10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(MARK ONE)

þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM              TO              .

COMMISSION FILE NUMBER 1-14037

MOODY’S CORPORATION

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

DELAWARE	13-3998945
(STATE OF INCORPORATION)	(I.R.S. EMPLOYER IDENTIFICATION NO.)

7 World Trade Center at 250 Greenwich Street, NEW YORK, NEW YORK 10007

(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

(ZIP CODE)

REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 553-0300.

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

TITLE OF EACH CLASS	NAME OF EACH EXCHANGE ON WHICH REGISTERED
COMMON STOCK, PAR VALUE $.01 PER SHARE	NEW YORK STOCK EXCHANGE

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes þ   No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes ¨  No þ

Indicate by check mark whether the Registrant: (1) has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.    Yes þ   No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes þ   No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer (see definition of “accelerated filer and large accelerated filer” in Exchange Act Rule 12b-2).

Large Accelerated Filer þ     Accelerated Filer ¨    Non-accelerated Filer ¨    Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes ¨   No þ

The aggregate market value of Moody’s Corporation Common Stock held by nonaffiliates* on June 30, 2014 (based upon its closing transaction price on the Composite Tape on such date) was approximately $18.3 billion.

As of January 31, 2015, 202.7 million shares of Common Stock of Moody’s Corporation were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant’s definitive proxy statement for use in connection with its annual meeting of stockholders scheduled to be held on April 14, 2015, are incorporated by reference into Part III of this Form 10-K.

The Index to Exhibits is included as Part IV, Item 15(3) of this Form 10-K.

* Calculated by excluding all shares held by executive officers and directors of the Registrant without conceding that all such persons are “affiliates” of the Registrant for purposes of federal securities laws.

MOODY’S  2014 10K 1

MOODY’S CORPORATION

INDEX TO FORM 10-K

		Page(s)
	Glossary of Terms and Abbreviations		4-9
PART I.
Item 1.	BUSINESS		10
	Background		10
	The Company		10
	Prospects for Growth		10-12
	Competition		12
	Moody’s Strategy		12-13
	Regulation		13-14
	Intellectual Property		14
	Employees		14
	Available Information		15
	Executive Officers of the Registrant		15-16
Item 1A.	RISK FACTORS		17-22
Item 1B.	UNRESOLVED STAFF COMMENTS		22
Item 2.	PROPERTIES		22
Item 3.	LEGAL PROCEEDINGS		23
Item 4.	MINE SAFETY DISCLOSURES		23
PART II.
Item 5.	MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES		24
	Moody’s Purchase of Equity Securities		24
	Common Stock Information and Dividends		25
	Equity Compensation Plan Information		25
	Performance Graph		26
Item 6.	SELECTED FINANCIAL DATA		27
Item 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		28
	The Company		28
	Critical Accounting Estimates		28-35
	Reportable Segments		35-36
	Results of Operations		36-46
	Market Risk		47
	Liquidity and Capital Resources		48-53
	2015 Outlook		53
	Recently Issued Accounting Pronouncements		54
	Contingencies		54
	Forward-Looking Statements		54-55
Item 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		55
Item 8.	FINANCIAL STATEMENTS		56-109
Item 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE		110
Item 9A.	CONTROLS AND PROCEDURES		110
Item 9B.	OTHER INFORMATION		110

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		Page(s)
	PART III.
Item 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATION GOVERNANCE		111
Item 11.	EXECUTIVE COMPENSATION		111
Item 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS		111
Item 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE		111
Item 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES		111
	PART IV.
Item 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES		112
SIGNATURES			113
INDEX TO EXHIBITS			114-117

Exhibits filed Herewith
10.15	2004 Moody’s Corporation Covered Employee Cash Incentive Plan (as amended February 10, 2015)
10.26	Profit Participation Plan of Moody’s Corporation (amended and restated January 1, 2014)
10.30	Third Amendment to the Moody’s Corporation Career Transition Plan
10.33	Second Amendment to the Moody’s Corporation Cafeteria Plan (effective January 1, 2008)
12	Statement of Computation of Ratios of Earnings to Fixed Charges
21	SUBSIDIARIES OF THE REGISTRANT
23.1	CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
31.1	Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Chief Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Chief Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Chief Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.DEF	XBRL Definitions Linkbase Document
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

MOODY’S  2014 10K 3

GLOSSARY OF TERMS AND ABBREVIATIONS

The following terms, abbreviations and acronyms are used to identify frequently used terms in this report:

Term	Definition
Adjusted Operating Income	Operating income excluding restructuring, depreciation and amortization and a goodwill impairment charge
Adjusted Operating Margin	Adjusted Operating Income divided by revenue
Amba	Amba Investment Services; a provider of investment research and quantitative analytics for global financial institutions; a subsidiary of the Company acquired 100% of Amba in December 2013.
Americas	Represents countries within North and South America, excluding the U.S.
AOCI	Accumulated other comprehensive income (loss); a separate component of shareholders’ equity (deficit); includes accumulated gains & losses on cash flow and net investment hedges, certain gains and losses relating to pension and other retirement benefits obligations and foreign currency translation adjustments.
ASC	The FASB Accounting Standards Codification; the sole source of authoritative GAAP as of July 1, 2009 except for rules and interpretive releases of the SEC, which are also sources of authoritative GAAP for SEC registrants
Asia-Pacific	Represents countries in Asia also including but not limited to: Australia and its proximate islands, China, India, Indonesia, Japan, Korea, Malaysia, Singapore and Thailand
ASU	The FASB Accounting Standards Updates to the ASC. It also provides background information for accounting guidance and the bases for conclusions on the changes in the ASC. ASUs are not considered authoritative until codified into the ASC
Basel II	Capital adequacy framework published in June 2004 by the Basel Committee on Banking Supervision
Basel III	A new global regulatory standard on bank capital adequacy and liquidity agreed by the members of the Basel Committee on Banking Supervision. Basel III was developed in a response to the deficiencies in financial regulation revealed by the global financial crisis. Basel III strengthens bank capital requirements and introduces new regulatory requirements on bank liquidity and bank leverage.
Board	The board of directors of the Company
Bps	Basis points
Canary Wharf Lease	Operating lease agreement entered into on February 6, 2008 for office space in London, England, occupied by the Company in the second half of 2009
CFG	Corporate finance group; an LOB of MIS
CLO	Collateralized loan obligation
CMBS	Commercial mortgage-backed securities; part of CREF
Commission	European Commission
Common Stock	The Company’s common stock
Company	Moody’s Corporation and its subsidiaries; MCO; Moody’s
Copal	Copal Partners; an acquisition completed in November 2011; part of the MA segment; leading provider of outsourced research and analytical services to institutional investors
Copal Amba	Operating segment created in January 2014 that consists of all operations from Copal as well as the operations of Amba. The Copal Amba operating segment provides outsourced research and analytical services to the global financial and corporate sectors
Council	Council of the European Union
COSO	Committee of Sponsoring Organizations of the Treadway Commission

4 MOODY’S  2014 10K

Term	Definition
CP	Commercial paper
CRAs	Credit rating agencies
CRA1	Regulation (EC) No 1060/2009 of the European Parliament and of the Council, establishing an oversight regime for the CRA industry in the EU
CRA2	Regulation (EC) No 513/2011 of the European Parliament and of the Council, which transferred direct supervisory responsibility of the registered CRA industry in the EU to ESMA
CRA3	Regulation (EC) No 462/2013 of the European Parliament and of the Council, which updated the regulatory regimes imposing additional procedural requirements on CRAs
CREF	Commercial real estate finance which includes REITs, commercial real estate collateralized debt obligations and CMBS; part of SFG
CreditView	Research product offered by MA that provides credit professionals a comprehensive, consolidated and streamlined view of credit information
CSI	CSI Global Education, Inc.; an acquisition completed in November 2010; part of the MA segment; a provider of financial learning, credentials, and certification in Canada
D&B Business	Old D&B’s Dun & Bradstreet operating company
DBPPs	Defined benefit pension plans
DCF	Discounted cash flow; a fair value calculation methodology whereby future projected cash flows are discounted back to their present value
Debt/EBITDA	Ratio of Total Debt to EBITDA
Directors’ Plan	The 1998 Moody’s Corporation Non-Employee Directors’ Stock Incentive Plan
Distribution Date	September 30, 2000; the date which Old D&B separated into two publicly traded companies – Moody’s Corporation and New D&B
EBITDA	Earnings before interest, taxes, depreciation and amortization
ECB	European Central Bank
EMEA	Represents countries within Europe, the Middle East and Africa
EPS	Earnings per share
ERS	The enterprise risk solutions LOB within MA; offers risk management software products as well as software implementation services and related risk management advisory engagements
ESMA	European Securities and Market Authority
ESP	Estimated Selling Price; estimate of selling price, as defined in the ASC, at which the vendor would transact if the deliverable were sold by the vendor regularly on a stand-alone basis
ESPP	The 1999 Moody’s Corporation Employee Stock Purchase Plan
ETR	Effective tax rate
EU	European Union
EUR	Euros
European Ratings Platform	Central credit ratings website administered by ESMA
Excess Tax Benefit	The difference between the tax benefit realized at exercise of an option or delivery of a restricted share and the tax benefit recorded at the time that the option or restricted share is expensed under GAAP
Exchange Act	The Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board

MOODY’S  2014 10K 5

Term	Definition
FIG	Financial institutions group; an LOB of MIS
Fitch	Fitch Ratings, a part of the Fitch Group
Financial Reform Act	Dodd-Frank Wall Street Reform and Consumer Protection Act
Free Cash Flow	Net cash provided by operating activities less cash paid for capital additions
FSTC	Financial Services Training and Certifications; a reporting unit within the MA segment that includes on-line and classroom-based training services and CSI
FX	Foreign exchange
GAAP	U.S. Generally Accepted Accounting Principles
GBP	British pounds
GDP	Gross domestic product
ICRA	ICRA Limited; a leading provider of credit ratings and research in India. The Company previously held 28.5% equity ownership and in June 2014, increased that ownership stake to 50.06% through the acquisition of additional shares
ICRA Gain	Gain relating to the step-acquisition of ICRA; U.S. GAAP requires the remeasurement to fair value of the previously held non-controlling shares upon obtaining a controlling interest in a step-acquisition. This remeasurement of the Company’s equity investment in ICRA to fair value resulted in a pre-tax gain of $102.8 million ($78.5 million after tax) in the second quarter of 2014
Intellectual Property	The Company’s intellectual property, including but not limited to proprietary information, trademarks, research, software tools and applications, models and methodologies, databases, domain names, and other proprietary materials
IRS	Internal Revenue Service
IT	Information technology
KIS	Korea Investors Service, Inc.; a leading Korean rating agency and consolidated subsidiary of the Company
KIS Pricing	Korea Investors Service Pricing, Inc.; a Korean provider of fixed income securities pricing and consolidated subsidiary of the Company
Korea	Republic of South Korea
Legacy Tax Matter(s)	Exposures to certain potential tax liabilities assumed in connection with the 2000 Distribution
Lewtan	Lewtan Technologies; a leading provider of analytical tools and data for the global structured finance market; an acquisition completed in October 2014
LIBOR	London Interbank Offered Rate
LOB	Line of Business

6 MOODY’S  2014 10K

Term	Definition
MA	Moody’s Analytics – a reportable segment of MCO formed in January 2008 which provides a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets
M&A	Mergers and acquisitions
Make Whole Amount	The prepayment penalty relating to the Series 2005-1 Notes and Series 2007-1 Notes; a premium based on the excess, if any, of the discounted value of the remaining scheduled payments over the prepaid principal
MCO	Moody’s Corporation and its subsidiaries; the Company; Moody’s
MD&A	Management’s Discussion and Analysis of Financial Condition and Results of Operations
MIS	Moody’s Investors Service – a reportable segment of MCO
MIS Other	Consists of non-ratings revenue from ICRA, KIS Pricing and KIS Research. These businesses are managed by MIS; an LOB of MIS
Moody’s	Moody’s Corporation and its subsidiaries; MCO; the Company
Net Income	Earnings attributable to Moody’s Corporation, which excludes the portion of net income from consolidated entities attributable to non-controlling shareholders
New D&B	The New D&B Corporation – which comprises the D&B business after September 30, 2000
NM	Not-meaningful percentage change (over 400%)
NRSRO	Nationally Recognized Statistical Rating Organization
OCI	Other comprehensive income (loss); includes gains and losses on cash flow and net investment hedges, certain gains and losses relating to pension and other retirement benefit obligations and foreign currency translation adjustments.
Old D&B	The former Dun and Bradstreet Company which distributed New D&B shares on September 30, 2000, and was renamed Moody’s Corporation
Other Retirement Plans	The U.S. retirement healthcare and U.S. retirement life insurance plans
PPIF	Public, project and infrastructure finance; an LOB of MIS
Profit Participation Plan	Defined contribution profit participation plan that covers substantially all U.S. employees of the Company
PPP	Profit Participation Plan
PS	Professional Services; an LOB of MA
Redeemable Noncontrolling Interest	Represents minority shareholders’ interest in entities which are controlled but not wholly-owned by Moody’s and for which Moody’s obligation to redeem the minority shareholders’ interest is represented by a put/call relationship
Reform Act	Credit Rating Agency Reform Act of 2006
REITs	Real estate investment trusts
Relationship Revenue	In MIS, excluding MIS Other, relationship revenue represents the recurring monitoring of a rated debt obligation and/or entities that issue such obligations, as well as revenue from programs such as commercial paper, medium-term notes and shelf registrations. In MIS Other, relationship revenue represents subscription-based revenue. For MA, relationship revenue represents subscription-based revenue and maintenance revenue
Reorganization	The Company’s business reorganization announced in August 2007 which resulted in two new reportable segments (MIS and MA) beginning in January 2008
Retirement Plans	Moody’s funded and unfunded U.S. pension plans, the U.S. post-retirement healthcare plans and the U.S. post-retirement life insurance plans
RMBS	Residential mortgage-backed securities; part of SFG

MOODY’S  2014 10K 7

Term	Definition
S&P	Standard & Poor’s, a division of McGraw-Hill Financial, Inc.
SEC	Securities and Exchange Commission
Securities Act	Securities Act of 1933
Series 2005-1 Notes	Principal amount of $300 million, 4.98% senior unsecured notes; notes were paid in 2014
Series 2007-1 Notes	Principal amount of $300 million, 6.06% senior unsecured notes due in September 2017 pursuant to the 2007 Agreement
SFG	Structured finance group; an LOB of MIS
SG&A	Selling, general and administrative expenses
SIV	Structured Investment Vehicle
Stock Plans	The Old D&B’s 1998 Key Employees’ Stock Incentive Plan and the Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan
Total Debt	Current and long-term portion of debt as reflected on the consolidated balance sheets, excluding current accounts payable and accrued liabilities incurred in the ordinary course of business
TPE	Third party evidence, as defined in the ASC, used to determine selling price based on a vendor’s or any competitor’s largely interchangeable products or services in standalone sales transactions to similarly situated customers
Transaction Revenue	For MIS, excluding MIS Other, revenue representing the initial rating of a new debt issuance as well as other one-time fees. In MIS Other, transaction revenue represents revenue from professional services and outsourcing engagements. For MA, transaction revenue represents software license fees and revenue from risk management advisory projects, training and certification services, and knowledge outsourcing engagements
U.K.	United Kingdom
U.S.	United States
USD	U.S. dollar
UTBs	Unrecognized tax benefits
UTPs	Uncertain tax positions
VSOE	Vendor specific objective evidence; evidence, as defined in the ASC, of selling price limited to either of the following: the price charged for a deliverable when it is sold separately, or for a deliverable not yet being sold separately, the price established by management having the relevant authority
WACC	Weighted average cost of capital
WebEquity	WebEquity Solutions LLC; a leading provider of cloud-based loan origination solutions for financial institutions. The Company acquired WebEquity on July 17, 2014
1998 Plan	Old D&B’s 1998 Key Employees’ Stock Incentive Plan
2000 Distribution	The distribution by Old D&B to its shareholders of all of the outstanding shares of New D&B common stock on September 30, 2000
2000 Distribution Agreement	Agreement governing certain ongoing relationships between the Company and New D&B after the 2000 Distribution including the sharing of any liabilities for the payment of taxes, penalties and interest resulting from unfavorable IRS determinations on certain tax matters and certain other potential tax liabilities
2001 Plan	The Amended and Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan
2005 Agreement	Note purchase agreement dated September 30, 2005 relating to the Series 2005-1 Notes

8 MOODY’S  2014 10K

Term	Definition
2007 Agreement	Note purchase agreement dated September 7, 2007 relating to the Series 2007-1 Notes
2007 Facility	Revolving credit facility of $1 billion entered into on September 28, 2007, expiring in 2012
2008 Term Loan	Five-year $150.0 million senior unsecured term loan entered into by the Company on May 7, 2008
2010 Indenture	Supplemental indenture and related agreements dated August 19, 2010, relating to the 2010 Senior Notes
2010 Senior Notes	Principal amount of $500.0 million, 5.50% senior unsecured notes due in September 2020 pursuant to the 2010 Indenture
2012 Facility	Revolving credit facility of $1 billion entered into on April 18, 2012, maturing in 2017
2012 Indenture	Supplemental indenture and related agreements dated August 18, 2012, relating to the 2012 Senior Notes
2012 Senior Notes	Principal amount of $500 million, 4.50% senior unsecured notes due in September 2022 pursuant to the 2012 Indenture
2013 Indenture	Supplemental indenture and related agreements dated August 12, 2013, relating to the 2013 Senior Notes
2013 Senior Notes	Principal amount of $500 million, 4.875% senior unsecured notes due in February 2024 pursuant to the 2013 Indenture
2014 Indenture	Supplemental indenture and related agreements dated July 16, 2014, relating to the 2014 Senior Notes
2014 Senior Notes (5-Year)	Principal amount of $450 million, 2.75% senior unsecured notes due in July 2019
2014 Senior Notes (30-Year)	Principal amount of $300 million, 5.25% senior unsecured notes due in July 2044
7WTC	The Company’s corporate headquarters located at 7 World Trade Center
7WTC Lease	Operating lease agreement entered into on October 20, 2006

MOODY’S  2014 10K 9

PART I

ITEM 1. BUSINESS

BACKGROUND

As used in this report, except where the context indicates otherwise, the terms “Moody’s” or the “Company” refer to Moody’s Corporation, a Delaware corporation, and its subsidiaries. The Company’s executive offices are located at 7 World Trade Center at 250 Greenwich Street, New York, NY 10007 and its telephone number is (212) 553-0300.

THE COMPANY

Moody’s is a provider of (i) credit ratings, (ii) credit, capital markets and economic related research, data and analytical tools, (iii) software solutions and related risk management services, (iv) quantitative credit risk measures, financial services training and certification services and (v) outsourced research and analytical services to financial institution customers. Moody’s reports in two reportable segments: MIS and MA. Financial information and operating results of these segments, including revenue, expenses and operating income, are included in Part II, Item 8. Financial Statements of this annual report, and are herein incorporated by reference.

MIS publishes credit ratings on a wide range of debt obligations and the entities that issue such obligations in markets worldwide, including various corporate and governmental obligations, structured finance securities and commercial paper programs. Ratings revenue is derived from the originators and issuers of such transactions who use MIS ratings to support the distribution of their debt issues to investors. MIS provides ratings in more than 120 countries. Ratings are disseminated via press releases to the public through a variety of print and electronic media, including the Internet and real-time information systems widely used by securities traders and investors. As of December 31, 2014, MIS had ratings relationships with approximately 11,000 corporate issuers and approximately 21,000 public finance issuers. Additionally, the Company has rated and currently monitors ratings on approximately 72,000 structured finance obligations (representing approximately 12,000 transactions). The aforementioned amounts relating to the number of issuers and transactions represent issuers or transactions that had an active rating at any point during the year ended December 31, 2014. Additionally, MIS earns revenue from certain non-ratings-related operations which consist primarily of the distribution of research and fixed income pricing services in the Asia-Pacific region and from ICRA non-ratings services. The revenue from these operations is included in the MIS Other LOB and is not material to the results of the MIS segment.

The MA segment develops a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets. Within its Research, Data and Analytics business, MA distributes research and data developed by MIS as part of its ratings process, including in-depth research on major debt issuers, industry studies, commentary on topical credit related events and also provides economic research and credit data and analytical tools such as quantitative credit risk scores. Within its Enterprise Risk Solutions business, MA provides software solutions as well as related risk management services. Within its Professional Services business it provides outsourced research and analytical services along with financial training and certification programs. MA customers represent more than 4,700 institutions worldwide operating in approximately 130 countries. During 2014 Moody’s research web site was accessed by over 245,000 individuals including 33,000 client users.

The Company operated as part of “Old D&B” until September 30, 2000, when Old D&B separated into two publicly traded companies – Moody’s Corporation and New D&B. At that time, Old D&B distributed to its shareholders shares of New D&B stock. New D&B comprised the business of Old D&B’s Dun & Bradstreet operating company. The remaining business of Old D&B consisted solely of the business of providing ratings and related research and credit risk management services and was renamed Moody’s Corporation. For purposes of governing certain ongoing relationships between the Company and New D&B after the 2000 Distribution, the Company and New D&B entered into various agreements including a distribution agreement, tax allocation agreement and employee benefits agreement.

PROSPECTS FOR GROWTH

Over recent decades, global fixed-income markets have grown significantly both in terms of the amount and the types of securities or other obligations outstanding. Beginning in mid-2007, there was a severe market disruption and associated financial crisis both in the

10 MOODY’S  2014 10K

developed and emerging markets resulting in a global decline in issuance activity for some significant asset classes and weak economic performance in advanced economies. Since this financial crisis, many markets and economies have recovered and Moody’s believes that the overall long-term outlook remains favorable for continued growth of the global fixed-income market and related financial information market, which includes information such as credit opinions, research, data, analytics, risk management tools and related services.

Moody’s growth is influenced by a number of trends that impact financial information markets including:

» Health of the world’s major economies;

» Debt capital markets activity;

» Disintermediation of credit markets;

» Fiscal and monetary policy of governments;

» Changing regulatory requirements; and

» Business investment spending.

Moody’s is well positioned to benefit from a continued growth in global fixed-income market activity and a more informed use of credit ratings as well as research and related analytical products in an environment with heightened attention to credit risk analysis and management. Moody’s expects that these developments will support continued long-term demand for high-quality, independent credit opinions, research, data, analytics, risk management tools and related services.

Strong secular trends should continue to provide long-term growth opportunities. Moody’s key growth drivers include debt market issuance driven by global GDP growth, continued disintermediation of fixed-income markets in both developed and emerging economies that drives issuance and demand for new products and services, growth in MA driven by further penetration into MA’s client base and expansion of bank and insurance risk regulatory requirements, pricing opportunities aligned with value and advances in information technology.

Growth in global fixed income markets in a given year is dependent on many macroeconomic and capital market factors including interest rates, business investment spending, corporate refinancing needs, merger and acquisition activity, issuer profits, consumer borrowing levels and securitization activity. Rating fees paid by debt issuers account for most of the revenue of MIS. Therefore, a substantial portion of MIS’s revenue is dependent upon the dollar-equivalent volume and number of ratable debt securities issued in the global capital markets. MIS’s results can be affected by factors such as the performance and prospects for growth of the major world economies, the fiscal and monetary policies pursued by their governments and the decisions of issuers to request MIS ratings to aid investors in their investment decisions. However, annual fee arrangements with frequent debt issuers, annual debt monitoring fees and annual fees from commercial paper and medium-term note programs, bank and insurance company financial strength ratings, mutual fund ratings, and other areas partially mitigate MIS’s dependence on the volume or number of new debt securities issued in the global fixed-income markets. Furthermore, the strong growth seen in the issuance of structured finance securities from the mid-1990’s reversed dramatically in 2008 due to market turmoil, with continued declines seen in 2009 and 2010, before stabilizing in 2011 with Moody’s experiencing revenue growth in this market beginning in 2012. Despite significant declines from peak market issuance levels, Moody’s believes that structured finance securities will continue to play a role in global fixed-income markets and provide opportunities for longer term revenue growth. Moody’s will continue to monitor this market and adapt to meet the changing needs of its participants.

The pace of change in technology and communication over the past two decades makes information about investment alternatives widely available throughout the world and facilitates issuers’ ability to place securities outside their national markets and investors’ capacity to obtain information about securities issued outside their national markets. Technology also allows issuers and investors the ability to more readily obtain information about new financing techniques and new types of securities that they may wish to purchase or sell, which in the absence of the appropriate technology may not be readily or easily obtainable. This availability of information promotes the ongoing integration and expansion of financial markets worldwide giving issuers and investors access to a wider range of established and newer capital markets. As technology provides broader access to worldwide markets, it also results in a greater need for credible, globally comparable opinions about credit risk, data, analytics and related services. Additionally, information technology also provides opportunities to further build a global platform to support Moody’s continued expansion in developing markets.

An ongoing trend in the world’s capital markets is the disintermediation of financial systems. Issuers increasingly raise capital in the global public capital markets, in addition to, or in substitution for, traditional financial intermediaries. Moreover, financial intermediaries have sold assets in the global public capital markets, in addition to, or instead of, retaining those assets. Moody’s believes that debt capital markets offer advantages in capacity and efficiency compared to the traditional banking systems and that the trend of increased disintermediation will continue. Further, disintermediation has continued because of the ongoing low interest rate environment and bank deleveraging, which has encouraged a number of corporations and other entities to seek alternative funding in the bond markets.

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Moody’s also observes disintermediation in key emerging markets where economic growth may outpace internal banking system capacity. Thus, disintermediation is expected to continue over the longer-term, with Moody’s targeting investment and resources to those markets where disintermediation and bond issuance is expected to remain robust.

In response to the credit market disruptions beginning in mid-2007 and, ongoing volatility in the global capital markets, and new regulatory requirements, financial institutions are investing in people, processes and systems to enhance risk management and compliance functions. Regulations such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, Basel II, Basel III, Solvency II and others may stimulate demand for MA products. Financial institutions are also investing in advanced qualitative and quantitative tools and services to support their management of complex balance sheets and diverse portfolios as well as operating costs. MA offers a suite of risk management products and services to address these needs, including but not limited to risk management software, economic analysis, training and professional services.

Legislative bodies and regulators in the U.S., Europe and other jurisdictions continue to conduct regulatory reviews of CRAs, which may result in, for example, an increased number of competitors, changes to the business model or restrictions on certain business activities of MIS, removal of references to ratings in certain regulations, or increased costs of doing business for MIS. Therefore, in order to broaden the potential for expansion of non-ratings services, Moody’s reorganized in January 2008 into two distinct businesses: MIS, consisting primarily of the ratings business, and MA, which conducts activities including the sale of credit research produced by MIS and the production and sale of other economic and credit-related products and services. The reorganization broadens the opportunities for expansion by MA into activities that may have otherwise been restricted for MIS, due to the potential for conflicts of interest with the ratings business. At present, Moody’s is unable to assess the nature and effect that any regulatory changes may have on future growth opportunities.

Moody’s operations are subject to various risks, as more fully described in Part I, Item 1A “Risk Factors,” inherent in conducting business on a global basis. Such risks include currency fluctuations and possible nationalization, expropriation, exchange and price controls, changes in the availability of data from public sector sources, limits on providing information across borders and other restrictive governmental actions.

COMPETITION

MIS competes with other CRAs and with investment banks and brokerage firms that offer credit opinions and research. Many users of MIS’s ratings also have in-house credit research capabilities. MIS’s largest competitor in the global credit rating business is Standard & Poor’s Ratings Services (S&P), a division of McGraw Hill Financial. There are some rating markets, based on industry, geography and/or instrument type, in which Moody’s has made investments and obtained market positions superior to S&P, while in other markets, the reverse is true.

In addition to S&P, MIS’s competitors include Fitch Ratings, Dominion Bond Rating Service, A.M. Best Company, Japan Credit Rating Agency Ltd., Kroll Bond Rating Agency Inc., Morningstar Inc. and Egan-Jones Ratings Company. In Europe, examples of competitors include Euler Hermes Rating, Feri EuroRating Services AG, Creditreform Rating AG, ICAP Group and Companhia Portuguesa de Rating. There are additional competitors in other regions and countries, for example, in China, where Moody’s operates through a joint venture. These competitors include China Lianhe Credit Rating Co Ltd., Shanghai Brilliance Credit Rating & Investors Service Co Ltd., Dagong Global Credit Rating Co Ltd. and Pengyuan Credit Rating Co Ltd.

MA competes broadly in the financial information industry against diversified competitors such as Thomson Reuters, Bloomberg, S&P Capital IQ, Fitch Solutions, Dun & Bradstreet, IBM, Wolters Kluwer, Sungard, SAS, Fiserv, MSCI and Markit Group among others. MA’s main competitors within RD&A include S&P Capital IQ, CreditSights, Thomson Reuters, Intex, IHS Global Insight, BlackRock Solutions, FactSet and other providers of fixed income analytics, valuations, economic data and research. In ERS, MA faces competition from both large software providers such as IBM Algorithmics, SunGard, SAS, Oracle, Misys, Oliver Wyman, Verisk and various other vendors and in-house solutions. Within Professional Services, MA competes with Omega Performance, DC Gardner, and a host of financial training and education firms, and with Evalueserve, CRISIL Global Research & Analytics, and other providers of outsourced research and professional services, respectively.

MOODY’S STRATEGY

Moody’s corporate strategy is to be the world’s most respected authority serving financial risk-sensitive markets. The key aspects to implement this strategy are to:

» Defend and enhance the core ratings and research business of MIS;

» Build MA’s position as a leading provider of risk management solutions to financial institutions; and

» Invest in strategic growth opportunities.

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Moody’s will make investments to defend and enhance its core businesses in an attempt to position the Company to fully capture market opportunities resulting from global debt capital market expansion and increased business investment spending. Moody’s will also make strategic investments to achieve scale in attractive financial information markets, move into attractive product and service adjacencies where the Company can leverage its brand, extend its thought leadership and expand its geographic presence in high growth emerging markets.

To broaden the Company’s potential, MA provides a wide range of products and services to enable financial institutions to better manage risk. As such, MA adds to the Company’s value proposition in three ways. First, MA’s subscription businesses provide a significant base of recurring revenue to offset cyclicality in ratings issuance volumes that may result in volatility to MIS’s revenues. Second, MA products and services, such as financial training and professional services on research and risk management best practices, provide opportunities for entry into emerging markets before debt capital markets fully develop and thus present long-term growth opportunities for the ratings business. Finally, MA’s integrated risk management software platform embeds Moody’s solutions deep into the technology infrastructure of banks and insurance companies worldwide.

Moody’s invests in initiatives to implement the Company’s strategy, including internally-led organic development and targeted acquisitions. Example initiatives include:

» Enhancements to ratings quality and product extensions;

» Investments that extend ownership and participation in joint ventures and strategic alliances;

» Headcount growth to meet customer demand for new products and services;

» Selective, bolt-on acquisitions that accelerate the ability to scale and grow Moody’s businesses; and

» Expansion in emerging markets.

During 2014, Moody’s completed several strategic transactions in MIS and MA. In June, Moody’s secured majority control of ICRA Ltd., which is a leading provider of credit ratings and research in India, increasing its ownership position from 28.5% to just over 50.0%. In December, Moody’s completed the acquisition of the remaining outstanding interest of Copal Amba (formed through the acquisitions of Copal Partners in 2011 and Amba Investment Services in 2013) and now owns 100% of the company.

Moody’s also made two acquisitions in MA to enhance and expand its product and service offerings to enable financial institutions to better manage risk. In July, Moody’s acquired WebEquity Solutions, LLC, which is a leading provider of cloud-based loan origination solutions for financial institutions. The WebEquity acquisition strengthens MA’s position as a leader in loan origination software and bolsters its suite of award-winning risk management products for banks, insurance companies and corporations. In October, Moody’s acquired Lewtan Technologies, which is a leading provider of analytical tools and data for the global structured finance market. Lewtan provides solutions to issuers, investors, underwriters and others to administer, monitor and value securitized transactions.

REGULATION

MIS and many of the securities that it rates are subject to extensive regulation in both the U.S. and in other countries (including by state and local authorities). Thus, existing and proposed laws and regulations can impact the Company’s operations and the markets for securities that it rates. Additional laws and regulations have been adopted but not yet implemented or have been proposed or are being considered. Each of the existing, adopted, proposed and potential laws and regulations can increase the costs and legal risk associated with the issuance of credit ratings and may negatively impact Moody’s operations or profitability, the Company’s ability to compete, or result in changes in the demand for credit ratings, in the manner in which ratings are utilized and in the manner in which Moody’s operates.

The regulatory landscape has changed rapidly in recent years, and continues to evolve. In the EU, the CRA industry is registered and supervised through a pan-European regulatory framework. The European Securities and Markets Authority has direct supervisory responsibility for the registered CRA industry throughout the EU. MIS is a registered entity and is therefore subject to formal regulation and periodic inspection. Applicable rules include procedural requirements with respect to ratings of sovereign issuers, liability for intentional or grossly negligent failure to abide by applicable regulations, mandatory rotation requirements of CRAs hired by issuers of securities for ratings of resecuritizations, restrictions on CRAs or their shareholders if certain ownership thresholds are crossed, and additional procedural and substantive requirements on the pricing of services.

On January 6, 2015, two additional rules (generally referred to as “Regulatory Technical Standards” or “RTSs”) of direct relevance to the CRA industry were published in the Official Journal of the European Union: (i) CRAs’ reporting requirements to ESMA on their fees; and (ii) the types of information that CRAs are to provide about certain ratings (those that were paid for by issuers) for publication on a central website administered by ESMA (the European Ratings Platform). The RTSs were the final pieces of the rulemaking requirements

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that CRA3 imposed on ESMA and the EU’s legislative tripartite (the European Commission, the European Parliament and the Council of the European Union). Separately, CRA3 also requires that ESMA and / or the European Commission produce several reports on the industry’s structure and the use of ratings. These reports are expected to be published by year end 2015.

In the U.S., CRAs are subject to extensive regulation primarily pursuant to the Reform Act and the Financial Reform Act. The SEC is required by these legislative acts to publish two annual reports to Congress on NRSROs. The Financial Reform Act requires the SEC to examine each NRSRO once a year and issue an annual report summarizing the examination findings, among other requirements. The annual report required by the Reform Act details the SEC’s views on the state of competition, transparency and conflicts of interests among NRSROs, among other requirements.

The SEC voted in August 2014 to adopt its final rules for NRSROs as required by the Financial Reform Act. The final rules differ from earlier proposals by including additional measures regarding: (i) sales and marketing activities; and (ii) the design and enforcement of internal controls for the rating process. The Company has made and continues to make substantial IT and other investments. Consequently, the Company will be in a position to implement the relevant compliance obligations by the set deadlines, generally ranging from 60 days to 9 months following the September 15, 2014 publication of the final rules in the Federal Register.

In light of the regulations that have gone into effect in both the EU and the U.S. (as well as many other countries), from time to time and as a matter of course pursuant to their enabling legislation these regulatory authorities have and will continue to publish reports that describe their oversight activities over the industry. In addition, other legislation and regulation relating to credit rating and research services is being considered by local, national and multinational bodies and this type of activity is likely to continue in the future. Finally, in certain countries, governments may provide financial or other support to locally-based rating agencies. For example, governments may from time to time establish official rating agencies or credit ratings criteria or procedures for evaluating local issuers. If enacted, any such legislation and regulation could change the competitive landscape in which MIS operates. The legal status of rating agencies has been addressed by courts in various decisions and is likely to be considered and addressed in legal proceedings from time to time in the future. Management of the Company cannot predict whether these or any other proposals will be enacted, the outcome of any pending or possible future legal proceedings, or regulatory or legislative actions, or the ultimate impact of any such matters on the competitive position, financial position or results of operations of Moody’s.

INTELLECTUAL PROPERTY

Moody’s and its affiliates own and control a variety of intellectual property, including but not limited to proprietary information, trademarks, research, software tools and applications, models and methodologies, databases, domain names, and other proprietary materials that, in the aggregate, are of material importance to Moody’s business. Management of Moody’s believes that each of the trademarks and related corporate names, marks and logos containing the term “Moody’s” are of material importance to the Company.

The Company, primarily through MA, licenses certain of its databases, software applications, credit risk models, training courses in credit risk and capital markets, research and other publications and services that contain Intellectual Property to its customers. These licenses are provided pursuant to standard fee-bearing agreements containing customary restrictions and intellectual property protections.

In addition, Moody’s licenses certain technology and other intellectual property rights owned and controlled by others. Specifically, Moody’s licenses financial information (such as market and index data, financial statement data, third party research, default data, and security identifiers) as well as software development tools and libraries. The Company obtains such technology and intellectual property rights from generally available commercial sources. Most of such technology and intellectual property is available from a variety of sources. Although certain financial information (particularly security identifiers and certain pricing or index data) is available only from a limited number of sources, Moody’s does not believe it is dependent on any one data source for a material aspect of its business.

The Company considers its Intellectual Property to be proprietary, and Moody’s relies on a combination of copyright, trademark, trade secret, patent, non-disclosure and other contractual safeguards for protection. Moody’s also pursues instances of third-party infringement of its Intellectual Property in order to protect the Company’s rights. The Company owns two patents. None of the Intellectual Property is subject to a specific expiration date, except to the extent that the patents and the copyright in items that the Company authors (such as credit reports, research, software, and other written opinions) expire pursuant to relevant law.

The names of Moody’s products and services referred to herein are trademarks, service marks or registered trademarks or service marks owned by or licensed to Moody’s or one or more of its subsidiaries.

EMPLOYEES

As of December 31, 2014 the number of full-time equivalent employees of Moody’s was approximately 9,900.

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AVAILABLE INFORMATION

Moody’s investor relations Internet website is http://ir.moodys.com/. Under the “SEC Filings” tab at this website, the Company makes available free of charge its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports as soon as reasonably practicable after they are filed with, or furnished to, the SEC.

The SEC maintains an internet site that contains annual, quarterly and current reports, proxy and other information statements that the Company files electronically with the SEC. The SEC’s internet site is http://www.sec.gov/.

Executive Officers of the Registrant

Name, Age and Position	Biographical Data
Mark E. Almeida, 55 President, Moody’s Analytics	Mr. Almeida has served as President of Moody’s Analytics since January 2008. Prior to this position, Mr. Almeida was Senior Vice President of Moody’s Corporation from August 2007 to January 2008, Senior Managing Director of the Investor Services Group (ISG) at Moody’s Investors Service, Inc. from December 2004 to January 2008 and was Group Managing Director of ISG from June 2000 to December 2004. Mr. Almeida joined Moody’s Investors Service, Inc. in April 1988 and has held a variety of positions with the company in both the U.S. and overseas.
Richard Cantor, 57 Chief Risk Officer	Mr. Cantor has served as Chief Risk Officer of Moody’s Corporation since December 2008 and as Chief Credit Officer of Moody’s Investors Service, Inc. since November 2008. From July 2008 to November 2008, Mr. Cantor served as Acting Chief Credit Officer. Prior thereto, Mr. Cantor was Managing Director of Moody’s Credit Policy Research Group from June 2001 to July 2008, after serving as Senior Vice President in the Financial Guarantors Rating Group. Mr. Cantor joined Moody’s in 1997 from the Federal Reserve Bank of New York, where he served as Assistant Vice President in the Research Group and was Staff Director at the Discount Window. Prior to the Federal Reserve, Mr. Cantor taught Economics at UCLA and Ohio State and has taught on an adjunct basis at the business schools of Columbia University and New York University.
Robert Fauber, 44 Senior Vice President, Corporate and Commercial Development	Mr. Fauber has served as Senior Vice President—Corporate & Commercial Development since April 2014 and has been Head of the MIS Commercial Group since January 2013. From April 2009 through April 2014 he served as Senior Vice President—Corporate Development of Moody’s Corporation. Mr. Fauber served as Vice President-Corporate Development from September 2005 to April 2009. Prior to joining Moody’s, Mr. Fauber served in several roles at Citigroup from 1999 to 2005, including most recently, Director of Planning and Business Development for Citigroup’s Alternative Investments division. Prior to that, Mr. Fauber worked as a Director in Corporate Strategy & Business Development for Citigroup and a Vice President and Associate in the Financial Sponsor and Telecom investment banking groups at the firm’s Salomon Smith Barney subsidiary. From 1992-1996, Mr. Fauber worked at NationsBank (now Bank of America), working in the middle market commercial banking group and also ran the firm’s Global Finance college recruiting program in 1997.
John J. Goggins, 54 Executive Vice President and General Counsel	Mr. Goggins has served as the Company’s Executive Vice President and General Counsel since April 2011 and the Company’s Senior Vice President and General Counsel from October 2000 until April 2011. Mr. Goggins joined Moody’s Investors Service, Inc. in February 1999 as Vice President and Associate General Counsel. Prior thereto, he served as counsel at Dow Jones & Company from 1995 to 1999, where he was responsible for securities, acquisitions and general corporate matters. Prior to Dow Jones, he was an associate at Cadwalader, Wickersham & Taft from 1985 to 1995, where he specialized in mergers and acquisitions.
Linda S. Huber, 56 Executive Vice President and Chief Financial Officer	Ms. Huber has served as the Company’s Executive Vice President and Chief Financial Officer since May 2005. Prior thereto, she served as Executive Vice President and Chief Financial Officer at U.S. Trust Company, a subsidiary of Charles Schwab & Company, Inc., from 2003 to 2005. Prior to U.S. Trust, she was Managing Director at Freeman & Co. from 1998 through 2002. She served PepsiCo as Vice President of Corporate Strategy and Development from 1997 until 1998 and as Vice President and Assistant Treasurer from 1994 until 1997. She served as Vice President in the Energy Investment Banking Group at Bankers Trust Company from 1991 until 1994 and as an Associate in the Energy Group at First Boston Corporation from 1986 through 1990. She also held the rank of Captain in the U.S. Army where she served from 1980 to 1984.

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Name, Age and Position	Biographical Data
Michel Madelain, 59 President and Chief Operating Officer, Moody’s Investors Service	Mr. Madelain has served as President of Moody’s Investors Service Inc. since November 2010 and as Chief Operating Officer since May 2008. Prior to this, Mr. Madelain served as Executive Vice President, Fundamental Ratings from September 2007 to May 2008, with responsibility for all Global Fundamental Ratings, including Corporate Finance, Financial Institutions, Public Finance and Infrastructure Finance. He managed the Financial Institutions group from March 2007 until September 2007. Mr. Madelain served as Group Managing Director, EMEA Corporate Ratings from November 2000 to March 2007 and prior thereto held several Managing Director positions in the U.S. and U.K. Fundamental Rating Groups. Prior to joining Moody’s in 1994, Mr. Madelain served as a Partner of Ernst & Young, Auditing Practice. Mr. Madelain is qualified as a Chartered Accountant in France.
Joseph (Jay) McCabe, 64 Senior Vice President, Corporate Controller	Mr. McCabe has served as the Company’s Senior Vice President—Corporate Controller since December 2005. Mr. McCabe joined Moody’s in July 2004 as Vice President and Corporate Controller. Before joining the Company, he served as Vice President—Corporate Controller at PPL Corporation, an energy and utility holding company, from 1994 to 2003. Prior to PPL Corporation, he served Deloitte & Touche as Partner from 1984 to 1993 and as a member of the firm’s audit practice from 1973 to 1984.
Raymond W. McDaniel, Jr., 57 President and Chief Executive Officer	Mr. McDaniel has served as the President and Chief Executive Officer of the Company since April 2012, and served as the Chairman and Chief Executive Officer from April 2005 until April 2012. He currently serves on the MIS Committee of the Board of Directors. Mr. McDaniel served as the Company’s President from October 2004 until April 2005 and the Company’s Chief Operating Officer from January 2004 until April 2005. He has served as Chairman and Chief Executive Officer of Moody’s Investors Service, Inc., a subsidiary of the Company, since October 2007 and held the additional title of President from November 2001 to August 2007 and December 2008 to November 2010. Mr. McDaniel served as the Company’s Executive Vice President from April 2003 to January 2004, and as Senior Vice President, Global Ratings and Research from November 2000 until April 2003. He served as Senior Managing Director, Global Ratings and Research, of Moody’s Investors Service from November 2000 until November 2001 and as Managing Director, International from 1996 to November 2000. Mr. McDaniel currently is a Director of John Wiley & Sons, Inc. and is a member of the Board of Trustees of Muhlenberg College.
Lisa S. Westlake, 53 Senior Vice President and Chief Human Resource Officer	Ms. Westlake has served as the Company’s Senior Vice President and Chief Human Resources Officer since November 2008. Prior to this position, Ms. Westlake served as Vice President—Investor Relations from December 2006 to November 2008 and Managing Director—Finance from September 2004 to December 2006. Prior to joining the Company, Ms. Westlake was a senior consultant with the Schiff Consulting Group from 2003 to 2004. From 1996 to 2003 Ms. Westlake worked at American Express Company where she held several different positions such as Vice President and Chief Financial Officer for the OPEN Small Business Network, Vice President and Chief Financial Officer for Establishment Services and Vice President and Chief Financial Officer for Relationship Services. From 1989 to 1995 Ms. Westlake held a range of financial management positions at Dun & Bradstreet Corporation and its subsidiary at the time, IMS International. From 1984 to 1987 Ms. Westlake served at Lehman Brothers in both the investment banking and municipal trading areas.
Blair L. Worrall, 58 Senior Vice President, Ratings Delivery and Data	Mr. Worrall has served as Senior Vice President—Ratings Delivery and Data since February 2013 and Head of MIS Ratings Transaction Services since January 2014. Mr. Worrall served as Senior Vice President—Internal Audit from April 2011 to February 2013 and as Vice President—Internal Audit from September 2007 to April 2011. He served as the Controller for MIS from November 2004 until September 2007. Prior to joining the Company, Mr. Worrall was Vice President, Accounting for RCN Corporation from 2002 to 2004 and held various finance positions at Dow Jones & Company, Inc. from 1979 to 2001.

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ITEM 1A. RISK FACTORS

The following risk factors and other information included in this annual report on Form 10-K should be carefully considered. The risks and uncertainties described below are not the only ones the Company faces. Additional risks and uncertainties not presently known to the Company or that the Company’s management currently deems minor or insignificant also may impair its business operations. If any of the following risks occur, Moody’s business, financial condition, operating results and cash flows could be materially and adversely affected. These risk factors should be read in conjunction with the other information in this annual report on Form 10-K.

U.S. Laws and Regulations Affecting the Credit Rating Industry are Rapidly Evolving and May Negatively Impact the Nature and Economics of the Company’s Business

Moody’s operates in a highly regulated industry and is subject to extensive regulation by federal, state and local authorities in the U.S., including the Reform Act and the Financial Reform Act. These regulations are complex, continually evolving and have tended to become more stringent over time. See “Regulation” in Part 1, Item 1 of this annual report on Form 10-K for more information. These laws and regulations:

» seek to encourage, and may result in, increased competition among rating agencies and in the credit rating business;

» may result in alternatives to credit ratings or changes in the pricing of credit ratings;

» restrict the use of information in the development or maintenance of credit ratings;

» increase regulatory oversight of the credit markets and CRA operations;

» provide for direct jurisdiction of the SEC over CRAs that seek NRSRO status, and grant authority to the SEC to inspect the operations of CRAs; and

» authorize the adoption of enhanced oversight standards and new pleading standards, which may result in increases in the number of legal proceedings claiming liability for losses suffered by investors on rated securities and aggregate legal defense costs.

These laws and regulations, and any future rulemaking or court rulings, could result in reduced demand for credit ratings and increased costs, which Moody’s may be unable to pass through to customers. In addition, there may be uncertainty over the scope, interpretation and administration of such laws and regulations. The Company may be required to incur significant expenses in order to ensure compliance and mitigate the risk of fines, penalties or other sanctions. Legal proceedings could become increasingly lengthy and there may be uncertainty over and exposure to liability. It is difficult to accurately assess the future impact of legislative and regulatory requirements on Moody’s business and its customers’ businesses, and they may affect MIS’s communications with issuers as part of the rating assignment process, alter the manner in which MIS’s ratings are developed, assigned and communicated, affect the manner in which MIS or its customers or users of credit ratings operate, impact the demand for MIS’s ratings and alter the economics of the credit ratings business, including by restricting or mandating business models for rating agencies. Further, speculation concerning the impact of legislative and regulatory initiatives and the increased uncertainty over potential liability and adverse legal or judicial determinations may affect Moody’s stock price. Although these recent and pending legislative and regulatory initiatives apply to rating agencies and credit markets generally, they may affect Moody’s in a disproportionate manner. Each of these developments increase the costs and legal risk associated with the issuance of credit ratings and may have a material adverse effect on Moody’s operations, profitability and competitiveness, the demand for credit ratings and the manner in which such ratings are utilized.

Financial Reforms Outside the U.S. Affecting the Credit Rating Industry May Negatively Impact the Nature and Economics of the Company’s Business

In addition to the extensive and evolving U.S. laws and regulations governing the industry, foreign jurisdictions have taken measures to increase regulation of rating agencies and the markets for ratings. In particular, the EU has adopted a new regulatory framework for rating agencies operating in the EU, and introduced a common EU regulatory approach to oversight of CRAs. The EU has established conditions for the issuance of credit ratings, rules on the organization and conduct of CRAs—including restrictions on certain activities deemed to create a conflict of interest—and special requirements for the rating of structured finance instruments. ESMA has direct supervisory authority for CRAs in the EU.

MIS is a registered entity and is therefore subject to formal regulation and periodic inspection. Applicable rules include procedural requirements with respect to ratings of sovereign issuers, liability for intentional or grossly negligent failure to abide by applicable regulations, mandatory rotation requirements of CRAs hired by issuers of securities for ratings of resecuritizations, restrictions on CRAs or their shareholders if certain ownership thresholds are crossed, and additional procedural and substantive requirements on the pricing of services.

On January 6, 2015, two additional rules (generally referred to as “Regulatory Technical Standards” or “RTSs”) of direct relevance to the CRA industry were published in the Official Journal of the European Union: (i) CRAs’ reporting requirements to ESMA on their fees; and

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(ii) the types of information that CRAs are to provide about certain ratings (those that were paid for by issuers) for publication on a central website administered by ESMA (the European Ratings Platform). Separately, CRA3 also requires that ESMA and / or the European Commission produce several reports on the industry’s structure and the use of ratings. These reports are expected to be published by year end 2015.

EU financial reforms could have a significant negative effect on Moody’s operations, profitability or ability to compete, or the markets for its products and services, including in ways that Moody’s presently is unable to predict. In particular, exposure to increased liability under the EU regulations may further increase costs and legal risks associated with the issuance of credit ratings and materially and adversely impact Moody’s results of operations. In addition, compliance with the amended EU regulations may increase costs of operations.

Further, Moody’s believes there is still potential for additional rulemaking by the EU and other jurisdictions that can significantly impact operations or the markets for Moody’s products and services, such as regulations affecting the need for debt securities to be rated, establishing criteria for credit ratings or limiting the entities authorized to provide credit ratings. Moody’s cannot predict the extent of such future laws and regulations, and the effect that they will have on Moody’s business or the potential for increased exposure to liability could be significant. Financial reforms in the EU and other foreign jurisdictions may have a material adverse effect on Moody’s business, operating results and financial condition.

The Company Faces Exposure to Litigation Related to Rating Opinions and Other Business Practices

Moody’s faces exposure to litigation related to MIS’s ratings actions, as well as other business practices. As a result of difficult economic times and turbulent markets in recent years, the market value of credit-dependent instruments has declined and defaults have increased. This development has led to a significant increase in the number of legal proceedings that Moody’s is facing, including class actions and other litigation, government investigations and inquiries concerning events in the U.S. subprime residential mortgage sector and the credit markets more broadly. Legal proceedings impose additional expenses on the Company and require the attention of senior management to an extent that may significantly reduce their ability to devote time addressing other business issues. Risks relating to legal proceedings may be heightened in foreign jurisdictions that lack the legal protections or liability standards comparable to those that exist in the U.S. In addition, new laws and regulations have been and may continue to be enacted that establish lower liability standards, shift the burden of proof or relax pleading requirements, thereby increasing the risk of successful litigations in the U.S. and in foreign jurisdictions. These litigation risks are often difficult to assess or quantify. Moody’s may not have adequate insurance or reserves to cover these risks, and the existence and magnitude of these risks often remains unknown for substantial periods of time. Furthermore, to the extent that Moody’s is unable to achieve dismissals at an early stage and litigation matters proceed to trial, the aggregate legal defense costs incurred by Moody’s increase substantially, as does the risk of an adverse outcome. See Note 18 to the consolidated financial statements for more information regarding ongoing investigations and civil litigation that the Company currently faces. Due to the number of these proceedings and the significant amount of damages sought, there is a risk that Moody’s will be subject to judgments, settlements, fines, penalties or other adverse results that could have a material adverse effect on its business, operating results and financial condition.

The Company is Exposed to Legal, Economic and Regulatory Risks of Operating in Multiple Jurisdictions

Moody’s conducts operations in various countries outside the U.S. and derives a significant portion of its revenue from foreign sources. Changes in the economic condition of the various foreign economies in which the Company operates may have an impact on the Company’s business. For example, economic uncertainty in the Eurozone or elsewhere could affect the number of securities offerings undertaken within those particular areas. In addition, operations abroad expose Moody’s to a number of legal, economic and regulatory risks such as:

» restrictions on the ability to convert local currency into USD;

» exposure to exchange rate movements between foreign currencies and USD;

» the costs of repatriating cash held by entities outside the U.S.;

» U.S. laws affecting overseas operations including domestic and foreign export and import restrictions, tariffs and other trade barriers;

» differing legal or civil liability, compliance and regulatory standards;

» current and future regulations relating to the imposition of mandatory rotation requirements on CRAs hired by issuers of securities;

» uncertain and evolving laws and regulations applicable to the financial services industries;

» economic, political and geopolitical market conditions;

» the possibility of nationalization, expropriation, price controls and other restrictive governmental actions;

» competition with local rating agencies that have greater familiarity, longer operating histories and/or support from local governments or other institutions;

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» reduced protection for intellectual property rights;

» longer payment cycles and possible problems in collecting receivables;

» differing accounting principles and standards;

» difficulties and delays in translating documentation into foreign languages; and

» potentially adverse tax consequences.

Additionally, Moody’s is subject to complex U.S. and foreign laws and regulations, such as the Foreign Corrupt Practices Act, the U.K. Bribery Act and other anti-bribery and anti-corruption laws. Although the Company has implemented internal controls, policies and procedures and employee training and compliance programs to deter prohibited practices, such measures may not be effective in preventing employees, contractors or agents from violating or circumventing such internal policies and violating applicable laws and regulations. Any determination that the Company has violated anti-bribery or anti-corruption laws could have a material adverse effect on Moody’s financial condition. Compliance with international and U.S. laws and regulations that apply to the Company’s international operations increases the cost of doing business in foreign jurisdictions. Violations of such laws and regulations may result in fines and penalties, criminal sanctions, administrative remedies, restrictions on business conduct and could have a material adverse effect on Moody’s reputation, its ability to attract and retain employees, its business, operating results and financial condition.

Moody’s Operations and Infrastructure May Malfunction or Fail

Moody’s ability to conduct business may be materially and adversely impacted by a disruption in the infrastructure that supports its businesses and the communities in which Moody’s is located, including New York City, the location of Moody’s headquarters, major cities worldwide in which Moody’s has offices, and locations in China used for data and development work. This may include a disruption involving physical or technological infrastructure, including the Company’s electronic delivery systems, data center facilities and the Internet, used by the Company or third parties with or through whom Moody’s conducts business, whether due to human error, natural disasters, power loss, telecommunication failures, break-ins, sabotage, intentional acts of vandalism, acts of terrorism, political unrest, war or otherwise. Moody’s efforts to secure and plan for potential disruptions of its major operating systems may not be successful. The Company relies on third-party providers to provide certain essential services. While the Company believes that such providers are reliable, the Company has limited control over the performance of such providers. To the extent any of the Company’s third-party providers ceases to provide these services in an efficient, cost-effective manner or fail to adequately expand its services to meet the Company’s needs and the needs of the Company’s customers, the Company could experience lower revenues and higher costs. The Company also does not have fully redundant systems for most of its smaller office locations and low-risk systems, and its disaster recovery plan does not include restoration of non-essential services. If a disruption occurs in one of Moody’s locations or systems and its personnel in those locations or those who rely on such systems are unable to utilize other systems or communicate with or travel to other locations, such persons’ ability to service and interact with Moody’s clients and customers may suffer. The Company cannot predict with certainty all of the adverse effects that could result from the Company’s failure, or the failure of a third party, to efficiently address and resolve these delays and interruptions. A disruption to Moody’s operations or infrastructure may have a material adverse effect on its business, operating results and financial condition.

The Company is Exposed to Risks Related to Cybersecurity and Protection of Confidential Information

The Company’s operations rely on the secure processing, storage and transmission of confidential, sensitive, proprietary and other types of information relating to its business operations and confidential and sensitive information about its clients in the Company’s computer systems and networks and those of its third party vendors. The cyber risks the Company’s faces range from cyber-attacks common to most industries, to more advanced threats that target the Company because of its prominence in the global marketplace, or due to its ratings of sovereign debt. Breaches of Moody’s or Moody’s vendors’ technology and systems, whether from circumvention of security systems, denial-of-service attacks or other cyber-attacks, hacking, computer viruses or malware, employee error, malfeasance, social engineering, physical breaches or other actions, may result in manipulation or corruption of sensitive data, material interruptions or malfunctions in the Company’s or such vendors’ web sites, applications, data processing, or disruption of other business operations, or may compromise the confidentiality and integrity of material information held by the Company (including information about Moody’s business or customers), as well as sensitive personally identifiable information (“PII”), the disclosure of which could lead to identity theft. Measures that Moody’s takes to avoid or mitigate material incidents can be expensive, and may be insufficient, circumvented, or may become obsolete. Any material breaches of cybersecurity could cause the Company to experience reputational harm, loss of customers, regulatory actions, sanctions or other statutory penalties, litigation, liability for failure to safeguard the Company’s clients’ information or financial losses that are either not insured against or not fully covered through any insurance maintained by the Company. Any of the foregoing may have a material adverse effect on Moody’s business, operating results or financial condition.

Changes in the Volume of Debt Securities Issued in Domestic and/or Global Capital Markets and Changes in Interest Rates and Other Volatility in the Financial Markets May Negatively Impact the Nature and Economics of the Company’s Business

Moody’s business is impacted by general economic conditions and volatility in the U.S. and world financial markets. Furthermore, issuers of debt securities may elect to issue securities without ratings or securities which are rated or evaluated by non-traditional

MOODY’S  2014 10K 19

parties such as financial advisors, rather than traditional CRAs, such as MIS. A majority of Moody’s credit-rating-based revenue is transaction-based, and therefore it is especially dependent on the number and dollar volume of debt securities issued in the capital markets. Accordingly, any market volatility or conditions that either reduce investor demand for debt securities or issuers’ willingness or ability to issue such securities could reduce the number and dollar-equivalent volume of debt issuances for which Moody’s provides ratings services and thereby have an adverse effect on the fees derived from the issuance of ratings. Therefore, no assurance can be given as to the amount of revenues that may be derived from Moody’s ratings services.

Credit market disruptions and economic slowdown and uncertainty have in the past negatively impacted the volume of debt securities issued in global capital markets and the demand for credit ratings. Economic and government factors such as a long-term continuation of difficult economic conditions and a worsening of the sovereign debt crisis in Europe may have an adverse impact on the Company’s business. Future debt issuances could be negatively affected by a sharp increase in long-term interest rates or factors which cause instability or volatility in the global capital markets, such as significant regulatory, political or economic events, the use of alternative sources of credit, including financial institutions and government sources, and defaults of significant issuers and other market and economic factors. Changes in the markets for such securities and in the role and regulation of rating agencies may materially and adversely affect the Company.

Moody’s initiatives to reduce costs to counteract a decline in its business may not be sufficient and cost reductions may be difficult or impossible to obtain in the short term, due in part to rent, technology, compliance and other fixed costs associated with some of the Company’s operations as well as the need to monitor outstanding ratings. Further, cost-reduction initiatives, including those undertaken to date, could make it difficult for the Company to rapidly expand operations in order to accommodate any unexpected increase in the demand for ratings. Volatility in the financial markets, including changes in the volumes of debt securities and changes in interest rates, may have a material adverse effect on the business, operating results and financial condition.

The Company Faces Increased Pricing Pressure from Competitors and/or Customers

There is price competition in the credit rating, research, credit risk management markets, outsourced research and analytical services and financial training and certification services. Competition for customers and market share has spurred more aggressive tactics by some competitors in areas such as pricing and services, as well as increased competition from non-NRSROs that evaluate debt risk for issuers or investors. At the same time, the current challenging business environment and the consolidation of customers, particularly those involved in structured finance products, and other factors affecting demand may enhance the market power of competitors and result in reductions in the size of the Company’s customer base. Tepid economic growth is also intensifying the competitive pressures as to pricing. While Moody’s seeks to compete primarily on the basis of the quality of its products and services, it may lose market share if its pricing is not sufficiently competitive with its current and future competitors. In addition, the Reform Act was designed to encourage competition among rating agencies. The formation of additional NRSROs may increase pricing and competitive pressures. Any inability of Moody’s to compete successfully with respect to the pricing of its products and services could have a material adverse impact on its business, operating results and financial condition.

The Company is Exposed to Reputation and Credibility Concerns

Moody’s reputation and the strength of its brand are key competitive strengths. To the extent that the rating agency business as a whole or Moody’s, relative to its competitors, suffers a loss in credibility, Moody’s business could be significantly impacted. Factors that may have already affected credibility and could potentially continue to have an impact in this regard include the appearance of a conflict of interest, the performance of securities relative to the rating assigned to such securities, the timing and nature of changes in ratings, a major compliance failure, negative perceptions or publicity and increased criticism by users of ratings, regulators and legislative bodies, including as to the ratings process and its implementation with respect to one or more securities. Operational errors, whether by Moody’s or a Moody’s competitor, could also harm the reputation of the Company or the credit rating industry. Damage to reputation and credibility could have a material adverse impact on Moody’s business, operating results and financial condition.

The Introduction of Competing Products or Technologies by Other Companies May Negatively Impact the Nature and Economics of the Company’s Business

The markets for credit ratings, research, credit risk management services, outsourced research and analytical services and financial training and certification services are highly competitive and characterized by rapid technological change, changes in client demands and evolving industry standards. The ability to develop and successfully launch and maintain innovative products and technologies that anticipate customers’ changing requirements and utilize emerging technological trends is a key factor in maintaining market share. Moody’s competitors include both established companies with significant financial resources, brand recognition, market experience and technological expertise, and smaller companies which may be better poised to quickly adopt new or emerging technologies or respond to customer requirements. Competitors may develop quantitative methodologies or related services for assessing credit risk that customers and market participants may deem preferable, more cost-effective or more valuable than the credit risk assessment methods currently employed by Moody’s, or may position, price or market their products in manners that differ from those utilized by Moody’s. Moody’s also competes indirectly against consulting firms and other information providers; these indirect competitors could choose to

20 MOODY’S  2014 10K

compete directly with us in the future. In addition, customers or others may develop alternative, proprietary systems for assessing credit risk. Such developments could affect demand for Moody’s products and services and its growth prospects. Further, the increased availability in recent years of free or relatively inexpensive Internet information may reduce the demand for Moody’s products and services. Moody’s growth prospects also could be adversely affected by Moody’s failure to make necessary or optimal capital infrastructure expenditures and improvements and the inability of its information technologies to provide adequate capacity and capabilities to meet increased demands of producing quality ratings and research products at levels achieved by competitors. Any inability of Moody to compete successfully may have a material adverse effect on its business, operating results and financial condition.

The Company Has a Significant Amount of Intangible Assets

At December 31, 2014, Moody’s had $1,021.1 million of goodwill and $345.5 million of intangible assets on its balance sheet. Approximately 71% of these intangibles reside in the MA business and are allocated to the four reporting units within MA: RD&A; ERS; Financial Services Training and Certifications; and Copal Amba. The remaining 29% of these intangibles reside in MIS and primarily relate to ICRA. Failure to achieve business objectives and financial projections in any of these reporting units could result in an asset impairment charge, which would result in a non-cash charge to operating expenses. Goodwill and intangible assets with indefinite lives are tested for impairment on an annual basis and also when events or changes in circumstances indicate that impairment may have occurred. Determining whether an impairment of goodwill exists can be difficult as a result of increased uncertainty and current market dynamics, and requires significant management estimates and judgment. In addition, the potential for goodwill impairment is increased during periods of economic uncertainty. An asset impairment charge could have a material adverse effect on Moody’s business, operating results and financial condition.

Possible Loss of Key Employees and Related Compensation Cost Pressures May Negatively Impact the Company

Moody’s success depends upon its ability to recruit, retain and motivate highly skilled, experienced financial analysts and other professionals. Competition for skilled individuals in the financial services industry is intense, and Moody’s ability to attract high quality employees could be impaired if it is unable to offer competitive compensation and other incentives or if the regulatory environment mandates restrictions on or disclosures about individual employees that would not be necessary in competing analytical industries. As greater focus has been placed on executive compensation at public companies, in the future, Moody’s may be required to alter its compensation practices in ways that could adversely affect its ability to attract and retain talented employees. Investment banks, investors and competitors may seek to attract analyst talent by providing more favorable working conditions or offering significantly more attractive compensation packages than Moody’s. Moody’s also may not be able to identify and hire the appropriate qualified employees in some markets outside the U.S. with the required experience or skills to perform sophisticated credit analysis. There is a risk that even if the Company invests significant resources in attempting to attract, train and retain qualified personnel, it will not succeed in its efforts, and its business could be harmed.

Moody’s is highly dependent on the continued services of Raymond W. McDaniel, Jr., the President and Chief Executive Officer, and other senior officers and key employees. The loss of the services of skilled personnel for any reason and Moody’s inability to replace them with suitable candidates quickly or at all, as well as any negative market perception resulting from such loss, could have a material adverse effect on Moody’s business, operating results and financial condition.

Moody’s Acquisitions and Other Strategic Transactions May Not Produce Anticipated Results

Moody’s has made and expects to continue to make acquisitions or enter into other strategic transactions to strengthen its business and grow the Company. Such transactions present significant challenges and risks. The market for acquisition targets and other strategic transactions is highly competitive, especially in light of industry consolidation, which may affect Moody’s ability to complete such transactions. If Moody’s is unsuccessful in completing such transactions or if such opportunities for expansion do not arise, its business, operating results and financial condition could be materially adversely affected.

If such transactions are completed, the anticipated growth, synergies and other strategic objectives of such transactions may not be fully realized, and a variety of factors may adversely affect any anticipated benefits from such transactions. Any strategic transaction can involve a number of risks, including unanticipated challenges regarding integration of operations, technologies and new employees; the existence of liabilities or contingencies not disclosed to or otherwise known by the Company prior to closing a transaction; unexpected regulatory and operating difficulties and expenditures; failure to retain key personnel of the acquired business; diverting management’s focus from other business operations; and failing to implement or remediate controls, procedures and policies appropriate for a larger public company at acquired companies that prior to the acquisition lacked such controls, procedures and policies. The anticipated benefits from an acquisition or other strategic transaction may not be realized fully, or may take longer to realize than expected. As a result, the failure of acquisitions and other strategic transactions to perform as expected may have a material adverse effect on Moody’s business, operating results and financial condition.

The Trading Price of Moody’s Stock Could be Affected by Third Party Actions

Ownership of Moody’s stock is highly concentrated with a significant portion of shares held by a few institutional stockholders. Due to this concentrated stockholder base, the trading price of Moody’s stock could be affected considerably by actions of significant

MOODY’S  2014 10K 21

stockholders to increase or decrease their positions in Moody’s stock. As a result, the actions of these institutional stockholders could create high stock volatility.

The Company’s Compliance and Risk Management Programs Might Not be Effective and May Result in Outcomes That Could Adversely Affect the Company’s Reputation, Financial Condition and Operating Results.

Moody’s operates in a number of countries, and as a result the Company is required to comply with numerous international and U.S. federal, state and local laws and regulations. The Company’s ability to comply with applicable laws and regulations, including anti-corruption laws, is largely dependent on its establishment and maintenance of compliance, review and reporting systems. Moody’s policies and procedures to identify, evaluate and manage the Company’s risks may not be fully effective, and Moody’s employees [or agents] may engage in misconduct, fraud or other errors. It is not always possible to deter such errors, and the precautions the Company takes to prevent and detect this activity may not be effective in all cases. If Moody’s employees violate its policies or if the Company’s risk management methods are not effective, the Company could be subject to regulatory sanctions and suffer harm to the Company’s reputation, financial condition and operating results.

Legal Protections for the Company’s Intellectual Property Rights may not be Sufficient or Available to Protect the Company’s Competitive Advantages.

Moody’s considers many aspects of its products and services to be proprietary. Failure to protect the Company’s intellectual property adequately could harm its reputation and affect the Company’s ability to compete effectively. In addition, the Company’s operating results may be adversely affected by inadequate or changing legal and technological protections for intellectual property and proprietary rights in some jurisdictions and markets. On January 6, 2015, a rule with direct relevance to the CRA industry was published in the Official Journal of the European Union regarding the types of information that CRAs are to provide about certain ratings (those that were paid for by issuers) for publication on a central website administered by ESMA (the European Ratings Platform). This rule directly relates to the Company’s intellectual property as it would require that the Company provide proprietary information at no cost that the Company currently sells, which could result in lost revenue.

Additionally, despite the Company’s efforts to protect its intellectual property rights, unauthorized third parties may try to obtain and use technology or other information that the Company regards as proprietary. Even if Moody’s attempts to protect its intellectual property rights through litigation, it may require considerable cost, time and resources to do so, and there is no guarantee that the Company will be successful.

The Company is Dependent on the Use of Third-Party Software, Data, Hosted Solutions, Data Centers, and Network Infrastructure (Together, “Third Party Technology”), and Any Reduction in Third-Party Product Quality or Service Offerings, Could Have a Material Adverse Effect on the Company’s Business, Financial Condition or Results of Operations.

Moody’s relies on Third Party Technology in connection with its product development and offerings. The Company depends on the ability of Third Party Technology providers to deliver and support reliable products, enhance their current products, develop new products on a timely and cost-effective basis, and respond to emerging industry standards and other technological changes. The Third Party Technology Moody’s uses may become obsolete, incompatible with future versions of the Company’s products, unavailable or fail to operate effectively, and Moody’s business could be adversely affected if the Company is unable to timely or effectively replace such Third Party Technology. The Company also monitors its use of Third Party Technology to comply with applicable license and other contractual requirements. Despite the Company’s efforts, the Company cannot assure that such third parties will permit Moody’s use in the future, resulting in increased Third Party Technology acquisition costs and loss of rights. In addition, the Company’s operating costs could increase if license or other usage fees for Third Party Technology increase or the efforts to incorporate enhancements to Third Party Technology are substantial. Some of these third-party suppliers are also Moody’s competitors, increasing the risks noted above. If any of these risks materialize, they could have a material adverse effect on the Company’s business, financial condition or results of operations.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

Moody’s corporate headquarters is located at 7 World Trade Center at 250 Greenwich Street, New York, New York 10007, with approximately 797,537 square feet of leased space. As of December 31, 2014, Moody’s operations were conducted from 21 U.S. offices and 76 non-U.S. office locations, all of which are leased. These properties are geographically distributed to meet operating and sales requirements worldwide. These properties are generally considered to be both suitable and adequate to meet current operating requirements.

22 MOODY’S  2014 10K

ITEM 3. LEGAL PROCEEDINGS

For information regarding legal proceedings, see Part II, Item 8 – “Financial Statements”, Note 18 “Contingencies” in this Form 10-K.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

MOODY’S  2014 10K 23

PART II

ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Information in response to this Item is set forth under the captions below.

MOODY’S PURCHASES OF EQUITY SECURITIES

For the three months ended December 31, 2014

Period	Total Number of Shares Purchased(1)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Approximate Dollar Value of Shares That May yet be Purchased Under the Program(2)
October 1 – 31		1,777,716	$	93.41		1,777,716	$	837.7 million
November 1 – 30		1,110,097	$	99.91		1,109,805	$	726.8 million
December 1 – 31		1,672,753	$	97.58		1,672,621	$	1,563.5 million
Total		4,560,566	$	96.52		4,560,142

(1) Includes the surrender to the Company of 292 shares and 132 shares of common stock in November and December, respectively, to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees.

