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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company is organized into two operating segments: MIS and MA and accordingly, the Company reports in two reportable segments: MIS and MA.
The MIS segment consists of five LOBs. The CFG, SFG, FIG and PPIF LOBs generate revenue principally from fees for the assignment and ongoing monitoring of credit ratings on debt obligations and the entities that issue such obligations in markets worldwide. The MIS Other LOB primarily consists of financial instruments pricing services in the Asia-Pacific region, ICRA non-ratings revenue and revenue from providing ESG research, data and assessments.
The MA segment develops a wide range of products and services that support the risk management activities of institutional participants in global financial markets. Beginning in the first quarter of 2020, the MA segment now consists of two LOBs - RD&A and ERS. Subsequent to the divestiture of MAKS in the fourth quarter of 2019, the MALS business, which was historically part of the PS LOB through December 31, 2019, was reclassified to the RD&A LOB. Prior year revenue by LOB has not been reclassified as the amounts relating to the MALS business were not material.
Revenue for MIS and expenses for MA include an intersegment royalty charged to MA for the rights to use and distribute content, data and products developed by MIS. The royalty rate charged by MIS approximates the fair value of the aforementioned content, data and products and is generally based on comparable market transactions. Also, revenue for MA and expenses for MIS include an intersegment fee charged to MIS from MA for certain MA products and services utilized in MIS’s ratings process. These fees charged by MA are generally equal to the costs incurred by MA to produce these products and services.
Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and legal. Such costs and corporate expenses that exclusively benefit one segment are fully charged to that segment.
For overhead costs and corporate expenses that benefit both segments, costs are allocated to each segment based on the segment’s share of full-year 2018 actual revenue which comprises a “Baseline Pool” that will remain fixed over time. In subsequent periods, incremental overhead costs (or reductions thereof) will be allocated to each segment based on the prevailing shares of total revenue represented by each segment.
“Eliminations” in the following table represent intersegment revenue/expense. Moody’s does not report the Company’s assets by reportable segment, as this metric is not used by the chief operating decision maker to allocate resources to the segments. Consequently, it is not practical to show assets by reportable segment.
Financial Information by Segment
The table below shows revenue, operating income and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Refer to Note 3 for further details on the components of the Company’s revenue.
Three Months Ended September 30,
20202019
MIS
MA
Eliminations
Consolidated
MIS
MA
Eliminations
Consolidated
Revenue
$863 $532 $(39)$1,356 $781 $496 $(37)$1,240 
Total Expense
339 414 (39)714 340 388 (37)691 
Operating income
524 118 — 642 441 108 — 549 
Add:
Restructuring13 10 — 23 — (1)— (1)
Depreciation and
amortization
17 39 — 56 18 30 — 48 
Loss pursuant to the divestiture of MAKS— — — — — 2 — 2 
Captive insurance company settlement— — — — 10 6 — 16 
Adjusted Operating Income$554 $167 $— $721 $469 $145 $— $614 

Nine Months Ended September 30,
20202019
MIS
MA
Eliminations
Consolidated
MIS
MA
Eliminations
Consolidated
Revenue
$2,667 $1,529 $(115)$4,081 $2,255 $1,448 $(107)$3,596 
Total Expenses
1,051 1,201 (115)2,137 1,028 1,181 (107)2,102 
Operating income
1,616 328 — 1,944 1,227 267 — 1,494 
Add:

Restructuring12 8 — 20 29 29 — 58 
Depreciation and
amortization
52 111 — 163 53 97 — 150 
Acquisition-Related
Expenses
— — — — — 3 — 3 
Loss pursuant to the divestiture of MAKS— 9 — 9 — 11 — 11 
Captive insurance company settlement— — — — 10 6 — 16 
Adjusted Operating Income$1,680 $456 $— $2,136 $1,319 $413 $— $1,732 

The cumulative restructuring charges related to the 2018 Restructuring Program, as more fully discussed in Note 12, for the MIS and MA reportable segments are $62 million and $44 million, respectively.
The cumulative restructuring charges related to the 2020 Restructuring Program, as more fully discussed in Note 12, for the MIS and MA reportable segments are $13 million and $10 million, respectively.
Consolidated Revenue Information by Geographic Area
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
United States$729 $660 $2,280 $1,910 
Non-U.S.:
EMEA401 362 1,137 1,057 
Asia-Pacific156 142 436 415 
Americas70 76 228 214 
Total Non-U.S.627 580 1,801 1,686 
Total$1,356 $1,240 $4,081 $3,596