investment in certain foreign subsidiaries | Other current assets | $ | 17.1 | $ | 18.8 | |||||
Interest rate swaps | Other assets | 19.4 | 17.4 | |||||||
Total derivatives designated as accounting hedges | 36.5 | 36.2 | ||||||||
Derivatives not designated as accounting hedges: | ||||||||||
FX forwards on certain assets and liabilities | Other current assets | 1.3 | 5.6 | |||||||
Total assets | $ | 37.8 | $ | 41.8 | ||||||
Liabilities: | ||||||||||
Derivatives and non-derivative instruments designated as accounting hedges: | ||||||||||
Long-term debt designated as net investment hedge | Long-term debt | $ | 429.6 | $ | - | |||||
Derivatives not designated as accounting hedges: | ||||||||||
Cross-currency swap | Other non-current liabilities | 5 | - | |||||||
FX forwards on certain assets and liabilities | Accounts payable and accrued liabilities | 1.4 | 2.1 | |||||||
Total liabilities | $ | 436 | $ | 2.1 | ||||||
Gains and Losses on Derivatives Designated as Hedging Instruments | Three Months Ended | |||||||||
March 31, | ||||||||||
Derivatives designated as fair value accounting hedges | Location on Statement of Operations | 2015 | 2014 | |||||||
Interest rate swaps | Interest income(expense), net | $ | 3.5 | $ | -1.5 | |||||
Net Investment Hedging [Member] | ||||||||||
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards | March 31, | December 31, | ||||||||
2015 | 2014 | |||||||||
Notional amount of net investment hedges: | ||||||||||
Long-term debt designated as net investment hedge | € | 400 | € | - | ||||||
Contracts to sell euros for USD | € | - | € | 50 | ||||||
Contracts to sell Japanese yen for USD | ¥ | 19,400 | ¥ | 19,400 | ||||||
Gains and Losses on Derivatives Designated as Hedging Instruments | Derivatives and non-derivative instruments in Net Investment Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | ||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2015 | 2014 | |||||||||
FX forwards | $ | 11.3 | $ | -2.1 | ||||||
Long-term debt | 7.6 | - | ||||||||
Total | $ | 18.9 | $ | -2.1 | ||||||
Cumulative Amount of Unrecognized Hedge Losses Recorded in Accumulated Other Comprehensive Income | Gains, net of tax | |||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
FX forwards on net investment hedges | $ | 32 | $ | 20.9 | ||||||
Long-term debt designated as net investment hedge | 7.8 | - | ||||||||
Total gains on net investment hedges | $ | 39.8 | $ | 20.9 | ||||||
Nondesignated [Member] | ||||||||||
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards | March 31, | December 31, | ||||||||
2015 | 2014 | |||||||||
Notional amount of currency pair: | ||||||||||
Contracts to purchase USD with euros | $ | 0.7 | $ | 38.5 | ||||||
Contracts to sell USD for euros | $ | 44.2 | $ | 51.5 | ||||||
Contracts to purchase USD with GBP | $ | - | $ | 0.2 | ||||||
Contracts to purchase USD with other foreign currencies | $ | - | $ | 1.2 | ||||||
Contracts to purchase euros with other foreign currencies | € | 35.4 | € | 34 | ||||||
Contracts to purchase euros with GBP | € | 28.3 | € | 25 | ||||||
Contracts to sell euros for GBP | € | 33 | € | 38.2 | ||||||
Gains and Losses on Derivatives Designated as Hedging Instruments | Three Months Ended | |||||||||
March 31, | ||||||||||
Derivatives not designated as accounting hedges | Location on Statement of Operations | 2015 | 2014 | |||||||
Cross-currency swap | Other non-operating income (expense), net | $ | -5 | $ | - | |||||
Foreign exchange forwards | Other non-operating income (expense), net | -4.4 | -0.4 | |||||||
Total | $ | -9.4 | $ | -0.4 |
Summary_of_Notional_Amounts_of
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards, Cash Flow Hedging (Detail) (Forward Contracts [Member]) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Foreign Currency Forward Contracts to Purchase US Dollars with Euros [Member] | Foreign Currency Forward Contracts to Purchase US Dollars with Euros [Member] | Foreign Currency Forward Contracts To Sell US Dollars For Euros [Member] | Foreign Currency Forward Contracts To Sell US Dollars For Euros [Member] | Foreign Currency Forward Contracts to Purchase US Dollars With GBP [Member] | Foreign Currency Forward Contracts to Purchase US Dollars With GBP [Member] | Foreign Currency Forward Contracts To Sell US Dollars for GBP [Member] | Foreign Currency Forward Contracts To Sell US Dollars for GBP [Member] | Foreign Currency Forward Contracts To Purchase US Dollars With Other Foreign Currencies [Member] | Foreign Currency Forward Contracts To Purchase US Dollars With Other Foreign Currencies [Member] | Foreign Currency Forward Contracts to Sell US Dollars for Other Foreign Currencies [Member] | Foreign Currency Forward Contracts to Sell US Dollars for Other Foreign Currencies [Member] | Foreign Currency Forward Contracts To Purchase Euros With Other Foreign Currencies [Member] | Foreign Currency Forward Contracts To Purchase Euros With Other Foreign Currencies [Member] | Foreign Currency Forward Contracts To Purchase Euros With GBP [Member] | Foreign Currency Forward Contracts To Purchase Euros With GBP [Member] | Foreign Currency Forward Contracts to Sell Euros for GBP [Member] | Foreign Currency Forward Contracts to Sell Euros for GBP [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | |
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | $700,000 | $38,500,000 | $44,200,000 | $51,500,000 | $0 | $200,000 | $0 | $0 | $0 | $1,200,000 | $0 | $0 | € 35,400,000 | € 34,000,000 | € 28,300,000 | € 25,000,000 | € 33,000,000 | € 38,200,000 |
Summary_of_Notional_Amounts_of1
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards, Net Investment Hedging (Detail) (Net Investment Hedging [Member]) | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 |
Two thousand fifteen senior notes [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | |
EUR (€) | Foreign Currency Forward Contracts To Sell Euros for U S Dollars [Member] | Foreign Currency Forward Contracts To Sell Euros for U S Dollars [Member] | Foreign Currency Forward Contracts To Sell Japanese Yen For US Dollars [Member] | Foreign Currency Forward Contracts To Sell Japanese Yen For US Dollars [Member] | Two thousand fifteen senior notes [Member] | |
EUR (€) | EUR (€) | JPY (¥) | JPY (¥) | USD ($) | ||
Derivative [Line Items] | ||||||
Derivative Notional Amount | € 400,000,000 | € 0 | € 50,000,000 | ¥ 19,400,000,000 | ¥ 19,400,000,000 | $0 |
Fair_Value_of_Derivative_Instr
Fair Value of Derivative Instruments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives Fair Value [Line Items] | ||
Derivatives assets | $37.80 | $41.80 |
Derivatives liabilities | 436 | 2.1 |
Designated As Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives assets | 36.5 | 36.2 |
Designated As Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives assets | 19.4 | 17.4 |
Designated As Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | Other Current Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives assets | 17.1 | 18.8 |
Designated As Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | Accounts Payable And Accrued Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives liabilities | 0 | 0 |
Designated As Hedging Instrument [Member] | Two thousand fifteen senior notes [Member] | long-term debt | ||
Derivatives Fair Value [Line Items] | ||
Derivatives liabilities | 429.6 | 0 |
Nondesignated [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives assets | 1.3 | 5.6 |
Nondesignated [Member] | Foreign Exchange Contract [Member] | Accounts Payable And Accrued Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives liabilities | 1.4 | 2.1 |
Nondesignated [Member] | cross-currency swap | Other Noncurrent Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivatives liabilities | $5 | $0 |
Summary_of_Net_Gain_Loss_on_Fo
Summary of Net Gain (Loss) on Foreign Exchange Forwards Not Designated as Hedging Instruments and on Interest Rate Swaps Designated as Fair Value Hedge (Detail) (Nondesignated [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | ($9.40) | ($0.40) |
Foreign Exchange Forward [Member] | Other Nonoperating Income Expense 1[Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | -4.4 | -0.4 |
cross-currency swap | Other Nonoperating Income Expense 1[Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | ($5) | $0 |
Gains_and_Losses_on_Derivative
Gains and Losses on Derivatives Designated as Hedging Instruments, Net Investment Hedging (Detail) (Net Investment Hedging [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | $18.90 | ($2.10) |
Foreign Exchange Contract [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | 11.3 | -2.1 |
long-term debt | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | $7.60 | $0 |
Cumulative_Amount_of_Unrecogni
Cumulative Amount of Unrecognized Hedge Losses Recorded in Accumulated Other Comprehensive Income (Detail) (Net Investment Hedging [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Hedge Underlying Gain Loss [Line Items] | ||
Cumulative amount of unrecognized hedge losses recorded in AOCI | $39.80 | $20.90 |
Foreign Exchange Contract [Member] | ||
Hedge Underlying Gain Loss [Line Items] | ||
Cumulative amount of unrecognized hedge losses recorded in AOCI | 32 | 20.9 |
Two thousand fifteen senior notes [Member] | ||
Hedge Underlying Gain Loss [Line Items] | ||
Cumulative amount of unrecognized hedge losses recorded in AOCI | $7.80 | $0 |
Recovered_Sheet4
Derivative Instruments And Hedging Activities - Additional Information (Detail) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 |
USD ($) | USD ($) | USD ($) | USD ($) | Twenty Ten Senior Notes [Member] | Twenty Ten Senior Notes [Member] | Two Thousand Fourteen Senior Notes Five Year [Member] | Two Thousand Fourteen Senior Notes Five Year [Member] | cross-currency swap | cross-currency swap | Two thousand fifteen senior notes [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | currency paid | currency received [Member] | EUR (€) | |||||
EUR (€) | USD ($) | ||||||||||
Derivative [Line Items] | |||||||||||
Derivative Notional Amount | $250,000,000 | $250,000,000 | $200,000,000 | $250,000,000 | € 100,000,000 | $110,500,000 | € 400,000,000 | ||||
Accumulated Other Comprehensive Income Loss Net Of Tax | ($322,400,000) | ($235,200,000) | ($61,300,000) | ($54,600,000) | |||||||
Derivative Fixed Interest Rate | 175.00% | 394.50% |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Text Block [Abstract] | ||||||||
ACQUISITIONS | NOTE 6. ACQUISITIONS | |||||||
The business combinations described below are accounted for using the acquisition method of accounting whereby assets acquired and liabilities assumed were recognized at fair value on the date of the transaction. Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded to goodwill. The Company has not presented proforma combined results because the impact on previously reported statements of operations would not have been material. These acquisitions are discussed below in more detail. | ||||||||
Lewtan Technologies | ||||||||
On October 27, 2014, a subsidiary of the Company acquired 100% of Lewtan Technologies, a leading provider of analytical tools and data for the global structured finance market. The acquisition of Lewtan will bolster MA’s Structured Analytics and Valuations (SAV) business within its RD&A LOB, which provides an extensive data and analytics library for securitized assets. The aggregate purchase price and the near term impact to the Company’s operations and cash flows is not material. Lewtan operates in the RD&A LOB of MA and goodwill related to this acquisition was allocated to the RD&A reporting unit. | ||||||||
WebEquity Solutions, LLC | ||||||||
On July 17, 2014, a subsidiary of the Company acquired 100% of WebEquity Solutions, LLC, a leading provider of cloud-based loan origination solutions for financial institutions. The cash payment of $130.5 million was funded with cash. This acquisition will enhance MA’s risk management product portfolio. | ||||||||
Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of the acquisition: | ||||||||
Current assets | $ | 3 | ||||||
Property and equipment, net | 2.3 | |||||||
Intangible assets: | ||||||||
Client relationships (18 year weighted average life) | $ | 42.8 | ||||||
Software (15 year weighted average life) | 11.5 | |||||||
Trade name (4 year weighted average life) | 0.5 | |||||||
Total intangible assets (17 year weighted average life) | 54.8 | |||||||
Goodwill | 77.6 | |||||||
Liabilities assumed | -7.2 | |||||||
Net assets acquired | $ | 130.5 | ||||||
The acquired goodwill, which has been assigned to the MA segment, is tax deductible. | ||||||||
As of the date of the acquisition, WebEquity is part of the ERS reporting unit. | ||||||||
ICRA Limited | ||||||||
On June 26, 2014, a subsidiary of the Company acquired 2,154,722 additional shares of ICRA Limited, a publicly traded company in India, pursuant to a conditional open tender offer which was initiated in February 2014. ICRA is a leading provider of credit ratings and research in India and will extend MIS’s reach in the growing domestic debt market in India as well as other emerging markets in the region. The acquisition of the additional shares increased Moody’s ownership stake in ICRA from 28.5% to 50.06%, resulting in a controlling interest in ICRA. Accordingly, the Company consolidated ICRA’s financial statements. Moody’s consolidates ICRA’s financial statements on a three month lag. | ||||||||
Prior to the acquisition of the additional shares, Moody’s accounted for its investment in ICRA on an equity basis whereby the Company recorded its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net. The acquisition of the additional shares has resulted in the Company consolidating ICRA into its financial statements. As a result of this consolidation and in accordance with ASC 805, the carrying value of the Company’s equity investment in ICRA was remeasured to fair value as of the acquisition date resulting in a pre-tax gain of $102.8 million ($78.5 million after-tax) in second quarter of 2014. The fair value of the Company’s equity investment was based on ICRA’s quoted market price on the date of acquisition. | ||||||||