(2) As of the last day of each of the months. On December 16, 2014, the Board authorized a $1 billion share repurchase program which will commence following the completion of the existing program. There is no established expiration date for the remaining authorization.

During the fourth quarter of 2014, Moody’s issued 0.3 million shares under employee stock-based compensation plans.

24 MOODY’S  2014 10K

COMMON STOCK INFORMATION AND DIVIDENDS

The Company’s common stock trades on the New York Stock Exchange under the symbol “MCO”. The table below indicates the high and low sales price of the Company’s common stock and the dividends declared and paid for the periods shown. The number of registered shareholders of record at January 31, 2015 was 2,394. A substantially greater number of the Company’s common stock is held by beneficial holders whose shares are held of record by banks, brokers and other financial institutions.

	Price Per Share				Dividends Per Share
	High		Low		Declared		Paid
2014:
First quarter	$	85.70	$	72.57	$	—	$	0.28
Second quarter	$	89.08	$	74.36		0.28		0.28
Third quarter	$	96.14	$	86.50		0.28		0.28
Fourth quarter	$	102.24	$	88.25		0.62		0.28
Year ended December 31, 2014					$	1.18	$	1.12
2013:
First quarter	$	55.58	$	40.67	$	—	$	0.20
Second quarter	$	69.70	$	51.31		0.20		0.20
Third quarter	$	71.74	$	59.69		0.25		0.25
Fourth quarter	$	79.15	$	66.91		0.53		0.25
Year Ended December 31, 2013					$	0.98	$	0.90

On December 16, 2014, the Board of the Company approved the declaration of a quarterly dividend of $0.34 per share of Moody’s common stock, payable on March 10, 2015 to shareholders of record at the close of business on February 20, 2015. The continued payment of dividends at the rate noted above, or at all, is subject to the discretion of the Board.

EQUITY COMPENSATION PLAN INFORMATION

The table below sets forth, as of December 31, 2014, certain information regarding the Company’s equity compensation plans.

	Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights			Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights(2)		Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding Securities Reflected in Column (a)
Plan Category	(a)			(b)		(c)
Equity compensation plans approved by security holders		10,432,616	(1)	$	46.00		24,407,013	(3)
Equity compensation plans not approved by security holders		—		$	—		—
Total		10,432,616		$	46.00		24,407,013

(1) Includes 8,260,530 options and unvested restricted shares outstanding under the Company’s 2001 Key Employees’ Stock Incentive Plan, 437,581 options and unvested restricted shares outstanding under the Company’s 1998 Key Employees’ Stock Incentive Plan, and 15,212 unvested restricted shares outstanding under the 1998 Non-Employee Directors’ Stock Incentive Plan. This number also includes a maximum of 1,719,293 performance shares outstanding under the Company’s 2001 Key Employees’ Stock Incentive Plan, which is the maximum number of shares issuable pursuant to performance share awards assuming the maximum payout at 225% of the target award for performance shares granted in 2012, 2013 and 2014. Assuming payout at target, the number of shares to be issued upon the vesting of outstanding performance share awards is 764,130.

(2) Does not reflect unvested restricted shares or performance share awards included in column (a) because these awards have no exercise price.

(3) Includes 20,482,399 shares available for issuance as under the 2001 Stock Incentive Plan, of which all may be issued as options and 12,997,143 may be issued as restricted stock, performance shares or other stock-based awards under the 2001 Stock Incentive Plan and 958,173 shares available for issuance as options, shares of restricted stock or performance shares under the 1998 Directors Plan, and 2,966,441 shares available for issuance under the Company’s Employee Stock Purchase Plan. No new grants may be made under the 1998 Stock Incentive Plan, which expired by its terms in June 2008.

MOODY’S  2014 10K 25

PERFORMANCE GRAPH

The following graph compares the total cumulative shareholder return of the Company to the performance of Standard & Poor’s Stock 500 Composite Index and the Russell 3000 Financial Services Index. Both of the aforementioned indexes are easily accessible to the Company’s shareholders in newspapers, the internet and other readily available sources for purposes of the following graph.

The comparison assumes that $100.00 was invested in the Company’s common stock and in each of the foregoing indices on December 31, 2009. The comparison also assumes the reinvestment of dividends, if any. The total return for the common stock was 286% during the performance period as compared with a total return during the same period of 93% for the Russell 3000 Financial Services Index and 105% for the S&P 500 Composite Index.

Comparison of Cumulative Total Return

Moody’s Corporation, Russell 3000 Financial Services Index and S&P 500 Composite Index

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN

Among Moody’s, the S&P 500 Index

and the Russell 3000 Financial Services Index

	Year Ended December 31,
	2009		2010		2011		2012		2013		2014
Moody’s Corporation	$	100.00	$	100.77	$	129.95	$	197.33	$	312.21	$	386.10
S&P 500 Composite Index	$	100.00	$	115.06	$	117.49	$	136.30	$	180.44	$	205.14
Russell 3000—Financial Services Index	$	100.00	$	112.59	$	99.18	$	125.54	$	168.80	$	192.51

The comparisons in the graph above are provided in response to disclosure requirements of the SEC and are not intended to forecast or be indicative of future performance of the Company’s common stock.

26 MOODY’S  2014 10K

ITEM 6. SELECTED FINANCIAL DATA

The Company’s selected consolidated financial data should be read in conjunction with Item 7. “MD&A” and the Moody’s Corporation consolidated financial statements and notes thereto.

	Year Ended December 31,
amounts in millions, except per share data	2014			2013			2012			2011			2010
Results of operations
Revenue	$	3,334.3		$	2,972.5		$	2,730.3		$	2,280.7		$	2,032.0
Operating and SG&A expenses		1,799.6			1,644.5			1,547.2			1,313.1			1,192.8
Depreciation and amortization		95.6			93.4			93.5			79.2			66.3
Goodwill impairment		—			—			12.2			—			—
Restructuring		—			—			—			—			0.1
Operating income		1,439.1			1,234.6			1,077.4			888.4			772.8
Non-operating income (expense), net (1)		21.9			(65.3	)		(53.4	)		(48.6	)		(58.4	)
Income before provision for income taxes		1,461.0			1,169.3			1,024.0			839.8			714.4
Provision for income taxes		455.0			353.4			324.3			261.8			201.0
Net income (2)		1,006.0			815.9			699.7			578.0			513.4
Less: Net income attributable to noncontrolling interests		17.3			11.4			9.7			6.6			5.6
Net income attributable to Moody’s (2)	$	988.7		$	804.5		$	690.0		$	571.4		$	507.8
Earnings per share
Basic	$	4.69		$	3.67		$	3.09		$	2.52		$	2.16
Diluted	$	4.61		$	3.60		$	3.05		$	2.49		$	2.15
Weighted average shares outstanding
Basic		210.7			219.4			223.2			226.3			235.0
Diluted		214.7			223.5			226.6			229.4			236.6
Dividends declared per share	$	1.18		$	0.98		$	0.68		$	0.58		$	0.43
Operating margin		43.2	%		41.5	%		39.5	%		39.0	%		38.0	%
	December 31,
	2014			2013			2012			2011			2010
Balance sheet data
Total assets	$	4,669.0		$	4,395.1		$	3,960.9		$	2,876.1		$	2,540.3
Long-term debt	$	2,547.3		$	2,101.8		$	1,607.4		$	1,172.5		$	1,228.3
Total shareholders’ equity (deficit)	$	42.9		$	347.9		$	396.6		$	(158.4	)	$	(298.4	)
		NON-GAAP FINANCIAL MEASURES (3)
	Year Ended December 31,
	2014			2013			2012			2011			2010
Adjusted Operating Income	$	1,534.7		$	1,328.0		$	1,183.1		$	967.6		$	839.2
Adjusted Operating Margin		46.0	%		44.7	%		43.3	%		42.4	%		41.3	%
Non-GAAP diluted EPS attributable to Moody’s common shareholders	$	4.21		$	3.65		$	2.99		$	2.46		$	2.13
Free cash flow	$	944.0		$	884.5		$	778.1		$	735.6		$	574.3

(1) The 2014, 2013, 2012, 2011 and 2010 amounts include benefits of $7.1 million, $22.8 million, $17.2 million, $10.1 million, and $2.5 million, respectively, related to the favorable resolution of certain Legacy Tax Matters. The 2014 amount also includes the ICRA Gain of $102.8 million.

(2) The 2014, 2013, 2012, 2011 and 2010 amounts include benefits of $6.8 million, $21.3 million, $12.8 million, $7.0 million and $4.6 million, respectively, related to the resolution of certain Legacy Tax Matters. Also, the 2014 amount includes the ICRA Gain of $78.5 million and the 2013 amount includes a litigation settlement charge which is more fully discussed in Note 18 to the consolidated financial statements.

(3) Refer to “Non-GAAP measures” in Item 7 of this Form 10K for a discussion of the Company’s non-GAAP financial measures

MOODY’S  2014 10K 27

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion and analysis of financial condition and results of operations should be read in conjunction with the Moody’s Corporation consolidated financial statements and notes thereto included elsewhere in this annual report on Form 10-K.

This MD&A contains Forward-Looking Statements. See “Forward-Looking Statements” commencing on page 54 and Item 1A. “Risk Factors” commencing on page 17 for a discussion of uncertainties, risks and other factors associated with these statements.

THE COMPANY

Moody’s is a provider of (i) credit ratings, (ii) credit and economic related research, data and analytical tools, (iii) software solutions and related risk management services, (iv) quantitative credit risk measures, financial services training and certification services and (v) outsourced research and analytical services to institutional customers. Moody’s has two reportable segments: MIS and MA.

MIS, the credit rating agency, publishes credit ratings on a wide range of debt obligations and the entities that issue such obligations in markets worldwide. Revenue is primarily derived from the originators and issuers of such transactions who use MIS ratings in the distribution of their debt issues to investors. Additionally, MIS earns revenue from certain non-ratings-related operations which consist primarily of the distribution of research and fixed income pricing services in the Asia-Pacific region and from ICRA non-ratings services. The revenue from these operations is included in the MIS Other LOB and is not material to the results of the MIS segment.

The MA segment develops a wide range of products and services that primarily support financial analysis and risk management activities of institutional participants in global financial markets. Within its RD&A business, MA distributes research and data developed by MIS as part of its ratings process, including in-depth research on major debt issuers, industry studies and commentary on topical credit-related events. The RD&A business also produces economic research as well as data and analytical tools such as quantitative credit risk scores. Within its ERS business, MA provides software solutions as well as related risk management services. The PS business provides outsourced research and analytical services and financial training and certification programs.

CRITICAL ACCOUNTING ESTIMATES

Moody’s discussion and analysis of its financial condition and results of operations are based on the Company’s consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires Moody’s to make estimates and judgments that affect reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the dates of the financial statements and revenue and expenses during the reporting periods. These estimates are based on historical experience and on other assumptions that are believed to be reasonable under the circumstances. On an ongoing basis, Moody’s evaluates its estimates, including those related to revenue recognition, accounts receivable allowances, contingencies, goodwill and intangible assets, pension and other retirement benefits, UTPs and stock-based compensation. Actual results may differ from these estimates under different assumptions or conditions. The following accounting estimates are considered critical because they are particularly dependent on management’s judgment about matters that are uncertain at the time the accounting estimates are made and changes to those estimates could have a material impact on the Company’s consolidated results of operations or financial condition.

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or the services have been provided and accepted by the customer when applicable, fees are determinable and the collection of resulting receivables is considered probable.

Pursuant to the guidance of ASC Topic 605, when a sales arrangement contains multiple deliverables, the Company allocates revenue to each deliverable based on its relative selling price which is determined based on its vendor specific objective evidence if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available.

The Company’s products and services will generally qualify as separate units of accounting under ASC Topic 605. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value to the customers and if the arrangement includes a customer refund or return right relative to the delivered item, the delivery and performance of the undelivered item is considered probable and substantially in the Company’s control. In instances where the aforementioned criteria are not met, the delivered item is combined with the undelivered items and revenue recognition is determined as one single unit.

The Company determines whether its selling price in a multi-element transaction meets the VSOE criteria by using the price charged for a deliverable when sold separately. In instances where the Company is not able to establish VSOE for all deliverables in a multiple

28 MOODY’S  2014 10K

element arrangement, which may be due to the Company infrequently selling each element separately, not selling products within a reasonably narrow price range, or only having a limited sales history, the Company attempts to establish TPE for deliverables. The Company determines whether TPE exists by evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. However, due to the difficulty in obtaining third party pricing, possible differences in the Company’s market strategy from that of its peers and the potential that products and services offered by the Company may contain a significant level of differentiation and/or customization such that the comparable pricing of products with similar functionality cannot be obtained, the Company generally is unable to reliably determine TPE. Based on the selling price hierarchy established by ASU 2009-13, when the Company is unable to establish selling price using VSOE or TPE, the Company will establish an ESP. ESP is the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company establishes its best estimate of ESP considering internal factors relevant to its pricing practices such as costs and margin objectives, standalone sales prices of similar products, percentage of the fee charged for a primary product or service relative to a related product or service, and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trend. The Company reviews its determination of VSOE, TPE and ESP on an annual basis or more frequently as needed.

In the MIS segment, revenue attributed to initial ratings of issued securities is recognized when the rating is issued. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of commercial mortgage-backed securities, structured credit, international residential mortgage-backed and asset-backed securities, issuers can elect to pay the monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities, which was approximately 28 years on a weighted average basis at December 31, 2014. At December 31, 2014, 2013 and 2012, deferred revenue related to these securities was approximately $107 million, $97 million and $82 million, respectively.

Multiple element revenue arrangements in the MIS segment are generally comprised of an initial rating and the related monitoring service. In instances where monitoring fees are not charged for the first year monitoring effort, fees are allocated to the initial rating and monitoring services based on the relative selling price of each service to the total arrangement fees. The Company generally uses ESP in determining the selling price for its initial ratings as the Company rarely sells initial ratings separately without providing related monitoring services and thus is unable to establish VSOE or TPE for initial ratings.

MIS estimates revenue for ratings of commercial paper for which, in addition to a fixed annual monitoring fee, issuers are billed quarterly based on amounts outstanding. Revenue is accrued each quarter based on estimated amounts outstanding and is billed when actual data is available. The estimate is determined based on the issuers’ most recent reported quarterly data. At December 31, 2014, 2013 and 2012, accounts receivable included approximately $22 million, $21 million and $22 million, respectively, related to accrued commercial paper revenue. Historically, MIS has not had material differences between the estimated revenue and the actual billings. Furthermore, for certain annual monitoring services, fees are not invoiced until the end of the monitoring period, however, revenue is recognized ratably over the monitoring period.

In the MA segment, products and services offered by the Company include software licenses and related maintenance, subscriptions, and professional services. Revenue from subscription based products, such as research and data subscriptions and certain software-based credit risk management subscription products, is recognized ratably over the related subscription period, which is principally one year. Revenue from sale of perpetual licenses of credit processing software is generally recognized at the time the product master or first copy is delivered or transferred to and accepted by the customer. Software maintenance revenue is recognized ratably over the annual maintenance period. Revenue from professional services rendered is generally recognized as the services are performed. If uncertainty exists regarding customer acceptance of the product or service, revenue is not recognized until acceptance occurs. A large portion of annual research and data subscriptions as well as annual software maintenance is invoiced in November, December and January of each year.

Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where a multiple element arrangement includes software and non-software deliverables, revenue is allocated to the non-software deliverables and to the software deliverables, as a group, using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Revenue is recognized for each element based upon the conditions for revenue recognition previously described.

If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is allocated to each software deliverable using VSOE. In the instances where the Company is not able to determine VSOE for all of the deliverables of an arrangement, the Company allocates the revenue to the undelivered elements equal to its VSOE and the residual revenue to the delivered elements. If the Company is unable to determine VSOE for an undelivered element, the Company defers all revenue allocated to the software deliverables until the Company has delivered all of the elements or when VSOE has been determined for the undelivered elements. In cases where software implementation services are considered essential and VSOE of fair value exists for post-contract customer support (“PCS”), once the delivery criteria have been met on the standard software, license and

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service revenue is recognized on a percentage-of-completion basis as implementation services are performed, while PCS is recognized over the coverage period. If VSOE of fair value does not exist for PCS, once the delivery criteria have been met on the standard software, service revenue is recognized on a zero profit margin basis until essential services are complete, at which point total remaining arrangement revenue is then spread ratably over the remaining PCS coverage period.

Accounts Receivable Allowance

Moody’s records an allowance for estimated future adjustments to customer billings as a reduction of revenue, based on historical experience and current conditions. Such amounts are reflected as additions to the accounts receivable allowance. Additionally, estimates of uncollectible accounts are recorded as bad debt expense and are reflected as additions to the accounts receivable allowance. Actual billing adjustments and uncollectible account write-offs are charged against the allowance. Moody’s evaluates its accounts receivable allowance by reviewing and assessing historical collection and adjustment experience and the current aging status of customer accounts. Moody’s also considers the economic environment of the customers, both from an industry and geographic perspective, in evaluating the need for allowances. Based on its analysis, Moody’s adjusts its allowance as considered appropriate in the circumstances. This process involves a high degree of judgment and estimation and could involve significant dollar amounts. Accordingly, Moody’s results of operations can be affected by adjustments to the allowance. Management believes that the allowance for uncollectible accounts receivable is adequate to cover anticipated adjustments and write-offs under current conditions. However, significant changes in any of the above factors, or actual write-offs or adjustments that differ from the estimated amounts could impact the Company’s consolidated results of operations.

Contingencies

Accounting for contingencies, including those matters described in Note 18 to the consolidated financial statements, is highly subjective and requires the use of judgments and estimates in assessing their magnitude and likely outcome. In many cases, the outcomes of such matters will be determined by third parties, including governmental or judicial bodies. The provisions made in the consolidated financial statements, as well as the related disclosures, represent management’s best estimates of the then current status of such matters and their potential outcome based on a review of the facts and in consultation with outside legal counsel where deemed appropriate. The Company regularly reviews contingencies and as new information becomes available may, in the future, adjust its associated liabilities.

For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, where it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated, the Company records liabilities in the consolidated financial statements and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In other instances, because of uncertainties related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if significant. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. In view of the inherent difficulty of predicting the outcome of litigation, regulatory, governmental investigations and inquiries, enforcement and similar matters and contingencies, particularly where the claimants seek large or indeterminate damages or where the parties assert novel legal theories or the matters involve a large number of parties, the Company cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also cannot predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition. However, in light of the large or indeterminate damages sought in some of them, the absence of similar court rulings on the theories of law asserted and uncertainties regarding apportionment of any potential damages, an estimate of the range of possible losses cannot be made at this time.

The Company’s wholly-owned insurance subsidiary insures the Company against certain risks including but not limited to deductibles for worker’s compensation, employment practices litigation, employee medical claims and terrorism, for which the claims are not material to the Company. In addition, for claim years 2008 and 2009, the insurance subsidiary insured the Company for defense costs related to professional liability claims. For matters insured by the Company’s insurance subsidiary, Moody’s records liabilities based on the estimated total claims expected to be paid and total projected costs to defend a claim through its anticipated conclusion. The Company determines liabilities based on an assessment of management’s best estimate of claims to be paid and legal defense costs as well as actuarially determined estimates. The Cheyne SIV and Rhinebridge SIV matters, more fully discussed in Note 18 to the consolidated financial statements, were both cases from the 2008/2009 claims period, and accordingly the defense cost for these matters were insured by the Company’s insurance subsidiary. Defense costs for matters not self-insured by the Company’s wholly-owned insurance subsidiary are expensed as services are provided.

For income tax matters, the Company employs the prescribed methodology of Topic 740 of the ASC which requires a company to first determine whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained

30 MOODY’S  2014 10K

based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

Goodwill and Other Acquired Intangible Assets

On July 31 of each year, Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment or one level below an operating segment.

At July 31, 2014, the Company had six primary reporting units: two within the Company’s ratings business (one for the newly acquired ICRA business and one that encompasses all of Moody’s other ratings operations) and four reporting units within MA: RD&A, ERS, FSTC and Copal Amba. The RD&A reporting unit encompasses the distribution of investor-oriented research and data developed by MIS as part of its ratings process, in-depth research on major debt issuers, industry studies, economic research and commentary on topical events and credit analytic tools. The ERS reporting unit provides products and services that support the credit risk management and regulatory compliance activities of financial institutions, primarily delivered via software that is licensed or sold on a subscription basis. The FSTC reporting unit consists of the portion of the MA business that offers both credit training as well as other professional development training and implementation services. The Copal Amba reporting unit provides outsourced research and analytical services. In July 2014, a subsidiary of the Company acquired WebEquity Solutions, LLC, a leading provider of cloud-based loan origination solutions for financial institutions. WebEquity Solutions operates as part of the ERS reporting unit. In October 2014, the Company acquired Lewtan Technologies, a leading provider of analytical tools and data for the global structured finance market. Lewtan operates as part of the RD&A reporting unit.

The Company evaluates the recoverability of goodwill using a three-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made that, based on the qualitative factors, that an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company must perform a third step of the impairment test to determine the implied fair value of the reporting unit’s goodwill. The implied fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than its carrying value, the difference is recognized as an impairment charge. For the reporting units where the Company is consistently able to conclude that no impairment exists using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years. At July 31, 2013, the Company performed the second step of the goodwill impairment test on all reporting units, which resulted in no impairment of goodwill.

At July 31, 2014 the Company performed quantitative assessments of the FSTC and Copal Amba reporting units and qualitative assessments for all remaining reporting units. The qualitative analyses resulted in the Company determining that it was not more likely than not that the fair value of these reporting units was less than their carrying amounts. The most significant factors in these qualitative assessments were an assessment of actual to projected results and a comparison of projected results in the prior year compared to current year projection for each reporting unit. Additionally, the weighted average cost of capital (WACC) is assessed as well as the impact of various macroeconomic conditions and factors specific to the reporting unit that could impact future cash flows. No assessment was performed on the ICRA reporting unit due to the proximity of the acquisition date to the goodwill impairment assessment date. Accordingly, the carrying value of ICRA’s net assets acquired approximates fair value at July 31, 2014.

At July 31, 2014, the Company performed a quantitative analysis on the FSTC reporting unit due to the small amount of excess of fair value over net assets in the prior year and slower than anticipated growth in projected cash flows than was utilized in the quantitative assessment performed at July 31, 2013. This slower than anticipated growth in cash flows reflects various investment initiatives in the medium term for this business. The Company also performed a quantitative assessment on the Copal Amba reporting unit due to the acquisition of the Amba business subsequent to the July 31 impairment test dates so as to establish a base-line fair value. Both of these quantitative assessments resulted in no impairment to goodwill at July 31, 2014.

Determining the fair value of a reporting unit or an indefinite-lived acquired intangible asset involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and appropriate comparable market metrics. The Company bases its fair value estimates on reasonable assumptions. However, as these estimates and assumptions are unpredictable and inherently uncertain, actual future results may differ from these estimates. In addition, the Company also makes certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of its reporting units.

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Other assets and liabilities, including applicable corporate assets, are allocated to the extent they are related to the operation of respective reporting units.

Sensitivity Analyses and Key Assumptions for Deriving the Fair Value of a Reporting Unit

The following table identifies the amount of goodwill allocated to each reporting unit as of December 31, 2014 as well as the amount by which the net assets of each reporting unit would exceed the fair value under Step 2 of the goodwill impairment test as prescribed in ASC Topic 350, assuming hypothetical reductions in their fair values as of the date of the last quantitative goodwill impairment assessment for all reporting units. For the FSTC and Copal Amba reporting units, the fair value was calculated as of July 31, 2014. For all remaining reporting units excluding ERS, the fair value was calculated as of July 31, 2013, as there have been no qualitative factors that have resulted in the Company deeming it necessary to perform a quantitative assessment subsequent to this date. For ERS, the WebEquity price was added to the prior year fair value as the WebEquity purchase price approximated its fair value as of July 31, 2014 due to the proximity of the acquisition to the goodwill impairment assessment date.

			Sensitivity Analysis
			Deficit Caused by a Hypothetical Reduction to Fair Value
	Goodwill		10%			20%			30%			40%
MIS	$	46.7	$	—		$	—		$	—		$	—
RD&A		185.1		—			—			—			—
ERS		286.2		—			(21.9	)		(83.7	)		(145.4	)
FSTC		94.4		(8.6	)		(26.2	)		(43.9	)		(61.5	)
Copal Amba		156.7		—			—			—			—
ICRA		252.0		*			*			*			*
Totals	$	1,021.1	$	(8.6	)	$	(48.1	)	$	(127.6	)	$	(206.9	)

* ICRA was excluded from the sensitivity analysis in the table above as it was acquired in June 2014. Due to the proximity of the acquisition date to the annual goodwill assessment date, the purchase price of the net assets acquired approximates its fair value at July 31, 2014.

As can be seen from the table above, the reporting unit most at risk for potential impairment is the FSTC reporting unit and failure to meet its financial projections could result in further goodwill impairment (there was a goodwill impairment charge of $12.2 million for this reporting unit in the fourth quarter of 2012). This business is, in part, sensitive to the staffing levels and profitability of the global financial services industry, particularly in Canada and EMEA.

Based on the July 31, 2013 valuation, the ERS reporting unit also carried some risk of potential impairment. Management of the ERS reporting unit continues to focus on expanding market penetration as well as enhancing the scalability of its products and services. This will reduce margins in the near term but is anticipated that it will enhance margins in the medium to long-term.

There could be a future goodwill impairment charge if FSTC fails or ERS significantly fails to meet its current financial plans.

Methodologies and significant estimates utilized in determining of the fair value of reporting units:

The following is a discussion regarding the Company’s methodology for determining the fair value of its reporting units as of the date of each reporting unit’s last quantitative test (July 31, 2014 for FSTC and Copal Amba; July 31, 2013 for the remaining reporting units excluding ICRA). ICRA has not yet been subject to a full quantitative impairment analysis due to the proximity of the acquisition of this entity to the annual goodwill impairment assessment date.

The fair value of each reporting unit was estimated using a discounted cash flow methodology and comparable public company and precedent transaction multiples. The DCF analysis requires significant estimates, including projections of future operating results and cash flows of each reporting unit, which is based on internal budgets and strategic plans, expected long-term growth rates, terminal values, weighted average cost of capital and the effects of external factors and market conditions. Changes in these estimates and assumptions could materially affect the estimated fair value of each reporting unit which could result in an impairment charge to reduce the carrying value of goodwill, which could be material to the Company’s financial position and results of operations. Moody’s allocates newly acquired goodwill to reporting units based on the reporting unit expected to benefit from the acquisition. The Company evaluates its reporting units on an annual basis, or more frequently if there are changes in the reporting structure of the Company due to acquisitions or realignments.

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The sensitivity analyses on the future cash flows and WACC assumptions described below are as of the date of last quantitative assessment for each reporting unit. The following discusses the key assumptions utilized in the discounted cash flow valuation methodology which requires significant management judgment:

» Future cash flow assumptions: The projections for future cash flows utilized in the models are derived from historical experience and assumptions regarding future growth and profitability of each reporting unit. These projections are consistent with the Company’s operating and strategic plan. Cash flows for the five years subsequent to the date of the quantitative goodwill impairment analysis were utilized in the determination of the fair value of each reporting unit. The growth rates assumed a gradual increase in revenue from financial service customers based on a continued improvement in the global economy and capital markets, new customer acquisition and new products. Beyond five years a terminal value was determined using a perpetuity growth rate based on inflation and real GDP growth rates. A sensitivity analysis of the growth rates was performed on all reporting units. For all reporting units, a 10% decrease in the growth rates used would not have resulted in the carrying value of the reporting unit exceeding its respective estimated fair value.

» WACC: The WACC is the rate used to discount each reporting unit’s estimated future cash flows. The WACC is calculated based on the proportionate weighting of the cost of debt and equity. The cost of equity is based on a risk-free interest rate, an equity risk factor which is derived from public companies similar to the reporting unit and which captures the perceived risks and uncertainties associated with the reporting unit’s cash flows. The cost of debt component is calculated as the weighted average cost associated with all of the Company’s outstanding borrowings as of the date of the impairment test and was immaterial to the computation of the WACC. The cost of debt and equity is weighted based on the debt to market capitalization ratio of publicly traded companies with similarities to the reporting unit being tested. The WACC for all reporting units ranged from 10% to 11.5% as of the date of the last quantitative assessment for each reporting unit. Differences in the WACC used between reporting units is primarily due to distinct risks and uncertainties regarding the cash flows of the different reporting units. A sensitivity analysis of the WACC was performed on all reporting units as of the date of the last quantitative goodwill assessment for each reporting unit. For the FSTC reporting unit, an increase in the WACC of one percentage point would have resulted in the carrying value of the reporting unit exceeding its estimated fair value by approximately $2 million. For the remaining reporting units, an increase in the WACC of one percentage point would not result in the carrying value of the reporting unit exceeding its fair value.

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. There were no such events or changes during 2014 that would indicate that the carrying amount of amortizable intangible assets in any of the Company’s reporting units may not be recoverable. This determination was made based on continued growth, consistent with operating and strategic plans for the reporting unit where the intangible asset resides. Additionally, there were no events or circumstances during 2014 that would indicate the need for an adjustment of the remaining useful lives of these amortizable intangible assets.

Pension and Other Retirement Benefits

The expenses, assets and liabilities that Moody’s reports for its Retirement Plans are dependent on many assumptions concerning the outcome of future events and circumstances. These assumptions include the following:

» future compensation increases, based on the Company’s long-term actual experience and future outlook;

» long-term return on pension plan assets, based on historical portfolio results and the expected future average annual return for each major asset class within the plan’s portfolio (which is principally comprised of equity and fixed-income investments);

» future healthcare cost trends, based on historical market data, near-term outlooks and assessments of likely long-term trends; and

» discount rates, based on current yields on high-grade corporate long-term bonds.

The discount rates selected to measure the present value of the Company’s benefit obligation for its Retirement Plans as of December 31, 2014 were derived using a cash flow matching method whereby the Company compares each plan’s projected payment obligations by year with the corresponding yield on the Citibank pension discount curve. The cash flows by plan are then discounted back to present value to determine the discount rate applicable to each plan.

Moody’s major assumptions vary by plan and assumptions used are set forth in Note 12 to the consolidated financial statements. In determining these assumptions, the Company consults with outside actuaries and other advisors as deemed appropriate. While the Company believes that the assumptions used in its calculations are reasonable, differences in actual experience or changes in assumptions could have a significant effect on the expenses, assets and liabilities related to the Company’s Retirement Plans. Additionally, the Company has updated its mortality assumption by adopting the newly released RP-2014 mortality tables and accompanying mortality improvement scale MP-2014 to reflect the latest information regarding future mortality expectations by the Society of Actuaries.

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When actual plan experience differs from the assumptions used, actuarial gains or losses arise. Excluding differences between the expected long-term rate of return assumption and actual experience on plan assets, the Company amortizes, as a component of annual pension expense, total outstanding gains or losses over the estimated average future working lifetime of active plan participants to the extent that the gain/loss exceeds 10% of the greater of the beginning-of-year projected benefit obligation or the market-related value of plan assets. For Moody’s Retirement Plans, the total actuarial losses as of December 31, 2014 that have not been recognized in annual expense are $176.9 million, and Moody’s expects to recognize a net periodic expense of $13.9 million in 2015 related to the amortization of actuarial losses.

For Moody’s funded U.S. pension plan, the differences between the expected long-term rate of return assumption and actual experience could also affect the net periodic pension expense. As permitted under ASC Topic 715, the Company spreads the impact of asset experience over a five-year period for purposes of calculating the market-related value of assets that is used in determining the expected return on assets’ component of annual expense and in calculating the total unrecognized gain or loss subject to amortization. As of December 31, 2014, the Company has an unrecognized asset gain of $5.4 million, of which $0.8 million will be recognized in the market-related value of assets that is used to calculate the expected return on assets’ component of 2016 expense.

The table below shows the estimated effect that a one percentage-point decrease in each of these assumptions will have on Moody’s 2015 operating income. These effects have been calculated using the Company’s current projections of 2015 expenses, assets and liabilities related to Moody’s Retirement Plans, which could change as updated data becomes available.

	Assumption Used for 2015		Estimated Impact on 2015 Operating Income (Decrease)/Increase
Weighted Average Discount Rates*		3.78%/3.65%	$	(13.4	)
Weighted Average Assumed Compensation Growth Rate		3.76%	$	2.4
Assumed Long-Term Rate of Return on Pension Assets		5.80%	$	(2.5	)

* Weighted average discount rates of 3.78% and 3.65% for pension plans and Other Retirement Plans, respectively.

A one percentage-point increase in assumed healthcare cost trend rates will not affect 2015 projected expenses. Based on current projections, the Company estimates that expenses related to Retirement Plans will be $43.7 million in 2015 compared with $30.6 million in 2014. The expected expense increase in 2015 reflects the effects of higher benefit obligations primarily due to lower discount rate assumptions, higher amortization of actuarial losses, and a lower assumed long term rate of return on pension assets.

Stock-Based Compensation

The Company records compensation expense for all share-based payment award transactions granted to employees based on the fair value of the equity instrument at the time of grant. This includes stock options and restricted stock. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model that uses assumptions and estimates that the Company believes are reasonable. Some of the assumptions and estimates, such as share price volatility and expected option holding period, are based in part on Moody’s experience during the period since becoming a public company. The use of different assumptions and estimates in the Black-Scholes option pricing model could produce materially different estimated fair values for option awards and related expense.

An increase in the following assumptions would have had the following estimated effect on operating income in 2014 (dollars in millions):

	Assumption Used for 2010-2014 employee stock  options		Increase in Assumption		Estimated impact on Operating Income in 2014 Increase/(Decrease)
Average Expected Dividend Yield		1.3% - 2.1%		0.1%	$	0.3
Average Expected Share Price Volatility		39.8% - 48.7%		5%	$	(2.0	)
Expected Option Holding Period		5.6 - 7.6 years		1.0 year	$	(1.0	)

Income Taxes

The Company is subject to income taxes in the U.S. and various foreign jurisdictions. The Company’s tax assets and liabilities are affected by the amounts charged for services provided and expenses incurred as well as other tax matters such as intercompany transactions. The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes, and deferred income taxes reflect the effect of temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes.

The Company is subject to tax audits in various jurisdictions which involve Legacy Tax and other tax matters. The Company regularly assesses the likely outcomes of such audits in order to determine the appropriateness of liabilities for UTPs. The Company classifies

34 MOODY’S  2014 10K

interest related to income taxes as a component of interest expense in the Company’s consolidated financial statements and associated penalties, if any, as part of other non-operating expenses.

For UTPs, ASC Topic 740 requires a company to first determine whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. As the determination of liabilities related to UTPs and associated interest and penalties requires significant estimates to be made by the Company, there can be no assurance that the Company will accurately predict the outcomes of these audits, and thus the eventual outcomes could have a material impact on the Company’s operating results or financial condition.

For certain of its non-U.S. subsidiaries, the Company has deemed the undistributed earnings relating to these subsidiaries to be indefinitely reinvested within its foreign operations. Accordingly, the Company has not provided deferred income taxes on these indefinitely reinvested earnings. It is not practicable to determine the amount of deferred taxes that might be required to be provided if such earnings were distributed in the future due to complexities in the tax laws and in the hypothetical calculations that would have to be made.

Other Estimates

In addition, there are other accounting estimates within Moody’s consolidated financial statements, including recoverability of deferred tax assets, anticipated dividend distributions from non-U.S. subsidiaries and valuation of investments in affiliates. Management believes the current assumptions and other considerations used to estimate amounts reflected in Moody’s consolidated financial statements are appropriate. However, if actual experience differs from the assumptions and other considerations used in estimating amounts reflected in Moody’s consolidated financial statements, the resulting changes could have a material adverse effect on Moody’s consolidated results of operations or financial condition.

See Note 2 to the consolidated financial statements for further information on significant accounting policies that impact Moody’s.

REPORTABLE SEGMENTS

The Company is organized into two reportable segments at December 31, 2014: MIS and MA.

The MIS segment is comprised primarily of all of the Company’s ratings operations. The MIS segment consists of five lines of business – CFG, SFG, FIG, PPIF and MIS Other. The ratings 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 consists of certain non-ratings operations managed by MIS which consists of non-rating revenue from ICRA as well as certain research and fixed income pricing service operations in the Asia-Pacific region.

The MA segment develops a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets. The MA segment consists of three lines of business – RD&A, ERS and PS.

In December 2013, a subsidiary of the Company acquired Amba, a provider of investment research and quantitative analytics for global financial institutions. Amba is part of the MA reportable segment and its revenue is included in the PS LOB. In June 2014, a subsidiary of the Company acquired a controlling stake in ICRA, a leading provider of credit ratings and research in India. ICRA is part of the MIS reportable segment and its ratings revenue is included in the respective ratings LOBs of MIS while its non-ratings revenue is included in the MIS Other LOB. In July 2014, a subsidiary of the Company acquired WebEquity, a leading provider of cloud-based loan origination solutions for financial institutions. WebEquity is part of the MA reporting segment and its revenue is included in the ERS LOB. In October 2014, the Company acquired Lewtan, a leading provider of analytical tools and data for the global structured finance market. Lewtan is part of the MA reportable segment and its revenue is included in the RD&A LOB.

Pursuant to the acquisition of ICRA, the Company realigned certain components of its reportable segments in the fourth quarter of 2014. This realignment resulted in the creation of the MIS Other LOB which now consists of non-ratings revenue from ICRA as well as certain research and fixed income pricing revenue in the Asia-Pacific region which was previously reported in the RD&A LOB of MA. These businesses are all managed by MIS and the expenses from these operations will be included in the MIS reportable segment. All prior period results for both MIS and MA have been restated to reflect this realignment and the impact of the realignment was not significant to MIS’s or MA’s previously reported results.

The following is a discussion of the results of operations of the Company and its reportable segments. Total MIS revenue and total MA expenses include the intersegment royalty revenue for MIS and expense charged to MA for the rights to use and distribute content, data and products developed by MIS. The royalty rate charged by MIS approximates the fair value of the aforementioned content, data and products developed by MIS. Total MA revenue and total MIS expenses include intersegment fees charged to MIS from MA for the

MOODY’S  2014 10K 35

use of certain MA products and services in MIS’s ratings process. These fees charged by MA are generally equal to the costs incurred by MA to provide these products and services. Overhead charges and corporate expenses which exclusively benefit one segment are fully charged to that segment. Additionally, overhead costs and corporate expenses of the Company which benefit both segments are generally allocated to each segment based on a revenue-split methodology. Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and information technology.

RESULTS OF OPERATIONS

Year ended December 31, 2014 compared with year ended December 31, 2013

Executive Summary

» Moody’s revenue in 2014 totaled $3,334.3 million, an increase of $361.8 million compared to 2013 and reflected growth in both MIS and MA.

» Total expenses increased $157.3 million compared to the prior year reflecting higher compensation costs of approximately $155 million primarily relating to headcount growth (both organic and from acquisitions) and annual compensation increases coupled with higher incentive compensation reflecting higher achievement against full-year targeted results in 2014 compared to 2013. Non-compensation expenses were flat compared to 2013 with higher rent and occupancy costs, higher costs related to the Company’s investment in IT infrastructure and higher variable costs correlated with business growth being offset by a litigation settlement charge in the prior year.

» Operating income of $1,439.1 million increased $204.5 million compared to 2013 and resulted in an operating margin of 43.2%, compared to 41.5% in the prior year. Adjusted Operating Income of $1,534.7 million in 2014 increased $206.7 million compared to 2013, resulting in an Adjusted Operating Margin of 46.0% compared to 44.7% in the prior year period. Both the operating margin and Adjusted Operating Margin in 2013 included the aforementioned litigation settlement charge.

» Non-operating income (expense), net was $21.9 million compared to net expense of ($65.3) million in 2013. The change reflects the $102.8 million ICRA Gain and FX gains relating to the strengthening of the U.S. dollar to the euro and British pound partially offset by higher interest expense reflecting additional long-term debt issued by the Company in 2014.

» The ETR increased 90bps compared to 2013 primarily due to a greater legacy tax settlement in 2013, as well as a tax benefit in 2013 related to retroactive tax legislation.

» Diluted EPS of $4.61 in 2014, which included $0.37 for the ICRA Gain as well as a $0.03 benefit from a Legacy Tax Matter, increased $1.01 over 2013, which included a $0.14 charge related to the aforementioned litigation settlement and a $0.09 benefit from a Legacy Tax Matter. Excluding the ICRA Gain and litigation settlement charge in 2014 and 2013, respectively, and the benefit from the Legacy Tax Matters in both years, Non-GAAP Diluted EPS in 2014 of $4.21 was $0.56 higher than 2013 Non-GAAP Diluted EPS of $3.65.

36 MOODY’S  2014 10K

Moody’s Corporation

	Year ended December 31,						% Change Favorable (Unfavorable)
	2014			2013
Revenue:
United States	$	1,814.5		$	1,626.5			12	%
International:
EMEA		952.8			862.8			10	%
Asia-Pacific		338.3			286.1			18	%
Americas		228.7			197.1			16	%
Total International		1,519.8			1,346.0			13	%
Total		3,334.3			2,972.5			12	%
Expenses:
Operating		930.3			822.4			(13	%)
SG&A		869.3			822.1			(6	%)
Depreciation and amortization		95.6			93.4			(2	%)
Total		1,895.2			1,737.9			(9	%)
Operating income	$	1,439.1		$	1,234.6			17	%
Adjusted Operating Income (1)	$	1,534.7		$	1,328.0			16	%
Interest income (expense), net	$	(116.8	)	$	(91.8	)		(27	%)
Other non-operating income (expense), net	$	35.9		$	26.5			35	%
ICRA Gain	$	102.8		$	—			NM
Net income attributable to Moody’s	$	988.7		$	804.5			23	%
Diluted EPS attributable to Moody’s common shareholders	$	4.61		$	3.60			28	%
Non-GAAP EPS attributable to Moody’s common shareholders	$	4.21		$	3.65			15	%
Operating margin		43.2	%		41.5	%
Adjusted Operating Margin (1)		46.0	%		44.7	%

⁽¹⁾  Adjusted Operating Income, Adjusted Operating Margin and Non-GAAP EPS attributable to Moody’s common shareholders are non-GAAP financial measures. Refer to the section entitled “Non-GAAP Financial Measures” of this Management Discussion and Analysis for further information regarding these measures.

The table below shows Moody’s global staffing by geographic area:

	December 31,					% Change
	2014			2013
United States		3,138			2,847		10	%
International		6,746	*		5,517		22	%
Total		9,884			8,364		18	%

* Total as of December 31, 2014 includes approximately 1,300 staff from the acquisitions of ICRA, Lewtan and WebEquity of which a significant portion are located in low cost jurisdictions.

Global revenue of $3,334.3 million in 2014 increased $361.8 million compared to 2013 reflecting growth in both MIS and MA. The primary drivers of the increase in MIS revenue reflect changes in the mix of fee type, new fee initiatives and certain pricing increases, primarily in the U.S., coupled with growth in rated issuance volumes for CLOs, investment-grade corporate debt and bank loans. Also contributing to the growth were higher monitoring fees. The growth in MA reflects higher revenue across all LOBs. The growth in RD&A resulted from increases in credit research, licensing of ratings data and economic analysis and data while the growth in PS reflected revenue from the fourth quarter 2013 acquisition of Amba as well as growth from the Copal and FSTC businesses. The increase in ERS was driven by growth across nearly all product offerings, most notably in the asset-liability and capital solutions, credit origination,

MOODY’S  2014 10K 37

insurance and stress-testing verticals. Additionally, ERS revenue benefitted from the acquisition of WebEquity Solutions in July 2014. Transaction revenue accounted for 50% of global MCO revenue in both 2014 and 2013.

U.S. revenue of $1,814.5 million in 2014 increased $188.0 million over the prior year, reflecting changes in the mix of fee type, new fee initiatives and certain pricing increases within MIS as well as growth in rated issuance volumes for investment-grade corporate debt and CLOs. Also contributing to the growth were higher monitoring fees in MIS and growth across all LOBs within MA. These increases were partially offset by declines in high-yield corporate debt rated issuance volumes as well as declines in MIS banking-related revenue which is primarily due to an unfavorable shift in issuance mix.

Non-U.S. revenue increased $173.8 million compared to 2013, reflecting growth across all regions in both reportable segments. The growth in the MIS segment reflected changes in the mix of fee type, new fee initiatives and certain pricing increases as well as higher bank loan rated issuance volumes in EMEA. Additionally, higher banking-related rated issuance volumes in Asia-Pacific and higher monitoring fees in all regions contributed to the MIS growth. Additionally, the non-U.S. growth within MA reflected increases in all LOBs across all regions.

Operating expenses were $930.3 million in 2014 and increased $107.9 million from 2013 primarily due to an approximate $92 million increase in compensation costs reflecting higher salaries and related employee benefits resulting from the impact of annual compensation increases and growth in headcount due to incremental hires and the acquisitions of Amba, WebEquity, ICRA and Lewtan. Also contributing to the increase in compensation expenses were higher incentive compensation costs reflecting greater achievement against full-year targeted results compared to the prior year. Additionally, non-compensation expenses increased approximately $16 million primarily reflecting costs associated with the aforementioned acquisitions as well as higher costs to support investments in IT infrastructure.

SG&A expenses of $869.3 million in 2014 increased $47.2 million compared to the prior year period reflecting higher compensation and non-compensation expenses partially offset by the first quarter 2013 litigation settlement charge relating to two matters regarding structured finance transactions rated by MIS, as more fully discussed in Note 18 to the consolidated financial statements. The growth in compensation costs of approximately $63 million was primarily due to higher salaries and related employee benefits resulting from annual compensation increases, headcount growth in MIS and MA as well as in overhead support areas coupled with higher headcount from acquisitions. Also contributing to the increase in compensation expenses were higher incentive compensation costs reflecting greater achievement against full-year targeted results compared to the prior year coupled with headcount growth. Additionally, there were higher rent and occupancy costs of approximately $13 million reflecting additional floors leased at the Company’s 7WTC headquarters coupled with various other real estate expansion projects worldwide as well as higher costs to support investments in the Company’s IT infrastructure. Also, incremental non-compensation expenses from acquisitions contributed to the expense growth.

Operating income of $1,439.1 million increased $204.5 million from 2013. Adjusted Operating Income was $1,534.7 million in 2014 and increased $206.7 million compared to 2013. Operating margin increased 170 bps compared to 2013. Adjusted Operating Margin in 2014 of 46.0% increased 130 bps compared to the prior year. The increase in operating margin and Adjusted Operating Margin is primarily due to the aforementioned litigation settlement charge in 2013 which negatively impacted the prior year margins.

Interest income (expense), net in 2014 was ($116.8) million, a $25.0 million increase in net expense compared to 2013. This increase is primarily due to approximately $26 million in higher interest expense resulting from the issuance of the 2013 Senior Notes in August 2013 as well as the issuance of the 2014 Senior Notes (5-Year) and 2014 Senior Notes (30-Year) in July 2014. Also, the increase in interest expense included approximately $11 million in net costs (net of a gain on the settlement of an interest rate swap) relating to the early repayment of the Series 2005-1 Notes.

Other non-operating income (expense), net was $35.9 million in 2014, a $9.4 million increase in income compared to 2013. The increase reflects FX gains of $20.3 million in 2014 which is primarily due to strengthening of the U.S. dollar relative to the euro and British pound for certain U.S. dollar denominated assets held in international jurisdictions. This increase was partially offset by an approximate $13 million higher benefit from the resolution of Legacy Tax Matters in 2013 compared to 2014.

The $102.8 million ICRA Gain related to a fair value remeasurement of the Company’s previously held equity investment in ICRA which occurred in connection with Moody’s acquiring a controlling stake in ICRA on June 26, 2014.

The Company’s ETR was 31.1% in 2014, up from 30.2% in 2013. The increase was primarily due to a greater legacy tax settlement in 2013 as well as a tax benefit in 2013 related to retroactive tax legislation.

Net Income in 2014, which included $78.5 million for the ICRA Gain as well as a $6.4 million benefit related to the aforementioned Legacy Tax Matter, was $988.7 million, or $4.61 per diluted share. This is an increase of $184.2 million, or $1.01 per diluted share, compared to 2013, which included a $0.14 charge related to the settlement of certain legal matters and a $0.09 benefit related to the resolution of a Legacy Tax Matter.

38 MOODY’S  2014 10K

Excluding the $0.37 ICRA Gain in 2014, the litigation settlement charge in 2013 and benefits from Legacy Tax Matters in both years, Non-GAAP Diluted EPS of $4.21 in 2014 was $0.56 higher than Non-GAAP Diluted EPS of $3.65 in the prior year.

SEGMENT RESULTS

Moody’s Investors Service

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

	Year ended December 31,						% Change Favorable (Unfavorable)
	2014			2013
Revenue:
Corporate finance (CFG)	$	1,109.3		$	996.8			11	%
Structured finance (SFG)		426.5			382.5			12	%
Financial institutions (FIG)		354.7			338.8			5	%
Public, project and infrastructure finance (PPIF)		357.3			341.3			5	%
Total ratings revenue		2,247.8			2,059.4			9	%
MIS Other		18.0			12.2			48	%
Total external revenue		2,265.8			2,071.6			9	%
Intersegment royalty		87.6			78.6			11	%
Total MIS Revenue		2,353.4			2,150.2			9	%
Expenses:
Operating and SG&A (external)		1,062.9			1,021.6			(4	%)
Operating and SG&A (intersegment)		13.3			12.4			(7	%)
Adjusted Operating Income		1,277.2			1,116.2			14	%
Depreciation and amortization		49.4			46.7			(6	%)
Operating income	$	1,227.8		$	1,069.5			15	%
Adjusted Operating Margin		54.3	%		51.9	%
Operating margin		52.2	%		49.7	%

The following is a discussion of external MIS revenue and operating expenses:

Global MIS revenue of $2,265.8 million in 2014 increased $194.2 million compared to 2013 with the most notable drivers reflecting benefits from changes in the mix of fee type, new fee initiatives and certain pricing increases as well as higher rated issuance volumes for investment-grade corporate debt and CLOs. The growth over 2013 also reflects higher monitoring fees across all regions. These increases were partially offset by declines in rated issuance volumes in high-yield corporate debt as well as banking-related revenue in the U.S. Transaction revenue for MIS was 61% in 2014, down slightly from 62% in the prior year.

In the U.S., revenue was $1,341.0 million in 2014, an increase of $124.3 million compared to 2013 reflecting changes in the mix of fee type, new fee initiatives and certain pricing increases coupled with growth in rated issuance volumes for investment-grade corporate debt and CLOs. Additionally, higher monitoring fees contributed to the revenue growth. These increases were partially offset by unfavorable issuance mix in the banking sector and lower rated issuance volumes for speculative-grade corporate debt.

Non-U.S. revenue was $924.8 million in 2014, an increase of $69.9 million compared to 2013. The growth reflects higher bank loan and structured credit revenue in EMEA and Asia-Pacific and higher banking-related issuance volumes in Asia-Pacific. Also contributing to the growth were changes in the mix of fee type, new fee initiatives and certain pricing increases, as well as higher monitoring fees across all regions resulting from an expanding base of monitored instruments. Partially offsetting these increases were declines in investment-grade corporate debt, ABS, covered bond and infrastructure finance revenue in the EMEA region.

Global CFG revenue of $1,109.3 million in 2014 increased $112.5 million from 2013 reflecting higher U.S. investment-grade rated issuance volumes coupled with changes in the mix of fee type, new fee initiatives and certain pricing increases, primarily in the U.S. The growth in U.S. investment grade revenue reflects increases in rated issuance volumes, most notably in the fourth quarter of 2014, reflecting issuance related to M&A activity and a shift of investor demand towards high-grade instruments due to falling oil prices and geopolitical and global macroeconomic growth uncertainties. Monitoring and program fee revenue also contributed to the revenue

MOODY’S  2014 10K 39

growth in all regions due to an expanding base of monitored instruments. Additionally, there were higher rated issuance volumes for bank loans in EMEA reflecting issuers taking advantage of favorable market conditions as well as higher bank loan revenue in the U.S. reflecting a favorable shift in issuance mix. Partially offsetting these increases was a decline in high-yield corporate debt issuance in the U.S. reflecting investor demand shifting to investment-grade securities as well as declines in investment-grade revenue in EMEA compared to robust refinancing issuance volumes in the prior year. Transaction revenue represented 70% of total CFG revenue in 2014, compared to 73% in the prior year period. In the U.S., revenue in 2014 was $687.3 million, or $74.1 million higher than the prior year. Internationally, revenue of $422.0 million in the 2014 increased $38.4 million compared to the prior year.

Global SFG revenue of $426.5 million in 2014 increased $44.0 million compared to 2013 primarily due to higher rated issuance volumes for CLOs in the U.S. and EMEA resulting from growing liquidity demand coupled with increased investor demand reflecting solid performance and low underlying defaults in this asset class. Also contributing to the growth was an increase in CREF revenue which reflected higher average fees on CMBS deals and higher monitoring revenue as well as the favorable impact of changes in the mix of fee type, new fee initiatives and certain pricing increases. Partially offsetting these increases were declines in ABS and covered bond issuance in EMEA reflecting banks in the region utilizing the unsecured financing market and declines in automobile loans and credit card securitization in the region. Transaction revenue was 62% of total SFG revenue in 2014 compared to 60% in the prior year. In the U.S., revenue of $282.9 million increased $38.2 million compared to 2013. Non-U.S. revenue in 2014 of $143.6 million increased $5.8 million compared to the prior year.

Global FIG revenue of $354.7 million in 2014 was $15.9 million higher compared to 2013 due to changes in the mix of fee type, new fee initiatives and pricing increases as well as higher banking-related issuance in the Asia-Pacific region. Partially offsetting these increases was a decline in U.S. banking revenue which reflected an unfavorable shift in issuance mix. Transaction revenue was 35% of total FIG revenue in both 2014 and 2013. In the U.S., revenue was $141.2 million, or down $2.2 million compared to the prior year. Internationally, revenue was $213.5 million in 2014, or $18.1 million higher compared to 2013.

Global PPIF revenue was $357.3 million in 2014 and increased $16.0 million compared to 2013. The growth reflects changes in the mix of fee type, new fee initiatives and pricing increases partially offset by lower U.S. public finance refunding volumes in the first three quarters of 2014 due to higher benchmark interest rates. Transaction revenue was 58% of total PPIF revenue in 2014 compared to 60% in the prior year. In the U.S., revenue in 2014 was $226.2 million and increased $10.8 million compared to 2013. Outside the U.S., PPIF revenue increased $5.2 million compared to 2013.

Operating and SG&A expenses in 2014 increased $41.3 million compared to 2013 primarily reflecting higher compensation costs of approximately $70 million resulting from annual compensation increases, headcount growth in the ratings LOBs and from the acquisition of ICRA as well as in support areas such as IT, finance and human resources for which the costs are allocated to each segment based on a revenue-split methodology. Also, there were higher non-compensation costs in 2014 to support the Company’s IT systems and infrastructure as well as higher rent and occupancy costs of approximately $9 million for additional leased floors at 7WTC coupled with various other global real estate expansion projects. Furthermore, the increase in non-compensation expenses reflected the consolidation of the results of operations for ICRA in the fourth quarter of 2014. These increases were partially offset by a litigation settlement charge in 2013 regarding two structured finance transactions rated by MIS as more fully discussed in Note 18 to the consolidated financial statements.

Adjusted Operating Income and operating income in 2014 were $1,277.2 million and $1,227.8 million, respectively, and increased $161.0 million and $158.3 million, respectively, compared to 2013. Adjusted Operating Margin and operating margin were 54.3% and 52.2%, respectively, or 240 bps and 250 bps higher than the prior year, respectively. The increase in both margins compared to the prior year is primarily due to the aforementioned litigation settlement charge in 2013. Adjusted Operating Income and operating income both include intersegment revenue and expense.

40 MOODY’S  2014 10K

Moody’s Analytics

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

	Year ended December 31,						% Change Favorable (Unfavorable)
	2014			2013
Revenue:
Research, data and analytics (RD&A)	$	571.8		$	519.8			10	%
Enterprise risk solutions (ERS)		328.5			262.5			25	%
Professional services (PS)		168.2			118.6			42	%
Total external revenue		1,068.5			900.9			19	%
Intersegment revenue		13.3			12.4			7	%
Total MA Revenue		1,081.8			913.3			18	%
Expenses:
Operating and SG&A (external)		736.7			622.9			(18	%)
Operating and SG&A (intersegment)		87.6			78.6			(11	%)
Adjusted Operating Income		257.5			211.8			22	%
Depreciation and amortization		46.2			46.7			1	%
Operating income	$	211.3		$	165.1			28	%
Adjusted Operating Margin		23.8	%		23.2	%
Operating margin		19.5	%		18.1	%

The following is a discussion of external MA revenue and operating expenses:

Global MA revenue increased $167.6 million compared to 2013, with growth across all LOBs. Recurring revenue comprised 73% and 77% of total MA revenue in 2014 and 2013, respectively.

In the U.S., revenue of $473.5 million in 2014 increased $63.7 million, and reflected growth across all LOBs. International revenue of $595.0 million in 2014 was $103.9 million higher than in 2013.

Global RD&A revenue, which comprised 54% and 58% of total external MA revenue in 2014 and 2013, respectively, increased $52.0 million over the prior year period. The growth, which was most notable in the U.S. and EMEA, was primarily due to increases in credit research, licensing of ratings data and economic analysis and data. Additionally, the growth reflected general market price increases, the favorable impact of changes in FX translation rates and revenue from the acquisition of Lewtan in the fourth quarter of 2014. In the U.S., revenue of $306.8 million increased $25.0 million compared to 2013. Internationally, revenue increased $27.0 million compared to the prior year.

Global ERS revenue in 2014 increased $66.0 million over 2013, primarily due to growth across nearly all product offerings, most notably in the asset-liability and capital solutions, credit origination, insurance and stress testing verticals. The revenue growth also reflects the acquisition of WebEquity in the third quarter of 2014. Revenue in ERS is subject to quarterly volatility resulting from the variable nature of project timing and the concentration of software implementation and license revenue in a relatively small number of engagements. In the U.S., revenue of $110.1 million increased $13.7 million compared to 2013. Internationally, revenue of $218.4 million increased $52.3 million compared to the prior year.

Revenue from PS increased $49.6 million compared to 2013 with approximately 84% of the growth reflecting revenue from the acquisition of Amba in the fourth quarter of 2013. In addition to the acquisition of Amba, the growth reflects further penetration into the market for outsourced research and analytical services as well as growth in the FSTC business. In the U.S., revenue of $56.6 million increased $25.0 million compared to 2013. Internationally, revenue increased $24.6 million compared to the prior year.

Operating and SG&A expenses in 2014 increased $113.8 million compared to 2013. The expense growth reflects an approximate $85 million increase in compensation costs primarily due to higher headcount to support business growth as well as higher headcount in support areas, for which the costs are allocated to each segment based on a revenue- split methodology. Headcount from the acquisitions of Amba, WebEquity and Lewtan as well as annual merit increases also contributed to the compensation expense growth. The growth in compensation costs also reflects higher incentive compensation due to higher achievement against full-year targeted results compared to the prior year. Non-compensation expenses increased approximately $29 million due to higher consulting costs for continued investment in IT infrastructure as well as costs related to ERS product development and project delivery. Furthermore, there was an increase in rent and occupancy costs of approximately $6 million reflecting additional floors at 7WTC as well as various other real estate expansion projects worldwide. Also, the expense growth reflected additional non-compensation costs related to the acquisitions of Amba, WebEquity and Lewtan. These increases were partially offset by approximately $6 million in lower contingent consideration costs relating to the Copal acquisition.

MOODY’S  2014 10K 41

Adjusted Operating Income was $257.5 million in 2014 and increased $45.7 million compared to the same period in 2013. Operating income of $211.3 million in 2014 increased $46.2 million compared to the same period in 2013. Adjusted Operating Margin in 2014 was 23.8%, up 60 bps from 2013. Operating margin was 19.5% in 2014, up 140 bps from the prior year. Adjusted operating income and operating income both include intersegment revenue and expense.

Year ended December 31, 2013 compared with year ended December 31, 2012

Executive Summary

» Moody’s revenue in 2013 totaled $2,972.5 million, an increase of $242.2 million compared to 2012 and reflected good growth in both reportable segments, most notably in the high-yield and bank loan sectors of CFG within MIS and within all LOBs within MA.

» Total expenses, which included the settlement of the Abu Dhabi and Rhinebridge litigation matters more fully discussed in Note 18 to the consolidated financial statements, increased $85.0 million compared to the prior year which included a $12.2 million goodwill impairment charge relating to the Company’s FSTC reporting unit within MA. The increase in expenses also reflected higher salaries and benefit costs of $56.2 million primarily relating to headcount growth and annual compensation increases. These increases were partially offset by lower incentive compensation costs of $30.3 million.

» Operating income of $1,234.6 million increased $157.2 million compared to 2012 and resulted in an operating margin of 41.5% in 2013, compared to 39.5% in the prior year. Adjusted Operating Income of $1,328.0 million in 2013 increased $144.9 million compared to 2012 resulting in an Adjusted Operating Margin of 44.7% compared to 43.3% in the prior year period.

» Diluted EPS of $3.60 in 2013, which includes a $0.14 charge in the first quarter related to the aforementioned settlement of two litigation matters and a $0.09 benefit from a Legacy Tax Matter in the fourth quarter of 2013, increased $0.55 over the prior year period, which included a $0.06 benefit relating to a Legacy Tax Matter. Excluding the litigation settlement in the first quarter of 2013 and the benefits from Legacy Tax Matters in both years, Non-GAAP Diluted EPS was $3.65, or $0.66 higher than $2.99 in 2012.

Moody’s Corporation

	Year Ended December 31,						% Change Favorable (Unfavorable)
	2013			2012
Revenue:
United States	$	1,626.5		$	1,472.4			10	%
International:
EMEA		862.8			800.2			8	%
Asia-Pacific		286.1			266.5			7	%
Americas		197.1			191.2			3	%
Total International		1,346.0			1,257.9			7	%
Total		2,972.5			2,730.3			9	%
Expenses:
Operating		822.4			795.0			(3	%)
SG&A		822.1			752.2			(9	%)
Goodwill impairment charge		—			12.2			100	%
Depreciation and amortization		93.4			93.5			—
Total		1,737.9			1,652.9			(5	%)
Operating income	$	1,234.6		$	1,077.4			15	%
Adjusted Operating Income (1)	$	1,328.0		$	1,183.1			12	%
Interest income (expense), net	$	(91.8	)	$	(63.8	)		(44	%)
Other non-operating income (expense), net	$	26.5		$	10.4			155	%
Net income attributable to Moody’s	$	804.5		$	690.0			17	%
Diluted EPS attributable to Moody’s common shareholders	$	3.60		$	3.05			18	%
Non-GAAP Diluted EPS attributable to Moody’s common shareholders	$	3.65		$	2.99			22	%
Operating margin		41.5	%		39.5	%
Adjusted Operating Margin (1)		44.7	%		43.3	%

(1) Adjusted Operating Income, Adjusted Operating Margin and Non-GAAP Diluted EPS attributable to Moody’s common shareholders are non-GAAP financial measures. Refer to the section entitled “Non-GAAP Financial Measures” of this Management Discussion and Analysis for further information regarding these measures.

42 MOODY’S  2014 10K

The table below shows Moody’s global staffing by geographic area:

	December 31,
	2013			2012		% Change
United States		2,847			2,609		9	%
International		5,517	*		4,149		33	%
Total		8,364			6,758		24	%

* Total as of December 31, 2013 includes 971 staff from the fourth quarter 2013 acquisition of Amba, of which a significant portion are based in low cost jurisdictions.

Global revenue of $2,972.5 million in 2013 increased $242.2 million compared to 2012 reflecting good growth in both reportable segments. The increase in ratings revenue reflects benefits from changes in the mix of fee type, new fee initiatives and certain pricing increases, primarily in the U.S., coupled with higher global rated issuance volumes for high-yield corporate debt and bank loans. The growth in MA reflects higher revenue across all LOBs, most notably in RD&A, which benefited from solid demand for data and analytic products, and in ERS which was driven by the completion of certain software implementations. Transaction revenue accounted for 50% of global MCO revenue in both 2013 and 2012.

U.S. revenue of $1,626.5 million increased $154.1 million over 2012, reflecting growth across all ratings LOBs, most notably in CFG and SFG, coupled with growth in all LOBs within MA.

Non-U.S. revenue increased $88.1 million compared to 2012, reflecting higher CFG revenue in all regions coupled with increases in MA revenue within the EMEA and Asia-Pacific regions. These increases were partially offset by declines in all asset classes in SFG within the EMEA region.

Operating expenses were $822.4 million in 2013, an increase of $27.4 million from 2012 and reflected growth in both compensation and non-compensation costs. The increase in compensation costs of approximately $11 million reflects higher salaries and related employee benefits of approximately $30 million primarily resulting from increases in headcount as well as the impact of annual compensation increases. These increases were partially offset by lower incentive compensation of approximately $21 million due to lower achievement against full-year targeted results in 2013 compared to 2012. The growth in non-compensation expenses of approximately $17 million is primarily due to an increase in costs relating to ongoing IT initiatives coupled with higher variable costs correlated with business growth.

SG&A expenses of $822.1 million in 2013 increased $69.9 million from 2012 with the primary driver of the expense growth reflecting the settlement of the Abu Dhabi and Rhinebridge litigation matters more fully discussed in Note 18 to the consolidated financial statements. The remaining increase in SG&A expenses reflects growth in compensation costs of approximately $18 million primarily due to higher salaries and related employee benefits of approximately $26 million resulting from annual compensation increases and headcount growth in sales personnel within MA as well as in overhead support areas. The growth in salaries and related employee benefits was partially offset by lower incentive compensation of approximately $10 million due to lower achievement against full-year targeted results in 2013 compared to 2012. Additionally, there was a decline in non-compensation expenses (excluding the aforementioned settlement for litigation matters) which primarily reflected lower legal defense costs in 2013 following the first quarter litigation settlement. These declines were partially offset by higher costs for ongoing IT initiatives coupled with higher contingent consideration costs of approximately $7 million relating to the acquisition of Copal.

Operating income of $1,234.6 million increased $157.2 million from 2012. Adjusted Operating Income was $1,328.0 million in 2013 and increased $144.9 million compared to 2012. Operating margin and Adjusted Operating Margin of 41.5% and 44.7%, respectively, increased 200bps and 140bps, respectively, compared to the prior year. The increased margins reflected good revenue growth in both reportable segments outpacing operating expense growth.

Interest income (expense), net in 2013 was ($91.8) million, a $28.0 million increase in expense compared to 2012. This increase is due to higher interest on borrowings reflecting the issuance of the 2012 Senior Notes and the 2013 Senior Notes in August 2012 and 2013, respectively, partially offset by lower interest expense due to the final repayment of the 2008 Term Loan in May 2013. Also, the increase in expense reflects an approximate $7 million reversal of interest on UTPs in 2012 related to the settlement of state and local tax audits.

Other non-operating income (expense), net was $26.5 million in 2013, a $16.1 million increase in income compared to 2012 and reflected approximately $6 million in FX losses in 2012 compared to immaterial gains in 2013. The FX losses in 2012 primarily related to the decline of the euro relative to the British pound in the prior year. Also contributing to the increase in income was a higher Legacy Tax benefit in 2013 compared to 2012 ($19.2 million in 2013 compared to $12.8 million in 2012).

MOODY’S  2014 10K 43

The Company’s ETR was 30.2% in 2013, down from 31.7% in 2012. The decrease was primarily due to U.S. tax legislation enacted in early 2013 which retroactively extended certain tax benefits to the 2012 tax year and prospectively extended these benefits to the 2013 tax year as well as tax benefits on the aforementioned litigation settlement charge.

Net Income in 2013 was $804.5 million, or $3.60 per diluted share, and included a $0.14 charge related to the aforementioned litigation settlement in the first quarter of 2013 as well as a $0.09 benefit relating to the resolution of a Legacy Tax Matter. This is an increase of $114.5 million, or $0.55 per diluted share, compared to 2012, which included a $0.06 benefit relating to a Legacy Tax Matter. Excluding the charge for the litigation settlement in 2013 and the Legacy Tax benefits in both years, Non-GAAP Diluted EPS of $3.65 in 2013 was $0.66 higher than in the same period of the prior year.

SEGMENT RESULTS

Moody’s Investors Service

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

	Year Ended December 31,						% Change Favorable (Unfavorable)
	2013			2012
Revenue:
Corporate finance (CFG)	$	996.8		$	857.6			16	%
Structured finance (SFG)		382.5			381.0			—
Financial institutions(FIG)		338.8			325.5			4	%
Public, project and infrastructure finance (PPIF)		341.3			322.7			6	%
Total ratings revenue		2,059.4			1,886.8			9	%
MIS Other		12.2			10.5			16	%
Total external revenue		2,071.6			1,897.3			9	%
Intersegment royalty		78.6			71.5			10	%
Total MIS Revenue		2,150.2			1,968.8			9	%
Expenses:
Operating and SG&A (external)		1,021.6			964.4			(6	%)
Operating and SG&A (intersegment)		12.4			11.9			(4	%)
Adjusted Operating Income		1,116.2			992.5			12	%
Depreciation and amortization		46.7			44.4			(5	%)
Operating income	$	1,069.5		$	948.1			13	%
Adjusted Operating Margin		51.9	%		50.4	%
Operating margin		49.7	%		48.2	%

The following is a discussion of external MIS revenue and operating expenses:

Global MIS revenue of $2,071.6 million in 2013 increased $174.3 million compared to 2012, reflecting growth in all ratings LOBs excluding SFG, which was flat compared to the prior year. The drivers of the growth include changes in the mix of fee type, new fee initiatives and certain pricing increases, primarily in the U.S. and an increase in rated issuance volumes for speculative-grade corporate debt and bank loans, particularly in the first half of 2013, coupled with higher U.S. CMBS and REIT issuance. These increases were partially offset by declines across all asset classes within SFG in EMEA. Transaction revenue for MIS was 62% of total MIS revenue in both 2013 and 2012.

In the U.S., revenue was $1,216.7 million in 2013, an increase of $103.9 million, or 9% compared to 2012 reflecting changes in the mix of fee type, new fee initiatives and certain pricing increases as well as strong growth in rated issuance volumes for bank loans, CMBS, REITs and CLOs. Higher revenue from monitoring fees in CFG also contributed to the growth.

Non-U.S. revenue was $854.9 million in 2013, an increase of $70.4 million compared to 2012 reflecting changes in the mix of fee type, new fee initiatives and certain pricing increases as well as higher revenue from rating high-yield corporate debt and bank loans across all regions. Partially offsetting these increases were declines in rated issuance volumes across most asset classes in SFG within the EMEA region.

Global CFG revenue of $996.8 million in 2013 increased $139.2 million from 2012 reflecting changes in the mix of fee type, new fee initiatives and certain pricing increases, primarily in the U.S. as well as growth in rated issuance volumes for high-yield corporate debt

44 MOODY’S  2014 10K

and bank loans, particularly in the first half of 2013. The increase in high-yield corporate debt and bank loans largely reflected issuers taking advantage of the overall low interest rate environment to issue new debt as well as to refinance existing borrowings combined with increased investor appetite for higher-yielding fixed income securities. Monitoring and program fee revenue also increased due to growth in the number of outstanding rated issuances. Transaction revenue represented 73% of total CFG revenue in 2013, compared to 74% in 2012. In the U.S., revenue in 2013 was $613.2 million, or $51.4 million higher than 2012. Internationally, revenue of $383.6 million in 2013 increased $87.8 million compared to 2012.

