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REVENUES
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenue by Category
The following table presents the Company’s revenues disaggregated by LOB:
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
MIS:
Corporate finance (CFG)
Investment-grade
$291  $96  $435  $193  
High-yield
99  69  174  126  
Bank loans
43  83  132  156  
Other accounts (1)
139  140  284  268  
Total CFG
572  388  1,025  743  
Structured finance (SFG)
Asset-backed securities
23  26  45  49  
RMBS
23  24  50  48  
CMBS
13  20  30  38  
Structured credit
21  41  50  76  
Other accounts
1  1  2  2  
Total SFG
81  112  177  213  
Financial institutions (FIG)
Banking
88  84  174  164  
Insurance
44  28  74  57  
Managed investments
8  10  14  14  
Other accounts
2  3  5  6  
Total FIG
142  125  267  241  
Public, project and infrastructure finance (PPIF)
Public finance / sovereign
64  53  121  99  
Project and infrastructure
69  55  121  102  
Total PPIF
133  108  242  201  
Total ratings revenue
928  733  1,711  1,398  
MIS Other
10  6  21  11  
Total external revenue
938  739  1,732  1,409  
Intersegment royalty
35  33  72  65  
Total MIS
973  772  1,804  1,474  
MA:
Research, data and analytics (RD&A) 366  315  724  623  
Enterprise risk solutions (ERS)
131  117  269  239  
Professional services (PS) (2)
—  43  —  85  
Total external revenue
497  475  993  947  
Intersegment revenue
2  3  4  5  
Total MA
499  478  997  952  
Eliminations
(37) (36) (76) (70) 
Total MCO
$1,435  $1,214  $2,725  $2,356  
(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, is now reported as part of the RD&A LOB. Prior periods have not been reclassified as the amounts were not material.
The following table presents the Company’s revenues disaggregated by LOB and geographic area:
Three Months Ended June 30, 2020Three Months Ended June 30, 2019
U.S.
Non-U.S
Total
U.S.
Non-U.S
Total
MIS:
Corporate finance (CFG)
$413  $159  $572  $242  $146  $388  
Structured finance (SFG)45  36  81  72  40  112  
Financial institutions (FIG)
70  72  142  52  73  125  
Public, project and infrastructure finance (PPIF)
87  46  133  69  39  108  
Total ratings revenue
615  313  928  435  298  733  
MIS Other1  9  10  1  5  6  
Total MIS
616  322  938  436  303  739  
MA:
Research, data and analytics (RD&A)167  199  366  138  177  315  
Enterprise risk solutions (ERS)
54  77  131  46  71  117  
Professional services (PS) (1)
—  —  —  18  25  43  
Total MA
221  276  497  202  273  475  
Total MCO
$837  $598  $1,435  $638  $576  $1,214  

Six Months Ended June 30, 2020Six Months Ended June 30, 2019
U.S.
Non-U.S
Total
U.S.
Non-U.S
Total
MIS:
Corporate finance (CFG)
$727  $298  $1,025  $485  $258  $743  
Structured finance (SFG) 106  71  177  134  79  213  
Financial institutions (FIG)
130  137  267  98  143  241  
Public, project and infrastructure finance (PPIF)
155  87  242  129  72  201  
Total ratings revenue
1,118  593  1,711  846  552  1,398  
MIS Other1  20  21  1  10  11  
Total MIS
1,119  613  1,732  847  562  1,409  
MA:
Research, data and analytics (RD&A) 325  399  724  273  350  623  
Enterprise risk solutions (ERS)
107  162  269  94  145  239  
Professional services (PS) (1)
—  —  —  36  49  85  
Total MA
432  561  993  403  544  947  
Total MCO
$1,551  $1,174  $2,725  $1,250  $1,106  $2,356  
(1) Subsequent to the divestiture of MAKS in 2019, the RD&A LOB now includes revenue from 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.
The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region:
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
MIS:
U.S.
$616  $436  $1,119  $847  
Non-U.S.:
EMEA
183  178  354  327  
Asia-Pacific
90  84  171  163  
Americas
49  41  88  72  
Total Non-U.S.
322  303  613  562  
Total MIS
938  739  1,732  1,409  
MA:
U.S.
221  202  432  403  
Non-U.S.:
EMEA
190  184  382  368  
Asia-Pacific
54  57  109  110  
Americas
32  32  70  66  
Total Non-U.S.
276  273  561  544  
Total MA
497  475  993  947  
Total MCO
$1,435  $1,214  $2,725  $2,356  
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 June 30,
20202019
Transaction
Relationship
Total
Transaction
Relationship
Total
Corporate Finance
$457  $115  $572  $277  $111  $388  
80 %20 %100 %71 %29 %100 %
Structured Finance
$35  $46  $81  $69  $43  $112  
43 %57 %100 %62 %38 %100 %
Financial Institutions
$76  $66  $142  $61  $64  $125  
54 %46 %100 %49 %51 %100 %
Public, Project and Infrastructure Finance
$96  $37  $133  $71  $37  $108  
72 %28 %100 %66 %34 %100 %
MIS Other
$—  $10  $10  $—  $6  $6  
— %100 %100 %— %100 %100 %
Total MIS
$664  $274  $938  $478  $261  $739  
71 %29 %100 %65 %35 %100 %
Research, data and analytics$16  $350  $366  $4  $311  $315  
4 %96 %100 %1 %99 %100 %
Enterprise risk solutions$26  $105  $131  $23  $94  $117  
20 %80 %100 %20 %80 %100 %
Professional services$—  $—  $—  $43  $—  $43  
— %— %— %100 %— %100 %
Total MA$42  $455  $497  $70  $405  $475  
8 %92 %100 %15 %85 %100 %
Total Moody's Corporation$706  $729  $1,435  $548  $666  $1,214  
49 %51 %100 %45 %55 %100 %
Six Months Ended June 30,
20202019
Transaction
Relationship
Total
Transaction
Relationship
Total
Corporate Finance
$795  $230  $1,025  $526  $217  $743  
78 %22 %100 %71 %29 %100 %
Structured Finance
$85  $92  $177  $126  $87  $213  
48 %52 %100 %59 %41 %100 %
Financial Institutions
$136  $131  $267  $109  $132  $241  
51 %49 %100 %45 %55 %100 %
Public, Project and Infrastructure Finance
$165  $77  $242  $126  $75  $201  
68 %32 %100 %63 %37 %100 %
MIS Other
$2  $19  $21  $1  $10  $11  
10 %90 %100 %9 %91 %100 %
Total MIS
$1,183  $549  $1,732  $888  $521  $1,409  
68 %32 %100 %63 %37 %100 %
Research, data and analytics$34  $690  $724  $9  $614  $623  
5 %95 %100 %1 %99 %100 %
Enterprise risk solutions$58  $211  $269  47  $192  $239  
22 %78 %100 %20 %80 %100 %
Professional services$—  $—  $—  $85  $—  $85  
— %— %— %100 %— %100 %
Total MA$92  
(1)
$901  $993  $141  
(1)
$806  $947  
9 %91 %100 %15 %85 %100 %
Total Moody's Corporation$1,275  $1,450  $2,725  $1,029  $1,327  $2,356  
47 %53 %100 %44 %56 %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 Revenue Accounting Standard (please also refer to the following table).

