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REVENUES
 9 Months Ended
Sep. 30, 2022
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
September 30,
Nine Months Ended
September 30,
2022202120222021
MIS:
Corporate Finance (CFG)
Investment-grade$67 $105 $249 $341 
High-yield21 82 91 347 
Bank loans47 145 232 482 
Other accounts (1)
142 156 444 473 
Total CFG277 488 1,016 1,643 
Structured Finance (SFG)
Asset-backed securities26 29 89 88 
RMBS22 31 85 89 
CMBS19 26 84 73 
Structured credit34 57 109 148 
Other accounts— — 1 1 
Total SFG101 143 368 399 
Financial Institutions (FIG)
Banking76 105 258 315 
Insurance24 38 82 114 
Managed investments6 8 19 29 
Other accounts3 2 9 7 
Total FIG109 153 368 465 
Public, Project and Infrastructure Finance (PPIF)
Public finance / sovereign44 61 157 191 
Project and infrastructure48 69 180 212 
Total PPIF92 130 337 403 
Total ratings revenue579 914 2,089 2,910 
MIS Other11 11 34 31 
Total external revenue590 925 2,123 2,941 
Intersegment revenue43 42 129 124 
Total MIS633 967 2,252 3,065 
MA:
Decision Solutions325 250 971 697 
Research and Insights184 177 552 523 
Data and Information176 174 532 518 
Total external revenue685 601 2,055 1,738 
Intersegment revenue2 2 5 6 
Total MA687 603 2,060 1,744 
Eliminations(45)(44)(134)(130)
Total MCO$1,275 $1,526 $4,178 $4,679 
(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 September 30, 2022Three Months Ended September 30, 2021
U.S.Non-U.STotalU.S.Non-U.STotal
MIS:
Corporate Finance$188 $89 $277 $334 $154 $488 
Structured Finance69 32 101 98 45 143 
Financial Institutions47 62 109 71 82 153 
Public, Project and Infrastructure Finance57 35 92 76 54 130 
Total ratings revenue361 218 579 579 335 914 
MIS Other1 10 11 1 10 11 
Total MIS362 228 590 580 345 925 
MA:
Decision Solutions143 182 325 107 143 250 
Research and Insights100 84 184 96 81 177 
Data and Information63 113 176 58 116 174 
Total MA306 379 685 261 340 601 
Total MCO$668 $607 $1,275 $841 $685 $1,526 
Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
U.S.Non-U.STotalU.S.Non-U.STotal
MIS:
Corporate Finance$673 $343 $1,016 $1,093 $550 $1,643 
Structured Finance249 119 368 254 145 399 
Financial Institutions165 203 368 226 239 465 
Public, Project and Infrastructure Finance210 127 337 233 170 403 
Total ratings revenue1,297 792 2,089 1,806 1,104 2,910 
MIS Other4 30 34 3 28 31 
Total MIS1,301 822 2,123 1,809 1,132 2,941 
MA:
Decision Solutions425 546 971 294 403 697 
Research and Insights303 249 552 284 239 523 
Data and Information185 347 532 170 348 518 
Total MA913 1,142 2,055 748 990 1,738 
Total MCO$2,214 $1,964 $4,178 $2,557 $2,122 $4,679 
The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
MIS:
U.S.$362 $580 $1,301 $1,809 
Non-U.S.:
EMEA139 211 497 707 
Asia-Pacific57 90 211 287 
Americas32 44 114 138 
Total Non-U.S.228 345 822 1,132 
Total MIS590 925 2,123 2,941 
MA:
U.S.306 261 913 748 
Non-U.S.:
EMEA254 232 774 695 
Asia-Pacific72 59 211 173 
Americas53 49 157 122 
Total Non-U.S.379 340 1,142 990 
Total MA685 601 2,055 1,738 
Total MCO$1,275 $1,526 $4,178 $4,679 
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 September 30,
20222021
TransactionRecurringTotalTransactionRecurringTotal
Corporate Finance$153 $124 $277 $366 $122 $488 
55 %45 %100 %75 %25 %100 %
Structured Finance$51 $50 $101 $93 $50 $143 
50 %50 %100 %65 %35 %100 %
Financial Institutions$41 $68 $109 $83 $70 $153 
38 %62 %100 %54 %46 %100 %
Public, Project and Infrastructure Finance$50 $42 $92 $88 $42 $130 
54 %46 %100 %68 %32 %100 %
MIS Other$1 $10 $11 $1 $10 $11 
9 %91 %100 %9 %91 %100 %
Total MIS$296 $294 $590 $631 $294 $925 
50 %50 %100 %68 %32 %100 %
Decision Solutions$37 $288 $325 $34 $216 $250 
11 %89 %100 %14 %86 %100 %
Research and Insights$1 $183 $184 $2 $175 $177 
1 %99 %100 %1 %99 %100 %
Data and Information$— $176 $176 $1 $173 $174 
— %100 %100 %1 %99 %100 %
Total MA$38 
(1)
$647 $685 $37 $564 $601 
6 %94 %100 %6 %94 %100 %
Total Moody's Corporation$334 $941 $1,275 $668 $858 $1,526 
26 %74 %100 %44 %56 %100 %
Nine Months Ended September 30,
20222021
TransactionRecurringTotalTransactionRecurringTotal
Corporate Finance$645 $371 $1,016 $1,280 $363 $1,643 
63 %37 %100 %78 %22 %100 %
Structured Finance$217 $151 $368 $251 $148 $399 
59 %41 %100 %63 %37 %100 %
Financial Institutions$159 $209 $368 $252 $213 $465 
43 %57 %100 %54 %46 %100 %