Global SFG revenue of $382.5 million in 2013 was flat compared to 2012 reflecting an increase in rated issuance volumes for CMBS, REITs and CLOs in the U.S. coupled with the favorable impact of changes in the mix of fee type, new fee initiatives and certain pricing increases. These increases were offset by declines across all asset classes in EMEA. Transaction revenue was 60% of total SFG revenue in 2013 compared to 58% in 2012. In the U.S., revenue of $244.7 million increased $37.3 million compared to the same period in 2012, reflecting the aforementioned growth in CLO, CMBS and REIT rated issuance volumes due to favorable market conditions. Non-U.S. revenue in 2013 of $137.8 million decreased $35.8 million compared to 2012 reflecting declines across all asset classes in the EMEA region, most notably in RMBS and ABS. The decline in EMEA RMBS and ABS was primarily due to depressed issuance levels reflecting banks use of unsecured financing in preference to securitized funding conduits, coupled with their balance sheets being well funded from the ECB and other government sponsored funding programs (e.g. the ECB’s long-term refinancing operation).

Global FIG revenue of $338.8 million in 2013 was $13.3 million higher compared to 2012 due to benefits from changes in the mix of fee type, new fee initiatives and pricing increases as well as growth in banking-related revenue in the U.S. The growth in banking-related revenue reflects higher issuance volumes from specialty finance, financial leasing and securities holding companies due to favorable market conditions. Additionally, the increase reflected higher insurance revenue, most notably in EMEA, primarily reflecting issuers opportunistically refinancing debt amidst favorable interest rate conditions coupled with issuance to fund M&A activity in the sector, particularly in the first half of 2013. Transaction revenue was 35% of total FIG revenue in 2013 compared to 37% in the same period in 2012. In the U.S. and internationally, revenue was $143.4 million and $195.4 million, respectively, in 2013, or 6% and 3% higher, respectively, compared to 2012.

Global PPIF revenue was $341.3 million in 2013, an increase of $18.6 million compared to 2012, reflecting benefits from changes in the mix of fee type, new fee initiatives and pricing increases as well as increases in U.S. project and infrastructure finance rated issuance volumes. Partially offsetting these increases was a decline in U.S. public finance issuance reflecting lower municipal bond refunding volumes due to higher borrowing costs associated with increases in benchmark interest rates for U.S. Treasury Bonds beginning in May 2013. Transaction revenue was 60% and 61% of total PPIF revenue in 2013 and 2012, respectively. In the U.S., revenue in 2013 was $215.4 million and increased $6.8 million compared to 2012. Outside the U.S., PPIF revenue increased $11.8 million compared to 2012.

Operating and SG&A expenses in 2013 increased $57.2 million compared to 2012 primarily due to growth in non-compensation costs of approximately $56 million, for which the primary driver was the settlement of the Abu Dhabi and Rhinebridge litigation matters more fully discussed in Note 18 to the consolidated financial statements. Compensation costs were flat compared to the prior year reflecting higher salaries and related employee benefits costs of approximately $31 million resulting from annual compensation increases, headcount growth in the ratings LOBs as well as in support areas such as IT, finance and human resources for which the costs are allocated to each segment based on a revenue-split methodology. This increase was offset by an approximate $32 million decline in incentive compensation which was primarily due to lower achievement against full-year targeted results in 2013 compared to 2012.

Adjusted Operating Income in 2013, which includes the aforementioned litigation settlement charge was $1,116.2 million, an increase of $123.7 million compared to 2012. Operating income in 2013 of $1,069.5 million increased $121.4 million from 2012. Adjusted Operating Margin and operating margin were 51.9% and 49.7%, respectively, or both 150bps higher than 2012 and both include intersegment revenue and expense.

MOODY’S  2014 10K 45

Moody’s Analytics

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

	Year Ended December 31,						% Change Favorable (Unfavorable)
	2013			2012
Revenue:
Research, data and analytics (RD&A)	$	519.8		$	482.7			8	%
Enterprise risk solutions (ERS)		262.5			242.6			8	%
Professional services (PS)		118.6			107.7			10	%
Total external revenue		900.9			833.0			8	%
Intersegment revenue		12.4			11.9			4	%
Total MA Revenue		913.3			844.9			8	%
Expenses:
Operating and SG&A (external)		622.9			582.8			(7	%)
Operating and SG&A (intersegment)		78.6			71.5			(10	%)
Adjusted Operating Income		211.8			190.6			11	%
Depreciation and amortization		46.7			49.1			5	%
Goodwill impairment charge		—			12.2			100	%
Operating income	$	165.1		$	129.3			28	%
Adjusted Operating Margin		23.2	%		22.6	%
Operating margin		18.1	%		15.3	%

The following is a discussion of external MA revenue and operating expenses:

Global MA revenue increased $67.9 million compared to 2012, with good growth across all LOBs. Recurring revenue comprised 77% of total MA revenue in both 2013 and 2012.

In the U.S., revenue of $409.8 million in 2013 increased $50.2 million, and reflected growth across all three LOBs. International revenue of $491.1 million in 2013 was $17.7 million higher than in 2012.

Global RD&A revenue, which comprised 58% of total external MA revenue in both 2013 and 2012, increased $37.1 million over the prior year period. The growth was primarily due to increased sales of the CreditView product and solid growth from other data and analytic products as well as general market price increases.

Global ERS revenue in 2013 increased $19.9 million over 2012, primarily due to revenue from the sale and implementation of regulatory and compliance software to various financial institutions. This growth is primarily due to demand for solutions to comply with an increasingly complex regulatory environment in the banking industry. Revenue in ERS is subject to quarterly volatility resulting from the variable nature of project timing and the concentration of revenue in a relatively small number of engagements.

Revenue from PS, which included approximately $2 million in revenue from the acquisition of Amba, increased $10.9 million compared to 2012, reflecting growth in revenue from Copal being partially offset by softness in the FSTC reporting unit. This growth in revenue from Copal reflects further penetration into the market for outsourced research and analytical services.

Operating and SG&A expenses in 2013 increased $40.1 million compared to 2012 reflecting both higher compensation and non-compensation costs of approximately $27 million and $13 million, respectively. The increase in compensation costs reflects higher headcount to support business growth coupled with annual compensation increases as well as higher headcount in support areas for which the costs are allocated to each segment based on a revenue-split methodology. The increase in non-compensation expenses is primarily due to higher contingent consideration costs of approximately $7 million relating to the acquisition of Copal and higher professional service fees of approximately $7 million related to product delivery.

Adjusted Operating Income was $211.8 million in 2013 and increased $21.2 million compared to the same period in 2012. Operating income of $165.1 million in 2013, increased $35.8 million compared to the same period in 2012, which included a $12.2 million goodwill impairment charge. Adjusted Operating Margin for 2013 was 23.2%, compared to 22.6% in 2012. Operating margin was 18.1%, or 280bps higher compared to the prior year, with the higher margin in 2013 reflecting the absence of the aforementioned goodwill impairment charge and good revenue growth outpacing expense growth. Adjusted Operating Income and operating income both include intersegment revenue and expense.

46 MOODY’S  2014 10K

MARKET RISK

Foreign exchange risk:

Moody’s maintains a presence in 32 countries outside the U.S. In 2014, approximately 49% and 62% of the Company’s revenue and expenses, respectively, were reported in functional currencies other than the U.S. dollar, principally in the British pound and the euro. As such, the Company is exposed to market risk from changes in FX rates. As of December 31, 2014, approximately 62% of Moody’s assets were located outside the U.S. making the Company susceptible to fluctuations in FX rates. The effects of translating assets and liabilities of non-U.S. operations with non-U.S. functional currencies to the U.S. dollar are charged or credited to AOCI in the consolidated statements of shareholders’ equity (deficit).

The effects of revaluing assets and liabilities that are denominated in currencies other than a subsidiary’s functional currency are charged to other non-operating income (expense), net in the Company’s consolidated statements of operations. Accordingly, the Company enters into foreign exchange forwards to partially mitigate the change in fair value on certain assets and liabilities denominated in currencies other than a subsidiary’s functional currency. If the euro were to weaken 10% relative U.S. dollar, there would be an approximate $4 million unfavorable impact to the fair value of the forward contracts. If the British pound were to weaken 10% relative to the euro, there would be an approximate $3 million unfavorable impact to the fair value of the forward contracts. Additionally, if other foreign currencies in the Company’s foreign exchange forward portfolio were to devalue 10% compared to the euro, there would be an approximate $4 million favorable impact to the fair value of the forward contracts. The change in fair value of the foreign exchange forward contracts would be offset by FX revaluation gains or losses in future earnings on underlying assets and liabilities denominated in currencies other than a subsidiary’s functional currency. Additional information on the Company’s forward contracts can be found in Note 5 to the consolidated financial statements located in Item 8 of this Form 10K.

Additionally, the Company enters into foreign currency forward contracts to hedge the exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against adverse changes in foreign exchange rates. Any change in the fair value of these hedges that is the result of ineffectiveness would be recognized immediately in other non-operating (expense) income in the Company’s consolidated statements of operations. For the year ended December 31, 2014, all gains and losses on these derivatives designated as net investment hedges were recognized in OCI. If all foreign currencies in the Company’s foreign exchange forward portfolio designated as net investment hedges were to appreciate 10% compared to the U.S. dollar, there would be an approximate $26 million unfavorable impact to the foreign currency forwards recorded as an adjustment to OCI. This adjustment would partially offset the currency translation adjustment component of AOCI. Additional information on the Company’s forward contracts designated as net investment hedges can be found in Note 5 to the consolidated financial statements located in Item 8 of this Form 10K.

Moody’s aggregate cash and cash equivalents and short-term investments of $1,677.6 million at December 31, 2014 consisted of $1,250.6 million located outside the U.S. Approximately 47% of the Company’s aggregate cash and cash equivalents and short term investments at December 31, 2014 were held in currencies other than USD. As such, a decrease in the value of foreign currencies against the U.S. dollar, particularly the euro and GBP, could reduce the reported amount of USD cash and cash equivalents and short-term investments.

Credit and Interest rate risk:

The Company’s interest rate risk management objectives are to reduce the funding cost and volatility to the Company and to alter the interest rate exposure to the desired risk profile. Moody’s uses interest rate swaps as deemed necessary to assist in accomplishing these objectives.

The Company is exposed to interest rate risk on its various outstanding fixed rate debt for which the fair value of the outstanding fixed rate debt fluctuates based on changes in interest rates. The Company has entered into interest rate swaps to convert the fixed rate of interest on certain of its borrowings to a floating rate based on the 3-month LIBOR. These swaps are adjusted to fair market value based on prevailing interest rates at the end of each reporting period and fluctuations are recorded as a reduction or addition to the carrying value of the borrowing, while net interest payments are recorded as interest expense/income in the Company’s consolidated statement of operations. A hypothetical change of 100bps in the LIBOR-based swap rate would result in an approximate $24 million change to the fair value of these interest rate swaps. Additional information on these interest rate swaps is disclosed in Note 5 to the consolidated financial statements located in Item 8 of this Form 10K.

Moody’s cash equivalents consist of investments in high-quality investment-grade securities within and outside the U.S. with maturities of three months or less when purchased. The Company manages its credit risk exposure by allocating its cash equivalents among various money market mutual funds, money market deposit accounts, certificates of deposit and issuers of high-grade commercial paper and by limiting the amount it can invest with any single issuer. Short-term investments primarily consist of certificates of deposit.

MOODY’S  2014 10K 47

LIQUIDITY AND CAPITAL RESOURCES

Cash Flow

The Company is currently financing its operations, capital expenditures and share repurchases from operating and financing cash flow.

The following is a summary of the changes in the Company’s cash flows followed by a brief discussion of these changes:

	Year Ended December 31,									Year Ended December 31,
	2014			2013			$ Change Favorable (unfavorable)			2013			2012			$ Change Favorable (unfavorable)
Net cash provided by operating activities	$	1,018.6		$	926.8		$	91.8		$	926.8		$	823.1		$	103.7
Net cash used in investing activities	$	(564.9	)	$	(261.9	)	$	(303.0	)	$	(261.9	)	$	(50.2	)	$	(211.7	)
Net cash (used in) provided by financing activities	$	(1,064.5	)	$	(498.8	)	$	(565.7	)	$	(498.8	)	$	202.6		$	(701.4	)
Free Cash Flow*	$	944.0		$	884.5		$	59.5		$	884.5		$	778.1		$	106.4

* Free Cash Flow is a non-GAAP measure and is defined by the Company as net cash provided by operating activities minus cash paid for capital additions. Refer to the section “Non-GAAP Financial Measures” of this MD&A for further information on this financial measure.

Net cash provided by operating activities

Year ended December 31, 2014 compared to the year ended December 31, 2013:

The following changes in non-cash items impacted cash provided by operating activities in 2014 compared to 2013, relative to net income:

» a $57.1 million increase in deferred income taxes primarily due to an increase in deferred tax liabilities relating to the ICRA Gain;

» a $102.8 million decrease related to the non-cash ICRA Gain in 2014;

In addition to the non-cash items discussed above and an increase in net income of $190.1 million, the change in net cash flows provided by operating activities also reflected:

» an approximate $71 million increase primarily relating to higher incentive compensation payouts in 2013 compared to 2014 which reflected greater achievement against full-year targeted results in 2012 compared to achievement in 2013;

partially offset by:

» an approximate $40 million decrease due to the timing of income tax payments;

» a $31.3 million decrease in cash flow from changes in accounts receivable balances primarily reflecting an increase in accounts receivable balances in 2014 compared to 2013. The increase in accounts receivable balances primarily reflects growth in both MIS and MA revenue. Approximately 29% and 26% of the Company’s accounts receivable balance at December 31, 2014 and 2013, respectively, represents unbilled receivables which primarily reflect certain annual fees in MIS which are invoiced in arrears;

» a $27.7 million decrease relating to changes in deferred revenue balances which includes the impact of timing of revenue recognition for certain projects within ERS.

Year ended December 31, 2013 compared to the year ended December 31, 2012:

The following changes in non-cash items impacted cash provided by operating activities in 2013 compared to 2012, relative to net income:

» A $63.3 million decrease in deferred income taxes primarily due to the utilization of deferred tax assets relating to the settlement of UTPs in the first quarter of 2012;

» a $12.2 million goodwill impairment charge in 2012 related to the FSTC reporting unit within MA.

In addition to the non-cash items discussed above and an increase in net income of $116.2 million, the change in net cash flows provided by operating activities also reflected:

» Payments of approximately $121 million in the first quarter of 2012, reflecting the settlement of state and local tax audits;

» a $61.2 million increase in cash flow from changes in accounts receivable balances primarily reflecting a larger increase in accounts receivable balances in 2012 compared to 2013. The increase in 2012 reflected lower accounts receivable balances at December 31, 2011 resulting from declines in corporate finance issuance in the fourth quarter of 2011. Approximately 26% and 23% of the Company’s accounts receivable balance at December 31, 2013 and 2012, respectively, represents unbilled receivables which primarily reflect certain annual fees in MIS which are invoiced in arrears;

» a $45.2 million increase in cash flows from changes in deferred revenue balances primarily reflecting overall growth in both segments;

48 MOODY’S  2014 10K

Partially offset by:

» an approximate $100 million decrease relating to higher incentive compensation payouts (including profit sharing and related payroll taxes) in 2013 compared to 2012 reflecting higher achievement against full-year targeted results in 2012 compared to achievement in the prior year period;

» an approximate $45 million decrease in cash flows relating to the timing of income tax payments primarily resulting from IRS relief due to Hurricane Sandy which allowed for the delay of fourth quarter 2012 estimated tax payments to the first quarter of 2013;

» a $23.1 million decrease relating to greater excess tax benefits from stock-based compensation plans primarily due to a higher intrinsic value of awards exercised in 2013 resulting from a higher Moody’s stock price.

Net cash used in investing activities

Year ended December 31, 2014 compared to the year ended December 31, 2013:

The $303.0 million increase in cash flows used in investing activities compared to 2013 primarily reflects:

» an increase in capital additions of $32.3 million which reflects ongoing initiatives to enhance the Company’s IT infrastructure as well as costs relating to the build-out of additional leased space at 7WTC;

» higher cash paid for acquisitions in 2014 of $189.0 million reflecting the Company’s purchase of a controlling interest in ICRA as well as the purchase of WebEquity and Lewtan;

» higher net purchases of investments of $103.4 million reflecting the Company’s investment of excess non-U.S. cash balances.

Year ended December 31, 2013 compared to the year ended December 31, 2012:

The $211.7 million increase in cash flows used in investing activities compared to 2012 primarily reflects :

» A $169.7 million increase in cash used to purchase short-term investments with excess non-U.S. cash;

» cash paid, net of cash acquired, of $50.7 million relating to the acquisition of Amba in December 2013.

Net cash used in financing activities

Year ended December 31, 2014 compared to the year ended December 31, 2013:

The $565.7 million increase in cash used in financing activities was primarily attributed to:

» treasury shares repurchased of $1,220.5 million in 2014 compared to $893.1 million repurchased in the prior year period;

» cash paid of $183.8 million in 2014 to redeem the Company’s non-controlling interest in Copal Amba which resulted in Moody’s owning 100% of this business;

» higher dividends paid to MCO shareholders of $38.7 million reflecting $1.12 per share paid in 2014 compared to $0.90 per share paid in the prior year;

» a $38.0 million decrease in net proceeds from stock plans primarily reflecting a decrease in stock options exercised in 2014 compared to the prior year;

partially offset by:

» higher excess tax benefits from stock-based compensation plans of $19.9 million due to due to a higher intrinsic value of awards exercised in 2014 resulting from a higher Moody’s stock price.

Year ended December 31, 2013 compared to the year ended December 31, 2012:

The $701.4 million increase in cash used in financing activities was primarily attributed to:

» treasury shares repurchased of $893.1 million in 2013 compared to $196.5 million repurchased in the prior year period;

» higher dividends paid to MCO shareholders of $54.3 million reflecting $0.90 per share paid in 2013 compared to $0.64 per share paid in the prior year;

Partially offset by:

» an increase in net proceeds from stock-based compensation plans of $19.3 million reflecting higher strike prices for options exercised in 2013 compared to the prior year. These proceeds were partially offset by a greater number of shares repurchased from employees to satisfy tax withholding obligations in connection with the vesting of restricted stock in March 2013;

» higher excess tax benefits from stock-based compensation plans of $23.1 million due to due to a higher intrinsic value of awards exercised in 2013 resulting from a higher Moody’s stock price.

MOODY’S  2014 10K 49

Cash held in non-U.S. jurisdictions

The Company’s aggregate cash and cash equivalents and short-term investments of $1.7 billion at December 31, 2014 consisted of approximately $1.3 billion located outside of the U.S., of which approximately 45% is denominated in euros and British pounds. Over 95% of the cash and short-term investments in the Company’s non-U.S. operations are held by entities whose undistributed earnings are indefinitely reinvested in the Company’s foreign operations. Accordingly, the Company has not provided deferred income taxes on these indefinitely reinvested earnings. A future distribution or change in assertion regarding reinvestment by the foreign subsidiaries relating to these earnings could result in additional tax liability to the Company. It is not practicable to determine the amount of the potential additional tax liability due to complexities in the tax laws and in the hypothetical calculations that would have to be made. The Company manages both its U.S. and international cash flow to maintain sufficient liquidity in all regions to effectively meet its operating needs.

Indebtedness

At December 31, 2014, Moody’s had $2.5 billion of outstanding debt and $1.0 billion of additional capacity available under the 2012 Facility. All significant terms of the Company’s indebtedness are more fully described in Note 15 to the consolidated financial statements. At December 31, 2014, the Company was in compliance with all covenants contained within all of the debt agreements. The 2012 Facility, the 2007 Agreement, the 2010 Indenture, the 2012 Indenture, the 2013 Indenture, and the 2014 Indenture contain cross default provisions. These provisions state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of December 31, 2014, there were no such cross defaults.

On July 16, 2014, the Company issued $450 million aggregate principal amount of unsecured notes in a public offering. The notes bear interest at 2.75% and mature on July 15, 2019. Also on July 16, 2014, the Company issued $300 million aggregate principal amount of unsecured notes in a public offering. The $300 million notes bear interest at 5.25% and mature on July 15, 2044. The Company used the proceeds to retire the Series 2005-1 Notes and will use the remaining proceeds for general corporate purposes. The Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on a portion of the $450 million unsecured notes to a floating interest rate based on the 3-month LIBOR. The purpose of this hedge was to mitigate the risk associated with changes in the fair value of a portion of the $450 million unsecured notes.

The repayment schedule for the Company’s borrowings is as follows:

Year Ended December 31,	Series 2007-1 Notes		2010 Senior Notes		2012 Senior Notes		2013 Senior Notes		2014  Senior Notes (5-Year)		2014  Senior Notes (30-Year)		Total
2015	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2016		—		—		—		—		—		—		—
2017		300.0		—		—		—		—		—		300.0
2018		—		—		—		—		—		—		—
2019		—		—		—		—		450.0		—		450.0
Thereafter		—		500.0		500.0		500.0		—		300.0		1,800.0
Total	$	300.0	$	500.0	$	500.0	$	500.0	$	450.0	$	300.0	$	2,550.0

Management may consider pursuing additional long-term financing when it is appropriate in light of cash requirements for operations, share repurchases and other strategic opportunities, which would result in higher financing costs.

Other Material Future Cash Requirements

The Company believes that it has the financial resources needed to meet its cash requirements and expects to have positive operating cash flow for the next twelve months. Cash requirements for periods beyond the next twelve months will depend, among other things, on the Company’s profitability and its ability to manage working capital requirements. The Company may also borrow from various sources.

The Company remains committed to using its strong cash flow to create value for shareholders by investing in growing areas of the business, reinvesting in ratings quality initiatives, making selective acquisitions, repurchasing stock and paying a dividend, all in manner consistent with maintaining sufficient liquidity after giving effect to any additional indebtedness that may be incurred. In December 2014, the Board of Directors of the Company declared a quarterly dividend of $0.34 per share of Moody’s common stock, payable on March 10, 2015 to shareholders of record at the close of business on February 20, 2015. The continued payment of dividends at this rate, or at all, is subject to the discretion of the Board. On February 11, 2014, the Board approved $1.0 billion of share repurchase authority which has a remaining repurchase authority of approximately $564 million at December 31, 2014. In December 2014, the Board authorized an additional $1.0 billion of share repurchase authority which will be utilized following completion of the program

50 MOODY’S  2014 10K

authorized in February 2014. Full-year 2015 total share repurchases are expected to be approximately $1 billion, subject to available cash, market conditions and other ongoing capital allocation decisions.

On February 6, 2008, the Company entered into an operating lease agreement to occupy six floors of an office tower located in the Canary Wharf district of London, England. The Canary Wharf Lease has an initial term of 17.5-years with a total of 15 years of renewal options. The total base rent of the Canary Wharf Lease over its initial 17.5-year term is approximately £134 million, and the Company began making base rent payments in 2011. In addition to the base rent payments the Company will be obligated to pay certain customary amounts for its share of operating expenses and tax obligations. The total remaining lease payments as of December 31, 2014 are approximately £100 million, of which approximately £10 million will be paid in the next twelve months. Payments under this lease agreement are included in the contractual obligations table below.

On October 20, 2006, the Company entered into an operating lease agreement with 7 World Trade Center, LLC for 589,945 square-feet of an office building located at 7WTC at 250 Greenwich Street, New York, New York, which is serving as Moody’s headquarters. The 7WTC Lease has an initial term of 21 years with a total of 20 years of renewal options. The total base rent of 7WTC Lease over its initial 21-year term is approximately $536 million including rent credits from the World Trade Center Rent Reduction Program promulgated by the Empire State Development Corporation. On March 28, 2007, the 7WTC lease agreement was amended for the Company to lease an additional 78,568 square-feet at 7WTC. The additional base rent is approximately $106 million over a 20-year term. The total remaining lease payments as of December 31, 2014, including the aforementioned rent credits, are approximately $449 million, of which approximately $33 million will be paid during the next twelve months. Payments under this lease agreement are included in the contractual obligations table below.

On October 21, 2013, the Company entered into a fourteen-year lease for three additional floors at its 7WTC headquarters. The total remaining net commitment for this lease is approximately $63 million. The lease became effective in January 2014 and the net cash outlay during the next twelve months will be immaterial. Payments under this lease agreement are included in the contractual obligations table below.

Off-Balance Sheet Arrangements

At December 31, 2014, Moody’s did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as special purpose or variable interest entities where Moody’s is the primary beneficiary, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As such, Moody’s is not exposed to any financing, liquidity, market or credit risk that could arise if it had engaged in such relationships.

Contractual Obligations

The following table presents payments due under the Company’s contractual obligations as of December 31, 2014:

			Payments Due by Period
(in millions)	Total		Less Than 1 Year		1-3 Years		3-5 Years		Over 5 Years
Indebtedness (1)	$	3,637.3	$	107.9	$	514.6	$	626.4	$	2,388.4
Operating lease obligations		837.5		93.4		159.2		137.6		447.3
Purchase obligations		106.3		58.9		47.4		—		—
Contingent consideration related to acquisitions (2)		2.1		—		2.1		—		—
Pension and other retirement obligations (3)		141.2		15.7		16.1		44.1		65.3
Total (4)	$	4,724.4	$	275.9	$	739.4	$	808.1	$	2,901.0

(1) Reflects principal payments, related interest and applicable fees due on the Series 2007-1 Notes, the 2010 Senior Notes, the 2012 Senior Notes, the 2013 Senior Notes, the 2014 Senior Notes (5-year), the 2014 Senior Notes (30-year)and the 2012 Facility as described in Note 15 to the consolidated financial statements

(2) The “1-3 years” category reflects a $2.1 million contingent cash payment related to the November 18, 2010 acquisition of CSI Global Education, Inc. The cash payment is dependent upon the achievement of a certain contractual milestone by January 2016.

(3) Primarily reflects projected benefit payments for the next ten years relating to the Company’s U.S. unfunded Retirement Benefit Plans described in Note 12 to the condensed consolidated financial statements

(4) The table above does not include the Company’s net long-term tax liabilities of $228.6 million relating to UTP and Legacy Tax Matters, since the expected cash outflow of such amounts by period cannot be reasonably estimated.

Non-GAAP Financial Measures:

In addition to its reported results, Moody’s has included in this MD&A certain adjusted results that the SEC defines as “non-GAAP financial measures.” Management believes that such non-GAAP financial measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company’s performance, facilitate comparisons to competitors’ operating results and can provide greater transparency to investors of supplemental

MOODY’S  2014 10K 51

information used by management in its financial and operational decision-making. These non-GAAP measures, as defined by the Company, are not necessarily comparable to similarly defined measures of other companies. Furthermore, these non-GAAP measures should not be viewed in isolation or used as a substitute for other GAAP measures in assessing the operating performance or cash flows of the Company. Below are brief descriptions of the Company’s non-GAAP financial measures accompanied by a reconciliation of the non-GAAP measure to its most directly comparable GAAP measure:

Adjusted Operating Income and Adjusted Operating Margin:

The Company presents Adjusted Operating Income because management deems this metric to be a useful measure of assessing the operating performance of Moody’s, measuring the Company’s ability to service debt, fund capital expenditures, and expand its business. Adjusted Operating Income excludes depreciation and amortization as well as goodwill impairment charges because companies utilize productive assets of different ages and use different methods of acquiring productive assets including goodwill. Companies also have different methods of depreciating and amortizing productive assets as well as different methods of valuing goodwill. Management believes that the exclusion of certain items, detailed in the reconciliation below, allows for a more meaningful comparison of the Company’s operating results from period to period and across companies. Below is a reconciliation of the Company’s operating income and operating margin to Adjusted Operating Income and Adjusted Operating Margin:

	Year Ended December 31,
	2014			2013			2012			2011			2010
Operating income	$	1,439.1		$	1,234.6		$	1,077.4		$	888.4		$	772.8
Adjustments:
Depreciation and amortization		95.6			93.4			93.5			79.2			66.3
Goodwill impairment charge		—			—			12.2			—			—
Restructuring		—			—			—			—			0.1
Adjusted Operating Income	$	1,534.7		$	1,328.0		$	1,183.1		$	967.6		$	839.2
Operating Margin		43.2	%		41.5	%		39.5	%		39.0	%		38.0	%
Adjusted Operating Margin		46.0	%		44.7	%		43.3	%		42.4	%		41.3	%

Non-GAAP Diluted EPS

The Company presents this non-GAAP measure to exclude the impact of litigation settlements, Legacy Tax Matters and the ICRA Gain to allow for a more meaningful comparison of Moody’s diluted earnings per share from period to period. The impact of litigation settlement relates to the settlement of two legal matters in the first quarter of 2013 which are more fully discussed in Note 18 to the consolidated financial statements. The Legacy Tax items are specific to the Company resulting from the 2000 Distribution. The ICRA Gain resulted from the Company acquiring a controlling interest in ICRA in 2014. Below is a reconciliation of these measures to their most directly comparable U.S. GAAP amount:

	Year Ended December 31,
	2014			2013			2012			2011			2010
Diluted EPS attributable to Moody’s common shareholders—GAAP	$	4.61		$	3.60		$	3.05		$	2.49		$	2.15
Legacy Tax		(0.03	)		(0.09	)		(0.06	)		(0.03	)		(0.02	)
ICRA Gain		(0.37	)		—			—			—			—
Impact of litigation settlement		—			0.14			—			—			—
Diluted EPS attributable to Moody’s common shareholders—Non-GAAP	$	4.21		$	3.65		$	2.99		$	2.46		$	2.13

Free Cash Flow:

The Company defines Free Cash Flow as net cash provided by operating activities minus payments for capital additions. Management believes that Free Cash Flow is a useful metric in assessing the Company’s cash flows to service debt, pay dividends and to fund acquisitions and share repurchases. Management deems capital expenditures essential to the Company’s product and service innovations and

52 MOODY’S  2014 10K

maintenance of Moody’s operational capabilities. Accordingly, capital expenditures are deemed to be a recurring use of Moody’s cash flow. Below is a reconciliation of the Company’s net cash flows from operating activities to Free Cash Flow:

	Year Ended December 31,
	2014			2013			2012			2011			2010
Net cash provided by operating activities	$	1,018.6		$	926.8		$	823.1		$	803.3		$	653.3
Capital additions		(74.6	)		(42.3	)		(45.0	)		(67.7	)		(79.0	)
Free Cash Flow	$	944.0		$	884.5		$	778.1		$	735.6		$	574.3
Net cash used in investing activities	$	(564.9	)	$	(261.9	)	$	(50.2	)	$	(267.6	)	$	(228.8	)
Net cash provided by (used in) financing activities	$	(1,064.5	)	$	(498.8	)	$	202.6		$	(417.7	)	$	(241.3	)

2015 OUTLOOK

Moody’s outlook for 2015 is based on assumptions about many macroeconomic and capital market factors, including interest rates, foreign currency exchange rates, corporate profitability and business investment spending, merger and acquisition activity, consumer borrowing and securitization, and the amount of debt issued. There is an important degree of uncertainty surrounding these assumptions, and, if actual conditions differ, Moody’s results for the year may differ materially from the current outlook. The Company’s guidance assumes foreign currency translation at end-of-2014 exchange rates, with the exception of the British pound (£) and the euro (€) which assume foreign currency translation of $1.51 to £1 and $1.15 to €1, respectively.

Full-year 2015 Moody’s Corporation guidance
MOODY’S CORPORATION	Guidance as of the filing of this Form 10K
Revenue	growth in the mid-single-digit percent range
Operating Expenses	growth in the mid-single-digit percent range
Depreciation & amortization	Approximately $120 million
Operating Margin	Approximately 43%
Adjusted Operating Margin	Approximately 46%
Effective tax rate	Approximately 32% - 33%
GAAP EPS	$4.55 to $4.65
Capital expenditures	Approximately $110 - $115 million
Free Cash Flow	Approximately $1 billion
Share repurchases	Approximately $1 billion (subject to available cash, market conditions and other ongoing capital allocation decisions)
Full-year 2015 revenue guidance
MIS	Guidance as of the filing of this Form 10K
MIS global	growth in the mid-single-digit percent range
MIS U.S.	growth in the mid-single-digit percent range
MIS Non-U.S.	growth in the mid-single-digit percent range
CFG	growth in the mid-single-digit percent range
SFG	growth in the mid-single-digit percent range
FIG	growth in the mid-single-digit percent range
PPIF	growth in the high-single-digit percent range
MA	Guidance as of the filing of this Form 10K
MA global	growth in the mid-single-digit percent range
MA U.S.	growth of approximately 10%
MA Non-U.S.	growth in the mid-single-digit percent range
RD&A	growth in the high-single-digit percent range
ERS	growth in the mid-single-digit percent range
PS	approximately flat

MOODY’S  2014 10K 53

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”. This ASU outlines a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual and interim reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company is currently evaluating its adoption options and the impact that adoption of this update will have on its consolidated financial statements. Currently, the Company believes this ASU will have an impact on: i) the capitalization of certain contract implementation costs for its ERS business; ii) the accounting for certain ratings monitoring fees received in advance of service being rendered; iii) the accounting for certain license and maintenance revenue in MA; iv) the accounting for certain ERS revenue arrangements where VSOE is not available and v) the accounting for contract acquisition costs.

In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This ASU clarifies the current accounting guidance for entities that issue share-based payment awards that require a specific performance target be achieved for employees to become eligible to vest in the awards, which may occur subsequent to a required service period. The current accounting guidance does not explicitly address how to account for these types of awards. The ASU provides explicit guidance and clarifies that these types of performance targets should be treated as performance conditions, and accordingly should not be reflected in the determination of the grant-date fair value of the award. This ASU is effective for all annual periods and interim reporting periods beginning after December 15, 2015, with early adoption permitted. The Company currently accounts for transactions involving stock-based compensation awards with performance conditions in accordance with the provisions set forth in this ASU. Accordingly, the adoption of this update will not have an impact on the Company’s consolidated financial statements.

CONTINGENCIES

For information regarding legal proceedings, see Part II, Item 8 – “Financial Statements”, Note 18 “Contingencies” in this Form 10-K.

Forward-Looking Statements

Certain statements contained in this annual report on Form 10-K are forward-looking statements and are based on future expectations, plans and prospects for the Company’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements. Those statements appear at various places throughout this annual report on Form 10-K, including in the sections entitled “2015 Outlook” and “Contingencies” under Item 7. “MD&A”, commencing on page 28 of this annual report on Form 10-K, under “Legal Proceedings” in Part I, Item 3, of this Form 10-K, and elsewhere in the context of statements containing the words “believe”, “expect”, “anticipate”, “intend”, “plan”, “will”, “predict”, “potential”, “continue”, “strategy”, “aspire”, “target”, “forecast”, “project”, “estimate”, “should”, “could”, “may” and similar expressions or words and variations thereof relating to the Company’s views on future events, trends and contingencies. Stockholders and investors are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements and other information are made as of the date of this annual report on Form 10-K, and the Company undertakes no obligation (nor does it intend) to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company is identifying examples of factors, risks and uncertainties that could cause actual results to differ, perhaps materially, from those indicated by these forward-looking statements.

Those factors, risks and uncertainties include, but are not limited to, the current world-wide credit market disruptions and economic slowdown, which is affecting and could continue to affect the volume of debt and other securities issued in domestic and/or global capital markets; other matters that could affect the volume of debt and other securities issued in domestic and/or global capital markets, including credit quality concerns, changes in interest rates and other volatility in the financial markets; the level of merger and acquisition activity in the U.S. and abroad; the uncertain effectiveness and possible collateral consequences of U.S. and foreign government initiatives to respond to the current world-wide credit market disruptions and economic slowdown; concerns in the marketplace affecting Moody’s credibility or otherwise affecting market perceptions of the integrity or utility of independent credit agency ratings; the introduction of competing products or technologies by other companies; pricing pressure from competitors and/or customers; the level of success of new product development and global expansion; the impact of regulation as an NRSRO, the potential for new U.S., state and local legislation and regulations, including provisions in the Financial Reform Act and regulations resulting from that Act; the potential for increased competition and regulation in the EU and other foreign jurisdictions; exposure to litigation related to Moody’s rating opinions, as well as any other litigation to which the Company may be subject from time to time; provisions in the Financial Reform Act legislation modifying the pleading standards, and EU regulations modifying the liability standards, applicable to credit rating agencies in a manner adverse to credit rating agencies; provisions of EU regulations imposing additional procedural and substantive

54 MOODY’S  2014 10K

requirements on the pricing of services; the possible loss of key employees; failures or malfunctions of Moody’s operations and infrastructure; any vulnerabilities to cyber threats or other cybersecurity concerns; the outcome of any review by controlling tax authorities of the Company’s global tax planning initiatives; the outcome of those Legacy Tax Matters and legal contingencies that relate to the Company, its predecessors and their affiliated companies for which Moody’s has assumed portions of the financial responsibility; the impact of mergers, acquisitions or other business combinations and the ability of the Company to successfully integrate acquired businesses; currency and foreign exchange volatility; the level of future cash flows; the levels of capital investments; and a decline in the demand for credit risk management tools by financial institutions. These factors, risks and uncertainties as well as other risks and uncertainties that could cause Moody’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements are described in greater detail under “Risk Factors” in Part I, Item 1A of this annual report on Form 10-K, and in other filings made by the Company from time to time with the SEC or in materials incorporated herein or therein. Stockholders and investors are cautioned that the occurrence of any of these factors, risks and uncertainties may cause the Company’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements, which could have a material and adverse effect on the Company’s business, results of operations and financial condition. New factors may emerge from time to time, and it is not possible for the Company to predict new factors, nor can the Company assess the potential effect of any new factors on it.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information in response to this Item is set forth under the caption “Market Risk” in Part II, Item 7 on page 47 of this annual report on Form 10-K.

MOODY’S  2014 10K 55

ITEM 8. FINANCIAL STATEMENTS

Index to Financial Statements

	Page(s)
Management’s Report on Internal Control Over Financial Reporting		57
Report of Independent Registered Public Accounting Firm		58
Consolidated Financial Statements:
Consolidated Statements of Operations		59
Consolidated Statements of Comprehensive Income		60
Consolidated Balance Sheets		61
Consolidated Statements of Cash Flows		62
Consolidated Statements of Shareholders’ Equity (Deficit)		63-65
Notes to Consolidated Financial Statements		66-109

Schedules are omitted as not required or inapplicable or because the required information is provided in the consolidated financial statements, including the notes thereto.

56 MOODY’S  2014 10K

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management of Moody’s Corporation is responsible for establishing and maintaining adequate internal control over financial reporting and for the assessment of the effectiveness of internal control over financial reporting. As defined by the SEC in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, internal control over financial reporting is a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the Company’s Board, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Moody’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of Moody’s management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management of the Company has undertaken an assessment of the design and operational effectiveness of the Company’s internal control over financial reporting as of December 31, 2014 based on criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The COSO framework is based upon five integrated components of control: risk assessment, control activities, control environment, information and communications and ongoing monitoring.

Based on the assessment performed, management has concluded that Moody’s maintained effective internal control over financial reporting as of December 31, 2014.

The effectiveness of our internal control over financial reporting as of December 31, 2014 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report which appears herein.

/s/ RAYMOND W. MCDANIEL, JR.

Raymond W. McDaniel, Jr.

President and Chief Executive Officer

/s/ LINDA S. HUBER

Linda S. Huber

Executive Vice President and Chief Financial Officer

February 25, 2015

MOODY’S  2014 10K 57

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Moody’s Corporation:

We have audited the accompanying consolidated balance sheets of Moody’s Corporation (the Company) as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income, stockholders’ equity (deficit), and cash flows for each of the years in the three-year period ended December 31, 2014. We also have audited Moody’s Corporation’s internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Moody’s Corporation’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Moody’s Corporation as of December 31, 2014 and 2013, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2014, in conformity with U.S. generally accepted accounting principles. Also in our opinion, Moody’s Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

/s/ KPMG LLP

New York, New York

February 25, 2015

58 MOODY’S  2014 10K

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in millions, except per share data)

	Year Ended December 31,
	2014			2013			2012
Revenue	$	3,334.3		$	2,972.5		$	2,730.3
Expenses
Operating		930.3			822.4			795.0
Selling, general and administrative		869.3			822.1			752.2
Goodwill impairment charge		—			—			12.2
Depreciation and amortization		95.6			93.4			93.5
Total expenses		1,895.2			1,737.9			1,652.9
Operating income		1,439.1			1,234.6			1,077.4
Interest income (expense), net		(116.8	)		(91.8	)		(63.8	)
Other non-operating income (expense), net		35.9			26.5			10.4
ICRA Gain		102.8			—			—
Non-operating income (expense), net		21.9			(65.3	)		(53.4	)
Income before provision for income taxes		1,461.0			1,169.3			1,024.0
Provision for income taxes		455.0			353.4			324.3
Net income		1,006.0			815.9			699.7
Less: Net income attributable to noncontrolling interests		17.3			11.4			9.7
Net income attributable to Moody’s	$	988.7		$	804.5		$	690.0
Earnings per share
Basic	$	4.69		$	3.67		$	3.09
Diluted	$	4.61		$	3.60		$	3.05
Weighted average shares outstanding
Basic		210.7			219.4			223.2
Diluted		214.7			223.5			226.6

The accompanying notes are an integral part of the consolidated financial statements.

MOODY’S  2014 10K 59

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(amounts in millions)

	Year Ended December 31, 2014									Year Ended December 31, 2013									Year Ended December 31, 2012
	Pre-tax amounts			Tax amounts			After-tax amounts			Pre-tax amounts			Tax amounts			After-tax amounts			Pre-tax amounts			Tax amounts			After-tax amounts
Net income							$	1,006.0								$	815.9								$	699.7
Other Comprehensive Income (loss):
Foreign currency adjustments:
Foreign currency translation adjustments	$	(155.3	)	$	2.2			(153.1	)	$	(15.8	)	$	0.6			(15.2	)	$	35.4		$	(0.2	)		35.2
Foreign currency translation adjustments – reclassification of losses included in net income		4.4			—			4.4			1.4			—			1.4			—			—			—
Cash flow and net investment hedges:
Net realized and unrealized (loss) gain on cash flow and net investment hedges		32.3			(12.9	)		19.4			6.3			(2.6	)		3.7			(3.9	)		1.6			(2.3	)
Reclassification of losses included in net income		—			—			—			1.2			(0.5	)		0.7			4.1			(1.7	)		2.4
Available for sale securities:
Net unrealized gains on available for sale securities		1.0			—			1.0			—			—			—			—			—			—
Reclassification of gains included in net income		(0.1	)		—			(0.1	)
Pension and Other Retirement Benefits:
Amortization of actuarial losses and prior service costs included in net income		7.3			(2.8	)		4.5			11.9			(4.9	)		7.0			10.0			(4.1	)		5.9
Net actuarial gains (losses) and prior service costs		(93.8	)		37.1			(56.7	)		50.9			(21.0	)		29.9			(26.0	)		11.2			(14.8	)
Total other comprehensive income (loss)	$	(204.2	)	$	23.6			(180.6	)	$	55.9		$	(28.4	)		27.5		$	19.6		$	6.8			26.4
Comprehensive Income								825.4									843.4									726.1
Less: comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest								17.3									11.4									10.7
Comprehensive income attributable to Moody’s							$	808.1								$	832.0								$	715.4

The accompanying notes are an integral part of the consolidated financial statements.

60 MOODY’S  2014 10K

MOODY’S CORPORATION

CONSOLIDATED BALANCE SHEETS

(amounts in millions, except share and per share data)

	December 31,
	2014			2013
ASSETS
Current assets:
Cash and cash equivalents	$	1,219.5		$	1,919.5
Short-term investments		458.1			186.8
Accounts receivable, net of allowances of $29.4 in 2014 and $28.9 in 2013		792.4			694.2
Deferred tax assets, net		43.9			53.9
Other current assets		172.5			114.4
Total current assets		2,686.4			2,968.8
Property and equipment, net		302.3			278.7
Goodwill		1,021.1			665.2
Intangible assets, net		345.5			221.6
Deferred tax assets, net		167.8			148.7
Other assets		145.9			112.1
Total assets	$	4,669.0		$	4,395.1
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	557.6		$	538.9
Deferred tax liabilities, net		17.5			4.0
Deferred revenue		624.6			598.4
Total current liabilities		1,199.7			1,141.3
Non-current portion of deferred revenue		132.2			109.2
Long-term debt		2,547.3			2,101.8
Deferred tax liabilities, net		95.7			59.1
Unrecognized tax benefits		220.3			195.6
Other liabilities		430.9			360.2
Total liabilities		4,626.1			3,967.2
Contingencies (Note 18)
Redeemable noncontrolling interest		—			80.0
Shareholders’ equity:
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding		—			—
Series common stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding		—			—
Common stock, par value $.01 per share; 1,000,000,000 shares authorized; 342,902,272 shares issued at December 31, 2014 and December 31, 2013, respectively.		3.4			3.4
Capital surplus		383.9			405.8
Retained earnings		6,044.3			5,302.1
Treasury stock, at cost; 138,539,128 and 128,941,621 shares of common stock at December 31, 2014 and December 31, 2013, respectively		(6,384.2	)		(5,319.7	)
Accumulated other comprehensive loss		(235.2	)		(54.6	)
Total Moody’s shareholders’ (deficit) equity		(187.8	)		337.0
Noncontrolling interests		230.7			10.9
Total shareholders’ equity		42.9			347.9
Total liabilities, redeemable noncontrolling interest and shareholders’ equity	$	4,669.0		$	4,395.1

The accompanying notes are an integral part of the consolidated financial statements.

MOODY’S  2014 10K 61

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in millions)

	Year Ended December 31,
	2014			2013			2012
Cash flows from operating activities
Net income	$	1,006.0		$	815.9		$	699.7
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization		95.6			93.4			93.5
Stock-based compensation		80.4			67.1			64.5
Goodwill impairment charge		—			—			12.2
Deferred income taxes		29.9			(27.2	)		36.1
Excess tax benefits from settlement of stock-based compensation awards		(58.7	)		(38.8	)		(15.7	)
ICRA Gain		(102.8	)		—			—
Legacy Tax Matters		(6.4	)		(19.2	)		(12.8	)
Changes in assets and liabilities:
Accounts receivable		(98.3	)		(67.0	)		(128.2	)
Other current assets		(41.0	)		(21.7	)		(14.1	)
Other assets		(1.7	)		(0.7	)		5.1
Accounts payable and accrued liabilities		59.2			(2.9	)		101.7
Deferred revenue		38.4			66.1			20.9
Unrecognized tax benefits		30.6			30.9			(49.2	)
Other liabilities		(12.6	)		30.9			9.4
Net cash provided by operating activities		1,018.6			926.8			823.1
Cash flows from investing activities
Capital additions		(74.6	)		(42.3	)		(45.0	)
Purchases of investments		(406.3	)		(225.9	)		(56.2	)
Sales and maturities of investments		134.0			57.0			54.5
Cash paid for acquisitions and investment in affiliates, net of cash acquired		(239.7	)		(50.7	)		(3.5	)
Payments for settlements of net investment hedges		(0.5	)		—			—
Receipts from settlement of net investment hedges		22.2			—			—
Net cash used in investing activities		(564.9	)		(261.9	)		(50.2	)
Cash flows from financing activities
Issuance of notes		747.7			497.2			496.1
Repayment of notes		(300.0	)		(63.8	)		(71.3	)
Net proceeds from stock plans		98.0			136.0			116.7
Excess tax benefits from settlement of stock-based compensation awards		58.7			38.8			15.7
Cost of treasury shares repurchased		(1,220.5	)		(893.1	)		(196.5	)
Payment of dividends		(236.0	)		(197.3	)		(143.0	)
Payment of dividends to noncontrolling interests		(11.8	)		(12.2	)		(8.3	)
Payment to redeem noncontrolling interest		(183.8	)		—			—
Contingent consideration paid		(10.3	)		(0.3	)		(0.5	)
Debt issuance costs and related fees		(6.5	)		(4.1	)		(6.3	)
Net cash (used in) provided by financing activities		(1,064.5	)		(498.8	)		202.6
Effect of exchange rate changes on cash and cash equivalents		(89.2	)		(2.0	)		19.9
(Decrease) increase in cash and cash equivalents		(700.0	)		164.1			995.4
Cash and cash equivalents, beginning of period		1,919.5			1,755.4			760.0
Cash and cash equivalents, end of period	$	1,219.5		$	1,919.5		$	1,755.4

The accompanying notes are an integral part of the consolidated financial statements

62 MOODY’S  2014 10K

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT)

(amounts in millions)

	Shareholders’ of Moody’s Corporation
	Common Stock										Treasury Stock						Accumulated Other Comprehensive Income (Loss)			Total Moody’s Shareholders’ Equity (Deficit)			Non- Controlling Interests			Total Shareholders’ Equity (Deficit)
	Shares		Amount		Capital Surplus			Retained Earnings			Shares			Amount
Balance at December 31, 2011		342.9	$	3.4	$	394.5		$	4,176.1			(120.5)		$	(4,635.5	)	$	(107.5	)	$	(169.0	)	$	10.6		$	(158.4	)
Net income									690.0												690.0			6.1			696.1
Dividends									(152.8	)											(152.8	)		(4.7	)		(157.5	)
Stock-based compensation						64.6															64.6						64.6
Shares issued for stock-based compensation plans, net						(100.9	)					5.6			217.5						116.6						116.6
Net excess tax benefit upon settlement of stock-based compensation awards						10.3															10.3						10.3
Adjustment to redemption value of redeemable noncontrolling interest						(3.4	)														(3.4	)					(3.4	)
Treasury shares repurchased												(4.8	)		(196.5	)					(196.5	)					(196.5	)
Currency translation adjustment, (net of tax of $0.2 million)																		34.2			34.2			(0.6	)		33.6
Net actuarial losses and prior service cost (net of tax of $11.2 million)																		(14.8	)		(14.8	)					(14.8	)
Amortization and recognition of prior service costs and actuarial gains (losses), (net of tax of $4.1 million)																		5.9			5.9						5.9
Net realized and unrealized gain on cash flow and net investment hedges (net of tax of $0.1 million)																		0.1			0.1						0.1
Balance at December 31, 2012		342.9	$	3.4	$	365.1		$	4,713.3			(119.7	)	$	(4,614.5	)	$	(82.1	)	$	385.2		$	11.4		$	396.6

The accompanying notes are an integral part of the consolidated financial statements.

(continued on next page)

MOODY’S  2014 10K 63

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT) continued

(amounts in millions)

	Shareholders’ of Moody’s Corporation
	Common Stock										Treasury Stock						Accumulated Other Comprehensive Income (Loss)			Total Moody’s Shareholders’ Equity (Deficit)			Non- Controlling Interests			Total Shareholders’ Equity (Deficit)
	Shares		Amount		Capital Surplus			Retained Earnings			Shares			Amount
Balance at December 31, 2012		342.9	$	3.4	$	365.1		$	4,713.3			(119.7)		$	(4,614.5	)	$	(82.1	)	$	385.2		$	11.4		$	396.6
Net income									804.5												804.5			5.7			810.2
Dividends									(215.7	)											(215.7	)		(6.2	)		(221.9	)
Stock-based compensation						67.2															67.2						67.2
Shares issued for stock-based compensation plans, net						(51.9	)					5.0			187.9						136.0						136.0
Net excess tax benefit upon settlement of stock-based compensation awards						33.3															33.3						33.3
Adjustment to redemption value of redeemable noncontrolling interest						(7.9	)														(7.9	)					(7.9	)
Treasury shares repurchased												(14.2	)		(893.1	)					(893.1	)					(893.1	)
Currency translation adjustment, (net of tax of $0.6 million)																		(13.8	)		(13.8	)		—			(13.8	)
Net actuarial losses and prior service cost (net of tax of $21.0 million)																		29.9			29.9						29.9
Amortization and recognition of prior service costs and actuarial gains (losses), (net of tax of $4.9 million)																		7.0			7.0						7.0
Net realized and unrealized gain on cash flow and net investment hedges (net of tax of $3.1 million)																		4.4			4.4						4.4
Balance at December 31, 2013		342.9	$	3.4	$	405.8		$	5,302.1			(128.9	)	$	(5,319.7	)	$	(54.6	)	$	337.0		$	10.9		$	347.9

The accompanying notes are an integral part of the consolidated financial statements.

64 MOODY’S  2014 10K

(continued on next page)

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT) continued

(amounts in millions)

	Shareholders’ of Moody’s Corporation
	Common Stock										Treasury Stock						Accumulated Other Comprehensive Income (Loss)			Total Moody’s Shareholders’ Equity (Deficit)			Non- Controlling Interests			Total Shareholders’ Equity
	Shares		Amount		Capital Surplus			Retained Earnings			Shares			Amount
Balance at December 31, 2013		342.9	$	3.4	$	405.8		$	5,302.1			(128.9)		$	(5,319.7	)	$	(54.6	)	$	337.0		$	10.9		$	347.9
Net income									988.7												988.7			7.9			996.6
Dividends									(246.5	)											(246.5	)		(6.9	)		(253.4	)
Non-controlling interest resulting from majority acquisition of ICRA																					—			218.8			218.8
Stock-based compensation						80.6															80.6						80.6
Shares issued for stock-based compensation plans, net						(58.0	)					4.2			156.0						98.0						98.0
Net excess tax benefits upon settlement of stock-based compensation awards						54.7															54.7						54.7
Adjustment to redemption value of redeemable noncontrolling interest						(99.2	)														(99.2	)					(99.2	)
Treasury shares repurchased												(13.8	)		(1,220.5	)					(1,220.5	)					(1,220.5	)
Currency translation adjustment, (net of tax of $2.2 million)																		(148.7	)		(148.7	)		—			(148.7	)
Net actuarial losses and prior service cost (net of tax of $37.1 million)																		(56.7	)		(56.7	)					(56.7	)
Amortization and recognition of prior service costs and actuarial losses, (net of tax of $2.8 million)																		4.5			4.5						4.5
Net unrealized gain on available for sale securities																		0.9			0.9						0.9
Net realized and unrealized gain on net investment hedges (net of tax of $12.9 million)																		19.4			19.4						19.4
Balance at December 31, 2014		342.9	$	3.4	$	383.9		$	6,044.3			(138.5	)	$	(6,384.2	)	$	(235.2	)	$	(187.8	)	$	230.7		$	42.9

The accompanying notes are an integral part of the consolidated financial statements.

MOODY’S  2014 10K 65

MOODY’S CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(tabular dollar and share amounts in millions, except per share data)

NOTE 1 DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Moody’s is a provider of (i) credit ratings, (ii) credit, capital markets and economic research, data and analytical tools, (iii) software solutions and related risk management services, (iv) quantitative credit risk measures, financial services training and certification services and (v) outsourced research and analytical services to institutional customers. Moody’s has two reportable segments: MIS and MA.

MIS, the credit rating agency, publishes credit ratings on a wide range of debt obligations and the entities that issue such obligations in markets worldwide. Revenue is primarily derived from the originators and issuers of such transactions who use MIS ratings in the distribution of their debt issues to investors. Additionally, MIS earns revenue from certain non-ratings-related operations which consist primarily of the distribution of research and fixed income pricing services in the Asia-Pacific region and outsourced services. The revenue from these operations is included in the MIS Other LOB and is not material to the results of the MIS segment.

The MA segment develops a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets. Within its Research, Data and Analytics business, MA distributes research and data developed by MIS as part of its ratings process, including in-depth research on major debt issuers, industry studies and commentary on topical credit-related events. The RD&A business also produces economic research as well as data and analytical tools such as quantitative credit risk scores. Within its Enterprise Risk Solutions business, MA provides software solutions as well as related risk management services. The Professional Services business provides outsourced research and analytical services along with financial training and certification programs.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Consolidation

The consolidated financial statements include those of Moody’s Corporation and its majority- and wholly-owned subsidiaries. The effects of all intercompany transactions have been eliminated. Investments in companies for which the Company has significant influence over operating and financial policies but not a controlling interest are accounted for on an equity basis whereby the Company records its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net and any dividends received reduce the carrying amount of the investment. The Company applies the guidelines set forth in Topic 810 of the ASC in assessing its interests in variable interest entities to decide whether to consolidate that entity. The Company has reviewed the potential variable interest entities and determined that there are no consolidation requirements under Topic 810 of the ASC. The Company consolidates its ICRA subsidiaries on a three month lag.

Cash and Cash Equivalents

Cash equivalents principally consist of investments in money market mutual funds and money market deposit accounts as well as high-grade commercial paper and certificates of deposit with maturities of three months or less when purchased.

Short-term Investments

Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next twelve months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned.

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives. Expenditures for maintenance and repairs that do not extend the economic useful life of the related assets are charged to expense as incurred.

Research and Development Costs

All research and development costs are expensed as incurred. These costs primarily reflect the development of credit processing software and quantitative credit risk assessment products sold by the MA segment.

66 MOODY’S  2014 10K

Research and development costs were $37.9 million, $22.8 million and $16.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, and are included in operating expenses within the Company’s consolidated statements of operations. These costs generally consist of professional services provided by third parties and compensation costs of employees.

Costs for internally developed computer software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. These costs primarily relate to the development or enhancement of products in the ERS business and generally consist of professional services provided by third parties and compensation costs of employees that develop the software. Judgment is required in determining when technological feasibility of a product is established and the Company believes that technological feasibility for its software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released to customers. Accordingly, costs for internally developed computer software that will be sold, leased or otherwise marketed that were eligible for capitalization under Topic 985 of the ASC as well as the related amortization expense related to such costs were immaterial for the years ended December 31, 2014, 2013 and 2012.

Computer Software Developed or Obtained for Internal Use

The Company capitalizes costs related to software developed or obtained for internal use. These assets, included in property and equipment in the consolidated balance sheets, relate to the Company’s accounting, product delivery and other systems. Such costs generally consist of direct costs for third-party license fees, professional services provided by third parties and employee compensation, in each case incurred either during the application development stage or in connection with upgrades and enhancements that increase functionality. Such costs are depreciated over their estimated useful lives on a straight-line basis. Costs incurred during the preliminary project stage of development as well as maintenance costs are expensed as incurred.

Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets

Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment or one level below an operating segment, annually as of July 31 or more frequently if impairment indicators arise in accordance with ASC Topic 350.

The Company evaluates the recoverability of goodwill using a three-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made that, based on the qualitative factors, an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company must perform a third step of the impairment test to determine the implied fair value of the reporting unit’s goodwill. The implied fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than its carrying value, the difference is recognized as an impairment charge. For the reporting units where the Company is consistently able to conclude that an impairment does not exist using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years. Goodwill is assigned to a reporting unit at the date when an acquisition is integrated into one of the established reporting units, and is based on which reporting unit is expected to benefit from the synergies of the acquisition.

For purposes of assessing the recoverability of goodwill, the Company has six reporting units at December 31, 2014: two within the Company’s ratings business (one for the newly acquired ICRA business and one that encompasses all of Moody’s other ratings operations) and four reporting units within MA: RD&A, ERS, Financial Services Training and Certifications and Copal Amba. The RD&A reporting unit encompasses the distribution of investor-oriented research and data developed by MIS as part of its ratings process, in-depth research on major debt issuers, industry studies, economic research and commentary on topical events and credit analytic tools. The ERS reporting unit consists of credit risk management and compliance software that is sold on a license or subscription basis as well as related advisory services for implementation and maintenance. The FSTC reporting unit consists of the portion of the MA business that offers both credit training as well as other professional development training and certification services. The Copal Amba reporting unit consists of outsourced research and analytical services.

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Rent Expense

The Company records rent expense on a straight-line basis over the life of the lease. In cases where there is a free rent period or future fixed rent escalations the Company will record a deferred rent liability. Additionally, the receipt of any lease incentives will be recorded as a deferred rent liability which will be amortized over the lease term as a reduction of rent expense.

MOODY’S  2014 10K 67

Stock-Based Compensation

The Company records compensation expense for all share-based payment award transactions granted to employees based on the fair value of the equity instrument at the time of grant. This includes shares issued under stock option and restricted stock plans. The Company has also established a pool of additional paid-in capital related to the tax effects of employee share-based compensation, which is available to absorb any recognized tax shortfalls.

Derivative Instruments and Hedging Activities

Based on the Company’s risk management policy, from time to time the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values. The changes in the value of derivatives that qualify as fair value hedges are recorded with a corresponding adjustment to the carrying value of the item being hedged. Changes in the derivative’s fair value that qualify as cash flow hedges are recorded to other comprehensive income or loss, to the extent the hedge is effective, and such amounts are reclassified from accumulated other comprehensive income or loss to earnings in the same period or periods during which the hedged transaction affects income. Changes in the derivative’s fair value that qualify as net investment hedges are recorded to other comprehensive income or loss, to the extent the hedge is effective. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur.

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or the services have been provided and accepted by the customer when applicable, fees are determinable and the collection of resulting receivables is considered probable.

Pursuant to ASC Topic 605, when a sales arrangement contains multiple deliverables, the Company allocates revenue to each deliverable based on its relative selling price which is determined based on its vendor specific objective evidence if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available.

The Company’s products and services will generally qualify as separate units of accounting under ASC Topic 605. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value to the customers and if the arrangement includes a customer refund or return right relative to the delivered item and the delivery and performance of the undelivered item is considered probable and substantially in the Company’s control. In instances where the aforementioned criteria are not met, the deliverable is combined with the undelivered items and revenue recognition is determined as one single unit.

The Company determines whether its selling price in a multi-element transaction meets the VSOE criteria by using the price charged for a deliverable when sold separately. In instances where the Company is not able to establish VSOE for all deliverables in a multiple element arrangement, which may be due to the Company infrequently selling each element separately, not selling products within a reasonably narrow price range, or only having a limited sales history, the Company attempts to establish TPE for deliverables. The Company determines whether TPE exists by evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. However, due to the difficulty in obtaining third party pricing, possible differences in its market strategy from that of its peers and the potential that products and services offered by the Company may contain a significant level of differentiation and/or customization such that the comparable pricing of products with similar functionality cannot be obtained, the Company generally is unable to reliably determine TPE. Based on the selling price hierarchy established by ASC Topic 605, when the Company is unable to establish selling price using VSOE or TPE, the Company will establish an ESP. ESP is the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company establishes its best estimate of ESP considering internal factors relevant to is pricing practices such as costs and margin objectives, standalone sales prices of similar products, percentage of the fee charged for a primary product or service relative to a related product or service, and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trend. The Company reviews its determination of VSOE, TPE and ESP on an annual basis or more frequently as needed.

In the MIS segment, revenue attributed to initial ratings of issued securities is recognized when the rating is issued. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of commercial mortgage-backed securities, structured credit, international residential mortgage-backed and asset-backed securities, issuers can elect to pay the monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities, which was approximately 28 years on a weighted average basis at December 31, 2014. At December 31, 2014, 2013 and 2012, deferred revenue related to these securities was approximately $107 million, $97 million and $82 million.

Multiple element revenue arrangements in the MIS segment are generally comprised of an initial rating and the related monitoring service. In instances where monitoring fees are not charged for the first year monitoring effort, fees are allocated to the initial rating and

68 MOODY’S  2014 10K

monitoring services based on the relative selling price of each service to the total arrangement fees. The Company generally uses ESP in determining the selling price for its initial ratings as the Company rarely sells initial ratings separately without providing related monitoring services and thus is unable to establish VSOE or TPE for initial ratings.

MIS estimates revenue for ratings of commercial paper for which, in addition to a fixed annual monitoring fee, issuers are billed quarterly based on amounts outstanding. Revenue is accrued each quarter based on estimated amounts outstanding and is billed when actual data is available. The estimate is determined based on the issuers’ most recent reported quarterly data. At December 31, 2014, 2013 and 2012, accounts receivable included approximately $22 million, $21 million and $22 million, respectively, related to accrued commercial paper revenue. Historically, MIS has not had material differences between the estimated revenue and the actual billings. Furthermore, for certain annual monitoring services, fees are not invoiced until the end of the annual monitoring period and revenue is accrued ratably over the monitoring period.

In the MA segment, products and services offered by the Company include software licenses and related maintenance, subscriptions, and professional services. Revenue from subscription based products, such as research and data subscriptions and certain software-based credit risk management subscription products, is recognized ratably over the related subscription period, which is principally one year. Revenue from sale of perpetual licenses of credit processing software is generally recognized at the time the product master or first copy is delivered or transferred to and accepted by the customer. If uncertainty exists regarding customer acceptance of the product or service, revenue is not recognized until acceptance occurs. Software maintenance revenue is recognized ratably over the annual maintenance period. Revenue from professional services rendered is generally recognized as the services are performed. A large portion of annual research and data subscriptions and annual software maintenance are invoiced in the months of November, December and January.

Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where a multiple element arrangement includes software and non-software deliverables, revenue is allocated to the non-software deliverables and to the software deliverables, as a group, using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Revenue is recognized for each element based upon the conditions for revenue recognition noted above.

If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is allocated to each software deliverable using VSOE. In the instances where the Company is not able to determine VSOE for all of the deliverables of an arrangement, the Company allocates the revenue to the undelivered elements equal to its VSOE and the residual revenue to the delivered elements. If the Company is unable to determine VSOE for an undelivered element, the Company defers all revenue allocated to the software deliverables until the Company has delivered all of the elements or when VSOE has been determined for the undelivered elements. In cases where software implementation services are considered essential and VSOE of fair value exists for post-contract customer support (“PCS”), once the delivery criteria has been met on the standard software, license and service revenue is recognized on a percentage-of-completion basis as implementation services are performed, while PCS is recognized over the coverage period. If VSOE of fair value does not exist for PCS, once the delivery criteria has been met on the standard software, service revenue is recognized on a zero profit margin basis until essential services are complete, at which point total remaining arrangement revenue is then spread ratably over the remaining PCS coverage period.

Accounts Receivable Allowances

Moody’s records an allowance for estimated future adjustments to customer billings as a reduction of revenue, based on historical experience and current conditions. Such amounts are reflected as additions to the accounts receivable allowance. Additionally, estimates of uncollectible accounts are recorded as bad debt expense and are reflected as additions to the accounts receivable allowance. Actual billing adjustments and uncollectible account write-offs are recorded against the allowance. Moody’s evaluates its accounts receivable allowance by reviewing and assessing historical collection and adjustment experience and the current status of customer accounts. Moody’s also considers the economic environment of the customers, both from an industry and geographic perspective, in evaluating the need for allowances. Based on its analysis, Moody’s adjusts its allowance as considered appropriate in the circumstances.

Contingencies

Moody’s is involved in legal and tax proceedings, governmental investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate.

For claims, litigation and proceedings and governmental investigations and inquires not related to income taxes, where it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated, the Company records liabilities in the consolidated financial statements and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range

MOODY’S  2014 10K 69

of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In other instances, because of uncertainties related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if significant. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. In view of the inherent difficulty of predicting the outcome of litigation, regulatory, governmental investigations and inquiries, enforcement and similar matters , particularly where the claimants seek large or indeterminate damages or where the parties assert novel legal theories or the matters involve a large number of parties, the Company cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also cannot predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition. However, in light of the large or indeterminate damages sought in some of them, the absence of similar court rulings on the theories of law asserted and uncertainties regarding apportionment of any potential damages, an estimate of the range of possible losses cannot be made at this time.

The Company’s wholly-owned insurance subsidiary insures the Company against certain risks including but not limited to deductibles for worker’s compensation, employment practices litigation and employee medical claims and terrorism, for which the claims are not material to the Company. In addition, for claim years 2008 and 2009, the insurance subsidiary insured the Company for defense costs related to professional liability claims. For matters insured by the Company’s insurance subsidiary, Moody’s records liabilities based on the estimated total claims expected to be paid and total projected costs to defend a claim through its anticipated conclusion. The Company determines liabilities based on an assessment of management’s best estimate of claims to be paid and legal defense costs as well as actuarially determined estimates. The Cheyne SIV and Rhinebridge SIV matters more fully discussed in Note 18 are both cases from the 2008/2009 claims period, and accordingly defense costs for these matters are covered by the Company’s insurance subsidiary. Defense costs for matters not self-insured by the Company’s wholly-owned insurance subsidiary are expensed as services are provided.

For income tax matters, the Company employs the prescribed methodology of Topic 740 of the ASC which requires a company to first determine whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

Operating Expenses

Operating expenses include costs associated with the development and production of the Company’s products and services and their delivery to customers. These expenses principally include employee compensation and benefits and travel costs that are incurred in connection with these activities. Operating expenses are charged to income as incurred, except for certain costs related to software implementation services which are deferred until related revenue is recognized. Additionally, certain costs incurred to develop internal use software are capitalized and depreciated over their estimated useful life.

Selling, General and Administrative Expenses

SG&A expenses include such items as compensation and benefits for corporate officers and staff and compensation and other expenses related to sales of products. They also include items such as office rent, business insurance, professional fees and gains and losses from sales and disposals of assets. SG&A expenses are charged to income as incurred, except for certain expenses incurred to develop internal use software are capitalized and depreciated over their estimated useful life.

Redeemable Noncontrolling Interest

The Company records its redeemable noncontrolling interest at fair value on the date of the related business combination transaction. The redeemable noncontrolling interest represents noncontrolling shareholders’ interest in entities which are controlled but not wholly-owned by Moody’s and for which Moody’s obligation to redeem the minority shareholders’ interest is governed by a put/call relationship. Subsequent to the initial measurement, the redeemable noncontrolling interest is recorded at the greater of its redemption value or its carrying value at the end of each reporting period. If the redeemable noncontrolling interest is carried at its redemption value, the difference between the redemption value and the carrying value would be adjusted through capital surplus at the end of each reporting period. The Company also performs a quarterly assessment to determine if the aforementioned redemption value exceeds the fair value of the redeemable noncontrolling interest. If the redemption value of the redeemable noncontrolling interest were to exceed its fair value, the excess would reduce the net income attributable to Moody’s shareholders. The Company settled its redeemable noncontrolling interest in the fourth quarter of 2014 by exercising its call option to acquire the remaining share of Copal Amba that it did not previously own.

Foreign Currency Translation

For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated into U.S. dollars using end of year exchange rates, and revenue and expenses are translated using average

70 MOODY’S  2014 10K

exchange rates for the year. For these foreign operations, currency translation adjustments are accumulated in a separate component of shareholders’ equity.

Comprehensive Income

Comprehensive income represents the change in net assets of a business enterprise during a period due to transactions and other events and circumstances from non-owner sources including foreign currency translation impacts, net actuarial losses and net prior service costs related to pension and other retirement plans, gains and losses on derivative instruments and unrealized gains and losses on securities designated as ‘available-for-sale’ under Topic 320 of the ASC.

Income Taxes

The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes and deferred income taxes reflect the effect of temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes.

The Company classifies interest related to unrecognized tax benefits as a component of interest expense in its consolidated statements of operations. Penalties are recognized in other non-operating expenses. For UTPs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

For certain of its non-U.S. subsidiaries, the Company has deemed the undistributed earnings relating to these subsidiaries to be indefinitely reinvested within its foreign operations. Accordingly, the Company has not provided deferred income taxes on these indefinitely reinvested earnings. It is not practicable to determine the amount of deferred taxes that might be required to be provided if such earnings were distributed in the future due to complexities in the tax laws and in the hypothetical calculations that would have to be made.

Fair Value of Financial Instruments

The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, all of which are short-term in nature and, accordingly, approximate fair value. Additionally, the Company invests in certain short-term investments consisting primarily of certificates of deposit that are carried at cost, which approximates fair value due to their short-term maturities.

The Company also has certain investments in closed-ended and open-ended mutual funds in India which are designated as “available for sale” under Topic 320 of the ASC. Accordingly, unrealized gains and losses on these investments are recorded to other comprehensive income and are reclassified out of accumulated other comprehensive income to the statement of operations when the investment matures or is sold using a specific identification method.

Also, the Company uses derivative instruments, as further described in Note 5, to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value on the Company’s consolidated balance sheets.

The Company also is subject to contingent consideration obligations related to certain of its acquisitions as more fully discussed in Note 9. These obligations are carried at their estimated fair value within the Company’s consolidated balance sheets.

Fair value is defined by the ASC as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset.

The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows:

Level 1: quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement;

Level 2: inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;

Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities.

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Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk principally consist of cash and cash equivalents, short-term investments, trade receivables and derivatives.

The Company manages its credit risk exposure by allocating its cash equivalents among various money market mutual funds, money market deposit accounts, certificates of deposits and high- grade commercial paper. Short-term investments primarily consist of certificates of deposit as of December 31, 2014 and 2013. The Company manages its credit risk exposure on cash equivalents and short-term investments by limiting the amount it can invest with any single entity. No customer accounted for 10% or more of accounts receivable at December 31, 2014 or 2013.

