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REVENUES
 9 Months Ended
Sep. 30, 2023
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,
2023202220232022
MA:
Decision Solutions (DS)
Banking$136 $115 $390 $355 
Insurance138 129 404 370 
KYC80 64 228 191 
Total DS354 308 1,022 916 
Research and Insights (R&I)222 201 654 607 
Data and Information (D&I)200 176 584 532 
Total external revenue776 685 2,260 2,055 
Intersegment revenue3 2 10 5 
Total MA779 687 2,270 2,060 
MIS:
Corporate Finance (CFG)
Investment-grade63 67 272 249 
High-yield38 21 116 91 
Bank loans82 47 209 232 
Other accounts (1)
163 142 470 444 
Total CFG346 277 1,067 1,016 
Structured Finance (SFG)
Asset-backed securities30 26 89 89 
RMBS22 22 72 85 
CMBS17 19 45 84 
Structured credit32 34 95 109 
Other accounts1 — 2 1 
Total SFG102 101 303 368 
Financial Institutions (FIG)
Banking92 76 289 258 
Insurance24 24 92 82 
Managed investments7 6 23 19 
Other accounts3 3 9 9 
Total FIG126 109 413 368 
Public, Project and Infrastructure Finance (PPIF)
Public finance / sovereign49 44 155 157 
Project and infrastructure66 48 216 180 
Total PPIF115 92 371 337 
Total ratings revenue689 579 2,154 2,089 
MIS Other7 11 22 34 
Total external revenue696 590 2,176 2,123 
Intersegment revenue47 43 138 129 
Total MIS743 633 2,314 2,252 
Eliminations(50)(45)(148)(134)
Total MCO$1,472 $1,275 $4,436 $4,178 
(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, 2023Three Months Ended September 30, 2022
U.S.Non-U.STotalU.S.Non-U.STotal
MA:
Decision Solutions$147 $207 $354 $123 $185 $308 
Research and Insights124 98 222 120 81 201 
Data and Information69 131 200 63 113 176 
Total MA340 436 776 306 379 685 
MIS:
Corporate Finance242 104 346 188 89 277 
Structured Finance65 37 102 69 32 101 
Financial Institutions52 74 126 47 62 109 
Public, Project and Infrastructure Finance69 46 115 57 35 92 
Total ratings revenue428 261 689 361 218 579 
MIS Other— 7 7 1 10 11 
Total MIS428 268 696 362 228 590 
Total MCO$768 $704 $1,472 $668 $607 $1,275 
Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
U.S.Non-U.STotalU.S.Non-U.STotal
MA:
Decision Solutions$426 $596 $1,022 $376 $540 $916 
Research and Insights361 293 654 352 255 607 
Data and Information204 380 584 185 347 532 
Total MA991 1,269 2,260 913 1,142 2,055 
MIS:
Corporate Finance727 340 1,067 673 343 1,016 
Structured Finance186 117 303 249 119 368 
Financial Institutions188 225 413 165 203 368 
Public, Project and Infrastructure Finance228 143 371 210 127 337 
Total ratings revenue1,329 825 2,154 1,297 792 2,089 
MIS Other— 22 22 4 30 34 
Total MIS1,329 847 2,176 1,301 822 2,123 
Total MCO$2,320 $2,116 $4,436 $2,214 $1,964 $4,178 
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,
2023202220232022
MA:
U.S.$340 $306 $991 $913 
Non-U.S.:
EMEA300 254 867 774 
Asia-Pacific78 72 229 211 
Americas58 53 173 157 
Total Non-U.S.436 379 1,269 1,142 
Total MA776 685 2,260 2,055 
MIS:
U.S.428 362 1,329 1,301 
Non-U.S.:
EMEA155 139 509 497 
Asia-Pacific67 57 213 211 
Americas46 32 125 114 
Total Non-U.S.268 228 847 822 
Total MIS696 590 2,176 2,123 
Total MCO$1,472 $1,275 $4,436 $4,178 
    
The following tables summarize the split between Transaction Revenue and Recurring Revenue.
