RESTRUCTURING

6 Months Ended

Jun. 30, 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 $20 million per year. This program relates to a strategic reorganization in the MA reportable segment consisting of severance and related costs primarily determined under the Company’s existing severance plans. The 2020 MA Strategic Reorganization Restructuring Program resulted in a total of $20 million in pre-tax charges and is substantially complete at June 30, 2021. Cash outlays associated with this program are expected to be $20 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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
2020 MA Strategic Reorganization Restructuring Program	$	—	$	—	$	2	$	—

Changes to the restructuring liability for the aforementioned restructuring program during the first six 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	(8)
Balance as of June 30, 2021	$	12
Cumulative expense incurred to date
2020 MA Strategic Reorganization Restructuring Program:	$	20

As of June 30, 2021, the remaining $12 million restructuring liability related to the 2020 MA Strategic Reorganization Restructuring Program is expected to be paid out through 2022.