Earnings per Share of Common Stock

Basic shares outstanding is calculated based on the weighted average number of shares of common stock outstanding during the reporting period. Diluted shares outstanding is calculated giving effect to all potentially dilutive common shares, assuming that such shares were outstanding during the reporting period.

Pension and Other Retirement Benefits

Moody’s maintains various noncontributory DBPPs as well as other contributory and noncontributory retirement plans. The expense and assets/liabilities that the Company reports for its pension and other retirement benefits are dependent on many assumptions concerning the outcome of future events and circumstances. These assumptions represent the Company’s best estimates and may vary by plan. The differences between the assumptions for the expected long-term rate of return on plan assets and actual experience is spread over a five-year period to the market related value of plan assets which is used in determining the expected return on assets component of annual pension expense. All other actuarial gains and losses are generally deferred and amortized over the estimated average future working life of active plan participants.

The Company recognizes as an asset or liability in its consolidated balance sheet the funded status of its defined benefit retirement plans, measured on a plan-by-plan basis. Changes in the funded status due to actuarial gains/losses are recorded as part of other comprehensive income during the period the changes occur.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Estimates are used for, but not limited to, revenue recognition, accounts receivable allowances, income taxes, contingencies, valuation of long-lived and intangible assets, goodwill, pension and other retirement benefits, stock-based compensation, and depreciable lives for property and equipment and computer software.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”. This ASU outlines a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual and interim reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company is currently evaluating its adoption options and the impact that adoption of this update will have on its consolidated financial statements. Currently, the Company believes this ASU will have an impact on: i) the capitalization of certain contract implementation costs for its ERS business; ii) the accounting for certain ratings monitoring fees received in advance of the service being rendered; iii) the accounting for certain license and maintenance revenue in MA; iv) the accounting for certain ERS revenue arrangements where VSOE is not available and v) the accounting for contract acquisition costs.

In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This ASU clarifies the current accounting guidance for entities that issue share-based payment awards that require a specific performance target be achieved for employees to become eligible to vest in the awards, which may occur subsequent to a required service period. The current accounting guidance does not explicitly address how to account for these types of awards. The ASU provides explicit guidance and clarifies that these types of performance targets should be treated as performance conditions, and accordingly should not be reflected in the determination of the grant-date fair value of the award. This ASU is effective for all annual periods and interim reporting periods beginning after December 15, 2015, with early adoption permitted. The Company currently accounts for transactions involving stock-based compensation awards with performance conditions in accordance with the provisions set forth in this ASU. Accordingly, the adoption of this update will not have an impact on the Company’s consolidated financial statements.

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NOTE 3 RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING

Below is a reconciliation of basic to diluted shares outstanding:

	Year Ended December 31,
	2014		2013		2012
Basic		210.7		219.4		223.2
Dilutive effect of shares issuable under stock-based compensation plans		4.0		4.1		3.4
Diluted		214.7		223.5		226.6
Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above		0.7		4.0		7.5

The calculation of diluted EPS requires certain assumptions regarding the use of both cash proceeds and assumed proceeds that would be received upon the exercise of stock options and vesting of restricted stock outstanding as of December 31, 2014, 2013 and 2012. These assumed proceeds include Excess Tax Benefits and any unrecognized compensation on the awards.

NOTE 4 CASH EQUIVALENTS AND INVESTMENTS

The table below provides additional information on the Company’s cash equivalents and investments:

	As of December 31, 2014
	Cost		Gross Unrealized Gains		Fair Value		Balance sheet location
							Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	149.7	$	—	$	149.7	$	149.7	$	—	$	—
Certificates of deposit and money market deposit accounts (1)	$	842.5	$	—	$	842.5	$	380.1	$	458.1	$	4.3
Fixed maturity and open ended mutual funds (2)	$	47.1	$	0.9	$	48.0	$	—	$	—	$	48.0
	As of December 31, 2013
	Cost		Gross Unrealized Gains		Fair Value		Balance sheet location
							Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	212.3	$	—	$	212.3	$	212.3	$	—	$	—
Certificates of deposit and money market deposit accounts (1)	$	911.8	$	—	$	911.8	$	725.0	$	186.8	$	—

(1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one month to ten months at December 31, 2014 and one month to nine months at December 31, 2013. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.

(2) Consists of investments in fixed maturity mutual funds and open-ended mutual funds held by ICRA. The remaining contractual maturities for the fixed maturity instruments range from two months to 23 months at December 31, 2014.

The money market mutual funds as well as the fixed maturity and open ended mutual funds in the table above are deemed to be “available for sale” under ASC Topic 320 and the fair value of these instruments is determined using Level 1 inputs which are more fully described in Note 2.

The total proceeds received in the year ended December 31, 2014 for maturities of fixed maturity mutual funds was $10.7 million. The gross realized gains on these maturities were immaterial.

NOTE 5 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes.

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Interest Rate Swaps

In the fourth quarter of 2010, the Company entered into interest rate swaps with a total notional amount of $300 million to convert the fixed interest rate on the Series 2005-1 Notes to a floating interest rate based on the 3-month LIBOR. The purpose of this hedge was to mitigate the risk associated with changes in the fair value of the Series 2005-1 Notes, thus the Company designated these swaps as fair value hedges. The fair value of the swaps was adjusted quarterly with a corresponding adjustment to the carrying value of the Series 2005-1 Notes. The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps were recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations. In August of 2014, the Company terminated the swaps on the Series 2005-1 Notes concurrent with the early retirement of those notes as further described in Note 15. The termination of these swaps resulted in a gain of approximately $4 million in 2014 which is recorded in interest income (expense), net in the Company’s consolidated statement of operations.

In the second quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on the 2010 Senior Notes to a floating interest rate based on the 3-month LIBOR. In the third quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on the remaining balance of the 2010 Senior Notes to a floating interest rate based on the 3-month LIBOR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the 2010 Senior Notes, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the 2010 Senior Notes. The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations.

In the third quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on a portion of the 2014 Senior Notes (5-year) to a floating interest rate based on the 3-month LIBOR. The purpose of this hedge was to mitigate the risk associated with changes in the fair value of a portion of the 2014 Senior Notes (5-year), thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the 2014 Senior Notes (5-year). The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations.

Foreign Exchange Forwards

The Company also enters into foreign exchange forwards to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than the subsidiary’s functional currency. These forward contracts are not designated as hedging instruments under the applicable sections of Topic 815 of the ASC. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating income (expense), net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through March 2015.

The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards:

	December 31, 2014		December 31, 2013
Notional amount of Currency Pair:
Contracts to purchase USD with euros	$	38.5	$	14.2
Contracts to sell USD for euros	$	51.1	$	53.2
Contracts to purchase USD with GBP	$	0.2	$	—
Contracts to purchase USD with other foreign currencies	$	1.2	$	—
Contracts to purchase euros with other foreign currencies	€	34.0	€	13.1
Contracts to purchase euros with GBP	€	25.0	€	22.1
Contracts to sell euros for GBP	€	38.2	€	—

Net Investment Hedges

The Company enters into foreign currency forward contracts to hedge the exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against adverse changes in foreign exchange rates. These forward contracts are designated as hedging instruments under the applicable sections of Topic 815 of the ASC. Hedge effectiveness is assessed based on the overall changes in the fair value of the forward contracts on a pre-tax basis. For hedges that meet the effectiveness requirements, any change in fair value for the hedge is recorded in OCI. Any change in the fair value of these hedges that is the result of ineffectiveness would be recognized immediately in other non-operating (expense) income in the Company’s consolidated statements of operations. These outstanding contracts expire in March 2015 for contracts to sell euros for USD and in November 2015 for contracts to sell Japanese yen for USD.

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The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forward contracts that are designated as net investment hedges:

	December 31,		December 31,
	2014		2013
Notional amount of Currency Pair:
Contracts to sell euros for USD	€	50.0	€	50.0
Contracts to sell Japanese yen for USD	¥	19,400	¥	19,700

The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instruments:

	Fair Value of Derivative Instruments
	Balance Sheet Location	December 31, 2014		December 31, 2013
Assets:
Derivatives designated as accounting hedges:
Interest rate swaps	Other assets	$	17.4	$	10.3
FX forwards on net investment in certain foreign subsidiaries	Other current assets		18.8		9.3
Total derivatives designated as accounting hedges			36.2		19.6
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Other current assets		5.6		0.9
Total		$	41.8	$	20.5
Liabilities:
Derivatives designated as accounting hedges:
FX forwards on net investment in certain foreign subsidiaries	Accounts payable and accrued liabilities	$	—	$	1.0
Total derivatives designated as accounting hedges			—		1.0
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Accounts payable and accrued liabilities		2.1		0.7
Total		$	2.1	$	1.7

The following table summarizes the net gain (loss) on the Company’s foreign exchange forwards which are not designated as hedging instruments as well as the gain (loss) on the interest rate swaps designated as fair value hedges:

		Amount of Gain (Loss) Recognized in consolidated statement of operations
		Year Ended December 31,
		2014			2013		2012
Derivatives designated as accounting hedges	Location on Consolidated Statements of Operations
Interest rate swaps	Interest income (expense), net	$	11.7		$	4.2	$	3.6
Derivatives not designated as accounting hedges
Foreign exchange forwards	Other non-operating (expense) income	$	(2.0	)	$	2.1	$	0.9

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The following table provides information on annual gains (losses) on the Company’s net investment hedges:

Derivatives in Net Investment Hedging Relationships	Amount of Gain/(Loss), net of tax, Recognized in AOCI on Derivative (Effective Portion)
	Year Ended December 31,
	2014		2013		2012
FX forwards	$	19.4	$	3.7	$	(2.2	)
Total	$	19.4	$	3.7	$	(2.2	)

All gains and losses on derivatives designated as net investment hedges are recognized through OCI.

There were no gains or losses reclassified from AOCI to the statement of operations or any hedge ineffectiveness in the years ended December 31, 2014, 2013 and 2012.

The cumulative amount of hedge gain (losses) recorded in AOCI relating to derivative instruments is as follows:

	Gains (Losses), net of tax
	December 31, 2014		December 31, 2013
FX forwards on net investment hedges	$	20.9	$	1.5

NOTE 6 PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of:

	December 31,
	2014			2013
Office and computer equipment (3 – 10 year estimated useful life)	$	152.5		$	129.7
Office furniture and fixtures (3 – 10 year estimated useful life)		43.8			40.6
Internal-use computer software (3 – 10 year estimated useful life)		336.8			284.9
Leasehold improvements and building (3 – 20 year estimated useful life)		220.7			199.2
Total property and equipment, at cost		753.8			654.4
Less: accumulated depreciation and amortization		(451.5	)		(375.7	)
Total property and equipment, net	$	302.3		$	278.7

Depreciation and amortization expense related to the above assets was $67.2 million, $65.4 million, and $63.4 million for the years ended December 31, 2014, 2013 and 2012, respectively.

NOTE 7 ACQUISITIONS

All of the acquisitions described below were accounted for using the acquisition method of accounting whereby assets acquired and liabilities assumed were recognized at their acquisition date fair value. Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded to goodwill. For all of the acquisitions described below, the Company has not presented proforma combined results for the acquisitions because the impact on previously reported statements of operations would not have been material. Furthermore, for all acquisitions described below, the amount of revenue and expenses in the year of acquisition from the acquisition date through the end of the year was not material. These acquisitions are discussed below in more detail.

Lewtan Technologies

On October 27, 2014, a subsidiary of the Company acquired 100% of Lewtan Technologies, a leading provider of analytical tools and data for the global structured finance market. The acquisition of Lewtan will bolster MA’s Structured Analytics and Valuations (SAV) business within its RD&A LOB, which provides an extensive data and analytics library for securitized assets. The aggregate purchase price was not material and the near term impact to the Company’s operations and cash flows is not expected to be material. Lewtan will operate in the RD&A LOB of MA and goodwill related to this acquisition was allocated to the RD&A reporting unit.

76 MOODY’S  2014 10K

WebEquity Solutions, LLC

On July 17, 2014, a subsidiary of the Company acquired 100% of WebEquity Solutions, LLC, a leading provider of cloud-based loan origination solutions for financial institutions. The cash payment to the sellers of $130.5 million was funded using Moody’s U.S. cash. This acquisition will enhance MA’s risk management product portfolio.

The Company incurred approximately $2 million of costs directly related to this acquisition in 2014, which are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of the acquisition:

Current assets			$	3.0
Property and equipment, net				2.3
Intangible assets:
Client relationships (18 year weighted average life)	$	42.8
Software (15 year weighted average life)		11.5
Trade name (4 year weighted average life)		0.5
Total intangible assets (17 year weighted average life)				54.8
Goodwill				77.6
Liabilities assumed				(7.2	)
Net assets acquired			$	130.5

Current assets include acquired cash of $0.6 million. Additionally, current assets includes gross accounts receivable of $0.7 million, of which an immaterial amount is not expected to be collectible. The acquired goodwill, which has been assigned to the MA segment, will be deductible for tax.

As of the date of the acquisition, WebEquity is part of the ERS reporting unit.

ICRA Limited

On June 26, 2014, a subsidiary of the Company acquired 2,154,722 additional shares of ICRA Limited, a publicly traded company in India, pursuant to a conditional open tender offer which was initiated in February 2014. ICRA is a leading provider of credit ratings and research in India and will extend MIS’s reach in the growing domestic debt market in India as well as other emerging markets in the region. The acquisition of the additional shares increased Moody’s ownership stake in ICRA from 28.5% to 50.06%, resulting in a controlling interest in ICRA. Accordingly, the Company consolidates ICRA’s financial statements on a three month lag which resulted in only one quarter of ICRA’s operating results included in the Company’s statement of operations in 2014.

Prior to the acquisition of the additional shares, Moody’s accounted for its investment in ICRA on an equity basis whereby the Company recorded its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net. The acquisition of the additional shares has resulted in the Company consolidating ICRA into its financial statements. As a result of this consolidation and in accordance with ASC 805, the carrying value of the Company’s equity investment in ICRA was remeasured to fair value as of the acquisition date resulting in a pre-tax gain of $102.8 million ($78.5 million after-tax) in 2014. The fair value of the Company’s equity investment was based on ICRA’s quoted market price on the date of acquisition.

The Company incurred approximately $2 million of costs directly related to the acquisition of ICRA during 2014 which are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

The table below details the total consideration relating to the ICRA step-acquisition:

Cash paid	$	86.0
Fair value of equity interest in ICRA prior to obtaining a controlling interest		124.9
Total consideration	$	210.9

The cash paid in the table above was funded by using Moody’s non-U.S. cash on hand.

MOODY’S  2014 10K 77

Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition:

Current assets			$	25.4
Property and equipment, net				15.1
Intangible assets:
Trade name (36 year weighted average life)	$	46.8
Client relationships (19 year weighted average life)		33.8
Other (17 year weighted average life) *		18.3
Total intangible assets (26 year weighted average life)				98.9
Goodwill				296.7
Other assets				56.3
Liabilities				(62.7	)
Fair value of non-controlling interest assumed				(218.8	)
Net assets acquired			$	210.9

* Primarily consists of acquired technical know-how and ratings methodologies

Current assets include acquired cash of approximately $5 million. Additionally, current assets includes gross accounts receivable of approximately $14 million, of which an immaterial amount is not expected to be collectible. Goodwill, which has been assigned to the MIS segment, is not deductible for tax.

The fair value of the non-controlling interest was determined based on the quoted market price per share of ICRA on the date that the Company acquired the controlling stake.

ICRA will operate as its own reporting unit for purposes of the Company’s annual goodwill impairment assessment.

Amba Investment Services

On December 10, 2013, Copal Partners Limited, a majority-owned subsidiary of the Company, acquired 100% of Amba Investment Services, a provider of investment research and quantitative analytics for global financial institutions. Amba currently operates within the PS LOB of MA and will bolster the research and analytical capabilities offered by MA through Copal, a majority of which was acquired in December 2011. The table below details the total consideration transferred to the sellers of Amba:

Cash paid	$	67.3
Contingent consideration liability assumed		4.3
Total fair value of consideration transferred	$	71.6

The cash payment to the sellers was funded by using Moody’s non-U.S. cash on hand.

The purchase agreement contained a provision for a contingent cash payment to the sellers valued at $4.3 million at the acquisition date which was dependent on Amba achieving certain revenue targets for the period from the acquisition date through March 31, 2014. The target was met and a $4.3 million payment was made to the sellers in the third quarter of 2014.

The Company incurred approximately $1 million of costs directly related to the acquisition of Amba during the year ended December 31, 2013. These costs, which primarily consist of consulting and legal fees, are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

78 MOODY’S  2014 10K

Shown below is the purchase price allocation, which summarizes the fair value of the assets acquired and the liabilities assumed, at the date of acquisition:

Current assets			$	23.7
Property and equipment, net				0.4
Intangible assets:
Trade name (7 year weighted average life)	$	3.3
Client relationships (12 year weighted average life)		26.7
Other (3 year weighted average life)		1.6
Total intangible assets (11 year weighted average life)				31.6
Goodwill				29.2
Indemnification asset				10.4
Other assets				2.0
Liabilities assumed				(25.7	)
Net assets acquired			$	71.6

Current assets include acquired cash of approximately $16 million. Additionally, current assets includes gross accounts receivable of approximately $6 million, of which an immaterial amount is not expected to be collectible. The acquired goodwill, which has been assigned to the MA segment, will not be deductible for tax.

In connection with the acquisition, the Company assumed liabilities relating to certain UTPs. These UTPs are included in the liabilities assumed in the table above. The sellers have contractually indemnified the Company against any potential payments that may have to be made regarding these UTPs. Accordingly, the Company carries an indemnification asset on its consolidated balance sheet at December 31, 2014.

As of the date of the acquisition, Amba was integrated with Copal to form the Copal Amba reporting unit.

NOTE 8 GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

The following table summarizes the activity in goodwill:

	Year Ended December 31, 2014
	MIS								MA									Consolidated
	Gross goodwill			Accumulated Impairment charge		Net goodwill			Gross goodwill			Accumulated Impairment charge			Net goodwill			Gross goodwill			Accumulated Impairment charge			Net goodwill
Balance at beginning of year	$	11.4		$	—	$	11.4		$	666.0		$	(12.2	)	$	653.8		$	677.4		$	(12.2	)	$	665.2
Additions/adjustments		296.7			—		296.7			101.1			—			101.1			397.8			—			397.8
Foreign currency translation adjustments		(9.4	)		—		(9.4	)		(32.5	)		—			(32.5	)		(41.9	)		—			(41.9	)
																			—			—
Ending balance	$	298.7		$	—	$	298.7		$	734.6		$	(12.2	)	$	722.4		$	1,033.3		$	(12.2	)	$	1,021.1

MOODY’S  2014 10K 79

	Year Ended December 31, 2013
	MIS								MA									Consolidated
	Gross goodwill			Accumulated Impairment charge		Net goodwill			Gross goodwill			Accumulated Impairment charge			Net goodwill			Gross goodwill			Accumulated Impairment charge			Net goodwill
Balance at beginning of year	$	11.5		$	—	$	11.5		$	637.8		$	(12.2	)	$	625.6		$	649.3		$	(12.2	)	$	637.1
Additions/adjustments		—			—		—			34.5			—			34.5			34.5			—			34.5
Foreign currency translation adjustments		(0.1	)		—		(0.1	)		(6.3	)		—			(6.3	)		(6.4	)		—			(6.4	)
Ending balance	$	11.4		$	—	$	11.4		$	666.0		$	(12.2	)	$	653.8		$	677.4		$	(12.2	)	$	665.2

The 2014 additions/adjustments for the MIS segment in the table above relate to the ICRA acquisition in the second quarter of 2014. The 2014 additions/adjustments for the MA segment relate to the acquisition WebEquity in the third quarter of 2014 and Lewtan in the fourth quarter of 2014 as well as adjustments for Amba which was acquired in the fourth quarter of 2013. The 2013 additions/adjustments for the MA segment relate to the acquisition of Amba.

The accumulated impairment charge in the table above reflects an impairment charge recognized in 2012 relating to the FSTC reporting unit within MA. This impairment charge reflected a contraction in spending for training and certification services for many individuals and global financial institutions in 2012 due to macroeconomic uncertainties at the time. The fair value of the FSTC reporting unit utilized in this impairment assessment was estimated using a discounted cash flow methodology and comparable public company and precedent transaction multiples.

Acquired intangible assets consisted of:

	December 31,
	2014			2013
Customer relationships	$	310.4		$	237.4
Accumulated amortization		(98.1	)		(86.6	)
Net customer relationships		212.3			150.8
Trade secrets		30.6			31.1
Accumulated amortization		(20.9	)		(18.5	)
Net trade secrets		9.7			12.6
Software		79.8			71.0
Accumulated amortization		(43.0	)		(38.8	)
Net software		36.8			32.2
Trade names		76.5			31.3
Accumulated amortization		(13.3	)		(11.7	)
Net trade names		63.2			19.6
Other		44.8			26.1
Accumulated amortization		(21.3	)		(19.7	)
Net other		23.5			6.4
Total	$	345.5		$	221.6

80 MOODY’S  2014 10K

Other intangible assets primarily consist of databases, covenants not to compete and acquired ratings methodologies and models. Amortization expense relating to intangible assets is as follows:

	Year Ended December 31,
	2014		2013		2012
Amortization expense	$	28.4	$	28.0	$	30.1

Estimated future annual amortization expense for intangible assets subject to amortization is as follows:

Year Ended December 31,
2015	$	33.5
2016		31.7
2017		28.1
2018		22.4
2019		19.5
Thereafter		210.3

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In conjunction with the assessment of goodwill impairment at July 31, 2012, the Company reviewed the recoverability of certain customer lists within its FSTC reporting unit. This review resulted in an impairment of approximately $1 million in the third quarter of 2012 which is recorded in depreciation and amortization expense in the consolidated statement of operations. The fair value of these customer lists was determined using a discounted cash flow analysis. The Company again reviewed the recoverability of these customer lists in the fourth quarter of 2012 in conjunction with the quantitative goodwill impairment test performed at December 31, 2012 for the FSTC reporting unit. Based on this assessment, there was no further impairment of the customer lists in the fourth quarter of 2012. For all intangible assets, there were no such events or changes during 2014 or 2013 that would indicate that the carrying amount of amortizable intangible assets in any of the Company’s reporting units may not be recoverable. Additionally, there were no events or circumstances during 2014 or 2013 that would indicate the need for an adjustment of the remaining useful lives of these amortizable intangible assets.

NOTE 9 FAIR VALUE

The table below presents information about items, which are carried at fair value on a recurring basis at December 31, 2014 and 2013:

		Fair Value Measurement as of December 31, 2014
	Description	Balance		Level 1		Level 2		Level 3
Assets:
	Derivatives (a)	$	41.8	$	—	$	41.8	$	—
	Money market mutual funds		149.7		149.7		—		—
	Fixed maturity and open ended mutual funds (b)		48.0		48.0		—		—
	Total	$	239.5	$	197.7	$	41.8	$	—
Liabilities:
	Derivatives (a)	$	2.1	$	—	$	2.1	$	—
	Contingent consideration arising from acquisitions (c)		2.1		—		—		2.1
	Total	$	4.2	$	—	$	2.1	$	2.1

MOODY’S  2014 10K 81

		Fair Value Measurement as of December 31, 2013
	Description	Balance		Level 1		Level 2		Level 3
Assets:
	Derivatives (a)	$	20.5	$	—	$	20.5	$	—
	Money market mutual funds		212.3		212.3		—		—
	Total	$	232.8	$	212.3	$	20.5	$	—
Liabilities:
	Derivatives (a)	$	1.7	$	—	$	1.7	$	—
	Contingent consideration arising from acquisitions (c)		17.5		—		—		17.5
	Total	$	19.2	$	—	$	1.7	$	17.5

(a) Represents interest rate swaps and FX forwards on certain assets and liabilities as well as on certain non-U.S. dollar net investments in certain foreign subsidiaries more fully discussed in Note 5 to the financial statements

(b) Represents investments in fixed maturity mutual funds and open ended mutual funds held by ICRA. The remaining contractual maturities for the fixed maturity instruments range from two months to 23 months

(c) Represents contingent consideration liabilities pursuant to the agreements for certain acquisitions

The following table summarizes the changes in the fair value of the Company’s Level 3 liabilities:

	Changes in Contingent Consideration for Years Ended December 31,
	2014			2013			2012
Balance as of January 1	$	17.5		$	9.0		$	9.1
Contingent consideration assumed in acquisition of Amba		—			4.3			—
Contingent consideration payments		(16.5	)		(2.5	)		(0.5	)
Losses included in earnings		1.3			6.9			0.1
Foreign currency translation adjustments		(0.2	)		(0.2	)		0.3
Balance as of December 31	$	2.1		$	17.5		$	9.0

The losses included in earnings in the table above are recorded within SG&A expenses in the Company’s consolidated statements of operations and relate to contingent consideration obligations related to the Copal Amba acquisition which were settled in 2014.

The $2.1 million of contingent consideration obligations as of December 31, 2014 is classified in other liabilities within the Company’s consolidated balance sheet.

The following are descriptions of the methodologies utilized by the Company for determining the fair value of its derivative contracts, fixed maturity and open-ended mutual funds, money market mutual funds and contingent consideration obligations:

Derivatives:

In determining the fair value of the derivative contracts in the table above, the Company utilizes industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using spot rates, forward points, currency volatilities, interest rates as well as the risk of non-performance of the Company and the counterparties with whom it has derivative contracts. The Company has strict counterparty credit guidelines and only enters into transactions with financial institutions that adhere to these guidelines. Accordingly, the risk of counterparty default is deemed to be minimal.

Fixed maturity and open ended mutual funds:

The fixed maturity mutual funds and open ended mutual funds primarily represent exchange traded funds in India held by ICRA and are classified as securities available-for-sale. Accordingly, any unrealized gains and losses are recognized through OCI until the instruments mature or are sold.

Money market mutual funds:

The money market mutual funds represent publicly traded funds with a stable $1 net asset value.

82 MOODY’S  2014 10K

Contingent Consideration:

At December 31, 2014, the Company has a contingent consideration obligation related to the acquisition of CSI which is carried at estimated fair value, and is based on certain financial and non-financial metrics set forth in the acquisition agreements. This obligation is measured using Level 3 inputs as defined in the ASC. The Company has recorded the obligation for this contingent consideration arrangement on the date of acquisition based on management’s best estimates of the achievement of the metrics and the value of the obligation is adjusted quarterly.

The contingent consideration obligation for CSI is based on the achievement of a certain contractual milestone by January 2016. The Company utilizes a discounted cash flow methodology to value this obligation. The future expected cash flow for this obligation is discounted using an interest rate available to borrowers with similar credit risk profiles to that of the Company. The most significant unobservable input involved in the measurement of this obligation is the probability that the milestone will be reached by January 2016. At December 31, 2014, the Company expects that this milestone will be reached by the aforementioned date.

For certain of the contingent consideration obligations relating to the acquisition of Copal, a portion of the contingent cash payments were based on revenue and EBITDA growth for certain of the Copal entities. This growth was calculated by comparing revenue and EBITDA in the year immediately prior to the exercise of the put/call option to acquire the remaining 33% ownership interest of Copal Partners Limited, to revenue and EBITDA in Copal’s fiscal year ended March 31, 2011. Payments of $12.2 million under this arrangement were made in the fourth quarter of 2014 pursuant to the Company exercising its call option to acquire the remaining shares of Copal Amba. The Company had utilized discounted cash flow methodologies to value these obligations prior to their settlement in 2014. The expected future cash flows for these obligations were discounted using a risk-free interest rate plus a credit spread based on the option adjusted spread of the Company’s publicly traded debt as of the valuation date plus sovereign and size risk premiums. The most significant unobservable input involved in the measurement of these obligations were the projected future financial results of the applicable Copal Amba entities. Other contingent cash payments were based on the achievement of revenue targets for Copal’s fiscal year ended March 31, 2013 and a $2.5 million payment was made in 2013.

For the contingent consideration obligations relating to the acquisition of Amba, the payment was based on the acquired entity achieving a revenue target for its fiscal year ended March 31, 2014 which was met resulting in a $4.3 million payment in 2014.

NOTE 10 DETAIL OF CERTAIN BALANCE SHEET INFORMATION

The following tables contain additional detail related to certain balance sheet captions:

	December 31,
	2014		2013
Other current assets:
Prepaid taxes	$	65.4	$	40.0
Prepaid expenses		59.9		48.1
Other		47.2		26.3
Total other current assets	$	172.5	$	114.4

	December 31,
	2014		2013
Other assets:
Investments in joint ventures	$	21.6	$	37.5
Deposits for real-estate leases		11.3		10.3
Indemnification assets related to acquisitions		23.5		27.0
Fixed maturity and open-ended mutual funds		48.0		—
Other		41.5		37.3
Total other assets	$	145.9	$	112.1

MOODY’S  2014 10K 83

	December 31,
	2014		2013
Accounts payable and accrued liabilities:
Salaries and benefits	$	86.5	$	77.1
Incentive compensation		155.2		135.9
Profit sharing contribution		9.3		—
Customer credits, advanced payments and advanced billings		17.0		21.7
Self-insurance reserves		21.5		27.6
Dividends		75.0		65.5
Professional service fees		47.0		32.9
Interest accrued on debt		45.0		36.3
Accounts payable		19.4		16.4
Income taxes (see Note 14)		16.1		47.5
Pension and other retirement employee benefits (see Note 12)		5.1		7.0
Other		60.5		71.0
Total accounts payable and accrued liabilities	$	557.6	$	538.9

	December 31,
	2014		2013
Other liabilities:
Pension and other retirement employee benefits (see Note 12)	$	244.8	$	164.0
Deferred rent-non-current portion		104.2		106.3
Interest accrued on UTPs		20.8		18.0
Legacy and other tax matters		8.6		15.4
Other		52.5		56.5
Total other liabilities	$	430.9	$	360.2

Changes in the Company’s self-insurance reserves for claims insured by the Company’s wholly-owned insurance subsidiary, which primarily relate to legal defense costs for claims from prior years, are as follows:

	Year Ended December 31,
	2014			2013			2012
Balance January 1,	$	27.6		$	55.8		$	27.1
Accruals (reversals), net		5.8			(0.9	)		38.1
Payments		(11.9	)		(27.3	)		(9.4	)
Balance December 31,	$	21.5		$	27.6		$	55.8

Redeemable Noncontrolling Interest:

In connection with the acquisition of Copal, the Company and the non-controlling shareholders entered into a put/call option agreement whereby the Company had the option to purchase from the non-controlling shareholders and the non-controlling shareholders had the option to sell to the Company the remaining 33% ownership interest of Copal Partners Limited based on a strike price to be calculated on pre-determined formulas using a combination of revenue and EBITDA multiples when exercised. The value of the estimated put/call option strike price on the date of acquisition was based on a Monte Carlo simulation model. This model contemplated multiple scenarios which simulated certain of Copal’s revenue, EBITDA margins and equity values to estimate the present value of the expected strike price of the option. In connection with the acquisition of Amba in December 2013, which was combined with Copal to form the Copal Amba operating segment and reporting unit, the aforementioned revenue and EBITDA multiples set forth in the put/call option agreement were modified to include the results of Amba. The option was subject to a minimum exercise price of $46 million. There was no limit as to the maximum amount of the strike price on the put/call option.

In the fourth quarter of 2014, the Company exercised its call option to acquire the remaining interest of Copal Amba.

84 MOODY’S  2014 10K

The following table shows changes in the redeemable noncontrolling interest related to the acquisition of Copal Amba:

	Year Ended December 31,
	2014			2013			2012
	Redeemable Noncontrolling Interest
Balance January 1,	$	80.0		$	72.3		$	60.5
Net earnings		9.3			5.8			3.6
Dividends		(4.9	)		(6.0	)		(3.6	)
Redemption of noncontrolling interest		(183.8	)		—			—
Adjustment due to right of offset for UTPs (1)		—			—			6.8
Adjustment to redemption value (2)		99.4			7.9			3.4
FX translation		—			—			1.6
Balance December 31,	$	—		$	80.0		$	72.3

⁽¹⁾  Relates to an adjustment for the right of offset pursuant to the Copal acquisition agreement whereby the amount due to the sellers under the put/call arrangement was reduced by the amount of UTPs that the Company may be required to pay

⁽²⁾ The adjustment to the redemption value in the year ended December 31, 2014 reflects the aforementioned revisions to the revenue and EBITDA multiples pursuant to the amendment of the put/call agreement which occurred contemporaneously with the acquisition of Amba coupled with growth in the Copal Amba reporting unit. These adjustments are recorded with a corresponding reduction to capital surplus.

NOTE 11 COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table provides details about the reclassifications out of AOCI:

	Year Ended December 31,						Affected line in the Consolidated Statements of Operation
	2014			2013
Losses on foreign translation adjustments
Liquidation of foreign subsidiary	$	—		$	(1.4	)	Other non-operating income (expense), net
Loss on foreign currency translation adjustment pursuant to ICRA step-acquisition		(4.4	)		—		ICRA Gain
Total losses on foreign translation adjustments		(4.4	)		(1.4	)
Losses on cash flow hedges
Interest rate swap derivative contracts		—			(1.2	)	Interest income (expense), net
Income tax effect of item above		—			0.5		Provision for income taxes
Losses on cash flow hedges		—			(0.7	)
Gains on available for sale securities
Gain on sale of available for sale securities		0.1			—		Other non-operating income (expense), net
Total gains on available for sale securities		0.1			—
Losses on pension and other retirement benefits
Amortization of actuarial losses and prior service costs included in net income		(4.7	)		(7.6	)	Operating expense
Amortization of actuarial losses and prior service costs included in net income		(2.6	)		(4.3	)	SG&A expense
Total before income taxes		(7.3	)		(11.9	)
Income tax effect of item above		2.8			4.9		Provision for income tax
Total losses on pension and other retirement benefits		(4.5	)		(7.0	)
Total losses included in Net Income attributable to reclassifications out of AOCI	$	(8.8	)	$	(9.1	)

MOODY’S  2014 10K 85

Changes in AOCI by component (net of tax) for the period ended December 31, 2014 and 2013:

	Year Ended December 31, 2014
	Gains/(losses) on Net Investment Hedges		Pension and Other Retirement Benefits			Foreign Currency Translation Adjustments			Gains on Available for Sale Securities			Total
Balance December 31, 2013	$	1.5	$	(53.2	)	$	(2.9	)	$	—		$	(54.6	)
Other comprehensive income/(loss) before reclassification		19.4		(56.7	)		(153.1	)		1.0			(189.4	)
Amounts reclassified from AOCI		—		4.5			4.4			(0.1	)		8.8
Other comprehensive income/(loss)		19.4		(52.2	)		(148.7	)		0.9			(180.6	)
Balance December 31, 2014	$	20.9	$	(105.4	)	$	(151.6	)	$	0.9		$	(235.2	)

	Year Ended December 31, 2013
	Gains/(losses) on Cash Flow and Net Investment Hedges			Pension and Other Retirement Benefits			Foreign Currency Translation Adjustments			Gains on Available for Sale Securities		Total
Balance December 31, 2012	$	(2.9	)	$	(90.1	)	$	10.9		$	—	$	(82.1	)
Other comprehensive income/(loss) before reclassification		3.7			29.9			(15.2	)		—		18.4
Amounts reclassified from AOCI		0.7			7.0			1.4			—		9.1
Other comprehensive income/(loss)		4.4			36.9			(13.8	)		—		27.5
Balance December 31, 2013	$	1.5		$	(53.2	)	$	(2.9	)	$	—	$	(54.6	)

NOTE 12 PENSION AND OTHER RETIREMENT BENEFITS

U.S. Plans

Moody’s maintains funded and unfunded noncontributory Defined Benefit Pension Plans. The U.S. plans provide defined benefits using a cash balance formula based on years of service and career average salary or final average pay for selected executives. The Company also provides certain healthcare and life insurance benefits for retired U.S. employees. The retirement healthcare plans are contributory; the life insurance plans are noncontributory. Moody’s funded and unfunded U.S. pension plans, the U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Retirement Plans”. The U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Other Retirement Plans”. Effective at the Distribution Date, Moody’s assumed responsibility for the pension and other retirement benefits relating to its active employees. New D&B has assumed responsibility for the Company’s retirees and vested terminated employees as of the Distribution Date.

Through 2007, substantially all U.S. employees were eligible to participate in the Company’s DBPPs. Effective January 1, 2008, the Company no longer offers DBPPs to U.S. employees hired or rehired on or after January 1, 2008 and new hires in the U.S. instead will receive a retirement contribution in similar benefit value under the Company’s Profit Participation Plan. Current participants of the Company’s Retirement Plans and Other Retirement Plans continue to accrue benefits based on existing plan benefit formulas.

86 MOODY’S  2014 10K

Following is a summary of changes in benefit obligations and fair value of plan assets for the Retirement Plans for the years ended December 31:

	Pension Plans						Other Retirement Plans
	2014			2013			2014			2013
Change in benefit obligation:
Benefit obligation, beginning of the period	$	(347.1	)	$	(356.3	)	$	(20.7	)	$	(21.8	)
Service cost		(18.4	)		(19.8	)		(1.7	)		(1.7	)
Interest cost		(16.5	)		(13.5	)		(0.9	)		(0.8	)
Plan participants’ contributions		—			—			(0.4	)		(0.3	)
Benefits paid		6.4			5.3			0.6			0.6
Actuarial gain (loss)		(8.3	)		(0.7	)		(0.1	)		1.0
Assumption changes		(77.9	)		37.9			(3.5	)		2.3
Benefit obligation, end of the period		(461.8	)		(347.1	)		(26.7	)		(20.7	)
Change in plan assets:
Fair value of plan assets, beginning of the period		204.6			167.6			—			—
Actual return on plan assets		12.9			23.0			—			—
Benefits paid		(6.4	)		(5.3	)		(0.6	)		(0.6	)
Employer contributions		37.3			19.3			0.2			0.3
Plan participants’ contributions		—			—			0.4			0.3
Fair value of plan assets, end of the period		248.4			204.6			—			—
Funded Status of the plans		(213.4	)		(142.5	)		(26.7	)		(20.7	)
Amounts recorded on the consolidated balance sheets:
Pension and retirement benefits liability — current		(4.3	)		(6.2	)		(0.8	)		(0.8	)
Pension and retirement benefits liability — non current		(209.1	)		(136.3	)		(25.9	)		(19.9	)
Net amount recognized	$	(213.4	)	$	(142.5	)	$	(26.7	)	$	(20.7	)
Accumulated benefit obligation, end of the period	$	(396.3	)	$	(298.5	)

The following information is for those pension plans with an accumulated benefit obligation in excess of plan assets:

	December 31,
	2014		2013
Aggregate projected benefit obligation	$	461.8	$	347.1
Aggregate accumulated benefit obligation	$	396.3	$	298.5
Aggregate fair value of plan assets	$	248.4	$	204.6

The following table summarizes the pre-tax net actuarial losses and prior service cost recognized in AOCI for the Company’s Retirement Plans as of December 31:

	Pension Plans						Other Retirement Plans
	2014			2013			2014			2013
Net actuarial losses	$	(165.5	)	$	(84.6	)	$	(6.0	)	$	(2.4	)
Net prior service costs		(2.7	)		(3.3	)		—			—
Total recognized in AOCI- pretax	$	(168.2	)	$	(87.9	)	$	(6.0	)	$	(2.4	)

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The following table summarizes the estimated pre-tax net actuarial losses and prior service cost for the Company’s Retirement Plans that will be amortized from AOCI and recognized as components of net periodic expense during the next fiscal year:

	Pension Plans		Other Retirement Plans
Net actuarial losses	$	13.6	$	0.3
Net prior service costs		0.7		—
Total to be recognized as components of net periodic expense	$	14.3	$	0.3

Net periodic benefit expenses recognized for the Retirement Plans for years ended December 31:

	Pension Plans									Other Retirement Plans
	2014			2013			2012			2014		2013		2012
Components of net periodic expense
Service cost	$	18.4		$	19.8		$	18.9		$	1.7	$	1.7	$	1.5
Interest cost		16.5			13.5			13.1			0.9		0.8		0.7
Expected return on plan assets		(14.3	)		(12.9	)		(12.5	)		—		—		—
Amortization of net actuarial loss from earlier periods		6.6			10.8			9.1			—		0.3		0.3
Amortization of net prior service costs from earlier periods		0.7			0.6			0.7			—		—		—
Net periodic expense	$	27.9		$	31.8		$	29.3		$	2.6	$	2.8	$	2.5

The following table summarizes the pre-tax amounts recorded in OCI related to the Company’s Retirement Plans for the years ended December 31:

	Pension Plans					Other Retirement Plans
	2014			2013		2014			2013
Amortization of net actuarial losses	$	6.6		$	10.8	$	—		$	0.3
Amortization of prior service costs		0.7			0.6		—			—
Net actuarial gain (loss) arising during the period		(87.5	)		47.3		(3.7	)		3.3
Total recognized in OCI – pre-tax	$	(80.2	)	$	58.7	$	(3.7	)	$	3.6

ADDITIONAL INFORMATION:

Assumptions – Retirement Plans

Weighted-average assumptions used to determine benefit obligations at December 31:

	Pension Plans						Other Retirement Plans
	2014			2013			2014			2013
Discount rate		3.78	%		4.71	%		3.65	%		4.45	%
Rate of compensation increase		3.76	%		4.00	%		—			—

Weighted-average assumptions used to determine net periodic benefit expense for years ended December 31:

	Pension Plans									Other Retirement Plans
	2014			2013			2012			2014			2013			2012
Discount rate		4.71	%		3.82	%		4.25	%		4.45	%		3.55	%		4.05	%
Expected return on plan assets		6.80	%		7.30	%		7.85	%		—			—			—
Rate of compensation increase		4.00	%		4.00	%		4.00	%		—			—			—

88 MOODY’S  2014 10K

The expected rate of return on plan assets represents the Company’s best estimate of the long-term return on plan assets and is determined by using a building block approach, which generally weighs the underlying long-term expected rate of return for each major asset class based on their respective allocation target within the plan portfolio, net of plan paid expenses. As the assumption reflects a long-term time horizon, the plan performance in any one particular year does not, by itself, significantly influence the Company’s evaluation. For 2014, the expected rate of return used in calculating the net periodic benefit costs was 6.80%. For 2015, the Company reduced the expected rate of return assumption to 5.80% to reflect the Plan’s increased allocation to fixed income securities based on the Company’s revised investment policy implemented in 2014 and to reflect the Company’s current view of long-term capital market outlook. In addition, the Company has updated its mortality assumption by adopting the newly released RP-2014 mortality tables and accompanying mortality improvement scale MP-2014 recently issued by the Society of Actuaries.

Assumed Healthcare Cost Trend Rates at December 31:

	2014						2013						2012
	Pre-age 65			Post-age 65			Pre-age 65			Post-age 65			Pre-age 65			Post-age 65
Healthcare cost trend rate assumed for the following year		7.95	%		7.05	%		8.2	%		7.3	%		6.9	%		7.9	%
Ultimate rate to which the cost trend rate is assumed to declines (ultimate trend rate)		5.0%						5.0%						5.0%
Year that the rate reaches the ultimate trend rate		2028			2026			2028			2026			2020

The assumed health cost trend rate reflects different expectations for the medical and prescribed medication components of health care costs for pre and post-65 retirees. As the Company subsidies for retiree healthcare coverage are capped at the 2005 level, for the majority of the retirement health plan participants, retiree contributions are assumed to increase at the same rate as the healthcare cost trend rates. In 2013, the Company revised its trend rates to reflect current expectations of future health care inflation. A one percentage-point increase or decrease in assumed healthcare cost trend rates would not have affected total service and interest cost and would have a minimal impact on the retiree medical benefit obligation.

In 2012, the Company amended its retiree medical plan to modify its current design. Effective January 1, 2013, the newly implemented plan design provides current retirees age 65 and older with the option over the next three years to either enroll in a new Health Reimbursement Account (HRA) Program and receive a fixed amount annual subsidy or continue to stay in the current retiree medical plan. All future retirees age 65 and older will have to participate in the new HRA Program. There is no change to pre-65 coverage. As the new plan was designed to be cost neutral to the Company, the amendment of the plan had no significant impact to the plan.

Plan Assets

Moody’s investment objective for the assets in the funded pension plan is to earn total returns that will minimize future contribution requirements over the long-term within a prudent level of risk. The Company works with its independent investment consultants to determine asset allocation targets for its pension plan investment portfolio based on its assessment of business and financial conditions, demographic and actuarial data, funding characteristics, and related risk factors. Other relevant factors, including historical and forward looking views of inflation and capital market returns, are also considered. Risk management practices include monitoring plan asset performance, diversification across asset classes and investment styles, and periodic rebalancing toward asset allocation targets. The Company’s Asset Management Committee is responsible for overseeing the investment activities of the plan, which includes selecting acceptable asset classes, defining allowable ranges of holdings by asset class and by individual investment managers, defining acceptable securities within each asset class, and establishing investment performance expectations. Ongoing monitoring of the plan includes reviews of investment performance and managers on a regular basis, annual liability measurements, and periodic asset/liability studies.

In 2014, the Company implemented a revised investment policy, which uses risk-controlled investment strategies by increasing the plan’s asset allocation to fixed income securities and specifying ranges of acceptable target allocation by asset class based on different levels of the plan’s accounting funded status. In addition, the investment policy also requires the investment grade fixed income asset be rebalanced between shorter and longer duration bonds as the interest rate environment changes. This revised investment policy is designed to help protect the plan’s funded status and to limit volatility of the Company’s contributions. Based on the revised policy, the Company’s current target asset allocation is approximately 53% (range of 48% to 58%) in equity securities, 40% (range of 35% to 45%) in fixed income securities and 7% (range of 4% to 10% ) in other investments and the plan will use a combination of active and passive investment strategies and different investment styles for its investment portfolios within each asset class. The plan’s equity investments are diversified across U.S. and non-U.S. stocks of small, medium and large capitalization. The plan’s fixed income investments are diversified principally across U.S. and non-U.S. government and corporate bonds which are expected to help reduce plan

MOODY’S  2014 10K 89

exposure to interest rate variation and to better align assets with obligations. The plan also invests in other fixed income investments such debts rated below investment grade, emerging market debt, and convertible securities. The plan’s other investment, which is made through private real estate investment trust fund, is expected to provide additional diversification benefits and absolute return enhancement to the plan assets. Prior to the implementation of the revised policy, the Company’s target asset allocation was approximately, 60%, 33%, and 7% in equities, fixed income, and other investment, respectively.

Fair value of the assets in the Company’s funded pension plan by asset category at December 31, 2014 and 2013 are as follows:

	Fair Value Measurement as of December 31, 2014
Asset Category	Balance		Level 1		Level 2		Level 3		% of total assets
Cash and cash equivalent	$	13.2	$	—	$	13.2	$	—		5	%
Emerging markets equity fund		14.0	$	14.0	$	—		—		6	%
Common/collective trust funds — equity securities
Global large-cap		92.2		—		92.2		—		37	%
U.S. small and mid-cap		16.5		—		16.5		—		7	%
Total equity investments		122.7		14.0		108.7		—		50	%
Emerging markets bond fund		9.1		9.1						4	%
Common/collective trust funds — fixed income securities
Intermediate-term investment grade U.S. government/corporate bonds		60.8		—		60.8		—		24	%
U.S. Treasury Inflation-Protected Securities (TIPs)		10.7		—		10.7		—		4	%
Convertible securities		7.5		—		7.5		—		3	%
Private investment fund — high yield securities		6.7		—		6.7		—		3	%
Total fixed-income investments		94.8		9.1		85.7		—		38	%
Other investment- Common/collective trust fund — private real estate fund		17.8		—		17.8		—		7	%
Total Assets	$	248.5	$	23.1	$	225.4	$	—		100	%

	Fair Value Measurement as of December 31, 2013
Asset Category	Balance		Level 1		Level 2		Level 3		% of total assets
Cash and cash equivalent	$	0.4	$	—	$	0.4	$	—		—
Emerging markets equity fund		14.6	$	14.6	$	—		—		7	%
Common/collective trust funds — equity securities
U.S. large-cap		44.5		—		44.5		—		22	%
U.S. small and mid-cap		15.3		—		15.3		—		7	%
International		58.2		—		58.2		—		29	%
Total equity investments		132.6		14.6		118.0		—		65	%
Common/collective trust funds — fixed income securities
Long-term government/treasury bonds		13.7		—		13.7		—		7	%
Long-term investment grade corporate bonds		15.4		—		15.4		—		7	%
U.S. Treasury Inflation-Protected Securities (TIPs)		8.7		—		8.7		—		4	%
Emerging markets bonds		5.8		—		5.8		—		3	%
High yield bonds		6.1		—		6.1		—		3	%
Convertible securities		6.3		—		6.3		—		3	%
Total fixed-income investments		56.0		—		56.0		—		27	%
Other investment — Common/collective trust fund — private real estate fund		15.6		—		—		15.6		8	%
Total Assets	$	204.6	$	14.6	$	174.4	$	15.6		100	%

90 MOODY’S  2014 10K

Cash and cash equivalents are primarily comprised of investment in money market mutual funds. In determining fair value, Level 1 investments are valued based on quoted market prices in active markets. Investments in common/collective trust funds are valued using the net asset value (NAV) per unit in each fund. The NAV is based on the value of the underlying investments owned by each trust, minus its liabilities, and then divided by the number of shares outstanding. Common/collective trust funds are categorized in Level 2 to the extent that they are readily redeemable at their NAV as of the measurement date or in the near feature or else they are categorized in Level 3 of the fair value hierarchy.

The table below is a summary of changes in the fair value of the Plan’s Level 3 assets:

Real estate investment fund:
Balance as of December 31, 2013	$	15.6
Return on plan assets related to assets held as of December 31, 2014		1.6
Transfer (out), net		(17.8	)
Purchases (sales), net		0.6
Balance as of December 31, 2014	$	—

Except for the Company’s U.S. funded pension plan, all of Moody’s Retirement Plans are unfunded and therefore have no plan assets.

Cash Flows

The Company contributed $33.7 million and $16.8 million to its U.S. funded pension plan during the years ended December 31, 2014 and 2013, respectively. The Company made payments of $3.6 million and $2.5 million related to its U.S. unfunded pension plan obligations during the years ended December 31, 2014 and 2013, respectively. The Company made payments of $0.6 million to its Other Retirement Plans during both the years ended December 31, 2014 and 2013. The Company presently anticipates making contributions of $9.0 million to its funded pension plan and anticipates making payments of $4.3 million related to its unfunded U.S. pension plans and $0.8 million related to its Other Retirement Plans during the year ended December 31, 2015.

Estimated Future Benefits Payable

Estimated future benefits payments for the Retirement Plans are as follows at ended December 31, 2014:

Year Ending December 31,	Pension Plans		Other Retirement Plans
2015	$	8.3	$	0.8
2016		10.3		1.0
2017		10.9		1.1
2018		39.6		1.3
2019		14.0		1.5
2020 – 2024	$	110.5	$	9.6

Defined Contribution Plans

Moody’s has a Profit Participation Plan covering substantially all U.S. employees. The Profit Participation Plan provides for an employee salary deferral and the Company matches employee contributions, equal to 50% of employee contribution up to a maximum of 3% of the employee’s pay. Moody’s also makes additional contributions to the Profit Participation Plan based on year-to-year growth in the Company’s EPS. Effective January 1, 2008, all new hires are automatically enrolled in the Profit Participation Plan when they meet eligibility requirements unless they decline participation. As the Company’s U.S. DBPPs are closed to new entrants effective January 1, 2008, all eligible new hires will instead receive a retirement contribution into the Profit Participation Plan in value similar to the pension benefits. Additionally, effective January 1, 2008, the Company implemented a deferred compensation plan in the U.S., which is unfunded and provides for employee deferral of compensation and Company matching contributions related to compensation in excess of the IRS limitations on benefits and contributions under qualified retirement plans. Total expenses associated with U.S. defined contribution plans were $26.8 million, $18.8 million and $24.5 million in 2014, 2013, and 2012, respectively.

Effective January 1, 2008, Moody’s has designated the Moody’s Stock Fund, an investment option under the Profit Participation Plan, as an Employee Stock Ownership Plan and, as a result, participants in the Moody’s Stock Fund may receive dividends in cash or may reinvest such dividends into the Moody’s Stock Fund. Moody’s paid approximately $0.6 million and $0.5 million in dividends during the years ended December 31, 2014 and 2013, respectively, for the Company’s common shares held by the Moody’s Stock Fund. The Company records the dividends as a reduction of retained earnings in the Consolidated Statements of Shareholders’ Equity (Deficit). The Moody’s Stock Fund held approximately 490,000 and 520,000 shares of Moody’s common stock at December 31, 2014 and 2013, respectively.

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International Plans

Certain of the Company’s international operations provide pension benefits to their employees. For defined contribution plans, company contributions are primarily determined as a percentage of employees’ eligible compensation. Moody’s also makes contributions to non-U.S. employees under a profit sharing plan which is based on year-to-year growth in the Company’s diluted EPS. Expenses related to these defined contribution plans for the years ended December 31, 2014, 2013 and 2012 were $30.6 million, $19.7 million and $18.8 million, respectively.

For defined benefit plans, the Company maintains various unfunded DBPPs and retirement health benefit plan for certain of its non-U.S. subsidiaries located in Germany, France and Canada. These unfunded DBPPs are generally based on each eligible employee’s years of credited service and on compensation levels as specified in the plans. The DBPP in Germany was closed to new entrants in 2002. Total defined benefit pension liabilities recorded related to non-U.S. pension plans was $9.8 million, $7.8 million and $7.2 million based on a weighted average discount rate of 2.00%, 3.58% and 3.53% at December 31, 2014, 2013 and 2012, respectively. The pension liabilities recorded as of December 31, 2014 represent the unfunded status of these pension plans and were recognized in the consolidated balance sheet as mostly non-current liabilities. Total pension expense recorded for the years ended December 31, 2014, 2013 and 2012 was approximately $0.6 million for each year. These amounts are not included in the tables above. As of December 31, 2014, the amount of net actuarial losses included in AOCI related to non-U.S. pension plans was $1.8 million net of tax. The Company’s non-U.S. other retirement benefit obligation was also immaterial as of December 31, 2014.

NOTE 13 STOCK-BASED COMPENSATION PLANS

Under the 1998 Plan, 33.0 million shares of the Company’s common stock have been reserved for issuance. The 2001 Plan, which is shareholder approved, permits the granting of up to 50.6 million shares, of which not more than 14.0 million shares are available for grants of awards other than stock options. The Stock Plans also provide for the granting of restricted stock. The Stock Plans provide that options are exercisable not later than ten years from the grant date. The vesting period for awards under the Stock Plans is generally determined by the Board at the date of the grant and has been four years except for employees who are at or near retirement eligibility, as defined, for which vesting is between one and four years. Additionally, the vesting period is three years for certain performance-based restricted stock that contain a condition whereby the number of shares that ultimately vest are based on the achievement of certain non-market based performance metrics of the Company. Options may not be granted at less than the fair market value of the Company’s common stock at the date of grant.

The Company maintains the Directors’ Plan for its Board, which permits the granting of awards in the form of non-qualified stock options, restricted stock or performance shares. The Directors’ Plan provides that options are exercisable not later than ten years from the grant date. The vesting period is determined by the Board at the date of the grant and is generally one year for both options and restricted stock. Under the Directors’ Plan, 1.7 million shares of common stock were reserved for issuance. Any director of the Company who is not an employee of the Company or any of its subsidiaries as of the date that an award is granted is eligible to participate in the Directors’ Plan.

Presented below is a summary of the stock-based compensation expense and associated tax benefit in the accompanying Consolidated Statements of Operations:

	Year Ended December 31,
	2014		2013		2012
Stock-based compensation expense	$	80.4	$	67.1	$	64.5
Tax benefit	$	27.5	$	24.7	$	23.3

The fair value of each employee stock option award is estimated on the date of grant using the Black-Scholes option-pricing model that uses the assumptions noted below. The expected dividend yield is derived from the annual dividend rate on the date of grant. The expected stock volatility is based on an assessment of historical weekly stock prices of the Company as well as implied volatility from Moody’s traded options. The risk-free interest rate is based on U.S. government zero coupon bonds with maturities similar to the expected holding period. The expected holding period was determined by examining historical and projected post-vesting exercise behavior activity.

92 MOODY’S  2014 10K

The following weighted average assumptions were used for options granted:

	Year Ended December 31,
	2014			2013			2012
Expected dividend yield		1.41	%		1.72	%		1.66	%
Expected stock volatility		41	%		43	%		44	%
Risk-free interest rate		2.30	%		1.53	%		1.55	%
Expected holding period		7.2 years			7.2 years			7.4 years
Grant date fair value	$	31.53		$	17.58		$	15.19

A summary of option activity as of December 31, 2014 and changes during the year then ended is presented below:

Options	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding, December 31, 2013		8.9		$	45.00
Granted		0.3			79.57
Exercised		(3.2	)		46.40
Outstanding, December 31, 2014		6.0		$	46.00		4.2 yrs	$	299.5
Vested and expected to vest, December 31, 2014		5.9		$	45.84		4.1 yrs	$	295.6
Exercisable, December 31, 2014		5.0		$	44.79		3.4 yrs	$	252.6

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between Moody’s closing stock price on the last trading day of the year ended December 31, 2014 and the exercise prices, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options as of December 31, 2014. This amount varies based on the fair value of Moody’s stock. As of December 31, 2014 there was $7.4 million of total unrecognized compensation expense related to options. The expense is expected to be recognized over a weighted average period of 1.4 years.

The following table summarizes information relating to stock option exercises:

	Year Ended December 31,
	2014		2013		2012
Proceeds from stock option exercises	$	145.5	$	163.3	$	127.4
Aggregate intrinsic value	$	122.3	$	112.4	$	61.3
Tax benefit realized upon exercise	$	43.2	$	41.1	$	23.4

A summary of the status of the Company’s nonvested restricted stock as of December 31, 2014 and changes during the year then ended is presented below:

Nonvested Restricted Stock	Shares			Weighted Average Grant Date Fair Value Per Share
Balance, December 31, 2013		3.1		$	39.30
Granted		0.9			79.69
Vested		(1.2	)		36.19
Forfeited		(0.1	)		50.45
Balance, December 31, 2014		2.7		$	53.98

As of December 31, 2014, there was $81.9 million of total unrecognized compensation expense related to nonvested restricted stock. The expense is expected to be recognized over a weighted average period of 1.6 years.

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The following table summarizes information relating to the vesting of restricted stock awards:

	Year Ended December 31,
	2014		2013		2012
Fair value of shares upon delivery	$	92.4	$	54.6	$	37.8
Tax benefit realized upon delivery	$	31.2	$	19.3	$	13.4

A summary of the status of the Company’s performance-based restricted stock as of December 31, 2014 and changes during the year then ended is presented below:

Performance-based restricted stock	Shares			Weighted Average Grant Date Fair Value Per Share
Balance, December 31, 2013		1.2		$	31.17
Granted		0.2		$	76.35
Vested		(0.5	)	$	28.76
Balance, December 31, 2014		0.9		$	46.09

The following table summarizes information relating to the vesting of the Company’s performance-based restricted stock awards:

	Year Ended December 31,
	2014		2013		2012
Fair value of shares upon delivery	$	38.0	$	25.5	$	—
Tax benefit realized upon delivery	$	14.4	$	9.7	$	—

As of December 31, 2014, there was $14.9 million of total unrecognized compensation expense related to this plan. The expense is expected to be recognized over a weighted average period of 0.9 years.

The Company has a policy of issuing treasury stock to satisfy shares issued under stock-based compensation plans.

In addition, the Company also sponsors the ESPP. Under the ESPP, 6.0 million shares of common stock were reserved for issuance. The ESPP allows eligible employees to purchase common stock of the Company on a monthly basis at a discount to the average of the high and the low trading prices on the New York Stock Exchange on the last trading day of each month. This discount was 5% in 2014, 2013 and 2012 resulting in the ESPP qualifying for non-compensatory status under Topic 718 of the ASC. Accordingly, no compensation expense was recognized for the ESPP in 2014, 2013, and 2012. The employee purchases are funded through after-tax payroll deductions, which plan participants can elect from one percent to ten percent of compensation, subject to the annual federal limit.

94 MOODY’S  2014 10K

NOTE 14 INCOME TAXES

Components of the Company’s provision for income taxes are as follows:

	Year Ended December 31,
	2014		2013			2012
Current:
Federal	$	252.8	$	226.2		$	168.1
State and Local		70.2		57.6			33.7
Non-U.S.		102.1		96.8			86.4
Total current		425.1		380.6			288.2
Deferred:
Federal		0.9		(13.1	)		35.7
State and Local		4.9		(5.6	)		4.5
Non-U.S.		24.1		(8.5	)		(4.1	)
Total deferred		29.9		(27.2	)		36.1
Total provision for income taxes	$	455.0	$	353.4		$	324.3

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate on income before provision for income taxes is as follows:

	Year Ended December 31,
	2014			2013			2012
U.S. statutory tax rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of federal tax benefit		3.6			2.9			2.4
Benefit of foreign operations		(7.4	)		(6.4	)		(6.1	)
Legacy tax items		(0.2	)		(0.6	)		(0.4	)
Other		0.1			(0.7	)		0.8
Effective tax rate		31.1	%		30.2	%		31.7	%
Income tax paid	$	369.4		$	335.7	(1)	$	293.3	(2)

⁽¹⁾ Includes fourth quarter 2012 estimated federal tax payment made in 2013 due to IRS relief for companies affected by Hurricane Sandy

⁽²⁾  Includes approximately $92 million in payments for tax audit settlements in the first quarter of 2012

The source of income before provision for income taxes is as follows:

	Year Ended December 31,
	2014		2013		2012
United States	$	912.6	$	836.1	$	694.2
International		548.4		333.2		329.8
Income before provision for income taxes	$	1,461.0	$	1,169.3	$	1,024.0

MOODY’S  2014 10K 95

The components of deferred tax assets and liabilities are as follows:

	December 31,
	2014			2013
Deferred tax assets:
Current:
Account receivable allowances	$	7.7		$	8.2
Accrued compensation and benefits		14.6			12.8
Deferred revenue		6.7			7.3
Legal and professional fees		10.4			10.9
Restructuring		2.3			3.5
Uncertain tax positions		—			7.5
Other		3.5			0.7
Total current		45.2			50.9
Non-current:
Accumulated depreciation and amortization		0.9			2.6
Stock-based compensation		62.3			73.7
Benefit plans		108.7			78.9
Deferred rent and construction allowance		30.5			30.4
Deferred revenue		34.2			33.4
Foreign net operating loss (1)		7.5			10.6
Uncertain tax positions		38.3			26.8
Self-insured related reserves		14.9			20.4
Other		5.6			4.3
Total non-current		302.9			281.1
Total deferred tax assets		348.1			332.0
Deferred tax liabilities:
Current:
Compensation and benefits		(3.0	)		—
Unrealized gain on net investment hedges		(14.0	)		—
Other		(1.1	)		—
Total Current		(18.1	)		—
Non-current:
Accumulated depreciation and amortization of intangible assets and capitalized software		(204.3	)		(153.7	)
Foreign earnings to be repatriated		(3.4	)		(3.7	)
Self-insured related income		(16.9	)		(24.0	)
Other liabilities		(0.1	)		(2.7	)
Total non-current		(224.7	)		(184.1	)
Total deferred tax liabilities		(242.8	)		(184.1	)
Net deferred tax asset		105.3			147.9
Valuation allowance		(6.9	)		(8.4	)
Total net deferred tax assets	$	98.4		$	139.5

⁽¹⁾  Amounts are primarily set to expire beginning in 2018, if unused.

As of December 31, 2014, the Company had approximately $2,032.0 million of undistributed earnings of foreign subsidiaries that it intends to indefinitely reinvest in foreign operations. The Company has not provided deferred income taxes on these indefinitely reinvested earnings. It is not practicable to determine the amount of deferred taxes that might be required to be provided if such earnings were distributed in the future, due to complexities in the tax laws and in the hypothetical calculations that would have to be made.

96 MOODY’S  2014 10K

The Company had valuation allowances of $6.9 million and $8.4 million at December 31, 2014 and 2013, respectively, related to foreign net operating losses for which realization is uncertain.

As of December 31, 2014 the Company had $220.3 million of UTPs of which $157.1 million represents the amount that, if recognized, would impact the effective tax rate in future periods.

A reconciliation of the beginning and ending amount of UTPs is as follows:

	Year Ended December 31,
	2014			2013			2012
Balance as of January 1	$	195.6		$	156.6		$	205.4
Additions for tax positions related to the current year		52.5			67.8			49.1
Additions for tax positions of prior years		8.7			6.1			18.9
Reductions for tax positions of prior years		(13.0	)		(10.1	)		(20.6	)
Settlements with taxing authorities		(18.8	)		(21.4	)		(91.5	)
Lapse of statute of limitations		(4.7	)		(3.4	)		(4.7	)
Balance as of December 31	$	220.3		$	195.6		$	156.6

The Company classifies interest related to UTPs in interest expense in its consolidated statements of operations. Penalties, if incurred, would be recognized in other non-operating expenses. During the years ended December 31, 2014 and 2013, the Company incurred a net interest expense of $5.5 million and $7.6 million, respectively, related to UTPs. During 2012, the Company realized a net interest benefit of $1.6 million related to UTPs. As of December 31, 2014 and 2013, the amount of accrued interest recorded in the Company’s consolidated balance sheets related to UTPs was $20.8 million and $17.9 million, respectively.

Moody’s Corporation and subsidiaries are subject to U.S. federal income tax as well as income tax in various state, local and foreign jurisdictions. The Company’s U.S. federal income tax returns for the years 2008 through 2010 are under examination and its 2011 to and 2013 returns remain open to examination. The Company’s New York State income tax returns for 2011 to 2013 remain open to examination. The Company’s New York City income tax returns have been examined through 2012. The Company settled the U.K. tax audit for tax years 2007 through 2011 during the first quarter of 2014. Tax filings in the U.K. remain open to examination for tax years 2012 through 2013.

For current ongoing audits related to open tax years, the Company estimates that it is possible that the balance of UTPs could decrease in the next twelve months as a result of the effective settlement of these audits, which might involve the payment of additional taxes, the adjustment of certain deferred taxes and/or the recognition of tax benefits. It is also possible that new issues might be raised by tax authorities which might necessitate increases to the balance of UTPs. As the Company is unable to predict the timing of conclusion of these audits, the Company is unable to estimate the amount of changes to the balance of UTPs at this time.

MOODY’S  2014 10K 97

NOTE 15 INDEBTEDNESS

The following table summarizes total indebtedness:

	December 31,
	2014		2013
2012 Facility	$	—	$	—
Notes payable:
Series 2005-1 Notes due 2015, including fair value of interest rate swap of $10.3 million at 2013		—		310.3
Series 2007-1 Notes due in 2017		300.0		300.0
2010 Senior Notes, due 2020, net of unamortized discount of $2.0 million and $2.2 million in 2014 and 2013, respectively, and includes a $5.8 million fair value adjustment on an interest rate hedge in 2014		503.8		497.8
2012 Senior Notes, due 2022, net of unamortized discount of $3.1 million in 2014 and $3.5 million in 2013		496.9		496.5
2013 Senior Notes, due 2024, net of unamortized discount of $2.5 million in 2014 and $2.8 million in 2013		497.5		497.2
2014 Senior Notes (5-Year), due 2019, net of unamortized discount of $0.7 million in 2014 and includes a $1.4 million fair value adjustment on an interest rate hedge in 2014		450.7		—
2014 Senior Notes (30-Year), due 2044, net of unamortized discount of $1.6 million in 2014		298.4		—
Total long-term debt	$	2,547.3	$	2,101.8

2012 Facility

On April 18, 2012, the Company and certain of its subsidiaries entered into a $1 billion five-year senior, unsecured revolving credit facility in an aggregate principal amount of $1 billion that expires in April 2017. The 2012 Facility replaced the $1 billion 2007 Facility that was scheduled to expire in September 2012. The proceeds from the 2012 Facility will be used for general corporate purposes, including, without limitation, share repurchases and acquisition financings. Interest on borrowings under the facility is payable at rates that are based on LIBOR plus a premium that can range from 77.5 basis points to 120 basis points per annum of the outstanding amount, depending on the Company’s Debt/EBITDA ratio. The Company also pays quarterly facility fees, regardless of borrowing activity under the 2012 Facility. These quarterly fees can range from 10 basis points of the facility amount to 17.5 basis points, depending on the Company’s Debt/ EBITDA Ratio.

The 2012 Facility contains covenants that, among other things, restrict the ability of the Company and its subsidiaries, without the approval of the lenders, to engage in mergers, consolidations, asset sales, transactions with affiliates and sale-leaseback transactions or to incur liens, as set forth in the facility agreement. The 2012 Facility also contains a financial covenant that requires the Company to maintain a Debt to EBITDA Ratio of not more than 4 to 1 at the end of any fiscal quarter. Upon the occurrence of certain financial or economic events, significant corporate events or certain other events constituting an event of default under the 2012 Facility, all loans outstanding under the facility (including accrued interest and fees payable thereunder) may be declared immediately due and payable and all commitments under the facility may be terminated.

Notes Payable

On September 30, 2005, the Company issued and sold through a private placement transaction, $300.0 million aggregate principal amount of its Series 2005-1 Senior Unsecured Notes due 2015 pursuant to the 2005 Agreement. The Series 2005-1 Notes had a ten-year term and bore interest at an annual rate of 4.98%, payable semi-annually on March 30 and September 30. Proceeds from the sale of the Series 2005-1 Notes were used to refinance $300.0 million aggregate principal amount of the Company’s outstanding 7.61% senior notes which matured on September 30, 2005. On August 7, 2014, the Company prepaid the Series 2005-1 Notes using proceeds from the issuance of the 2014 Senior Notes (30-year) and the 2014 Senior Notes (5-year).

On September 7, 2007, the Company issued and sold through a private placement transaction, $300.0 million aggregate principal amount of its 6.06% Series 2007-1 Senior Unsecured Notes due 2017 pursuant to the 2007 Agreement. The Series 2007-1 Notes have a ten-year term and bear interest at an annual rate of 6.06%, payable semi-annually on March 7 and September 7. The Company may prepay the Series 2007-1 Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make Whole Amount. The 2007 Agreement contains covenants that limit the ability of the Company, and certain of its subsidiaries to, among other things: enter into transactions with affiliates, dispose of assets, incur or create liens, enter into any sale-leaseback transactions, or merge with any other corporation or convey, transfer or lease substantially all of its assets. The Company must also not permit its Debt/EBITDA ratio to exceed 4.0 to 1.0 at the end of any fiscal quarter.

98 MOODY’S  2014 10K

On August 19, 2010, the Company issued $500 million aggregate principal amount of senior unsecured notes in a public offering. The 2010 Senior Notes bear interest at a fixed rate of 5.50% and mature on September 1, 2020. Interest on the 2010 Senior Notes will be due semi-annually on September 1 and March 1 of each year, commencing March 1, 2011. The Company may prepay the 2010 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2010 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2010 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2010 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2010 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2010 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2010 Indenture, the notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

On November 4, 2011, in connection with the acquisition of Copal, a subsidiary of the Company issued a $14.2 million non-interest bearing note to the sellers which represented a portion of the consideration transferred to acquire the Copal entities. If a seller subsequently transfers to the Company all of its shares, the Company must repay the seller its proportion of the principal on the later of (i) the fourth anniversary date of the note or (ii) within a time frame set forth in the acquisition agreement relating to the resolution of certain income tax uncertainties pertaining to the transaction. The Company has the right to offset payment of the note against certain indemnification assets associated with UTPs related to the acquisition. Accordingly, the Company has offset the liability for this note against the indemnification asset, thus no balance for this note is carried on the Company’s consolidated balance sheet at December 31, 2014 and 2013. In the event that the Company would not be required to settle amounts related to the UTPs, the Company would be required to pay the sellers the principal in accordance with the note agreement. The Company may prepay the note in accordance with certain terms set forth in the acquisition agreement.