Three Months Ended September 30,
20232022
TransactionRecurringTotalTransactionRecurringTotal
Decision Solutions$43 $311 $354 $34 $274 $308 
12 %88 %100 %11 %89 %100 %
Research and Insights$4 $218 $222 $4 $197 $201 
2 %98 %100 %2 %98 %100 %
Data and Information$1 $199 $200 $— $176 $176 
1 %99 %100 %— %100 %100 %
Total MA$48 
(1)
$728 $776 $38 $647 $685 
6 %94 %100 %6 %94 %100 %
Corporate Finance$216 $130 $346 $153 $124 $277 
62 %38 %100 %55 %45 %100 %
Structured Finance$48 $54 $102 $51 $50 $101 
47 %53 %100 %50 %50 %100 %
Financial Institutions$52 $74 $126 $41 $68 $109 
41 %59 %100 %38 %62 %100 %
Public, Project and Infrastructure Finance$71 $44 $115 $50 $42 $92 
62 %38 %100 %54 %46 %100 %
MIS Other$1 $6 $7 $1 $10 $11 
14 %86 %100 %9 %91 %100 %
Total MIS$388 $308 $696 $296 $294 $590 
56 %44 %100 %50 %50 %100 %
Total Moody's Corporation$436 $1,036 $1,472 $334 $941 $1,275 
30 %70 %100 %26 %74 %100 %
Nine Months Ended September 30,
20232022
TransactionRecurringTotalTransactionRecurringTotal
Decision Solutions$126 $896 $1,022 $112 $804 $916 
12 %88 %100 %12 %88 %100 %
Research and Insights$12 $642 $654 $12 $595 $607 
2 %98 %100 %2 %98 %100 %
Data and Information$2 $582 $584 $— $532 $532 
— %100 %100 %— %100 %100 %
Total MA$140 
(1)
$2,120 $2,260 $124 $1,931 $2,055 
6 %94 %100 %6 %94 %100 %
Corporate Finance$682 $385 $1,067 $645 $371 $1,016 
64 %36 %100 %63 %37 %100 %
Structured Finance$142 $161 $303 $217 $151 $368 
47 %53 %100 %59 %41 %100 %
Financial Institutions$195 $218 $413 $159 $209 $368 
47 %53 %100 %43 %57 %100 %
Public, Project and Infrastructure Finance$240 $131 $371 $211 $126 $337 
65 %35 %100 %63 %37 %100 %
MIS Other$4 $18 $22 $3 $31 $34 
18 %82 %100 %9 %91 %100 %
Total MIS$1,263 $913 $2,176 $1,235 $888 $2,123 
58 %42 %100 %58 %42 %100 %
Total Moody's Corporation$1,403 $3,033 $4,436 $1,359 $2,819 $4,178 
32 %68 %100 %33 %67 %100 %
(1) Revenue from software implementation services and risk management advisory projects, while classified by management as transactional revenue, is recognized over time under U.S. GAAP (please also refer to the following table).
The following table presents the timing of revenue recognition:
Three Months Ended September 30, 2023
Nine Months Ended September 30, 2023
MAMISTotalMAMISTotal
Revenue recognized at a point in time$24 $388 $412 $73 $1,263 $1,336 
Revenue recognized over time752 308 1,060 2,187 913 3,100 
Total$776 $696 $1,472 $2,260 $2,176 $4,436 
Three Months Ended September 30, 2022Nine Months Ended September 30, 2022
MAMISTotalMAMISTotal
Revenue recognized at a point in time$20 $296 $316 $77 $1,235 $1,312 
Revenue recognized over time665 294 959 1,978 888 2,866 
Total$685 $590 $1,275 $2,055 $2,123 $4,178 
Unbilled receivables, deferred revenue and remaining performance obligations
Unbilled receivables
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. In addition, 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.
The following table presents the Company's unbilled receivables, which are included within accounts receivable, net, at September 30, 2023 and December 31, 2022:
As of September 30, 2023
As of December 31, 2022
MAMISMAMIS
Unbilled Receivables$119 $429 $148 $385 
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, 2023 and 2022 are as follows:
Three Months Ended September 30, 2023
Three Months Ended September 30, 2022
MAMISTotalMAMISTotal
Balance at June 30,
$1,116 $336 $1,452 $1,019 $347 $1,366 
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(513)(113)(626)(480)(110)(590)
Increases due to amounts billable excluding amounts recognized as revenue during the period410 82 492 389 82 471 
Effect of exchange rate changes(25)(2)(27)(9)(5)(14)
Total changes in deferred revenue(128)(33)(161)(100)(33)(133)
Balance at September 30,
$988 $303 $1,291 $919 $314 $1,233 
Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
MAMISTotalMAMISTotal
Balance at December 31,$1,055 $278 $1,333 $1,039 $296 $1,335 
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(969)(192)(1,161)(883)(186)(1,069)
Increases due to amounts billable excluding amounts recognized as revenue during the period908 218 1,126 819 218 1,037 
Increases due to acquisitions during the period— — — 1 — 1 
Effect of exchange rate changes(6)(1)(7)(57)(14)(71)
Total changes in deferred revenue(67)25 (42)(120)18 (102)
Balance at September 30,
$988 $303 $1,291 $919 $314 $1,233 
Deferred revenue - current$986 $240 $1,226 $917 $238 $1,155 
Deferred revenue - non-current$2 $63 $65 $2 $76 $78 
For the MA segment, the decrease in deferred revenue for the three months ended September 30, 2023 was primarily due to the recognition of annual subscription and maintenance billings from December 2022 and January 2023. For the nine months ended September 30, 2023, the decrease in the deferred revenue balance is attributable to recognition of revenues related to the aforementioned December 2022 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 2023.
For the MIS segment, the changes in the deferred revenue balance during the three and nine months ended September 30, 2023 were primarily related to the significant portion of contract renewals that occurred during the first quarter of 2023 and are generally recognized over a one year period.
Remaining performance obligations
Remaining performance obligations in the MA segment include both amounts recorded as deferred revenue on the balance sheet as of September 30, 2023 as well as amounts not yet invoiced to customers as of September 30, 2023, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of September 30, 2023, 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 65% of this balance within one year, approximately 25% of this balance between one to two years and the remaining amount thereafter.
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, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $91 million. The Company expects to recognize into revenue approximately 25% 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.