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REVENUES (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

The following tables summarize the split between transaction and relationship revenue. In the MIS segment, excluding MIS Other, transaction revenue represents the initial rating of a new debt issuance as well as other one-time fees while relationship revenue represents the recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations, as well as revenue from programs such as commercial paper, medium-term notes and shelf registrations. In MIS Other, transaction revenue represents revenue from professional services and outsourcing engagements and relationship revenue represents subscription-based revenues. In the MA segment, relationship revenue represents subscription-based revenues and software maintenance revenue. Transaction revenue in MA represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, training and certification services, and outsourced research and analytical engagements.



	Three Months Ended September 30,
	2019										2018
	Transaction				Relationship			Total			Transaction				Relationship			Total
Corporate Finance	$	281.8			$	110.2		$	392.0		$	199.4			$	107.9		$	307.3
	72		%		28		%	100		%	65		%		35		%	100		%
Structured Finance	$	58.4			$	47.0		$	105.4		$	73.5			$	40.7		$	114.2
	55		%		45		%	100		%	64		%		36		%	100		%
Financial Institutions	$	55.7			$	64.8		$	120.5		$	56.2			$	63.3		$	119.5
	46		%		54		%	100		%	47		%		53		%	100		%
Public, Project and Infrastructure Finance	$	82.1			$	37.7		$	119.8		$	60.9			$	38.1		$	99.0
	69		%		31		%	100		%	62		%		38		%	100		%
MIS Other	$	0.6			$	8.3		$	8.9		$	0.5			$	4.3		$	4.8
	7		%		93		%	100		%	10		%		90		%	100		%
Total MIS	$	478.6			$	268.0		$	746.6		$	390.5			$	254.3		$	644.8
	64		%		36		%	100		%	61		%		39		%	100		%
Moody's Analytics	$	78.5		⁽¹⁾	$	415.4		$	493.9		$	70.6		⁽¹⁾	$	365.4		$	436.0
	16		%		84		%	100		%	16		%		84		%	100		%
Total Moody's Corporation	$	557.1			$	683.4		$	1,240.5		$	461.1			$	619.7		$	1,080.8
	45		%		55		%	100		%	43		%		57		%	100		%



	Nine Months Ended September 30,
	2019										2018
	Transaction				Relationship			Total			Transaction				Relationship			Total
Corporate Finance	$	807.7			$	327.1		$	1,134.8		$	767.3			$	320.6		$	1,087.9
	71		%		29		%	100		%	71		%		29		%	100		%
Structured Finance	$	183.9			$	134.3		$	318.2		$	233.3			$	126.9		$	360.2
	58		%		42		%	100		%	65		%		35		%	100		%
Financial Institutions	$	164.8			$	196.7		$	361.5		$	162.4			$	192.0		$	354.4
	46		%		54		%	100		%	46		%		54		%	100		%
Public, Project and Infrastructure Finance	$	208.2			$	112.9		$	321.1		$	184.9			$	115.4		$	300.3
	65		%		35		%	100		%	62		%		38		%	100		%
MIS Other	$	1.5			$	18.0		$	19.5		$	1.5			$	12.7		$	14.2
	8		%		92		%	100		%	11		%		89		%	100		%
Total MIS	$	1,366.1			$	789.0		$	2,155.1		$	1,349.4			$	767.6		$	2,117.0
	63		%		37		%	100		%	64		%		36		%	100		%
Moody's Analytics	$	219.2		⁽¹⁾	$	1,221.9		$	1,441.1		$	198.3		⁽¹⁾	$	1,067.3		$	1,265.6
	15		%		85		%	100		%	16		%		84		%	100		%
Total Moody's Corporation	$	1,585.3			$	2,010.9		$	3,596.2		$	1,547.7			$	1,834.9		$	3,382.6
	44		%		56		%	100		%	46		%		54		%	100		%

⁽¹⁾ Revenue from software implementation services and risk management advisory projects, while classified by management as transactional revenue, is recognized over time under the New Revenue Accounting Standard (please also refer to the following table).