On August 20, 2012, the Company issued $500 million aggregate principal amount of unsecured notes in a public offering. The 2012 Senior Notes bear interest at a fixed rate of 4.50% and mature on September 1, 2022. Interest on the 2012 Senior Notes will be due semi-annually on September 1 and March 1 of each year, commencing March 1, 2013. The Company may prepay the 2012 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2012 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2012 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2012 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2012 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2012 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2012 Indenture, the 2012 Senior notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

On August 12, 2013, the Company issued $500 million aggregate principal amount of senior unsecured notes in a public offering. The 2013 Senior Notes bear interest at a fixed rate of 4.875% and mature on February 15, 2024. Interest on the 2013 Senior Notes will be due semi-annually on February 15 and August 15 of each year, commencing February 15, 2014. The Company may prepay the 2013 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Notwithstanding the immediately preceding sentence, the Company may redeem the 2013 Senior Notes, in whole or in part, at any time or from time to time on or after November 15, 2023 (three months prior to their maturity), at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date. Additionally, at the option of the holders of the notes, the Company may be required to purchase all or

MOODY’S  2014 10K 99

a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2013 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2013 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2013 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2013 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2013 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2013 Indenture, the 2013 Senior Notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

On July 16, 2014, the Company issued $300 million aggregate principal amount of senior unsecured notes in a public offering. The 2014 Senior Notes (30-year) bear interest at a fixed rate of 5.25% and mature on July 15, 2044. Interest on the 2014 Senior Notes (30-year) will be due semi-annually on January 15 and July 15 of each year, commencing January 15, 2015. The Company may prepay the 2014 Senior Notes (30-year), in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2014 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2014 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2014 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2014 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2014 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2014 Indenture, the 2014 Senior Notes (30-year) may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

On July 16, 2014, the Company issued $450 million aggregate principal amount of senior unsecured notes in a public offering. The 2014 Senior Notes (5-year) bear interest at a fixed rate of 2.75% and mature July 15, 2019. Interest on the 2014 Senior Notes (5-year) will be due semi-annually on January 15 and July 15 of each year, commencing January 15, 2015. The Company may prepay the 2014 Senior Notes (5-year), in whole or in part, at any time at a price prior to June 15, 2019, equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Notwithstanding the immediately preceding sentence, the Company may redeem the 2014 Senior Notes (5-year), in whole or in part, at any time or from time to time on or after June 15, 2019 (one month prior to their maturity), at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date. Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2014 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2014 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2014 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2014 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2014 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2014 Indenture, the 2014 Senior Notes (5-year) may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

On August 7, 2014, the Company prepaid the Series 2005-1 Notes using proceeds from the issuance of the 2014 Senior Notes (30-year) and the 2014 Senior Notes (5-year). The proceeds from the July 16, 2014 issuance will also be used for general corporate purposes.

100 MOODY’S  2014 10K

The principal payments due on the Company’s long-term borrowings for each of the next five years are presented in the table below:

Year Ending December 31,	Series 2007-1 Notes		2010 Senior Notes		2012 Senior Notes		2013 Senior Notes		2014 Senior Notes (5-year)		2014 Senior Notes (30-year)		Total
2015	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2016		—		—		—		—		—		—		—
2017		300.0		—		—		—		—		—		300.0
2018		—		—		—		—		—		—		—
2019		—		—		—		—		450.0		—		450.0
Thereafter				500.0		500.0		500.0		—		300.0		1,800.0
Total	$	300.0	$	500.0	$	500.0	$	500.0	$	450.0	$	300.0	$	2,550.0

The Company entered into interest rate swaps on the 2010 Senior Notes and the 2014 Senior Notes (5-year) which are more fully discussed in Note 5.

At December 31, 2014, the Company was in compliance with all covenants contained within all of the debt agreements. In addition to the covenants described above, the 2014 Indenture, the 2012 Facility, the 2007 Agreement, the 2013 Indenture, the 2012 Indenture and the 2010 Indenture contain cross default provisions. These provisions state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of December 31, 2014, there are no such cross defaults.

INTEREST EXPENSE, NET

The following table summarizes the components of interest as presented in the consolidated statements of operations:

	Year Ended December 31,
	2014			2013			2012
Income	$	6.7		$	5.5		$	5.2
Expense on borrowings (a)		(118.4	)		(92.3	)		(73.8	)
Expense on UTPs and other tax related liabilities (b)		(5.8	)		(8.6	)		0.4
Legacy Tax (c)		0.7			3.6			4.4
Total	$	(116.8	)	$	(91.8	)	$	(63.8	)
Interest paid (d)	$	113.7		$	81.9		$	94.4

(a) Includes approximately $11 million in 2014 in net costs related to the prepayment of the Series 2005-1 Notes.

(b) Includes $2.0 million in 2014 relating to a reversal of an interest accrual relating to the favorable resolution of an international tax matter.

(c) Represents a reduction of accrued interest related to the favorable resolution of Legacy Tax Matters, further discussed in Note 18 to the consolidated financial statements.

(d) Interest paid includes payments of interest relating to the settlement of income tax audits in the first quarter of 2012 as well as net settlements on interest rate swaps more fully discussed in Note 5.

MOODY’S  2014 10K 101

The Company’s long-term debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for the Series 2005-1 Notes, the 2010 Senior Notes, and the 2014 Senior Notes (5-Year) which are recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge the fair value of the note. The fair value and carrying value of the Company’s long-term debt as of December 31, 2014 and December 31, 2013 are as follows:

	December 31, 2014				December 31, 2013
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Series 2005-1 Notes	$	—	$	—	$	310.3	$	319.2
Series 2007-1 Notes		300.0		334.6		300.0		334.7
2010 Senior Notes		503.8		564.4		497.8		536.6
2012 Senior Notes		496.9		537.1		496.5		497.0
2013 Senior Notes		497.5		548.4		497.2		501.2
2014 Senior Notes (5-Year)		450.7		454.3		—		—
2014 Senior Notes (30-Year)		298.4		333.9		—		—
Total	$	2,547.3	$	2,772.7	$	2,101.8	$	2,188.7

The fair value of the Company’s long-term debt is estimated using discounted cash flows based on prevailing interest rates available to the Company for borrowings with similar maturities. Accordingly, the inputs used to estimate the fair value of the Company’s long-term debt are classified as Level 2 inputs within the fair value hierarchy.

NOTE 16 CAPITAL STOCK

Authorized Capital Stock

The total number of shares of all classes of stock that the Company has authority to issue under its Restated Certificate of Incorporation is 1.02 billion shares with a par value of $0.01, of which 1.0 billion are shares of common stock, 10.0 million are shares of preferred stock and 10.0 million are shares of series common stock. The preferred stock and series common stock can be issued with varying terms, as determined by the Board.

Share Repurchase Program

The Company implemented a systematic share repurchase program in the third quarter of 2005 through an SEC Rule 10b5-1 program. Moody’s may also purchase opportunistically when conditions warrant. As a result, Moody’s share repurchase activity will continue to vary from quarter to quarter. The table below summarizes the Company’s remaining authority under the various share repurchase programs as of December 31, 2014:

Date Authorized	Amount Authorized		Remaining Authority
February 12, 2013	$	1,000.0	$	—
February 11, 2014	$	1,000.0	$	563.5
December 16, 2014	$	1,000.0	$	1,000.0

During 2014, Moody’s repurchased 13.8 million shares of its common stock under its share repurchase program and issued 4.9 million shares under employee stock-based compensation plans.

102 MOODY’S  2014 10K

Dividends

The Company’s cash dividends were:

	Dividends Per Share
	Year ended December 31,
	2014				2013				2012
	Declared		Paid		Declared		Paid		Declared		Paid
First quarter	$	—	$	0.28	$	—	$	0.20	$	—	$	0.16
Second quarter		0.28		0.28		0.20		0.20		0.16		0.16
Third quarter		0.28		0.28		0.25		0.25		0.16		0.16
Fourth quarter		0.62		0.28		0.53		0.25		0.36		0.16
Total	$	1.18	$	1.12	$	0.98	$	0.90	$	0.68	$	0.64

On December 16, 2014, the Board of the Company approved the declaration of a quarterly dividend of $0.34 per share of Moody’s common stock, payable on March 10, 2015 to shareholders of record at the close of business on February 20, 2015. The continued payment of dividends at the rate noted above, or at all, is subject to the discretion of the Board.

NOTE 17 LEASE COMMITMENTS

Moody’s operates its business from various leased facilities, which are under operating leases that expire over the next 13 years. Moody’s also leases certain computer and other equipment under operating leases that expire over the next four years. Rent expense, including lease incentives, is amortized on a straight-line basis over the related lease term. Rent expense under operating leases for the years ended December 31, 2014, 2013 and 2012 was $83.9 million, $74.2 million and $75.8 million, respectively.

The 21-year operating lease for the Company’s headquarters at 7WTC which commenced on October 20, 2006 contains a total of 20 years of renewal options. These renewal options apply to both the original lease as well as additional floors leased by the Company beginning in 2014. Additionally, the 17.5 year operating lease for the Company’s London, England office which commenced on February 6, 2008 contains a total of 15 years of renewal options.

The minimum rent for operating leases that have remaining or original non-cancelable lease terms in excess of one year at December 31, 2014 is as follows:

Year Ending December 31,	Operating Leases
2015	$	93.4
2016		80.9
2017		78.3
2018		72.7
2019		64.9
Thereafter		447.3
Total minimum lease payments	$	837.5

Future minimum operating lease payments have been reduced by future minimum sublease income of $3.7 million.

NOTE 18 CONTINGENCIES

Moody’s is involved in legal and tax proceedings, governmental investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate.

Following the global credit crisis of 2008, MIS and other credit rating agencies have been the subject of intense scrutiny, increased regulation, ongoing inquiry and governmental investigations, and civil litigation. Legislative, regulatory and enforcement entities around the world are considering additional legislation, regulation and enforcement actions, including with respect to MIS’s compliance with regulatory standards. Moody’s has received subpoenas and inquiries from states attorneys general and other domestic and foreign governmental authorities and is responding to such investigations and inquiries.

In addition, the Company is facing litigation from market participants relating to the performance of MIS rated securities. Although Moody’s in the normal course experiences such litigation, the volume and cost of defending such litigation has significantly increased following the events in the U.S. subprime residential mortgage sector and global credit markets more broadly over the last several years.

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On August 25, 2008, Abu Dhabi Commercial Bank filed a purported class action in the United States District Court for the Southern District of New York asserting numerous common-law causes of action against two subsidiaries of the Company, another rating agency, and Morgan Stanley & Co. The action related to securities issued by a structured investment vehicle called Cheyne Finance (the “Cheyne SIV”) and sought, among other things, compensatory and punitive damages. The central allegation against the rating agency defendants was that the credit ratings assigned to the securities issued by the Cheyne SIV were false and misleading. In early proceedings, the court dismissed all claims against the rating agency defendants except those for fraud and aiding and abetting fraud. In June 2010, the court denied plaintiff’s motion for class certification, and additional plaintiffs were subsequently added to the complaint. In January 2012, the rating agency defendants moved for summary judgment with respect to the fraud and aiding and abetting fraud claims. Also in January 2012, in light of new New York state case law, the court permitted the plaintiffs to file an amended complaint that reasserted previously dismissed claims against all defendants for breach of fiduciary duty, negligence, negligent misrepresentation, and related aiding and abetting claims. In May 2012, the court, ruling on the rating agency defendants’ motion to dismiss, dismissed all of the reasserted claims except for the negligent misrepresentation claim, and on September 19, 2012, after further proceedings, the court also dismissed the negligent misrepresentation claim. On August 17, 2012, the court ruled on the rating agencies’ motion for summary judgment on the plaintiffs’ remaining claims for fraud and aiding and abetting fraud. The court dismissed, in whole or in part, the fraud claims of four plaintiffs as against Moody’s but allowed the fraud claims to proceed with respect to certain claims of one of those plaintiffs and the claims of the remaining 11 plaintiffs. The court also dismissed all claims against Moody’s for aiding and abetting fraud. Three of the plaintiffs whose claims were dismissed filed motions for reconsideration, and on November 7, 2012, the court granted two of these motions, reinstating the claims of two plaintiffs that were previously dismissed. On February 1, 2013, the court dismissed the claims of one additional plaintiff on jurisdictional grounds. Trial on the remaining fraud claims against the rating agencies, and on claims against Morgan Stanley for aiding and abetting fraud and for negligent misrepresentation, was scheduled for May 2013. On April 24, 2013, pursuant to confidential settlement agreements, the 14 plaintiffs with claims that had been ordered to trial stipulated to the voluntary dismissal, with prejudice, of these claims as against all defendants, and the Court so ordered that stipulation on April 26, 2013. The settlement did not cover certain claims of two plaintiffs, Commonwealth of Pennsylvania Public School Employees’ Retirement System (“PSERS”) and Commerzbank AG (“Commerzbank”), that were previously dismissed by the Court. On May 23, 2013, these two plaintiffs filed a Notice of Appeal to the Second Circuit, seeking reversal of the dismissal of their claims and also seeking reversal of the trial court’s denial of class certification. According to pleadings filed by plaintiffs in earlier proceedings, PSERS and Commerzbank AG seek, respectively, $5.75 million and $69.6 million in compensatory damages in connection with the two claims at issue on the appeal. In October 2014, the Second Circuit affirmed the denial of class certification and the dismissal of PSERS’ claim but reversed a ruling of the trial court that had excluded certain evidence relevant to Commerzbank’s principal argument on appeal. The Second Circuit did not reverse the dismissal of Commerzbank’s claim but instead certified a legal question concerning Commerzbank’s argument to the New York Court of Appeals. The New York Court of Appeals subsequently agreed to hear the certified question and set a briefing schedule. After the New York Court of Appeals has ruled on the certified question, the case will be returned to the Second Circuit for a final decision on Commerzbank’s appeal.

On July 9, 2009, the California Public Employees’ Retirement System (“CalPERS”) filed an action in the Superior Court of California in San Francisco (the “Superior Court”) asserting two common-law causes of action, negligent misrepresentation and negligent interference with prospective economic advantage. The complaint named as defendants the Company, MIS, The McGraw-Hill Companies, Fitch, Inc., and various subsidiaries of Fitch, Inc. (CalPERS subsequently released the Fitch entities from the case). The action relates to the plaintiff’s purchase of securities issued by three structured investment vehicles (“SIVs”) known as Cheyne Finance, Sigma Finance, and Stanfield Victoria Funding. The plaintiff’s complaint seeks unspecified compensatory damages arising from alleged losses in connection with investments that purportedly totaled approximately $1.3 billion; in subsequent court filings, the plaintiff claimed to have suffered “unrealized losses” of approximately $779 million. The central allegation against the defendants is that the credit ratings assigned to the securities issued by the SIVs were inaccurate and that the methodologies used by the rating agencies had no reasonable basis. In August 2009, the defendants removed the action to federal court, but the case was remanded to state court in November 2009 based on a finding that CalPERS is an “arm of the State.” In April 2010, in response to a motion by the defendants, the Superior Court dismissed the claim for negligent interference with prospective economic advantage but declined to dismiss the claim for negligent misrepresentation. In October 2010, the defendants filed a special motion to dismiss the remaining negligent misrepresentation claim under California’s “anti-SLAPP” statute, which limits the maintenance of lawsuits based on speech on matters of public interest. In January 2012, the Superior Court denied the anti-SLAPP motion, ruling that, although the ratings qualify as protected speech activity under California law, the plaintiff had provided sufficient evidence in support of its claims to proceed. The defendants appealed this decision to the California Court of Appeal, which affirmed the Superior Court’s rulings in May 2014, and in September 2014, the Supreme Court of California declined to review the Court of Appeal’s decision. The action has been returned to the Superior Court, and discovery has begun. In February 2015, CalPERS announced that it had reached a settlement with S&P, in which S&P agreed to pay CalPERS $125 million.

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On February 11, 2015, the Superior Court of Connecticut in Waterbury denied MIS’s motion to dismiss in a case brought by plaintiffs Pursuit Partners, LLC and Pursuit Investment Management, LLC. In November 2008, the plaintiffs had filed an amended complaint adding the Company as a defendant to an existing action, which was then pending in the Superior Court of Connecticut in Stamford against UBS AG, UBS Securities LLC, and a UBS employee (collectively, “UBS”). The Company was served in January 2009, and in October 2011, the Company’s rating agency subsidiary, MIS, was substituted for the Company as a defendant. The action arises out of UBS’s sale of five collateralized debt obligations (“CDOs”) to the plaintiffs, who purchased them on the secondary market in 2007 on behalf of two investment funds under their management. With respect to UBS, the plaintiffs allege, among other things, that UBS made material misrepresentations and omissions in pre-sale communications with the plaintiffs. With respect to MIS, the plaintiffs allege, among other things, that, prior to the plaintiffs’ purchases, MIS provided UBS with non-public information about potential downgrades of the ratings of the CDOs while maintaining inappropriate investment-grade ratings on the CDOs. As to all defendants, plaintiffs seek compensatory damages for alleged investment losses of approximately $44 million, as well as, among other things, attorney’s fees, costs, interest, and punitive damages. Plaintiffs’ initial complaint against the Company asserted claims for fraud, violation of the Connecticut Uniform Securities Act (“CUSA”), aiding and abetting fraud and civil theft by UBS, negligent/reckless conduct, unjust enrichment, and civil conspiracy. In March 2012, the court granted MIS’s motion to strike the claim for unjust enrichment but denied MIS’s motion to strike the other claims. In June 2012, after the close of discovery, MIS moved to dismiss all claims against it for lack of standing and also moved for summary judgment. In October 2012, the court granted the motion to dismiss, but in July 2014, the court granted the plaintiffs’ motion for reconsideration and reinstated the action. In October 2014, MIS filed a new motion to dismiss on jurisdictional grounds, which was denied on February 11, 2015. The court has not formally set a trial date but has advised the parties to be prepared for trial to begin in or about late August 2015. The motion for summary judgment, originally filed by MIS in June 2012, is still pending. If MIS does not prevail on the motion for summary judgment, the court has scheduled a trial to begin in August 2015.

For claims, litigation and proceedings and governmental investigations and inquires not related to income taxes, where it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated, the Company records liabilities in the consolidated financial statements and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In other instances, because of uncertainties related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if significant. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. In view of the inherent difficulty of predicting the outcome of litigation, regulatory, governmental investigations and inquiries, enforcement and similar matters and contingencies, particularly where the claimants seek large or indeterminate damages or where the parties assert novel legal theories or the matters involve a large number of parties, the Company cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also cannot predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition. However, in light of the large or indeterminate damages sought in some of them, the absence of similar court rulings on the theories of law asserted and uncertainties regarding apportionment of any potential damages, an estimate of the range of possible losses cannot be made at this time.

Legacy Tax Matters

Moody’s continues to have exposure to potential liabilities arising from Legacy Tax Matters. As of December 31, 2014, Moody’s has recorded liabilities for Legacy Tax Matters totaling $10.9 million. This includes liabilities and accrued interest due to New D&B arising from the 2000 Distribution Agreement. It is possible that the ultimate liability for Legacy Tax Matters could be greater than the liabilities recorded by the Company, which could result in additional charges that may be material to Moody’s future reported results, financial position and cash flows.

In the third quarter of 2014, a statute of limitations lapsed, resulting in a $6.4 million reduction of Legacy Tax liabilities and a $0.7 million reduction of related accrued interest expense.

NOTE 19 SEGMENT INFORMATION

The Company is organized into three operating segments: (i) MIS, (ii) MA and (iii) Copal Amba. The Copal Amba operating segment has been aggregated with the MA operating segment based on the fact that it has similar economic characteristics to MA. Accordingly, the Company reports in two reportable segments: MIS and MA.

In January 2014, the Company revised its operating segments to create the new Copal Amba operating segment. The new operating segment consists of all operations from Copal and the operations of Amba which was acquired in December 2013. The Copal Amba operating segment provides offshore research and analytic services to the global financial and corporate sectors. The Company has

MOODY’S  2014 10K 105

determined that the Copal Amba and MA operating segments have similar economic characteristics as set forth in ASC 280. As such, Copal Amba has been combined with MA to form the MA reportable segment and Copal Amba’s revenue is reported in the PS LOB.

In the fourth quarter of 2014, pursuant to the acquisition of ICRA, Moody’s realigned certain components of its reportable segments to better align with the current management structure of the Company. The effect of this realignment was to combine non-ratings ICRA operations with certain immaterial research and fixed income pricing operations in the Asia-Pacific region that were previously reported in the RD&A LOB of MA. All of these operations are managed by MIS and their revenue is now reported in the new MIS Other LOB. All operating expenses from these operations are reported in the MIS reportable segment. The impact of this realignment did not have a significant impact on previously reported results for the reportable segments and all prior year comparative periods have been restated to reflect this realignment.

The MIS segment now consists of five lines of business. The corporate finance, structured finance, financial institutions and public, project and infrastructure finance 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 the distribution of research and fixed income pricing services in the Asia-Pacific region as well as ICRA non-ratings revenue.

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 lines of business – RD&A, ERS and PS.

In December 2013, a subsidiary of the Company acquired Amba, a provider of investment research and quantitative analytics for global financial institutions. Amba is part of the MA reportable segment and its revenue in included in the PS LOB. In June 2014, a subsidiary of the Company acquired ICRA Limited, a leading provider of credit ratings and research in India. ICRA is part of the MIS reportable segment and its revenue is included in the respective MIS LOBs. In July 2014, a subsidiary of the Company acquired WebEquity, a leading provider of cloud-based loan origination solutions for financial institutions. WebEquity is part of the MA reportable segment and its revenue is included in the ERS LOB. In October 2014, the Company acquired Lewtan, a leading provider of analytical tools and data for the global structured finance market. Lewtan is part of the MA reportable segment and its revenue is included in the RD&A LOB.

Revenue for MIS and expenses for MA include an intersegment royalty charged to MA for the rights to use and distribute content, data and products developed by MIS. The royalty rate charged by MIS approximates the fair value of the aforementioned content, data and products and is generally based on comparable market transactions. Also, 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. These fees charged by MA are generally equal to the costs incurred by MA to produce these products and services. Additionally, overhead costs and corporate expenses of the Company which exclusively benefit only one segment, are fully charged to that segment. Overhead costs and corporate expenses of the Company which benefit both segments are allocated to each segment based on a revenue-split methodology. Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and information technology. “Eliminations” in the table below 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, Adjusted Operating Income and 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.

	Year Ended December 31,
	2014									2013
	MIS		MA		Eliminations			Consolidated		MIS		MA		Eliminations			Consolidated
Revenue	$	2,353.4	$	1,081.8	$	(100.9	)	$	3,334.3	$	2,150.2	$	913.3	$	(91.0	)	$	2,972.5
Operating, SG&A		1,076.2		824.3		(100.9	)		1,799.6		1,034.0		701.5		(91.0	)		1,644.5
Adjusted Operating Income		1,277.2		257.5		—			1,534.7		1,116.2		211.8		—			1,328.0
Depreciation and amortization		49.4		46.2		—			95.6		46.7		46.7		—			93.4
Operating income	$	1,227.8	$	211.3	$	—		$	1,439.1	$	1,069.5	$	165.1	$	—		$	1,234.6

106 MOODY’S  2014 10K

	Year Ended December 31,
	2012
	MIS		MA		Eliminations			Consolidated
Revenue	$	1,968.8	$	844.9	$	(83.4	)	$	2,730.3
Operating, SG&A		976.3		654.3		(83.4	)		1,547.2
Adjusted Operating Income		992.5		190.6		—			1,183.1
Depreciation and amortization		44.4		49.1		—			93.5
Goodwill impairment charge		—		12.2		—			12.2
Operating income	$	948.1	$	129.3	$	—		$	1,077.4

MIS AND MA REVENUE BY LINE OF BUSINESS

The tables below present revenue by LOB:

	Year Ended December 31,
	2014			2013			2012
MIS:
Corporate finance (CFG)	$	1,109.3		$	996.8		$	857.6
Structured finance (SFG)		426.5			382.5			381.0
Financial institutions (FIG)		354.7			338.8			325.5
Public, project and infrastructure finance (PPIF)		357.3			341.3			322.7
Total ratings revenue		2,247.8			2,059.4			1,886.8
MIS Other		18.0			12.2			10.5
Total external revenue		2,265.8			2,071.6			1,897.3
Intersegment royalty		87.6			78.6			71.5
Total		2,353.4			2,150.2			1,968.8
MA:
Research, data and analytics (RD&A)		571.8			519.8			482.7
Enterprise risk solutions (ERS)		328.5			262.5			242.6
Professional services (PS)		168.2			118.6			107.7
Total external revenue		1,068.5			900.9			833.0
Intersegment revenue		13.3			12.4			11.9
Total		1,081.8			913.3			844.9
Eliminations		(100.9	)		(91.0	)		(83.4	)
Total MCO	$	3,334.3		$	2,972.5		$	2,730.3

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CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA

	Year Ended December 31,
	2014		2013		2012
Revenue:
U.S.	$	1,814.5	$	1,626.5	$	1,472.4
International:
EMEA		952.8		862.8		800.2
Asia-Pacific		338.3		286.1		266.5
Americas		228.7		197.1		191.2
Total International		1,519.8		1,346.0		1,257.9
Total	$	3,334.3	$	2,972.5	$	2,730.3
Long-lived assets at December 31:
United States	$	657.6	$	552.3	$	498.4
International		1,011.3		613.2		672.3
Total	$	1,668.9	$	1,165.5	$	1,170.7

NOTE 20 VALUATION AND QUALIFYING ACCOUNTS

Accounts receivable allowances primarily represent adjustments to customer billings that are estimated when the related revenue is recognized and also represents an estimate for uncollectible accounts. The valuation allowance on deferred tax assets relates to foreign net operating losses for which realization is uncertain. Below is a summary of activity for both allowances:

Year Ended December 31,	Balance at Beginning of the Year			Additions			Write-offs and Adjustments		Balance at End of the Year
2014
Accounts receivable allowance	$	(28.9	)	$	(54.9	)	$	54.4	$	(29.4	)
Deferred tax assets – valuation allowance	$	(8.4	)	$	(0.1	)	$	1.6	$	(6.9	)
2013
Accounts receivable allowance	$	(29.1	)	$	(44.5	)	$	44.7	$	(28.9	)
Deferred tax assets – valuation allowance	$	(15.2	)	$	(0.1	)	$	6.9	$	(8.4	)
2012
Accounts receivable allowance	$	(28.0	)	$	(44.3	)	$	43.2	$	(29.1	)
Deferred tax assets – valuation allowance	$	(13.9	)	$	(3.1	)	$	1.8	$	(15.2	)

NOTE 21 OTHER NON-OPERATING INCOME (EXPENSE), NET

The following table summarizes the components of other non-operating income (expense), net as presented in the consolidated statements of operations:

	Year Ended December 31,
	2014			2013			2012
FX gain(loss) (a)	$	20.3		$	—		$	(5.9	)
Legacy Tax (b)		6.4			19.2			12.8
Joint venture income		9.6			8.8			4.8
Other		(0.4	)		(1.5	)		(1.3	)
Total	$	35.9		$	26.5		$	10.4

(a) The FX gain in 2014 reflects the strengthening of the U.S. dollar to the euro and GBP for certain U.S. dollar denominated assets held by the Company’s international subsidiaries.

(b) The 2014 amount relate to the expiration of a statute of limitations for a Legacy Tax Matter. The 2013 amount represents a reversal relating to favorable resolution of a Legacy Tax Matter for the 2007-2009 tax years. The 2012 amount represents a reversal of a liability relating to the favorable resolution of a Legacy Tax Matter for the 2005 and 2006 tax years.

108 MOODY’S  2014 10K

NOTE 22 RELATED PARTY TRANSACTIONS

Moody’s Corporation made grants of $4 million, $8 million and $10 million to The Moody’s Foundation during the years ended December 31, 2014, 2013 and 2012, respectively. The Foundation carries out philanthropic activities primarily in the areas of education and health and human services. Certain members of Moody’s senior management are on the board of the Foundation.

NOTE 23 QUARTERLY FINANCIAL DATA (UNAUDITED)

	Three Months Ended
(amounts in millions, except EPS)	March 31		June 30		September 30		December 31
2014
Revenue	$	767.2	$	873.5	$	816.1	$	877.5
Operating Income	$	333.0	$	411.7	$	349.7	$	344.7
Net income attributable to Moody’s	$	218.0	$	319.2	$	215.2	$	236.3
EPS:
Basic	$	1.02	$	1.51	$	1.02	$	1.14
Diluted	$	1.00	$	1.48	$	1.00	$	1.12
2013
Revenue	$	731.8	$	756.0	$	705.5	$	779.2
Operating income	$	280.4	$	350.8	$	291.5	$	311.9
Net income attributable to Moody’s	$	188.4	$	225.5	$	183.9	$	206.7
EPS:
Basic	$	0.84	$	1.01	$	0.84	$	0.96
Diluted	$	0.83	$	1.00	$	0.83	$	0.94

Basic and diluted EPS are computed for each of the periods presented. The number of weighted average shares outstanding changes as common shares are issued pursuant to employee stock-based compensation plans and for other purposes or as shares are repurchased. Therefore, the sum of basic and diluted EPS for each of the four quarters may not equal the full year basic and diluted EPS.

Additionally, the quarterly financial data includes the ICRA Gain in the three months ended June 30, 2014. There were benefits of $6.4 million and $21.3 million to net income related to the resolution of Legacy Tax Matters for the three months ended September 30, 2014 and December 31, 2013, respectively. There was a $0.14 share charge in the first quarter of 2013 related to the settlement of litigation matters more fully discussed in Note 18.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company carried out an evaluation, as required by Rule 13a-15(b) under the Exchange Act, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act, as of the end of the period covered by this report (the “Evaluation Date”). Based on such evaluation, such officers have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the times periods specified in the communication to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes In Internal Control Over Financial Reporting

Information in response to this Item is set forth under the caption “Management’s Report on Internal Control Over Financial Reporting”, in Part II, Item 8 of this annual report on Form 10-K.

In addition, the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, has determined that there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, these internal controls over financial reporting during the period covered by this report.

ITEM 9B. OTHER INFORMATION

Not applicable.

110 MOODY’S  2014 10K

PART III

Except for the information relating to the executive officers of the Company set forth in Part I of this annual report on Form 10-K, the information called for by Items 10-13 is contained in the Company’s definitive proxy statement for use in connection with its annual meeting of stockholders scheduled to be held on April 14, 2015, and is incorporated herein by reference.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 11. EXECUTIVE COMPENSATION

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The Audit Committee has established a policy setting forth the requirements for the pre-approval of audit and permissible non-audit services to be provided by the Company’s independent registered public accounting firm. Under the policy, the Audit Committee pre-approves the annual audit engagement terms and fees, as well as any other audit services and specified categories of non-audit services, subject to certain pre-approved fee levels. In addition, pursuant to the policy, the Audit Committee authorized its chair to pre-approve other audit and permissible non-audit services in 2014 up to $50,000 per engagement and a maximum of $250,000 per year. The policy requires that the Audit Committee chair report any pre-approval decisions to the full Audit Committee at its next scheduled meeting. For the year ended December 31, 2014, the Audit Committee approved all of the services provided by the Company’s independent registered public accounting firm, which are described below.

AUDIT FEES

The aggregate fees for professional services rendered for (i) the integrated audit of the Company’s annual financial statements for the years ended December 31, 2014 and 2013, (ii) the review of the financial statements included in the Company’s Reports on Forms 10-Q and 8-K, and (iii) statutory audits of subsidiaries, were approximately $3.0 million and $2.8 million in 2014 and 2013, respectively. These fees included amounts accrued but not billed of $2.2 million and $1.9 million in the years ended December 31, 2014 and 2013, respectively.

AUDIT-RELATED FEES

The aggregate fees billed for audit-related services rendered to the Company were approximately $0.1 million in both of the years ended December 31, 2014 and 2013. Such services included employee benefit plan audits.

TAX FEES

The aggregate fees billed for professional services rendered for tax services rendered by the auditors for the years ended December 31, 2014 and 2013 were approximately $0 and $0, respectively.

ALL OTHER FEES

The aggregate fees billed for all other services rendered to the Company by KPMG LLP for the years ended December 31, 2014 and 2013 were approximately $0 and $0, respectively.

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PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

LIST OF DOCUMENTS FILED AS PART OF THIS REPORT.

(1) Financial Statements.

See Index to Financial Statements on page 56, in Part II. Item 8 of this Form 10-K.

(2) Financial Statement Schedules.

None.

(3) Exhibits.

See Index to Exhibits on pages 114-117 of this Form 10-K.

112 MOODY’S  2014 10K

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MOODY’S CORPORATION

(Registrant)

By: /s/ RAYMOND W. MCDANIEL, JR.

Raymond W. McDaniel, Jr.

President and Chief Executive Officer

Date: February 25, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.

/s/ RAYMOND W. MCDANIEL, JR.

Raymond W. McDaniel, Jr.,

President and Chief Executive Officer

(principal executive officer)

/s/ LINDA S. HUBER

Linda S. Huber,

Executive Vice President and Chief Financial Officer

(principal financial officer)

/s/ JOSEPH MCCABE

Joseph McCabe,

Senior Vice President – Corporate Controller (principal accounting officer)

/s/ BASIL L. ANDERSON

Basil L. Anderson,

Director

/s/ JORGE A. BERMUDEZ

Jorge A. Bermudez,

Director

/s/ DARRELL DUFFIE

Darrell Duffie,

Director

/s/ KATHRYN M. HILL

Kathryn M. Hill,

Director

/s/ EWALD KIST

Ewald Kist,

Director

/s/ HENRY A. MCKINNELL, JR.

Henry A. McKinnell, Jr. Ph.D.,

Chairman

/s/ LESLIE F. SEIDMAN

Leslie F. Seidman,

Director

/s/ JOHN K. WULFF

John K. Wulff,

Director

Date: February 25, 2015

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INDEX TO EXHIBITS

S-K EXHIBIT NUMBER
3	Articles Of Incorporation And By-laws
	.1	Restated Certificate of Incorporation of the Registrant, effective April 17, 2013 (incorporated by reference to Exhibit 3.2 to the Report on Form 8-K of the Registrant, file number 1-14037, filed April 22, 2013).
	.2	Amended and Restated By-laws of Moody’s Corporation, effective April 17, 2013 (incorporated by reference to Exhibit 3.2 to the Report on Form 8-K of the Registrant, file number 1-14037, filed April 22, 2013).
4	Instruments Defining The Rights Of Security Holders, Including Indentures
	.1	Specimen Common Stock certificate (incorporated by reference to Exhibit 4.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed October 4, 2000)
	.3	Note Purchase Agreement, dated as of September 7, 2007, by and among Moody’s Corporation and the note purchasers party thereto, including the form of the 6.06% Series 2007-1 Senior Unsecured Note due 2017 (incorporated by reference to Exhibit 4.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed September 13, 2007)
	.4	Five-Year Credit Agreement dated as of April 18, 2012, among Moody’s Corporation, the Borrowing Subsidiaries Party Hereto, the Lenders Party Thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A. and Citibank, N.A. as Co-Syndication Agents, and RBS Citizens, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Co-Documentation Agents (incorporated by reference to Exhibit 4.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed April 24, 2012)
	.5	Five-Year Credit Agreement, dated as of May 7, 2008, with JPMorgan Chase Bank, N.A., as administrative agent, Bank of China and Fifth Third Bank, as co-syndication agents, Barclays Commercial Bank, as documentation agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Commerce Bank, N.A., as co-agents, J.P. Morgan Securities, Inc., as lead arranger and bookrunner, and the lenders party thereto (incorporated by reference to Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed May 8, 2008)
	.6	Indenture, dated as of August 19, 2010, between Moody’s Corporation and Wells Fargo, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed August 19, 2010)
	.7	Supplemental Indenture, dated as of August 19, 2010, between Moody’s Corporation and Wells Fargo, National Association, as trustee, including the form of the 5.50% Senior Notes due 2020 (incorporated by reference to Exhibit 4.2 to the Report on Form 8-K of the Registrant, file number 1-14037, filed August 19, 2010)
	.8	Second Supplemental Indenture, dated as of August 20, 2012, between Moody’s Corporation and Wells Fargo, National Association, as trustee, including the form of the 4.50% Senior Notes due 2022 (incorporated by reference to Exhibit 4.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed August 20, 2012)
	.9	Third Supplemental Indenture, dated as of August 12, 2013, between Moody’s Corporation and Wells Fargo, National Association, as trustee, including the form of the 4.875% Senior Notes due 2023 (incorporated by reference to Exhibit 4.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed August 20, 2013)
10	Material Contracts
	.1	Distribution Agreement, dated as of September 30, 2000, between the Registrant and The Dun & Bradstreet Corporation (f.k.a. The New D&B Corporation) (incorporated by reference to Exhibit 10.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed October 4, 2000)
	.2	Tax Allocation Agreement, dated as of September 30, 2000, between the Registrant and The Dun & Bradstreet Corporation (f.k.a. The New D&B Corporation) (incorporated by reference to Exhibit 10.2 to the Report on Form 8-K of the Registrant, file number 1-14037, filed October 4, 2000)
	.3†	The Moody’s Corporation Nonfunded Deferred Compensation Plan for Non-Employee Directors (as amended December 16, 2008) (incorporated by reference to Exhibit 10.6 to the Registrant’s Annual Report on Form 10-K, file number 1-14037, filed February 27, 2009)

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S-K EXHIBIT NUMBER
10	.4†	1998 Moody’s Corporation Non-Employee Directors’ Stock Incentive Plan (Adopted September 8, 2000; Amended and Restated as of December 11, 2012) (incorporated by reference to Exhibit 10.2 to the Registrant’s Annual Report on Form 8-K, file number 1-14037, filed April 22, 2013)
	.5†	1998 Moody’s Corporation Key Employees’ Stock Incentive Plan (incorporated by reference to Exhibit 10.16 to the Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed November 14, 2000)
	.6	Distribution Agreement, dated as of June 30, 1998, between R.H. Donnelley Corporation (f.k.a. The Dun & Bradstreet Corporation) and the Registrant (f.k.a. The New Dun & Bradstreet Corporation) (incorporated by reference to Exhibit 10.1 to Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed August 14, 1998)
	.7†	Moody’s Corporation Deferred Compensation Plan, effective as of January 1, 2008 (incorporated by reference to Exhibit 10.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed October 26, 2007)
	.8	Form of Separation Agreement and General Release used by the Registrant with its Career Transition Plan. (incorporated by reference to Exhibit 99.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed November 20, 2007)
	.9†	Amended and Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan (as amended, December 11, 2012) (incorporated by reference to Exhibit 10.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed April 22, 2013)
	.10	Tax Allocation Agreement, dated as of June 30, 1998, between R.H. Donnelley Corporation (f.k.a. The Dun & Bradstreet Corporation) and the Registrant (f.k.a. The New Dun & Bradstreet Corporation) (incorporated by reference to Exhibit 10.2 to Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed August 14, 1998)
	.11	Distribution Agreement, dated as of October 28, 1996, among R.H. Donnelley Corporation (f.k.a. The Dun & Bradstreet Corporation), Cognizant Corporation and ACNielsen Corporation (incorporated by reference to Exhibit 10(x) to R.H. Donnelley Corporation’s (f.k.a. The Dun & Bradstreet Corporation) Annual Report on Form 10-K, file number 1-7155, filed March 27, 1997)
	.12	Tax Allocation Agreement, dated as of October 28, 1996, among R.H. Donnelley Corporation (f.k.a. The Dun & Bradstreet Corporation), Cognizant Corporation and ACNielsen Corporation (incorporated by reference to Exhibit 10(y) to R.H. Donnelley Corporation’s (f.k.a. The Dun & Bradstreet Corporation) Annual Report on Form 10-K, file number 1-7155, filed March 27, 1997)
	.13†	Form of Employee Non-Qualified Stock Option and Restricted Stock Grant Agreement for the Amended and Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed November 3, 2004)
	.14†	Form of Non-Employee Director Restricted Stock Grant Agreement for the 1998 Moody’s Corporation Non-Employee Directors’ Stock Incentive Plan (as amended on April 23, 2001) (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed November 3, 2004)
	.15†*	2004 Moody’s Corporation Covered Employee Cash Incentive Plan (as amended on February 10, 2015)
	.16†	Description of Bonus Terms under the 2004 Moody’s Corporation Covered Employee Cash Incentive Plan (as amended, December 15, 2009) (incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed November 3, 2004)
	.17†	Director Compensation Arrangements (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed May 2, 2006)
	.18	Agreement of Lease, dated September 7, 2006, between Moody’s Corporation and 7 World Trade Center, LLC (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed November 2, 2006)
	.19	Agreement for Lease, dated February 6, 2008, among CWCB Properties (DS7) Limited, CWCB Properties (DS7) Limited and CW Leasing DS7F Limited, Canary Wharf Holdings Limited, Moody’s Investors Service Limited, and Moody’s Corporation (incorporated by reference to Exhibit 10.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed February 12, 2008)

MOODY’S  2014 10K 115

S-K EXHIBIT NUMBER
10	.20	Agreement for Lease, dated February 6, 2008, among Canary Wharf (Car Parks) Limited, Canary Wharf Holdings Limited, Canary Wharf Management Limited, Moody’s Investors Service Limited, and Moody’s Corporation (incorporated by reference to Exhibit 10.2 to the Report on Form 8-K of the Registrant, file number 1-14037, filed February 12, 2008)
	.21	Storage Agreement for Lease dated February 6, 2008 among Canary Wharf (Car Parks) Limited, Canary Wharf Holdings Limited, Canary Wharf Management Limited, Moody’s Investors Service Limited, and Moody’s Corporation (incorporated by reference to Exhibit 10.2 to the Report on Form 8-K of the Registrant file number 1-14037, filed February 12, 2008)
	.22	Moody’s Corporation 1999 Employee Stock Purchase Plan (as amended and restated December 15, 2008) (formerly, The Dun & Bradstreet Corporation 1999 Employee Stock Purchase Plan) (incorporated by reference to Exhibit 10.38 to the Registrant’s Annual Report on Form 10-K, file number 1-14037, filed February 27, 2009)
	.23†	Supplemental Executive Benefit Plan of Moody’s Corporation, amended and restated as of January 1, 2008 (incorporated by reference to Exhibit 10.38 to the Registrant’s Annual Report on Form 10-K, file number 1-14037, filed February, 29, 2008)
	.24†	Pension Benefit Equalization Plan of Moody’s Corporation, amended and restated as of January 1, 2008 (incorporated by reference to Exhibit 10.39 to the Registrant’s Annual Report on Form 10-K, file number 1-14037, filed February, 29, 2008)
	.25†	Moody’s Corporation Retirement Account, amended and restated as of December 18, 2013 (incorporated by reference to Exhibit 10.25 to the Registrant’s Annual Report on Form 10-K, file number 1-14037, filed February 27, 2014)
	.26†*	Profit Participation Plan of Moody’s Corporation (amended and restated as of January 1, 2014)
	.27†	Moody’s Corporation Career Transition Plan (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed May 8, 2008)
	.28†	First Amendment to the Moody’s Corporation Career Transition Plan (incorporated by reference to Exhibit 10.42 to the Registrant’s Annual Report on Form 10-K, file number 1-14037, filed February 26, 2013)
	.29†	Second Amendment to the Moody’s Career Transition Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed July 31, 2014)
	.30†*	Third Amendment to the Moody’s Career Transition Plan.
	.31†	Moody’s Corporation Cafeteria Plan, effective January 1, 2008 (incorporated by reference to Exhibit 10.46 to the Registrant’s Annual Report on Form 10-K, file number 1-14037, filed February 27, 2009)
	.32†	First Amendment to the Moody’s Corporation Cafeteria Plan (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on form 10-Q, file number 1-14037, filed July 31, 2014)
	.33†*	Second Amendment to the Moody’s Corporation Cafeteria Plan
	.34†	Separation Agreement and general release between the Company and Brian M. Clarkson, dated May 7, 2008 (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q, file number 1-14037, filed August 4, 2008)
	.35†	Moody’s Corporation Change in Control Severance Plan (incorporated by reference to Exhibit 10.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed December 20, 2010)
	.36†	Form of Performance Share Award Letter for the Amended and Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan (incorporated by reference to Exhibit 10.48 to the Registrant’s Annual Report on Form 10-K, file number 1-14037, filed February 28, 2011)
12*		Statement of Computation of Ratios of Earnings to Fixed Charges
21*		SUBSIDIARIES OF THE REGISTRANT List of Active Subsidiaries as of December 31, 2014
23		CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
	.1*	Consent of KPMG LLP
31		CERTIFICATIONS 302 OF THE SARBANES-OXLEY ACT OF 2002
	.1*	Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	.2*	Chief Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

116 MOODY’S  2014 10K

S-K EXHIBIT NUMBER
32		CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
	.1*	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (The Company has furnished this certification and does not intend for it to be considered filed under the Securities Exchange Act of 1934 or incorporated by reference into future filings under the Securities Act of 1933 or the Securities Exchange Act of 1934)
	.2*	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (The Company has furnished this certification and does not intend for it to be considered filed under the Securities Exchange Act of 1934 or incorporated by reference into future filings under the Securities Act of 1933 or the Securities Exchange Act of 1934)
101	DEF*	XBRL Definitions Linkbase Document
101	INS*	XBRL Instance Document
101	SCH*	XBRL Taxonomy Extension Schema Document
101	CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101	LAB*	XBRL Taxonomy Extension Labels Linkbase Document
101	PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

† Management contract of compensatory plan or arrangement

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EX-10.15

EXHIBIT 10.15

2004 MOODY’S CORPORATION

COVERED EMPLOYEE CASH INCENTIVE PLAN (as amended, February 10, 2015)

1. Purpose of the Plan

The purpose of the Plan is to advance the interests of the Company and its stockholders by providing incentives in the form of periodic cash bonus awards to certain management employees of the Company and its Subsidiaries, thereby motivating such employees to attain performance goals established pursuant to the Plan.

2. Definitions

The following capitalized terms used in the Plan have the respective meanings set forth in this Section:

(a) Act: The Securities Exchange Act of 1934, as amended, or any successor thereto.

(b) Award: A periodic cash bonus award granted pursuant to the Plan.

(c) Beneficial Owner: As such term is defined in Rule 13d-3 under the Act (or any successor rule thereto).

(d) Board: The Board of Directors of the Company.

(e) Change in Control: The occurrence of a change in ownership of Moody’s Corporation, a change in the effective control of Moody’s Corporation, or a change in the ownership of a substantial portion of the assets of Moody’s Corporation. For this purpose, a change in the ownership of Moody’s Corporation occurs on the date that any one person, or more than one person acting as a group (as determined pursuant to the regulations under Section 409A), acquires ownership of stock of Moody’s Corporation that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of Moody’s Corporation. A change in effective control of Moody’s Corporation occurs on either of the following dates: (1) the date any one person, or more than one person acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of Moody’s Corporation possessing 50 percent or more of the total voting power of the stock of Moody’s Corporation, or (2) the date a majority of members of the Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election. A change in the ownership of a substantial portion of the assets of Moody’s Corporation occurs on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from Moody’s Corporation that have a total gross fair market value (as determined pursuant to the regulations under Section 409A) equal to or more than 40 percent of the total gross fair market value of all of the assets of Moody’s Corporation immediately before such acquisition or acquisitions.

(f) Code: The Internal Revenue Code of 1986, as amended, or any successor thereto.

(g) Committee: The Governance and Compensation Committee of the Board, or any successor thereto or any other committee designated by the Board to assume the obligations of the Committee hereunder.

(h) Company: Moody’s Corporation, a Delaware corporation.

(i) Covered Employee: An employee who is, or who is anticipated to become, a covered employee, as such term is defined in Section 162(m) of the Code (or any successor section thereto) and the Treasury Regulations promulgated thereunder.

(j) Effective Date: The date on which the Plan takes effect, as defined pursuant to Section 13 of the Plan.

(k) Participant: A Covered Employee of the Company or any of its Subsidiaries who is selected by the Committee to participate in the Plan pursuant to Section 4 of the Plan.

(l) Performance Period: The calendar year or any other period that the Committee, in its sole discretion, may determine.

(m) Person: As such term is used for purposes of Section 13(d) or 14(d) of the Act or any successor sections thereto.

(n) Plan: The 2004 Moody’s Corporation Covered Employee Cash Incentive Plan, as amended and restated.

(o) Shares: Shares of common stock, par value $0.01 per Share, of the Company.

(p) Subsidiary: A subsidiary corporation, as defined in Section 424(f) of the Code (or any successor section thereto).

3. Administration

The Plan shall be administered by the Committee or such other persons designated by the Board. The Committee may delegate its duties and powers in whole or in part to any subcommittee thereof consisting solely of at least two individuals who are each “non-employee directors” within the meaning of Rule 16b-3 of the Act (or any successor rule thereto) and “outside directors” within the meaning of Section 162(m) of the Code (or any successor section thereto) and the Treasury Regulations promulgated thereunder. The Committee shall have the authority to select the Covered Employees to be granted Awards under the Plan, to determine the size and

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terms of an Award (subject to the limitations imposed on Awards in Section 5 below), to modify the terms of any Award that has been granted (except for any modification that would increase the amount of the Award), to determine the time when Awards will be made and the Performance Period to which they relate, to establish performance objectives in respect of such Performance Periods and to certify that such performance objectives were attained; provided, however, that any such action shall be consistent with the applicable provisions of Section 162(m) of the Code. The Committee is authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan; provided, however, that any action permitted to be taken by the Committee may be taken by the Board, in its discretion, to the extent that any such action taken by the Board is consistent with the applicable provisions of Section 162(m) of the Code. The Committee may correct any defect or omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or desirable. Any decision of the Committee in the interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned. Determinations made by the Committee under the Plan need not be uniform and may be made selectively among Participants, whether or not such Participants are similarly situated. The Committee shall have the right to deduct from any payment made under the Plan any federal. state, local or foreign income or other taxes required by law to be withheld with respect to such payment. To the extent consistent with the applicable provisions of Sections 162(m) of the Code, the Committee may delegate to one or more employees of the Company or any of its Subsidiaries the authority to take actions on its behalf pursuant to the Plan.

4. Eligibility and Participation

The Committee shall designate those persons who shall be Participants for each Performance Period. Participants shall he selected from among the Covered Employees of the Company and any of its Subsidiaries who are in a position to have a material impact on the results of the operations of the Company or of one or more of its Subsidiaries.

5. Awards

(a) Performance Goals. A Participant’s Award shall be determined based on the attainment of one or more pre-established, objective performance goals established in writing by the Committee, for a Performance Period established by the Committee, (i) at a time when the outcome for the Performance Period is substantially uncertain and (ii) not later than 90 days after the commencement of the Performance Period to which the performance goal relates, but in no event after 25 percent of the relevant Performance Period has elapsed. The performance goals shall be based upon one or more or the following criteria: (i) earnings before or after taxes (including earnings before interest, taxes, depreciation and amortization); (ii) net income; (iii) operating income; (iv) earnings per Share; (v) book value per Share; (vi) return on stockholders’ equity; (vii) expense management; (viii) return on investment before or after the cost of capital; (ix) improvements in capital structure; (x) profitability of an identifiable business unit or product; (xi) maintenance or improvement of profit margins; (xii) stock price:; (xiii) market share; (xiv) revenues or sales; (xv) costs; (xvi) cash flow; (xvii) working capital; (xviii) changes in net assets (whether or not multiplied by a constant percentage intended to represent the cost of capital); (xix) return on assets; (xx) accuracy, stability, quality or performance of ratings; and (xxi) customer or investor satisfaction or value survey results. The foregoing criteria may relate to the Company, one or more of its Subsidiaries or one or more of its divisions, units, partnerships, joint ventures or minority investments, product lines or products or any combination of the foregoing, and may be applied on an absolute basis and/or be relative to one or more peer group companies or indices, or any combination thereof, all as the Committee shall determine. In addition, to the extent consistent with Section 162(m) of the Code, if so determined by the Committee at the time the applicable performance goal is adopted, the Committee may appropriately adjust any evaluation of performance under the performance goal to (A) eliminate the effects of charges for restructurings, discontinued operations, extraordinary items and all items of gain, loss or expense determined to be extraordinary or unusual in nature or related to the acquisition or disposal of a segment of a business or related to a change in accounting principle all as determined in accordance with standards established by the Accounting Principles Board, as well as the cumulative effect of accounting changes, in each case as determined in accordance with generally accepted accounting principles or identified in the Company’s financial statements or notes to the financial statements, and (B) exclude any of the following events that occurs during a performance period: (i) asset write-downs, (ii) litigation, claims, judgments or settlements, (iii) the effect of changes in tax law or other such laws or provisions affecting reported results, (iv) accruals for reorganization and restructuring programs and (v) accruals of any amounts for payment under this Plan or any other compensation arrangement maintained by the Company or any affiliate. The maximum amount of an Award to any Participant with respect to a performance period of one calendar year or less shall be $5,000,000. The maximum amount of an Award to any Participant with respect to a multi-year performance period shall be the product of $5,000,000 multiplied by the number of years in the performance period.

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(b) Payment. The Committee shall determine whether, with respect to a Performance Period, the applicable performance goals have been met with respect to a given Participant and, if they have, to so certify in writing and ascertain the amount of the applicable Award. No Awards will be paid for such Performance Period until such certification is made by the Committee. The amount of the Award actually paid to a given Participant may be less than the amount determined by the applicable performance goal formula (including zero), at the discretion of the Committee. The amount of the Award determined by the Committee for a Performance Period shall be paid to the Participant at such time as determined by the Committee in its sole discretion after the end of such Performance Period.

(c) Compliance with Section 162(m) of the Code. The provisions of this Section 5 shall be administered and interpreted in accordance with Section 162(m) of the Code and the Treasury Regulations promulgated thereunder to ensure the deductibility by the Company or its Subsidiaries of the payment of Awards: provided, however. that the Committee may, in its sole discretion, administer the Plan in violation of Section 162(m) of the Code.

(d) Termination of Employment. Upon a termination of employment by reason of death, disability or retirement, a Participant shall have such rights in any Award theretofore granted to him, if any, as may be prescribed by the Award agreement or in another Company plan or individual agreement. Upon a termination of employment for any reason other than death, disability or retirement prior to the end of any applicable performance period, a Participant shall forfeit all rights in and to any Award theretofore granted to him, unless the Committee, in its sole discretion, shall determine otherwise.

6. Amendments or Termination

The Board or the Committee may amend, alter or discontinue the Plan, but no amendment, alteration or discontinuation shall be made which would impair any of the rights or obligations under any Award theretofore granted to a Participant under the Plan without such Participant’s consent; provided, however, that the Board or the Committee may amend the Plan in such manner as it deems necessary to permit the granting of Awards meeting the requirements of Section 162(m) of the Code or other applicable laws. Notwithstanding anything to the contrary herein, the Board may not amend, alter or discontinue the provisions relating to Section 10(b) of the Plan after the occurrence of a Change in Control.

7. No Right to Employment

Neither the Plan nor any action taken hereunder shall be construed as giving any Participant or other person any right to continue to be employed by or perform services for the Company or any Subsidiary, and the right to terminate the employment of or performance of services by any Participant at any time and for any reason is specifically reserved to the Company and its Subsidiaries.

8. Nontransferability of Awards

An award shall not be transferable or assignable by the Participant otherwise than by will or by the laws of descent and distribution.

9. Reduction of Awards

Notwithstanding anything to the contrary herein, the Committee, in its sole discretion (but subject to applicable law), may reduce any amounts payable to any Participant hereunder in order to satisfy any liabilities owed to the Company or any of its Subsidiaries by the Participant.

10. Adjustments Upon Certain Events

(a) Generally. In the event of any change in the outstanding Shares by reason of any Share dividend or split, reorganization, recapitalization, Merger, consolidation, spin-off, combination or exchange of Shares or other corporate exchange, or any distribution to stockholders of Shares other than regular cash dividends, the Committee in its sole discretion and without liability to any person may make such substitution or adjustment, if any, as it deems to be equitable, as to any affected terms of outstanding Awards.

(b) Change in Control. In the event that (1) a Participant’s employment is actually or constructively terminated during a given Performance Period (the “Affected Performance Period”) and (ii) a Change in Control shall have occurred within the 365 days immediately preceding the date of such termination, then such Participant shall receive, promptly after the date of such termination. payment pursuant to his or her Award for the Affected Performance Period as if the performance goals for such Performance Period had been achieved at 100%.

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11. Miscellaneous Provisions

The Company is the sponsor and legal obligor under the Plan and shall make all payments hereunder, other than any payments to be made by any of the Subsidiaries (in which case payment shall be made by such Subsidiary, as appropriate).

The company shall not be required to establish any special or separate fund or to make any other segregation of assets to ensure the payment of any amounts under the Plan, and the Participants’ rights to the payment hereunder shall be no greater than the rights of the Company’s (or Subsidiary’s) unsecured creditors. All expenses involved in administering the Plan shall be borne by the Company.

12. Governing Law

The interpretation, performance and enforcement of this Plan and any disputes or controversies arising with respect to the transactions contemplated herein, shall be governed by the laws of the State of Delaware, irrespective of Delaware’s choice of law principles that would apply the law of any other jurisdiction.

13. Effective Date

The Plan as amended shall be effective as of February 10, 2015.

MOODY’S  2014 10K 121

EX-10.26

EXHIBIT 10.26

PROFIT PARTICIPATION PLAN

OF

MOODY’S CORPORATION

(amended and restated as of January 1, 2014)

Table of Contents

			Page
SECTION I Definitions				126
	1.1.	Account		126
	1.2.	Actual Deferral Percentage		126
	1.3.	Affiliated Employer		126
	1.4.	Beneficiary		126
	1.5.	Board of Directors		126
	1.6.	Change in Control		126
	1.7.	Code		126
	1.8.	Company		126
	1.9.	Company Stock		126
	1.10.	Compensation		126
	1.11.	Contribution Percentage		127
	1.12.	Corporation		127
	1.13.	Earnings Per Share		127
	1.14.	Eligible Employee		127
	1.15.	Employee		127
	1.16.	Employer		127
	1.17.	ERISA		127
	1.18.	ESOP Fund		127
	1.19.	Excess Aggregate Contributions		127
	1.20.	Fund		127
	1.21.	Increase in Earnings Per Share		127
	1.22.	Investment Manager		128
	1.23.	Investment Plan After-Tax Contributions		128
	1.24.	Investment Plan Before-Tax Contributions		128
	1.25.	Investment Plan Contributions		128
	1.26.	Management Benefits and Compensation Committee		128
	1.27.	Matching Contributions of the Company		128
	1.28.	Member		128
	1.29.	Normal Retirement Age		128
	1.30.	Participating After-Tax Contributions		128
	1.31.	Participating Before-Tax Contributions		128
	1.32.	Participating Contributions		128
	1.33.	Plan		128
	1.34.	Plan Year		128
	1.35.	Post-2007 Member		128
	1.36.	Profit Sharing Contribution		128
	1.37.	Reemployment Commencement Date		128
	1.38.	Retirement		128
	1.39.	Retirement Contributions		128
	1.40.	Rollover Contributions		128

MOODY’S  2014 10K 123

			Page
	1.41.	Roth Contributions		128
	1.42.	Service		129
	1.43.	Spouse		130
	1.44.	Threshold		130
	1.45.	Trustee		130
	1.46.	Trust Fund		130
	1.47.	Valuation Date		130
	1.48.	Vesting Service		130
	1.49.	Year of Eligibility Service		130
SECTION II Eligibility				130
SECTION III Contributions of Members				130
SECTION IV Company Contributions and Allocation Among Members				132
SECTION V The Trust Fund				134
SECTION VI Investment Elections				135
SECTION VII Voting and Tendering of Moody’s Corporation Common Stock; Dividends				136
SECTION VIII Vesting				137
SECTION IX Distribution of Benefits				137
SECTION X Administration of Plan and Management of Plan Assets				145
SECTION XI Amendment or Termination				146
SECTION XII Miscellaneous				146
SECTION XIII Determination of Benefits and Benefit Claims Procedures				147
SECTION XIV Limitations on Benefits				148
SECTION XV Mergers, Consolidations and Assets or Liability Transfers				149
SECTION XVI Top-Heavy Contingency				150

124 MOODY’S  2014 10K

PROFIT PARTICIPATION PLAN OF MOODY’S CORPORATION

The Profit Participation Plan of Moody’s Corporation (the “Plan”) became effective as of the Effective Time, as such term is defined in the Employee Benefits Agreement entered into September 30, 2000, between The Dun & Bradstreet Corporation and The New D&B Corporation, following its adoption by the Board of Directors of Moody’s Corporation (the “Corporation”). The Plan was established as of the Effective Time by way of a spin-off of Members’ accounts that were accrued under the Profit Participation Plan of Dun & Bradstreet Corporation and the Corporation’s assumption of sponsorship of the spun-off plan. The Plan applies to all Employees who are in active service at the Effective Time. In general, the Plan as in effect prior to the effective date of any amendment will continue to apply to those who terminated employment prior to such date. The Plan is intended to be a profit-sharing plan which is qualified for favorable tax treatment pursuant to Section 401(a) and Section 401(k) of the Code.

The Plan is hereby amended and restated effective as of January 1, 2014. This amendment and restatement includes good faith amendments of the Plan that are adopted by the Board of Directors with respect to statutes with respect to which good faith amendments are required through the date of this amendment and restatement. Except as otherwise specifically provided herein, a Member who is not an Employee at any time after December 31, 2013 shall be entitled to benefits, if any, under the Plan based upon the provisions of the Plan in effect on or prior to that date.

Effective as of January 1, 2008, the Plan has provided for additional contributions to employees who commence or recommence employment on or after date.

Effective as of January 1, 2008, the portion of the Plan invested in Company Stock shall constitute a stock bonus plan and an employee stock ownership plan (within the meaning of Code Section 4975(e)(7)) (“ESOP”). The ESOP portion of the Plan is intended to promote employee ownership. Accordingly, amounts held in the ESOP shall be invested exclusively in Company Stock except for cash or cash-equivalent investments held for the limited purpose of facilitating distributions from and investments in the ESOP Fund and paying Plan administrative expenses. The ESOP Fund is intended to be maintained as a feature of the Plan to the maximum extent permitted under the Employee Retirement Income Security Act of 1974, as amended from time to time.

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SECTION I

DEFINITIONS

The following words and phrases as used herein have the following meaning unless a different meaning is plainly required by the context:

1.1. Account means an account maintained for each Member as described in Section 5.3 of the Plan and any subaccount as may be established thereunder.

1.2. Actual Deferral Percentage has the meaning ascribed to such term in Section 3.2 of the Plan.

1.3. Affiliated Employer means the Employer and any other entity, which is a member of a “controlled group of corporations,” a group under “common control,” or an “affiliated service group,” as determined in accordance with Section 414 of the Code.

1.4. Beneficiary means the person or persons, entity or entities (including a trust or trusts) or estate that shall be entitled to receive benefits payable pursuant to the provisions of this Plan due to the death of a Member.

1.5. Board of Directors means the Board of Directors of Moody’s Corporation. Any action authorized hereunder to be taken by the Board of Directors may be also taken by a duly authorized committee of the Board of Directors or a duly authorized delegate of the Board of Directors or such a committee.

1.6. Change in Control means:

(a) Any “Person,” as such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the Corporation, any trustee or other fiduciary holding securities under an employee benefit plan of the Corporation, or any corporation owned, directly or indirectly, by the shareholders of the Corporation in substantially the same proportions as their ownership of stock of the Corporation), is or becomes the “Beneficial Owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing twenty percent (20%) or more of the combined voting power of the Corporation’s then outstanding securities;

(b) during any period of twenty four (24) months (not including any period prior to the effective date of this provision), individuals who at the beginning of such period constitute the Board of Directors, and any new director (other than (i) a director designated by a person who has entered into an agreement with the Corporation to effect a transaction described in clause (a), (c) or (d) of this Section), (ii) a director designated by any Person (including the Corporation) who publicly announces an intention to take or to consider taking actions (including, but not limited to, an actual or threatened proxy contest) which, if consummated, would constitute a Change in Control, or (iii) a director designated by any Person who is the Beneficial Owner, directly or indirectly, of securities of the Corporation representing ten percent (10%) or more of the combined voting power of the Corporation’s securities), whose election by the Board of Directors or nomination for election by the Corporation’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority thereof;

(c) the shareholders of the Corporation approve a merger or consolidation of the Corporation with any other company, other than (i) a merger or consolidation which would result in the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Corporation or such surviving entity outstanding immediately after such merger or consolidation, and (ii) after which no Person holds twenty percent (20%) or more of the combined voting power of the then outstanding securities of the Corporation or such surviving entity; or

(d) the shareholders of the Corporation approve a plan of complete liquidation of the Corporation or an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets.

1.7. Code means the United States Internal Revenue Code of 1986, as amended from time to time.

1.8. Company means Moody’s Corporation or any successor company, and such of its partially or wholly owned subsidiary companies as may, from time to time, be authorized by the Board of Directors or the Committee to participate in the Plan and which have adopted the Plan.

1.9. Company Stock means the common stock of Moody’s Corporation, which is readily tradable on an established securities market.

1.10. Compensation means the total amount received from an Employer by an Eligible Employee while he is a Member as salary, cash bonuses, commissions, overtime pay, fees, participation, lump sum payments in lieu of foregone merit increases, “bonus buyouts” as the result of job changes, and any portion of such amounts voluntarily deferred or reduced by the Eligible Employee (a) under any employee benefit plan of the Company available to all levels of employees of the Company on a non-discriminatory basis upon sat-

126 MOODY’S  2014 10K

isfaction of eligibility requirements, including Participating Before-Tax Contributions and Investment Plan Before-Tax Contributions under this Plan, and (b) under any executive deferral plan of the Company (provided such amounts would not otherwise have been excluded had they not been deferred), but excluding any pension, retainers, severance pay, special stay-on bonus, income derived from stock options, stock appreciation rights and dispositions of stock acquired thereunder, payments dependent upon any contingency after the period of Service and other special remunerations (including performance units). In the case of an Eligible Employee hired on an extended workweek basis, the amount of Compensation shall be the total remuneration received for such extended workweek. In the case of an Eligible Employee who is transferred to a nonparticipating subsidiary company during the Plan Year, the amount of Compensation shall be based upon the amount received by the Eligible Employee prior to such transfer. In addition to other applicable limitations set forth in the Plan, and notwithstanding any other provision of the Plan to the contrary, the Compensation of each Eligible Employee taken into account under the Plan shall not exceed $200,000, as indexed under Section 401(a)(17) of the Code. If a determination period consists of fewer than twelve (12) months, the annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period and the denominator of which is twelve (12). If Compensation for any prior determination period is taken into account in determining an Eligible Employee’s contributions in the current Plan Year, the Compensation for that prior determination period is subject to the annual compensation limit in effect for that prior determination period.

1.11. Contribution Percentage has the meaning ascribed to such term in Section 4.8 of the Plan.

1.12. Corporation means Moody’s Corporation.

1.13. Earnings Per Share for any calendar year means the earnings per share of Common Stock outstanding of the Corporation for such year based on the consolidated statement of income of the Corporation and subsidiaries as certified by the Corporation’s independent accountants and as shown in the Corporation’s annual report to shareholders.

1.14. Eligible Employee means an Employee who is (a) any person who is in the employment of the Company, including officers, but excluding any person who serves only as a director, (b) any United States citizen who is in the employment of a “Foreign Affiliate” (as defined in Section 3121(1)(8) of the Code), provided that such person is covered by an agreement entered into by the Company under Section 3121(l) of the Code, and (c) any United States citizen who is in the employment of a “Domestic Subsidiary” (as defined in Section 407(a)(2) of the Code). Eligible Employee shall not include (i) any person in an employee group covered by a collective bargaining agreement between the Company and a collective bargaining agent unless such collective bargaining agreement makes provision for participation in the Plan for such employee group, (ii) any person engaged or employed as an independent contractor or a temporary employee, (iii) any person performing services for the Company as a leased employee, (iv) any Employee on temporary assignment to the United States who continues to participate in one or more retirement plans maintained by an Affiliated Employer, or (v) any limited duration Employee who commenced or recommenced employment with the Company or an Affiliated Employer on or after May 1, 2014. The term “temporary employee” shall include, but not be limited to, in-house temporary employees, co-ops and interns.

1.15. Employee means any person who is a common-law employee or a leased employee of the Company or an Affiliated Employer, any United States citizen who is employed by a “foreign affiliate” (as defined in Section 3121(l)(8) of the Code), provided that such person is covered by an agreement entered into by the Company under Section 3121(l) of the Code, and any United States citizen who is employed by a “domestic subsidiary” as defined in Section 407(a)(2) of the Code.

1.16. Employer means, with respect to an Employee, the Company that employs such Employee.

1.17. ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time.

1.18. ESOP Fund means that portion of the Trust Fund to which are allocated assets held in Company Stock. The ESOP Fund was effective as of January 1, 2008.

1.19. Excess Aggregate Contributions has the meaning ascribed to such term in Section 4.8 of the Plan.

1.20. Fund means the Moody’s Company Common Stock Fund and each of the other investment funds designated, from time to time, by the Management Benefits and Compensation Committee, into which investment of the assets in Members’ Accounts may be directed.

1.21. Increase in Earnings Per Share means, for any Plan Year, the percentage increase in Earnings Per Share (including any earnings decrease as a minus amount) for said Plan Year over the immediately preceding Plan Year based upon Earnings Per Share for such year as restated in the annual report of the Company to shareholders for the Plan Year; provided, however, that, either the Board or the Committee may, in the discretion of either of them (it being understood that, in the event of inconsistent actions, the Board shall prevail), increase or decrease such Earnings Per Share for purposes of the Plan, to eliminate part or all of the effect of any charges or credits associated with items which are unusual in nature, infrequent in occurrence, related to corporate restructuring or reengineering efforts, or otherwise are deemed appropriate adjustments.

MOODY’S  2014 10K 127

1.22. Investment Manager means an investment manager within the meaning of Section 3(38) of ERISA.

1.23. Investment Plan After-Tax Contributions mean contributions made by Members that were subject to income tax at the time they were made.

1.24. Investment Plan Before-Tax Contributions mean contributions made by Members that were not subject to income tax at the time they were made.

1.25. Investment Plan Contributions mean the sum of a Member’s Investment Plan After-Tax Contributions and Investment Plan Before-Tax Contributions for each Plan Year or other applicable period.

1.26. Management Benefits and Compensation Committee means the Management Benefits and Compensation Committee appointed pursuant to Section 10.1 of the Plan.

1.27. Matching Contributions of the Company mean the matching contributions made by the Company to the Fund pursuant to Section 4.1 of this Plan in respect of Participating After-Tax Contributions and Participating Before-Tax Contributions made by Members.

1.28. Member means any individual who has become a Member in accordance with Section 2 of the Plan and whose interest in the Trust Fund has not been completely distributed pursuant to Section 9 of the Plan.

1.29. Normal Retirement Age means the time a Member attains age sixty-five (65).

1.30. Participating After-Tax Contributions means contributions made by Members which are eligible for Matching Contributions and which were subject to income tax at the time they were made.

1.31. Participating Before-Tax Contributions means contributions made by Members which are eligible for Matching Contributions and which were not subject to income tax at the time they were made.

1.32. Participating Contributions means the sum of a Member’s Participating After-Tax Contributions and Participating Before-Tax Contributions for each Plan Year or other period.

1.33. Plan means this Profit Participation Plan as from time to time in effect.

1.34. Plan Year means the calendar year.

1.35. Post-2007 Member means an individual who becomes a Member in accordance with Section 2 and who commences or recommences employment with the Employer on or after January 1, 2008. In addition, Post-2007 Member includes any Employee of Moody’s Evaluations, Inc. regardless of the date of such Employee’s date of commencement or recommencement of employment (other than an Employee who continues to accrue benefits under the Moody’s Corporation Retirement Account on or after January 1, 2008).

1.36. Profit Sharing Contribution means for Plan Years commencing on or after January 1, 2008, the annual contributions, if any, made by the Company pursuant to Section 4.3 of the Plan. Profit Sharing Contributions shall be paid in Company Stock unless the Board elects to make such Profit Sharing Contribution in cash.

1.37. Reemployment Commencement Date means the first date, following a termination of employment with the Company, that an Employee again performs an hour of compensated Service for an Employer, as determined in accordance with Section 1.42 hereof.

