
	Three Months Ended March 31,
	2020		2019
MIS:
Corporate finance (CFG)
Investment-grade	$	144	$	97
High-yield	75		57
Bank loans	89		73
Other accounts ⁽¹⁾	145		128
Total CFG	453		355
Structured finance (SFG)
Asset-backed securities	22		23
RMBS	27		24
CMBS	17		18
Structured credit	29		35
Other accounts	1		1
Total SFG	96		101
Financial institutions (FIG)
Banking	86		80
Insurance	30		29
Managed investments	6		4
Other accounts	3		3
Total FIG	125		116
Public, project and infrastructure finance (PPIF)
Public finance / sovereign	57		46
Project and infrastructure	52		47
Total PPIF	109		93
Total ratings revenue	783		665
MIS Other	11		5
Total external revenue	794		670
Intersegment royalty	37		32
Total MIS	831		702
MA:
Research, data and analytics (RD&A)	358		308
Enterprise risk solutions (ERS)	138		122
Professional services (PS) ⁽²⁾	—		42
Total external revenue	496		472
Intersegment revenue	2		2
Total MA	498		474
Eliminations	(39)		(34)
Total MCO	$	1,290	$	1,142

⁽¹⁾ 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.

⁽²⁾ Subsequent to the divestiture of MAKS in 2019, revenue from the MALS reporting unit, which previous to 2020 was reported in the PS LOB, will now be reported as part of the RD&A LOB. Prior periods have not been reclassified as the amounts were not material.


	Three Months Ended March 31, 2020										Three Months Ended March 31, 2019
	U.S.		Non-U.S		Total		U.S.		Non-U.S		Total
MIS:
Corporate finance (CFG)	$	314	$	139	$	453	$	243	$	112	$	355
Structured finance (SFG)	61		35		96		62		39		101
Financial institutions (FIG)	60		65		125		46		70		116
Public, project and infrastructure finance (PPIF)	68		41		109		60		33		93
Total ratings revenue	503		280		783		411		254		665
MIS Other	—		11		11		—		5		5
Total MIS	503		291		794		411		259		670
MA:
Research, data and analytics (RD&A)	158		200		358		135		173		308
Enterprise risk solutions (ERS)	53		85		138		48		74		122
Professional services (PS) ⁽¹⁾	—		—		—		18		24		42
Total MA	211		285		496		201		271		472
Total MCO	$	714	$	576	$	1,290	$	612	$	530	$	1,142

⁽¹⁾Subsequent to the divestiture of MAKS in 2019, the RD&A LOB now includes revenue from Moody's Analytics Learning Solutions (MALS) beginning in the first quarter of 2020. MALS revenue was previously reported as part of the PS LOB and prior year revenue by LOB has not been reclassified as the amounts were not material.


	Three Months Ended March 31,
	2020		2019
MIS:
U.S.	$	503	$	411
Non-U.S.:
EMEA	171		149
Asia-Pacific	81		79
Americas	39		31
Total Non-U.S.	291		259
Total MIS	794		670
MA:
U.S.	211		201
Non-U.S.:
EMEA	192		184
Asia-Pacific	55		53
Americas	38		34
Total Non-U.S.	285		271
Total MA	496		472
Total MCO	$	1,290	$	1,142

