REVENUES

6 Months Ended

Jun. 30, 2024

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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
MA:
Decision Solutions (DS)
Banking	$	131	$	123	$	265	$	254
Insurance	147		133		291		266
KYC	88		78		175		148
Total DS	366		334		731		668
Research and Insights (R&I)	226		217		448		432
Data and Information (D&I)	210		196		422		384
Total external revenue	802		747		1,601		1,484
Intersegment revenue	4		4		7		7
Total MA	806		751		1,608		1,491
MIS:
Corporate Finance (CFG)
Investment-grade	120		94		267		209
High-yield	85		46		152		78
Bank loans	147		68		302		127
Other accounts (1)	173		157		333		307
Total CFG	525		365		1,054		721
Structured Finance (SFG)
Asset-backed securities	34		32		67		59
RMBS	25		25		49		50
CMBS	22		14		39		28
Structured credit	50		31		89		63
Other accounts	—		—		1		1
Total SFG	131		102		245		201
Financial Institutions (FIG)
Banking	115		97		236		197
Insurance	61		35		120		68
Managed investments	15		10		27		16
Other accounts	4		3		7		6
Total FIG	195		145		390		287
Public, Project and Infrastructure Finance (PPIF)
Public finance / sovereign	67		54		126		106
Project and infrastructure	87		73		169		150
Total PPIF	154		127		295		256
Total ratings revenue	1,005		739		1,984		1,465
MIS Other	10		8		18		15
Total external revenue	1,015		747		2,002		1,480
Intersegment revenue	49		46		96		91
Total MIS	1,064		793		2,098		1,571
Eliminations	(53)		(50)		(103)		(98)
Total MCO	$	1,817	$	1,494	$	3,603	$	2,964

(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 June 30, 2024						Three Months Ended June 30, 2023
	U.S.		Non-U.S		Total		U.S.		Non-U.S		Total
MA:
Decision Solutions	$	138	$	228	$	366	$	133	$	201	$	334
Research and Insights	124		102		226		119		98		217
Data and Information	76		134		210		68		128		196
Total MA	338		464		802		320		427		747
MIS:
Corporate Finance	342		183		525		239		126		365
Structured Finance	92		39		131		60		42		102
Financial Institutions	104		91		195		73		72		145
Public, Project and Infrastructure Finance	98		56		154		83		44		127
Total ratings revenue	636		369		1,005		455		284		739
MIS Other	—		10		10		—		8		8
Total MIS	636		379		1,015		455		292		747
Total MCO	$	974	$	843	$	1,817	$	775	$	719	$	1,494
	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
	U.S.		Non-U.S		Total		U.S.		Non-U.S		Total
MA:
Decision Solutions	$	276	$	455	$	731	$	265	$	403	$	668
Research and Insights	246		202		448		237		195		432
Data and Information	153		269		422		135		249		384
Total MA	675		926		1,601		637		847		1,484
MIS:
Corporate Finance	714		340		1,054		485		236		721
Structured Finance	168		77		245		121		80		201
Financial Institutions	202		188		390		136		151		287
Public, Project and Infrastructure Finance	184		111		295		159		97		256
Total ratings revenue	1,268		716		1,984		901		564		1,465
MIS Other	—		18		18		—		15		15
Total MIS	1,268		734		2,002		901		579		1,480
Total MCO	$	1,943	$	1,660	$	3,603	$	1,538	$	1,426	$	2,964

The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
MA:
U.S.	$	338	$	320	$	675	$	637
Non-U.S.:
EMEA	319		298		635		585
Asia-Pacific	82		70		167		148
Americas	63		59		124		114
Total Non-U.S.	464		427		926		847
Total MA	802		747		1,601		1,484
MIS:
U.S.	636		455		1,268		901
Non-U.S.:
EMEA	247		181		473		354
Asia-Pacific	82		75		152		146
Americas	50		36		109		79
Total Non-U.S.	379		292		734		579
Total MIS	1,015		747		2,002		1,480
Total MCO	$	1,817	$	1,494	$	3,603	$	2,964

    

The following table summarizes the split between Transaction Revenue and Recurring Revenue:

	Three Months Ended June 30,
	2024									2023
	Transaction			Recurring			Total			Transaction			Recurring			Total
Decision Solutions	$	35		$	331		$	366		$	43		$	291		$	334
	10		%	90		%	100		%	13		%	87		%	100		%
Research and Insights	$	3		$	223		$	226		$	3		$	214		$	217
	1		%	99		%	100		%	1		%	99		%	100		%
Data and Information	$	1		$	209		$	210		$	1		$	195		$	196
	—		%	100		%	100		%	1		%	99		%	100		%
Total MA (1)	$	39		$	763		$	802		$	47		$	700		$	747
	5		%	95		%	100		%	6		%	94		%	100		%
Corporate Finance	$	388		$	137		$	525		$	236		$	129		$	365
	74		%	26		%	100		%	65		%	35		%	100		%
Structured Finance	$	76		$	55		$	131		$	48		$	54		$	102
	58		%	42		%	100		%	47		%	53		%	100		%
Financial Institutions	$	115		$	80		$	195		$	73		$	72		$	145
	59		%	41		%	100		%	50		%	50		%	100		%
Public, Project and Infrastructure Finance	$	110		$	44		$	154		$	84		$	43		$	127
	71		%	29		%	100		%	66		%	34		%	100		%
MIS Other	$	3		$	7		$	10		$	2		$	6		$	8
	30		%	70		%	100		%	25		%	75		%	100		%
Total MIS	$	692		$	323		$	1,015		$	443		$	304		$	747
	68		%	32		%	100		%	59		%	41		%	100		%
Total Moody's Corporation	$	731		$	1,086		$	1,817		$	490		$	1,004		$	1,494
	40		%	60		%	100		%	33		%	67		%	100		%