1.38. Retirement means the termination of employment of any Employee by “retirement,” including “early retirement,” in accordance with and as such terms are defined under the provisions of the Moody’s Corporation Retirement Account or the retirement plan or pension plan of any affiliate.

1.39. Retirement Contributions means any contributions made to the Trust Fund on behalf of a Post-2007 Member pursuant to Section 4.2 hereof.

1.40. Rollover Contributions means any contributions made to the Trust Fund on behalf of a Member pursuant to Section 5.4 hereof.

1.41. Roth Contributions means Member contributions that are: (a) designated irrevocably by the Member at the time of the cash or deferred election as a Roth Contribution that is being made in lieu of all or a portion of the Participating Before-Tax Contributions and/or Investment Plan Before-Tax Contributions or catch-up contributions the Member is otherwise eligible to make under the Plan, (b) treated by the Employer as includible in the Member’s income at the time the Member would have received that amount in cash if the Member had not entered into a salary reduction agreement; and (c) allocated to the Member’s Roth Contributions Account. Contributions and withdrawals of Roth Contributions shall be credited to the Member’s Roth Contributions Account, and the Plan shall maintain a record of the Member’s investment in the contract (i.e., Roth Contributions that have not been distributed). Gains, losses, and other credits and charges will be separately allocated on a reasonable and consistent basis to the Member’s Roth Contributions Account and the Member’s other Accounts under the Plan. Unless otherwise specified in the Plan, (i) Roth Contributions will be treated the same as Before-Tax Contributions for all purposes under the Plan, and (ii) references in the Plan to Before-Tax Contributions shall include Roth Contributions.

128 MOODY’S  2014 10K

1.42. Service means the following:

(a) “Year of Eligibility Service” means the twelve (12) consecutive month period beginning on the commencement date of an Employee’s employment by the Company and ending on the first anniversary date of his employment date, provided the Employee has one thousand (1,000) hours of compensated Service during such period. If an Employee has less than one thousand (1,000) hours of compensated Service during such twelve (12) month period, Year of Eligibility Service means the first calendar year following the commencement date of an Employee’s employment by the Company during which the Employee has one thousand (1,000) hours of compensated Service and any subsequent calendar year. The commencement date of an Employee’s employment by the Company shall be the first day on which the Employee performs an hour of compensated Service for the Company. An hour of compensated Service shall include each hour or any part thereof for which an Employee is paid or entitled to be paid any Compensation by the Company, whether or not employment duties are performed and irrespective of whether the employment relationship has terminated, including vacation days, holidays, and non-working days due to illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence. An hour of compensated Service shall also include each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the employing Company. In the case of any Employee who is paid or entitled to be paid Compensation with respect to any period during which the Employee performed no duties, the number of hours of compensated Service to be credited to such Employee and the computation period to which such hours of compensated Service shall be credited shall be determined in accordance with applicable regulations of the United States Department of Labor under 29 Code of Federal Regulations, Part 2530, relating to minimum standards for employee benefit plans, as the same may be amended from time to time. In the case of an Employee who is paid a fixed salary and who is not entitled to compensation for overtime, each day of Service shall be counted as ten (10) hours of Service.

(b) “Vesting Service” means that the period of time between the commencement date of an Employee’s employment or reemployment by the Company and the date on which an interruption in such employment occurs. Vesting Service shall be counted in full years and in partial years, with each month or any part thereof counting as one-twelfth (1/12) of a year and with one (1) year of Vesting Service meaning twelve (12) months of Vesting Service. An interruption in an Employee’s employment shall occur on the date on which the Employee resigns, retires, is discharged or dies, or the first anniversary of the first date of a period in which the Employee is absent from the employment of the Company due to a leave of absence, layoff, holiday, vacation, disability or illness, whichever is the earliest. A break-in-service shall occur upon the expiration of one (1) year after the date an Employee’s Service is interrupted. The Vesting Service of an Employee shall not be broken by an interruption in his employment if his employment is resumed by the performance of an hour of compensated Service within one (1) year of the date of interruption. If an Employee with one (1) year or more of Vesting Service incurs a break-in-service equal to the greater of five (5) consecutive breaks-in-service or the number of years of Vesting Service as of his prior termination of employment, his Vesting Service prior to such break shall not be restored upon his reemployment by the Company. If an Employee’s employment with the Company is interrupted prior to the completion of one (1) year of Vesting Service, his Vesting Service prior to the break-in-service shall be disregarded upon any subsequent re-employment by the Company. In the case of an Employee who is absent due to pregnancy of the Employee, the birth of a child of an Employee, the placement of a child with the Employee in connection with the adoption of the child by the Employee, or for purposes of caring for such child immediately following the birth or placement of such child, the following rules shall apply: (i) the Employee’s Vesting Service shall not be interrupted until the earliest of the first anniversary of the commencement date of such absence or the date of the Employee’s resignation or death; and (ii) the period between the first anniversary and second anniversary of the commencement date of such absence shall not count as Vesting Service or as a period of severance.

(c) For purposes of calculating a Year of Eligibility Service and Vesting Service, (i) a period of authorized leave of absence for a purpose approved by the Management Benefits and Compensation Committee under uniform rules, or (ii) absence for the purpose of military service pursuant to the requirements of law or by enlistment for not longer than the minimum period required by law, shall be counted as Service if the Employee resumes his Service as an Employee at the end of such leave of absence or within the period prescribed by law for the exercise of reemployment rights. To the extent determined from time to time by the Board of Directors, Service shall also include service as an employee of any other corporation, company or business which becomes related to the Company by purchase, acquisition, merger, consolidation or otherwise. Service shall also include service by a person in the employment of any corporation, the voting stock of which is eighty percent (80%) or more owned, directly or indirectly, by the Corporation commencing with the date of acquisition of such ownership, provided such service would have counted as Eligibility Service or Vesting Service, as applicable, had such person been an Employee of the Company during such period. Service shall also include service by a person in the employment of DonTech, an Illinois general partnership, and its subsidiary companies. In the case of any Employee employed by Wall Street Analytics, Inc. (subsequently renamed Moody’s Wall Street Analytics, Inc.) on December 18, 2006, Service shall also include the Employee’s period of employment with Wall Street Analytics, Inc. prior to December 18, 2006, for purposes of determining (i) eligibility to participate in the Plan (provided, however, that in no event may any such Employee become a Member prior to January 1, 2007), and (ii) vesting of benefits under Section VIII.

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1.43. Spouse shall mean the spouse of a Member. Effective as of September 16, 2013 (or, if a different date is permitted or required by Internal Revenue Service guidance for any particular purpose, the date specified in such guidance for such purpose), such determination shall be made based on the laws of the state where the marriage is initially established as provided in Revenue Ruling 2013-17.

1.44. Threshold means an Increase in Earnings Per Share equal to the greater of (i) ten percent (10%) or (ii) two percent (2%) in excess of targeted Earnings Per Share percentage growth for the Plan Year.

1.45. Trustee means a corporate trustee appointed by the Management Benefits and Compensation Committee pursuant to Section 10 of the Plan and any additional or substituted trustee or trustees of the Fund.

1.46. Trust Fund means the trust fund or trust funds established under the Plan to hold the assets of the Plan.

1.47. Valuation Date means, the every business day within the calendar year.

1.48. Vesting Service is defined in Sections 1.41(b) and (c).

1.49. Year of Eligibility Service is defined in Sections 1.41(a) and (c).

The masculine pronoun wherever used includes the feminine pronoun, and the singular includes the plural.

SECTION II

ELIGIBILITY

2.1. Eligibility. Every Eligible Employee who was participating or eligible to participate in The Dun and Bradstreet Profit Participation Plan immediately prior to the Effective Time shall become a Member as of the Effective Time. Every other full-time Employee shall become eligible to participate in the Plan on the commencement date of the Employee’s employment by the Company or, if later, the date that such individual becomes an Employee. Every other part-time Employee shall become eligible to participate in the Plan on the date that such individual completes one (1) Year of Eligibility Service or, if later, the date that such individual becomes an Employee.

2.2. Eligibility Upon Reemployment. A Member or former Member who terminates employment with the Company and is subsequently reemployed by the Company shall be eligible to participate in the Plan as of his Reemployment Commencement Date. A part-time Eligible Employee who terminates employment with the Company prior to completing one (1) Year of Eligibility Service and is subsequently reemployed by the Company shall be eligible to participate in the Plan after the completion of one (1) Year of Eligibility Service following his Reemployment Commencement Date.

SECTION III

CONTRIBUTIONS OF MEMBERS

3.1. Each Eligible Employee may become a Member by electing to contribute to the Trust Fund a stated whole percentage of his Compensation, from one percent (1%) to a maximum of fifty percent (50%). Unless a Member elects otherwise in accordance with procedures adopted by the Committee, an individual who first becomes a Member (or who recommences employment with the Employer and again becomes a Member) on or after January 1, 2008 shall be deemed to have elected to contribute three percent (3%) of his Compensation to the Trust Fund, and such election shall be subject to the rules under Section 414(w) of the Code. In addition, all Members who are eligible to make Participating Contributions and who have attained age 50 before the close of the Plan Year shall be eligible to make catch-up contributions in accordance with, and subject to the limitations of, Section 414(v) of the Code. Such catch-up contributions shall not be taken into account for purposes of the provisions of the Plan implementing the required limitations of Sections 402(g) and 415 of the Code. The Plan shall not be treated as failing to satisfy the provisions of the Plan implementing the requirements of Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable, by reason of the making of such catch-up contributions.

3.2. Each Member may elect to make his Participating Contributions and Investment Plan Contributions on a before-tax or after-tax basis, or by any combination of same, in whole percentages of Compensation. Participating Contributions and Investment Plan Contributions shall be made by regular payroll deductions and/or reductions, respectively, as authorized by the Member. Authorization for such payroll deduction and/or reduction contributions shall be made (i) on forms approved by the Management Benefits and Compensation Committee and filed with the Company, (ii) by telephonic, electronic or other data transmission in a manner approved by the Management Benefits and Compensation Committee, or (iii) in any other manner approved by the Management Benefits and Compensation Committee. Effective May 1, 2014, at the time an election is made by a Member pursuant to this Section 3.1, the Member may irrevocably elect to designate all or a portion of the Before-Tax Contributions elected thereunder to be treated as Roth Contributions.

3.3. In no event may a Member make Participating Before-Tax Contributions and Investment Plan Before-Tax Contributions, if any, for any taxable year in excess of $15,000 (or such other amount as may be prescribed from time to time under Section 402(g) of the Code

130 MOODY’S  2014 10K

and the regulations thereunder, the provisions of which are hereby incorporated by reference). In the event that the limitation set forth in the preceding sentence is exceeded with respect to any Member in any Plan Year, the Member shall be deemed to have notified the Management Benefits and Compensation Committee of such excess amount, and such amount, increased by any income and decreased by any losses attributable thereto, shall be distributed to the Member no later than April 15 of the following calendar year. In addition, a Member may allocate to the Plan any excess deferrals (as hereinafter defined) made during a taxable year of the Member by notifying the Management Benefits and Compensation Committee on or before March 1 of the following calendar year of the amount of the excess deferrals to be assigned to the Plan. Upon such timely notification by a Member, the Management Benefits and Compensation Committee shall cause to be distributed such excess deferrals, increased by any income and decreased by any losses attributable thereto, no later than the April 15 of the following calendar year; provided, however, that in no event may a Member receive from this Plan a distribution of such excess deferrals for a calendar year in an amount exceeding the Member’s total elective deferrals for such year. The determination of the income and loss allocable to the excess deferrals shall be made in accordance with Code Section 402(g) and the regulations thereunder, as they may be amended from time to time. Excess deferrals shall be treated as annual additions under the Plan for purposes of Section 14.2, unless such amounts are distributed no later than the first April 15 following the close of the calendar year in which made.

3.4. Notwithstanding the foregoing, under no circumstances shall an election to make Participating Before-Tax Contributions or Investment Plan Before-Tax Contributions, if any, by a Highly Compensated Employee, as hereinafter defined, be given effect to the extent such election might cause the Plan to fail to meet the discrimination standards set forth in Section 401(k)(3) of the Code. In this regard, the Actual Deferral Percentage for Eligible Employees who are Highly Compensated Employees, whether or not participating in the Plan for any Plan Year, must be either (a) not more than the Actual Deferral Percentage of all other Employees eligible to participate in the Plan for such Plan Year multiplied by 1.25, or (b) not more than two (2) percentage points greater than the Actual Deferral Percentage of all other Employees eligible to participate in the Plan for such Plan Year and not more than such Actual Deferral Percentage of all other Eligible Employees for such year multiplied by two (2). The Actual Deferral Percentage tests described in the preceding sentence shall be performed by using the Actual Deferral Percentage of non-Highly Compensated Employees for the Plan Year preceding the Plan Year that is being tested, unless the Employer has elected to use the current Plan Year rather than the preceding Plan Year, which election may be changed only as provided by the Internal Revenue Service.

The Actual Deferral Percentage for a specified group of Employees for a Plan Year shall be the average of the ratios (calculated separately for each Employee in such group) of (i) each Eligible Employee’s Before-Tax Contributions made under the Plan for such Plan Year, to (ii) the Eligible Employee’s compensation for such Plan Year. For purposes of this Section 3.4, a Member’s compensation must be determined in accordance with a method permitted under Section 414(s) of the Code. In the event the Company determines that the Before-Tax Contributions elected by Highly Compensated Employees might cause the Plan to fail to meet the foregoing limitation, the Company shall reduce the amount of Compensation that may be elected as Contributions under the Plan by Highly Compensated Employees. The amount of such reductions shall be determined by the Company and such determination shall be conclusive. Such reductions shall be made first from any Investment Plan Before-Tax Contributions and then from Participating Before-Tax Contributions. In either case, the reductions shall start with the highest dollar amount of Before-Tax Contributions, so that no Member shall be subject to reduction until all dollar amounts have been reduced to the dollar amount elected by such Member. Effective as of May 1, 2014, if a Member’s contributions are to be reduced pursuant hereto and the Member made both Roth Contributions and Before-Tax Contributions during the Plan Year, all Before-Tax Contributions shall be reduced before any Roth Contributions are reduced.

If the amount of Investment Plan Before-Tax Contributions and Participating Before-Tax Contributions elected by a Member to be transferred to the Trust Fund is reduced by application of this Section 3.4(b), the amount of such reduction, which hereinafter shall be referred to as “excess contributions,” including any income or excluding any losses attributable to such excess contributions, shall be paid in cash to the Member no later than March 15 of the Plan Year following the Plan Year for which the contribution is being made and shall not be transferred to the Trust Fund. The amount of the income or loss allocable to the excess contributions shall be determined by multiplying the income or loss on the Member’s Investment Plan Before-Tax Contributions and Participating Before-Tax Contributions Account balance for the Plan Year in which the excess contributions were made by a fraction, the numerator of which is the amount of excess contributions for the Plan Year and the denominator of which is the value of the Member’s Investment Plan Before-Tax Contributions and Participating Before-Tax Contributions Account balance as of the last business day of that Plan Year. Income for the period between the end of the applicable Plan Year and the date of the corrective distribution shall be disregarded. Notwithstanding the foregoing, effective for Plan Years beginning on or after January 1, 2006, in all events this Section 3.4 shall be applied in accordance with the requirements of Treasury Regulation section 1.401(k)-2, as amended by subsequent legislation.

For purposes of the foregoing, the determination of Highly Compensated Employee shall be made as follows:

(a) The term Highly Compensated Employee shall mean any Employee who

(i) was a “5% owner” of the Employer at any time during the Plan Year or the preceding Plan Year, or

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(ii) for the preceding Plan Year

(A) had Compensation in excess of $80,000 (which amount shall be adjusted by the Commissioner of Internal Revenue at the same time and in the same manner as under Code Section 415(d), except that the base period shall be the calendar quarter ending September 30, 1996), and

(B) if the Employer elects the application of this clause for such preceding Plan Year, was in the “top-paid group” of Employees for such preceding Plan Year.

An Employee shall be treated as a “5% owner” for any Plan Year if at any time during such Plan Year such Employee was a “5% owner” of the Employer. An Employee is in the “top-paid group” of Employees for any Plan Year if such Employee is in the group consisting of the top twenty percent (20%) of the Employees when ranked on the basis of Compensation paid during such Plan Year, excluding those Employees who (1) have not completed six (6) months of service, (2) normally work less than seventeen and one half (17 ¹⁄₂) hours per week, (3) normally work during not more than six (6) months during any Plan Year, (4) have not attained age twenty one (21), and (5) are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and the Employer.

(b) A former Employee shall be treated as a Highly Compensated Employee if

(i) such Employee was a Highly Compensated Employee when such Employee separated from service, or

(ii) such Employee was a Highly Compensated Employee at any time after attaining age fifty five (55).

The limitations set forth in this Section 3.4 shall be interpreted and applied in accordance with applicable Treasury Regulations and Internal Revenue Service rulings promulgated pursuant to Section 401(k)(3) of the Code.

3.5. A Member may suspend his Participating Contributions or Investment Plan Contributions at any time by notice to the Company, in which event Participating Contributions or Investment Plan Contributions may be resumed effective as of the first pay period next following the filing of a new contribution election. A Member may increase or reduce his Participating Contributions or Investment Plan Contributions or change his election as to After-Tax Contributions and/or Before-Tax Contributions within the limitations set forth in Section 3.1 hereof effective as of the first pay period next following the filing with the Company of an election authorizing a change in his payroll deductions and/or reductions. Amounts contributed by Members shall be paid by the Company to the Trustee at regular intervals and credited by the Trustee to their Accounts in accordance with the certification of the Management Benefits and Compensation Committee as to the names of the contributing Members and the amounts contributed by each Member as Participating After-Tax Contributions and Participating Before-Tax Contributions; provided, however, that in no event may such contributions be transmitted to the Trustee later than the fifteenth (15th) business day of the month following the month in which such amounts otherwise would have been payable to the Member in cash, or such later date as may be permitted under applicable law.

SECTION IV

COMPANY CONTRIBUTIONS AND ALLOCATION AMONG MEMBERS

4.1. The Company shall make monthly Matching Contributions to the Trust Fund equal to fifty percent (50%) of the aggregate Participating Contributions of Members up to six percent (6%) of Compensation (i.e., the maximum potential match is three percent (3%) of Compensation). Each such Company Matching Contribution shall be allocated among Members in proportion to their Participating Contributions made during the calendar month for which the Matching Contribution is being made and shall be credited to Member’s Accounts when made to the Plan. In addition, the Company shall make a “true-up” Matching Contribution to the Trust Fund on behalf of any Member who receives lower Matching Contributions during a Plan Year as a result of not having made Participating Contributions ratably over the course of such Plan Year than he would have received if such Participating Contributions had been made ratably.

4.2. As soon reasonably practicable after the end of each payroll period, the Company shall contribute Retirement Contributions to the Trust Fund in an amount equal to the following percentage of Compensation paid to each Post-2007 Member in such payroll period:

Age Plus Vesting Service Of Post-2007 Member As Of the Last Day of the Month	Retirement Contribution (% of Compensation)
Less than 35		3.0	%
35-44		3.5	%
45-54		4.0	%
55-64		4.5	%
65-74		5.0	%
75-84		5.5	%
85 or more		6.0	%

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For the avoidance of doubt, no Member who is an active participant in the Moody’s Corporation Retirement Account at the time any Retirement Contributions are made shall be eligible to be credited with such Retirement Contributions.

4.3. In the event the Increase in Earnings Per Share for any Plan Year equals or exceeds the Threshold, the Company shall make Profit Sharing Contributions for such Plan Year; provided that, in its sole discretion, the Committee or its delegate may determine not to award any Profit Sharing Contributions to one or more Eligible Employees or groups of Eligible Employees, or to provide a reduced level of Profit Sharing Contributions to one or more Eligible Employees or groups of Eligible Employees, subject to applicable law (including Section 401(a) of the Code). In order to receive a Profit Sharing Contribution for a Plan Year, a Participant must be actively employed by the Company or an Affiliate on December 31 of the applicable Plan Year and be classified by the Company or the Affiliate as a full-time or part-time employee as of such date. Such Profit Sharing Contributions and the allocation thereof shall be determined in accordance with the following table:

Increase in Earnings Per Share for the Plan Year	Profit Sharing Contribution (Percentage of Eligible Employee’s Compensation for the Plan Year)
Threshold		0.4	%
3% above Threshold		0.9	%
5.5% above Threshold		1.2	%
8% above Threshold		1.6	%
10% or more above Threshold		1.8	%

If the Increase in Earnings Per Share for any Plan Year results in a percentage between any two percentages shown on the above table, the Company shall compute the Profit Sharing Contribution amounts by mathematical interpolation and rounding the right-hand column to the one-tenth of one percent of Compensation, subject to the first sentence of this Section 4.3.

Notwithstanding the foregoing, in no event shall a Profit Sharing Contribution be credited to the Account of a Participant if applicable law (including, without limitation, the Dodd–Frank Wall Street Reform and Consumer Protection Act) prohibits the Participant from being credited with such Profit Sharing Contribution.

4.4. Notwithstanding the foregoing, total Company contributions under the Plan for any calendar year shall not exceed the amount deductible for such year under the provisions of the Code after giving full effect to contributions under the Moody’s Corporation Retirement Account and any other defined benefit plan to which the Company contributes. Any reductions in Company contributions mandated by this paragraph shall be in the order of reductions in Additional Matching Contributions and then, if necessary, reductions in Company Matching Contributions and then, if necessary, reductions in Profit Sharing Contributions and then, if necessary, reductions in Retirement Contributions.

4.5. All Company contributions shall be made only out of current or accumulated earnings of the Company.

4.6. The total amount of the Trust Fund forfeited by Members during any calendar month or calendar year shall be applied to reduce future Company contributions due under the Plan.

4.7. Company contributions for each calendar month or for a Plan Year (as the case may be) and the allocation thereof shall be made without regard to contributions made by Members whose employment terminated during such calendar month or Plan Year (as the case may be) for any reason other than Retirement, disability or death, and no such Member shall be entitled to an allocation of any such contribution.

4.8. Notwithstanding the foregoing, under no circumstances shall the sum of the Matching Contributions and Additional Matching Contributions for a Highly Compensated Employee (as defined under Section 3.3(c)), together with the sum of his Participating After-Tax Contributions and Investment Plan After-Tax Contributions, exceed such amount as might cause the Plan to fail to meet the discrimination standards set forth in Section 401(m)(2) of the Code. In this regard, the Contribution Percentage of Members who are Highly Compensated Employees for any Plan Year must either be (a) not more than such percentage of all other Members for such Year multiplied by 1.25 or (b) not more than two (2) percentage points greater than such percentage of all other Members for such Year and not more than such percentage of all other Members for such Year multiplied by two (2). The Contribution Percentage tests described in the preceding sentence shall be performed by using the Contribution Percentage of non-Highly Compensated Employees for the Plan Year preceding the Plan Year that is being tested, unless the Employer has elected to use the current Plan Year rather than the preceding Plan Year, which election may be changed only as provided by the Internal Revenue Service. The Contribution Percentage for a specified group of Members for a Plan Year shall be the average of the ratios (calculated separately for each person) of (i) the total Matching Contributions and Additional Matching Contributions allocated to each Member for such Plan Year plus his Participating After-Tax Contributions and his Investment Plan After-Tax Contributions for such Plan Year, to (ii) the Member’s compensation for such

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Plan Year. For purposes of this Section 4.8 of the Plan, a Member’s compensation must be determined in accordance with the provisions of Section 414(s) of the Code. If the Company determines that the foregoing limitations are not satisfied, the Investment Plan After-Tax Contributions, Participating After-Tax Contributions, Matching Contributions and Additional Matching Contributions by Highly Compensated Employees for a Plan Year shall be reduced as follows: the Highly Compensated Employee with the highest dollar amount of such contributions for such Plan Year shall be reduced by the lesser of the amount required (i) to enable the Plan to satisfy the test described in the preceding sentence, or (ii) to cause such Highly Compensated Employee’s Compensation aggregate contributions to equal the dollar amount of the Highly Compensated Employee with the next highest dollar amount of such contributions. This process shall be repeated until the Plan satisfies the test. In implementing such test, the Company shall first reduce the amounts of Investment Plan After-Tax Contributions and Participating After-Tax Contributions so elected to be contributed or which have been contributed by such Members in order to comply with Section 401(m)(2) of the Code. If the amount elected by a Member to be transferred to the Trust Fund is reduced by application of this Section 4.8, the amount of such reduction, which hereinafter shall be referred to as “Excess Aggregate Contributions,” including any income or excluding any losses, shall be paid in cash to the Member on whose behalf such contributions were made, to the extent practicable, within two and one-half (2 ¹⁄₂) months following the Plan Year for which such excess contributions were made, but in no event later than the close of the Plan Year following the Plan Year in which such Excess Aggregate Contributions were made. The determination of the income and loss allocable to Excess Aggregate Contributions shall be made in the manner prescribed by Code Section 401(m) and the Treasury Regulations thereunder.

With respect to a Plan Year being tested, the determination of whether the Plan satisfies the requirements of this Section 4.8 shall be made in accordance with Code Section 401(m) and the Treasury Regulations thereunder, as they may be amended from time to time, the provisions of which are hereby incorporated by reference and shall override the provisions of the Plan to the extent inconsistent therewith. Effective for Plan Years beginning on or after January 1, 2006, in all events this Section 4.8 shall be applied in accordance with the requirements of Treasury Regulation section 1.401(m)-2, as amended by subsequent legislation.

SECTION V

THE TRUST FUND

5.1. The assets of the Plan (the “Trust Fund”) shall be held in trust by one (1) or more corporate trustees pursuant to the terms of a Trust Agreement between the Corporation and each corporate trustee. No person shall have any right to or interest in the Trust Fund except as provided in the Plan and Trust Agreement.

5.2. The Trust Fund shall consist of the Moody’s Company Stock Fund and those other Funds designated, from time to time, by the Management Benefits and Compensation Committee, into which investment of the assets in Members’ Accounts may be directed.

5.3. A separate Account shall be maintained for each Member to which there shall be credited such Member’s Participating and Investment Plan After-Tax Contributions, Before Tax Contributions, Roth Contributions, Matching and Additional Matching Contributions, Profit Sharing Contributions, Retirement Contributions, Rollovers, and the share of each Member in each Fund of the Trust Fund. As of each Valuation Date, the Trustee shall revalue the Trust Fund at then current market values. As of the last Valuation Date of each calendar quarter and upon such other Valuation Dates as requested by the Management Benefits and Compensation Committee, the Trustee shall certify the value of the Trust Fund to the Company and to the Management Benefits and Compensation Committee. The Company, the Management Benefits and Compensation Committee, or the Trustee, as the case may be, shall apportion the Trust Fund as revalued as of each Valuation Date among the Members in proportion to their respective interests in each Fund of the Trust Fund immediately preceding such Valuation Date. As soon as practicable after the close of each calendar quarter, there shall be sent to each Member a written statement of the amount to the credit of his Account as of the last Valuation Date of the applicable calendar quarter.

5.4. Any amount which, with the consent of the Management Benefits and Compensation Committee, (a) is transferred to the Trust Fund from the trust fund of a plan which meets the requirements for qualification under the Code for the Account of an Employee of the Company or any corporation the voting stock of which is eighty percent (80%) or more owned, directly or indirectly, by the Corporation, or (b) is transferred by such an Employee to the Trust Fund as a tax free rollover under Section 402(c) or under Section 408(d)(3)(A) of the Code, or (c) is transferred to the Trust Fund as a “direct rollover” from the tax-qualified retirement plan of a former employer pursuant to Sections 401(a)(31) of the Code, shall be credited to a separate Account for such Employee and shall be held and invested in the Moody’s Company Stock Fund or any of the other Funds designated, from time to time, by the Management Benefits and Compensation Committee, in accordance with such Employee’s investment election, subject to the limitations in the Plan. In the case of a direct transfer from a plan which meets the requirements for qualification under the Code, such amount may include promissory notes evidencing a loan given in accordance with the provisions of such transferor plan, provided that the Management Benefits and Compensation Committee shall have consented in advance to the assumption of such loan in accordance with Section 9.9 hereof. No amount so transferred shall be treated as a Participating Contribution by the Member or be eligible to share in any Matching Contribution. Such Accounts shall be fully vested and shall be distributable in accordance with the provisions of the Plan.

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5.5. Notes of Members given in accordance with the loan provisions of a plan maintained by an affiliated company, the accounts of which are transferred to the Plan, may be held in a separate Account established hereunder. Any payments of principal or interest pursuant to such notes shall be allocated to the Account of the Member making the payments and invested in the Funds designated, from time to time, by the Management Benefits and Compensation Committee, in accordance with the Member’s investment election in effect at the time of such payments.

SECTION VI

INVESTMENT ELECTIONS

6.1. The balance to the credit of each Member’s Account and amounts attributable to contributions made with respect to such Member shall be held and invested in one (1) or more of the Funds as such Member shall have most recently elected in accordance with Section 3 hereof, subject to the limitations in the Plan.

6.2. Each new Member shall elect, prior to the commencement date of his participation, to have amounts attributable to contributions made thereafter with respect to such Member held and invested in one or more of the Funds, in multiples of one percent (1%), except that no Member may elect to have more than ten percent (10%) of his interest in contributions invested in the Moody’s Common Stock Fund.

6.3. Each Member may make a revised investment election at any time applicable to amounts attributable to contributions made with respect to his Account from and after the first pay period following such revised election, subject to the foregoing limitation with respect to investment in the Moody’s Common Stock Fund.

6.4. Subject to Section 6.3 hereof, Each Member, at any time, may elect to have the amount to the credit of his Account calculated as of the Valuation Date immediately following the receipt of a revised election by the Management Benefits and Compensation Committee (a) reallocated among the Funds, in multiples of one percent (1%), or (b) transferred in a specified dollar amount from one Fund to another Fund. Notwithstanding the foregoing, in no event may a Member elect to reallocate or transfer any amount to the Moody’s Common Stock Fund if ten percent (10%) or more of the amount to the credit of his Account as of the applicable Valuation Date would be invested in the Moody’s Common Stock Fund (provided that any Member with more than ten percent (10%) of the amount to the credit of his Account as of November 1, 2011 invested in the Moody’s Common Stock Fund shall not be required to divest any portion of such holdings, but no additional amounts may be allocated by such Member to the Moody’s Common Stock Fund until the ten percent (10%) limitation would not be exceeded, and in no event thereafter may such ten percent (10%) limitation be exceeded by such Member).

6.5. All assets of the Plan that are invested in Company Stock shall be invested in the ESOP Fund. The ESOP Fund shall be invested exclusively in Company Stock except for cash or cash equivalent investments for the limited purposes of making Plan distributions to Members and paying Plan administrative expenses, or pending the investment of contributions or other cash receipts in Company Stock, without regard to the diversification of assets. All Company Stock is included in the ESOP Fund, regardless of the source, character, or history of investment of the contributions or earnings that are invested in Company Stock. Amounts that cease to be invested in Company Stock shall cease to be included in the ESOP Fund, subject to inclusion again if the Member directs that amounts be invested in Company Stock. Neither any Company, the Management Benefits and Compensation Committee nor the Trustee shall have any responsibility or duty to time any transaction involving Company Stock, in order to anticipate market conditions or changes in stock value, nor shall any such person have any responsibility or duty to sell Company Stock held in the ESOP Fund (or otherwise to provide investment management for Company Stock held in the ESOP Fund) in order to maximize return or minimize loss. Company contributions in cash, and other cash received by the Trustee, may be used to acquire shares of Company Stock from Company shareholders or directly from the Company.

6.6. In the event a Member fails to make an investment election, the Member’s current and future contributions shall be held and invested in the appropriate qualified default investment alternative under the Plan.

6.7. Investment elections shall be made (a) on forms approved by and filed with the Management Benefits and Compensation Committee, (b) by telephonic, electronic or other data transmission in a manner approved by the Management Benefits and Compensation Committee, or (c) in any other manner approved by the Management Benefits and Compensation Committee in its sole discretion.

6.8. In all events, the valuation methodology to be used in calculating a Member’s interest in a Fund which is terminating shall be determined by the Management Benefits and Compensation Committee in its discretion; provided, however, that such methodology shall apply uniformly to all Members having an interest in such Fund at the time of termination.

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SECTION VII

VOTING AND TENDERING OF

MOODY’S CORPORATION COMMON STOCK; DIVIDENDS

7.1. The following provision shall apply with respect to Company Stock:

(a) Members, Beneficiaries of deceased Members and Alternate Payees shall be permitted to direct the manner of exercise of voting rights on shares of Company Stock or stock of an Affiliate, including fractional shares, allocated to their Accounts, as follows:

(i) The issuer of the Company Stock shall provide the Trustee and Members, Beneficiaries of deceased Members and Alternate Payees with all notices and information provided to its stockholders in connection with the exercise of their voting rights. If the Trustee receives communications directed to stockholders concerning voting, the Trustee shall cause the communications to be distributed to Members, Beneficiaries of deceased Members and Alternate Payees.

(ii) The Trustee shall solicit directions from Members, Beneficiaries of deceased Members and Alternate Payees about voting the shares allocated to Members’ Accounts and shall exercise voting rights as provided in the applicable Trust agreement or instrument.

(iii) Except as required for trust administration or by law, individual voting instructions shall be held by the Trustee in confidence.

(iv) Except as expressly provided in subsection (b) or the applicable trust agreement or instrument, the Trustee may, at the direction of the Administrator, solicit and follow directions of Members, Beneficiaries of deceased Members and Alternate Payees under procedures similar to voting procedures under this subsection with respect to any matter involving the exercise of individual shareholder rights and privileges relating to Company Stock allocated to Members.

(b) If the Trustee receives a tender offer for shares of Company Stock or stock of an Affiliate, the following shall apply unless otherwise required by law:

(i) Tender offer means an offer to acquire Company Stock, as provided in the applicable trust agreement or instrument.

(ii) When a tender offer is received, the Trustee shall inform all Members, Beneficiaries of deceased Members and Alternate Payees whose Accounts are affected by the tender offer and shall respond to the offer as provided in the applicable trust agreement or instrument.

(iii) If the manner of exercising voting or other shareholder rights under subsection (a) or responding to a tender offer under subsection (b) is not permitted by law, then the Trustee shall determine how to exercise the voting or other rights or how to respond to the tender offer, as applicable. In making such determinations, the Trustee may employ such experts and advisors as it deems helpful or necessary. All reasonable expenses incurred by the Trustee in making such determinations shall be paid from the Trust Fund unless paid by the Company.

7.2. Special Distribution of Dividends.

(a) The Company may determine that cash dividends on common shares of Company Stock allocated to Members under the ESOP Fund may be distributed directly to such Members in one or more of the following manners, from time to time:

(i) Mandatory Dividend Distribution By Trustee – Cash dividends received on common shares of Company Stock allocated to Members under the ESOP Fund will be paid currently in cash by the Trustee to such Members (or their Beneficiaries).

(ii) Mandatory Dividend Distribution by Company – Cash dividends received on common shares of Company Stock allocated to Members under the ESOP Fund will be paid currently in cash by the Company directly to such Members (or their Beneficiaries).

(iii) Member Election of Dividend Distribution or Reinvestment – Each Member will be offered the opportunity to elect to have cash dividends on common shares of Company Stock allocated to such Member’s interest in the ESOP Fund either paid directly to such Member or to have such cash dividends reinvested in common shares of Company Stock for the benefit of such Member. Any election made pursuant to this paragraph shall be made in accordance with the following:

(A) Members shall be given a reasonable opportunity before a dividend is paid or distributed to them in which to make the election.

(B) Members shall have a reasonable opportunity to change a dividend election at least annually.

(c) Subject to rules established by the Administrator, any election shall continue to apply with respect to all subsequent dividends with respect to Company Stock allocated to the Member unless the Member changes the election.

(D) If Plan terms governing the manner for payment or distribution of dividends to Members are modified, the Members shall be given a reasonable opportunity to make an election under the new Plan terms before the date on which the first dividend that is subject to the new Plan terms is paid or distributed.

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(E) A Member’s election with respect to any dividend shall be irrevocable on the day before the date for payment or distribution of the dividend to Members unless the Management Benefits and Compensation Committee establishes and notifies Members of an earlier date.

(F) If a Member does not elect distribution of dividends, the Member will be deemed to have elected to have dividends invested in Company Stock.

(b) Any cash dividends available for distribution directly to Members under subsection (a) shall be subject to the following:

(i) Company instructions to the Trustee regarding the distribution of dividends must be in writing and may be revoked at any time before the dividend is distributed to Members.

(ii) The Company may designate one or more classes of common shares of Company Stock to be subject to distribution of dividends, and need not designate all classes or any particular class.

(iii) Dividend distributions shall be paid in cash no later than 90 days after the end of the Plan Year in which the dividends are received by the Trust.

(iv) The amount distributed to a Member shall be the amount of dividends paid on common shares of Company Stock allocated to the Member as of the record date for the dividend payment that would otherwise be paid on the Company Stock identified by the Company under paragraph (2).

(v) Dividends subject to distribution from the Trust shall be invested pending distribution in the investment fund that is most liquid and least likely to suffer loss of value. Dividends pending distribution shall not be subject to investment direction by Members. Earnings on dividends shall be subject to investment direction by Members as determined by the Management Benefits and Compensation Committee. Earnings on dividends shall not be distributed to Members in connection with distribution of the dividends, and shall be retained in the Trust and allocated to the ESOP Fund of the Member affected.

SECTION VIII

VESTING

8.1. The amount to the credit of a Member’s Account which is attributable to his Participating After-Tax Contributions and Participating Before-Tax Contributions and Investment Plan After-Tax and Investment Plan Before-Tax Contributions and Rollovers shall be fully vested at all times.

8.2. The amount to the credit of a Member’s Account that is attributable to Company Matching, Additional Matching, Profit Sharing and Retirement Contributions shall be fully vested after such Member has completed three (3) years or more of Vesting Service or has attained the age of sixty-five (65).

8.3. If a Member has less than three (3) years of Vesting Service, the amount to the credit of his Account which is attributable to Company Matching, Additional Matching, Profit Sharing and Retirement Contributions shall vest as follows:

Years of Vesting Service	% Vested Attributable to Company Contributions
fewer than 3 years		0
3 years or more		100	%

8.4. The amount to the credit of a Member’s Account that is attributable to Company Matching, Additional Matching, Profit Sharing and Retirement Contributions also shall be fully vested upon the Member’s Retirement, termination of Service by reason of death or total and permanent disability, or upon the occurrence of a Change of Control. If the Member’s termination of Service is for reasons other than death or total and permanent disability or upon the occurrence of a Change in Control, and the amount of the vested portion of a Member’s Company Matching, Additional Matching, Profit Sharing and Retirement Contributions at the time of the Member’s termination of Service is less than one hundred percent (100%), then the Member shall be deemed to have received a distribution of one hundred percent (100%) of such vested interest in such amounts.

SECTION IX

DISTRIBUTION OF BENEFITS

9.1. Attainment of Age 70 ¹⁄₂. The following provisions shall apply pursuant to Section 401(a)(9) of the Code and the Treasury Regulations thereunder:

(a) The Member’s entire interest will be distributed, or begin to be distributed, to the Member no later than the Member’s required beginning date.

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(b) If the Member dies before distributions begin, the Member’s entire interest will be distributed, or begin to be distributed, no later than as follows:

(i) If the Member’s surviving Spouse is the Member’s sole designated beneficiary, distributions to the surviving Spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Member died, or by December 31 of the calendar year in which the Member would have attained age 70 1/2, if later.

(ii) If the Member’s surviving Spouse is not the Member’s sole designated beneficiary, distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Member died.

(iii) If there is no designated beneficiary as of September 30 of the year following the year of the Member’s death, the Member’s entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Member’s death.

(iv) If the Member’s surviving Spouse is the Member’s sole designated beneficiary and the surviving Spouse dies after the Member but before distributions to the surviving Spouse begin, this provision shall apply as if the surviving Spouse were the Member.

For purposes of this Section 9.1, distributions are considered to begin on the Member’s required beginning date (or, if Section 9.1(b)(iv) applies, the date distributions are required to begin to the surviving Spouse. If annuity payments irrevocably commence to the Member before the Member’s required beginning date (or to the Member’s surviving Spouse before the date distributions are required to begin to the surviving Spouse under Section 9.1(b)(iv)), the date distributions are considered to begin is the date distributions actually commence.

(c) Unless the Member’s interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance herewith. If the Member’s interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) Code and the Treasury regulations. Any part of the Member’s interest which is in the form of an individual account described in Section 414(k) of the Code will be distributed in a manner satisfying the requirements of Section 401(a)(9) of the Code and the Treasury regulations that apply to individual accounts.

(d) If the Member’s interest is paid in the form of annuity distributions under the Plan, payments under the annuity will satisfy the following requirements:

(i) The annuity distributions will be paid in periodic payments made at intervals not longer than one year;

(ii) The distribution period will be over a life (or lives) or over a period certain not longer than the period described in Section 9.1(b)(iv);

(iii) Once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter than the maximum permitted;

(iv) Payments will either be nonincreasing or increase only as follows:

(A) By an annual percentage increase that does not exceed the annual percentage increase in a cost-of-living index that is based on prices of all items and issued by the Bureau of Labor Statistics;

(B) To the extent of the reduction in the amount of the Member’s payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period described above dies or is no longer the Member’s beneficiary pursuant to a qualified domestic relations order within the meaning of Section 414(p) of the Code;

(C) To provide cash refunds of employee contributions upon the Member’s death; or

(D) To pay increased benefits that result from a plan amendment.

(e) The amount that must be distributed on or before the Member’s required beginning date (or, if the Member dies before distributions begin, the date distributions are required to begin above) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the Member’s benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the Member’s required beginning date.

(f) Any additional benefits accruing to the Member in a calendar year after the first distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues.

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(g) If the Member’s interest is being distributed in the form of a joint and survivor annuity for the joint lives of the Member and a nonspouse beneficiary, annuity payments to be made on or after the Member’s required beginning date to the designated beneficiary after the Member’s death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the Member using the table set forth in Q&A-2 of section 1.401(a)(9)-6T of the Treasury regulations. If the form of distribution combines a joint and survivor annuity for the joint lives of the Member and a nonspouse beneficiary and a period certain annuity, the requirement in the preceding sentence will apply to annuity payments to be made to the designated beneficiary after the expiration of the period certain.

(h) Unless the Member’s Spouse is the sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain for an annuity distribution commencing during the Member’s lifetime may not exceed the applicable distribution period for the Member under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury regulations for the calendar year that contains the annuity starting date. If the annuity starting date precedes the year in which the Member reaches age 70, the applicable distribution period for the Member is the distribution period for age 70 under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury regulations plus the excess of 70 over the age of the Member as of the Member’s birthday in the year that contains the annuity starting date. If the Member’s Spouse is the Member’s sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the Member’s applicable distribution period, as determined under this Section, or the joint life and last survivor expectancy of the Member and the Member’s Spouse as determined under the Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of the Treasury regulations, using the Member’s and Spouse’s attained ages as of the Member’s and Spouse’s birthdays in the calendar year that contains the annuity starting date.

(i) If the Member dies before the date distribution of his or her interest begins and there is a designated beneficiary, the Member’s entire interest will be distributed, beginning no later than the time described herein, over the life of the designated beneficiary or over a period certain not exceeding:

(i) Unless the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary’s age as of the beneficiary’s birthday in the calendar year immediately following the calendar year of the Member’s death; or

(ii) If the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary’s age as of the beneficiary’s birthday in the calendar year that contains the annuity starting date.

(j) If the Member dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the Member’s death, distribution of the Member’s entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Member’s death.

(k) If the Member dies before the date distribution of his or her interest begins, the Member’s surviving Spouse is the Member’s sole designated beneficiary, and the surviving Spouse dies before distributions to the surviving Spouse begin, this Section 9.1 will apply as if the surviving Spouse were the Member, except that the time by which distributions must begin will be determined without regard to Section 9.1(b)(iv).

(l) For purposes of this Section 9.1, the following terms have the following meanings:

(i) “Designated beneficiary” means the individual who is designated as the beneficiary under the Plan and is the designated beneficiary under Section 401(a)(9) of the Code and section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

(ii) “Distribution calendar year” means a calendar year for which a minimum distribution is required. For distributions beginning before the Member’s death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Member’s required beginning date. For distributions beginning after the Member’s death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to this Section 9.1(b)(iv).

(iii) “Life expectancy” means life expectancy as computed by use of the Single Life Table in section 1.401(a)(9)-9 of the Treasury Regulations.

(iv) “Required beginning date” means April 1 of the calendar year following the calendar year in which the Member (A) attains age 70 ¹⁄₂ or (B) retires, whichever is later; except that, in the case of a Member who is a five percent owner (as defined in Section 416 of the Code) of an Employer Company with respect to the calendar year in which he attains age 70 ¹⁄₂, required beginning date means April 1 following the calendar year in which the Member attains age 70 ¹⁄₂.

9.2. Retirement or Disability. If a Member’s Service is terminated by Retirement or by total and permanent disability, as determined by the Management Benefits and Compensation Committee after review of whatever medical evidence is requested by it, the entire

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amount to the credit of his Account shall be distributed to him, subject to the Member’s consent if required under Section 9.11 of the Plan. Such distribution shall be paid in a lump sum as soon as reasonably practicable after termination of employment, unless, prior to such distribution, the Member elects, in a manner prescribed by the Management Benefits and Compensation Committee, to receive the amount distributable from his Account, together with any earnings thereon, in one of the following manners:

(a) in a lump sum as soon as reasonably practicable following his termination of Service in the amount to the credit of his Account as of the Valuation Date immediately preceding the date distribution is actually made, except that no such election shall be permitted which defers distribution beyond the April 1 following the calendar year in which the Member attains age seventy and one half (70 ¹⁄₂); except that if the Member attained age seventy and one half (70 ¹⁄₂) before January 1, 1988 and is not and has never been an owner of five percent (5%) of the outstanding stock or voting power of the Corporation, he may defer distribution until the April 1 following the calendar year of his Retirement;

(b) in installments, over a period which shall not exceed twenty (20) years, or the life expectancy of the Member or the life expectancy of the Member and his designated Beneficiary if such period is less than twenty (20) years, beginning on or about March 1 of the calendar year following such termination of Service, or any subsequent March 1 selected by the Member which is not later than the March 1 immediately following the calendar year in which the Member attains age seventy and one half (70 ¹⁄₂) and continuing on or about each subsequent anniversary of such commencement date; provided, however, if the Member’s designated Beneficiary is not his Spouse, the maximum installment period shall be reduced, if necessary, so that the present value of amounts payable to the Member for his life expectancy is more than fifty percent (50%) of the present value of the total amounts payable under this option as of the installment commencement date. Payment shall be made in annual installments, the amounts of which are calculated annually by dividing the then current value of his Account (determined as of the last Valuation Date in the year preceding the payment date) by the remaining number of unpaid installments.

All Accounts deferred or distributable in installments shall remain in the Trust Fund until paid, and consequently, shall be subject to periodic revaluation with the attendant risk of market loss in the Fund or Funds selected by the Member pursuant to his investment election. Each installment distribution shall be made from the Funds in the same proportion that the value of the Member’s interest in each such Fund bears to the total value of his Account as of the applicable Valuation Date.

Any payment election made under this subsection 9.2 may be changed at any time prior to the lump sum payment date or the first installment date elected by the Member but may not be changed thereafter, except that a Member or, in the event of his death, his Beneficiary may accelerate the payment of the Member’s entire undistributed Account balance at any time.

9.3. Death. Upon the death of a Member who is an Employee at the time of his death, the amount to the credit of his Account as of the Valuation Date immediately preceding the date of distribution shall be paid as soon as practicable thereafter to the Beneficiary or Beneficiaries designated by him, or if none, to the legal representative of the Member’s estate; provided, however, that prior to such payment, such Beneficiary or estate representative may elect, in a manner prescribed by the Management Benefits and Compensation Committee, to receive the entire amount to the credit of the Member’s Account (determined as of the Valuation Date immediately preceding the date of distribution) in a lump sum as soon as reasonably practicable following the year of the Member’s death.

Upon the death of a Member who is not an Employee at the time of his death, the amount to the credit of his Account, to the extent vested, shall be paid within sixty (60) days after the Committee receives notice of death, if practicable, to the Beneficiary or Beneficiaries designated by him, or if none, to the legal representative of the Member’s estate.

Notwithstanding the foregoing, any Member whose Service has terminated by Retirement or death may elect, prior thereto, to have the distribution of his Account after his death either

(a) in the case of a Member who has commenced receiving installment payments under the Plan and who has attained age seventy and one half (70 ¹⁄₂), continued after his death, in accordance with his election made under Section 9.2(b) of the Plan, to his Spouse or other Beneficiary with provision that if the Spouse or other Beneficiary does not survive the installment payment period elected by the Member, the balance to the credit of his Account will be paid in a lump sum to the estate of such Spouse or other Beneficiary, or

(b) in the case of a Member who has not commenced receiving payments under the Plan or who has not attained age seventy and one half (70 ¹⁄₂), paid, after his death, in annual installments to his Spouse in accordance with the Member’s election under Section 9.2(b) of the Plan over a period not extending beyond the life expectancy of such Spouse, with provision that if such Spouse does not survive the installment payment period elected by the Member, the balance to the credit of his Account will be paid in a lump sum to the estate of his Spouse, or

(c) in the case of a Member who is not married at the time of his death, or who is married and does not select his Spouse as Beneficiary, and who has not commenced receiving payments or who has not attained age seventy and one half (70 ¹⁄₂), paid in annual installments to a designated adult Beneficiary in accordance with Section 9.2(b) of the Plan over a period not extending beyond the

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life expectancy of such designated Beneficiary, with provision that if such designated Beneficiary does not survive the installment payment period elected by the Member, the balance to the credit of his Account will be paid in a lump sum to the estate of such Beneficiary.

Designation of a Beneficiary or Beneficiaries shall be made in writing and filed with the Management Benefits and Compensation Committee in such form and in such manner as such Committee from time to time may prescribe. A designated Beneficiary or Beneficiaries may be changed in the same manner. Any Beneficiary designation made by a Married Member who is an Employee on or after January 1, 1985, shall be ineffective unless his Spouse is the designated Beneficiary or consents to such designation in accordance with Section 205(c)(2)(A) of ERISA. Any Beneficiary designation made (i) by an unmarried Member who subsequently marries or (ii) by a married Member who subsequently remarries shall be ineffective unless his Spouse or new Spouse, respectively, is the designated Beneficiary or consents to such designation in accordance with Section 205(c)(2)(A) of ERISA and Section 401(a)(11) of the Code. If a married Member dies without having made an effective Beneficiary designation, his surviving Spouse shall be considered for all purposes of the Plan as his designated Beneficiary.

9.4. Termination of Service by Reason of Company Reorganization. Subject to Section 9.11 and Section 9.14 hereof, if a Member ceases to be an Employee as the result of a Company reorganization, including a change in ownership of the stock or all or part of the assets of his Employer, then the entire vested amount to the credit of his Account as of the Valuation Date immediately preceding the date of distribution shall be distributed to him in a lump sum as soon as reasonably practicable following such termination of employment; provided, however, that a Member who is to receive a distribution pursuant to this Section 9.4 may elect any other method of distribution otherwise available under the Plan, including, without limitation, the direct transfer of the entire amount to the credit of his Account to an employee benefit plan of his new employer provided such plan meets the requirements for qualification under the Code. If a Member elects to leave his Account in the Trust Fund in lieu of receiving a distribution from the Plan pursuant to this Section 9.4, he shall continue to be a Member in the Plan with respect to amounts credited to his Account, except (a) he shall not be

entitled to share in Company contributions for any month subsequent to the month in which he ceases to be an Employee or to make contributions of his own, and (b) the amount to the credit of his Account shall be one hundred percent (100%) vested and shall be nonforfeitable, shall not be eligible for any withdrawal under Section 9.7 of the Plan and shall remain in the Trust Fund subject to periodic revaluation under the terms of the Plan and the risks thereof until the Account becomes distributable pursuant to the terms of the election made by such Member in accordance with the terms of the Plan. Notwithstanding the foregoing provisions of this Section 9.4, any such Account balance shall be eligible for distribution pursuant to Section 9.8 in the case of financial necessity.

9.5. Other Terminations. If a Member’s Service is terminated for any reason other than Retirement, disability, death, or reorganization of such Member’s Employer, the amount to the credit of his Account which is vested under Section 8 of the Plan as of the Valuation Date immediately preceding the date of distribution, together with the amount of his Participating Contributions made after such Valuation Date, shall be distributed to him, subject to the Member’s consent if required under Section 9.11 of the Plan, as soon as reasonably practicable following such termination date, or as soon thereafter as practicable, and the balance to the credit of his Account shall be forfeited.

Notwithstanding the foregoing, if a Member’s Service is terminated for any reason other than Retirement, disability or death, and as a result of such termination an amount to the credit of his Account is forfeited, the amount of such forfeiture shall be restored by the Company to his Account provided he is reemployed by the Company and within five (5) years of his reemployment date he repays to the Trust Fund an amount of cash equal to the amount distributed to him from the Trust Fund at termination of his Service. Any amounts repaid or restored under this paragraph shall be repaid or restored to the Funds, in accordance with the investment election of the Member in effect at the time of repayment and restoration. If as the result of a termination of Service a Member incurs a forfeiture under this Section 9.5, any amount to the credit of his Account that was vested at such termination of employment shall no longer be subject to forfeiture. Accordingly, if any such Member is reemployed by the Company and resumes his Membership, a separate Account shall be maintained for such Member showing the amount to the credit of his Account which is not subject to forfeiture, including amounts left in the Trust Fund at the time of his termination pursuant to the first paragraph hereof and amounts repaid to the Trust Fund pursuant to the second paragraph hereof.

9.6. Company Contributions for the Year of Termination of Service. If a Member or his Beneficiary is entitled to share in the Additional Matching Contribution or the Profit Sharing Contribution, if any, of the Company for the Plan Year in which his Service terminates, such share shall be paid to him or to his Beneficiary in cash within ninety (90) days after the end of such Year or as soon as practicable thereafter; except that if he has elected or has been deemed under Section 9.11 to have elected an optional form of

distribution, such share shall be added to the amounts payable to him under the optional form of distribution elected or deemed to have been elected by him.

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9.7. Withdrawals. A Member may, by application to the Management Benefits and Compensation Committee, request cash withdrawals from his Account to the extent attributable to his own Participating After-Tax Contributions or Investment Plan After-Tax Contributions and to vested Company contributions. Such withdrawals shall be made as soon as reasonably practicable after submission of the withdrawal application. Withdrawals shall be permitted only in accordance with one of the following options:

(a) A Member may, at any time, withdraw an amount up to the total to the credit of his Account attributable to his Participating After-Tax Contributions, excluding any amount to the credit of his Account attributable to his Participating After-Tax Contributions made for the current Plan Year and the two (2) immediately preceding Plan Years.

(b) A Member with three (3) years or more of Vesting Service may, at any time, withdraw an amount up to the total to the credit of his Account attributable to his own Participating After-Tax Contributions and Company Matching Contributions, excluding any amount to the credit of his Account attributable to Participating and Company Matching Contributions made for the current and the two (2) immediately preceding Plan Years.

(c) A Member who has attained age fifty nine and one half (59 ¹⁄₂) may, by application to the Management Benefits and Compensation Committee, request a cash withdrawal of part or all of the entire vested amount to the credit of his Account. Such withdrawal shall be made as soon as reasonably practicable after submission of the withdrawal application.

(d) Applications for withdrawals under this Section 9.7 shall be made (i) on forms approved by and filed with the Management Benefits and Compensation Committee, (ii) by telephonic, electronic or other data transmission in a manner approved by the Management Benefits and Compensation Committee, or (iii) in any other manner approved by the Management Benefits and Compensation Committee in its sole discretion.

9.8. Financial Necessity. In accordance with rules established by the Management Benefits and Compensation Committee uniformly applicable to all Members, all or any part of the amount to the credit of the Account of a Member (excluding any portion of his Account invested under Section 9.9 in a loan to such Member and any portion of his Account attributable to post-1988 earnings on either his Participating or Investment Plan Before-Tax Contributions) may, in the

sole discretion of the Committee, to the extent that such amount is vested, be distributed to him in cash at any time subsequent to his written application to the Committee showing an immediate and heavy financial need for a distribution in the amount requested. Financial necessity withdrawals shall be permitted out of Participating Before-Tax Contributions and Investment Plan Before-Tax Contributions Accounts only if the immediate and heavy financial need relates to: (a) the purchase of the Member’s principal residence or Funds needed to prevent eviction from or foreclosure on such principal residence; (b) unreimbursed medical expenses of the Member, his Spouse, dependents or beneficiaries greater than seven and one half percent (7.5%) of annual adjusted gross income; (c) tuition and related educational fees for the next twelve (12) months of post-secondary education for the Member, his Spouse, his children, his dependents or his beneficiaries; (d) payments for burial or funeral expenses for the Member’s deceased parent, Spouse, children or dependents; or (e) expenses for the repair of damage to the Member’s principal residence that would qualify for the casualty deduction under section 165 of the Code (determined without regard to whether the loss exceeds 10% of adjusted gross income) and, if requested by the Member, any additional amounts necessary to pay any federal, state and/or local income taxes and/or penalties reasonably anticipated to result from the distribution. The Member’s application shall include a representation (i) that his financial need is not covered by insurance, (ii) that he cannot meet the need by a reasonable liquidation of his liquid assets, (iii) that cessation of contributions under the Plan would not enable him to meet the need, (iv) that he has exhausted his withdrawal rights under the Plan, (v) that repayment of any borrowing from commercial sources or the Plan would itself be a hardship, and (vi) such other information as may be required by the Management Benefits and Compensation Committee. Any financial necessity withdrawal approved by the Committee shall be made (A) from the Member’s Participating After-Tax Contributions Account to the extent available, and if insufficient therefor, then (B) out of any Rollover Account, and if insufficient therefor, then (C) out of the vested portion of his Matching, Additional Matching, Profit Sharing and Retirement Contribution Accounts, and if insufficient therefor, (D) out of his Participating Before-Tax Contributions and Investment Plan Before-Tax Contributions Accounts. Any such distribution to a Member shall be made from the Funds in the same proportion that the value of his interest in each such Fund bears to the total value of his Account as of the applicable Valuation Date.

9.9. Loans to Members. A Member in active Service or a Member not in active Service who is a “party-in-interest” with respect to the Plan (as such term is defined in Section 3(14) of ERISA) may borrow an amount to the credit of his Account which, when added to all outstanding loans to such Member under this Plan (and, for purposes of this Section 9.9, any plan from which the Member’s Account may have been transferred), does not exceed the lesser of:

(a) $50,000 reduced by the excess, if any, of

(i) the Member’s highest outstanding loan balance under the Plan during the twelve month period ending on the day before the date on which the last loan is made, and

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(ii) the Member’s outstanding loan balance on the date on which such loan is made; or

(b) fifty percent (50%) of the total amount to the credit of his Account, to the extent vested.

The minimum amount of any loan shall be Five Hundred Dollars ($500) and all loans shall be in One Hundred Dollar ($100) increments. The maximum number of loans to any Member that may be outstanding at any one time shall be two (2); provided, however, that a third loan may be made to a Member to purchase a principal residence.

All loans shall bear a rate of interest two (2) percentage points higher than the prime rate as published in The Wall Street Journal as of the last day of the month immediately preceding the receipt of the loan application, which rate shall remain in effect for the term of the loan. The loan shall be adequately secured by the Member’s Account and by the Member’s executed promissory note, and shall be repayable, no less frequently than quarterly, in full over a nonrenewable repayment period of from twelve (12) to sixty (60) months, or, in the case of a loan to purchase a principal residence, one hundred twenty (120) months. Prior to the receipt of the proceeds of any loan, any full-time salaried Employee and any part-time salaried Employee who is employed on a regular and continuous schedule by a company participating in the Moody’s corporate payroll system shall authorize repayment of same, together with interest thereon, by regular payroll deductions; provided, however, that a Member may prepay in full the then outstanding balance of any loan.

If a Member defaults for any reason on any scheduled repayment of principal and/or interest, the Management Benefits and Compensation Committee shall have the right (A) to accelerate repayment, (B) to demand immediate repayment of the entire amount outstanding, (C) to renegotiate the terms of the loan, or (D) to approve a financial necessity distribution of the Member’s note subject to the terms of the Plan.

Each loan made hereunder shall be an investment of the Member’s Account over which such Member has exercised investment control and the proceeds of any such loan paid to the Member shall be made from the Funds in which the Member’s Account is invested, in the same proportion that the value of his interest in each such Fund bears to the total value of his Account as of the applicable Valuation Date. All interest payments and repayments of principal shall be credited to the Member’s Account and shall be invested in the Funds in accordance with the investment election of the Member in effect at the time of such payments.

Upon the termination of Service of a Member for any reason other than Retirement or disability at a time when he has any unpaid balance of principal or interest on an outstanding loan, such loan shall thereupon be deemed to be due and payable in full and the value of the Member’s Account shall be reduced by the amount of such unpaid balance of principal and interest in complete satisfaction of the Member’s loan obligation hereunder.

Notwithstanding the foregoing, the termination of Service of a Member shall not cause his loan to become due and payable provided the Member forgoes distribution of his Account during the remaining term of the loan. A Loan which is made to a Member who is a party in interest with respect to the Plan but is not in active Service shall be subject to such additional requirements regarding collateral or otherwise as the Management Benefits and Compensation Committee may determine in accordance with its fiduciary responsibilities under ERISA.

In addition to the terms and conditions specifically set forth herein, all loans under the Plan shall be subject to such other terms and conditions as the Management Benefits and Compensation Committee may from time to time determine under rules applicable to all Members on a reasonably equivalent basis.

9.10. Form of Distribution. All distributions shall be in cash; provided, however, to the extent lump sum distributions on Account of Retirement, death, disability or other termination of Service are from the Moody’s Common Stock Fund or any other Fund which provides for in-kind distributions, a Member, prior to the distribution, may elect to receive whole shares of Moody’s Common Stock and cash in lieu of fractional shares. All partial distributions shall be made from the Funds in the same proportion that the value of the Member’s interest in each such Fund bears to the total value of the Member’s Account as of the applicable Valuation Date. In connection with a distribution, a Participant may elect to receive Company Stock held in the Participant’s ESOP Fund in the form of Company Stock, except that fractional shares shall be distributed in cash.

9.11. Consent. Notwithstanding any other provision of the Plan, if the amount to the credit of a Member’s Account exceeds One Thousand Dollars ($1,000) (the “Involuntary Cashout Amount”), and becomes distributable to him on an immediate lump sum basis pursuant to any provision of this Section 9 of the Plan, no such distribution shall be made to him unless he consents in writing to same pursuant to election forms and notices provided by the Management Benefits and Compensation Committee no more than ninety (90) days and no less than thirty (30) days prior to the anticipated date of the Member’s distribution, as required by Section 1.411(a)-11(c) of the Treasury Regulations. If a distribution is one to which Sections 401(a)(11) and 417 of the Code do not apply, such distribution may commence less than thirty (30) days after the notice required under Section 1.411(a)-11T(c) of the Treasury Regulations is given, provided that:

(a) the Management Benefits and Compensation Committee clearly informs the Member that the Member has a right to a period of at least thirty (30) days after receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option), and

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(b) the Member, after receiving the notice, affirmatively elects a distribution.

Failure to give such consent shall be deemed to be an election to have the amount to the credit of the Member’s Account (to the extent not forfeited) as of the earliest of (i) the giving of such consent by the Member, (ii) the Member’s attainment of age sixty five (65), or (ii) receipt by the Compensation and Benefit Committee of notice of the Member’s death, distributed to the Member (or to his designated Beneficiary if he is not living) in a lump sum within sixty (60) days following such date or as soon thereafter as reasonably practicable; provided, however, if the Member is married at the time of his death, his surviving Spouse shall be considered to be his designated Beneficiary unless such Spouse has consented to the Member’s Beneficiary designation in accordance with Section 205(c)(2)(A) of ERISA. Any election by a Member to receive an optional form of benefit available under the Plan shall be deemed to be his consent to receive such form of benefit. Failure to give the requisite consent hereunder shall also be deemed to be an election by the Member to have the entire amount to the credit of his Account, to the extent not forfeited, remain invested in the Trust Fund and consequently subject to periodic revaluations with the attendant risk of market loss in the Fund or Funds selected by the Member pursuant to his investment election, as may be amended from time to time in accordance with Section 6 hereof. The Member may, at any time thereafter, receive distribution of his entire Account by giving the requisite consent, but he shall no longer be eligible to make any other withdrawals under the Plan nor shall he be eligible to make contributions to the Plan, receive any additional Company Matching Contributions or Additional Matching Contributions under the Plan, or receive any financial hardship distributions from the Plan.

Notwithstanding any other provision of the Plan, if the vested amount credited to a Member’s Account is less than One Thousand Dollars ($1,000) at the time it becomes distributable, such amount shall be distributed as soon as reasonably practicable to the Member or the Beneficiary in a single lump sum. In the event that such distribution is eligible to be rolled over pursuant to Section 9.13, if the Member does not elect to have such distribution paid directly to an eligible retirement plan specified by the Member in a direct rollover or to receive the distribution directly, then the distribution shall be paid in a direct rollover to an individual retirement plan designated by the Management Benefits and Compensation Committee or its successor.

9.12. No Adjustment for Earnings after Applicable Valuation Date. The amount of each distribution from the Plan is based on the amount to the credit of the Member’s Account as of the Valuation Date immediately preceding the date of distribution as specified in this Section 9. In no event (a) shall any portion of the Member’s Account distributed in cash from the Trust Fund be credited with any earnings between such Valuation Date and the distribution date with respect to the amount being distributed, but any such earnings (if any) shall remain in the Trust Fund for reapportionment among active Members pursuant to Section 5.3 of the Plan, nor (b) shall the amount of any such distribution accrue any earnings between the Valuation Date as of which it is removed from the Member’s Plan Account and the date on which such distribution is received by the Member or his Beneficiary; provided, however, that the Trustee for the Trust Fund is authorized and directed to pay over to the recipient of any lump sum distribution that includes shares of Common Stock of the Corporation any dividends paid to it as shareholder of record as of any date which falls between the Valuation Date applicable to such lump sum distribution and the date the shares are transferred to the distributee by the Corporation’s stock registration agent.

9.13. Direct Rollover Treatment for Certain Withdrawals and Distributions. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this Section 9.13, a distributee may elect, at the time and in the manner prescribed by the Management Benefits and Compensation Committee, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.

An eligible rollover distribution is a distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include:

(a) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or the joint life expectancies) of the distributee and the distributee’s designated Beneficiary, or for a specified period of ten (10) years or more;

(b) any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; and

(c) any hardship withdrawal.

An eligible retirement plan is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, or a qualified trust described in Section 401(a) of the Code, and (i) a plan described in Section 403(b) of the Code, or (ii) an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan, that accepts the distributee’s eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving Spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity.

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A distributee is an Employee or former Employee. In addition, the Employee’s or former Employee’s Spouse or former Spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, is a distributee with regard to the interest of the Spouse or former Spouse.

A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee.

In addition, a Beneficiary who is not the Member’s Spouse but who is a “designated beneficiary” within the meaning of Section 401(a)(9)(E) of the Code may elect to have the portion of the distribution that otherwise is an eligible rollover distribution transferred in a trustee-to-trustee transfer to an individual retirement account or an individual retirement annuity that has been established for purposes of receiving such distribution.

A distributee who is a Member, a Spouse of a Member or an alternate payee may elect to directly roll over all or a portion of the eligible rollover distribution to a Roth IRA in a manner permitted by guidance issued by the Internal Revenue Service.

In the event that the provisions of this Section 9.13 or any part thereof cease to be required by law as a result of subsequent legislation or otherwise, this Section 9.13 or applicable part thereof shall be ineffective without necessity of further amendment of the Plan.

Any such election shall be made (i) on forms approved by and filed with the Management Benefits and Compensation Committee, (ii) by telephonic, electronic or other data transmission in a manner approved by the Management Benefits and Compensation Committee, or (iii) in any other manner approved by the Management Benefits and Compensation Committee in its sole discretion.

9.14. Limitation on Distribution of Before-Tax Contributions. Notwithstanding any other provisions of the Plan, Participating Before-Tax Contributions and Investment Plan Before-Tax Contributions and any income allocable to such amounts, shall not be distributable earlier than the Member’s Retirement, severance of employment, death or disability, as determined in accordance with Section 401(k)(2) of the Code and the Treasury Regulations thereunder, or upon a showing of financial necessity in accordance with Section 9. 8 hereof. Such Before-Tax Contributions also may be distributed in accordance with Section 401(k)(10) of the Code and solely in the form of a “lump sum distribution” (as defined in Section 401(k)(10)(B)(ii) of the Code), upon termination of the Plan without the establishment or maintenance by the Company of another defined contribution plan (other than an “employee stock ownership plan”, as defined in Section 4975(e)(7) of the Code).

9.15. Special ESOP Rule. Notwithstanding any other provision of the Plan to the contrary, (i) a Member shall be entitled to elect to commence distribution of his vested Account under the Plan no later than the time required by Section 409(o) of the Code, and (ii) distributions shall be made over a period no longer than the amount permitted under Section 409(o)(1)(C) of the Code.

SECTION X

ADMINISTRATION OF PLAN AND MANAGEMENT OF PLAN ASSETS

10.1. The Management Benefits and Compensation Committee shall be the named fiduciary (the “Named Fiduciary”) which shall have authority to control and manage the operation and administration of the Plan and to manage and control its assets. The Management Benefits and Compensation Committee shall consist of not less than three (3) nor more than seven (7) members, as may be appointed by the Board of Directors from time to time. Any member of the Management Benefits and Compensation Committee may resign at will by notice to the Board of Directors or be removed at any time (with or without cause) by the Board of Directors.

10.2. The Named Fiduciary may from time to time allocate fiduciary responsibilities among its members and may designate persons other than members of the Named Fiduciary to carry out fiduciary responsibilities under the Plan, and such persons shall be deemed to be fiduciaries under the Plan with respect to such delegated responsibilities. Fiduciaries may employ one or more persons to render advice with regard to any responsibility such fiduciaries have under the Plan.

10.3. The Named Fiduciary (and its delegates) shall have the exclusive right to interpret any and all of the provisions of the Plan and to determine any questions arising thereunder or in connection with the administration of the Plan. Any decision or action by the Named Fiduciary (and its delegates) shall be conclusive and binding upon all Employees, Members and Beneficiaries. In all instances the Named Fiduciary (and its delegates) shall have complete discretionary authority to determine eligibility for participation and benefits under the Plan, and to construe and interpret all provisions of the Plan and all documents relating thereto including, without limitation, all disputed and uncertain terms. All deference permitted by law shall be given to such constructions, interpretations and determinations.

10.4. Any action to be taken by the Named Fiduciary shall be taken by a majority of its members either at a meeting or by written instrument approved by such majority in the absence of a meeting. A written resolution or memorandum signed by one Committee member and the secretary of the Management Benefits and Compensation Committee shall be sufficient evidence to any person of any action taken pursuant to the Plan.

10.5. Any person, corporation or other entity may serve in more than one fiduciary capacity under the Plan.

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SECTION XI

AMENDMENT OR TERMINATION

11.1. No part of the corpus or income of the Trust Fund shall be used for or diverted to purposes other than for the exclusive purpose of providing benefits to Members and their Beneficiaries and defraying reasonable expenses of administering the Plan. Subject to this provision, the Plan may be amended at any time by action of the Management Benefits and Compensation Committee in accordance with its established rules of procedure, and any amendment may be given retroactive effect to the extent permitted by applicable law; provided, however, that no amendment shall have the effect of depriving any Member or Beneficiary of all or any part of the amount then to the credit of his Account under the Plan; and provided, further, that no such amendment which would materially increase the cost of the Plan to the Company shall be made without the consent of the Board of Directors. The Management Benefits and Compensation Committee may, from time to time, delegate its authority to amend the Plan to any committee established by it pursuant to Section 10 of the Plan in accordance with their established rules of procedure.

