RESTRUCTURING

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

RESTRUCTURING

RESTRUCTURING

On December 22, 2020, the chief executive officer of Moody’s approved a restructuring program (the “2020 MA Strategic Reorganization Restructuring Program”) that the Company estimates will result in annualized savings of $25 to $30 million per year. This program relates to a strategic reorganization in the MA reportable segment and is estimated to result in total pre-tax charges of approximately $20 to $30 million, consisting of severance and related costs primarily determined under the Company’s existing severance plans. The 2020 MA Strategic Reorganization Restructuring Program is expected to be substantially complete in the first half of 2021. Cash outlays associated with this program are expected to be $20 to $30 million, which will be paid through 2022.

Total expense included in the accompanying consolidated statements of operations relating to the aforementioned restructuring program is below:

	Three Months Ended March 31,
	2021		2020
2020 MA Strategic Reorganization Restructuring Program	$	2	$	—

Changes to the restructuring liability for the aforementioned restructuring program during the first three months of 2021 were as follows:

	Employee Termination Costs
Balance as of December 31, 2020	$	18
2020 MA Strategic Reorganization Restructuring Program:
Cost incurred and adjustments	2
Cash payments and adjustments	(5)
Balance as of March 31, 2021	$	15
Cumulative expense incurred to date
2020 MA Strategic Reorganization Restructuring Program:	$	20

As of March 31, 2021, the remaining $15 million restructuring liability related to the 2020 MA Strategic Reorganization Restructuring Program is expected to be paid out through 2022.