RESTRUCTURING

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

On June 30, 2022, the chief executive officer of Moody’s approved a restructuring program (the “2022 - 2023 Geolocation Restructuring Program”). The Company estimates that the program will result in annualized savings of $120 million to $140 million per year. This program relates to the Company's post-COVID-19 geolocation strategy and includes the rationalization and exit of certain leased office spaces and a reduction in staff, including the relocation of certain job functions. The exit from certain leased office spaces began in the fourth quarter of 2022 and is expected to result in $50 million to $70 million of pre-tax charges from vacating the affected office spaces, a large portion of which Moody's intends to sublease. The program also includes $105 million to $120 million of pre-tax personnel-related restructuring charges, an amount that includes severance costs, expense related to the modification of equity awards, and related costs primarily determined under the Company’s existing severance plans. The savings generated from the 2022 - 2023 Geolocation Restructuring Program are expected to strengthen the Company's operating margin, with a portion being deployed to support strategic investments, including the Company's workplace of the future program and employee retention initiatives. The 2022 - 2023 Geolocation Restructuring Program is expected to be substantially complete by the end of 2023. Cash outlays associated with this program, which primarily relate to personnel-related costs, are expected to be $105 million to $120 million, which are expected to be paid through 2024.

Substantially all of the $14 million in restructuring charges recognized during the quarter ended March 31, 2023 relate to employee termination costs.

Changes to the restructuring liability for the aforementioned restructuring programs during the first three months of 2023 were as follows:



Balance as of December 31, 2022	$	65









2022 - 2023 Geolocation Restructuring Program:
Cost incurred and adjustments	$	14
Cash payments and adjustments	$	(42)
Balance as of March 31, 2023	$	37


Cumulative expense incurred through March 31, 2023	Employee Termination Costs		Real Estate Related Costs		Other Costs		Total



2022 - 2023 Geolocation Restructuring Program	$	98	$	28	$	1	$	127