11.2. The Plan may be terminated or partially terminated, and contributions under the Plan may be completely discontinued, at any time by the Board of Directors in accordance with its established rules of procedure. In the event of termination or partial termination of the Plan or complete discontinuance of contributions under the Plan, (a) no contribution shall be made thereafter with respect to affected Members except for a month or year the last day of which coincides with or precedes such termination, partial termination or discontinuance; (b) no distribution with respect to affected Members shall be made except either as provided in the Plan or as determined by the Board of Directors; (c) the rights of all affected Members to the amounts to the credit of their Accounts as of the date of such termination, partial termination or discontinuance shall vest; and (d) no person shall have any right or interest except with respect to the Trust Fund.

SECTION XII

MISCELLANEOUS

12.1. Except as otherwise required by law, no benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge and shall not be subject to attachment, garnishment or other legal process. Notwithstanding the foregoing and any other provision of the Plan to the contrary, distribution of the amount to the credit of a Member’s Account shall be made in accordance with the terms of a qualified domestic relations order to a Member’s Spouse, former Spouse, child or other dependent or any person specified in such order, provided such order and the terms thereof meet the requirements of Section 206(d) of ERISA and Section 401(a)(13) of the Code and the regulations thereunder. All domestic relations orders received by the Plan shall be handled in accordance with reasonable procedures established under the Plan in accordance with such provisions of ERISA and the Code, including a procedure which will permit the distribution to a payee specified in a qualified domestic relations order an amount not exceeding the amount withdrawable by an active Member pursuant to Section 9.7 of the Plan.

12.2. Neither the establishment of the Plan nor participation herein shall confer upon any person any right to be continued as an employee of the Company, and the Company reserves the right to discharge any employee whenever in its sole judgment the interest of the Company so requires. The Plan shall be construed, administered and enforced according to the laws of the State of New York, except to the extent that State law shall have been preempted by the provisions of ERISA or any other laws of the United States heretofore or hereafter enacted, as the same may be amended from time to time.

12.3. Notwithstanding any provision of the Plan to the contrary, any Member with less than three (3) years of Vesting Service who ceases to be an Employee for reasons related to fraud, dishonesty or serious misconduct, as conclusively determined by the Management Benefits and Compensation Committee, shall forfeit the entire amount to the credit of his Account which is attributable to Company Matching Contributions, Additional Matching Contributions, Profit Sharing Contributions and Retirement Contributions.

12.4. If, in the judgment of the Management Benefits and Compensation Committee, a Member or Beneficiary to whom benefits shall be due under the Plan shall be or become incompetent, either physically or mentally, the Management Benefits and Compensation Committee shall have the right to determine to whom such benefits shall be paid for the benefit of such Member or Beneficiary.

12.5. Each Member and Beneficiary shall keep the Company advised of his current address. If amounts become distributable under the Plan and the Company is unable to locate the Member or Beneficiary to whom the distributions are payable, the Account of such Member or Beneficiary shall be closed after three (3) years from the time such distributions first become payable and the amount then to the credit of such Account shall be applied to reduce Company Matching Contributions. If, however, such Member or Beneficiary subsequently makes proper claim to the Company for such amount, the amount to which the Member or Beneficiary is entitled will be restored to the Trust Fund by the Company out of its next contribution, if any, and will be distributable in accordance with the terms of the Plan.

12.6. The Plan shall be administered in accordance with the requirements of ERISA and the Code. No benefits shall become distributable under the Plan until proper application for same has been filed with the Company together with whatever consents by the

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Member and his Spouse, if any, may be required under ERISA and the Code. The Company and the Management Benefits and Compensation Committee shall be entitled to rely conclusively upon documentation presented to its or their satisfaction that a Member is not married or, if such Member is married at the time of reference, that such Member’s Spouse cannot be located or that the consent of such Spouse is not obtainable for whatever circumstances the Secretary of the Treasury prescribes by regulations as sufficient to justify the commencement or waiver of benefits without spousal consent.

12.7. The Company may elect to pay any administrative fees or expenses. Otherwise the expenses and fees shall be paid from the Trust Fund.

12.8. Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to military service will be provided in accordance with Code Section 414(u). In addition: (a) effective January 1, 2007, the Plan shall apply the requirements of Code Section 401(a)(37) (relating to death benefits for Members who die while performing qualified military service) and Code Section 414(u)(9) (relating to treatment in the event of death or disability resulting from active military service), and (b) effective January 1, 2009, differential wage payments shall be treated as provided in Code Section 414(u)(12).

12.9. Notwithstanding anything in this Plan to the contrary, in accordance with the terms of the Employee Benefits Agreement entered into on or about September 30, 2000 between the Corporation and The New D&B Corporation (“New D&B”) (“Moody’s EBA”):

(a) To the extent the full vested account balances in the Profit Participation Plan of The Dun & Bradstreet Corporation (“D&B PPP”) of Members are transferred by the trustee of the D&B PPP to the Trustee of this Plan, such transfers shall be made in kind based on those investment funds in which such account balances are then invested (including, but not limited to, the stock funds); provided, however, that loans made under the D&B PPP to Members shall be transferred to this Plan in this form of notes.

(b) With respect to any Member in this Plan who was a participant in the D&B PPP as of the Effective Time (as such term is defined in the Moody’s EBA),

(i) all shares of “New D&B Common Stock” (as such term is defined in the Moody’s EBA) held therein in such Member’s “New D&B Stock Fund” (as such term is defined in the Moody’s EBA) shall be transferred to a non-employer stock fund in this Plan known as “the D&B Common Stock Fund”; and

(ii) all shares of “Moody’s Common Stock” (as such term is defined in the Moody’s EBA) held therein in such Member’s “Moody’s Stock Fund” (as such term is defined in the Moody’s EBA) shall be transferred to an employer stock fund in this Plan known as the Moody’s Common Stock Fund.

From and after the Effective Time, no Member may transfer or contribute any amounts to the New D&B Stock Funds.

(c) If, during the one-year period following the Effective Time, an employee of one of the members of the “D&B Group” (as such term is defined in the Moody’s EBA) (“D&B Employer”) terminates his or her employment with such D&B Employer and then immediately commences employment with the Corporation, such employee’s past service with the D&B Group shall be recognized for all purposes under this Plan, to the extent recognized under the D&B PPP.

SECTION XIII

DETERMINATION OF BENEFITS AND BENEFIT CLAIMS PROCEDURES

13.1. All benefits payable under the Plan shall be authorized in writing by the Management Benefits and Compensation Committee or by such person or committee (such as, but not limited to, an “appeals committee”) to whom such responsibility may have been delegated by the Management Benefits and Compensation Committee pursuant to the power vested in it by Section 10 and shall be communicated in writing to the Member or Beneficiary. Any Employee, Member or Beneficiary for whom no benefits have been authorized, or who disputes the amount of any benefit authorized hereunder, may request the Management Benefits and Compensation Committee, through its appeals committee, either (a) informally or (b) formally in writing, to review and reconsider its determination. Such request may be made to any person or persons authorized by the Management Benefits and Compensation Committee to review same. Upon review and reconsideration of any determination by the appeals committee, the Management Benefits and Compensation Committee shall give or cause to be given to the applicant written notice of its decision. Such notice shall also inform the applicant that he or she may request a further review and reconsideration of the Management Benefits and Compensation Committee’s determination within a specified period of time, which, in no event, shall be less than sixty (60) days from the giving of such notice. Any such requests to the Management Benefits and Compensation Committee must specify in writing the position being taken by the Employee, Member or Beneficiary and the reasons therefor. Such notice shall be filed with the person or persons designated in the notice given by the Management Benefits and Compensation Committee. The Management Benefits and Compensation Committee may thereupon request such further information as it may deem appropriate, and the Management Benefits and Compensation Committee or the applicant shall have the right to require an informal hearing. All decisions by the Management Bene-

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fits and Compensation Committee shall be signed by at least one (1) member of the Management Benefits and Compensation Committee and communicated in writing to the applicant and to the Management Benefits and Compensation Committee and shall be final and binding on both.

13.2. The Management Benefits and Compensation Committee shall be appointed by the Board of Directors, and shall consist of not less than three (3) nor more than five (5) members, at least one (1) of whom shall be a non-employee member of the Board of Directors. Any member may resign at will by notice to the Management Benefits and Compensation Committee or be removed (with or without cause by the Board of Directors. The Board of Directors, upon written application to it by any Employee, Member or Beneficiary, shall have final authority under the Plan to review any decision of the Management Benefits and Compensation Committee with respect to the benefits and the amount or form thereof payable under the Plan to any such applicant. The Board of Directors shall have the authority to engage, and rely on the advice of, independent experts, counsel and consultants in the performance of its responsibilities, who may but need not be the same independent experts, counsel or consultants engaged by the Management Benefits and Compensation Committee, and upon request of the Management Benefits and Compensation Committee, the Board of Directors may compensate any such person or persons out of Plan assets.

SECTION XIV

LIMITATIONS ON BENEFITS

14.1. Limitations on Annual Additions. In no event may a Member’s Annual Addition in any Limitation Year exceed the maximum permitted under Section 415 of the Code. For this purpose:

(a) “Annual Addition” means, with respect to any Defined Contribution Plan, the aggregate of -

(i) the amount of the Member’s Participating After-Tax and Before-Tax Contributions and his Investment Plan After-Tax and Before-Tax Contributions;

(ii) the aggregate Company Matching, Additional Matching, Profit Sharing and Retirement Contributions and forfeitures allocated to the Member’s Account for the Limitation Year; and

(iii) contributions allocated to any individual medical benefit Account of a 5% owner under a Defined Benefit Plan.

(b) “Limitation Year” means the calendar year.

(c) “Defined Benefit Plan” means any retirement plan maintained by the Company or any affiliated employer within the meaning of Section 415(h) of the Code that is not a Defined Contribution Plan.

(d) “Defined Contribution Plan” means any retirement plan maintained by the Company or any affiliated employer within the meaning of Section 415(h) of the Code which provides for an individual Account for each participant and for benefits based solely on the amount contributed to such Account (and any income, expense, gains and losses, and forfeitures of Accounts of other participants which may be allocated to such Account.

14.2. Maximum Annual Addition. In no event may a Member’s Annual Addition under all Defined Contribution Plans exceed the lesser of: Forty Thousand Dollars ($40,000) (as adjusted pursuant to Section 415(c)of the Code), or one hundred percent (100%) of 415 Compensation.

For purposes of this Plan, “415 Compensation” means the Member’s compensation, within the meaning of Treas. Reg. § 1.415-2(d)(1) and (2), for a Limitation Year from the Company and all Affiliated Employers, including, to the extent includible in gross income, the Member’s wages, salary, and other amounts (including fringe benefits, reimbursements, expense allowances, vacation pay, and long-term disability benefits) received or made available or, as applicable, accrued for personal services actually rendered, earned income from sources outside the United States whether or not excluded from taxable gross income, non-deductible moving expenses paid on behalf of or reimbursed to the Member, non-qualified stock options taxable in the year granted, and, as applicable, amounts previously not included which are earned but not paid in such period because of the timing of pay periods and pay days but are paid during the first few weeks following the end of such period, but excluding deferred compensation, stock options and other distributions that receive special tax benefits. 415 Compensation also includes any amounts deferred pursuant to Section 402(g)(3) of the Code, excludable from the gross income of the Member pursuant to Section 125 of the Code, and qualified transportation fringe benefits described in Section 132(f)(4) of the Code. 415 Compensation includes payments made by the later of 2-1/2 months after severance from employment, or the end of the Limitation Year that includes the date of severance from employment, if, absent a severance from employment, such payments would have been paid to the Member while the Participant continued in employment with the Company, and are regular compensation for services during the Member’s regular working hours, compensation for services outside the employee’s regular working hours (such as overtime or shift differential), commissions, bonuses or other similar compensation.

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14.3. Adjustment for Excess Annual Additions.

(a) If as a result of the allocation of forfeitures, a reasonable error in estimating a Member’s compensation or other facts and circumstances to which Treasury Regulations promulgated under Code Section 415 shall be applicable, the Annual Additions under this Plan would cause the maximum Annual Additions to be exceeded for any Member, the Management Benefits and Compensation Committee shall

(i) return any Participating After-Tax and Before-Tax Contributions and Investment Plan After-Tax and Before-Tax Contributions credited for the Limitation Year to the extent that the return would reduce the “excess amount” in the Member’s Account,

(ii) hold any “excess amount” remaining after the return of any such contributions in a “Section 415 suspense Account”,

(iii) allocate and reallocate the “Section 415 suspense Account” in the next Limitation Year (and succeeding Limitation Years if necessary) to all Members in the Plan before any contributions which would constitute Annual Additions are made to the Plan for such Limitation Year, and

(iv) reduce contributions to the Plan for such Limitation Year by the amount of the “Section 415 suspense Account” allocated and reallocated during such Limitation Year.

(b) For purposes of this Section, “excess amount” for any Member for a Limitation Year shall mean the excess, if any, of

(i) the Annual Additions which would be credited to his Account under the terms of the Plan without regard to the limitations of Code Section 415, over

(ii) the maximum Annual Additions determined pursuant to this Section 14.

(c) For purposes of the Section, “Section 415 suspense Account” shall mean an unallocated Account equal to the sum of “excess amounts” for all Members in the Plan during the Limitation Year. The “Section 415 suspense Account” shall not share in any earnings or losses of the Trust Fund.

This Section 14.3 is effective only for Limitation Years beginning before July 1, 2007. EPCRS is the only correction method for correcting excess Annual Additions for Limitation Years beginning on or after July 1, 2007.

14.4. Interpretation. This Section shall be interpreted in accordance with regulations under Section 415 of the Code, as amended by the Tax Equity and Fiscal Responsibility Act of 1982, the Deficit Reduction Act of 1984, and any successor legislation, including, but not limited to the Tax Reform Act of 1986, and any applicable dollar limitations (whether higher or lower than the amounts specifically stated herein) imposed by such legislation if different from the dollar amounts specified herein shall be incorporated herein and shall supersede such stated dollar amounts as though the Plan had been amended accordingly.

14.5. Lump Sum Contribution. For purposes of this Section 14 only, any lump sum Employee contribution made with respect to the Member’s prior Compensation which is made not later than thirty (30) days after the end of a Limitation Year shall be deemed credited to the Member’s Account as of the last day of such Limitation Year; provided, that if all or any portion of such contribution would be in excess of the limitations for such Member for such Limitation Year, such excess amount shall be credited to the Member’s Account as of the date actually contributed.

SECTION XV

MERGERS, CONSOLIDATIONS AND ASSETS OR LIABILITY TRANSFERS

15.1. In the case of any merger or consolidation with, or transfer of assets or liabilities to, any other plan, each Member and Beneficiary under the Plan shall be entitled to receive a benefit immediately after the merger, consolidation or transfer (if the merged, consolidated or transferee plan then terminated) which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation or transfer (if the Plan had then terminated).

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SECTION XVI

TOP-HEAVY CONTINGENCY

16.1. The provisions of this Section 16 shall apply only in a Plan Year in respect of which the Plan becomes top-heavy as herein defined and thereafter to the extent provided herein.

16.2. The Plan shall be considered to be top-heavy in any Plan Year if the aggregation group of which the Plan is required to be a part becomes top-heavy for such year; provided, however, the Plan shall not be considered to be top-heavy in such Plan Year if, by the inclusion of additional plans permitted to be included in such required aggregation group, the resulting permissive aggregation group is not top-heavy for such year.

(a) The required aggregation group as to the Plan shall include the Plan and any pension, profit sharing or stock bonus plan of the Company, its subsidiaries and any other corporation or entity under common control by or with the Company, if such plan is intended to be a qualified plan under Section 401(a) of the Code, and either

(i) includes or has included any key employee as a participant in this Plan Year or in the five (5) preceding Plan Years, or

(ii) enables the Plan or any such plan to meet the anti-discrimination requirements and minimum participation standards applicable to qualified plans under the Code.

(b) The permissive aggregation group shall include plans in the required aggregation group and any other comparable plan of an employer in the controlled group specified in subparagraph (a) or to which such employer contributes, if such plan is intended to be qualified under Section 401(a) of the Code and continues to meet the anti-discrimination requirements and minimum participation standards of the Code when considered together with the plans in the required aggregation group.

16.3. A required aggregation group or a permissive aggregation group shall be considered to be top-heavy if, as of the applicable determination dates, the sum of the present value of the cumulative accrued benefits for key employees under all defined benefit plans in such group and the aggregate value of the Accounts of key employees under all defined contribution plans in such group exceeds sixty percent (60%) of the sum of such values for all employees participating in or eligible for participation in such plans.

(a) The applicable determination date for each such plan shall be the last day of its plan year which immediately precedes the plan year for which such plan is being tested or, in the case of a new plan, the last day of its first plan year.

(b) The present value of accrued benefits of employees under each defined benefit plan shall be determined as of the plan’s most recent Valuation Date within the twelve (12) month period ending on the determination date (or, in the case of a new plan, as of the determination date) and shall be based upon the assumption that each employee terminated his vesting service on the determination date with a fully vested accrued benefit on such date and elected a lump sum distribution in an amount equal to the present value of such benefit based upon the actuarial assumptions, mortality rates and assumed earnings used to maintain the plan’s minimum funding account as defined in Section 412 of the Code.

(c) The present value of accrued benefits and the values of Accounts used in the sixty percent (60%) calculation described herein shall be increased by all distributions made within the five (5) year period ending on the determination date to employees covered by plans in the aggregation group.

(d) Rollover Accounts, benefits of former key employees, and benefits of persons not employed for the five (5) year period ending on the determination date shall not be taken into account to the extent provided by Section 416(g)(4) of the Code.

(e) Employer matching contributions shall be taken into account for purposes of satisfying the minimum contribution requirements of Section 416(c)(2) of the Code and the Plan. The preceding sentence shall apply with respect to matching contributions under the Plan or, if the Plan provides that the minimum contribution requirement shall be met in another plan, such other plan. Employer matching contributions that are used to satisfy the minimum contribution requirements shall be treated as matching contributions for purposes of the actual contribution percentage test and other requirements of Section 401(m) of the Code.

(f) Notwithstanding the foregoing, the present values of accrued benefits and the amounts of account balances of an employee as of the determination date shall be increased by the distributions made with respect to the employee under the plan and any plan aggregated with the plan under Section 416(g)(2) of the Code during the 1-year period ending on the determination date. The preceding sentence shall also apply to distributions under a terminated plan which, had it not been terminated, would have been aggregated with the plan under Section 416(g)(2)(A)(i) of the Code. In the case of a distribution made for a reason other than severance from employment, death, or disability, this provision shall be applied by substituting “5-year period” for “1-year period.” The accrued benefits and accounts of any individual who has not performed services for the employer during the 1-year period ending on the determination date shall not be taken into account.

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16.4. A key employee shall include any employee or former employee (including any deceased employee) who at any time during the plan year that includes the determination date was an officer of the employer having annual compensation greater than $ 130,000 (as adjusted under Section 416(i)(1) of the Code for plan years beginning after December 31, 2002), a 5-percent owner of the employer, or a 1-percent owner of the employer having annual compensation of more than $ 150,000. For this purpose, annual compensation means compensation within the meaning of Section 415(c)(3) of the Code. The determination of who is a key employee will be made in accordance with Section 416(i)(1) of the Code and the applicable regulations and other guidance of general applicability issued thereunder.

16.5. A non-key employee shall include any Employee who is not a key employee.

16.6. In the event the Plan becomes top-heavy for any Plan Year, all plans in the required aggregation group will also be top-heavy for such year and all non-key employees will be participating in more than one top-heavy plan. In such event, there shall be provided to each non-key employee a minimum benefit under the Company’s Retirement Account Plan equal to:

(a) an annual retirement benefit (with no ancillary benefits) commencing at normal retirement at or after age 65 equal to three percent (3%) of his average annual compensation for each year of service from and after December 31, 1983 during which this Plan was top-heavy, excluding any such service in excess of ten (10) years; minus

(b) the amount of such retirement benefit which could be purchased for such Employee by application of all amounts allocated to his Accounts under this Plan and any other defined contribution plan of the Company as the result of employer contributions and forfeitures for all Plan Years during which such Employee was a Member, but excluding any such allocations which were forfeited by such Employee. The determination of the amount of such retirement benefit which could be purchased for each non-key employee shall be made by the Company’s independent actuaries as of the date of such Employee’s termination of service and shall utilize the earnings and actuarial assumptions most recently published by the Pension Benefit Guaranty Corporation.

Average annual compensation of a non-key employee for purposes of the foregoing shall mean his average annual aggregate compensation, as determined under Section 415(c)(3) of the Code, for the five (5) consecutive years of his service resulting in the highest such average (or for the actual years of his service if fewer than five (5)).

16.7. Notwithstanding any provision in the Plan to the contrary, if the Plan becomes top-heavy in any Plan Year, the accrued benefits of all Employees in active service from and after such year shall vest and become nonforfeitable after three (3) years of vesting service.

16.8. In the event the Plan becomes top-heavy, an Employee’s compensation taken into account for purposes of the Plan shall not exceed $200,000 for each Plan Year in which the Plan is or continues to be top-heavy, except that such maximum shall be automatically adjusted without Plan amendment to reflect cost-of-living adjustments made to such amount by the Secretary of the Treasury pursuant to Section 416(d)(2) of the Code.

MOODY’S  2014 10K 151

APPENDIX A

TREATMENT OF KMV EMPLOYEES

The following provisions shall apply to employees of KMV commencing on July 1, 2002:

1. KMV’s Status as a Company under the Plan. KMV is a Company under the Plan effective as of July 1, 2002.

2. Application of Plan Provisions to KMV Participants. Except as specifically noted herein, all provisions of the Plan shall apply to Eligible Employees who are Employees of KMV and who are hired on or before December 31, 2002 (“KMV Eligible Employees”).

3. Participating Contributions and Investment Plan Contributions. KMV Eligible Employees shall be eligible to make Participating Contributions and Investment Plan Contributions under the Plan commencing with the first payroll after July 1, 2002 (or, if later, the date such a KMV Eligible Employee would have been eligible to contribute under the terms of the Plan).

4. Matching Contributions and Additional Matching Contributions. Notwithstanding any other provision of the Plan to the contrary, for the Plan Year ending December 31, 2002, KMV Eligible Employees shall not be eligible to be credited with Matching Contributions or Additional Matching Contributions.

5. Special Profit Sharing Contributions for 2002. KMV Eligible Employees who are Employees on December 31, 2002 shall be eligible to be credited with a Special Profit Sharing Contribution, determined as follows:

a. Eligibility. Only those KMV Eligible Employees who are actually performing services for KMV or are on an approved leave of absence as of December 31, 2002 shall be eligible to be credited with a Special Profit Sharing Contribution.

b. Discretionary Nature of Contribution. The making of the Special Profit Sharing Contribution shall be at the Company’s discretion.

c. Amount of Contribution. The amount of the Special Profit Sharing Contribution, if made, that is credited to a KMV Eligible Employee shall equal a percentage (not to exceed fifteen percent (15%)) determined by the Company of the KMV Eligible Employee’s Compensation earned from the date of the closing of the transaction by which Moody’s Corporation acquired the stock of KMV through December 31, 2002; provided, however, that in no event shall the amount of such Special Profit Sharing Contribution on behalf of any KMV Eligible Employee exceed Thirty Thousand Dollars ($30,000) reduced by the amount (if any) contributed by KMV on behalf of the KMV Eligible Employee for 2002 to the SEP IRA maintained by KMV.

d. Vesting of Contribution. The Special Profit Sharing Contribution shall be 100% vested at all times.

e. Distribution of Contribution. For purposes of Section IX of the Plan, the Special Profit Sharing Contribution shall be treated in the same manner as Matching Contributions made under the Plan.

152 MOODY’S  2014 10K

EX-10.30

EXHIBIT 10.30

THIRD AMENDMENT TO THE

MOODY’S CORPORATION

CAREER TRANSITION PLAN

The Moody’s Corporation Career Transition Plan is hereby amended as follows, effective as of the date this Third Amendment is adopted except where otherwise noted:

1. Section 1.4 (b) is amended by adding the following language to the end thereof: “and initiated by the Participating Company”.

2. Section 2.2 is amended by adding the following new sentence to the end thereof:

Any amounts that otherwise would have been paid during the period beginning on the date of termination and ending on the first applicable payment date shall be paid on the first applicable payment date.

3. A new Section 5.10 is added to read as follows:

The Plan is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and administered in accordance with such intention. Any payment under the Plan that may be excluded from coverage under Section 409A of the Code either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from such coverage to the maximum extent possible. For purposes of Section 409A of the Code, each installment payment provided under this Plan shall be treated as a separate payment. To the extent required by Section 409A of the Code, any payments to be made under this Plan upon a termination of employment shall be made only if such termination of employment constitutes a “separation from service” for purposes of Section 409A of the Code.

4. The references to “Medical, dental and life insurance benefits” in Schedule A and Schedule B are revised to read “Medical, dental, vision and life insurance benefits”, effective as of January 1, 2015.

MOODY’S  2014 10K 153

EX-10.33

EXHIBIT 10.33

SECOND AMENDMENT TO THE

MOODY’S CORPORATION

CAFETERIA PLAN

(EFFECTIVE JANUARY 1, 2008)

The Moody’s Corporation Cafeteria Plan (effective January 1, 2008) is hereby amended as follows, effective as of January 1, 2014:

1. The following subparagraphs are added to Section 4.5:

(j) If the Participant experiences a reduction of hours below 30 hours per week during a Plan Year, the Participant may cancel his or her health coverage provided that he or she obtains coverage on the Health Insurance Marketplace/Exchange no later than the first day of the second month following the month of cancellation of coverage under this Plan.

(k) A Participant may make an election change by cancelling health coverage under this Plan if he or she experiences a special enrollment period under the Health Insurance Marketplace/Exchange and obtains coverage on the Health Insurance Marketplace/Exchange immediately upon the cancellation of his or her coverage under this Plan.

2. Section 5.3 is amended to read as follows:

Account Limits. The total Contributions to the Health Care Reimbursement Account of a Participant during any Plan Year shall not exceed the lesser of (i) the amount elected by the Participant or (ii) the statutory maximum amount of $2,500 (as indexed annually under Code section 125(i)). The Administrator may limit such Contributions by a Participant to a lower amount in its discretion, to the extent such limitation is permitted by applicable law.

3. A new Section 5.9 is added to read as follows:

Limited Excepted Benefit. The Health Care Reimbursement Account is a limited excepted benefit under Code Section 9831.

154 MOODY’S  2014 10K

EX-12.1

Exhibit 12.1

STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

	Years Ended December 31
amounts in millions, except fixed charges ratio	2014		2013		2012			2011		2010
Earnings:
Income before income taxes and noncontrolling interests	$	1,461.0	$	1,169.3	$	1,024.0		$	839.8	$	714.4
Add:
Fixed Charges (see below)	$	152.2	$	125.6	$	98.7		$	101.7	$	85.3
Amortization of capitalized interest	$	0.8	$	0.8	$	0.7		$	0.2	$	0.2
Less:
Capitalized interest	$	—	$	—	$	—		$	3.1	$	1.8
Total earnings for computation of ratio	$	1,614.0	$	1,295.7	$	1,123.4		$	938.6	$	798.1
Fixed Charges:
Interest expense on borrowings (1)	$	118.4	$	92.3	$	73.8		$	65.5	$	52.2
Interest expense (income), net on unrecognized tax benefits and other tax-related liabilities (2)	$	5.8	$	8.6	$	(0.4	)	$	8.7	$	7.7
Interest capitalized	$	—	$	—	$	—		$	3.1	$	1.8
Estimated interest portion of rental expense (3)	$	28.0	$	24.7	$	25.3		$	24.4	$	23.6
Total Fixed Charges	$	152.2	$	125.6	$	98.7		$	101.7	$	85.3
Ratio of earnings to fixed charges		10.6		10.3		11.4			9.2		9.4

(1) Amounts are net of gains and losses on certain interest rate swaps that the Company utilizes to mitigate interest rate risk on its borrowings.

(2) Represents net interest expense (income) related to unrecognized tax benefits and other tax-related liabilities. There may be periods whereby interest expense may be wholly or partially offset by reductions in accrued interest due to the completion of tax audits or updates to the Company’s tax positions which could result in the reversal of accrued interest.

(3) Represents one third of rent expense which is our estimate of the interest component of rent expense.

EX-21

EXHIBIT 21

SUBSIDIARIES OF MOODY’S CORPORATION

The following is a list of active, majority owned subsidiaries of Moody’s Corporation as of December 31, 2014.

U.S. Entities

Amba Research USA Inc.	Delaware
BPA Technologies, Inc.	California
Copal Partners (US) Inc.	Delaware
CSI Global Education, US, Inc.	Delaware
Exevo Inc.	Delaware
Foundation for Fiduciary Studies, Inc.	Delaware
ICRA Global Capital, Inc.	California
ICRA Sapphire, Inc.	Delaware
Lewtan Technologies, Inc.	Delaware
MIS Asset Holdings, Inc.	Delaware
MIS Quality Management Corp.	Delaware
Moody’s Advisors Inc.	Delaware
Moody’s Analytics, Inc.	Delaware
Moody’s Analytics Solutions, LLC	Delaware
Moody’s Assurance Company, Inc.	New York
Moody’s Assureco, Inc.	Delaware
Moody’s Capital Markets Research, Inc.	Delaware
Moody’s Credit Assessment Holdings, LLC	Delaware
Moody’s Credit Assessment Inc.	Delaware
Moody’s Holdings LLC	Delaware
Moody’s International LLC	Delaware
Moody’s Investors Service, Inc.	Delaware
Moody’s Overseas Holdings, Inc.	Delaware
Moody’s Risk Services Corp.	Delaware
Moody’s Shared Services, Inc.	Delaware
The Moody’s Foundation	New York

Non U.S. Entities

Administración de Calificadoras S.A.	Mexico
Amba Investment Services Limited	British Virgin Islands
Amba Holdings Inc.	Mauritius
Amba Research Costa Rica SA	Costa Rica
Amba Research HongKong Limited	Hong Kong
Amba Research (India) Private Limited	India
Amba Research Lanka (Private) Limited	Sri Lanka
Amba Research Singapore Pte. Ltd.	Singapore
Amba Research UK Limited	United Kingdom
BPA Technologies Pvt. Ltd.	India
Copal Business Consulting (Beijing) Co Ltd	China
Copal Market Research Ltd.	Mauritius
Copal Partners (HK) Limited	Hong Kong
Copal Partners Ltd.	Jersey
Copal Partners (UK) Ltd.	United Kingdom
Copal Research India Private Limited	India
Copal Research Ltd.	Mauritius
ENB Consulting (Asia) Limited	Hong Kong

MOODY’S  2014 10K 155

Exevo India Private Limited	India
Exevo Research Private Ltd.	Singapore
Fermat Finance SPRL	Belgium
Fermat GmbH	Germany
Fermat International SA	Belgium
Fermat Limited	Hong Kong
Fermat Spzoo	Poland
ICRA Lanka Limited	Sri Lanka
ICRA Limited	India
ICRA Management Consulting Services Limited	India
ICRA Online Limited	India
ICRA Techno Analytics Limited	India
Korea Investors Service, Inc.	South Korea
Lewtan Australia Pty. Ltd.	Australia
Lewtan Technologies, Ltd.	United Kingdom
Midroog Ltd.	Israel
Moody’s America Latina Ltda.	Brazil
Moody’s Analytics Australia Pty Ltd	Australia
Moody’s Analytics Canada Inc.	Canada
Moody’s Analytics Czech Republic s.r.o.	Czech Republic
Moody’s Analytics (DIFC) Limited	Dubai International Finance Centre
Moody’s Analytics Deutschland GmbH	Germany
Moody’s Analytics do Brasil Ltda.	Brazil
Moody’s Analytics Global Education (Canada) Inc.	Canada
Moody’s Analytics Holdings (UK) Ltd.	United Kingdom
Moody’s Analytics Hong Kong Limited	Hong Kong
Moody’s Analytics International Licensing GmbH	Switzerland
Moody’s Analytics Ireland Ltd.	Ireland
Moody’s Analytics Japan K.K.	Japan
Moody’s Analytics Korea Co., Ltd.	Korea
Moody’s Analytics SAS	France
Moody’s Analytics Singapore Pte. Ltd.	Singapore
Moody’s Analytics Technical Services (Hong Kong) Ltd.	Hong Kong
Moody’s Analytics Technical Services (UK) Limited	United Kingdom
Moody’s Analytics (Thailand) Co. Ltd.	Thailand
Moody’s Analytics UK Ltd.	United Kingdom
Moody’s Asia-Pacific Group (Singapore) Pte. Ltd.	Singapore
Moody’s Asia Pacific Limited	Hong Kong
Moody’s Canada, Inc.	Canada
Moody’s Canada LP	Canada
Moody’s China (B.V.I.) Limited	British Virgin Islands
Moody’s Company Hong Kong Limited	Hong Kong
Moody’s Credit Assessment India Private Limited	India
Moody’s de Mexico S.A. de C.V.	Mexico
Moody’s Deutschland GmbH	Germany
Moody’s Eastern Europe LLC	Russia
Moody’s EMEA Holdings Limited	United Kingdom
Moody’s Finance Company Limited	United Kingdom
Moody’s France S.A.S.	France
Moody’s Group Australia Pty Ltd	Australia
Moody’s Group Cyprus Ltd.	Cyprus
Moody’s Group Deutschland GmbH	Germany
Moody’s Group Finance Ltd.	United Kingdom
Moody’s Group France SAS	France
Moody’s Group (Holdings) Limited	United Kingdom

156 MOODY’S  2014 10K

Moody’s Group Japan G.K.	Japan
Moody’s Group UK Ltd.	United Kingdom
Moody’s Holdings (BVI) Ltd.	British Virgin Islands
Moody’s Holdings Ltd.	United Kingdom
Moody’s Indonesia (BVI) Limited	British Virgin Islands
Moody’s Information Consulting (Shenzhen) Co., Ltd.	China
Moody’s Interfax Rating Agency Ltd.	Russia
Moody’s International (UK) Limited	United Kingdom
Moody’s Investment Company India Private Limited	India
Moody’s Investors Service (Beijing), Ltd.	China
Moody’s Investors Service (BVI) Ltd.	British Virgin Islands
Moody’s Investors Service Cyprus Ltd.	Cyprus
Moody’s Investors Service EMEA Limited	United Kingdom
Moody’s Investors Service Espana, S.A.	Spain
Moody’s Investors Service Hong Kong Limited	Hong Kong
Moody’s Investors Service (Korea) Inc.	Korea
Moody’s Investors Service Ltd.	United Kingdom
Moody’s Investors Service Middle East Limited	Dubai International Finance Centre
Moody’s Investors Service India Private Limited	India
Moody’s Investors Service Pty Limited	Australia
Moody’s Investors Service Singapore Pte. Ltd.	Singapore
Moody’s Investors Service South Africa (Pty.) Ltd.	South Africa
Moody’s Israel Holdings, Inc.	British Virgin Islands
Moody’s Italia S.r.l.	Italy
Moody’s (Japan) K.K.	Japan
Moody’s Latin America Agente de Calificacion de Riesgo SA	Argentina
Moody’s Latin America Holding Corp.	British Virgin Islands
Moody’s Mauritius Holdings Limited.	Mauritius
Moody’s Servicios Latino-America SA de CV	Mexico
Moody’s Shared Services India Private Limited	India
Moody’s Shared Services UK Limited	United Kingdom
Moody’s SF Japan K.K.	Japan
Moody’s Singapore Pte Ltd	Singapore
Moody’s South Africa (BVI) Ltd.	British Virgin Islands
Moody’s (UK) Limited	United Kingdom
Pragati Development Consulting Services Ltd.	India
PT Moody’s Indonesia	Indonesia

MOODY’S  2014 10K 157

EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Moody’s Corporation:

We consent to the incorporation by reference in the registration statements on Forms S-3 and S-8 (No. 333-168453, No. 333-190259, No. 333-170727, No. 333-170753, No. 333-145127, No. 333-126564, No. 333-103496, No. 333-47848, No. 333-81121, No. 333-68555, No. 333-64653, No. 333-60737, No. 333-57915, No. 333-57267, No. 333-192333, No. 333-192334) of Moody’s Corporation of our report dated February 25, 2015, with respect to the consolidated balance sheets of Moody’s Corporation as of December 31, 2014 and 2013, and the related consolidated statements of operations, shareholders’ equity (deficit), comprehensive income and cash flows, for each of the years in the three-year period ended December 31, 2014 and the effectiveness of internal control over financial reporting as of December 31, 2014, which report appears in the December 31, 2014 annual report on Form 10-K of Moody’s Corporation.

/s/ KPMG LLP

New York, New York

February 25, 2015

158 MOODY’S  2014 10K

EX-31.1

EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Raymond W. McDaniel, Jr., President and Chief Executive Officer of Moody’s Corporation, certify that:

1. I have reviewed this annual report on Form 10-K of Moody’s Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ RAYMOND W. MCDANIEL, JR.

Raymond W. McDaniel, Jr.

President and Chief Executive Officer

February 25, 2015

MOODY’S  2014 10K 159

EX-31.2

EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Linda S. Huber, Executive Vice President and Chief Financial Officer of Moody’s Corporation, certify that:

1. I have reviewed this annual report on Form 10-K of Moody’s Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ LINDA S. HUBER

Linda S. Huber

Executive Vice President and Chief Financial Officer

February 25, 2015

160 MOODY’S  2014 10K

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Moody’s Corporation on Form 10-K for the year ended December 31, 2014 as filed with the SEC on the date hereof (the “Report”), I, Raymond W. McDaniel, Jr., President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ RAYMOND W. MCDANIEL, JR.

Raymond W. McDaniel, Jr.

President and Chief Executive Officer

February 25, 2015

MOODY’S  2014 10K 161

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Moody’s Corporation on Form 10-K for the year ended December 31, 2014 as filed with the SEC on the date hereof (the “Report”), I, Linda S. Huber, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ LINDA S. HUBER

Linda S. Huber

Executive Vice President and Chief Financial Officer

February 25, 2015

162 MOODY’S  2014 10K

XML

DETAIL OF CERTAIN BALANCE SHEET INFORMATION (Tables)

12 Months Ended

Dec. 31, 2014

Additional Details Related to Certain Balance Sheet Captions

		December 31,
		2014		2013
Other current assets:
	Prepaid taxes	$	65.4	$	40.0
	Prepaid expenses		59.9		48.1
	Other		47.2		26.3
	Total other current assets	$	172.5	$	114.4
		December 31,
		2014		2013
Other assets:
	Investments in joint ventures	$	21.6	$	37.5
	Deposits for real-estate leases		11.3		10.3
	Indemnification assets related to acquisitions		23.5		27.0
	Fixed maturity and open-ended mutual funds		48.0		-
	Other		41.5		37.3
	Total other assets	$	145.9	$	112.1
		December 31,
		2014		2013
Accounts payable and accrued liabilities:
	Salaries and benefits	$	86.5	$	77.1
	Incentive compensation		155.2		135.9
	Profit sharing contribution		9.3		-
	Customer credits, advanced payments and advanced billings		17.0		21.7
	Self-insurance reserves		21.5		27.6
	Dividends		75.0		65.5
	Professional service fees		47.0		32.9
	Interest accrued on debt		45.0		36.3
	Accounts payable		19.4		16.4
	Income taxes (see Note 14)		16.1		47.5
	Pension and other retirement employee benefits (see Note 12)		5.1		7.0
	Other		60.5		71.0
	Total accounts payable and accrued liabilities	$	557.6	$	538.9
		December 31,
		2014		2013
Other liabilities:
	Pension and other retirement employee benefits (see Note 12)	$	244.8	$	164.0
	Deferred rent-non-current portion		104.2		106.3
	Interest accrued on UTPs		20.8		18.0
	Legacy and other tax matters		8.6		15.4
	Other		52.5		56.5
	Total other liabilities	$	430.9	$	360.2

Changes in Redeemable Noncontrolling Interest Related to Acquisition

		Year Ended December 31,
			2014		2013		2012
		Redeemable Noncontrolling Interest
Balance January 1,		$	80.0	$	72.3	$	60.5
	Adjustment due to right of offset for UTPs (1)		-		-		6.8
	Net earnings		9.3		5.8		3.6
	Dividends		(4.9)		(6.0)		(3.6)
	Redemption of noncontrolling interest		(183.8)		-		-
	FX translation		-		-		1.6
	Adjustment to redemption value (2)		99.4		7.9		3.4
Balance December 31,		$	-	$	80.0	$	72.3
	(1) Related to an adjustment for the right of offset pursuant to the Copal acquisition agreement whereby the amount due to the sellers under the put/call arrangement was reduced by the amount of UTPs that the Company may be required to pay(2) The adjustment to the redemption value in the year ended December 31, 2014 reflects the aforementioned revisions to the revenue and EBITDA multiples pursuant to the amendment of the put/call agreement which occurred contemporaneously with the acquisition of Amba coupled with growth in the Copal Amba reporting unit. These adjustments are recorded with a corresponding reduction to capital surplus.

Components of Accumulated Other Comprehensive Income

		Year Ended December 31, 2014
		Gains/(losses) on Net Investment Hedges		Pension and Other Retirement Benefits		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total
Balance December 31, 2013		$	1.5	$	(53.2)	$	(2.9)	$	-	$	(54.6)
	Other comprehensive income/(loss) before reclassification		19.4		(56.7)		(153.1)		1.0		(189.4)
	Amounts reclassified from AOCI		-		4.5		4.4		(0.1)		8.8
Other comprehensive income/(loss)			19.4		(52.2)		(148.7)		0.9		(180.6)
Balance December 31, 2014		$	20.9	$	(105.4)	$	(151.6)	$	0.9	$	(235.2)
		Year Ended December 31, 2013
		Gains/(losses) on Cash Flow and Net Investment Hedges		Pension and Other Retirement Benefits		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total
Balance December 31, 2012		$	(2.9)	$	(90.1)	$	10.9	$	-	$	(82.1)
	Other comprehensive income/(loss) before reclassification		3.7		29.9		(15.2)		-		18.4
	Amounts reclassified from AOCI		0.7		7.0		1.4		-		9.1
Other comprehensive income/(loss)			4.4		36.9		(13.8)		-		27.5
Balance December 31, 2013		$	1.5	$	(53.2)	$	(2.9)	$	-	$	(54.6)

Self Insurance Reserves

		Year Ended December 31,
			2014		2013		2012
Balance January 1,		$	27.6	$	55.8	$	27.1
	Accruals (reversals), net		5.8		(0.9)		38.1
	Payments		(11.9)		(27.3)		(9.4)
Balance December 31,		$	21.5	$	27.6	$	55.8

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Fair Value and Carrying Value of Long-Term Debt (Detail) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Carrying Amount	$ 2,547,300,000	$ 2,101,800,000
Estimated Fair Value	2,772,700,000	2,188,700,000
Series 2005-1 Notes
Debt Instrument [Line Items]
Carrying Amount		310,300,000
Estimated Fair Value		319,200,000
Series 2007-1 Notes
Debt Instrument [Line Items]
Carrying Amount	300,000,000	300,000,000
Estimated Fair Value	334,600,000	334,700,000
2010 Senior Notes
Debt Instrument [Line Items]
Carrying Amount	503,800,000	497,800,000
Estimated Fair Value	564,400,000	536,600,000
2012 Senior Notes
Debt Instrument [Line Items]
Carrying Amount	496,900,000	496,500,000
Estimated Fair Value	537,100,000	497,000,000
2013 Senior Notes
Debt Instrument [Line Items]
Carrying Amount	497,500,000	497.2
Estimated Fair Value	548,400,000	501.2
2014 5Y
Debt Instrument [Line Items]
Carrying Amount	450,700,000	0
Estimated Fair Value	454,300,000	0
2014 30Y
Debt Instrument [Line Items]
Carrying Amount	298,400,000	0
Estimated Fair Value	$ 333,900,000	$ 0

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Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Derivative [Line Items]
Accumulated Other Comprehensive Income Loss Net Of Tax	$ (235.2)	$ (54.6)	$ (82.1)
Series 2005 - 1 Swap
Derivative [Line Items]
Derivative Notional Amount	300.0
Floating interest rate base	3-month LIBOR
Twenty Ten Senior Notes [Member]
Derivative [Line Items]
Derivative Notional Amount	250.0
Floating interest rate base	3-month LIBOR
Two Thousand Fourteen Senior Notes Five Year [Member]
Derivative [Line Items]
Derivative Notional Amount	250.0
Floating interest rate base	3-month LIBOR
Interest Income Expense Net [Member]
Derivative [Line Items]
Gain Due To Termination Of Swap	$ 4

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OTHER NON-OPERATING INCOME (EXPENSE), NET (Tables)

12 Months Ended

Dec. 31, 2014

Components of Other Non-Operating Income (Expense), Net

		Year Ended December 31,
		2014		2013		2012
FX gain(loss) (a)		$	20.3	$	-	$	(5.9)
Legacy Tax (b)			6.4		19.2		12.8
Joint venture income			9.6		8.8		4.8
Other			(0.4)		(1.5)		(1.3)
	Total	$	35.9	$	26.5	$	10.4
(a) The FX gain in 2014 reflects the strengthening of the U.S. dollar to the euro and GBP for certain U.S. dollar denominated assets held by the Company's international subsidiaries.(b) The 2014 amount relate to the expiration of a statute of limitations for a Legacy Tax Matter. The 2013 amount represents a reversal relating to favorable resolution of a Legacy Tax Matter for the 2007-2009 tax years. The 2012 amount represents a reversal of a liability relating to the favorable resolution of a Legacy Tax Matter for the 2005 and 2006 tax years.

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Consolidated Revenue Information by Geographic Area (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 10, 2013
Segment Reporting Information [Line Items]
Revenue	$ 877.5	$ 816.1	$ 873.5	$ 767.2	$ 779.2	$ 705.5	$ 756.0	$ 731.8	$ 3,334.3	$ 2,972.5	$ 2,730.3
Long-lived assets at December 31	1,668.9				1,165.5				1,668.9	1,165.5	1,170.7	1,165.5
United States
Segment Reporting Information [Line Items]
Revenue									1,814.5	1,626.5	1,472.4
Long-lived assets at December 31	657.6				552.3				657.6	552.3	498.4	552.3
International
Segment Reporting Information [Line Items]
Revenue									1,519.8	1,346.0	1,257.9
Long-lived assets at December 31	1,011.3				613.2				1,011.3	613.2	672.3	613.2
International | EMEA
Segment Reporting Information [Line Items]
Revenue									952.8	862.8	800.2
International | Americas [Member]
Segment Reporting Information [Line Items]
Revenue									228.7	197.1	191.2
International | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenue									$ 338.3	$ 286.1	$ 266.5

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Amortization Expense Relating to Acquired Intangible Assets (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Finite Lived Intangible Assets [Line Items]
Amortization expense	$ 28.4	$ 28.0	$ 30.1

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Components of Other Non-Operating Income (Expense), Net (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Component Of Other Expense Income Nonoperating [Line Items]
FX gain (loss)	$ 20.3		$ (5.9)
Legacy Tax	6.4	19.2	12.8
Joint venture income	9.6	8.8	4.8
Other	(0.4)	(1.5)	(1.3)
Other non-operating income (expense), net	$ 35.9	$ 26.5	$ 10.4

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Summary of Notional Amounts of Outstanding Foreign Exchange Forwards, Cash Flow Hedging (Detail) In Millions, unless otherwise specified	Dec. 31, 2014 Foreign Currency Forward Contracts To Purchase U S Dollars With Euros USD ($)	Dec. 31, 2013 Foreign Currency Forward Contracts To Purchase U S Dollars With Euros USD ($)	Dec. 31, 2014 Foreign Currency Forward Contracts To Sell U S Dollars For Euros USD ($)	Dec. 31, 2013 Foreign Currency Forward Contracts To Sell U S Dollars For Euros USD ($)	Dec. 31, 2014 Foreign Currency Forward Contracts To Purchase U S Dollars With GBP USD ($)	Dec. 31, 2013 Foreign Currency Forward Contracts To Purchase U S Dollars With GBP USD ($)	Dec. 31, 2014 Foreign Currency Forward Contracts To Sell U S Dollars For GBP USD ($)	Dec. 31, 2013 Foreign Currency Forward Contracts To Sell U S Dollars For GBP USD ($)	Dec. 31, 2014 Foreign Currency Forward Contracts To Purchase U S Dollars With Other Foreign Currencies USD ($)	Dec. 31, 2013 Foreign Currency Forward Contracts To Purchase U S Dollars With Other Foreign Currencies USD ($)	Dec. 31, 2014 Foreign Currency Forward Contracts To Sell U S Dollars For Other Foreign Currencies USD ($)	Dec. 31, 2013 Foreign Currency Forward Contracts To Sell U S Dollars For Other Foreign Currencies USD ($)	Dec. 31, 2014 Foreign Currency Forward Contracts To Purchase Euros With Other Foreign Currencies EUR (€)	Dec. 31, 2013 Foreign Currency Forward Contracts To Purchase Euros With Other Foreign Currencies EUR (€)	Dec. 31, 2014 Foreign Currency Forward Contracts To Purchase Euros With GBP EUR (€)	Dec. 31, 2013 Foreign Currency Forward Contracts To Purchase Euros With GBP EUR (€)	Dec. 31, 2014 Foreign Currency Forward Contracts To Sell Euros For GBP EUR (€)	Dec. 31, 2013 Foreign Currency Forward Contracts To Sell Euros For GBP EUR (€)
Derivative [Line Items]
Derivative Notional Amount	$ 38.5	$ 14.2	$ 51.1	$ 53.2	$ 0.2	$ 0	$ 0	$ 0	$ 1.2	$ 0	$ 0	$ 0	€ 34.0	€ 13.1	€ 25.0	€ 22.1	€ 38.2	€ 0

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Changes in Self Insurance Reserves (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Self Insurance Reserves [Line Items]
Self-insurance reserves, beginning balance	$ 27.6	$ 55.8	$ 27.1
Charged to costs and expenses	(5.8)	0.9	(38.1)
Payments	11.9	27.3	9.4
Self-insurance reserves, Ending balance	$ 21.5	$ 27.6	$ 55.8

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Components of Deferred Tax Assets and Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Deferred tax assets:
Uncertain tax positions	$ 220.3	$ 195.6	$ 156.6	$ 205.4
Total deferred tax assets	348.1	332.0
Deferred tax liabilities:
Deferred tax liabilities, net	(17.5)	(4.0)
Net deferred tax asset	105.3	147.9
Valuation allowance	(6.9)	(8.4)	15.2	13.9
Total net deferred tax assets	98.4	139.5
Current
Deferred tax assets:
Account receivable allowances	7.7	8.2
Accrued compensation and benefits	14.6	12.8
Deferred revenue	6.7	7.3
Legal and professional fees	10.4	10.9
Restructuring	2.3	3.5
Uncertain tax positions		7.5
Other	3.5	0.7
Total current	45.2	50.9
Deferred tax liabilities:
deferred tax liabilities unrealized	14.0	0
Deferred tax Liabilities compensation and benefits	3.0	0
Other liabilities	(1.1)
Deferred tax liabilities, net	(18.1)
Non-Current
Deferred tax assets:
Deferred revenue	34.2	33.4
Uncertain tax positions	38.3	26.8
Other	5.6	4.3
Accumulated depreciation and amortization	0.9	2.6
Stock-based compensation	62.3	73.7
Benefit plans	108.7	78.9
Deferred rent and construction allowance	30.5	30.4
Foreign net operating loss	7.5	10.6
Self-insured related reserves	14.9	20.4
Total non-current	302.9	281.1
Deferred tax liabilities:
Accumulated depreciation and amortization of intangible assets and capitalized software	(204.3)	(153.7)
Foreign earnings to be repatriated	(3.4)	(3.7)
Self-insured related income	(16.9)	(24.0)
Total non-current	(224.7)	(184.1)
Total deferred tax liabilities	(242.8)	(184.1)
Other liabilities	$ (0.1)	$ (2.7)

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SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2014

Financial Information by Segment

		Year Ended December 31,
		2014								2013
		MIS		MA		Eliminations		Consolidated		MIS		MA		Eliminations		Consolidated
Revenue		$	2,353.4	$	1,081.8	$	(100.9)	$	3,334.3	$	2,150.2	$	913.3	$	(91.0)	$	2,972.5
Operating, SG&A			1,076.2		824.3		(100.9)		1,799.6		1,034.0		701.5		(91.0)		1,644.5
Adjusted Operating Income			1,277.2		257.5		-		1,534.7		1,116.2		211.8		-		1,328.0
	Depreciation and amortization		49.4		46.2		-		95.6		46.7		46.7		-		93.4
Operating income		$	1,227.8	$	211.3	$	-	$	1,439.1	$	1,069.5	$	165.1	$	-	$	1,234.6
										Year Ended December 31,
										2012
										MIS		MA		Eliminations		Consolidated
Revenue										$	1,968.8	$	844.9	$	(83.4)	$	2,730.3
Operating, SG&A											976.3		654.3		(83.4)		1,547.2
Adjusted Operating Income											992.5		190.6		-		1,183.1
	Depreciation and amortization										44.4		49.1		-		93.5
Goodwill impairment charge											-		12.2		-		12.2
Operating income										$	948.1	$	129.3	$	-	$	1,077.4

Revenue by Line of Business within Each Reportable Segment

		Year Ended December 31,
		2014		2013		2012
MIS:
Corporate finance (CFG)		$	1,109.3	$	996.8	$	857.6
Structured finance (SFG)			426.5		382.5		381.0
Financial institutions (FIG)			354.7		338.8		325.5
Public, project and infrastructure finance (PPIF)			357.3		341.3		322.7
	Total ratings revenue		2,247.8		2,059.4		1,886.8
MIS Other			18.0		12.2		10.5
	Total external revenue		2,265.8		2,071.6		1,897.3
Intersegment royalty			87.6		78.6		71.5
	Total		2,353.4		2,150.2		1,968.8
MA:
Research, data and analytics (RD&A)			571.8		519.8		482.7
Enterprise risk solutions (ERS)			328.5		262.5		242.6
Professional services (PS)			168.2		118.6		107.7
	Total external revenue		1,068.5		900.9		833.0
Intersegment revenue			13.3		12.4		11.9
	Total		1,081.8		913.3		844.9
Eliminations			(100.9)		(91.0)		(83.4)
	Total MCO	$	3,334.3	$	2,972.5	$	2,730.3

Consolidated Revenue Information by Geographic Area

		Year Ended December 31,
		2014		2013		2012
Revenue:
U.S.		$	1,814.5	$	1,626.5	$	1,472.4
International:
	EMEA		952.8		862.8		800.2
	Asia-Pacific		338.3		286.1		266.5
	Americas		228.7		197.1		191.2
	Total International		1,519.8		1,346.0		1,257.9
Total		$	3,334.3	$	2,972.5	$	2,730.3
Long-lived assets at December 31:
United States		$	657.6	$	552.3	$	498.4
International			1,011.3		613.2		672.3
Total		$	1,668.9	$	1,165.5	$	1,170.7

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RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING (Tables)

12 Months Ended

Dec. 31, 2014

Reconciliation of Basic to Diluted Shares Outstanding

		2014	2013	2012
Basic		210.7	219.4	223.2
Dilutive effect of shares issuable under stock-based compensation plans		4.0	4.1	3.4
Diluted		214.7	223.5	226.6
	Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above	0.7	4.0	7.5

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Summary of Changes in Benefit Obligations and Fair Value of Plan Assets for Post-Retirement Plans (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Pension And Other Retirement Benefits Expected Benefit Payments [Line Items]
Ending Balance	$ 0	$ 15.6
Pension and retirement benefits liability-current	(5.1)	(7.0)
Pension and retirement benefits liability-non current	(244.8)	(164.0)
Pension Plans
Schedule Of Pension And Other Retirement Benefits Expected Benefit Payments [Line Items]
Benefit obligation, beginning of the period	347.1	356.3
Service cost	(18.4)	(19.8)	(18.9)
Interest cost	(16.5)	(13.5)	(13.1)
Plan participants' contributions	0	0
Benefits paid	(6.4)	(5.3)
Actuarial gain (loss)	8.3	0.7
Benefit obligation, end of the period	461.8	347.1	356.3
Beginning Balance	204.6	167.6
Actual return on plan assets	12.9	23.0
Benefits paid	6.4	5.3
Employer contributions	37.3	19.3
Plan participants' contributions	0	0
Ending Balance	248.4	204.6	167.6
Funded status of the plans	(213.4)	(142.5)
Pension and retirement benefits liability-current	(4.3)	(6.2)
Pension and retirement benefits liability-non current	(209.1)	(136.3)
Net amount recognized	(213.4)	(142.5)
Accumulated benefit obligation, end of the period	396.3	298.5
Assumption changes	77.9	(37.9)
Other Retirement Plans
Schedule Of Pension And Other Retirement Benefits Expected Benefit Payments [Line Items]
Benefit obligation, beginning of the period	20.7	21.8
Service cost	(1.7)	(1.7)	(1.5)
Interest cost	(0.9)	(0.8)	(0.7)
Plan participants' contributions	0.4	0.3
Benefits paid	(0.6)	(0.6)
Actuarial gain (loss)	0.1	(1.0)
Benefit obligation, end of the period	26.7	20.7	21.8
Beginning Balance
Actual return on plan assets
Benefits paid	0.6	0.6
Employer contributions	0.2	0.3
Plan participants' contributions	(0.4)	(0.3)
Ending Balance
Funded status of the plans	(26.7)	(20.7)
Pension and retirement benefits liability-current	(0.8)	(0.8)
Pension and retirement benefits liability-non current	(25.9)	(19.9)
Net amount recognized	(26.7)	(20.7)
Assumption changes	$ 3.5	$ (2.3)

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Contingencies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended			3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2014
Loss Contingencies [Line Items]
Number Of Plaintiffs Ordered To Trial				14
Legacy Tax Liabilities	$ 6.4	$ 19.2	$ 12.8
Abu Dhabi Commercial Bank Litigation [Member]
Loss Contingencies [Line Items]
Number Of Plaintiffs Dismissed By Court	4			1
Number of plaintiffs	11
Number of plaintiffs granted	2
Number of plaintiffs filed motions for reconsideration	3
Total compensatory damages value	76.0
Class Action [Member]
Loss Contingencies [Line Items]
Number of plaintiffs	2
CalPERS [Member] | litigation
Loss Contingencies [Line Items]
Payment Regarding Calpers Litigation Matter	125.0
CalPERS [Member]
Loss Contingencies [Line Items]
Unrealized Losses Claimed by the Plaintiff	779
CalPERS [Member] | damages sought for all plaintiffs [Member]
Loss Contingencies [Line Items]
Total compensatory damages value	1,300.0
Pursuit Partners LLC [Member] | damages sought for all plaintiffs [Member]
Loss Contingencies [Line Items]
Total compensatory damages value	$ 44.0

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Other Balance Sheet and Statement of Operations Information Additional Detail (Detail)	Dec. 31, 2014
Disclosure Additional Balance Sheet Information And Statement Of Operations Additional Information [Abstract]
Remaining ownership interest	33.00%

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Segment Information - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2014
DisclosureSegmentInformationAdditionalInformation[Abstract]
Number of reportable segments	2
Number of operating segments	3

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Changes in Fair Value of Level Three Liabilities, Contingent Consideration (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Contingent Consideration, Beginning balance	$ 17.5	$ 9.0	$ 9.1
Contingent Consideration, Issuances		4.3	0
Contingent Consideration, Settlements	16.5	2.5	0.5
Contingent Consideration, Losses Included in earnings	1.3	6.9	0.1
Contingent Consideration, Foreign currency translation adjustments	(0.2)	(0.2)	0.3
Contingent Consideration, Ending balance		$ 17.5	$ 9.0

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Estimated Future Benefits Payments for Retirement Plans (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Pension Plans
Schedule Of Other Retirement Benefits Expected Benefit Payments [Line Items]
2016	$ 10.3
2017	10.9
2018	39.6
2019	14.0
2020 - 2024	110.5
2015	8.3
Other Retirement Plans
Schedule Of Other Retirement Benefits Expected Benefit Payments [Line Items]
2016	1.0
2017	1.1
2018	1.3
2019	1.5
2020 - 2024	9.6
2015	$ 0.8

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Fair Value of Derivative Instruments (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Derivatives Fair Value [Line Items]
Derivatives assets	$ 41.8	$ 20.5
Derivatives liabilities	2.1	1.7
Derivatives designated as accounting hedges
Derivatives Fair Value [Line Items]
Derivatives assets	36.2	19.6
Derivatives liabilities		1.0
Derivatives designated as accounting hedges | Interest rate swaps | Other Assets
Derivatives Fair Value [Line Items]
Derivatives assets	17.4	10.3
Derivatives designated as accounting hedges | Interest rate swaps | Accounts payable and accrued liabilities
Derivatives Fair Value [Line Items]
Derivatives liabilities	0	0
Derivatives designated as accounting hedges | Foreign exchange forward | Accounts payable and accrued liabilities
Derivatives Fair Value [Line Items]
Derivatives liabilities	0	1.0
Derivatives designated as accounting hedges | Foreign exchange forward | Net Investment Hedging | Other Current Assets
Derivatives Fair Value [Line Items]
Derivatives assets	18.8	9.3
Derivatives not designated as accounting hedges | Foreign exchange forward | Other Current Assets
Derivatives Fair Value [Line Items]
Derivatives assets	5.6	0.9
Derivatives not designated as accounting hedges | Foreign exchange forward | Accounts payable and accrued liabilities
Derivatives Fair Value [Line Items]
Derivatives liabilities	$ 2.1	$ 0.7

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Indebtedness - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	0 Months Ended	12 Months Ended
	Nov. 04, 2011	Dec. 31, 2014
Debt Instrument [Line Items]
Notes Due Description		(i) the fourth anniversary date of the note or (ii) within a time frame set forth in the acquisition agreement relating to the resolution of certain income tax uncertainties pertaining to the transaction
Debt Extinguish Costs		$ 11.0
Reversals of Accrued Interest Expense on Tax		2.0
Copal
Debt Instrument [Line Items]
Non-interest bearing note issued	14.2	14.2
Series 2005-1 Notes
Debt Instrument [Line Items]
Date of agreement with the lenders for the five year senior unsecured term loan		Sep. 30, 2005
Debt, aggregate principal amount		300
Senior Unsecured Notes, interest		498.00%
Maturity date of Senior Unsecured Notes		Sep. 30, 2015
Series 2007-1 Notes
Debt Instrument [Line Items]
Date of agreement with the lenders for the five year senior unsecured term loan		Sep. 07, 2007
Debt, aggregate principal amount		300
Senior Unsecured Notes, interest		606.00%
Maturity date of Senior Unsecured Notes		Sep. 07, 2017
Debt to EBITDA ratio not to exceed at the end of any fiscal quarter		The Company must also not permit its Debt/EBITDA ratio to exceed 4.0 to 1.0 at the end of any fiscal quarter.
Prepayment and purchase feature of Senior Unsecured Notes		The Company may prepay the Series 2007-1 Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make Whole Amount.
Percentage of principal amount being prepaid, plus accrued and unpaid interest		10000.00%
2010 Senior Notes
Debt Instrument [Line Items]
Date of agreement with the lenders for the five year senior unsecured term loan		Aug. 19, 2010
Debt, aggregate principal amount		500
Senior Unsecured Notes, interest		550.00%
Maturity date of Senior Unsecured Notes		Sep. 01, 2020
Prepayment and purchase feature of Senior Unsecured Notes		The Company may prepay the 2010 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount.
Percentage of principal amount being prepaid, plus accrued and unpaid interest		10000.00%
Percentage of principal amount, plus accrued and unpaid interest to the date of purchase		10100.00%
Minimum amount for default on senior notes payable		50.00
Minimum percentage for default on senior notes payable		Upon the occurrence and during the continuation of an event of default under the 2010 Indenture, the notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.
Minimum percentage of aggregate principal amount of all notes		2500.00%
Aggregate Amount Due At Maturity		50
2012 Senior Notes
Debt Instrument [Line Items]
Date of agreement with the lenders for the five year senior unsecured term loan		Aug. 20, 2012
Debt, aggregate principal amount		500
Senior Unsecured Notes, interest		450.00%
Maturity date of Senior Unsecured Notes		Sep. 01, 2022
Prepayment and purchase feature of Senior Unsecured Notes		The Company may prepay the 2012 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount.
Percentage of principal amount being prepaid, plus accrued and unpaid interest		10000.00%
Percentage of principal amount, plus accrued and unpaid interest to the date of purchase		10100.00%
Minimum amount for default on senior notes payable		50.00
Minimum percentage for default on senior notes payable		Upon the occurrence and during the continuation of an event of default under the 2012 Indenture, the 2012 Senior notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding
Minimum percentage of aggregate principal amount of all notes		2500.00%
Aggregate Amount Due At Maturity		50
2013 Senior Notes
Debt Instrument [Line Items]
Debt, aggregate principal amount		500
Senior Unsecured Notes, interest		487.50%
Maturity date of Senior Unsecured Notes		Sep. 01, 2024
Prepayment and purchase feature of Senior Unsecured Notes		The Company may prepay the 2013 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount
Percentage of principal amount being prepaid, plus accrued and unpaid interest		10000.00%
Percentage of principal amount, plus accrued and unpaid interest to the date of purchase		10100.00%
Minimum amount for default on senior notes payable		50.00
Minimum percentage for default on senior notes payable		Upon the occurrence and during the continuation of an event of default under the 2013 Indenture, the 2013 Senior Notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.
Minimum percentage of aggregate principal amount of all notes		2500.00%
Alternate Prepayment Percentage		10000.00%
Aggregate Amount Due At Maturity		50
2014 5Y
Debt Instrument [Line Items]
Debt, aggregate principal amount		450
Senior Unsecured Notes, interest		275.00%
Prepayment and purchase feature of Senior Unsecured Notes		The Company may prepay the 2014 Senior Notes (5-year), in whole or in part, at any time at a price prior to June 15, 2019, equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount.
Percentage of principal amount being prepaid, plus accrued and unpaid interest		10000.00%
Percentage of principal amount, plus accrued and unpaid interest to the date of purchase		10100.00%
Minimum amount for default on senior notes payable		50.00
Minimum percentage for default on senior notes payable		Upon the occurrence and during the continuation of an event of default under the 2014 Indenture, the 2014 Senior Notes (5-year) may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.
Minimum percentage of aggregate principal amount of all notes		2500.00%
Alternate Prepayment Percentage		10000.00%
Aggregate Amount Due At Maturity		50
2014 30Y
Debt Instrument [Line Items]
Debt, aggregate principal amount		300
Senior Unsecured Notes, interest		525.00%
Prepayment and purchase feature of Senior Unsecured Notes		. The Company may prepay the 2014 Senior Notes (30-year), in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount.
Percentage of principal amount being prepaid, plus accrued and unpaid interest		10000.00%
Percentage of principal amount, plus accrued and unpaid interest to the date of purchase		10100.00%
Minimum amount for default on senior notes payable		50.00
Minimum percentage for default on senior notes payable		Upon the occurrence and during the continuation of an event of default under the 2014 Indenture, the 2014 Senior Notes (30-year) may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.
Minimum percentage of aggregate principal amount of all notes		2500.00%
Aggregate Amount Due At Maturity		$ 50
2012 Facility
Debt Instrument [Line Items]
Quarterly facility fees		can range from 10 basis points of the facility amount to 17.5 basis points
2008 Term Loan
Debt Instrument [Line Items]
Date of agreement with the lenders for the five year senior unsecured term loan		May 07, 2008

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Cash Equivalent and investments (detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Money Market Mutual Funds
Schedule of Available for sale Securities
Cost	$ 149.7	$ 212.3
Gross Unrealized Gain	0	0
certificate of deposit
Schedule of Available for sale Securities
Cost	842.5	911.8
Gross Unrealized Gain	0	0
fixed maturity and open ended mutual funds [Member]
Schedule of Available for sale Securities
Cost	47.1
Gross Unrealized Gain	0.9
Cash And Cash Equivalents [Member] | Money Market Mutual Funds
Schedule of Available for sale Securities
Fair Value	149.7	212.3
Cash And Cash Equivalents [Member] | certificate of deposit
Schedule of Available for sale Securities
Fair Value	380.1	725.0
Cash And Cash Equivalents [Member] | fixed maturity and open ended mutual funds [Member]
Schedule of Available for sale Securities
Fair Value	0
Other Assets [Member] | Money Market Mutual Funds
Schedule of Available for sale Securities
Fair Value	0	0
Other Assets [Member] | certificate of deposit
Schedule of Available for sale Securities
Fair Value	4.3	0
Other Assets [Member] | fixed maturity and open ended mutual funds [Member]
Schedule of Available for sale Securities
Fair Value	$ 48.0

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Changes in Redeemable Noncontrolling Interest Related to Acquisition Copal (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Redeemable Noncontrolling Interest [Line Items]
Beginning balance	$ 80.0	$ 72.3
Net earnings	(996.6)	(810.2)	(696.1)
Adjustment to redemption value	(99.4)	(7.9)	(3.4)
PaymentsForRepurchaseOfRedeemableNoncontrollingInterest	183.8	0	0
Ending balance		80.0	72.3
Redeemable Noncontrolling Interests
Redeemable Noncontrolling Interest [Line Items]
Adjustment due to right of offset for UTPs			6.8
Net earnings	(9.3)	(5.8)	(3.6)
Distributions	4.9	6.0	3.6
FX translation	$ 0	$ 0	$ 1.6

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Weighted-Average Assumptions Used to Determine Net Periodic Benefit Expense (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Pension Plans
Schedule Of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items]
Discount rate	4.71%	3.82%	4.25%
Expected return on plan assets	6.80%	7.30%	7.85%
Rate of compensation increase	4.00%	4.00%	4.00%
Other Retirement Plans
Schedule Of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items]
Discount rate	4.45%	3.55%	4.05%
Expected return on plan assets	0.00%	0.00%	0.00%
Rate of compensation increase	0.00%	0.00%	0.00%

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Summary of Pre-Tax Net Actuarial Losses and Prior Service Cost Recognized in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Pension Plans
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Net actuarial losses	$ (165.5)	$ (84.6)
Net prior service costs	(2.7)	(3.3)
Total recognized in AOCI- pretax	(168.2)	(87.9)
Other Retirement Plans
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Net actuarial losses	(6.0)	(2.4)
Net prior service costs
Total recognized in AOCI- pretax	$ (6.0)	$ (2.4)

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Pension and Other Retirement Benefits - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Dividends paid on ESOP	$ 0.6	$ 0.5
Moody's share held in ESOP	490,000	520,000
Year 2013
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected rate of return on assets	6.80%
Year 2014
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected rate of return on assets	5.80%
U.S. Defined Contribution Plans
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined contribution compensation expense	26.8	18.8	24.5
International Defined Contribution Plans
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined contribution compensation expense	30.6	19.7	18.8
Defined Contribution Plan
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Employee contribution	50.00%
Maximum employee contribution	3.00%
Funded Plans
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions	33.7	16.8
Unfunded Plans
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions	3.6	2.5
Other Retirement Plans
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected rate of return on assets	0.00%	0.00%	0.00%
Employer contributions	0.2	0.3
Discount rate	3.65%	4.45%
Net actuarial losses	6.0	2.4
Foreign Pension Plans, Defined Benefit
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit pension liabilities total	9.8	7.8	7.2
Discount rate	2.00%	3.58%	3.53%
Pension expense	$ 0.6	$ 0.6	$ 0.6
Equity Securities
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan asset, target asset allocation percentage	53.00%
Plan asset, target asset allocation percentage, minimum	48.00%
Plan asset, target asset allocation percentage, maximum	58.00%
Fixed Income Securities
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan asset, target asset allocation percentage	40.00%
Plan asset, target asset allocation percentage, minimum	35.00%
Plan asset, target asset allocation percentage, maximum	45.00%
Other Investments
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan asset, target asset allocation percentage	7.00%
Plan asset, target asset allocation percentage, minimum	4.00%
Plan asset, target asset allocation percentage, maximum	10.00%

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Components of Accumulated Other Comprehensive Income (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accumulated Other Comprehensive Income Loss [Line Items]
Unrealized losses on cash flow and net investment hedges, net of tax	$ 20.9	$ 1.5
Total accumulated other comprehensive loss	$ (235.2)	$ (54.6)	$ (82.1)

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Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Schedule Of Actual And Estimated Amortization Expense [Line Items]
2015	$ 33.5
2016	31.7
2017	28.1
2018	22.4
2019	19.5
Thereafter	$ 210.3

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LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2014

LEASE COMMITMENTS

Future minimum operating lease payments have been reduced by future minimum sublease income of $3.7 million.