Public, Project and Infrastructure Finance$211 $126 $337 $276 $127 $403 
63 %37 %100 %68 %32 %100 %
MIS Other$3 $31 $34 $3 $28 $31 
9 %91 %100 %10 %90 %100 %
Total MIS$1,235 $888 $2,123 $2,062 $879 $2,941 
58 %42 %100 %70 %30 %100 %
Decision Solutions$120 $851 $971 $111 $586 $697 
12 %88 %100 %16 %84 %100 %
Research and Insights$4 $548 $552 $6 $517 $523 
1 %99 %100 %1 %99 %100 %
Data and Information$— $532 $532 $3 $515 $518 
— %100 %100 %1 %99 %100 %
Total MA$124 
(1)
$1,931 $2,055 $120 $1,618 $1,738 
6 %94 %100 %7 %93 %100 %
Total Moody's Corporation$1,359 $2,819 $4,178 $2,182 $2,497 $4,679 
33 %67 %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 September 30, 2022
Nine Months Ended September 30, 2022
MISMATotalMISMATotal
Revenue recognized at a point in time$296 $20 $316 $1,235 $77 $1,312 
Revenue recognized over time294 665 959 888 1,978 2,866 
Total$590 $685 $1,275 $2,123 $2,055 $4,178 
Three Months Ended September 30, 2021Nine Months Ended September 30, 2021
MISMATotalMISMATotal
Revenue recognized at a point in time$631 $29 $660 $2,062 $78 $2,140 
Revenue recognized over time294 572 866 879 1,660 2,539 
Total$925 $601 $1,526 $2,941 $1,738 $4,679 
Unbilled receivables, deferred revenue and remaining performance obligations
Unbilled receivables
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.
The following table presents the Company's unbilled receivables, which are included within accounts receivable, net, at September 30, 2022 and December 31, 2021:
As of September 30, 2022
As of December 31, 2021
MISMAMISMA
Unbilled Receivables$381 $147 $386 $152 
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 nine months ended September 30, 2022 and 2021 are as follows:
Three Months Ended September 30, 2022
Three Months Ended September 30, 2021
MISMATotalMISMATotal
Balance at June 30,
$347 $1,019 $1,366 $368 $867 $1,235 
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(110)(480)(590)(118)(484)(602)
Increases due to amounts billable excluding amounts recognized as revenue during the period82 389 471 85 393 478 
Increases due to acquisitions during the period— — — — 89 89 
Effect of exchange rate changes(5)(9)(14)(2)(12)(14)
Total changes in deferred revenue(33)(100)(133)(35)(14)(49)
Balance at September 30,
$314 $919 $1,233 $333 $853 $1,186 
Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
MISMATotalMISMATotal
Balance at December 31,$296 $1,039 $1,335 $313 $874 $1,187 
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(186)(883)(1,069)(200)(814)(1,014)
Increases due to amounts billable excluding amounts recognized as revenue during the period218 819 1,037 224 713 937 
Increases due to acquisitions during the period— 1 1 — 93 93 
Effect of exchange rate changes(14)(57)(71)(4)(13)(17)
Total changes in deferred revenue18 (120)(102)20 (21)(1)
Balance at September 30,
$314 $919 $1,233 $333 $853 $1,186 
Deferred revenue - current$238 $917 $1,155 $247 $852 $1,099 
Deferred revenue - non-current$76 $2 $78 $86 $1 $87 
For the MIS segment, the changes in the deferred revenue balance during the three and nine months ended September 30, 2022 were primarily related to the significant portion of contract renewals that occurred during the first quarter of 2022 and are generally recognized over a one year period.
For the MA segment, the decrease in deferred revenue for the three months ended September 30, 2022 was primarily due to the recognition of annual subscription and maintenance billings from December 2021 and January 2022. For the nine months ended September 30, 2022, the decrease in the deferred revenue balance is attributable to recognition of revenues related to the aforementioned December 2021 billings and unfavorable changes in FX translation rates being mostly offset by the impact of the high concentration of billings in the first quarter of 2022.
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 September 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $103 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 September 30, 2022 as well as amounts not yet invoiced to customers as of September 30, 2022, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of September 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $3.1 billion. The Company expects to recognize into revenue approximately 60% of this balance within one year, approximately 30% of this balance between one to two years and the remaining amount thereafter.