The table below details the total consideration relating to the ICRA step-acquisition: | ||||||||
Cash paid | $ | 86 | ||||||
Fair value of equity interest in ICRA prior to obtaining a controlling interest | 124.9 | |||||||
Total consideration | $ | 210.9 | ||||||
Current assets | $ | 25.4 | ||||||
Property and equipment, net | 15.1 | |||||||
Intangible assets: | ||||||||
Trade name (36 year weighted average life) | $ | 46.8 | ||||||
Client relationships (19 year weighted average life) | 33.8 | |||||||
Other (17 year weighted average life)* | 18.3 | |||||||
Total intangible assets (26 year weighted average life) | 98.9 | |||||||
Goodwill | 296.7 | |||||||
Other assets | 56.3 | |||||||
Liabilities | -62.7 | |||||||
Fair value of non-controlling interest assumed | -218.8 | |||||||
Net assets acquired | $ | 210.9 | ||||||
* Primarily consists of acquired technical know-how and ratings methodologies | ||||||||
Current assets in the table above include acquired cash of approximately $5 million. Additionally, current assets includes gross accounts receivable of approximately $14 million, of which an immaterial amount is not expected to be collectible. Goodwill, which has been assigned to the MIS segment, is not deductible for tax. | ||||||||
The fair value of the non-controlling interest was determined based on the quoted market price per share of ICRA on the date that the Company acquired the controlling stake. | ||||||||
ICRA operates as its own reporting unit for purposes of the Company’s annual goodwill impairment assessment. | ||||||||
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
ICRA [Member] | ||||||||
Summary of Fair Values of Assets Acquired and Liabilities Assumed | ||||||||
Cash paid | $ | 86 | ||||||
Fair value of equity interest in ICRA prior to obtaining a controlling interest | 124.9 | |||||||
Total consideration | $ | 210.9 | ||||||
Total Consideration Transferred to Sellers | Current assets | $ | 25.4 | |||||
Property and equipment, net | 15.1 | |||||||
Intangible assets: | ||||||||
Trade name (36 year weighted average life) | $ | 46.8 | ||||||
Client relationships (19 year weighted average life) | 33.8 | |||||||
Other (17 year weighted average life)* | 18.3 | |||||||
Total intangible assets (26 year weighted average life) | 98.9 | |||||||
Goodwill | 296.7 | |||||||
Other assets | 56.3 | |||||||
Liabilities | -62.7 | |||||||
Fair value of non-controlling interest assumed | -218.8 | |||||||
Net assets acquired | $ | 210.9 | ||||||
* Primarily consists of acquired technical know-how and ratings methodologies | ||||||||
Web Equity Solutions [Member] | ||||||||
Total Consideration Transferred to Sellers | Current assets | $ | 3 | |||||
Property and equipment, net | 2.3 | |||||||
Intangible assets: | ||||||||
Client relationships (18 year weighted average life) | $ | 42.8 | ||||||
Software (15 year weighted average life) | 11.5 | |||||||
Trade name (4 year weighted average life) | 0.5 | |||||||
Total intangible assets (17 year weighted average life) | 54.8 | |||||||
Goodwill | 77.6 | |||||||
Liabilities assumed | -7.2 | |||||||
Net assets acquired | $ | 130.5 |
Purchase_Price_Allocation_Deta
Purchase Price Allocation (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 26, 2014 | Jul. 17, 2014 |
In Millions, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $988 | $1,021.10 | ||
ICRA | ||||
Business Acquisition [Line Items] | ||||
Current assets | 25.4 | |||
Property and equipment, net | 15.1 | |||
Total intangible assets | 98.9 | |||
Goodwill | 296.7 | |||
Other assets | 56.3 | |||
Liabilities assumed | -62.7 | |||
Net assets acquired | 210.9 | |||
Fair value of non-controlling interest assumed | 218.8 | |||
ICRA | Trade names | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets | 46.8 | |||
ICRA | Client relationships | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets | 33.8 | |||
ICRA | Other intangibles | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets | 18.3 | |||
Web Equity Solutions [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | 3 | |||
Property and equipment, net | 2.3 | |||
Total intangible assets | 54.8 | |||
Goodwill | 77.6 | |||
Liabilities assumed | -7.2 | |||
Net assets acquired | 130.5 | |||
Web Equity Solutions [Member] | Client relationships | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets | 42.8 | |||
Web Equity Solutions [Member] | Software | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets | 11.5 | |||
Web Equity Solutions [Member] | Other intangibles | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets | $0.50 |
Purchase_Price_Allocation_Pare
Purchase Price Allocation (Parenthetical) (Detail) | 0 Months Ended | |
Jun. 26, 2014 | Jul. 17, 2014 | |
ICRA | Trade names | ||
Business Acquisition [Line Items] | ||
Weighted average life of intangible assets acquired (in years) | 36 years | |
ICRA | Client relationships | ||
Business Acquisition [Line Items] | ||
Weighted average life of intangible assets acquired (in years) | 19 years | |
ICRA | Other intangibles | ||
Business Acquisition [Line Items] | ||
Weighted average life of intangible assets acquired (in years) | 17 years | |
ICRA | Total Intangible Assets | ||
Business Acquisition [Line Items] | ||
Weighted average life of intangible assets acquired (in years) | 26 years | |
Web Equity Solutions [Member] | Trade names | ||
Business Acquisition [Line Items] | ||
Weighted average life of intangible assets acquired (in years) | 4 years | |
Web Equity Solutions [Member] | Client relationships | ||
Business Acquisition [Line Items] | ||
Weighted average life of intangible assets acquired (in years) | 18 years | |
Web Equity Solutions [Member] | Software | ||
Business Acquisition [Line Items] | ||
Weighted average life of intangible assets acquired (in years) | 15 years | |
Web Equity Solutions [Member] | Total Intangible Assets | ||
Business Acquisition [Line Items] | ||
Weighted average life of intangible assets acquired (in years) | 17 years |
Total_Consideration_Transferre
Total Consideration Transferred to Sellers (Detail) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Jun. 26, 2014 | Jul. 17, 2014 |
ICRA | ||
Business Acquisition [Line Items] | ||
Cash paid | $86 | |
Total fair value of consideration transferred | 210.9 | |
Business Combination Fair Value Of Equity Interest | 124.9 | |
Web Equity Solutions [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid | $130.50 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 26, 2014 | Jul. 17, 2014 | Oct. 27, 2014 |
ICRA | |||
Business Acquisition [Line Items] | |||
Acquired cash | $5 | ||
Acquired receivables gross contractual amount | 14 | ||
Additional Offer Shares Acquired of ICRA Limited | 2,154,722 | ||
ICRA Gain | 102.8 | ||
Ownership stake | 5006.00% | ||
Business Acquisition Cost Of Acquired Entity Cash Paid | 86 | ||
Web Equity Solutions [Member] | |||
Business Acquisition [Line Items] | |||
Additional direct equity investment | 10000.00% | ||
Business Acquisition Cost Of Acquired Entity Cash Paid | 130.5 | ||
lewtan [Member] | |||
Business Acquisition [Line Items] | |||
Additional direct equity investment | 10000.00% | ||
After Tax Member [Member] | ICRA | |||
Business Acquisition [Line Items] | |||
ICRA Gain | $78.50 |
GOODWILL_AND_OTHER_ACQUIRED_IN
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | NOTE 8. GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | |||||||||||||||||||||||||||
The following table summarizes the activity in goodwill for the periods indicated: | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||
MIS | MA | Consolidated | ||||||||||||||||||||||||||
Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | ||||||||||||||||||||
Balance at beginning of year | $ | 298.7 | $ | - | $ | 298.7 | $ | 734.6 | $ | -12.2 | $ | 722.4 | $ | 1,033.30 | $ | -12.2 | $ | 1,021.10 | ||||||||||
Foreign currency translation adjustments | -7 | - | -7 | -26.1 | - | -26.1 | -33.1 | - | -33.1 | |||||||||||||||||||
Ending balance | $ | 291.7 | $ | - | $ | 291.7 | $ | 708.5 | $ | -12.2 | $ | 696.3 | $ | 1,000.20 | $ | -12.2 | $ | 988 | ||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||||||
MIS | MA | Consolidated | ||||||||||||||||||||||||||
Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | ||||||||||||||||||||
Balance at beginning of year | $ | 11.4 | $ | - | $ | 11.4 | $ | 666 | $ | -12.2 | $ | 653.8 | $ | 677.4 | $ | -12.2 | $ | 665.2 | ||||||||||
Additions/adjustments | 296.7 | - | 296.7 | 101.1 | - | 101.1 | 397.8 | - | 397.8 | |||||||||||||||||||
Foreign currency translation adjustments | -9.4 | - | -9.4 | -32.5 | - | -32.5 | -41.9 | - | -41.9 | |||||||||||||||||||
Ending balance | $ | 298.7 | $ | - | $ | 298.7 | $ | 734.6 | $ | -12.2 | $ | 722.4 | $ | 1,033.30 | $ | -12.2 | $ | 1,021.10 | ||||||||||
The 2014 additions/adjustments for the MIS segment in the table above relate to the ICRA Acquisition in the second quarter of 2014 as further discussed in Note 6. The 2014 additions/adjustments for the MA segment in the table above relate to the acquisition of WebEquity in the third quarter of 2014 and Lewtan in the fourth quarter of 2014 as well as adjustments for Amba which was acquired in the fourth quarter of 2013. There were no impairments to goodwill in the three months ended March 31, 2015 and the year ended December 31, 2014. | ||||||||||||||||||||||||||||
Acquired intangible assets and related amortization consisted of: | ||||||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Customer relationships | $ | 303.7 | $ | 310.4 | ||||||||||||||||||||||||
Accumulated amortization | -100.7 | -98.1 | ||||||||||||||||||||||||||
Net customer relationships | 203 | 212.3 | ||||||||||||||||||||||||||
Trade secrets | 30.2 | 30.6 | ||||||||||||||||||||||||||
Accumulated amortization | -21.4 | -20.9 | ||||||||||||||||||||||||||
Net trade secrets | 8.8 | 9.7 | ||||||||||||||||||||||||||
Software | 75.3 | 79.8 | ||||||||||||||||||||||||||
Accumulated amortization | -42.2 | -43 | ||||||||||||||||||||||||||
Net software | 33.1 | 36.8 | ||||||||||||||||||||||||||
Trade names | 74.6 | 76.5 | ||||||||||||||||||||||||||
Accumulated amortization | -14 | -13.3 | ||||||||||||||||||||||||||
Net trade names | 60.6 | 63.2 | ||||||||||||||||||||||||||
Other | 44.2 | 44.8 | ||||||||||||||||||||||||||
Accumulated amortization | -21.7 | -21.3 | ||||||||||||||||||||||||||
Net other | 22.5 | 23.5 | ||||||||||||||||||||||||||
Total acquired intangible assets, net | $ | 328 | $ | 345.5 | ||||||||||||||||||||||||
Other intangible assets primarily consist of databases, covenants not to compete, and acquired ratings methodologies and models. | ||||||||||||||||||||||||||||
Amortization expense relating to acquired intangible assets is as follows: | ||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Amortization expense | $ | 8.5 | $ | 7.3 | ||||||||||||||||||||||||
Estimated future amortization expense for acquired intangible assets subject to amortization is as follows: | ||||||||||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||||||||||
2015 (After March 31) | $ | 24.1 | ||||||||||||||||||||||||||
2016 | 30.8 | |||||||||||||||||||||||||||
2017 | 27.6 | |||||||||||||||||||||||||||
2018 | 21.9 | |||||||||||||||||||||||||||
2019 | 19.3 | |||||||||||||||||||||||||||
Thereafter | 204.3 | |||||||||||||||||||||||||||
Amortizable intangible assets are reviewed for recoverability whenever events or changes in 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. There were no impairments to intangible assets during the three months ended March 31, 2015 and 2014. |
GOODWILL_AND_OTHER_ACQUIRED_IN1
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Activity in Goodwill | Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
MIS | MA | Consolidated | ||||||||||||||||||||||||||
Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | ||||||||||||||||||||
Balance at beginning of year | $ | 298.7 | $ | - | $ | 298.7 | $ | 734.6 | $ | -12.2 | $ | 722.4 | $ | 1,033.30 | $ | -12.2 | $ | 1,021.10 | ||||||||||
Foreign currency translation adjustments | -7 | - | -7 | -26.1 | - | -26.1 | -33.1 | - | -33.1 | |||||||||||||||||||
Ending balance | $ | 291.7 | $ | - | $ | 291.7 | $ | 708.5 | $ | -12.2 | $ | 696.3 | $ | 1,000.20 | $ | -12.2 | $ | 988 | ||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||||||
MIS | MA | Consolidated | ||||||||||||||||||||||||||
Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | ||||||||||||||||||||
Balance at beginning of year | $ | 11.4 | $ | - | $ | 11.4 | $ | 666 | $ | -12.2 | $ | 653.8 | $ | 677.4 | $ | -12.2 | $ | 665.2 | ||||||||||
Additions/adjustments | 296.7 | - | 296.7 | 101.1 | - | 101.1 | 397.8 | - | 397.8 | |||||||||||||||||||
Foreign currency translation adjustments | -9.4 | - | -9.4 | -32.5 | - | -32.5 | -41.9 | - | -41.9 | |||||||||||||||||||
Ending balance | $ | 298.7 | $ | - | $ | 298.7 | $ | 734.6 | $ | -12.2 | $ | 722.4 | $ | 1,033.30 | $ | -12.2 | $ | 1,021.10 | ||||||||||
Acquired Intangible Assets and Related Amortization | March 31, | December 31, | ||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Customer relationships | $ | 303.7 | $ | 310.4 | ||||||||||||||||||||||||
Accumulated amortization | -100.7 | -98.1 | ||||||||||||||||||||||||||
Net customer relationships | 203 | 212.3 | ||||||||||||||||||||||||||
Trade secrets | 30.2 | 30.6 | ||||||||||||||||||||||||||
Accumulated amortization | -21.4 | -20.9 | ||||||||||||||||||||||||||
Net trade secrets | 8.8 | 9.7 | ||||||||||||||||||||||||||
Software | 75.3 | 79.8 | ||||||||||||||||||||||||||
Accumulated amortization | -42.2 | -43 | ||||||||||||||||||||||||||
Net software | 33.1 | 36.8 | ||||||||||||||||||||||||||
Trade names | 74.6 | 76.5 | ||||||||||||||||||||||||||
Accumulated amortization | -14 | -13.3 | ||||||||||||||||||||||||||
Net trade names | 60.6 | 63.2 | ||||||||||||||||||||||||||
Other | 44.2 | 44.8 | ||||||||||||||||||||||||||
Accumulated amortization | -21.7 | -21.3 | ||||||||||||||||||||||||||
