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REVENUES
 9 Months Ended
Sep. 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
September 30,		Nine Months Ended
September 30,
2020201920202019
MIS:
Corporate finance (CFG)
Investment-grade
$141 $106 $576 $299 
High-yield
101 56 275 182 
Bank loans
73 90 205 246 
Other accounts (1)
146 140 430 408 
Total CFG
461 392 1,486 1,135 
Structured finance (SFG)
Asset-backed securities
25 25 70 74 
RMBS
24 21 74 69 
CMBS
15 18 45 56 
Structured credit
24 40 74 116 
Other accounts
— 1 2 3 
Total SFG
88 105 265 318 
Financial institutions (FIG)
Banking
95 80 269 244 
Insurance
31 31 105 88 
Managed investments
6 6 20 20 
Other accounts
2 3 7 9 
Total FIG
134 120 401 361 
Public, project and infrastructure finance (PPIF)
Public finance / sovereign
71 58 192 157 
Project and infrastructure
62 62 183 164 
Total PPIF
133 120 375 321 
Total ratings revenue
816 737 2,527 2,135 
MIS Other
9 9 30 20 
Total external revenue
825 746 2,557 2,155 
Intersegment royalty
38 35 110 100 
Total MIS
863 781 2,667 2,255 
MA:
Research, data and analytics (RD&A) 386 317 1,110 940 
Enterprise risk solutions (ERS)
145 134 414 373 
Professional services (PS) (2)
— 43 — 128 
Total external revenue
531 494 1,524 1,441 
Intersegment revenue
1 2 5 7 
Total MA
532 496 1,529 1,448 
Eliminations
(39)(37)(115)(107)
Total MCO
$1,356 $1,240 $4,081 $3,596 
(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 September 30, 2020Three Months Ended September 30, 2019
U.S.
Non-U.S
Total
U.S.
Non-U.S
Total
MIS:
Corporate finance (CFG)
$311 $150 $461 $259 $133 $392 
Structured finance (SFG)54 34 88 68 37 105 
Financial institutions (FIG)
59 75 134 54 66 120 
Public, project and infrastructure finance (PPIF)
82 51 133 73 47 120 
Total ratings revenue
506 310 816 454 283 737 
MIS Other— 9 9 — 9 9 
Total MIS
506 319 825 454 292 746 
MA:
Research, data and analytics (RD&A)167 219 386 139 178 317 
Enterprise risk solutions (ERS)
56 89 145 49 85 134 
Professional services (PS) (1)
— — — 18 25 43 
Total MA
223 308 531 206 288 494 
Total MCO
$729 $627 $1,356 $660 $580 $1,240 

Nine Months Ended September 30, 2020Nine Months Ended September 30, 2019
U.S.
Non-U.S
Total
U.S.
Non-U.S
Total
MIS:
Corporate finance (CFG)
$1,038 $448 $1,486 $744 $391 $1,135 
Structured finance (SFG) 160 105 265 202 116 318 
Financial institutions (FIG)
189 212 401 152 209 361 
Public, project and infrastructure finance (PPIF)
237 138 375 202 119 321 
Total ratings revenue
1,624 903 2,527 1,300 835 2,135 
MIS Other1 29 30 1 19 20 
Total MIS
1,625 932 2,557 1,301 854 2,155 
MA:
Research, data and analytics (RD&A) 492 618 1,110 412 528 940 
Enterprise risk solutions (ERS)
163 251 414 143 230 373 
Professional services (PS) (1)
— — — 54 74 128 
Total MA
655 869 1,524 609 832 1,441 
Total MCO
$2,280 $1,801 $4,081 $1,910 $1,686 $3,596 
(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
September 30,		Nine Months Ended
September 30,
2020201920202019
MIS:
U.S.
$506 $454 $1,625 $1,301 
Non-U.S.:
EMEA
188 175 542 502 
Asia-Pacific
99 78 270 241 
Americas
32 39 120 111 
Total Non-U.S.
319 292 932 854 
Total MIS
825 746 2,557 2,155 
MA:
U.S.
223 206 655 609 
Non-U.S.:
EMEA
213 187 595 555 
Asia-Pacific
57 64 166 174 
Americas
38 37 108 103 
Total Non-U.S.
308 288 869 832 
Total MA
531 494 1,524 1,441 
Total MCO
$1,356 $1,240 $4,081 $3,596 
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,
20202019
Transaction
Relationship
Total
Transaction
Relationship
Total
Corporate Finance
$347 $114 $461 $282 $110 $392 
75 %25 %100 %72 %28 %100 %
Structured Finance
$41 $47 $88 $58 $47 $105 
47 %53 %100 %55 %45 %100 %
Financial Institutions
$67 $67 $134 $56 $64 $120 
50 %50 %100 %47 %53 %100 %
Public, Project and Infrastructure Finance
$92 $41 $133 $82 $38 $120 
69 %31 %100 %68 %32 %100 %
MIS Other
$1 $8 $9 $— $9 $9 
11 %89 %100 %— %100 %100 %
Total MIS
$548 $277 $825 $478 $268 $746 
66 %34 %100 %64 %36 %100 %
Research, data and analytics$19 $367 $386 $3 $314 $317 
5 %95 %100 %1 %99 %100 %
Enterprise risk solutions$32 $113 $145 $32 $102 $134 
22 %78 %100 %24 %76 %100 %
Professional services(2)
$— $— $— $43 $— $43 
— %— %— %100 %— %100 %
Total MA$51 $480 $531 $78 $416 $494 
10 %90 %100 %16 %84 %100 %
Total Moody's Corporation$599 $757 $1,356 $556 $684 $1,240 
44 %56 %100 %45 %55 %100 %
Nine Months Ended September 30,
20202019
Transaction
Relationship
Total
Transaction
Relationship
Total
Corporate Finance
$1,142 $344 $1,486 $808 $327 $1,135 
77 %23 %100 %71 %29 %100 %
Structured Finance
$126 $139 $265 $184 $134 $318 
48 %52 %100 %58 %42 %100 %
Financial Institutions
$203 $198 $401 $165 $196 $361 
51 %49 %100 %46 %54 %100 %
Public, Project and Infrastructure Finance
$257 $118 $375 $208 $113 $321 
69 %31 %100 %65 %35 %100 %
MIS Other
$3 $27 $30 $1 $19 $20 
10 %90 %100 %5 %95 %100 %
Total MIS
$1,731 $826 $2,557 $1,366 $789 $2,155 
68 %32 %100 %63 %37 %100 %
Research, data and analytics$53 $1,057 $1,110 $12 $928 $940 
5 %95 %100 %1 %99 %100 %
Enterprise risk solutions$90 $324 $414 $79 $294 $373 
22 %78 %100 %21 %79 %100 %
Professional services(2)
$— $— $— $128 $— $128 
— %— %— %100 %— %100 %
Total MA$143 
(1)
$1,381 $1,524 $219 
(1)
$1,222 $1,441 
9 %91 %100 %15 %85 %100 %
Total Moody's Corporation$1,874 $2,207 $4,081 $1,585 $2,011 $3,596 
46 %54 %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).
(2) 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 timing of revenue recognition:
Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
MIS
MA
Total
MIS
MA
Total
Revenue recognized at a point in time
$548 $30 $578 $1,731 $89 $1,820 
Revenue recognized over time
277 501 778 826 1,435 2,261 
Total
$825 $531 $1,356 $2,557 $1,524 $4,081 