	Six Months Ended June 30,
	2024									2023
	Transaction			Recurring			Total			Transaction			Recurring			Total
Decision Solutions	$	72		$	659		$	731		$	83		$	585		$	668
	10		%	90		%	100		%	12		%	88		%	100		%
Research and Insights	$	7		$	441		$	448		$	8		$	424		$	432
	2		%	98		%	100		%	2		%	98		%	100		%
Data and Information	$	2		$	420		$	422		$	1		$	383		$	384
	—		%	100		%	100		%	—		%	100		%	100		%
Total MA (1)	$	81		$	1,520		$	1,601		$	92		$	1,392		$	1,484
	5		%	95		%	100		%	6		%	94		%	100		%
Corporate Finance	$	787		$	267		$	1,054		$	466		$	255		$	721
	75		%	25		%	100		%	65		%	35		%	100		%
Structured Finance	$	135		$	110		$	245		$	94		$	107		$	201
	55		%	45		%	100		%	47		%	53		%	100		%
Financial Institutions	$	237		$	153		$	390		$	143		$	144		$	287
	61		%	39		%	100		%	50		%	50		%	100		%
Public, Project and Infrastructure Finance	$	206		$	89		$	295		$	169		$	87		$	256
	70		%	30		%	100		%	66		%	34		%	100		%
MIS Other	$	4		$	14		$	18		$	3		$	12		$	15
	22		%	78		%	100		%	20		%	80		%	100		%
Total MIS	$	1,369		$	633		$	2,002		$	875		$	605		$	1,480
	68		%	32		%	100		%	59		%	41		%	100		%
Total Moody's Corporation	$	1,450		$	2,153		$	3,603		$	967		$	1,997		$	2,964
	40		%	60		%	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 GAAP (please also refer to the following table).

The following table presents the timing of revenue recognition:

	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
	MA		MIS		Total		MA		MIS		Total
Revenue recognized at a point in time	$	18	$	692	$	710	$	39	$	1,369	$	1,408
Revenue recognized over time	784		323		1,107		1,562		633		2,195
Total	$	802	$	1,015	$	1,817	$	1,601	$	2,002	$	3,603

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	MA		MIS		Total		MA		MIS		Total
Revenue recognized at a point in time	$	22	$	443	$	465	$	49	$	875	$	924
Revenue recognized over time	725		304		1,029		1,435		605		2,040
Total	$	747	$	747	$	1,494	$	1,484	$	1,480	$	2,964

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 June 30, 2024 and December 31, 2023:

	As of June 30, 2024				As of December 31, 2023
	MA		MIS		MA		MIS
Unbilled Receivables	$	139	$	466	$	119	$	415

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 six months ended June 30, 2024 and 2023 are as follows:

	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
	MA		MIS		Total		MA		MIS		Total
Balance at March 31,	$	1,312	$	361	$	1,673	$	1,288	$	360	$	1,648
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(529)		(117)		(646)		(592)		(116)		(708)
Increases due to amounts billable excluding amounts recognized as revenue during the period	365		93		458		417		91		508
Effect of exchange rate changes	(2)		(1)		(3)		3		1		4
Total changes in deferred revenue	(166)		(25)		(191)		(172)		(24)		(196)
Balance at June 30,	$	1,146	$	336	$	1,482	$	1,116	$	336	$	1,452

	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
	MA		MIS		Total		MA		MIS		Total
Balance at December 31,	$	1,111	$	270	$	1,381	$	1,055	$	278	$	1,333
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(752)		(155)		(907)		(788)		(160)		(948)
Increases due to amounts billable excluding amounts recognized as revenue during the period	803		224		1,027		830		216		1,046
Effect of exchange rate changes	(16)		(3)		(19)		19		2		21
Total changes in deferred revenue	35		66		101		61		58		119
Balance at June 30,	$	1,146	$	336	$	1,482	$	1,116	$	336	$	1,452
Deferred revenue - current	$	1,145	$	278	$	1,423	$	1,115	$	270	$	1,385
Deferred revenue - non-current	$	1	$	58	$	59	$	1	$	66	$	67

For the MA segment, the decrease in deferred revenue for the three months ended June 30, 2024 and 2023 was primarily due to the recognition of annual subscription and maintenance billings from December and January. For the six months ended June 30, 2024 and 2023, the increase in deferred revenue is primarily attributable to the high concentration of billings in the first quarter.

For the MIS segment, the change in the deferred revenue balance for all periods presented was primarily related to the significant portion of contract renewals that occur during the first quarter 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 June 30, 2024 as well as amounts not yet invoiced to customers as of June 30, 2024, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $3.6 billion. The Company expects to recognize into revenue approximately 60% 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 June 30, 2024, 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 of unsatisfied performance obligations relating to contracts with an original expected length of one year or less.