SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company is organized into two operating segments: MA and MIS and accordingly, the Company reports in two reportable segments: MA and MIS.

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 three LOBs - DS, R&I, and D&I.

The MIS segment consists of five LOBs. The CFG, FIG, PPIF and SFG 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 professional services.

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. Additionally, 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. 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 2018 actual revenue which comprises a “Baseline Pool” established in 2019, which 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,
	2023								2022
	MA		MIS		Eliminations		Consolidated		MA		MIS		Eliminations		Consolidated
Total external revenue	$	3,056	$	2,860	$	—	$	5,916	$	2,769	$	2,699	$	—	$	5,468
Intersegment revenue	13		186		(199)		—		8		174		(182)		—
Revenue	3,069		3,046		(199)		5,916		2,777		2,873		(182)		5,468
Operating, SG&A	2,132		1,386		(199)		3,319		1,937		1,385		(182)		3,140
Adjusted Operating Income	937		1,660		—		2,597		840		1,488		—		2,328
Add:
Depreciation and amortization	298		75		—		373		250		81		—		331
Restructuring	59		28		—		87		49		65		—		114
Operating Income							$	2,137							$	1,883

	Year Ended December 31, 2021
	MA		MIS		Eliminations		Consolidated
Total external revenue	$	2,406	$	3,812	$	—	$	6,218
Intersegment revenue	7		165		(172)		—
Revenue	2,413		3,977		(172)		6,218
Operating, SG&A	1,786		1,503		(172)		3,117
Adjusted Operating Income	627		2,474		—		3,101
Add:
Depreciation and amortization	185		72		—		257
Restructuring	1		(1)		—		—
Operating income							$	2,844

The table below shows cumulative restructuring expense incurred through December 31, 2023 by reportable segment.

	MA		MIS		Total
2022 - 2023 Geolocation Restructuring Program	$	108	$	92	$	200

The 2022 - 2023 Geolocation Restructuring program is more fully discussed in Note 11.

CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA

	Year Ended December 31,
	2023		2022		2021
Revenue:
U.S.	$	3,098	$	2,873	$	3,383
Non-U.S.:
EMEA	1,848		1,682		1,885
Asia-Pacific	577		556		603
Americas	393		357		347
Total Non-U.S.	2,818		2,595		2,835
Total	$	5,916	$	5,468	$	6,218
Long-lived assets at December 31:
U.S.	$	4,323	$	4,408	$	4,449
Non-U.S.	4,562		4,489		4,802
Total	$	8,885	$	8,897	$	9,251