Net other | 22.5 | 23.5 | ||||||||||||||||||||||||||
Total acquired intangible assets, net | $ | 328 | $ | 345.5 | ||||||||||||||||||||||||
Amortization Expense Relating to Acquired Intangible Assets | Three Months Ended | |||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Amortization expense | $ | 8.5 | $ | 7.3 | ||||||||||||||||||||||||
Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization | Year Ending December 31, | |||||||||||||||||||||||||||
2015 (After March 31) | $ | 24.1 | ||||||||||||||||||||||||||
2016 | 30.8 | |||||||||||||||||||||||||||
2017 | 27.6 | |||||||||||||||||||||||||||
2018 | 21.9 | |||||||||||||||||||||||||||
2019 | 19.3 | |||||||||||||||||||||||||||
Thereafter | 204.3 |
Activity_in_Goodwill_Detail
Activity in Goodwill (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Ending balance | $988 | $1,021.10 |
Gross Goodwill [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 1,033.30 | 677.4 |
Additions/adjustments | 0 | 397.8 |
FX translation | -33.1 | -41.9 |
Ending balance | 1,000.20 | 1,033.30 |
Accumulated Impairment Charge [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | -12.2 | -12.2 |
Additions/adjustments | 0 | 0 |
FX translation | ||
Ending balance | -12.2 | -12.2 |
Net Goodwill [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 1,021.10 | 665.2 |
Additions/adjustments | 0 | 397.8 |
FX translation | -33.1 | -41.9 |
Ending balance | 988 | 1,021.10 |
Moodys Investors Service [Member] | Gross Goodwill [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 298.7 | 11.4 |
Additions/adjustments | 0 | 296.7 |
FX translation | -7 | -9.4 |
Ending balance | 291.7 | 298.7 |
Moodys Investors Service [Member] | Accumulated Impairment Charge [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | ||
Additions/adjustments | 0 | 0 |
FX translation | ||
Ending balance | 0 | |
Moodys Investors Service [Member] | Net Goodwill [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 298.7 | 11.4 |
Additions/adjustments | 0 | 296.7 |
FX translation | -7 | -9.4 |
Ending balance | 291.7 | 298.7 |
Moodys Analytics [Member] | Gross Goodwill [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 734.6 | 666 |
Additions/adjustments | 0 | 101.1 |
FX translation | -26.1 | -32.5 |
Ending balance | 708.5 | 734.6 |
Moodys Analytics [Member] | Accumulated Impairment Charge [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | -12.2 | -12.2 |
Additions/adjustments | 0 | 0 |
FX translation | ||
Ending balance | -12.2 | -12.2 |
Moodys Analytics [Member] | Net Goodwill [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 722.4 | 653.8 |
Additions/adjustments | 0 | 101.1 |
FX translation | -26.1 | -32.5 |
Ending balance | $696.30 | $722.40 |
Acquired_Intangible_Assets_and
Acquired Intangible Assets and Related Amortization (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, net | $328 | $345.50 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 303.7 | 310.4 |
Accumulated amortization | -100.7 | -98.1 |
Acquired intangible assets, net | 203 | 212.3 |
Trade Secrets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 30.2 | 30.6 |
Accumulated amortization | -21.4 | -20.9 |
Acquired intangible assets, net | 8.8 | 9.7 |
Computer Software Intangible Asset [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 75.3 | 79.8 |
Accumulated amortization | -42.2 | -43 |
Acquired intangible assets, net | 33.1 | 36.8 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 74.6 | 76.5 |
Accumulated amortization | -14 | -13.3 |
Acquired intangible assets, net | 60.6 | 63.2 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 44.2 | 44.8 |
Accumulated amortization | -21.7 | -21.3 |
Acquired intangible assets, net | $22.50 | $23.50 |
Amortization_Expense_Relating_
Amortization Expense Relating to Acquired Intangible Assets (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $8.50 | $7.30 |
Estimated_Future_Amortization_
Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization (Detail) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Schedule Of Actual And Estimated Amortization Expense [Line Items] | |
2015 (after March 31,) | $24.10 |
2016 | 30.8 |
2017 | 27.6 |
2018 | 21.9 |
2019 | 19.3 |
Thereafter | $204.30 |
FAIR_VALUE
FAIR VALUE | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
FAIR VALUE | NOTE 9. FAIR VALUE | ||||||||||||||
The table below presents information about items which are carried at fair value at March 31, 2015 and December 31, 2014: | |||||||||||||||
Fair Value Measurement as of March 31, 2015 | |||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | |||||||||||||||
Derivatives (a) | $ | 37.8 | $ | - | $ | 37.8 | $ | - | |||||||
Money market mutual funds | 100.5 | 100.5 | - | - | |||||||||||
Fixed maturity and open ended mutual funds (b) | 47.3 | 47.3 | - | - | |||||||||||
Total | $ | 185.6 | $ | 147.8 | $ | 37.8 | $ | - | |||||||
Liabilities: | |||||||||||||||
Derivatives (a) | $ | 6.4 | $ | - | $ | 6.4 | $ | - | |||||||
Contingent consideration arising from acquisitions (c) | 2 | - | - | 2 | |||||||||||
Total | $ | 8.4 | $ | - | $ | 6.4 | $ | 2 | |||||||
Fair Value Measurement as of December 31, 2014 | |||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | |||||||||||||||
Derivatives (a) | $ | 41.8 | $ | - | $ | 41.8 | $ | - | |||||||
Money market mutual funds | 149.7 | 149.7 | - | - | |||||||||||
Fixed maturity and open ended mutual funds (b) | 48 | 48 | - | - | |||||||||||
Total | $ | 239.5 | $ | 197.7 | $ | 41.8 | $ | - | |||||||
Liabilities: | |||||||||||||||
Derivatives (a) | $ | 2.1 | $ | - | $ | 2.1 | $ | - | |||||||
Contingent consideration arising from acquisitions (c) | 2.1 | - | - | 2.1 | |||||||||||
Total | $ | 4.2 | $ | - | $ | 2.1 | $ | 2.1 | |||||||
(a) Represents interest rate swaps, FX forwards on certain assets and liabilities as well as cross-currency swaps as more fully described in Note 7 to the financial statements. | |||||||||||||||
(b) Represents investments in fixed maturity mutual funds and open ended mutual funds. The remaining contractual maturities for the fixed maturity instruments range from one month to 20 months and two months to 23 months for three months ended March 31, 2015 and year ended December 31, 2014, respectively. | |||||||||||||||
(c) Represents contingent consideration liabilities pursuant to the agreements for certain acquisitions. | |||||||||||||||
The following table summarizes the changes in the fair value of the Company’s Level 3 liabilities: | |||||||||||||||
Contingent Consideration | |||||||||||||||
Three Months Ended | |||||||||||||||
March 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||
Balance as of January 1 | $ | 2.1 | $ | 17.5 | |||||||||||
Total losses (realized and unrealized): | |||||||||||||||
Included in earnings | - | -0.2 | |||||||||||||
Foreign currency translation adjustments | -0.1 | -0.1 | |||||||||||||
Balance as of March 31 | $ | 2 | $ | 17.2 | |||||||||||
The losses included in earnings in the table above are recorded within SG&A expenses in the Company’s consolidated statements of operations and relate to contingent consideration obligations outstanding at March 31, 2015. | |||||||||||||||
The $2.0 million of contingent consideration is classified in accounts payable and accrued liabilities within the Company’s consolidated balance sheet. | |||||||||||||||
The following are descriptions of the methodologies utilized by the Company to estimate the fair value of its derivative contracts, fixed maturity plans and contingent consideration obligations: | |||||||||||||||
Derivatives: | |||||||||||||||
In determining the fair value of the derivative contracts, the Company utilizes industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using spot rates, forward points, currency volatilities, interest rates as well as the risk of non-performance of the Company and the counterparties with whom it has derivative contracts. The Company established strict counterparty credit guidelines and only enters into transactions with financial institutions that adhere to these guidelines. Accordingly, the risk of counterparty default is deemed to be minimal. | |||||||||||||||
Fixed maturity and open ended mutual funds: | |||||||||||||||
The fixed maturity mutual funds and open ended mutual funds primarily represent exchange traded funds in India and are classified as securities available-for-sale. Accordingly, any unrealized gains and losses are recognized through OCI until the instruments mature or are sold. | |||||||||||||||
Money market mutual funds: | |||||||||||||||
The money market mutual funds represent publicly traded funds with a stable $1 net asset value. | |||||||||||||||
Contingent consideration: | |||||||||||||||
At March 31, 2015, the Company has a contingent consideration obligation related to the acquisition of CSI which is carried at estimated fair value, and is based on certain non-financial metrics set forth in the acquisition agreement. At March 31, 2014, the Company also had contingent consideration obligations related to the acquisitions of Copal and Amba. These obligations are measured using Level 3 inputs as defined in the ASC. The Company records the obligations for these contingent consideration arrangements on the date of each respective acquisition based on management’s best estimates of the achievement of the metrics and the value of the obligations are adjusted quarterly. | |||||||||||||||
The contingent consideration obligation for CSI is based on the achievement of a certain contractual milestone by January 2016. The Company utilizes a discounted cash flow methodology to value this obligation. The future expected cash flow for this obligation is discounted using an interest rate available to borrowers with similar credit risk profiles to that of the Company. The most significant unobservable input involved in the measurement of this obligation is the probability that the milestone will be reached by January 2016. At March 31, 2015, the Company expects that this milestone will be reached by the aforementioned date. | |||||||||||||||
For certain of the contingent consideration obligations relating to the acquisition of Copal, a portion of the contingent cash payments were based on revenue and EBITDA growth for certain of the Copal entities. This growth was calculated by comparing revenue and EBITDA in the year immediately prior to the exercise of the put/call option to acquire the remaining 33% ownership interest of Copal Partners Limited, to revenue and EBITDA in Copal’s fiscal year ended March 31, 2011. Payments of $12.2 million under this arrangement were made in the fourth quarter of 2014 pursuant to the Company exercising its call option to acquire the remaining shares of Copal Amba. The Company had utilized discounted cash flow methodologies to value these obligations prior to their settlement in 2014. The expected future cash flows for these obligations were discounted using a risk-free interest rate plus a credit spread based on the option adjusted spread of the Company’s publicly traded debt as of the valuation date plus sovereign and size risk premiums. The most significant unobservable input involved in the measurement of these obligations were the projected future financial results of the applicable Copal Amba entities. | |||||||||||||||
For the contingent consideration obligations relating to the acquisition of Amba, the payment was based on the acquired entity achieving a revenue target for its fiscal year ended March 31, 2014 which was met resulting in a $4.3 million payment in the third quarter of 2014. | |||||||||||||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Financial Instruments Carried at Fair Value on Recurring Basis | Fair Value Measurement as of March 31, 2015 | ||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | |||||||||||||||
Derivatives (a) | $ | 37.8 | $ | - | $ | 37.8 | $ | - | |||||||
Money market mutual funds | 100.5 | 100.5 | - | - | |||||||||||
Fixed maturity and open ended mutual funds (b) | 47.3 | 47.3 | - | - | |||||||||||
Total | $ | 185.6 | $ | 147.8 | $ | 37.8 | $ | - | |||||||
Liabilities: | |||||||||||||||
Derivatives (a) | $ | 6.4 | $ | - | $ | 6.4 | $ | - | |||||||
Contingent consideration arising from acquisitions (c) | 2 | - | - | 2 | |||||||||||
Total | $ | 8.4 | $ | - | $ | 6.4 | $ | 2 | |||||||
Fair Value Measurement as of December 31, 2014 | |||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | |||||||||||||||
Derivatives (a) | $ | 41.8 | $ | - | $ | 41.8 | $ | - | |||||||
Money market mutual funds | 149.7 | 149.7 | - | - | |||||||||||
Fixed maturity and open ended mutual funds (b) | 48 | 48 | - | - | |||||||||||
Total | $ | 239.5 | $ | 197.7 | $ | 41.8 | $ | - | |||||||
Liabilities: | |||||||||||||||
Derivatives (a) | $ | 2.1 | $ | - | $ | 2.1 | $ | - | |||||||
Contingent consideration arising from acquisitions (c) | 2.1 | - | - | 2.1 | |||||||||||
Total | $ | 4.2 | $ | - | $ | 2.1 | $ | 2.1 | |||||||
(a) Represents interest rate swaps, FX forwards on certain assets and liabilities as well as cross-currency swaps as more fully described in Note 7 to the financial statements. | |||||||||||||||
(b) Represents investments in fixed maturity mutual funds and open ended mutual funds. The remaining contractual maturities for the fixed maturity instruments range from one month to 20 months and two months to 23 months for three months ended March 31, 2015 and year ended December 31, 2014, respectively. | |||||||||||||||
(c) Represents contingent consideration liabilities pursuant to the agreements for certain acquisitions. | |||||||||||||||
Changes in Fair Value of Level Three Liabilities | Contingent Consideration | ||||||||||||||
Three Months Ended | |||||||||||||||
March 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||
Balance as of January 1 | $ | 2.1 | $ | 17.5 | |||||||||||
Total losses (realized and unrealized): | |||||||||||||||
Included in earnings | - | -0.2 | |||||||||||||
Foreign currency translation adjustments | -0.1 | -0.1 | |||||||||||||
Balance as of March 31 | $ | 2 | $ | 17.2 |
Financial_Instruments_Carried_
