REVENUES (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

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


	Year Ended December 31,
	2019		2018		2017 ⁽¹⁾
MIS:
Corporate finance (CFG)⁽³⁾
Investment-grade	$	379	$	271	$	335
High-yield	258		175		254
Bank loans	313		379		351
Other accounts (CFG) ⁽²⁾	547		554		508
Total CFG	1,497		1,379		1,448
Structured finance (SFG)⁽³⁾
Asset-backed securities	99		107		97
RMBS	95		98		89
CMBS	81		78		87
Structured credit	148		196		165
Other accounts (SFG)	4		2		2
Total SFG	427		481		440
Financial institutions (FIG)
Banking	320		290		300
Insurance	119		114		102
Managed investments	25		25		22
Other accounts (FIG)	12		13		12
Total FIG	476		442		436
Public, project and infrastructure finance (PPIF)
Public finance / sovereign	222		185		218
Project and infrastructure	224		206		213
Total PPIF	446		391		431
Total ratings revenue	2,846		2,693		2,755
MIS Other	29		19		19
Total external revenue	2,875		2,712		2,774
Intersegment royalty	134		124		112
Total MIS	3,009		2,836		2,886
MA:
Research, data and analytics (RD&A)⁽⁴⁾	1,273		1,121		826
Enterprise risk solutions (ERS)⁽⁴⁾	522		451		455
Professional services (PS)	159		159		149
Total external revenue	1,954		1,731		1,430
Intersegment revenue	9		12		16
Total MA	1,963		1,743		1,446
Eliminations	(143)		(136)		(128)
Total MCO	$	4,829	$	4,443	$	4,204

⁽¹⁾Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.

⁽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 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.

⁽⁴⁾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:


	Year Ended December 31, 2019										Year Ended December 31, 2018								Year Ended December 31, 2017⁽¹⁾
	U.S.		Non-U.S.		Total		U.S.		Non-U.S.		Total		U.S.		Non-U.S.		Total
MIS:
Corporate finance⁽²⁾	$	968	$	529	$	1,497	$	894	$	485	$	1,379	$	961	$	487	$	1,448
Structured finance⁽²⁾	270		157		427		301		180		481		288		152		440
Financial institutions	200		276		476		194		248		442		186		250		436
Public, project and infrastructure finance	282		164		446		229		162		391		266		165		431
Total ratings revenue	1,720		1,126		2,846		1,618		1,075		2,693		1,701		1,054		2,755
MIS Other	1		28		29		1		18		19		1		18		19
Total MIS	1,721		1,154		2,875		1,619		1,093		2,712		1,702		1,072		2,774
MA:
Research, data and analytics ⁽³⁾	558		715		1,273		481		640		1,121		424		402		826
Enterprise risk solutions ⁽³⁾	201		321		522		170		281		451		167		288		455
Professional services	64		95		159		60		99		159		55		94		149
Total MA	823		1,131		1,954		711		1,020		1,731		646		784		1,430
Total MCO	$	2,544	$	2,285	$	4,829	$	2,330	$	2,113	$	4,443	$	2,348	$	1,856	$	4,204

⁽¹⁾Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.

⁽²⁾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 years revenue by LOB has been reclassified to conform to this new presentation.

⁽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 years 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 reportable segment revenues disaggregated by segment and geographic region:


	Year Ended December 31,
	2019		2018		2017
MIS:
U.S.	$	1,721	$	1,619	$	1,702
Non-U.S.:
EMEA	686		669		638
Asia-Pacific	320		300		292
Americas	148		124		142
Total Non-U.S.	1,154		1,093		1,072
Total MIS	2,875		2,712		2,774
MA:
U.S.	823		711		646
Non-U.S.:
EMEA	760		708		494
Asia-Pacific	231		193		179
Americas	140		119		111
Total Non-U.S.	1,131		1,020		784
Total MA	1,954		1,731		1,430
Total MCO	$	4,829	$	4,443	$	4,204

The tables below 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.


