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REVENUES
 6 Months Ended
Jun. 30, 2021
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,
2021202020212020
MIS:
Corporate finance (CFG)
Investment-grade$102 $291 $236 $435 
High-yield124 99 265 174 
Bank loans157 43 337 132 
Other accounts (1)
167 139 317 284 
Total CFG550 572 1,155 1,025 
Financial institutions (FIG)
Banking101 88 210 174 
Insurance33 44 76 74 
Managed investments13 8 21 14 
Other accounts3 2 5 5 
Total FIG150 142 312 267 
Public, project and infrastructure finance (PPIF)
Public finance / sovereign63 64 130 121 
Project and infrastructure67 69 143 121 
Total PPIF130 133 273 242 
Structured finance (SFG)
Asset-backed securities33 23 59 45 
RMBS31 23 58 50 
CMBS23 13 47 30 
Structured credit53 21 91 50 
Other accounts— 1 1 2 
Total SFG140 81 256 177 
Total ratings revenue970 928 1,996 1,711 
MIS Other10 10 20 21 
Total external revenue980 938 2,016 1,732 
Intersegment revenue42 35 82 72 
Total MIS1,022 973 2,098 1,804 
MA:
Research, data and analytics (RD&A) 435 366 854 724 
Enterprise risk solutions (ERS)
138 131 283 269 
Total external revenue573 497 1,137 993 
Intersegment revenue2 2 4 4 
Total MA575 499 1,141 997 
Eliminations(44)(37)(86)(76)
Total MCO$1,553 $1,435 $3,153 $2,725 
(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.
The following table presents the Company’s revenues disaggregated by LOB and geographic area:
Three Months Ended June 30, 2021Three Months Ended June 30, 2020
U.S.Non-U.STotalU.S.Non-U.STotal
MIS:
Corporate finance$345 $205 $550 $413 $159 $572 
Financial institutions69 81 150 70 72 142 
Public, project and infrastructure finance79 51 130 87 46 133 
Structured finance88 52 140 45 36 81 
Total ratings revenue581 389 970 615 313 928 
MIS Other1 9 10 1 9 10 
Total MIS582 398 980 616 322 938 
MA:
Research, data and analytics190 245 435 167 199 366 
Enterprise risk solutions
59 79 138 54 77 131 
Total MA249 324 573 221 276 497 
Total MCO$831 $722 $1,553 $837 $598 $1,435 
Six Months Ended June 30, 2021Six Months Ended June 30, 2020
U.S.Non-U.STotalU.S.Non-U.STotal
MIS:
Corporate finance$759 $396 $1,155 $727 $298 $1,025 
Financial institutions155 157 312 130 137 267 
Public, project and infrastructure finance157 116 273 155 87 242 
Structured finance156 100 256 106 71 177 
Total ratings revenue1,227 769 1,996 1,118 593 1,711 
MIS Other2 18 20 1 20 21 
Total MIS1,229 787 2,016 1,119 613 1,732 
MA:
Research, data and analytics373 481 854 325 399 724 
Enterprise risk solutions
114 169 283 107 162 269 
Total MA487 650 1,137 432 561 993 
Total MCO$1,716 $1,437 $3,153 $1,551 $1,174 $2,725 
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,
2021202020212020
MIS:
U.S.$582 $616 $1,229 $1,119 
Non-U.S.:
EMEA248 183 496 354 
Asia-Pacific100 90 197 171 
Americas50 49 94 88 
Total Non-U.S.398 322 787 613 
Total MIS980 938 2,016 1,732 
MA:
U.S.249 221 487 432 
Non-U.S.:
EMEA233 190 463 382 
Asia-Pacific55 54 114 109 
Americas36 32 73 70 
Total Non-U.S.324 276 650 561 
Total MA573 497 1,137 993 
Total MCO$1,553 $1,435 $3,153 $2,725 
The following tables summarize the split between transaction and recurring 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 recurring 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 recurring revenue represents subscription-based revenues. In the MA segment, recurring 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, and training and certification services.