Financial Instruments Carried at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative Contracts | $37,800,000 | $41,800,000 |
Fixed Maturity Mutual Funds and Open Ended Mutual Funds | 47,300,000 | 48,000,000 |
Money Market Funds | 100,500,000 | 149,700,000 |
Total, Assets | 185,600,000 | 239,500,000 |
Derivatives, Liabilities | 6,400,000 | 2,100,000 |
Contingent consideration arising from acquisitions, liabilities | 2,000,000 | 2,100,000 |
Total, Liabilities | 8,400,000 | 4,200,000 |
fixed maturity and mutual funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed Maturity Mutual Funds and Open Ended Mutual Funds | 47,300,000 | 48,000,000 |
Fair Value Inputs Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative Contracts | 37,800,000 | 41,800,000 |
Money Market Funds | 0 | 0 |
Total, Assets | 37,800,000 | 41,800,000 |
Derivatives, Liabilities | 6,400,000 | 2,100,000 |
Contingent consideration arising from acquisitions, liabilities | 0 | 0 |
Total, Liabilities | 6,400,000 | 2,100,000 |
Fair Value Inputs Level 2 [Member] | fixed maturity and mutual funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed Maturity Mutual Funds and Open Ended Mutual Funds | 0 | 0 |
Fair Value Inputs Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative Contracts | ||
Money Market Funds | 0 | 0 |
Total, Assets | ||
Derivatives, Liabilities | 0 | 0 |
Contingent consideration arising from acquisitions, liabilities | 2,000,000 | 2,100,000 |
Total, Liabilities | 2,000,000 | 2,100,000 |
Fair Value Inputs Level 3 [Member] | fixed maturity and mutual funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed Maturity Mutual Funds and Open Ended Mutual Funds | 0 | 0 |
Fair Value Inputs Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative Contracts | ||
Fixed Maturity Mutual Funds and Open Ended Mutual Funds | 47,300,000 | 48,000,000 |
Money Market Funds | 100,500,000 | 149,700,000 |
Total, Assets | 147,800,000 | 197,700,000 |
Derivatives, Liabilities | 0 | 0 |
Contingent consideration arising from acquisitions, liabilities | 0 | 0 |
Total, Liabilities | ||
Fair Value Inputs Level 1 [Member] | fixed maturity and mutual funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed Maturity Mutual Funds and Open Ended Mutual Funds | $47,300,000 | $48,000,000 |
Changes_in_Fair_Value_of_Level
Changes in Fair Value of Level Three Liabilities (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Contingent Consideration, beginning balance | $2.10 | $17.50 |
Total gains (realized and unrealized), Included in earnings | 0.2 | |
Foreign currency translation adjustments | -0.1 | -0.1 |
Contingent Consideration, ending balance | $2 | $17.20 |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Of Financial Instruments [Line Items] | ||||
Contingent consideration at fair value | $2,000,000 | $17,200,000 | $2,100,000 | $17,500,000 |
Business Combination Contingent Consideration Liability | 2,000,000 | 2,100,000 | ||
Payments Of Dividends Minority Interest | 3,700,000 | 5,400,000 | ||
Accounts Payable And Accrued Liabilities [Member] | ||||
Fair Value Of Financial Instruments [Line Items] | ||||
Business Combination Contingent Consideration Liability | 2,000,000 | |||
Amba [Member] | ||||
Fair Value Of Financial Instruments [Line Items] | ||||
Business Combination Contingent Consideration Liability | 4,300,000 | |||
Payments Of Dividends Minority Interest | $12,200,000 | |||
Copal [Member] | ||||
Fair Value Of Financial Instruments [Line Items] | ||||
Minority Interest Ownership Percentage By Noncontrolling Owners | 33.00% |
OTHER_BALANCE_SHEET_INFORMATIO
OTHER BALANCE SHEET INFORMATION | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
OTHER BALANCE SHEET INFORMATION | NOTE 10. OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION | |||||||
The following tables contain additional detail related to certain balance sheet captions: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Other current assets: | ||||||||
Prepaid taxes | $ | 62.8 | $ | 65.4 | ||||
Prepaid expenses | 64.4 | 59.9 | ||||||
Other | 37.2 | 47.2 | ||||||
Total other current assets | $ | 164.4 | $ | 172.5 | ||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Other assets: | ||||||||
Investments in joint ventures | $ | 23.4 | $ | 21.6 | ||||
Deposits for real-estate leases | 11.8 | 11.3 | ||||||
Indemnification assets related to acquisitions | 23.5 | 23.5 | ||||||
Fixed maturity and open ended mutual funds | 47.3 | 48 | ||||||
Other | 60.7 | 41.5 | ||||||
Total other assets | $ | 166.7 | $ | 145.9 | ||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Accounts payable and accrued liabilities: | ||||||||
Salaries and benefits | $ | 89.9 | $ | 86.5 | ||||
Incentive compensation | 35.2 | 155.2 | ||||||
Profit sharing contribution | - | 9.3 | ||||||
Customer credits, advanced payments and advanced billings | 21.3 | 17 | ||||||
Self-insurance reserves for wholly-owned insurance subsidiary | 22.1 | 21.5 | ||||||
Dividends | 3.9 | 75 | ||||||
Professional service fees | 48 | 47 | ||||||
Interest accrued on debt | 15.8 | 45 | ||||||
Accounts payable | 21.1 | 19.4 | ||||||
Income taxes | 50.4 | 16.1 | ||||||
Pension and other retirement employee benefits | 5.1 | 5.1 | ||||||
Other | 66.4 | 60.5 | ||||||
Total accounts payable and accrued liabilities | $ | 379.2 | $ | 557.6 | ||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Other liabilities: | ||||||||
Pension and other retirement employee benefits | $ | 251.1 | $ | 244.8 | ||||
Deferred rent-non-current portion | 101.8 | 104.2 | ||||||
Interest accrued on UTPs | 24 | 20.8 | ||||||
Legacy and other tax matters | 8.7 | 8.6 | ||||||
Other | 58.5 | 52.5 | ||||||
Total other liabilities | $ | 444.1 | $ | 430.9 | ||||
Changes in the Company’s self-insurance reserves for claims insured by the Company’s wholly-owned insurance subsidiary, which primarily relate to legal defense costs for claims from prior years, are as follows: | ||||||||
Three Months Ended | Year Ended | |||||||
March 31, | December 31, | |||||||
(in millions) | 2015 | 2014 | ||||||
Balance January 1, | $ | 21.5 | $ | 27.6 | ||||
Accruals (reversals), net | 2.3 | 5.8 | ||||||
Payments | -1.7 | -11.9 | ||||||
Balance | $ | 22.1 | $ | 21.5 | ||||
Noncontrolling Interests: | ||||||||
The following table summarizes the changes in the Company’s noncontrolling interests: | ||||||||
Three Months Ended | Year Ended | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
(in millions) | Noncontrolling Interests | |||||||
Balance January 1, | $ | 230.7 | $ | 10.9 | ||||
Net earnings | 1.2 | 7.9 | ||||||
Dividends | -4.4 | -6.9 | ||||||
ICRA noncontrolling interest* | - | 218.8 | ||||||
Balance | $ | 227.5 | $ | 230.7 | ||||
* Represents the fair value of the ICRA noncontrolling interest as of the day majority control was acquired. | ||||||||
Other Non-Operating (Expense) Income: | ||||||||
The following table summarizes the components of other non-operating (expense) income: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
FX gain/(loss) | $ | - | $ | 1 | ||||
Joint venture income | 1.9 | 1.8 | ||||||
Other | 0.6 | -0.4 | ||||||
Total | $ | 2.5 | $ | 2.4 |
OTHER_BALANCE_SHEET_INFORMATIO1
OTHER BALANCE SHEET INFORMATION (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Additional Details Related to Certain Balance Sheet Captions | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Other current assets: | ||||||||
Prepaid taxes | $ | 62.8 | $ | 65.4 | ||||
Prepaid expenses | 64.4 | 59.9 | ||||||
Other | 37.2 | 47.2 | ||||||
Total other current assets | $ | 164.4 | $ | 172.5 | ||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Other assets: | ||||||||
Investments in joint ventures | $ | 23.4 | $ | 21.6 | ||||
Deposits for real-estate leases | 11.8 | 11.3 | ||||||
Indemnification assets related to acquisitions | 23.5 | 23.5 | ||||||
Fixed maturity and open ended mutual funds | 47.3 | 48 | ||||||
Other | 60.7 | 41.5 | ||||||
Total other assets | $ | 166.7 | $ | 145.9 | ||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Accounts payable and accrued liabilities: | ||||||||
Salaries and benefits | $ | 89.9 | $ | 86.5 | ||||
Incentive compensation | 35.2 | 155.2 | ||||||
Profit sharing contribution | - | 9.3 | ||||||
Customer credits, advanced payments and advanced billings | 21.3 | 17 | ||||||
Self-insurance reserves for wholly-owned insurance subsidiary | 22.1 | 21.5 | ||||||
Dividends | 3.9 | 75 | ||||||
Professional service fees | 48 | 47 | ||||||
Interest accrued on debt | 15.8 | 45 | ||||||
Accounts payable | 21.1 | 19.4 | ||||||
Income taxes | 50.4 | 16.1 | ||||||
Pension and other retirement employee benefits | 5.1 | 5.1 | ||||||
Other | 66.4 | 60.5 | ||||||
Total accounts payable and accrued liabilities | $ | 379.2 | $ | 557.6 | ||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Other liabilities: | ||||||||
Pension and other retirement employee benefits | $ | 251.1 | $ | 244.8 | ||||
Deferred rent-non-current portion | 101.8 | 104.2 | ||||||
Interest accrued on UTPs | 24 | 20.8 | ||||||
Legacy and other tax matters | 8.7 | 8.6 | ||||||
Other | 58.5 | 52.5 | ||||||
Total other liabilities | $ | 444.1 | $ | 430.9 | ||||
Changes in Non-Redeemable Noncontrolling Interest | ||||||||
Three Months Ended | Year Ended | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
(in millions) | Noncontrolling Interests | |||||||
Balance January 1, | $ | 230.7 | $ | 10.9 | ||||
Net earnings | 1.2 | 7.9 | ||||||
Dividends | -4.4 | -6.9 | ||||||
ICRA noncontrolling interest* | - | 218.8 | ||||||
Balance | $ | 227.5 | $ | 230.7 | ||||
OtherNonOperating | Three Months Ended | |||||||
March 31, | ||||||||
2015 | 2014 | |||||||
FX gain/(loss) | $ | - | $ | 1 | ||||
Joint venture income | 1.9 | 1.8 | ||||||
Other | 0.6 | -0.4 | ||||||
Total | $ | 2.5 | $ | 2.4 | ||||
Self Insurance Reserves | ||||||||
Three Months Ended | Year Ended | |||||||
March 31, | December 31, | |||||||
(in millions) | 2015 | 2014 | ||||||
Balance January 1, | $ | 21.5 | $ | 27.6 | ||||
Accruals (reversals), net | 2.3 | 5.8 | ||||||
Payments | -1.7 | -11.9 | ||||||
Balance | $ | 22.1 | $ | 21.5 |
Additional_Details_Related_to_
Additional Details Related to Certain Balance Sheet Captions (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Other current assets | |||
Prepaid taxes | $62,800,000 | $65,400,000 | |
Prepaid expenses | 64,400,000 | 59,900,000 | |
Other | 37,200,000 | 47,200,000 | |
Total other current assets | 164,400,000 | 172,500,000 | |
Other assets | |||
Investments in joint ventures | 23,400,000 | 21,600,000 | |
Deposits for real-estate leases | 11,800,000 | 11,300,000 | |
Other | 60,700,000 | 41,500,000 | |
Total other assets | 166,700,000 | 145,900,000 | |
Indemnification assets related to acquisitions | 23,500,000 | 23,500,000 | |
Fixed maturity and other open ended mutual funds | 47,300,000 | 48,000,000 | |
Accounts payable and accrued liabilities | |||
Salaries and benefits | 89,900,000 | 86,500,000 | |
Incentive compensation | 35,200,000 | 155,200,000 | |
Customer credits, advanced payments and advanced billings | 21,300,000 | 17,000,000 | |
Dividends | 3,900,000 | 75,000,000 | |
Professional service fees | 48,000,000 | 47,000,000 | |
Interest accrued on debt | 15,800,000 | 45,000,000 | |
Accounts payable | 21,100,000 | 19,400,000 | |
Income taxes | 50,400,000 | 16,100,000 | |
Pension and other post retirement employee benefits | 5,100,000 | 5,100,000 | |
Other | 66,400,000 | 60,500,000 | |
Total accounts payable and accrued liabilities | 379,200,000 | 557,600,000 | |
Self-insurance reserves | 22,100,000 | 21,500,000 | 27,600,000 |
Profit Sharing Contribution | 0 | 9,300,000 | |
Other liabilities | |||
Pension and other post retirement employee benefits | 251,100,000 | 244,800,000 | |
Deferred rent-non-current portion | 101,800,000 | 104,200,000 | |
Interest accrued on UTPs | 24,000,000 | 20,800,000 | |
Legacy and other tax matters | 8,700,000 | 8,600,000 | |
Other | 58,500,000 | 52,500,000 | |
Total other liabilities | $444,100,000 | $430,900,000 |
Changes_in_Self_Insurance_Rese
Changes in Self Insurance Reserves (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Disclosure Changes in Self Insurance Reserves [Abstract] | ||
Beginning Balance | $21,500,000 | $27,600,000 |
Accruals (reversals), net | 2,300,000 | 5,800,000 |
Payments | -1,700,000 | -11,900,000 |
Ending Balance | $22,100,000 | $21,500,000 |
Changes_in_Redeemable_Noncontr
Changes in Redeemable Noncontrolling Interest Related to Acquisition (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Redeemable Noncontrolling Interest [Line Items] | ||
Beginning balance | ||
Distributions | 4.4 | 6.9 |
Ending balance |
Changes_in_NonRedeemable_Nonco
Changes in Non-Redeemable Noncontrolling Interest (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Minority Interest [Line Items] | ||
Beginning balance | $230.70 | $10.90 |
Net Income | 1.2 | 7.9 |
Distributions | 4.4 | 6.9 |
Ending balance | 227.5 | 230.7 |
Noncontrolling Interest [Member] | ||
Minority Interest [Line Items] | ||
ICRA noncontrolling interest | $0 | $218.80 |
Other_NonOperating_Interest_De
Other Non-Operating Interest (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Component of Other Expense Income Nonoperating [Line Items] | ||
Foreign Currency | $0 | $1 |
Legacy Tax Liabilities | 0 | 0 |
Income Loss From Joint Venture | 1.9 | 1.8 |
Other Non Operating Income Expense Other | 0.6 | -0.4 |
Other non-operating income (expense), net | $2.50 | $2.40 |
COMPREHENSIVE_INCOME_RECLASSIF
COMPREHENSIVE INCOME RECLASSIFICATION | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Text Block [Abstract] | ||||||||||||||||
Comprehensiveincome | NOTE 11. COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||
The following table provides details about the reclassifications out of AOCI: | ||||||||||||||||
Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | Affected line in the consolidated statement of operations | ||||||||||||||
Foreign curency translation adjustments | - | - | ||||||||||||||
Gains on liquidation of foreign subsidiaries | $ | 0.1 | $ | - | Other non-operating income (expense), net | |||||||||||