The following table presents the timing of revenue recognition:



	Three Months Ended September 30, 2019						Nine Months Ended September 30, 2019
	MIS		MA		Total		MIS		MA		Total
Revenue recognized at a point in time	$	478.6	$	30.7	$	509.3	$	1,366.1	$	82.8	$	1,448.9
Revenue recognized over time	268.0		463.2		731.2		789.0		1,358.3		2,147.3
Total	$	746.6	$	493.9	$	1,240.5	$	2,155.1	$	1,441.1	$	3,596.2



	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
	MIS		MA		Total		MIS		MA		Total
Revenue recognized at a point in time	$	390.5	$	19.5	$	410.0	$	1,349.4	$	49.0	$	1,398.4
Revenue recognized over time	254.3		416.5		670.8		767.6		1,216.6		1,984.2
Total	$	644.8	$	436.0	$	1,080.8	$	2,117.0	$	1,265.6	$	3,382.6

The following table presents the Company’s revenues disaggregated by LOB:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
MIS:
Corporate finance (CFG) ⁽¹⁾
Investment-grade	$	105.8		$	54.7		$	299.0		$	214.3
High-yield	56.9			39.1			182.4			155.7
Bank loans	89.3			78.4			245.4			309.8
Other accounts ⁽²⁾	140.0			135.1			408.0			408.1
Total CFG	392.0			307.3			1,134.8			1,087.9
Structured finance (SFG) ⁽¹⁾
Asset-backed securities	25.0			24.6			73.8			80.7
RMBS	22.1			23.7			69.7			74.8
CMBS	17.5			14.7			55.6			54.2
Structured credit	40.0			50.7			116.2			148.6
Other accounts	0.8			0.5			2.9			1.9
Total SFG	105.4			114.2			318.2			360.2
Financial institutions (FIG)
Banking	79.9			72.9			244.1			227.2
Insurance	31.3			37.7			88.4			98.9
Managed investments	6.5			5.5			20.0			18.4
Other accounts	2.8			3.4			9.0			9.9
Total FIG	120.5			119.5			361.5			354.4
Public, project and infrastructure finance (PPIF)
Public finance / sovereign	57.9			45.3			157.1			143.9
Project and infrastructure	61.9			53.7			164.0			156.4
Total PPIF	119.8			99.0			321.1			300.3
Total ratings revenue	737.7			640.0			2,135.6			2,102.8
MIS Other	8.9			4.8			19.5			14.2
Total external revenue	746.6			644.8			2,155.1			2,117.0
Intersegment royalty	34.3			31.6			99.6			92.0
Total MIS	780.9			676.4			2,254.7			2,209.0
MA:
Research, data and analytics (RD&A) ⁽³⁾	317.5			280.3			940.5			823.3
Enterprise risk solutions (ERS)⁽³⁾	133.3			115.3			372.9			327.0
Professional services (PS)	43.1			40.4			127.7			115.3
Total external revenue	493.9			436.0			1,441.1			1,265.6
Intersegment revenue	2.1			2.6			6.7			10.0
Total MA	496.0			438.6			1,447.8			1,275.6
Eliminations	(36.4		)	(34.2		)	(106.3		)	(102.0		)
Total MCO	$	1,240.5		$	1,080.8		$	3,596.2		$	3,382.6

⁽¹⁾Pursuant to certain organizational realignments in 2019, MIS now reports revenue from REITs, which was previously classified in the SFG LOB, as a component of the CFG LOB. The amounts reclassified were not material and prior year revenue by LOB has been reclassified to conform to this new presentation.

⁽²⁾ Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue.

⁽³⁾ Pursuant to organizational/product realignments in 2019, revenue relating to the Bureau van Dijk FACT product, a credit assessment and origination software solution, is now reported in the ERS LOB. This revenue was previously reported in the RD&A LOB. Prior year revenue by LOB has been reclassified to conform to this new presentation, and the amounts reclassified were not material.