The following table presents the timing of revenue recognition:
Three Months Ended June 30, 2020Six Months Ended June 30, 2020
MIS
MA
Total
MIS
MA
Total
Revenue recognized at a point in time
$664  $20  $684  $1,183  $59  $1,242  
Revenue recognized over time
274  477  751  549  934  1,483  
Total
$938  $497  $1,435  $1,732  $993  $2,725  

Three Months Ended June 30, 2019Six Months Ended June 30, 2019
MIS
MA
Total
MIS
MA
Total
Revenue recognized at a point in time
$478  $22  $500  $888  $52  $940  
Revenue recognized over time
261  453  714  521  895  1,416  
Total
$739  $475  $1,214  $1,409  $947  $2,356  
Unbilled receivables, deferred revenue and remaining performance obligations
Unbilled receivables
At June 30, 2020 and December 31, 2019, accounts receivable, net included $437 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 June 30, 2020 and December 31, 2019, accounts receivable, net included $63 million and $53 million, respectively, of unbilled receivables, net related to the MA segment.
Deferred revenue
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.
Significant changes in the deferred revenue balances during the three and six months ended June 30, 2020 are as follows:
Three Months Ended June 30, 2020
MIS
MA
Total
Balance at March 31, 2020$379  $843  $1,222  
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period
(115) (341) (456) 
Increases due to amounts billable excluding amounts recognized as revenue during the period
100  234  334  
Effect of exchange rate changes
1  4  5  
Total changes in deferred revenue(14) (103) (117) 
Balance at June 30, 2020$365  $740  $1,105  

Six Months Ended June 30, 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
(167) (677) (844) 
Increases due to amounts billable excluding amounts recognized as revenue during the period
213  577  790  
Increases due to RDC acquisition during the period—  20  20  
Effect of exchange rate changes
(3) (20) (23) 
Total changes in deferred revenue
43  (100) (57) 
Balance at June 30, 2020$365  $740  $1,105  
Deferred revenue - current
$265  $736  $1,001  
Deferred revenue - noncurrent
$100  $4  $104  

Three Months Ended June 30, 2019
MIS
MA
Total
Balance at March 31, 2019$388  $795  $1,183  
Changes in deferred revenue

Revenue recognized that was included in the deferred revenue balance at the beginning of the period
(114) (340) (454) 
Increases due to amounts billable excluding amounts recognized as revenue during the period
101  246  347  
Amount included in liabilities reclassified as held for sale—  (3) (3) 
Effect of exchange rate changes
1  (3) (2) 
Total changes in deferred revenue
(12) (100) (112) 
Balance at June 30, 2019$376  $695  $1,071  
Six Months Ended June 30, 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
(161) (533) (694) 
Increases due to amounts billable excluding amounts recognized as revenue during the period
210  479  689  
Amount included in liabilities reclassified as held for sale—  (3) (3) 
Effect of exchange rate changes
1  2  3  
Total changes in deferred revenue
50  (55) (5) 
Balance at June 30, 2019$376  $695  $1,071  
Deferred revenue - current
$262  $691  953  
Deferred revenue - noncurrent
$114  $4  118  

For the MIS segment, the changes in the deferred revenue balance during the three and six months ended June 30, 2020 were primarily related to the significant portion of contract renewals that occur during the first quarter of 2020 and are generally recognized over a one year period.
For the MA segment, the decrease in deferred revenue for the three months ended June 30, 2020 was primarily due to the recognition of annual subscription and maintenance billings from December 2019 and January 2020. For the six months ended June 30, 2020, the decrease in the deferred revenue balance is attributable to recognition of revenues related to the aforementioned December 2019 billings being partially offset by the impact of the high concentration of January 2020 billings.
Remaining performance obligations
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 June 30, 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 June 30, 2020 as well as amounts not yet invoiced to customers as of June 30, 2020, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription based products. As of June 30, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $1.8 billion. The Company expects to recognize into revenue approximately 65% of this balance within one year, approximately 20% of this balance between one to two years and the remaining amount thereafter.