Total gains on foreign currency translation adjustments | 0.1 | - | ||||||||||||||
Losses on net investment hedges | ||||||||||||||||
Pension and other retirement benefits | ||||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | -2.3 | -1.3 | Operating expense | |||||||||||||
Amortization of actuarial losses and prior service costs included in net income | -1.5 | -0.4 | SG&A expense | |||||||||||||
Total before income taxes | -3.8 | -1.7 | ||||||||||||||
Income tax effect of item above | 1.5 | 1.5 | Provision for income taxes | |||||||||||||
Total pension and other retirement benefits | -2.3 | -0.2 | ||||||||||||||
Total losses included in Net Income attributable to reclassifications out of AOCI | $ | -2.2 | $ | -0.2 | ||||||||||||
The following table shows changes in AOCI by component (net of tax): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
31-Mar-15 | ||||||||||||||||
Gains/(Losses) on Net Investment Hedges | Pension and Other Retirement Benefits | Foreign Currency Translation Adjustments | Gains on Available for Sale Securities | Total | ||||||||||||
Balance December 31, | $ | 20.9 | $ | -105.4 | $ | -151.6 | $ | 0.9 | $ | -235.2 | ||||||
Other comprehensive income/(loss) before reclassifications | 18.9 | - | -109.4 | 1.1 | -89.4 | |||||||||||
Amounts reclassified from AOCI | - | 2.3 | -0.1 | - | 2.2 | |||||||||||
Other comprehensive income/(loss) | 18.9 | 2.3 | -109.5 | 1.1 | -87.2 | |||||||||||
Balance March 31, | $ | 39.8 | $ | -103.1 | $ | -261.1 | $ | 2 | $ | -322.4 | ||||||
Three Months Ended | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Gains/(Losses) on Net Investment Hedges | Pension and Other Retirement Benefits | Foreign Currency Translation Adjustments | Gains on Available for Sale Securities | Total | ||||||||||||
Balance December 31, | $ | 1.5 | $ | -53.2 | $ | -2.9 | $ | - | $ | -54.6 | ||||||
Other comprehensive income/(loss) before reclassifications | -2.1 | - | -4.8 | - | -6.9 | |||||||||||
Amounts reclassified from AOCI | - | 0.2 | - | - | 0.2 | |||||||||||
Net current period other comprehensive income/(loss) | -2.1 | 0.2 | -4.8 | - | -6.7 | |||||||||||
Balance March 31, | $ | -0.6 | $ | -53 | $ | -7.7 | $ | - | $ | -61.3 |
COMPREHENSIVE_INCOME_RECLASSIF1
COMPREHENSIVE INCOME RECLASSIFICATIONS (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Text Block [Abstract] | ||||||||||||||||
AOCI Reclassification [Text Block] | Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | Affected line in the consolidated statement of operations | |||||||||||||
Foreign curency translation adjustments | - | - | ||||||||||||||
Gains on liquidation of foreign subsidiaries | $ | 0.1 | $ | - | Other non-operating income (expense), net | |||||||||||
Total gains on foreign currency translation adjustments | 0.1 | - | ||||||||||||||
Losses on net investment hedges | ||||||||||||||||
Pension and other retirement benefits | ||||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | -2.3 | -1.3 | Operating expense | |||||||||||||
Amortization of actuarial losses and prior service costs included in net income | -1.5 | -0.4 | SG&A expense | |||||||||||||
Total before income taxes | -3.8 | -1.7 | ||||||||||||||
Income tax effect of item above | 1.5 | 1.5 | Provision for income taxes | |||||||||||||
Total pension and other retirement benefits | -2.3 | -0.2 | ||||||||||||||
Total losses included in Net Income attributable to reclassifications out of AOCI | $ | -2.2 | $ | -0.2 | ||||||||||||
Schedule Of Accumulated Other Comprehensive Income Loss Table [Text Block] | Three Months Ended | |||||||||||||||
31-Mar-15 | ||||||||||||||||
Gains/(Losses) on Net Investment Hedges | Pension and Other Retirement Benefits | Foreign Currency Translation Adjustments | Gains on Available for Sale Securities | Total | ||||||||||||
Balance December 31, | $ | 20.9 | $ | -105.4 | $ | -151.6 | $ | 0.9 | $ | -235.2 | ||||||
Other comprehensive income/(loss) before reclassifications | 18.9 | - | -109.4 | 1.1 | -89.4 | |||||||||||
Amounts reclassified from AOCI | - | 2.3 | -0.1 | - | 2.2 | |||||||||||
Other comprehensive income/(loss) | 18.9 | 2.3 | -109.5 | 1.1 | -87.2 | |||||||||||
Balance March 31, | $ | 39.8 | $ | -103.1 | $ | -261.1 | $ | 2 | $ | -322.4 | ||||||
Three Months Ended | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Gains/(Losses) on Net Investment Hedges | Pension and Other Retirement Benefits | Foreign Currency Translation Adjustments | Gains on Available for Sale Securities | Total | ||||||||||||
Balance December 31, | $ | 1.5 | $ | -53.2 | $ | -2.9 | $ | - | $ | -54.6 | ||||||
Other comprehensive income/(loss) before reclassifications | -2.1 | - | -4.8 | - | -6.9 | |||||||||||
Amounts reclassified from AOCI | - | 0.2 | - | - | 0.2 | |||||||||||
Net current period other comprehensive income/(loss) | -2.1 | 0.2 | -4.8 | - | -6.7 | |||||||||||
Balance March 31, | $ | -0.6 | $ | -53 | $ | -7.7 | $ | - | $ | -61.3 |
Reclassification_out_of_AOCI_D
Reclassification out of AOCI (Detail) | 3 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
USD ($) | EUR (€) | USD ($) | EUR (€) | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Operating Expense [Member] | Operating Expense [Member] | Other Nonoperating Income Expense 1[Member] | Other Nonoperating Income Expense 1[Member] | Icra Gain [Member] | Icra Gain [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Interest Expense [Member] | Interest Expense [Member] | Provisions for Income Taxes [Member] | Provisions for Income Taxes [Member] | |||||
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | ($0.10) | $0 | $0.10 | $0 | $0 | $0 | ||||||||||
Foreign Currency Translation Adjustment Reclassification Of Losses To Net Income Pursuant To Icra Step Acquisition Pre Tax | 0.1 | 0 | ||||||||||||||
Cash flow and net investment hedges, net of tax: | ||||||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 0 | 0 | 0 | 0 | ||||||||||||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI On Derivatives Tax | 0 | 0 | 0 | 0 | ||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 0 | ||||||||||||||
Pension and Other Post-Retirement Benefits, net of tax: | ||||||||||||||||
Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Net Unamortized Gain Loss Arising During Period Before Tax | 3.8 | 1.7 | -1.5 | -0.4 | -2.3 | -1.3 | ||||||||||
Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax | 1.5 | 1.5 | ||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | 2.3 | 0.2 | ||||||||||||||
Total other comprehensive income (loss)-Net of Tax | -87.2 | -6.7 | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | -0.1 | 0 | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 0 | 0 | ||||||||||||||
Total Reclassifications | -0.1 | 0 | 0.1 | 0 | 0 | 0 | ||||||||||
Gains on available for sale securities, net of tax: | ||||||||||||||||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Net Of Tax | $0 | $0 |
Changes_in_AOCI_Detail
Changes in AOCI (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Beginning Balance | ($235.20) | ($54.60) | ||
Net unrealized gain (losses) on cash flow and net investment hedges-Net of Tax | 18.9 | -2.1 | ||
Reclassification of losses included in net income- Net of Tax | 0 | 0 | ||
Amortization of actuarial losses and prior service costs included in net income | 2.3 | 0.2 | ||
Net actuarial losses and prior service costs | 0 | 0 | ||
Foreign currency translation adjustments-Net of Tax | -109.4 | -4.8 | ||
Foreign currency translation adjustments - reclassification of losses included in net income due to liquidation of a foreign subsidiary Net of Tax | -0.1 | 0 | ||
Unrealized Gains On Available For Sale Securities | 1.1 | 0 | ||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Net Of Tax | 0 | 0 | ||
Ending Balance | -322.4 | -61.3 | ||
Gains Losses On Cash Flow and Net Investment Hedges [Member] | ||||
Beginning Balance | 20.9 | 1.5 | ||
Ending Balance | 39.8 | -0.6 | 20.9 | 1.5 |
Pension And Other Postretirement Plans Costs Member | ||||
Beginning Balance | -105.4 | -53.2 | ||
Ending Balance | -103.1 | -53 | -105.4 | -53.2 |
Foreign Currency Gain Loss Member | ||||
Beginning Balance | -151.6 | -2.9 | ||
Ending Balance | -261.1 | -7.7 | -151.6 | -2.9 |
Available for sale Securities Member | ||||
Beginning Balance | 0.9 | 0 | ||
Ending Balance | $2 | $0 | $0.90 | $0 |
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POST-RETIREMENT BENEFITS | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
PENSION AND OTHER POST-RETIREMENT BENEFITS | NOTE 12. PENSION AND OTHER RETIREMENT BENEFITS | ||||||||||||
Moody’s maintains funded and unfunded noncontributory Defined Benefit Pension Plans. The U.S. Plans 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 retirement healthcare plans are contributory; the life insurance plans are noncontributory. Moody’s funded and unfunded U.S. pension plans, the U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Retirement Plans”. The U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Other Retirement Plans”. | |||||||||||||
Effective January 1, 2008, the Company no longer offers DBPPs to U.S. employees hired or rehired on or after January 1, 2008. New U.S. employees will instead receive a retirement contribution of similar benefit value under the Company’s Profit Participation Plan. Current participants of the Company’s DBPPs continue to accrue benefits based on existing plan formulas. | |||||||||||||
The components of net periodic benefit expense related to the Retirement Plans are as follows: | |||||||||||||
Three Months Ended March 31, | |||||||||||||
Pension Plans | Other Retirement Plans | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Components of net periodic expense | |||||||||||||
Service cost | $ | 5.8 | $ | 4.6 | $ | 0.5 | $ | 0.4 | |||||
Interest cost | 4.3 | 4 | 0.2 | 0.2 | |||||||||
Expected return on plan assets | -3.6 | -3.5 | - | - | |||||||||
Amortization of net actuarial loss from earlier periods | 3.4 | 1.5 | 0.1 | - | |||||||||
Amortization of net prior service costs from earlier periods | 0.2 | 0.2 | - | - | |||||||||
Net periodic expense | $ | 10.1 | $ | 6.8 | $ | 0.8 | $ | 0.6 | |||||
The Company made payments of $0.5 million related to its unfunded U.S. DBPPs and made no significant payments to its U.S. other retirement plans during the three months ended March 31, 2015. The Company currently anticipates making contribution of $20.6 million to its funded pension plan and making payments of $3.8 million related to its unfunded U.S. DBPPs and $0.8 million to its U.S. other retirement plans, respectively, during the remainder of 2015. | |||||||||||||
PENSION_AND_OTHER_POSTRETIREME1
PENSION AND OTHER POST-RETIREMENT BENEFITS (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Components of Net Periodic Benefit Expense Related to Post-Retirement Plans | Three Months Ended March 31, | ||||||||||||
Pension Plans | Other Retirement Plans | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Components of net periodic expense | |||||||||||||
Service cost | $ | 5.8 | $ | 4.6 | $ | 0.5 | $ | 0.4 | |||||
Interest cost | 4.3 | 4 | 0.2 | 0.2 | |||||||||
Expected return on plan assets | -3.6 | -3.5 | - | - | |||||||||
Amortization of net actuarial loss from earlier periods | 3.4 | 1.5 | 0.1 | - | |||||||||
Amortization of net prior service costs from earlier periods | 0.2 | 0.2 | - | - | |||||||||
Net periodic expense | $ | 10.1 | $ | 6.8 | $ | 0.8 | $ | 0.6 | |||||
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Expense Related to Post-Retirement Plans (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Plans Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $5.80 | $4.60 |
Interest cost | 4.3 | 4 |
Expected return on plan assets | -3.6 | -3.5 |
Amortization of net actuarial loss from earlier periods | 3.4 | 1.5 |
Amortization of net prior service costs from earlier periods | 0.2 | 0.2 |
Net periodic expense | 10.1 | 6.8 |
Other Postretirement Benefit Plans Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.5 | 0.4 |
Interest cost | 0.2 | 0.2 |
Expected return on plan assets | 0 | 0 |
Amortization of net actuarial loss from earlier periods | 0.1 | 0 |
Amortization of net prior service costs from earlier periods | 0 | 0 |
Net periodic expense | $0.80 | $0.60 |
Recovered_Sheet5
Pension and Other Post-Retirement Benefits - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Funded Pension Plans [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined Benefit Plan | $20,600,000 |
Unfunded Pension Plans [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined benefit payment amount | 500,000 |
Estimated additional payments in 2013 | 3,800,000 |
Other Postretirement Benefit Plans Defined Benefit [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Estimated additional payments in 2013 | $800,000 |
INDEBTEDNESS
INDEBTEDNESS | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
INDEBTEDNESS | NOTE 13. INDEBTEDNESS | |||||||||||
The following table summarizes total indebtedness: | ||||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Notes Payable: | ||||||||||||
6.06% Series 2007-1 Notes due 2017 | $ | 300 | $ | 300 | ||||||||
5.50% 2010 Senior Notes, due 2020, net of unamortized discount of $1.9 million in 2015 and $2.0 million in 2014; also includes a fair value adjustment on an interest rate hedge of $13.0 million in 2015 and $5.8 million in 2014 | 511.1 | 503.8 | ||||||||||
4.50% 2012 Senior Notes, due 2022, net of unamortized discount of $3.0 million in 2015 and $3.1 million in 2014 | 497 | 496.9 | ||||||||||
4.875% 2013 Senior Notes, due 2024, net of unamortized discount of $2.5 million in both 2015 and 2014 | 497.5 | 497.5 | ||||||||||
2.75% 2014 Senior Notes (5-Year), due 2019, net of unamortized discount of $0.6 million in 2015 and $0.7 million in 2014; also includes a fair value adjustment on an interest rate hedge of $4.7 million in 2015 and $1.4 million in 2014 | 454.1 | 450.7 | ||||||||||
5.25% 2014 Senior Notes (30-Year), due 2044, net of unamortized discount of $1.6 million in 2015 and 2014 | 298.4 | 298.4 | ||||||||||
