SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2024

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.

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 CODM 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 CODM to assess the profitability of each reportable segment. Refer to Note 2 for further details on the components of the Company’s revenue.

	Three Months Ended March 31,
	2024								2023
	MA		MIS		Eliminations		Consolidated		MA		MIS		Eliminations		Consolidated
Total external revenue	$	799	$	987	$	—	$	1,786	$	737	$	733	$	—	$	1,470
Intersegment revenue	3		47		(50)		—		3		45		(48)		—
Revenue	802		1,034		(50)		1,786		740		778		(48)		1,470
Operating, SG&A	564		366		(50)		880		526		336		(48)		814
Adjusted Operating Income	$	238	$	668	$	—	$	906	$	214	$	442	$	—	$	656
Add:
Depreciation and amortization	82		18		—		100		70		18		—		88
Restructuring	2		3		—		5		8		6		—		14
Operating Income							$	801							$	554

The table below shows cumulative restructuring expense incurred through March 31, 2024 by reportable segment.

	MA		MIS		Total
2022 - 2023 Geolocation Restructuring Program	$	110	$	95	$	205

The 2022 - 2023 Geolocation Restructuring Program is more fully discussed in Note 9.

Consolidated Revenue Information by Geographic Area

	Three Months Ended March 31,
	2024		2023
United States	$	969	$	763
Non-U.S.:
EMEA	542		460
Asia-Pacific	155		149
Americas	120		98
Total Non-U.S.	817		707
Total	$	1,786	$	1,470