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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2021
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, FIG, PPIF and SFG 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. The MA segment consists of two LOBs - RD&A and ERS.
Revenue for MIS and expenses for MA include intersegment fees charged to MA for the rights to use and distribute content, data and products developed by MIS. Additionally, 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 intersegment fees are generally based on the market value of the products and services being transferred between the segments.
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 2019 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 June 30,
20212020
MIS
MA
Eliminations
Consolidated
MIS
MA
Eliminations
Consolidated
Revenue$1,022 $575 $(44)$1,553 $973 $499 $(37)$1,435 
Total Expenses362 434 (44)752 369 393 (37)725 
Operating income660 141 — 801 604 106 — 710 
Add:

Depreciation and
amortization		18 42 — 60 19 39 — 58 
Restructuring— — — — — (2)— (2)
Adjusted Operating Income$678 $183 $— $861 $623 $143 $— $766 
Six Months Ended June 30,
20212020
MIS
MA
Eliminations
Consolidated
MIS
MA
Eliminations
Consolidated
Revenue$2,098 $1,141 $(86)$3,153 $1,804 $997 $(76)$2,725 
Total Expenses728 857 (86)1,499 712 787 (76)1,423 
Operating income1,370 284 — 1,654 1,092 210 — 1,302 
Add:

Depreciation and
amortization		36 83 — 119 35 72 — 107 
Restructuring— 2 — 2 (1)(2)— (3)
Loss pursuant to the divestiture of MAKS— — — — — 9 — 9 
Adjusted Operating Income$1,406 $369 $— $1,775 $1,126 $289 $— $1,415 
Consolidated Revenue Information by Geographic Area
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
United States$831 $837 $1,716 $1,551 
Non-U.S.:
EMEA481 373 959 736 
Asia-Pacific155 144 311 280 
Americas86 81 167 158 
Total Non-U.S.722 598 1,437 1,174 
Total$1,553 $1,435 $3,153 $2,725