The following table presents the Company’s revenues disaggregated by LOB and geographic area:



	Three Months Ended September 30, 2019						Three Months Ended September 30, 2018
	U.S.		Non-U.S		Total		U.S.		Non-U.S		Total
MIS:
Corporate finance (CFG)⁽¹⁾	$	258.9	$	133.1	$	392.0	$	194.7	$	112.6	$	307.3
Structured finance (SFG) ⁽¹⁾	67.8		37.6		105.4		70.6		43.6		114.2
Financial institutions (FIG)	53.7		66.8		120.5		59.8		59.7		119.5
Public, project and infrastructure finance (PPIF)	72.8		47.0		119.8		59.4		39.6		99.0
Total ratings revenue	453.2		284.5		737.7		384.5		255.5		640.0
MIS Other	0.2		8.7		8.9		0.2		4.6		4.8
Total MIS	453.4		293.2		746.6		384.7		260.1		644.8
MA:
Research, data and analytics (RD&A) ⁽²⁾	139.8		177.7		317.5		116.7		163.6		280.3
Enterprise risk solutions (ERS)⁽²⁾	48.2		85.1		133.3		43.0		72.3		115.3
Professional services (PS)	18.2		24.9		43.1		15.2		25.2		40.4
Total MA	206.2		287.7		493.9		174.9		261.1		436.0
Total MCO	$	659.6	$	580.9	$	1,240.5	$	559.6	$	521.2	$	1,080.8



	Nine Months Ended September 30, 2019						Nine Months Ended September 30, 2018
	U.S.		Non-U.S		Total		U.S.		Non-U.S		Total
MIS:
Corporate finance (CFG)⁽¹⁾	$	744.1	$	390.7	$	1,134.8	$	707.2	$	380.7	$	1,087.9
Structured finance (SFG) ⁽¹⁾	201.9		116.3		318.2		225.0		135.2		360.2
Financial institutions (FIG)	151.9		209.6		361.5		162.7		191.7		354.4
Public, project and infrastructure finance (PPIF)	202.4		118.7		321.1		173.9		126.4		300.3
Total ratings revenue	1,300.3		835.3		2,135.6		1,268.8		834.0		2,102.8
MIS Other	0.5		19.0		19.5		0.5		13.7		14.2
Total MIS	1,300.8		854.3		2,155.1		1,269.3		847.7		2,117.0
MA:
Research, data and analytics (RD&A) ⁽²⁾	412.4		528.1		940.5		347.5		475.8		823.3
Enterprise risk solutions (ERS)⁽²⁾	142.7		230.2		372.9		124.1		202.9		327.0
Professional services (PS)	53.7		74.0		127.7		41.8		73.5		115.3
Total MA	608.8		832.3		1,441.1		513.4		752.2		1,265.6
Total MCO	$	1,909.6	$	1,686.6	$	3,596.2	$	1,782.7	$	1,599.9	$	3,382.6

⁽¹⁾ Pursuant to certain organizational realignments in 2019, MIS now reports revenue from REITs, which was previously classified in the SFG LOB, as a component of the CFG LOB. The amounts reclassified were not material and prior year revenue by LOB has been reclassified to conform to this new presentation.

⁽²⁾Pursuant to organizational/product realignments in 2019, revenue relating to the Bureau van Dijk FACT product, a credit assessment and origination software solution, is now reported in the ERS LOB. This revenue was previously reported in the RD&A LOB. Prior year revenue by LOB has been reclassified to conform to this new presentation, and the amounts reclassified were not material.