Three Months Ended June 30,
20212020
TransactionRecurringTotalTransactionRecurringTotal
Corporate Finance$427 $123 $550 $457 $115 $572 
78 %22 %100 %80 %20 %100 %
Financial Institutions$79 $71 $150 $76 $66 $142 
53 %47 %100 %54 %46 %100 %
Public, Project and Infrastructure Finance$88 $42 $130 $96 $37 $133 
68 %32 %100 %72 %28 %100 %
Structured Finance$92 $48 $140 $35 $46 $81 
66 %34 %100 %43 %57 %100 %
MIS Other$— $10 $10 $— $10 $10 
— %100 %100 %— %100 %100 %
Total MIS$686 $294 $980 $664 $274 $938 
70 %30 %100 %71 %29 %100 %
Research, data and analytics$22 $413 $435 $16 $350 $366 
5 %95 %100 %4 %96 %100 %
Enterprise risk solutions$16 $122 $138 $26 $105 $131 
12 %88 %100 %20 %80 %100 %
Total MA$38 
(1)
$535 $573 $42 $455 $497 
7 %93 %100 %8 %92 %100 %
Total Moody's Corporation$724 $829 $1,553 $706 $729 $1,435 
47 %53 %100 %49 %51 %100 %
Six Months Ended June 30,
20212020
TransactionRecurringTotalTransactionRecurringTotal
Corporate Finance$914 $241 $1,155 $795 $230 $1,025 
79 %21 %100 %78 %22 %100 %
Financial Institutions$169 $143 $312 $136 $131 $267 
54 %46 %100 %51 %49 %100 %
Public, Project and Infrastructure Finance$188 $85 $273 $165 $77 $242 
69 %31 %100 %68 %32 %100 %
Structured Finance$158 $98 $256 $85 $92 $177 
62 %38 %100 %48 %52 %100 %
MIS Other$2 $18 $20 $2 $19 $21 
10 %90 %100 %10 %90 %100 %
Total MIS$1,431 $585 $2,016 $1,183 $549 $1,732 
71 %29 %100 %68 %32 %100 %
Research, data and analytics$42 $812 $854 $34 $690 $724 
5 %95 %100 %5 %95 %100 %
Enterprise risk solutions$39 $244 $283 $58 $211 $269 
14 %86 %100 %22 %78 %100 %
Total MA$81 
(1)
$1,056 $1,137 $92 $901 $993 
7 %93 %100 %9 %91 %100 %
Total Moody's Corporation$1,512 $1,641 $3,153 $1,275 $1,450 $2,725 
48 %52 %100 %47 %53 %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, 2021Six Months Ended June 30, 2021
MISMATotalMISMATotal
Revenue recognized at a point in time$686 $20 $706 $1,431 $49 $1,480 
Revenue recognized over time294 553 847 585 1,088 1,673 
Total$980 $573 $1,553 $2,016 $1,137 $3,153 
Three Months Ended June 30, 2020Six Months Ended June 30, 2020
MISMATotalMISMATotal
Revenue recognized at a point in time$664 $20 $684 $1,183 $59 $1,242 
Revenue recognized over time274 477 751 549 934 1,483 
Total$938 $497 $1,435 $1,732 $993 $2,725 
Unbilled receivables, deferred revenue and remaining performance obligations
Unbilled receivables
At June 30, 2021 and December 31, 2020, accounts receivable, net included $429 million and $361 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, 2021 and December 31, 2020, accounts receivable, net included $95 million and $98 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, 2021 and 2020 are as follows:
Three Months Ended June 30, 2021Three Months Ended June 30, 2020
MISMATotalMISMATotal
Balance at March 31,
$388 $940 $1,328 $379 $843 $1,222 
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(119)(338)(457)(115)(341)(456)
Increases due to amounts billable excluding amounts recognized as revenue during the period98 262 360 100 234 334 
Effect of exchange rate changes1 3 4 1 4 5 
Total changes in deferred revenue(20)(73)(93)(14)(103)(117)
Balance at June 30,
$368 $867 $1,235 $365 $740 $1,105 
Six Months Ended June 30, 2021Six Months Ended June 30, 2020
MISMATotalMISMATotal
Balance at December 31,$313 $874 $1,187 $322 $840 $1,162 
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(162)(565)(727)(167)(578)
(1)
(745)
Increases due to amounts billable excluding amounts recognized as revenue during the period219 555 774 213 478 
(1)
691 
Increases due to acquisitions during the period— 4 4 — 20 20 
Effect of exchange rate changes(2)(1)(3)(3)(20)(23)
Total changes in deferred revenue55 (7)48 43 (100)(57)
Balance at June 30,
$368 $867 $1,235 $365 $740 $1,105 
Deferred revenue - current$279 $863 $1,142 $265 $736 1,001 
Deferred revenue - noncurrent$89 $4 $93 $100 $4 104 
(1) The 2020 amounts were both reduced by $99 million from amounts previously disclosed in the Form 10-Q for the six months ended June 30, 2020.
For the MIS segment, the changes in the deferred revenue balance during the three and six months ended June 30, 2021 were primarily related to the significant portion of contract renewals that occurred during the first quarter of 2021 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, 2021 was primarily due to the recognition of annual subscription and maintenance billings from December 2020 and January 2021. For the six months ended June 30, 2021, the decrease in the deferred revenue balance is attributable to recognition of revenues related to the aforementioned December 2020 billings being partially offset by the impact of the high concentration of January 2021 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, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $118 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, 2021 as well as amounts not yet invoiced to customers as of June 30, 2021, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of June 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $2.2 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.