1.75% 2015 Senior Notes, due 2027 | 537 | - | ||||||||||
Total long-term debt | $ | 3,095.10 | $ | 2,547.30 | ||||||||
The Company has the capacity to borrow up to $1 billion under its unsecured revolving credit facility which expires in April 2017. Any future borrowings under this facility would accrue interest at LIBOR plus a premium that can range from 77.5 bps to 120 bps per annum based on the Company’s debt/EBITDA ratio. | ||||||||||||
On March 9, 2015, the Company issued €500 million aggregate principal amount of senior unsecured notes in a public offering. The 2015 Senior Notes bear interest at a fixed rate of 1.75% and mature on March 9, 2027. Interest on the 2015 Senior Notes will be due annually on March 9 of each year, commencing March 9, 2016. The Company may prepay the 2015 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2015 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2015 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2015 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2015 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2015 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2015 Indenture, the 2015 Senior Notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding. The Company has designated €400 million of the 2015 Senior Notes as a net investment hedge as more fully discussed in Note 7. | ||||||||||||
The Company has entered into interest rate swaps on the 2010 Senior Notes and the 2014 Senior Notes (5-Year) which are more fully discussed in Note 7 above. | ||||||||||||
At March 31, 2015, the Company was in compliance with all covenants contained within all of the debt agreements. In addition to the covenants described above, the 2015 Indenture, the 2014 Indenture, the 2012 Facility, the 2007 Agreement, the 2010 Senior Notes, the 2012 Senior Notes and the 2013 Senior Notes contain cross default provisions. These provisions state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of March 31, 2015, there were no such cross defaults. | ||||||||||||
Interest expense, net | ||||||||||||
The following table summarizes the components of interest as presented in the consolidated statements of operations: | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Income | $ | 1.9 | $ | 1.6 | ||||||||
Expense on borrowings | -28.3 | -26.1 | ||||||||||
UTPs and other tax related liabilities (1) | -3.2 | 0.6 | ||||||||||
Capitalized | 0.3 | 0.1 | ||||||||||
Total | $ | -29.3 | $ | -23.8 | ||||||||
(1) The three months ended March 31, 2014 amount includes a $2.0 million reversal of an interest accrual relating to the favorable resolution of an international tax matter. | ||||||||||||
The following table shows the cash paid for interest: | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Interest paid | $ | 48.2 | $ | 54.2 | ||||||||
The Company’s long-term debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for the 2010 Senior Notes and the 2014 Senior Notes (5-Year) which are recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge the fair value of the note. The fair value and carrying value of the Company’s long-term debt as of March 31, 2015 and December 31, 2014 are as follows: | ||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||
Series 2007-1 Notes | $ | 300 | $ | 335.6 | $ | 300 | $ | 334.6 | ||||
2010 Senior Notes | 511.1 | 571.1 | 503.8 | 564.4 | ||||||||
2012 Senior Notes | 497 | 545.2 | 496.9 | 537.1 | ||||||||
2013 Senior Notes | 497.5 | 557.9 | 497.5 | 548.4 | ||||||||
2014 Senior Notes (5-Year) | 454.1 | 460.3 | 450.7 | 454.3 | ||||||||
2014 Senior Notes (30-Year) | 298.4 | 340.5 | 298.4 | 333.9 | ||||||||
2015 Senior Notes | 537 | 552.9 | - | - | ||||||||
Total | $ | 3,095.10 | $ | 3,363.50 | $ | 2,547.30 | $ | 2,772.70 | ||||
The fair value of the Company’s long-term debt is estimated using discounted cash flows with inputs based on prevailing interest rates available to the Company for borrowings with similar maturities. |
INDEBTEDNESS_Tables
INDEBTEDNESS (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Summary of Total Indebtedness | March 31, | December 31, | ||||||||||
2015 | 2014 | |||||||||||
Notes Payable: | ||||||||||||
6.06% Series 2007-1 Notes due 2017 | $ | 300 | $ | 300 | ||||||||
5.50% 2010 Senior Notes, due 2020, net of unamortized discount of $1.9 million in 2015 and $2.0 million in 2014; also includes a fair value adjustment on an interest rate hedge of $13.0 million in 2015 and $5.8 million in 2014 | 511.1 | 503.8 | ||||||||||
4.50% 2012 Senior Notes, due 2022, net of unamortized discount of $3.0 million in 2015 and $3.1 million in 2014 | 497 | 496.9 | ||||||||||
4.875% 2013 Senior Notes, due 2024, net of unamortized discount of $2.5 million in both 2015 and 2014 | 497.5 | 497.5 | ||||||||||
2.75% 2014 Senior Notes (5-Year), due 2019, net of unamortized discount of $0.6 million in 2015 and $0.7 million in 2014; also includes a fair value adjustment on an interest rate hedge of $4.7 million in 2015 and $1.4 million in 2014 | 454.1 | 450.7 | ||||||||||
5.25% 2014 Senior Notes (30-Year), due 2044, net of unamortized discount of $1.6 million in 2015 and 2014 | 298.4 | 298.4 | ||||||||||
1.75% 2015 Senior Notes, due 2027 | 537 | - | ||||||||||
Total long-term debt | $ | 3,095.10 | $ | 2,547.30 | ||||||||
Summary of Components of Interest as Presented in Consolidated Statements of Operations | Three Months Ended | |||||||||||
March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Income | $ | 1.9 | $ | 1.6 | ||||||||
Expense on borrowings | -28.3 | -26.1 | ||||||||||
UTPs and other tax related liabilities (1) | -3.2 | 0.6 | ||||||||||
Capitalized | 0.3 | 0.1 | ||||||||||
Total | $ | -29.3 | $ | -23.8 | ||||||||
(1) The three months ended March 31, 2014 amount includes a $2.0 million reversal of an interest accrual relating to the favorable resolution of an international tax matter. | ||||||||||||
Interest Paid | Three Months Ended | |||||||||||
March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Interest paid | $ | 48.2 | $ | 54.2 | ||||||||
Fair Value and Carrying Value of Long-Term Debt | 31-Mar-15 | 31-Dec-14 | ||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||
Series 2007-1 Notes | $ | 300 | $ | 335.6 | $ | 300 | $ | 334.6 | ||||
2010 Senior Notes | 511.1 | 571.1 | 503.8 | 564.4 | ||||||||
2012 Senior Notes | 497 | 545.2 | 496.9 | 537.1 | ||||||||
2013 Senior Notes | 497.5 | 557.9 | 497.5 | 548.4 | ||||||||
2014 Senior Notes (5-Year) | 454.1 | 460.3 | 450.7 | 454.3 | ||||||||
2014 Senior Notes (30-Year) | 298.4 | 340.5 | 298.4 | 333.9 | ||||||||
2015 Senior Notes | 537 | 552.9 | - | - | ||||||||
Total | $ | 3,095.10 | $ | 3,363.50 | $ | 2,547.30 | $ | 2,772.70 |
Summary_of_Total_Indebtedness_
Summary of Total Indebtedness (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $3,095.10 | $2,547.30 |
Series Two Thousand Seven Dash One Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 300 | 300 |
Twenty Ten Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 511.1 | 503.8 |
Twenty Twelve Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 497 | 496.9 |
Twenty Thirteen Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 497.5 | 497.5 |
Two Thousand Fourteen Senior Notes Five Year [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 454.1 | 450.7 |
Two Thousand Fourteen Senior Notes Thirty Year [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 298.4 | 298.4 |
Two thousand fifteen senior notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | $537 | $0 |
Summary_of_Total_Indebtedness_1
Summary of Total Indebtedness (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Fair value of interest rate swap | $37.80 | $41.80 |
Twenty Ten Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of interest rate swap | 13 | 5.8 |
Unamortized discount | 1.9 | 2 |
Twenty Twelve Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized discount | 3 | 3.1 |
Twenty Thirteen Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized discount | 2.5 | 2.5 |
Two Thousand Fourteen Senior Notes Five Year [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of interest rate swap | 4.7 | 1.4 |
Unamortized discount | 0.6 | 0.7 |
Two Thousand Fourteen Senior Notes Thirty Year [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized discount | $1.60 | $1.60 |
Summary_of_Components_of_Inter
Summary of Components of Interest as Presented in Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||
Income | $1.90 | $1.60 |
Expense on borrowings | -28.3 | -26.1 |
Income (expense) on UTPs and other tax related liabilities | -3.2 | 0.6 |
Legacy Tax | 0 | 0 |
Capitalized | 0.3 | 0.1 |
Total | ($29.30) | ($23.80) |
Summary_of_Components_of_Inter1
Summary of Components of Interest as Presented in Consolidated Statements of Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||
Reversal of accrued interest expense related to Legacy Tax Matter | $2 | |
Income | $1.90 | $1.60 |
Interest_Paid_Detail
Interest Paid (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||
Interest paid | $48.20 | $54.20 |
Fair_Value_and_Carrying_Value_
Fair Value and Carrying Value of Long-Term Debt (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long Term Debt Noncurrent | $3,095.10 | $2,547.30 |
Estimated Fair Value | 3,363.50 | 2,772.70 |
Series Two Thousand Seven Dash One Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 300 | 300 |
Estimated Fair Value | 335.6 | 334.6 |
Twenty Ten Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 511.1 | 503.8 |
Estimated Fair Value | 571.1 | 564.4 |
Twenty Twelve Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 497 | 496.9 |
Estimated Fair Value | 545.2 | 537.1 |
Twenty Thirteen Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 497.5 | 497.5 |
Estimated Fair Value | 557.9 | 548.4 |
Two Thousand Fourteen Senior Notes Five Year [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 454.1 | 450.7 |
Estimated Fair Value | 460.3 | 454.3 |
Two Thousand Fourteen Senior Notes Thirty Year [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 298.4 | 298.4 |
Estimated Fair Value | 340.5 | 333.9 |
Two thousand fifteen senior notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | 537 | 0 |
Estimated Fair Value | $552.90 | $0 |
Fair_Value_and_Carrying_Value_1
Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Fair value of interest rate swap | $37.80 | $41.80 |
Twenty Ten Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of interest rate swap | 13 | 5.8 |
Debt Instrument Unamortized Discount | 1.9 | 2 |
Two Thousand Fourteen Senior Notes Five Year [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of interest rate swap | 4.7 | 1.4 |
Debt Instrument Unamortized Discount | 0.6 | 0.7 |
Two Thousand Fourteen Senior Notes Thirty Year [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Unamortized Discount | $1.60 | $1.60 |
Indebtedness_Additional_Inform
Indebtedness - Additional Information (Detail) (Two thousand fifteen senior notes [Member]) | 0 Months Ended | ||
Mar. 10, 2015 | Mar. 09, 2015 | Mar. 09, 2015 | |
USD ($) | USD ($) | EUR (€) | |
Debt Instrument [Line Items] | |||
Debt Instrument Face Amount | € 500,000,000 | ||
Debt Instrument Interest Rate Stated Percentage | 175.00% | 175.00% | |
Minimum Percentage Of Aggregate Principal Amount Of All Notes | 2500.00% | ||
Percentage Of Principal Amount Being Prepaid Plus Accrued And Unpaid Interest | 10000.00% | ||
Percentage Of Principal Amount Plus Accrued And Unpaid Interest To Date Of Purchase | 10100.00% | ||
Aggregate Amount For Default | 50,000,000 | ||
Minimum Amount For Default On Senior Notes Payable | $50,000,000 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
CONTINGENCIES | Moody’s is involved in legal and tax proceedings, governmental investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. |
Following the global credit crisis of 2008, MIS and other credit rating agencies have been the subject of intense scrutiny, increased regulation, ongoing inquiry and governmental investigations, and civil litigation. Legislative, regulatory and enforcement entities around the world are considering additional legislation, regulation and enforcement actions, including with respect to MIS’s compliance with regulatory standards. Moody’s has received subpoenas and inquiries from states attorneys general and other domestic and foreign governmental authorities and is responding to such investigations and inquiries. | |
In addition, the Company is facing litigation from market participants relating to the performance of MIS rated securities. Although Moody’s in the normal course experiences such litigation, the volume and cost of defending such litigation has significantly increased following the events in the U.S. subprime residential mortgage sector and global credit markets more broadly over the last several years. | |
