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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 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, SFG, FIG and PPIF 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 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.
Year Ended December 31,
20212020
MISMAEliminationsConsolidatedMISMAEliminationsConsolidated
Revenue$3,977 $2,413 $(172)$6,218 $3,440 $2,086 $(155)$5,371 
Operating, SG&A1,503 1,786 (172)3,117 1,387 1,472 (155)2,704 
Adjusted Operating Income2,474 627 — 3,101 2,053 614 — 2,667 
Depreciation and amortization72 185 — 257 70 150 — 220 
Restructuring(1)1 — — 19 31 — 50 
Loss pursuant to the divestiture of MAKS— — — — — 9 — 9 
Operating Income$2,844 $2,388 
Year Ended December 31, 2019
MISMAEliminationsConsolidated
Revenue$3,009 $1,963 $(143)$4,829 
Operating, SG&A1,264 1,417 (143)2,538 
Adjusted Operating Income1,745 546 — 2,291 
Depreciation and amortization71 129 — 200 
Restructuring31 29 — 60 
Acquisition-Related Expenses— 3 — 3 
Loss pursuant to the divestiture of MAKS— 14 — 14 
Captive insurance company settlement10 6 — 16 
Operating income$1,998 
The cumulative restructuring charges related to the 2018 Restructuring Program for the MIS and MA reportable segments are $60 million and $43 million, respectively. The cumulative restructuring charges related to the 2020 Restructuring Program for the MIS and MA reportable segments were $21 million and $15 million, respectively. The cumulative restructuring charge for the MA reportable segment related to the 2020 MA Strategic Reorganization Restructuring Program is $20 million. The restructuring programs are more fully discussed in Note 11.
CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA
Year Ended December 31,
202120202019
Revenue:
U.S.$3,416 $2,955 $2,544 
Non-U.S.:
EMEA1,866 1,545 1,446 
Asia-Pacific596 571 551 
Americas340 300 288 
Total Non-U.S.
2,802 2,416 2,285 
Total$6,218 $5,371 $4,829 
Long-lived assets at December 31:
U.S.$4,449 $2,162 $1,290 
Non-U.S.4,802 4,889 4,678 
Total$9,251 $7,051 $5,968