Three Months Ended September 30, 2019Nine Months Ended September 30, 2019
MIS
MA
Total
MIS
MA
Total
Revenue recognized at a point in time
$478 $31 $509 $1,366 $83 $1,449 
Revenue recognized over time
268 463 731 789 1,358 2,147 
Total
$746 $494 $1,240 $2,155 $1,441 $3,596 
Unbilled receivables, deferred revenue and remaining performance obligations
Unbilled receivables
At September 30, 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 September 30, 2020 and December 31, 2019, accounts receivable, net included $89 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 nine months ended September 30, 2020 are as follows:
Three Months Ended September 30, 2020
MIS
MA
Total
Balance at June 30, 2020$365 $740 $1,105 
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period
(118)(347)(465)
Increases due to amounts billable excluding amounts recognized as revenue during the period
83 273 356 
Effect of exchange rate changes
5 19 24 
Total changes in deferred revenue(30)(55)(85)
Balance at September 30, 2020$335 $685 $1,020 

Nine Months Ended September 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
(207)(781)(988)
Increases due to amounts billable excluding amounts recognized as revenue during the period
219 607 826 
Increases due to RDC acquisition during the period— 20 20 
Effect of exchange rate changes
1 (1)— 
Total changes in deferred revenue
13 (155)(142)
Balance at September 30, 2020$335 $685 $1,020 
Deferred revenue - current
$237 $681 $918 
Deferred revenue - noncurrent
$98 $4 $102 
Three Months Ended September 30, 2019
MIS
MA
Total
Balance at June 30, 2019$376 $695 $1,071 
Changes in deferred revenue

Revenue recognized that was included in the deferred revenue balance at the beginning of the period
(111)(344)(455)
Increases due to amounts billable excluding amounts recognized as revenue during the period
82 290 372 
Effect of exchange rate changes
(3)(14)(17)
Total changes in deferred revenue
(32)(68)(100)
Balance at September 30, 2019$344 $627 $971 

Nine Months Ended September 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
(191)(687)(878)
Increases due to amounts billable excluding amounts recognized as revenue during the period
212 576 788 
Amount included in liabilities reclassified as held for sale— (3)(3)
Effect of exchange rate changes
(3)(9)(12)
Total changes in deferred revenue
18 (123)(105)
Balance at September 30, 2019$344 $627 $971 
Deferred revenue - current
$234 $622 856 
Deferred revenue - noncurrent
$110 $5 115 

For the MIS segment, the changes in the deferred revenue balance during the three and nine months ended September 30, 2020 and 2019 were primarily related to the significant portion of contract renewals that occur during the first quarter of each year and are generally recognized over a one-year period.
For the MA segment, the decrease in deferred revenue for the three months ended September 30, 2020 and 2019 was primarily due to the recognition of annual subscription and maintenance billings from December and January of each year. For the nine months ended September 30, 2020 and 2019, the decrease in the deferred revenue balance is attributable to recognition of revenues related to the aforementioned December billings being partially offset by the impact of the high concentration of January 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 September 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 September 30, 2020 as well as amounts not yet invoiced to customers as of September 30, 2020, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of September 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 60% of this balance within one year, approximately 25% of this balance between one to two years and the remaining amount thereafter.