On August 25, 2008, Abu Dhabi Commercial Bank filed a purported class action in the United States District Court for the Southern District of New York asserting numerous common-law causes of action against two subsidiaries of the Company, another rating agency, and Morgan Stanley & Co. The action related to securities issued by a structured investment vehicle called Cheyne Finance (the “Cheyne SIV”) and sought, among other things, compensatory and punitive damages. The central allegation against the rating agency defendants was that the credit ratings assigned to the securities issued by the Cheyne SIV were false and misleading. In early proceedings, the court dismissed all claims against the rating agency defendants except those for fraud and aiding and abetting fraud. In June 2010, the court denied plaintiff’s motion for class certification, and additional plaintiffs were subsequently added to the complaint. In January 2012, the rating agency defendants moved for summary judgment with respect to the fraud and aiding and abetting fraud claims. Also in January 2012, in light of new New York state case law, the court permitted the plaintiffs to file an amended complaint that reasserted previously dismissed claims against all defendants for breach of fiduciary duty, negligence, negligent misrepresentation, and related aiding and abetting claims. In May 2012, the court, ruling on the rating agency defendants’ motion to dismiss, dismissed all of the reasserted claims except for the negligent misrepresentation claim, and on September 19, 2012, after further proceedings, the court also dismissed the negligent misrepresentation claim. On August 17, 2012, the court ruled on the rating agencies’ motion for summary judgment on the plaintiffs’ remaining claims for fraud and aiding and abetting fraud. The court dismissed, in whole or in part, the fraud claims of four plaintiffs as against Moody’s but allowed the fraud claims to proceed with respect to certain claims of one of those plaintiffs and the claims of the remaining 11 plaintiffs. The court also dismissed all claims against Moody’s for aiding and abetting fraud. Three of the plaintiffs whose claims were dismissed filed motions for reconsideration, and on November 7, 2012, the court granted two of these motions, reinstating the claims of two plaintiffs that were previously dismissed. On February 1, 2013, the court dismissed the claims of one additional plaintiff on jurisdictional grounds. Trial on the remaining fraud claims against the rating agencies, and on claims against Morgan Stanley for aiding and abetting fraud and for negligent misrepresentation, was scheduled for May 2013. On April 24, 2013, pursuant to confidential settlement agreements, the 14 plaintiffs with claims that had been ordered to trial stipulated to the voluntary dismissal, with prejudice, of these claims as against all defendants, and the Court so ordered that stipulation on April 26, 2013. The settlement did not cover certain claims of two plaintiffs, Commonwealth of Pennsylvania Public School Employees’ Retirement System (“PSERS”) and Commerzbank AG (“Commerzbank”), that were previously dismissed by the Court. On May 23, 2013, these two plaintiffs filed a Notice of Appeal to the Second Circuit, seeking reversal of the dismissal of their claims and also seeking reversal of the trial court’s denial of class certification. According to pleadings filed by plaintiffs in earlier proceedings, PSERS and Commerzbank AG seek, respectively, $5.75 million and $69.6 million in compensatory damages in connection with the two claims at issue on the appeal. In October 2014, the Second Circuit affirmed the denial of class certification and the dismissal of PSERS’ claim but reversed a ruling of the trial court that had excluded certain evidence relevant to Commerzbank’s principal argument on appeal. The Second Circuit did not reverse the dismissal of Commerzbank’s claim but instead certified a legal question concerning Commerzbank’s argument to the New York Court of Appeals. The New York Court of Appeals subsequently agreed to hear the certified question, and argument is scheduled for June 2015. After the New York Court of Appeals has ruled on the certified question, the case will be returned to the Second Circuit for a final decision on Commerzbank’s appeal. | |
On July 9, 2009, the California Public Employees’ Retirement System (“CalPERS”) filed an action in the Superior Court of California in San Francisco (the “Superior Court”) asserting two common-law causes of action, negligent misrepresentation and negligent interference with prospective economic advantage. The complaint named as defendants the Company, MIS, The McGraw-Hill Companies, Fitch, Inc., and various subsidiaries of Fitch, Inc. (CalPERS subsequently released the Fitch entities from the case). The action relates to the plaintiff’s purchase of securities issued by three structured investment vehicles (“SIVs”) known as Cheyne Finance, Sigma Finance, and Stanfield Victoria Funding. The plaintiff’s complaint seeks unspecified compensatory damages arising from alleged losses in connection with investments that purportedly totaled approximately $1.3 billion; in subsequent court filings, the plaintiff claimed to have suffered “unrealized losses” of approximately $779 million. The central allegation against the defendants is that the credit ratings assigned to the securities issued by the SIVs were inaccurate and that the methodologies used by the rating agencies had no reasonable basis. In August 2009, the defendants removed the action to federal court, but the case was remanded to state court in November 2009 based on a finding that CalPERS is an “arm of the State.” In April 2010, in response to a motion by the defendants, the Superior Court dismissed the claim for negligent interference with prospective economic advantage but declined to dismiss the claim for negligent misrepresentation. In October 2010, the defendants filed a special motion to dismiss the remaining negligent misrepresentation claim under California’s “anti-SLAPP” statute, which limits the maintenance of lawsuits based on speech on matters of public interest. In January 2012, the Superior Court denied the anti-SLAPP motion, ruling that, although the ratings qualify as protected speech activity under California law, the plaintiff had provided sufficient evidence in support of its claims to proceed. The defendants appealed this decision to the California Court of Appeal, which affirmed the Superior Court’s rulings in May 2014, and in September 2014, the Supreme Court of California declined to review the Court of Appeal’s decision. The action has been returned to the Superior Court, and discovery has begun. On March 11, 2015, pursuant to a settlement agreement in which S&P agreed to pay CalPERS $125 million, S&P was dismissed from the action. | |
On February 11, 2015, the Superior Court of Connecticut in Waterbury denied MIS’s motion to dismiss in a case brought by plaintiffs Pursuit Partners, LLC and Pursuit Investment Management, LLC. In November 2008, the plaintiffs had filed an amended complaint adding the Company as a defendant to an existing action, which was then pending in the Superior Court of Connecticut in Stamford against UBS AG, UBS Securities LLC, and a UBS employee (collectively, “UBS”). The Company was served in January 2009, and in October 2011, the Company’s rating agency subsidiary, MIS, was substituted for the Company as a defendant. The action arises out of UBS’s sale of five collateralized debt obligations (“CDOs”) to the plaintiffs, who purchased them on the secondary market in 2007 on behalf of two investment funds under their management. With respect to UBS, the plaintiffs allege, among other things, that UBS made material misrepresentations and omissions in pre-sale communications with the plaintiffs. With respect to MIS, the plaintiffs allege, among other things, that, prior to the plaintiffs’ purchases, MIS provided UBS with non-public information about potential downgrades of the ratings of the CDOs while maintaining inappropriate investment-grade ratings on the CDOs. As to all defendants, plaintiffs seek compensatory damages for alleged investment losses of approximately $44 million, as well as, among other things, attorney’s fees, costs, interest, and punitive damages. Plaintiffs’ initial complaint against the Company asserted claims for fraud, violation of the Connecticut Uniform Securities Act (“CUSA”), aiding and abetting fraud and civil theft by UBS, negligent/reckless conduct, unjust enrichment, and civil conspiracy. In March 2012, the court granted MIS’s motion to strike the claim for unjust enrichment but denied MIS’s motion to strike the other claims. In June 2012, after the close of discovery, MIS moved to dismiss all claims against it for lack of standing and also moved for summary judgment. In October 2012, the court granted the motion to dismiss, but in July 2014, the court granted the plaintiffs’ motion for reconsideration and reinstated the action. In October 2014, MIS filed a new motion to dismiss on jurisdictional grounds, which was denied on February 11, 2015. The motion for summary judgment, originally filed by MIS in June 2012, is still pending. If MIS does not prevail on the motion for summary judgment, the court has scheduled a trial to begin in August 2015. | |
For claims, litigation and proceedings and governmental investigations and inquires not related to income taxes, where it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated, the Company records liabilities in the consolidated financial statements and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In other instances, because of uncertainties related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if significant. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. In view of the inherent difficulty of predicting the outcome of litigation, regulatory, governmental investigations and inquiries, enforcement and similar matters and contingencies, particularly where the claimants seek large or indeterminate damages or where the parties assert novel legal theories or the matters involve a large number of parties, the Company cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also cannot predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition. However, in light of the large or indeterminate damages sought in some of them, the absence of similar court rulings on the theories of law asserted and uncertainties regarding apportionment of any potential damages, an estimate of the range of possible losses cannot be made at this time. | |
Legacy Tax Matters | |
Moody’s continues to have exposure to potential liabilities arising from Legacy Tax Matters. As of March 31, 2015, Moody’s has recorded liabilities for Legacy Tax Matters totaling $11.0 million. This includes liabilities and accrued interest due to New D&B arising from the 2000 Distribution Agreement. It is possible that the ultimate liability for Legacy Tax Matters could be greater than the liabilities recorded by the Company, which could result in additional charges that may be material to Moody’s future reported results, financial position and cash flows. | |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Loss Contingencies [Line Items] | ||
Legacy Tax Liabilities | $0 | $0 |
Interest Income Expense Legacy Tax | 0 | 0 |
litigation | ||
Loss Contingencies [Line Items] | ||
Legacy Tax Liabilities | 11 | |
Abu Dhabi Commercial Bank Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Total compensatory damages value | 76 | |
Number of plaintiffs | 11 | |
Number of Plaintiffs Dismissed By Court | 4 | 1 |
Number of Plaintiffs Granted | 2 | |
Number of plaintiffs filed motions for reconsideration | 3 | |
Number of Plaintiffs Ordered to Trial | 14 | |
Class Action [Member] | litigation | ||
Loss Contingencies [Line Items] | ||
Number of plaintiffs | 2 | |
CalPERS [Member] | litigation | ||
Loss Contingencies [Line Items] | ||
Total compensatory damages value | 1,300 | |
Unrealized Losses Claimed by the Plaintiff | 779 | |
Pursuit Partners LLC [Member] | litigation | ||
Loss Contingencies [Line Items] | ||
Payment Regarding Calpers Litigation Matter | 125 | |
Pursuit Partners LLC [Member] | damages sought for all plaintiffs [Member] | ||
Loss Contingencies [Line Items] | ||
Total compensatory damages value | $44 |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
SEGMENT INFORMATION | NOTE 15. SEGMENT INFORMATION | ||||||||||||||||||||||||||
The Company is organized into three operating segments: (i) MIS, (ii) MA and (iii) Copal Amba. The Copal Amba operating segment has been aggregated with the MA operating segment based on the fact that it has similar economic characteristics to MA. Accordingly, the Company reports in two reportable segments: MIS and MA. | |||||||||||||||||||||||||||
In January 2014, the Company revised its operating segments to create the new Copal Amba operating segment. The new operating segment consists of all operations from Copal and the operations of Amba which was acquired in December 2013. The Copal Amba operating segment provides offshore research and analytic services to the global financial and corporate sectors. The Company has determined that the Copal Amba and MA operating segments have similar economic characteristics as set forth in ASC 280. As such, Copal Amba has been combined with MA to form the MA reportable segment and Copal Amba’s revenue is reported in the PS LOB. | |||||||||||||||||||||||||||
In the fourth quarter of 2014, pursuant to the acquisition of ICRA, Moody’s realigned certain components of its reportable segments to better align with the current management structure of the Company. The effect of this realignment was to combine non-ratings ICRA operations with certain immaterial research and fixed income pricing operations in the Asia-Pacific region that were previously reported in the RD&A LOB of MA. All of these operations are managed by MIS and their revenue is now reported in the new MIS Other LOB. All operating expenses from these operations are reported in the MIS reportable segment. The impact of this realignment did not have a significant impact on previously reported results for the reportable segments and all prior year comparative periods have been restated to reflect this realignment. | |||||||||||||||||||||||||||
The MIS segment now consists of five LOBs. The corporate finance, structured finance, financial institutions and public, project and infrastructure finance LOBs generate revenue principally from fees for the assignment and ongoing monitoring of credit ratings on debt obligations and the entities that issue such obligations in markets worldwide. The MIS Other LOB primarily consists of the distribution of research and fixed income pricing services in the Asia-Pacific region as well as ICRA non-ratings revenue. | |||||||||||||||||||||||||||
The MA segment develops a wide range of products and services that support the risk management activities of institutional participants in global financial markets. The MA segment consists of three LOBs – RD&A, ERS and PS. | |||||||||||||||||||||||||||