	Year Ended December 31,
	2019															2018												2017 ⁽²⁾
	Transaction ⁽¹⁾			Relationship			Total			Transaction⁽¹⁾			Relationship			Total			Transaction⁽¹⁾			Relationship			Total
Corporate Finance	$	1,057		$	440		$	1,497		$	949		$	430		$	1,379		$	1,053		$	395		$	1,448
	71		%	29		%	100		%	69		%	31		%	100		%	73		%	27		%	100		%
Structured Finance	$	246		$	181		$	427		$	310		$	171		$	481		$	279		$	161		$	440
	58		%	42		%	100		%	64		%	36		%	100		%	63		%	37		%	100		%
Financial Institutions	$	212		$	264		$	476		$	187		$	255		$	442		$	195		$	241		$	436
	45		%	55		%	100		%	42		%	58		%	100		%	45		%	55		%	100		%
Public, Project and Infrastructure Finance	$	292		$	154		$	446		$	238		$	153		$	391		$	278		$	153		$	431
	65		%	35		%	100		%	61		%	39		%	100		%	65		%	35		%	100		%
MIS Other	$	2		$	27		$	29		$	2		$	17		$	19		$	3		$	16		$	19
	7		%	93		%	100		%	11		%	89		%	100		%	16		%	84		%	100		%
Total MIS	$	1,809		$	1,066		$	2,875		$	1,686		$	1,026		$	2,712		$	1,808		$	966		$	2,774
	63		%	37		%	100		%	62		%	38		%	100		%	65		%	35		%	100		%
Research, data and analytics	$	16		$	1,257		$	1,273		$	18		$	1,103		$	1,121		$	25		$	801		$	826
	1		%	99		%	100		%	2		%	98		%	100		%	3		%	97		%	100		%
Enterprise risk solutions	$	118		$	404		$	522		$	99		$	352		$	451		$	137		$	318		$	455
	23		%	77		%	100		%	22		%	78		%	100		%	30		%	70		%	100		%
Professional services	$	159		$	—		$	159		$	159		$	—		$	159		$	149		$	—		$	149
	100		%	—		%	100		%	100		%	—		%	100		%	100		%	—		%	100		%
Total MA	$	293		$	1,661		$	1,954		$	276		$	1,455		$	1,731		$	311		$	1,119		$	1,430
	15		%	85		%	100		%	16		%	84		%	100		%	22		%	78		%	100		%
Total Moody’s Corporation	$	2,102		$	2,727		$	4,829		$	1,962		$	2,481		$	4,443		$	2,119		$	2,085		$	4,204
	44		%	56		%	100		%	44		%	56		%	100		%	50		%	50		%	100		%

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

⁽²⁾ Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.

The following table presents the timing of revenue recognition:


	Year Ended December 31, 2019										Year Ended December 31, 2018
	MIS		MA		Total		MIS		MA		Total
Revenue recognized at a point in time	$	1,809	$	132	$	1,941	$	1,686	$	99	$	1,785
Revenue recognized over time	1,066		1,822		2,888		1,026		1,632		2,658
Total	$	2,875	$	1,954	$	4,829	$	2,712	$	1,731	$	4,443

Schedule of Changes in the Deferred Revenue Balances

Significant changes in the deferred revenue balances during the year ended December 31, 2019 are as follows:


	Year Ended December 31, 2019
	MIS		MA		Total
Balance at January 1, 2019	$	325	$	750	$	1,075
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(209)		(714)		(923)
Increases due to amounts billable excluding amounts recognized as revenue during the period	202		789		991
Increases due to acquisitions during the period	3		6		9
Effect of exchange rate changes	1		9		10
Total changes in deferred revenue	(3)		90		87
Balance at December 31, 2019	$	322	$	840	$	1,162
Deferred revenue - current	$	214	$	836	$	1,050
Deferred revenue - noncurrent	$	108	$	4	$	112

Significant changes in the deferred revenue balances during the year ended December 31, 2018 are as follows:


	Year Ended December 31, 2018
	MIS		MA		Total
Balance at January 1, 2018 (after New Revenue Accounting Standard transition adjustment)	$	334	$	612	$	946
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(218)		(590)		(808)
Increases due to amounts billable excluding amounts recognized as revenue during the period	216		730		946
Increases due to acquisitions during the period	—		16		16
Effect of exchange rate changes	(7)		(18)		(25)
Total changes in deferred revenue	(9)		138		129
Balance at December 31, 2018	$	325	$	750	$	1,075
Deferred revenue—current	$	207	$	746	$	953
Deferred revenue—noncurrent	$	118	$	4	$	122