Company's Reportable Segment Revenues Disaggregated by Segment and Geographic Region

The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
MIS:
U.S.	$	453.4	$	384.7	$	1,300.8	$	1,269.3
Non-U.S.:
EMEA	174.9		165.3		501.7		527.5
Asia-Pacific	78.9		72.7		241.7		224.9
Americas	39.4		22.1		110.9		95.3
Total Non-U.S.	293.2		260.1		854.3		847.7
Total MIS	746.6		644.8		2,155.1		2,117.0
MA:
U.S.	206.2		174.9		608.8		513.4
Non-U.S.:
EMEA	186.6		179.2		555.1		520.4
Asia-Pacific	63.5		50.3		173.7		142.0
Americas	37.6		31.6		103.5		89.8
Total Non-U.S.	287.7		261.1		832.3		752.2
Total MA	493.9		436.0		1,441.1		1,265.6
Total MCO	$	1,240.5	$	1,080.8	$	3,596.2	$	3,382.6

Schedule of Changes in the Deferred Revenue Balances



	Three Months Ended September 30, 2018
	MIS			MA			Total
Balance at June 30, 2018	$	377.5		$	609.0		$	986.5
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(127.4		)	(317.0		)	(444.4		)
Increases due to amounts billable excluding amounts recognized as revenue during the period	101.6			251.9			353.5
Effect of exchange rate changes	1.1			(1.3		)	(0.2		)
Total changes in deferred revenue	(24.7		)	(66.4		)	(91.1		)
Balance at September 30, 2018	$	352.8		$	542.6		$	895.4



	Nine Months Ended September 30, 2018
	MIS			MA			Total
Balance at January 1, 2018 (after New Revenue Accounting Standard transition adjustment)	$	334.7		$	611.6		$	946.3
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(196.2		)	(608.5		)	(804.7		)
Increases due to amounts billable excluding amounts recognized as revenue during the period	217.6			551.3			768.9
Effect of exchange rate changes	(3.3		)	(11.8		)	(15.1		)
Total changes in deferred revenue	18.1			(69.0		)	(50.9		)
Balance at September 30, 2018	$	352.8		$	542.6		$	895.4
Deferred revenue - current	$	233.9		$	537.6		771.5
Deferred revenue - noncurrent	$	118.9		$	5.0		123.9

Significant changes in the deferred revenue balances during the three and nine months ended September 30, 2019 are as follows:



	Three Months Ended September 30, 2019
	MIS			MA			Total
Balance at June 30, 2019	$	376.0		$	694.8		$	1,070.8
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(110.8		)	(343.8		)	(454.6		)
Increases due to amounts billable excluding amounts recognized as revenue during the period	82.0			290.1			372.1
Effect of exchange rate changes	(3.7		)	(13.9		)	(17.6		)
Total changes in deferred revenue	(32.5		)	(67.6		)	(100.1		)
Balance at September 30, 2019	$	343.5		$	627.2		$	970.7



	Nine Months Ended September 30, 2019
	MIS			MA			Total
Balance at January 1, 2019	$	325.4		$	750.3		$	1,075.7
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(190.8		)	(687.4		)	(878.2		)
Increases due to amounts billable excluding amounts recognized as revenue during the period	211.6			576.6			788.2
Amount included in liabilities reclassified as held for sale	—			(2.7		)	(2.7		)
Effect of exchange rate changes	(2.7		)	(9.6		)	(12.3		)
Total changes in deferred revenue	18.1			(123.1		)	(105.0		)
Balance at September 30, 2019	$	343.5		$	627.2		$	970.7
Deferred revenue - current	$	233.2		$	622.5		$	855.7
Deferred revenue - noncurrent	$	110.3		$	4.7		$	115.0

Schedule of Expected Recognition Period for the Remaining Performance Obligations

The following tables include the expected recognition period for the remaining performance obligations for each reportable segment as of September 30, 2019:



MIS
Total		Less than 1 year		1 - 5 years		6 - 10 Years		11 - 15 years		16-20 years		Over 20 Years
$	146.8	$	24.3	$	69.9	$	37.9	$	5.8	$	4.0	$	4.9



MA
Total		Less than 1 Year		1 - 2 Years		Over 2 Years
$	1,582.8	$	1,125.6	$	325.4	$	131.8