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 March 31,
	2020																	2019
	Transaction				Relationship			Total			Transaction				Relationship			Total
Corporate Finance	$	338			$	115		$	453		$	249			$	106		$	355
	75		%		25		%	100		%	70		%		30		%	100		%
Structured Finance	$	50			$	46		$	96		$	57			$	44		$	101
	52		%		48		%	100		%	56		%		44		%	100		%
Financial Institutions	$	60			$	65		$	125		$	48			$	68		$	116
	48		%		52		%	100		%	41		%		59		%	100		%
Public, Project and Infrastructure Finance	$	69			$	40		$	109		$	55			$	38		$	93
	63		%		37		%	100		%	59		%		41		%	100		%
MIS Other	$	2			$	9		$	11		$	1			$	4		$	5
	18		%		82		%	100		%	20		%		80		%	100		%
Total MIS	$	519			$	275		$	794		$	410			$	260		$	670
	65		%		35		%	100		%	61		%		39		%	100		%
Research, data and analytics	$	18			$	340		$	358		$	5			$	303		$	308
	5		%		95		%	100		%	2		%		98		%	100		%
Enterprise risk solutions	$	32			$	106		$	138		$	24			$	98		$	122
	23		%		77		%	100		%	20		%		80		%	100		%
Professional services	$	—			$	—		$	—		$	42			$	—		$	42
	—		%		—		%	—		%	100		%		—		%	100		%
Total MA	$	50		⁽¹⁾	$	446		$	496		$	71		⁽¹⁾	$	401		$	472
	10		%		90		%	100		%	15		%		85		%	100		%
Total Moody's Corporation	$	569			$	721		$	1,290		$	481			$	661		$	1,142
	44		%		56		%	100		%	42		%		58		%	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).

At March 31, 2020 and December 31, 2019, accounts receivable, net included $404 million and $346 million, respectively, of unbilled receivables, net related to the MIS segment. Certain MIS arrangements contain contractual terms whereby the customers are billed in arrears for annual monitoring services, requiring revenue to be accrued as an unbilled receivable as such services are provided.

In addition, for certain MA arrangements, the timing of when the Company has the unconditional right to consideration and recognizes revenue occurs prior to invoicing the customer. Consequently, at March 31, 2020 and December 31, 2019, accounts receivable, net included $59 million and $53 million, respectively, of unbilled receivables, net related to the MA segment.

The Company recognizes deferred revenue when a contract requires a customer to pay consideration to the Company in advance of when revenue related to that contract is recognized. This deferred revenue is relieved when the Company satisfies the related performance obligation and revenue is recognized.


	Three Months Ended March 31, 2020
	MIS		MA		Total
Balance at January 1, 2020	$	322	$	840	$	1,162
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(99)		(336)		(435)
Increases due to amounts billable excluding amounts recognized as revenue during the period	161		343		504
Increases due to RDC acquisition during the period	—		20		20
Effect of exchange rate changes	(5)		(24)		(29)
Total changes in deferred revenue	57		3		60
Balance at March 31, 2020	$	379	$	843	$	1,222
Deferred revenue - current	$	275	$	838	$	1,113
Deferred revenue - noncurrent	$	104	$	5	$	109


	Three Months Ended March 31, 2019
	MIS		MA		Total
Balance at January 1, 2019	$	326	$	750	$	1,076
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(93)		(307)		(400)
Increases due to amounts billable excluding amounts recognized as revenue during the period	155		347		502
Effect of exchange rate changes	—		5		5
Total changes in deferred revenue	62		45		107
Balance at March 31, 2019	$	388	$	795	$	1,183
Deferred revenue - current	$	271	$	791	1,062
Deferred revenue - noncurrent	$	117	$	4	121

The increase in deferred revenue during both the three months ended March 31, 2020 and 2019 is primarily due to the significant portion of contract renewals that occur during the first quarter within both segments.

Remaining performance obligations in the MIS segment largely reflect deferred revenue related to monitoring fees for certain structured finance products, primarily CMBS, where the issuers can elect to pay the monitoring fees for the life of the security in advance. As of March 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $136 million. The Company expects to recognize into revenue approximately 20% of this balance within one year, approximately 50% of this balance between one to five years and the remaining amount thereafter. With respect to the remaining performance obligations for the MIS segment, the Company has applied a practical expedient set forth in ASC Topic 606 permitting the omission from the amounts stated above relating to unsatisfied performance obligations for contracts with an original expected length of one year or less.

Remaining performance obligations in the MA segment include both amounts recorded as deferred revenue on the balance sheet as of March 31, 2020 as well as amounts not yet invoiced to customers as of March 31, 2020, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription based products. As of March 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $2.0 billion. The Company expects to recognize into revenue approximately 70% of this balance within one year, approximately 20% of this balance between one to two years and the remaining amount thereafter.