In July 2014, a subsidiary of the Company acquired WebEquity, a leading provider of cloud-based loan origination solutions for financial institutions. WebEquity is part of the MA reportable segment and its revenue is included in the ERS LOB. In October 2014, the Company acquired Lewtan, a leading provider of analytical tools and data for the global structured finance market. Lewtan is part of the MA reportable segment and its revenue is included in the RD&A LOB. | |||||||||||||||||||||||||||
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. The royalty rate charged by MIS approximates the fair value of the aforementioned content, data and products and is generally based on comparable market transactions. Also, revenue for MA and expenses for MIS include an intersegment fee charged to MIS from MA for certain MA products and services utilized in MIS’s ratings process. These fees charged by MA are generally equal to the costs incurred by MA to produce these products and services. Additionally, overhead costs and corporate expenses of the Company which exclusively benefit only one segment, are fully charged to that segment. Overhead costs and corporate expenses of the Company which benefit both segments 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 resources and information technology. “Eliminations” in the table below represent intersegment revenue/expense | |||||||||||||||||||||||||||
Moody’s does not report the Company’s assets by reportable segment as this metric is not used by the chief operating decision maker to allocate resources to the segments. Consequently, it is not practical to show assets by reportable segment. | |||||||||||||||||||||||||||
Financial Information by Segment | |||||||||||||||||||||||||||
The table below shows revenue, Adjusted Operating Income and operating income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
MIS | MA | Eliminations | Consolidated | MIS | MA | Eliminations | Consolidated | ||||||||||||||||||||
Revenue | $ | 624.6 | $ | 266.6 | $ | -25.6 | $ | 865.6 | $ | 550.6 | $ | 241.4 | $ | -24.8 | $ | 767.2 | |||||||||||
Operating, SG&A | 281.3 | 210 | -25.6 | 465.7 | 248.6 | 187.3 | -24.8 | 411.1 | |||||||||||||||||||
Adjusted Operating Income | 343.3 | 56.6 | - | 399.9 | 302 | 54.1 | - | 356.1 | |||||||||||||||||||
Less: | |||||||||||||||||||||||||||
Depreciation and amortization | 16 | 12.6 | - | 28.6 | 11.4 | 11.7 | - | 23.1 | |||||||||||||||||||
Operating income | $ | 327.3 | $ | 44 | $ | - | $ | 371.3 | $ | 290.6 | $ | 42.4 | $ | - | $ | 333 | |||||||||||
MIS and MA Revenue by Line of Business | |||||||||||||||||||||||||||
The table below presents revenue by LOB within each reportable segment: | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
MIS: | |||||||||||||||||||||||||||
Corporate finance (CFG) | $ | 298.7 | $ | 264.4 | |||||||||||||||||||||||
Structured finance (SFG) | 101.3 | 95.3 | |||||||||||||||||||||||||
Financial institutions (FIG) | 93.8 | 85.4 | |||||||||||||||||||||||||
Public, project and infrastructure finance (PPIF) | 100.7 | 80.7 | |||||||||||||||||||||||||
Total ratings revenue | 594.5 | 525.8 | |||||||||||||||||||||||||
MIS Other | 7.8 | 3.3 | |||||||||||||||||||||||||
Total external revenue | 602.3 | 529.1 | |||||||||||||||||||||||||
Intersegment royalty | 22.3 | 21.5 | |||||||||||||||||||||||||
Total | 624.6 | 550.6 | |||||||||||||||||||||||||
MA: | |||||||||||||||||||||||||||
Research, data and analytics (RD&A) | 149.6 | 137.6 | |||||||||||||||||||||||||
Enterprise risk solutions (ERS) | 77.1 | 59.8 | |||||||||||||||||||||||||
Professional services (PS) | 36.6 | 40.7 | |||||||||||||||||||||||||
Total external revenue | 263.3 | 238.1 | |||||||||||||||||||||||||
Intersegment revenue | 3.3 | 3.3 | |||||||||||||||||||||||||
Total | 266.6 | 241.4 | |||||||||||||||||||||||||
Eliminations | -25.6 | -24.8 | |||||||||||||||||||||||||
Total MCO | $ | 865.6 | $ | 767.2 | |||||||||||||||||||||||
Consolidated Revenue Information by Geographic Area: | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
United States | $ | 499.8 | $ | 425.6 | |||||||||||||||||||||||
International: | |||||||||||||||||||||||||||
EMEA | 227.6 | 220.6 | |||||||||||||||||||||||||
Asia-Pacific | 86.1 | 69.9 | |||||||||||||||||||||||||
Americas | 52.1 | 51.1 | |||||||||||||||||||||||||
Total International | 365.8 | 341.6 | |||||||||||||||||||||||||
Total | $ | 865.6 | $ | 767.2 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Financial Information by Segment | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
MIS | MA | Eliminations | Consolidated | MIS | MA | Eliminations | Consolidated | ||||||||||||||||||||
Revenue | $ | 624.6 | $ | 266.6 | $ | -25.6 | $ | 865.6 | $ | 550.6 | $ | 241.4 | $ | -24.8 | $ | 767.2 | |||||||||||
Operating, SG&A | 281.3 | 210 | -25.6 | 465.7 | 248.6 | 187.3 | -24.8 | 411.1 | |||||||||||||||||||
Adjusted Operating Income | 343.3 | 56.6 | - | 399.9 | 302 | 54.1 | - | 356.1 | |||||||||||||||||||
Less: | |||||||||||||||||||||||||||
Depreciation and amortization | 16 | 12.6 | - | 28.6 | 11.4 | 11.7 | - | 23.1 | |||||||||||||||||||
Operating income | $ | 327.3 | $ | 44 | $ | - | $ | 371.3 | $ | 290.6 | $ | 42.4 | $ | - | $ | 333 | |||||||||||
Revenue by Line of Business within Each Reportable Segment | Three Months Ended March 31, | ||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
MIS: | |||||||||||||||||||||||||||
Corporate finance (CFG) | $ | 298.7 | $ | 264.4 | |||||||||||||||||||||||
Structured finance (SFG) | 101.3 | 95.3 | |||||||||||||||||||||||||
Financial institutions (FIG) | 93.8 | 85.4 | |||||||||||||||||||||||||
Public, project and infrastructure finance (PPIF) | 100.7 | 80.7 | |||||||||||||||||||||||||
Total ratings revenue | 594.5 | 525.8 | |||||||||||||||||||||||||
MIS Other | 7.8 | 3.3 | |||||||||||||||||||||||||
Total external revenue | 602.3 | 529.1 | |||||||||||||||||||||||||
Intersegment royalty | 22.3 | 21.5 | |||||||||||||||||||||||||
Total | 624.6 | 550.6 | |||||||||||||||||||||||||
MA: | |||||||||||||||||||||||||||
Research, data and analytics (RD&A) | 149.6 | 137.6 | |||||||||||||||||||||||||
Enterprise risk solutions (ERS) | 77.1 | 59.8 | |||||||||||||||||||||||||
Professional services (PS) | 36.6 | 40.7 | |||||||||||||||||||||||||
Total external revenue | 263.3 | 238.1 | |||||||||||||||||||||||||
Intersegment revenue | 3.3 | 3.3 | |||||||||||||||||||||||||
Total | 266.6 | 241.4 | |||||||||||||||||||||||||
Eliminations | -25.6 | -24.8 | |||||||||||||||||||||||||
Total MCO | $ | 865.6 | $ | 767.2 | |||||||||||||||||||||||
Consolidated Revenue Information by Geographic Area | Consolidated Revenue Information by Geographic Area: | ||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
United States | $ | 499.8 | $ | 425.6 | |||||||||||||||||||||||
International: | |||||||||||||||||||||||||||
EMEA | 227.6 | 220.6 | |||||||||||||||||||||||||
Asia-Pacific | 86.1 | 69.9 | |||||||||||||||||||||||||
Americas | 52.1 | 51.1 | |||||||||||||||||||||||||
Total International | 365.8 | 341.6 | |||||||||||||||||||||||||
Total | $ | 865.6 | $ | 767.2 |
Financial_Information_by_Segme
Financial Information by Segment (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Intersegment Revenue | $865.60 | $767.20 |
Operating, SG&A | 465.7 | 411.1 |
Adjusted Operating Income | 399.9 | 356.1 |
Depreciation and amortization | 28.6 | 23.1 |
Operating Income | 371.3 | 333 |
Moodys Investors Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue | 624.6 | 550.6 |
Operating, SG&A | 281.3 | 248.6 |
Adjusted Operating Income | 343.3 | 302 |
Depreciation and amortization | 16 | 11.4 |
Operating Income | 327.3 | 290.6 |
Moodys Analytics [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue | 266.6 | 241.4 |
Operating, SG&A | 210 | 187.3 |
Adjusted Operating Income | 56.6 | 54.1 |
Depreciation and amortization | 12.6 | 11.7 |
Operating Income | 44 | 42.4 |
Intersegment Elimination [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue | -25.6 | -24.8 |
Operating, SG&A | -25.6 | -24.8 |
Adjusted Operating Income | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Operating Income | $0 | $0 |
Revenue_by_Line_of_Business_wi
Revenue by Line of Business within Each Reportable Segment (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Revenues | $865.60 | $767.20 |
Intersegment Elimination [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | -25.6 | -24.8 |
Moodys Investors Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 624.6 | 550.6 |
Moodys Investors Service [Member] | Corporate Finance [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 298.7 | 264.4 |
Moodys Investors Service [Member] | Structured Finance [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 101.3 | 95.3 |
Moodys Investors Service [Member] | Financial Institutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 93.8 | 85.4 |
Moodys Investors Service [Member] | Public Project And Infrastructure Finance [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 100.7 | 80.7 |
Moodys Investors Service [Member] | MIS Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 3.3 | 7.8 |
Moodys Investors Service [Member] | External Revenues | ||
Segment Reporting Information [Line Items] | ||
Revenues | 602.3 | 529.1 |
Moodys Investors Service [Member] | Intersegment Elimination [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 22.3 | 21.5 |
Moodys Analytics [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 266.6 | 241.4 |
Moodys Analytics [Member] | Research Data And Analytics [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 149.6 | 137.6 |
Moodys Analytics [Member] | Enterprise Risk Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 77.1 | 59.8 |
Moodys Analytics [Member] | Professional Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 36.6 | 40.7 |
Moodys Analytics [Member] | External Revenues | ||
Segment Reporting Information [Line Items] | ||
Revenues | 263.3 | 238.1 |
Moodys Analytics [Member] | Intersegment Elimination [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $3.30 | $3.30 |
Consolidated_Revenue_Informati
Consolidated Revenue Information by Geographic Area (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Intersegment Revenue | $865.60 | $767.20 |
U S | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue | 499.8 | 425.6 |
International Regions [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue | 365.8 | 341.6 |
International Regions [Member] | Europe Middle East And Africa [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue | 227.6 | 220.6 |
International Regions [Member] | Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue | 86.1 | 69.9 |
International Regions [Member] | Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment Revenue | $52.10 | $51.10 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | |
Operating Segments | 3 |
RECENTLY_ISSUED_ACCOUNTING_STA
RECENTLY ISSUED ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2015 | |
RECENTLY ISSUED ACCOUNTING STANDARDS | NOTE 16. RECENTLY ISSUED ACCOUNTING STANDARDS |
In April 2015, the FASB issued ASU No. 2015-05 “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement”. This ASU provides guidance on accounting for fees paid by a customer in a cloud computing arrangement. In accordance with the ASU, a cloud computing arrangement that contains a software license should be accounted for consistently with the acquisition of other software licenses. If no software license is present in the contract, the entity should account for the arrangement as a service contract. The Company can elect to apply this ASU either retrospectively or prospectively effective for annual and interim reporting periods beginning after December 15, 2015, and early adoption is permitted. The Company is currently evaluating the impact that adoption of this update will have on its consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. This ASU simplifies the presentation of debt issuance costs in financial statements and requires a company to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization costs will continue to be reported as interest expense. The ASU is effective retrospectively for annual and interim reporting periods beginning after December 15, 2015, and early adoption is permitted. The adoption of this ASU will only impact the presentation of debt issuance costs in the Company’s consolidated balance sheets. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”. This ASU outlines a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The Company is currently evaluating its adoption options and the impact that adoption of this update will have on its consolidated financial statements. Currently, the Company believes this ASU will have an impact on: i) the capitalization of certain contract implementation costs for its ERS business; ii) the accounting for certain ratings monitoring fees received in advance of service being rendered; iii) the accounting for certain license and maintenance revenue in MA; iv) the accounting for certain ERS revenue arrangements where VSOE is not available and v) the accounting for contract acquisition costs. In April 2015, the FASB proposed to defer the effective date of the ASU for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted up to the original effective date of December 15, 2016. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2015 | |
SUBSEQUENT EVENTS | NOTE 17. SUBSEQUENT EVENTS |
On April 14, 2015, the Board approved the declaration of a quarterly dividend of $0.34 per share of Moody’s common stock, payable on June 10, 2015 to shareholders of record at the close of business on May 20, 2015. | |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Dividends Payable [Line Items] | ||
Dividend declared, per share | 0.34 | $0.34 |
Dividend Declared [Member] | ||
Dividends Payable [Line Items] | ||
Dividend declared, declaration date | 14-Apr-15 | |
Dividend declared, payable date | 10-Jun-15 | |
Dividend declared, record date | 20-May-15 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Supplemental Balance Sheet Information [Line Items] | ||||
Total accumulated other comprehensive loss | ($322.40) | ($235.20) | ($61.30) | ($54.60) |