RESTRUCTURING

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

On July 29, 2020, the chief executive officer of Moody’s approved a restructuring program (the “2020 Real Estate Rationalization Restructuring Program”) primarily in response to the COVID-19 pandemic which revolves around the rationalization and exit of certain real estate leases. The exit from certain leased office space began in the third quarter of 2020 and was substantially completed at December 31, 2020. The 2020 Restructuring Program primarily reflects non-cash charges related to the impairment of operating lease right-of-use assets and leasehold improvements. The 2020 Restructuring Program is expected to result in an estimated annualized savings of approximately $5 to $6 million a year.

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 was 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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
2018 Restructuring Program	$	—	$	—	$	—	$	(3)
2020 Real Estate Rationalization Restructuring Program	—		23		—		23
2020 MA Strategic Reorganization Restructuring Program	—		—		2		—
Total Restructuring	$	—	$	23	$	2	$	20

Changes to the restructuring liability for the aforementioned restructuring program during the first nine 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	(12)
Balance as of September 30, 2021	$	8

Cumulative expense incurred to date

2020 Real Estate Rationalization Restructuring Program	$	36
2020 MA Strategic Reorganization Restructuring Program	$	20