On October 20, 2006, the Company entered into a 21-year operating lease agreement to occupy 15 floors of an office building at

7WTC which includes a total of 20 years of renewal options. On October 21, 2013, the Company entered into a 14-year lease for

an additional three floors at its 7WTC headquarters which became effective on January 2, 2014, these floors have the same renewal option as the original lease.

On February 6, 2008, the Company entered into a 17.5 year operating lease agreement to occupy six floors of an office tower located in the Canary Wharf district of London, England, which includes a total of 15 years of renewal options.

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Description of Business and Basis of Presentation - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2014
Segment Reporting Information [Line Items]
Number of reportable segments	2

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Provision for Income Taxes

			Year Ended December 31,
			2014		2013		2012
Current:
	Federal		$	252.8	$	226.2	$	168.1
	State and Local			70.2		57.6		33.7
	Non-U.S.			102.1		96.8		86.4
		Total current		425.1		380.6		288.2
Deferred:
	Federal			0.9		(13.1)		35.7
	State and Local			4.9		(5.6)		4.5
	Non-U.S.			24.1		(8.5)		(4.1)
		Total deferred		29.9		(27.2)		36.1
Total provision for income taxes			$	455.0	$	353.4	$	324.3

Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income Before Provision for Income Taxes

	Year Ended December 31,
	2014		2013			2012
U.S. statutory tax rate		35.0%		35.0%			35.0%
State and local taxes, net of federal tax benefit		3.6		2.9			2.4
Benefit of foreign operations		(7.4)		(6.4)			(6.1)
Legacy tax items		(0.2)		(0.6)			(0.4)
Other		0.1		(0.7)			0.8
Effective tax rate		31.1%		30.2%			31.7%
Income tax paid	$	369.4	$	335.7	(1)	$	293.3
(1) Includes fourth quarter 2012 estimated federal tax payment made in 2013 due to IRS relief for companies affected by Hurricane Sandy
(2) Includes approximately $92 million in payments for tax audit settlements in the first quarter of 2012.

Source of income Before Provision for Income Taxes

	Year Ended December 31,
	2014		2013		2012
United States	$	912.6	$	836.1	$	694.2
International		548.4		333.2		329.8
Income before provision for income taxes	$	1,461.0	$	1,169.3	$	1,024.0

Components of Deferred Tax Assets and Liabilities

					December 31,
					2014		2013
Deferred tax assets:
	Current:
		Account receivable allowances			$	7.7	$	8.2
		Accrued compensation and benefits				14.6		12.8
		Deferred revenue				6.7		7.3
		Legal and professional fees				10.4		10.9
		Restructuring				2.3		3.5
		Uncertain tax positions				-		7.5
		Other				3.5		0.7
			Total current			45.2		50.9
	Non-current:
		Accumulated depreciation and amortization				0.9		2.6
		Stock-based compensation				62.3		73.7
		Benefit plans				108.7		78.9
		Deferred rent and construction allowance				30.5		30.4
		Deferred revenue				34.2		33.4
		Foreign net operating loss		(1)		7.5		10.6
		Uncertain tax positions				38.3		26.8
		Self-insured related reserves				14.9		20.4
		Other				5.6		4.3
			Total non-current			302.9		281.1
Total deferred tax assets						348.1		332.0
Deferred tax liabilities:
	Current:
		Compensation and benefits				(3.0)		-
		Unrealized gain on net investment hedges - OCI				(14.0)		-
		Other				(1.1)		-
			Total Current			(18.1)		-
	Non-current:
		Accumulated depreciation and amortization of intangible assets and capitalized software				(204.3)		(153.7)
		Foreign earnings to be repatriated				(3.4)		(3.7)
		Self-insured related income				(16.9)		(24.0)
		Other liabilities				(0.1)		(2.7)
			Total non-current			(224.7)		(184.1)
Total deferred tax liabilities						(242.8)		(184.1)
Net deferred tax asset						105.3		147.9
Valuation allowance						(6.9)		(8.4)
Total net deferred tax assets					$	98.4	$	139.5
(1) Amounts are primarily set to expire beginning in 2018, if unused.

Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions

	Year Ended December 31,
	2014		2013		2012
Balance as of January 1	$	195.6	$	156.6	$	205.4
Additions for tax positions related to the current year		52.5		67.8		49.1
Additions for tax positions of prior years		8.7		6.1		18.9
Reductions for tax positions of prior years		(13.0)		(10.1)		(20.6)
Settlements with taxing authorities		(18.8)		(21.4)		(91.5)
Lapse of statute of limitations		(4.7)		(3.4)		(4.7)
Balance as of December 31	$	220.3	$	195.6	$	156.6

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Additional Details Related to Certain Balance Sheet Captions (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Other current assets:
Prepaid taxes	$ 65.4	$ 40.0
Prepaid expenses	59.9	48.1
Other	47.2	26.3
Total other current assets	172.5	114.4
Other assets:
Investments in joint ventures	21.6	37.5
Deposits for real-estate leases	11.3	10.3
Other	41.5	37.3
Total other assets	145.9	112.1
Indemnification assets related to acquisitions	23.5	27.0
Fixed maturity and other open ended mutual funds	48.0	0
Accounts payable and accrued liabilities:
Salaries and benefits	86.5	77.1
Incentive compensation	155.2	135.9
Profit sharing contribution	9.3
Customer credits, advanced payments and advanced billings	17.0	21.7
Self-insurance reserves	21.5	27.6
Dividends	75.0	65.5
Professional service fees	47.0	32.9
Interest accrued on debt	45.0	36.3
Accounts payable	19.4	16.4
Income taxes (see Note 13)	16.1	47.5
Deferred rent-current portion
Pension and other retirement employee benefits (see Note 11)	5.1	7.0
Interest accrued on UTPs	0	0
Other	60.5	71.0
Total accounts payable and accrued liabilities	557.6	538.9
Other liabilities:
Pension and other retirement employee benefits (see Note 11)	244.8	164.0
Deferred rent-non-current portion	104.2	106.3
Interest accrued on UTPs	0	0
Legacy and other tax matters	8.6	15.4
Other	52.5	56.5
Total other liabilities	430.9	360.2
Other Liabilities
Accounts payable and accrued liabilities:
Interest accrued on UTPs	20.8	18.0
Other liabilities:
Interest accrued on UTPs	$ 20.8	$ 18.0

XML

Summary of Nonvested Restricted Stock (Detail) (Restricted Stock, USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Restricted Stock
Nonvested Restricted Stock
Shares, Beginning Balance	3.1
Shares, Granted	0.9
Shares, Vested	1.2
Shares, Forfeited	0.1
Shares, Ending Balance	2.7
Nonvested Restricted Stock, Weighted Average Grant Date Fair Value Per Share
Weighted Average Grant Date Fair Value Per Share, Beginning Balance	$ 39.3
Weighted Average Grant Date Fair Value Per Share, Granted	$ 79.69
Weighted Average Grant Date Fair Value Per Share, Vested	$ 36.19
Weighted Average Grant Date Fair Value Per Share, Forfeited	$ 50.45
Weighted Average Grant Date Fair Value Per Share, Ending Balance	$ 53.98

XML

GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2014

Activity in Goodwill

	Year Ended December 31,2014
	MIS						MA						Consolidated
	Gross goodwill		Accumulated Impairment charge		Net goodwill		Gross goodwill		Accumulated Impairment charge		Net goodwill		Gross goodwill		Accumulated Impairment charge		Net goodwill
Balance at beginning of year	$	11.4	$	-	$	11.4	$	666.0	$	(12.2)	$	653.8	$	677.4	$	(12.2)	$	665.2
Additions/adjustments		296.7		-		296.7		101.1		-		101.1		397.8		-		397.8
Foreign currency translation adjustments		(9.4)		-		(9.4)		(32.5)		-		(32.5)		(41.9)		-		(41.9)
														-		-
Ending balance	$	298.7	$	-	$	298.7	$	734.6	$	(12.2)	$	722.4	$	1,033.3	$	(12.2)	$	1,021.1
	Year Ended December 31,2013
	MIS						MA						Consolidated
	Gross goodwill		Accumulated Impairment charge		Net goodwill		Gross goodwill		Accumulated Impairment charge		Net goodwill		Gross goodwill		Accumulated Impairment charge		Net goodwill
Balance at beginning of year	$	11.5	$	-	$	11.5	$	637.8	$	(12.2)	$	625.6	$	649.3	$	(12.2)	$	637.1
Additions/adjustments		-		-		-		34.5		-		34.5		34.5		-		34.5
Foreign currency translation adjustments		(0.1)		-		(0.1)		(6.3)		-		(6.3)		(6.4)		-		(6.4)
Ending balance	$	11.4	$	-	$	11.4	$	666.0	$	(12.2)	$	653.8	$	677.4	$	(12.2)	$	665.2

Acquired Intangible Assets

			December 31,
			2014		2013
Customer relationships			$	310.4	$	237.4
Accumulated amortization				(98.1)		(86.6)
	Net customer relationships			212.3		150.8
Trade secrets				30.6		31.1
Accumulated amortization				(20.9)		(18.5)
	Net trade secrets			9.7	-	12.6
Software				79.8		71.0
Accumulated amortization				(43.0)		(38.8)
	Net software			36.8	-	32.2
Trade names				76.5		31.3
Accumulated amortization				(13.3)		(11.7)
	Net trade names			63.2	-	19.6
Other				44.8		26.1
Accumulated amortization				(21.3)		(19.7)
	Net other			23.5	-	6.4
		Total	$	345.5	$	221.6

Amortization Expense Relating to Acquired Intangible Assets

	Year Ended December 31,
	2014		2013		2012
Amortization expense	$	28.4	$	28.0	$	30.1

Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization

Year Ended December 31,
2015	$33.5
2016	31.7
2017	28.1
2018	22.4
2019	19.5
Thereafter	210.3

XML

Reconciliation of Basic to Diluted Shares Outstanding (Detail) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Weighted Average Number Of Diluted Shares Outstanding [Line Items]
Basic	210.7	219.4	223.2
Dilutive effect of shares issuable under stock-based compensation plans	4.0	4.1	3.4
Diluted	214.7	223.5	226.6
Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above	0.7	4.0	7.5

XML

Activity in Goodwill (Detail) (USD $)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Goodwill [Line Items]
Beginning balance			$ 665,200,000
Impairment charge	(1,000,000)	(1,000,000)			(12,200,000)
Ending balance			1,021,100,000	665,200,000
Gross Goodwill [Member]
Goodwill [Line Items]
Beginning balance			677,400,000	649,300,000
Additions/adjustments			397,800,000	34,500,000
FX translation			(41,900,000)	(6,400,000)
Ending balance			1,033,300,000	677,400,000
Accumulated Impairment Charge [Member]
Goodwill [Line Items]
Beginning balance			(12,200,000)	(12,200,000)
Additions/adjustments			0	0
FX translation
Ending balance			(12,200,000)	(12,200,000)
Net Goodwill [Member]
Goodwill [Line Items]
Beginning balance			665,200,000	637,100,000
Additions/adjustments			397,800,000	34,500,000
FX translation			(41,900,000)	(6,400,000)
Ending balance			1,021,100,000	665,200,000
Moodys Investors Service [Member]
Goodwill [Line Items]
Impairment charge					0
Moodys Investors Service [Member] | Gross Goodwill [Member]
Goodwill [Line Items]
Beginning balance			11,400,000	11,500,000
Additions/adjustments			296,700,000	0
FX translation			(9,400,000)	(100,000)
Ending balance			298,700,000	11,400,000
Moodys Investors Service [Member] | Accumulated Impairment Charge [Member]
Goodwill [Line Items]
Beginning balance
Additions/adjustments			0	0
FX translation
Ending balance
Moodys Investors Service [Member] | Net Goodwill [Member]
Goodwill [Line Items]
Beginning balance			11,400,000	11,500,000
Additions/adjustments			296,700,000	0
FX translation			(9,400,000)	(100,000)
Ending balance			298,700,000	11,400,000
Moodys Analytics [Member]
Goodwill [Line Items]
Impairment charge					(12,200,000)
Moodys Analytics [Member] | Gross Goodwill [Member]
Goodwill [Line Items]
Beginning balance			666,000,000	637,800,000
Additions/adjustments			101,100,000	34,500,000
FX translation			(32,500,000)	(6,300,000)
Ending balance			734,600,000	666,000,000
Moodys Analytics [Member] | Accumulated Impairment Charge [Member]
Goodwill [Line Items]
Beginning balance			(12,200,000)	(12.2)
Additions/adjustments			0	0
FX translation				0
Ending balance			(12,200,000)	(12,200,000)
Moodys Analytics [Member] | Net Goodwill [Member]
Goodwill [Line Items]
Beginning balance			653,800,000	625,600,000
Additions/adjustments			101,100,000	34,500,000
FX translation			(32,500,000)	(6,300,000)
Ending balance			$ 722,400,000	$ 653,800,000

XML

Summary of Components of Interest as Presented in Consolidated Statements of Operations (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Income	$ 6.7	$ 5.5	$ 5.2
Expense on borrowings	(118.4)	(92.3)	(73.8)
UTBs and other tax related interest	(5.8)	(8.6)	0.4
Legacy Tax	0.7	3.6	4.4
Total	(116.8)	(91.8)	(63.8)
Interest paid	$ 113.7	$ 81.9	$ 94.4

XML

Property and Equipment, Net (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2014
Minimum | Office and computer equipment
Property Plant And Equipment [Line Items]
Property plant and equipment useful life	3 years
Minimum | Office furniture and fixtures
Property Plant And Equipment [Line Items]
Property plant and equipment useful life	3 years
Minimum | Internal-use Computer Software
Property Plant And Equipment [Line Items]
Property plant and equipment useful life	3 years
Minimum | Leasehold Improvements
Property Plant And Equipment [Line Items]
Property plant and equipment useful life	3 years
Maximum | Office and computer equipment
Property Plant And Equipment [Line Items]
Property plant and equipment useful life	10 years
Maximum | Office furniture and fixtures
Property Plant And Equipment [Line Items]
Property plant and equipment useful life	10 years
Maximum | Internal-use Computer Software
Property Plant And Equipment [Line Items]
Property plant and equipment useful life	10 years
Maximum | Leasehold Improvements
Property Plant And Equipment [Line Items]
Property plant and equipment useful life	20 years

XML

VALUATION AND QUALIFYING ACCOUNTS (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Activity for Both Allowances

Year Ended December 31,		Balance at Beginning of the Year		Additions		Write-offs and Adjustments		Balance at End of the Year
2014
	Accounts receivable allowance	$	(28.9)	$	(54.9)	$	54.4	$	(29.4)
	Deferred tax assets - valuation allowance	$	(8.4)	$	(0.1)	$	1.6	$	(6.9)
2013
	Accounts receivable allowance	$	(29.1)	$	(44.5)	$	44.7	$	(28.9)
	Deferred tax assets - valuation allowance	$	(15.2)	$	(0.1)	$	6.9	$	(8.4)
2012
	Accounts receivable allowance	$	(28.0)	$	(44.3)	$	43.2	$	(29.1)
	Deferred tax assets - valuation allowance	$	(13.9)	$	(3.1)	$	1.8	$	(15.2)

XML

GLOSSARY OF TERMS AND ABBREVIATIONS

12 Months Ended

Dec. 31, 2014

GLOSSARY OF TERMS AND ABBREVIATIONS

TERM

DEFINITION

Adjusted Operating Income

Operating income excluding restructuring, depreciation and amortization and a goodwill impairment charge

Adjusted Operating Margin

Adjusted Operating Income divided by revenue

Amba

Amba Investment Services; a provider of investment research and quantitative analytics for global financial institutions; a subsidiary of the Company acquired 100% of Amba in December 2013.

Americas

Represents countries within North and South America, excluding the U.S.

AOCI

Accumulated other comprehensive income (loss); a separate component of shareholders’ equity (deficit); includes accumulated gains & losses on cash flow and net investment hedges, certain gains and losses relating to pension and other retirement benefits obligations and foreign currency translation adjustments.

ASC

The FASB Accounting Standards Codification; the sole source of authoritative

GAAP as of July 1, 2009 except for rules and interpretive releases of the SEC, which are also sources of authoritative GAAP for SEC registrants

Asia-Pacific

Represents countries in Asia also including but not limited to: Australia and its proximate islands, China, India, Indonesia, Japan, Korea, Malaysia, Singapore and Thailand

ASU

The FASB Accounting Standards Updates to the ASC. It also provides background information for accounting guidance and the bases for conclusions on the changes in the ASC. ASUs are not considered authoritative until codified into the ASC

Basel II

Capital adequacy framework published in June 2004 by the Basel Committee on Banking Supervision

Basel III

A new global regulatory standard on bank capital adequacy and liquidity agreed by the members of the Basel Committee on Banking Supervision. Basel III was developed in a response to the deficiencies in financial regulation revealed by the global financial crisis. Basel III strengthens bank capital requirements and introduces new regulatory requirements on bank liquidity and bank leverage.

Board

The board of directors of the Company

Bps

Basis points

Canary Wharf Lease

Operating lease agreement entered into on February 6, 2008 for office space in London, England, occupied by the Company in the second half of 2009

CFG

Corporate finance group; an LOB of MIS

CLO

CMBS

Collateralized loan obligation

Commercial mortgage-backed securities; part of CREF

Commission

European Commission

Common Stock

The Company’s common stock

Company

Moody’s Corporation and its subsidiaries; MCO; Moody’s

Copal

Copal Amba

Copal Partners; an acquisition completed in November 2011; part of the MA segment; leading provider of outsourced research and analytical services to institutional investors

Operating segment created in January 2014 that consists of all operations from Copal as well as the operations of Amba. The Copal Amba operating segment provides outsourced research and analytical services to the global financial and corporate sectors

Council

COSO

Council of the European Union

Committee of Sponsoring Organizations of the Treadway Commission

CP

Commercial paper

CRAs

CRA1

CRA2

CRA3

Credit rating agencies

Regulation (EC) No 1060/2009 of the European Parliament and of the Council, establishing an oversight regime for the CRA industry in the EU

Regulation (EC) No 513/2011 of the European Parliament and of the Council, which transferred direct supervisory responsibility of the registered CRA industry in the EU to ESMA

Regulation (EC) No 462/2013 of the European Parliament and of the Council, which updated the regulatory regimes imposing additional procedural requirements on CRAs

CREF

Commercial real estate finance which includes REITs, commercial real estate collateralized debt obligations and CMBS; part of SFG

CreditView

Research product offered by MA that provides credit professionals a comprehensive, consolidated and streamlined view of credit information

CSI

CSI Global Education, Inc.; an acquisition completed in November 2010; part of the MA segment; a provider of financial learning, credentials, and certification in Canada

D&B Business

Old D&B’s Dun & Bradstreet operating company

DBPPs

Defined benefit pension plans

DCF

Discounted cash flow; a fair value calculation methodology whereby future projected cash flows are discounted back to their present value

Debt/EBITDA

Ratio of Total Debt to EBITDA

Directors’ Plan

The 1998 Moody’s Corporation Non-Employee Directors’ Stock Incentive Plan

Distribution Date

EBITDA

September 30, 2000; the date which Old D&B separated into two publicly traded companies – Moody’s Corporation and New D&B

Earnings before interest, taxes, depreciation and amortization

ECB

European Central Bank

EMEA

Represents countries within Europe, the Middle East and Africa

EPS

Earnings per share

ERS

The enterprise risk solutions LOB within MA; offers risk management software products as well as software implementation services and related risk management advisory engagements

ESMA

European Securities and Market Authority

ESP

Estimated Selling Price; estimate of selling price, as defined in the ASC, at which the vendor would transact if the deliverable were sold by the vendor regularly on a stand-alone basis

ESPP

The 1999 Moody’s Corporation Employee Stock Purchase Plan

ETR

Effective tax rate

EU

EUR

European Ratings Platform

European Union

Euros

Central credit ratings website administered by ESMA

Excess Tax Benefit

The difference between the tax benefit realized at exercise of an option or delivery of a restricted share and the tax benefit recorded at the time that the option or restricted share is expensed under GAAP

Exchange Act

The Securities Exchange Act of 1934, as amended

FASB

Financial Accounting Standards Board

FIG

Financial institutions group; an LOB of MIS

Fitch

Fitch Ratings, a part of the Fitch Group

Financial Reform Act

Free Cash Flow

Dodd-Frank Wall Street Reform and Consumer Protection Act

Net cash provided by operating activities less cash paid for capital additions

FSTC

FX

Financial Services Training and Certifications; a reporting unit within the MA segment that includes on-line and classroom-based training services and CSI

Foreign exchange

GAAP

U.S. Generally Accepted Accounting Principles

GBP

GDP

ICRA

ICRA Gain

British pounds

Gross domestic product

ICRA Limited; a leading provider of credit ratings and research in India. The Company previously held 28.5% equity ownership and in June 2014, increased that ownership stake to 50.06% through the acquisition of additional shares

Gain relating to the step-acquisition of ICRA; U.S. GAAP requires the remeasurement to fair value of the previously held non-controlling shares upon obtaining a controlling interest in a step-acquisition. This remeasurement of the Company’s equity investment in ICRA to fair value resulted in a pre-tax gain of $102.8 million ($78.5 million after tax) in the second quarter of 2014

Intellectual Property

The Company’s intellectual property, including but not limited to proprietary information, trademarks, research, software tools and applications, models and methodologies, databases, domain names, and other proprietary materials

IRS

Internal Revenue Service

IT

KIS

Information technology

Korea Investors Service, Inc.; a leading Korean rating agency and consolidated subsidiary of the Company

KIS Pricing

Korea Investors Service Pricing, Inc.; a Korean provider of fixed income securities pricing and consolidated subsidiary of the Company

Korea

Republic of South Korea

Legacy Tax Matter(s)

Lewtan

Exposures to certain potential tax liabilities assumed in connection with the 2000 Distribution

Lewtan Technologies; a leading provider of analytical tools and data for the global structured finance market; an acquisition completed in October 2014

LIBOR

London Interbank Offered Rate

LOB

Line of Business

MA

M&A

Moody’s Analytics – a reportable segment of MCO formed in January 2008 which provides a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets.

Mergers and acquisitions

Make Whole Amount

The prepayment penalty relating to the Series 2005-1 Notes and Series 2007-1 Notes; a premium based on the excess, if any, of the discounted value of the remaining scheduled payments over the prepaid principal

MCO

Moody’s Corporation and its subsidiaries; the Company; Moody’s

MD&A

Management’s Discussion and Analysis of Financial Condition and Results of Operations

MIS

Moody’s Investors Service – a reportable segment of MCO

MIS Other

Moody’s

Net Income

Consists of non-ratings revenue from ICRA, KIS Pricing and KIS Research. These businesses are managed by MIS; an LOB of MIS

Moody’s Corporation and its subsidiaries; MCO; the Company

Earnings attributable to Moody’s Corporation, which excludes the portion of net income from consolidated entities attributable to non-controlling shareholders

New D&B

The New D&B Corporation – which comprises the D&B business after September 30, 2000

NM

Not-meaningful percentage change (over 400%)

NRSRO

Nationally Recognized Statistical Rating Organization

OCI

Other comprehensive income (loss); includes gains and losses on cash flow and net investment hedges, certain gains and losses relating to pension and other retirement benefit obligations and foreign currency translation adjustments.

Old D&B

The former Dun and Bradstreet Company which distributed New D&B shares on September 30, 2000, and was renamed Moody’s Corporation

Other Retirement Plans

The U.S. retirement healthcare and U.S. retirement life insurance plans

PPIF

Public, project and infrastructure finance; an LOB of MIS

Profit Participation Plan

Defined contribution profit participation plan that covers substantially all U.S. employees of the Company

PPP

PS

Profit Participation Plan

Professional Services; an LOB of MA

RD&A

Research, Data and Analytics; an LOB within MA that distributes investor-oriented research and data, including in-depth research on major debt issuers, industry studies, commentary on topical credit events, economic research and analytical tools such as quantitative risk scores, and other analytical tools that are produced within MA

Redeemable Noncontrolling Interest

Represents minority shareholders’ interest in entities which are controlled but not wholly-owned by Moody’s and for which Moody’s obligation to redeem the minority shareholders’ interest is represented by a put/call relationship

Reform Act

Credit Rating Agency Reform Act of 2006

REITs

Real estate investment trusts

Relationship Revenue

In MIS, excluding MIS Other, relationship revenue represents the recurring monitoring of a rated debt obligation and/or entities that issue such obligations, as well as revenue from programs such as commercial paper, medium-term notes and shelf registrations. In MIS Other, relationship revenue represents subscription-based revenue. For MA, relationship revenue represents subscription-based revenue and maintenance revenue.

Reorganization

The Company’s business reorganization announced in August 2007 which resulted in two new reportable segments (MIS and MA) beginning in January 2008

Retirement Plans

Moody’s funded and unfunded U.S. pension plans, the U.S. post-retirement healthcare plans and the U.S. post-retirement life insurance plans

RMBS

Residential mortgage-backed securities; part of SFG

S&P

Standard & Poor’s, a division of McGraw-Hill Financial, Inc.

SEC

Securities and Exchange Commission

Securities Act

Securities Act of 1933

Series 2005-1 Notes

Principal amount of $300 million, 4.98% senior unsecured notes; notes were paid in 2014

Series 2007-1 Notes

Principal amount of $300 million, 6.06% senior unsecured notes due in September 2017 pursuant to the 2007 Agreement

SFG

Structured finance group; an LOB of MIS

SG&A

Selling, general and administrative expenses

SIV

Structured Investment Vehicle

Stock Plans

The Old D&B’s 1998 Key Employees’ Stock Incentive Plan and the Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan

Total Debt

Current and long-term portion of debt as reflected on the consolidated balance sheets, excluding current accounts payable and accrued liabilities incurred in the ordinary course of business

TPE

Third party evidence, as defined in the ASC, used to determine selling price based on a vendor’s or any competitor’s largely interchangeable products or services in standalone sales transactions to similarly situated customers

Transaction Revenue

For MIS, excluding MIS Other, revenue representing the initial rating of a new debt issuance as well as other one-time fees. In MIS Other, transaction revenue represents revenue from professional services and outsourcing engagements. For MA, transaction revenue represents software license fees and revenue from risk management advisory projects, training and certification services, and knowledge outsourcing engagements

U.K.

U.S.

United Kingdom

United States

USD

U.S. dollar

UTBs

Unrecognized tax benefits

UTPs

Uncertain tax positions

VSOE

Vendor specific objective evidence; evidence, as defined in the ASC, of selling price limited to either of the following: the price charged for a deliverable when it is sold separately, or for a deliverable not yet being sold separately, the price established by management having the relevant authority

WACC

WebEquity

Weighted average cost of capital

WebEquity Solutions LLC; a leading provider of cloud-based loan origination solutions for financial institutions. The Company acquired WebEquity on July 17, 2014

1998 Plan

Old D&B’s 1998 Key Employees’ Stock Incentive Plan

2000 Distribution

The distribution by Old D&B to its shareholders of all of the outstanding shares of New D&B common stock on September 30, 2000

2000 Distribution

Agreement

Agreement governing certain ongoing relationships between the Company and New D&B after the 2000 Distribution including the sharing of any liabilities for the payment of taxes, penalties and interest resulting from unfavorable IRS determinations on certain tax matters and certain other potential tax liabilities

2001 Plan

The Amended and Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan

2005 Agreement

Note purchase agreement dated September 30, 2005 relating to the Series 2005-1 Notes

2007 Agreement

Note purchase agreement dated September 7, 2007 relating to the Series 2007-1 Notes

2007 Facility

Revolving credit facility of $1 billion entered into on September 28, 2007, expiring in 2012

2008 Term Loan

Five-year $150.0 million senior unsecured term loan entered into by the Company on May 7, 2008

2010 Indenture

Supplemental indenture and related agreements dated August 19, 2010, relating to the 2010 Senior Notes

2010 Senior Notes

Principal amount of $500.0 million, 5.50% senior unsecured notes due in September 2020 pursuant to the 2010 Indenture

2012 Facility

Revolving credit facility of $1 billion entered into on April 18, 2012, maturing in 2017

2012 Indenture

Supplemental indenture and related agreements dated August 18, 2012, relating to the 2012 Senior Notes

2012 Senior Notes

Principal amount of $500 million, 4.50% senior unsecured notes due in September 2022 pursuant to the 2012 Indenture

2013 Indenture

2013 Senior Notes

2014 Indenture

2014 Senior Notes (5- Year)

2014 Senior Notes (30-Year)

Supplemental indenture and related agreements dated August 12, 2013, relating to the 2013 Senior Notes

Principal amount of $500 million, 4.875% senior unsecured notes due in February 2024 pursuant to the 2013 Indenture

Supplemental indenture and related agreements dated July 16, 2014, relating to the 2014 Senior Notes

Principal amount of $450 million, 2.75% senior unsecured notes due in July 2019

Principal amount of $300 million, 5.25% senior unsecured notes due in July 2044

7WTC

The Company’s corporate headquarters located at 7 World Trade Center

7WTC Lease

Operating lease agreement entered into on October 20, 2006

GLOSSARY OF TERMS AND ABBREVIATIONS

The following terms, abbreviations and acronyms are used to identify frequently used terms in this report:

XML

Lease Commitments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Lease Commitments And Contingencies [Line Items]
Rent and amortization expenses under operating leases	$ 83.9	$ 74.2	$ 75.8
Total base rent	837.5
Capital lease future minimum sublease rentals	$ 3.7

XML

Property and Equipment, Net - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property Plant And Equipment Disclosure [Line Items]
Depreciation and amortization expense related to property and equipment	$ 67.2	$ 65.4	$ 63.4

XML

Other Non-Operating Interest (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Component Of Other Expense Income Nonoperating [Line Items]
Foreign Currency Transaction Gain Loss Before Tax	$ 20.3		$ (5.9)
Income Loss From Joint Venture	9.6	8.8	4.8
Other Non Operating Income Expense Other	(0.4)	(1.5)	(1.3)
Other non-operating income (expense), net	35.9	26.5	10.4
Legacy Tax Liabilities	$ 6.4	$ 19.2	$ 12.8

XML

Information Related to Vesting of Performance Based Restricted Stock (Detail) (Performance Based Restricted Stock [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Performance Based Restricted Stock [Member]
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Performance Options [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value	$ 38.0	$ 25.5	$ 0
Employee Service Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options	$ 14.4	$ 9.7	$ 0

XML

INDEBTEDNESS (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Total Indebtedness

		December 31,
		2014		2013
2012 Facility		$	-	$	-
Notes payable:
	Series 2005-1 Notes due 2015, including fair value of interest rate swap of $10.3 million at 2013		-		310.3
	Series 2007-1 Notes due in 2017		300.0		300.0
	2010 Senior Notes, due 2020, net of unamortized discount of $2.0 million and $2.2 million in 2014 and 2013, respectively, and includes a $5.8 million fair value adjustment on an interest rate hedge in 2014		503.8		497.8
	2012 Senior Notes, due 2022, net of unamortized discount of $3.1 million in 2014 and $3.5 million in 2013		496.9		496.5
	2013 Senior Notes, due 2024, net of unamortized discount of $2.5 million in 2014 and $2.8 million in 2013		497.5		497.2
	2014 Senior Notes (5-Year), due 2019, net of unamortized discount of $0.7 million in 2014 and includes a $1.4 million fair value adjustment on an interest rate hedge in 2014		450.7		-
	2014 Senior Notes (30-Year), due 2044, net of unamortized discount of $1.6 million in 2014		298.4		-
Total long-term debt			2,547.3		2,101.8

Principal Payments Due on Long-Term Borrowings

Year Ending December 31,	Series 2007-1 Notes		2010 Senior Notes		2012 Senior Notes		2013 Senior Notes		2014 Senior Notes (5-year)		2014 Senior Notes (30-year)		Total
2015	$	-	$	-	$	-	$	-	$	-	$	-	$	-
2016		-		-		-		-		-		-		-
2017		300.0		-		-		-		-		-		300.0
2018		-		-		-		-		-		-		-
2019		-		-		-		-		450.0		-		450.0
Thereafter		-		500.0		500.0		500.0		-		300.0		1,800.0
Total	$	300.0	$	500.0	$	500.0	$	500.0	$	450.0	$	300.0	$	2,550.0

Summary of Components of Interest as Presented in Consolidated Statements of Operations

	Year Ended December 31,
	2014		2013		2012
Income	$	6.7	$	5.5	$	5.2
Expense on borrowings (a)		(118.4)		(92.3)		(73.8)
Expense on UTPs and other tax related liabilities (b)		(5.8)		(8.6)		0.4
Legacy Tax (c)		0.7		3.6		4.4
Total	$	(116.8)	$	(91.8)	$	(63.8)
Interest paid (d)	$	113.7	$	81.9	$	94.4
(a) Includes approximately $11 million in 2014 in net costs related to the prepayment of the Series 2005-1 Notes.(b) Includes $2.0 million in 2014 relating to a reversal of an interest accrual relating to the favorable resolution of an international tax matter.(c) Represents a reduction of accrued interest related to the favorable resolution of Legacy Tax Matters, further discussed in Note 18 to the consolidated financial statements.(d) Interest paid includes payments of interest relating to the settlement of income tax audits in the first quarter of 2012 as well as net settlements on interest rate swaps more fully discussed in Note 5.

Fair Value and Carrying Value of Long-Term Debt

	December 31, 2014				December 31, 2013
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Series 2005-1 Notes	$	-	$	-	$	310.3	$	319.2
Series 2007-1 Notes		300.0		334.6		300.0		334.7
2010 Senior Notes		503.8		564.4		497.8		536.6
2012 Senior Notes		496.9		537.1		496.5		497.0
2013 Senior Notes		497.5		548.4		497.2		501.2
2014 Senior Notes (5-Year)		450.7		454.3		-		-
2014 Senior Notes (30-Year)		298.4		333.9		-		-
Total	$	2,547.3	$	2,772.7	$	2,101.8	$	2,188.7

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OTHER NON-OPERATING INCOME (EXPENSE), NET

12 Months Ended

Dec. 31, 2014

OTHER NON-OPERATING INCOME (EXPENSE), NET

NOTE 21 OTHER NON-OPERATING INCOME (EXPENSE), NET

The following table summarizes the components of other non-operating income (expense), net as presented in the consolidated statements of operations:

		Year Ended December 31,
		2014		2013		2012
FX gain(loss) (a)		$	20.3	$	-	$	(5.9)
Legacy Tax (b)			6.4		19.2		12.8
Joint venture income			9.6		8.8		4.8
Other			(0.4)		(1.5)		(1.3)
	Total	$	35.9	$	26.5	$	10.4
(a) The FX gain in 2014 reflects the strengthening of the U.S. dollar to the euro and GBP for certain U.S. dollar denominated assets held by the Company's international subsidiaries.(b) The 2014 amount relate to the expiration of a statute of limitations for a Legacy Tax Matter. The 2013 amount represents a reversal relating to favorable resolution of a Legacy Tax Matter for the 2007-2009 tax years. The 2012 amount represents a reversal of a liability relating to the favorable resolution of a Legacy Tax Matter for the 2005 and 2006 tax years.

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VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2014

VALUATION AND QUALIFYING ACCOUNTS

NOTE 20 VALUATION AND QUALIFYING ACCOUNTS

Accounts receivable allowances primarily represent adjustments to customer billings that are estimated when the related revenue is recognized and also represents an estimate for uncollectible accounts. The valuation allowance on deferred tax assets relates to foreign net operating losses for which realization is uncertain. Below is a summary of activity for both allowances:

Year Ended December 31,		Balance at Beginning of the Year		Additions		Write-offs and Adjustments		Balance at End of the Year
2014
	Accounts receivable allowance	$	(28.9)	$	(54.9)	$	54.4	$	(29.4)
	Deferred tax assets - valuation allowance	$	(8.4)	$	(0.1)	$	1.6	$	(6.9)
2013
	Accounts receivable allowance	$	(29.1)	$	(44.5)	$	44.7	$	(28.9)
	Deferred tax assets - valuation allowance	$	(15.2)	$	(0.1)	$	6.9	$	(8.4)
2012
	Accounts receivable allowance	$	(28.0)	$	(44.3)	$	43.2	$	(29.1)
	Deferred tax assets - valuation allowance	$	(13.9)	$	(3.1)	$	1.8	$	(15.2)

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Provision for Income Taxes (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Current:
Federal	$ 252.8	$ 226.2	$ 168.1
State and Local	70.2	57.6	33.7
Non-U.S.	102.1	96.8	86.4
Total current	425.1	380.6	288.2
Deferred:
Federal	0.9	(13.1)	35.7
State and Local	4.9	(5.6)	4.5
Non-U.S.	24.1	(8.5)	(4.1)
Total deferred	29.9	(27.2)	36.1
Total provision for income taxes	$ 455.0	$ 353.4	$ 324.3

XML

Summary of Notional Amounts of Outstanding Foreign Exchange Forward Contracts, Designated as Net Investment Hedges (Detail) (Net Investment Hedging [Member]) In Millions, unless otherwise specified	Dec. 31, 2014 Foreign Currency Forward Contracts To Sell Euros for U S Dollars EUR (€)	Dec. 31, 2013 Foreign Currency Forward Contracts To Sell Euros for U S Dollars EUR (€)	Dec. 31, 2014 Foreign Currency Forward Contracts To Sell Japanese Yen For US Dollars [Member] JPY (¥)	Dec. 31, 2013 Foreign Currency Forward Contracts To Sell Japanese Yen For US Dollars [Member] JPY (¥)
Derivative [Line Items]
Derivative Notional Amount	€ 50.0	€ 50.0	¥ 19,400.0	¥ 19,700.0

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CAPITAL STOCK (Tables)

12 Months Ended

Dec. 31, 2014

Dividends Paid

	Dividends Per Share
	Year ended December 31,
	2014				2013				2012
	Declared		Paid		Declared		Paid		Declared		Paid
First quarter	$	-	$	0.28	$	-	$	0.20	$	-	$	0.16
Second quarter		0.28		0.28		0.20		0.20		0.16		0.16
Third quarter		0.28		0.28		0.25		0.25		0.16		0.16
Fourth quarter		0.62		0.28		0.53		0.25		0.36		0.16
Total	$	1.18	$	1.12	$	0.98	$	0.90	$	0.68	$	0.64

Share Repurchase Programs

Date Authorized	Amount Authorized		Remaining Authority
February 12, 2013	$	1,000.0	$	-
February 11, 2014	$	1,000.0	$	563.5
December 16, 2014	$	1,000.0	$	1,000.0

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2014

RELATED PARTY TRANSACTIONS

NOTE 22 RELATED PARTY TRANSACTIONS

Moody’s Corporation made grants of $4 million, $8 million and $10 million to The Moody’s Foundationduring the years ended December 31,2014, 2013 and 2012, respectively. The Foundation carries out philanthropic activities primarily in the areas of education and health and human services. Certain members of Moody’s senior management are on the board of the Foundation.

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QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2014

QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE 23 QUARTERLY FINANCIAL DATA (UNAUDITED)

		Three Months Ended
(amounts in millions, except EPS)		March 31		June 30		September 30		December 31
2014
Revenue		$	767.2	$	873.5	$	816.1	$	877.5
Operating Income		$	333.0	$	411.7	$	349.7	$	344.7
Net income attributable to Moody's		$	218.0	$	319.2	$	215.2	$	236.3
EPS:
	Basic	$	1.02	$	1.51	$	1.02	$	1.14
	Diluted	$	1.00	$	1.48	$	1.00	$	1.12
2013
Revenue		$	731.8	$	756.0	$	705.5	$	779.2
Operating income		$	280.4	$	350.8	$	291.5	$	311.9
Net income attributable to Moody's		$	188.4	$	225.5	$	183.9	$	206.7
EPS:
	Basic	$	0.84	$	1.01	$	0.84	$	0.96
	Diluted	$	0.83	$	1.00	$	0.83	$	0.94

Basic and diluted EPS are computed for each of the periods presented. The number of weighted average shares outstanding changes as common shares are issued pursuant to employee stock-based compensation plans and for other purposes or as shares are repurchased. Therefore, the sum of basic and diluted EPS for each of the four quarters may not equal the full year basic and diluted EPS.

Additionally, the quarterly financial data includes the ICRA Gain in the three months ended June 30, 2014. There were benefits of $6.4 million and $21.3 million to net income related to the resolution of Legacy Tax Matters for the three months ended September 30, 2014 and December 31, 2013, respectively. There was a $0.14 share charge in the first quarter of 2013 related to the settlement of litigation matters more fully discussed in Note 18.

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Consolidated Statement of Shareholders' Equity (Deficit) (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Currency translation adjustment, tax	$ 0.6	$ 0.6	$ 0.2
Amortization of actuarial losses and prior service costs included in net income (tax)	(2.8)	(4.9)	(4.1)
Amortization and recognition of prior service cost and actuarial losses, tax	21.0	21.0	11.2
Net unrealized gain on cash flow hedges, tax	$ 3.1	$ 3.1	$ 0.1

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2014

Basis of Consolidation

Basis of Consolidation

The consolidated financial statements include those of Moody’s Corporation and its majority- and wholly-owned subsidiaries. The effects of all intercompany transactions have been eliminated. Investments in companies for which the Company has significant influence over operating and financial policies but not a controlling interest are accounted for on an equity basis whereby the Company records its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net and any dividends received reduce the carrying amount of the investment.  The Company applies the guidelines set forth in Topic 810 of the ASC in assessing its interests in variable interest entities to decide whether to consolidate that entity. The Company has reviewed the potential variable interest entities and determined that there are no consolidation requirements under Topic 810 of the ASC. The Company consolidates its ICRA subsidiaries on a three month lag.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash equivalents principally consist of investments in money market mutual funds and money market deposit accounts as well as high-grade commercial paper and certificates of deposit with maturities of three months or less when purchased.

Short-term Investments

Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next twelve months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives. Expenditures for maintenance and repairs that do not extend the economic useful life of the related assets are charged to expense as incurred.

Research and Development Costs

Research and Development Costs

All research and development costs are expensed as incurred. These costs primarily reflect the development of credit processing software and quantitative credit risk assessment products sold by the MA segment.

Research and development costs were $37.9 million, $22.8 million, and $16.1 million for the years ended December 31,2014, 2013 and 2012, respectively, and are included in operating expenses within the Company’s consolidated statements of operations. These costs generally consist of professional services provided by third parties and compensation costs of employees.

Costs for internally developed computer software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. These costs primarily relate to the development or enhancement of products in the ERS business and generally consist of professional services provided by third parties and compensation costs of employees that develop the software. Judgment is required in determining when technological feasibility of a product is established and the Company believes that technological feasibility for its software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released to customers. Accordingly, costs for internally developed computer software that will be sold, leased or otherwise marketed that were eligible for capitalization under Topic 985 of the ASC as well as the related amortization expense related to such costs were immaterial for the years ended December 31,2014, 2013 and 2012.

Computer Software Developed or Obtained for Internal Use

Computer Software Developed or Obtained for Internal Use

The Company capitalizes costs related to software developed or obtained for internal use. These assets, included in property and equipment in the consolidated balance sheets, relate to the Company’s accounting, product delivery and other systems. Such costs generally consist of direct costs for third-party license fees, professional services provided by third parties and employee compensation, in each case incurred either during the application development stage or in connection with upgrades and enhancements that increase functionality. Such costs are depreciated over their estimated useful lives on a straight-line basis. Costs incurred during the preliminary project stage of development as well as maintenance costs are expensed as incurred.

Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets

Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets

Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment or one level below an operating segment, annually as of July 31 or more frequently if impairment indicators arise in accordance with ASC Topic 350.

The Company evaluates the recoverability of goodwill using a three-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made that, based on the qualitative factors, an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company must perform a third step of the impairment test to determine the implied fair value of the reporting unit’s goodwill. The implied fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than its carrying value, the difference is recognized as an impairment charge. For the reporting units where the Company is consistently able to conclude that an impairment does not exist using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years. Goodwill is assigned to a reporting unit at the date when an acquisition is integrated into one of the established reporting units, and is based on which reporting unit is expected to benefit from the synergies of the acquisition.

For purposes of assessing the recoverability of goodwill, the Company has six reporting units at December 31, 2014: two within the Company’s ratings business (one for the newly acquired ICRA business and one that encompasses all of Moody’s other ratings operations) and four reporting units within MA: RD&A, ERS, Financial Services Training and Certifications and Copal Amba. The RD&A reporting unit encompasses the distribution of investor-oriented research and data developed by MIS as part of its ratings process, in-depth research on major debt issuers, industry studies, economic research and commentary on topical events and credit analytic tools. The ERS reporting unit consists of credit risk management and compliance software that is sold on a license or subscription basis as well as related advisory services for implementation and maintenance. The FSTC reporting unit consists of the portion of the MA business that offers both credit training as well as other professional development training and certification services. The Copal Amba reporting unit consists of outsourced research and analytical services.

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Rent Expense

Rent Expense

The Company records rent expense on a straight-line basis over the life of the lease. In cases where there is a free rent period or future fixed rent escalations the Company will record a deferred rent liability. Additionally, the receipt of any lease incentives will be recorded as a deferred rent liability which will be amortized over the lease term as a reduction of rent expense.

Stock-Based Compensation

Stock-Based Compensation

The Company records compensation expense for all share-based payment award transactions granted to employees based on the fair value of the equity instrument at the time of grant. This includes shares issued under stock option and restricted stock plans. The Company has also established a pool of additional paid-in capital related to the tax effects of employee share-based compensation, which is available to absorb any recognized tax shortfalls.

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Based on the Company’s risk management policy, from time to time the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values. The changes in the value of derivatives that qualify as fair value hedges are recorded with a corresponding adjustment to the carrying value of the item being hedged. Changes in the derivative’s fair value that qualify as cash flow hedges are recorded to other comprehensive income or loss, to the extent the hedge is effective, and such amounts are reclassified from accumulated other comprehensive income or loss to earnings in the same period or periods during which the hedged transaction affects income. Changes in the derivative’s fair value that qualify as net investment hedges are recorded to other comprehensive income or loss, to the extent the hedge is effective. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur.

Revenue Recognition

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or the services have been provided and accepted by the customer when applicable, fees are determinable and the collection of resulting receivables is considered probable.

Pursuant to ASC Topic 605, when a sales arrangement contains multiple deliverables, the Company allocates revenue to each deliverable based on its relative selling price which is determined based on its vendor specific objective evidence if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available.

 The Company’s products and services will generally qualify as separate units of accounting under ASC Topic 605. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value to the customers and if the arrangement includes a customer refund or return right relative to the delivered item and the delivery and performance of the undelivered item is considered probable and substantially in the Company’s control. In instances where the aforementioned criteria are not met, the deliverable is combined with the undelivered items and revenue recognition is determined as one single unit.

The Company determines whether its selling price in a multi-element transaction meets the VSOE criteria by using the price charged for a deliverable when sold separately. In instances where the Company is not able to establish VSOE for all deliverables in a multiple element arrangement, which may be due to the Company infrequently selling each element separately, not selling products within a reasonably narrow price range, or only having a limited sales history, the Company attempts to establish TPE for deliverables. The Company determines whether TPE exists by evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. However, due to the difficulty in obtaining third party pricing, possible differences in its market strategy from that of its peers and the potential that products and services offered by the Company may contain a significant level of differentiation and/or customization such that the comparable pricing of products with similar functionality cannot be obtained, the Company generally is unable to reliably determine TPE. Based on the selling price hierarchy established by ASC Topic 605, when the Company is unable to establish selling price using VSOE or TPE, the Company will establish an ESP. ESP is the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company establishes its best estimate of ESP considering internal factors relevant to is pricing practices such as costs and margin objectives, standalone sales prices of similar products, percentage of the fee charged for a primary product or service relative to a related product or service, and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trend. The Company reviews its determination of VSOE, TPE and ESP on an annual basis or more frequently as needed.

In the MIS segment, revenue attributed to initial ratings of issued securities is recognized when the rating is issued. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of commercial mortgage-backed securities, structured credit, international residential mortgage-backed and asset-backed securities, issuers can elect to pay the monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities, which was approximately 28 years on a weighted average basis at December 31,2014. At December 31,2014, 2013 and 2012, deferred revenue related to these securities was approximately $107 million,$97 million, and $82 million.

Multiple element revenue arrangements in the MIS segment are generally comprised of an initial rating and the related monitoring service. In instances where monitoring fees are not charged for the first year monitoring effort, fees are allocated to the initial rating and monitoring services based on the relative selling price of each service to the total arrangement fees. The Company generally uses ESP in determining the selling price for its initial ratings as the Company rarely sells initial ratings separately without providing related monitoring services and thus is unable to establish VSOE or TPE for initial ratings.

MIS estimates revenue for ratings of commercial paper for which, in addition to a fixed annual monitoring fee, issuers are billed quarterly based on amounts outstanding. Revenue is accrued each quarter based on estimated amounts outstanding and is billed when actual data is available. The estimate is determined based on the issuers’ most recent reported quarterly data. At December 31,2014, 2013 and 2012, accounts receivable included approximately $22 million, $21 million, and $22million, respectively, related to accrued commercial paper revenue. Historically, MIS has not had material differences between the estimated revenue and the actual billings. Furthermore, for certain annual monitoring services, fees are not invoiced until the end of the annual monitoring period and revenue is accrued ratably over the monitoring period.

In the MA segment, products and services offered by the Company include software licenses and related maintenance, subscriptions, and professional services. Revenue from subscription based products, such as research and data subscriptions and certain software-based credit risk management subscription products, is recognized ratably over the related subscription period, which is principally one year. Revenue from sale of perpetual licenses of credit processing software is generally recognized at the time the product master or first copy is delivered or transferred to and accepted by the customer. If uncertainty exists regarding customer acceptance of the product or service, revenue is not recognized until acceptance occurs. Software maintenance revenue is recognized ratably over the annual maintenance period. Revenue from professional services rendered is generally recognized as the services are performed. A large portion of annual research and data subscriptions and annual software maintenance are invoiced in the months of November, December and January.

Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where a multiple element arrangement includes software and non-software deliverables, revenue is allocated to the non-software deliverables and to the software deliverables, as a group, using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Revenue is recognized for each element based upon the conditions for revenue recognition noted above.

 If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is allocated to each software deliverable using VSOE. In the instances where the Company is not able to determine VSOE for all of the deliverables of an arrangement, the Company allocates the revenue to the undelivered elements equal to its VSOE and the residual revenue to the delivered elements. If the Company is unable to determine VSOE for an undelivered element, the Company defers all revenue allocated to the software deliverables until the Company has delivered all of the elements or when VSOE has been determined for the undelivered elements.In cases where software implementation services are considered essential and VSOE of fair value exists for post-contract customer support (“PCS”), once the delivery criteria has been met on the standard software, license and service revenue is recognized on a percentage-of-completion basis as implementation services are performed, while PCS is recognized over the coverage period.  If VSOE of fair value does not exist for PCS, once the delivery criteria has been met on the standard software, service revenue is recognized on a zero profit margin basis until essential services are complete, at which point total remaining arrangement revenue is then spread ratably over the remaining PCS coverage period.

Accounts Receivable Allowances

Accounts Receivable Allowances

Moody’s records an allowance for estimated future adjustments to customer billings as a reduction of revenue, based on historical experience and current conditions. Such amounts are reflected as additions to the accounts receivable allowance. Additionally, estimates of uncollectible accounts are recorded as bad debt expense and are reflected as additions to the accounts receivable allowance. Actual billing adjustments and uncollectible account write-offs are recorded against the allowance. Moody’s evaluates its accounts receivable allowance by reviewing and assessing historical collection and adjustment experience and the current status of customer accounts. Moody’s also considers the economic environment of the customers, both from an industry and geographic perspective, in evaluating the need for allowances. Based on its analysis, Moody’s adjusts its allowance as considered appropriate in the circumstances.

Contingencies

Contingencies

Moody’s is involved in legal and tax proceedings, governmental investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate.

For claims, litigation and proceedings and governmental investigations and inquires not related to income taxes, where it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated, the Company records liabilities in the consolidated financial statements and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In other instances, because of uncertainties related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if significant. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. In view of the inherent difficulty of predicting the outcome of litigation, regulatory, governmental investigations and inquiries, enforcement and similar matters , particularly where the claimants seek large or indeterminate damages or where the parties assert novel legal theories or the matters involve a large number of parties, the Company cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also cannot predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition. However, in light of the large or indeterminate damages sought in some of them, the absence of similar court rulings on the theories of law asserted and uncertainties regarding apportionment of any potential damages, an estimate of the range of possible losses cannot be made at this time.

The Company’s wholly-owned insurance subsidiary insures the Company against certainrisks including but not limited to deductibles for worker’s compensation, employment practices litigation and employee medical claims and terrorism,for which the claims are not material to the Company. In addition, for claim years 2008 and 2009, the insurance subsidiary insured the Company for defense costs related to professional liability claims. For matters insured by the Company’s insurance subsidiary, Moody’s records liabilities based on the estimated total claims expected to be paid and total projected costs to defend a claim through its anticipated conclusion. The Company determines liabilities based on an assessment of management’s best estimate of claims to be paid and legal defense costs as well as actuarially determined estimates. The Cheyne SIV and Rhinebridge SIV matters more fully discussed in Note 18 are both cases from the 2008/2009 claims period, and accordingly defense costs forthese matters are covered by the Company’s insurance subsidiary. Defense costs for matters not self-insured by the Company’s wholly-owned insurance subsidiary are expensed as services are provided.

For income tax matters, the Company employs the prescribed methodology of Topic 740 of the ASC which requires a company to first determine whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority

Operating Expenses

Operating Expenses

Operating expenses include costs associated with the development and production of the Company’s products and services and their delivery to customers. These expenses principally include employee compensation and benefits and travel costs that are incurred in connection with these activities. Operating expenses are charged to income as incurred, except for certain costs related to software implementation services which are deferred until related revenue is recognized.  Additionally, certain costs incurred to develop internal use software are capitalized and depreciated over their estimated useful life.

Selling, General and Administrative Expenses

Selling, General and Administrative Expenses

SG&A expenses include such items as compensation and benefits for corporate officers and staff and compensation and other expenses related to sales of products. They also include items such as office rent, business insurance, professional fees and gains and losses from sales and disposals of assets. SG&A expenses are charged to income as incurred, except for certain expenses incurred to develop internal use software are capitalized and depreciated over their estimated useful life.

Redeemable Noncontrolling Interest

Redeemable Noncontrolling Interest

The Company records its redeemable noncontrolling interest at fair value on the date of the related business combination transaction. The redeemable noncontrolling interest representsnoncontrolling shareholders’ interest in entities which are controlled but not wholly-owned by Moody’s and for which Moody’s obligation to redeem the minority shareholders’ interest is governed by a put/call relationship. Subsequent to the initial measurement, the redeemable noncontrolling interest is recorded at the greater of its redemption value or its carrying value at the end of each reporting period. If the redeemable noncontrolling interest is carried at its redemption value, the difference between the redemption value and the carrying value would be adjusted through capital surplus at the end of each reporting period. The Company also performs a quarterly assessment to determine if the aforementioned redemption value exceeds the fair value of the redeemable noncontrolling interest. If the redemption value of the redeemable noncontrolling interest were to exceed its fair value, the excess would reduce the net income attributable to Moody’s shareholders. The Company settled its redeemable noncontrolling interest in the fourth quarter of 2014 by exercising its call option to acquire the remaining share of Copal Amba that it did not previously own.

Foreign Currency Translation

Foreign Currency Translation

For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated into U.S. dollars using end of year exchange rates, and revenue and expenses are translated using average exchange rates for the year. For these foreign operations, currency translation adjustments are accumulated in a separate component of shareholders’ equity.

Income Taxes

Income Taxes

The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes and deferred income taxes reflect the effect of temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes.

The Company classifies interest related to unrecognized tax benefits as a component of interest expense in its consolidated statements of operations. Penalties are recognized in other non-operating expenses. For UTPs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

For certain of its non-U.S. subsidiaries, the Company has deemed the undistributed earnings relating to these subsidiaries to be indefinitely reinvested within its foreign operations. Accordingly, the Company has not provided deferred income taxes on these indefinitely reinvested earnings. It is not practicable to determine the amount of deferred taxes that might be required to be provided if such earnings were distributed in the future due to complexities in the tax laws and in the hypothetical calculations that would have to be made.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, all of which are short-term in nature and, accordingly, approximate fair value. Additionally, the Company invests in certain short-term investments consisting primarily of certificates of deposit that are carried at cost, which approximates fair value due to their short-term maturities.

The Company also has certain investments in closed-ended and open-ended mutual funds in India which are designated as ‘available for sale’ under Topic 320 of the ASC. Accordingly, unrealized gains and losses on these investments are recorded to other comprehensive income and are reclassified out of accumulated other comprehensive income to the statement of operations when the investment matures or is sold using a specific identification method.

Also, the Company uses derivative instruments, as further described in Note 5, to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value on the Company’s consolidated balance sheets.

The Company also is subject to contingent consideration obligations related to certain of its acquisitions as more fully discussed in Note 9. These obligations are carried at their estimated fair value within the Company’s consolidated balance sheets.

Fair value is defined by the ASC as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset.

The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows:

Level 1 : quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement;

Level 2 : inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;

Level 3 : unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk principally consist of cash and cash equivalents, short-term investments, trade receivables and derivatives.

The Company manages its credit risk exposure by allocating its cash equivalents among various money market mutual funds, money market deposit accounts, certificates of deposits and high- grade commercial paper. Short-term investments primarily consist of certificates of deposit as of December 31,2014 and 2013. The Company manages its credit risk exposure on cash equivalents and short-term investments by limiting the amount it can invest with any single entity. No customer accounted for 10% or more of accounts receivable at December 31,2014 or 2013.

Earnings per Share of Common Stock

Earnings per Share of Common Stock

Basic shares outstanding is calculated based on the weighted average number of shares of common stock outstanding during the reporting period. Diluted shares outstanding is calculated giving effect to all potentially dilutive common shares, assuming that such shares were outstanding during the reporting period.

Pension and Other Retirement Benefits

Pension and Other Retirement Benefits

Moody’s maintains various noncontributory DBPPs as well as other contributory and noncontributory retirement plans. The expense and assets/liabilities that the Company reports for its pension and other retirement benefits are dependent on many assumptions concerning the outcome of future events and circumstances. These assumptions represent the Company’s best estimates and may vary by plan. The differences between the assumptions for the expected long-term rate of return on plan assets and actual experience is spread over a five-year period to the market related value of plan assets which is used in determining the expected return on assets component of annual pension expense. All other actuarial gains and losses are generally deferred and amortized over the estimated average future working life of active plan participants.

The Company recognizes as an asset or liability in its consolidated balance sheet the funded status of its defined benefit retirement plans, measured on a plan-by-plan basis. Changes in the funded status due to actuarial gains/losses are recorded as part of other comprehensive income during the period the changes occur.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Estimates are used for, but not limited to, revenue recognition, accounts receivable allowances, income taxes, contingencies, valuation of long-lived and intangible assets, goodwill, pension and other retirement benefits, stock-based compensation, and depreciable lives for property and equipment and computer software.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”. This ASU outlines a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual and interim reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company is currently evaluating its adoption options and the impact that adoption of this update will have on its consolidated financial statements. Currently, the Company believes this ASU will have an impact on: i) the capitalization of certain contract implementation costs for its ERS business; ii) the accounting for certain ratings monitoring fees received in advance of service being rendered; iii) the accounting for certain license and maintenance revenue in MA; iv) the accounting for certain ERS revenue arrangements where VSOE is not available and v) the accounting for contract acquisition costs.

In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This ASU clarifies the current accounting guidance for entities that issue share-based payment awards that require a specific performance target be achieved for employees to become eligible to vest in the awards, which may occur subsequent to a required service period. The current accounting guidance does not explicitly address how to account for these types of award. The ASU provides explicit guidance and clarifies that these types of performance targets should be treated as performance conditions, and accordingly should not be reflected in the determination of the grant-date fair value of the awards. This ASU is effective for all annual periods and interim reporting periods beginning after December 15, 2015, with early adoption permitted. The Company currently accounts for transactions involving stock-based compensation awards with performance conditions in accordance with the provisions set forth in this ASU. Accordingly, the adoption of this update will not have an impact on the Company’s consolidated financial statements.

Comprehensive Income

Comprehensive Income

Comprehensive income represents the change in net assets of a business enterprise during a period due to transactions and other events and circumstances from non-owner sources including foreign currency translation impacts, net actuarial losses and net prior service costs related to pension and other retirement plans, gains and losses on derivative instruments and unrealized gains and losses on securities designated as ‘available-for-sale’ under Topic 320 of the ASC.

investment policy

Short-term Investments

Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next twelve months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned.

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Net Periodic Benefit Expenses Recognized for Post-Retirement Plans (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Amortization of net prior service costs from earlier periods
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	18.4	19.8	18.9
Interest cost	16.5	13.5	13.1
Expected return on plan assets	(14.3)	(12.9)	(12.5)
Amortization of net actuarial loss from earlier periods	6.6	10.8	9.1
Amortization of net prior service costs from earlier periods	0.7	0.6	0.7
Net periodic expense	27.9	31.8	29.3
Other Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	1.7	1.7	1.5
Interest cost	0.9	0.8	0.7
Expected return on plan assets
Amortization of net actuarial loss from earlier periods		0.3	0.3
Amortization of net prior service costs from earlier periods
Net periodic expense	$ 2.6	$ 2.8	$ 2.5

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Capital Stock - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended			3 Months Ended												12 Months Ended
	Dec. 17, 2014	Feb. 12, 2014	Feb. 13, 2013	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Capital Stock [Line Items]
All classes of stock, shares authorized				1,020,000,000												1,020,000,000
Shares of all classes of stock, par value				$ 0.01												$ 0.01
Preferred stock, shares authorized				10,000,000				10,000,000								10,000,000	10,000,000
Amount authorized to be repurchased	$ 1,000.0	$ 1,000.0	$ 1,000.0
Dividends declared per share	$ 0.34			$ 0.62	$ 0.28	$ 0.28	$ 0	$ 0.53	$ 0.25	$ 0.2	$ 0	$ 0.16	$ 0.16	$ 0	$ 0.36	$ 1.18	$ 0.98	$ 0.68
Dividends declaration date																Dec. 16, 2014
Dividends payable date																Mar. 10, 2015
Dividends payable record date																Feb. 20, 2015
Common Stock
Schedule Of Capital Stock [Line Items]
Common stock, shares authorized				1,000,000,000				1,000,000,000								1,000,000,000	1,000,000,000
Series common stock
Schedule Of Capital Stock [Line Items]
Common stock, shares authorized				10,000,000				10,000,000								10,000,000	10,000,000

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PENSION AND OTHER RETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Changes in Benefit Obligations and Fair Value of Plan Assets for Post-Retirement Plans

			Pension Plans					Other Retirement Plans
			2014			2013			2014		2013
Change in benefit obligation:
	Benefit obligation, beginning of the period			$	(347.1)	$	(356.3)		$	(20.7)	$	(21.8)
		Service cost			(18.4)		(19.8)			(1.7)		(1.7)
		Interest cost			(16.5)		(13.5)			(0.9)		(0.8)
		Plan participants’ contributions			-		-			(0.4)		(0.3)
		Benefits paid			6.4		5.3			0.6		0.6
		Actuarial gain (loss)			(8.3)		(0.7)			(0.1)		1.0
		Assumption changes			(77.9)		37.9			(3.5)		2.3
	Benefit obligation, end of the period				(461.8)		(347.1)			(26.7)		(20.7)
Change in plan assets:
	Fair value of plan assets, beginning of the period				204.6		167.6			-		-
		Actual return on plan assets			12.9		23.0			-		-
		Benefits paid			(6.4)		(5.3)			(0.6)		(0.6)
		Employer contributions			37.3		19.3			0.2		0.3
		Plan participants' contributions			-		-			0.4		0.3
	Fair value of plan assets, end of the period				248.4		204.6			-		-
Funded Status of the plans					(213.4)		(142.5)			(26.7)		(20.7)
Amounts recorded on the consolidated balance sheets:
	Pension and retirement benefits liability - current				(4.3)		(6.2)			(0.8)		(0.8)
	Pension and retirement benefits liability - non current				(209.1)		(136.3)			(25.9)		(19.9)
Net amount recognized				$	(213.4)	$	(142.5)		$	(26.7)	$	(20.7)
Accumulated benefit obligation, end of the period				$	(396.3)	$	(298.5)

Accumulated Benefit Obligation in Excess of Plan Assets

	December 31,
	2014		2013
Aggregate projected benefit obligation	$	461.8	$	347.1
Aggregate accumulated benefit obligation	$	396.3	$	298.5
Aggregate fair value of plan assets	$	248.4	$	204.6

Summary of Pre-Tax Net Actuarial Losses and Prior Service Cost Recognized in Accumulated Other Comprehensive Income (Loss)

	Pension Plans				Other Retirement Plans
	2014		2013		2014		2013
Net actuarial losses	$	(165.5)	$	(84.6)	$	(6.0)	$	(2.4)
Net prior service costs		(2.7)		(3.3)		-		-
Total recognized in AOCI- pretax	$	(168.2)	$	(87.9)	$	(6.0)	$	(2.4)

Summary of Post-Retirement Plans to Amortize from Accumulated Other Comprehensive Income (Loss) as Net Periodic Expense

	Pension Plans		Other Retirement Plans
Net actuarial losses	$	13.6	$	0.3
Net prior service costs		0.7		-
Total to be recognized as components of net periodic expense	$	14.3	$	0.3

Net Periodic Benefit Expenses Recognized for Post-Retirement Plans

	Pension Plans						Other Retirement Plans
	2014		2013		2012		2014		2013		2012
Components of net periodic expense
Service cost	$	18.4	$	19.8	$	18.9	$	1.7	$	1.7	$	1.5
Interest cost		16.5		13.5		13.1		0.9		0.8		0.7
Expected return on plan assets		(14.3)		(12.9)		(12.5)		-		-		-
Amortization of net actuarial loss from earlier periods		6.6		10.8		9.1		-		0.3		0.3
Amortization of net prior service costs from earlier periods		0.7		0.6		0.7		-		-		-
Net periodic expense	$	27.9	$	31.8	$	29.3	$	2.6	$	2.8	$	2.5

Summary of Pre-Tax Amounts Recorded in Other Comprehensive Income

	Pension Plans				Other Retirement Plans
	2014		2013		2014		2013
Amortization of net actuarial losses	$	6.6	$	10.8	$	-	$	0.3
Amortization of prior service costs		0.7		0.6		-		-
Net actuarial gain (loss) arising during the period		(87.5)		47.3		(3.7)		3.3
Total recognized in OCI – pre-tax	$	(80.2)	$	58.7	$	(3.7)	$	3.6

Weighted-Average Assumptions Used to Determine Benefit Obligations

	Pension Plans		Other Retirement Plans
	2014	2013	2014	2013
Discount rate	3.78%	4.71%	3.65%	4.45%
Rate of compensation increase	3.76%	4.00%	-	-

Weighted-Average Assumptions Used to Determine Net Periodic Benefit Expense

	Pension Plans			Other Retirement Plans
	2014	2013	2012	2014	2013	2012
Discount rate	4.71%	3.82%	4.25%	4.45%	3.55%	4.05%
Expected return on plan assets	6.80%	7.30%	7.85%	-	-	-
Rate of compensation increase	4.00%	4.00%	4.00%	-	-	-

Assumed Healthcare Cost Trend Rates

	2014			2013			2012
	Pre-age 65		Post-age 65	Pre-age 65		Post-age 65	Pre-age 65	Post-age 65
Healthcare cost trend rate assumed for the following year	7.95%		7.05%	8.2%		7.3%	6.9%	7.9%
Ultimate rate to which the cost trend rate is assumed to declines (ultimate trend rate)	5.0%			5.0%			5.0%
Year that the rate reaches the ultimate trend rate	2028	2026		2028	2026		2020

Summary of Pension Plan Assets by Category Based on Hierarchy of Fair Value Measurements

		Fair Value Measurement as of December 31, 2014
Asset Category		Balance		Level 1		Level 2		Level 3		% of total assets
Cash and cash equivalent		$	13.2	$	-	$	13.2	$	-	5%
Emerging markets equity fund			14.0	$	14.0	$	-		-	6%
Common/collective trust funds - equity securities
	Global large-cap		92.2		-		92.2		-	37%
	U.S. small and mid-cap		16.5		-		16.5		-	7%
Total equity investments			122.7		14.0		108.7		-	50%
Emerging markets bond fund			9.1		9.1		-		-	4%
Common/collective trust funds - fixed income securities
	Intermediate-term investment grade U.S. government/ corporate bonds		60.8		-		60.8		-	24%
	U.S. Treasury Inflation-Protected Securities (TIPs)		10.7		-		10.7		-	4%
	Convertible securities		7.5		-		7.5		-	3%
Private investment fund - high yield securities			6.7		-		6.7		-	3%
Total fixed-income investments			94.8		9.1		85.7		-	38%
Other investment- Common/collective trust fund — private real estate fund			17.8		-		17.8		-	7%
Total Assets		$	248.5	$	23.1	$	207.6	$	-	100%
		Fair Value Measurement as of December 31, 2013
Asset Category		Balance		Level 1		Level 2		Level 3		% of total assets
Cash and cash equivalent		$	0.4	$	-	$	0.4	$	-	-
Emerging markets equity fund			14.6	$	14.6	$	-		-	7%
Common/collective trust funds - equity securities
	U.S. large-cap		44.5		-		44.5		-	22%
	U.S. small and mid-cap		15.3		-		15.3		-	7%
	International		58.2		-		58.2		-	29%
Total equity investments			132.6		14.6		118.0		-	65%
Common/collective trust funds - fixed income securities
	Long-term government/treasury bonds		13.7		-		13.7		-	7%
	Long-term investment grade corporate bonds		15.4		-		15.4		-	7%
	U.S. Treasury Inflation-Protected Securities (TIPs)		8.7		-		8.7		-	4%
	Emerging markets bonds		5.8		-		5.8		-	3%
	High yield bonds		6.1		-		6.1		-	3%
	Convertible securities		6.3		-		6.3		-	3%
Total fixed-income investments			56.0		-		56.0		-	27%
Other investment - Common/collective trust fund - private real estate fund			15.6		-		-		15.6	8%
Total Assets		$	204.6	$	14.6	$	174.4	$	15.6	100%

Summary of Changes in Fair Value of Plan's Level Three Assets

Real estate investment fund:
Balance as of December 31, 2013	$	15.6
Return on plan assets related to assets held as of December 31, 2014		1.6
Transfer (out), net		(17.8)
Purchases (sales), net		0.6
Balance as of December 31, 2014	$	-

Estimated Future Benefits Payments for Retirement Plans

Year Ending December 31,	Pension Plans		Other  Retirement Plans
2015	$	8.3	$	0.8
2016		10.3		1.0
2017		10.9		1.1
2018		39.6		1.3
2019		14.0		1.5
2020 – 2024	$	110.5	$	9.6

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Cash Equivalent and Investments - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Minimum | fixed maturity and open ended mutual funds [Member]
Schedule Of Investments [Line Items]
securities, maturity period	6 months
Minimum | short term investment
Schedule Of Investments [Line Items]
securities, maturity period	1 month	1 month
Maximum | certificate of deposit
Schedule Of Investments [Line Items]
securities, maturity period	90 days
Maximum | fixed maturity and open ended mutual funds [Member]
Schedule Of Investments [Line Items]
securities, maturity period	23 months
Maximum | short term investment
Schedule Of Investments [Line Items]
securities, maturity period	10 months	9 months

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Financial Instruments Carried at Fair Value on Recurring Basis (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivatives, assets	$ 41.8	$ 20.5
Total, assets	239.5	232.8
Derivatives, liabilities	2.1	1.7
Contingent consideration arising from acquisitions, liabilities	2.1	17.5
Total, liabilities	4.2	19.2
money market	149.7	212.3
fixed maturity and open ended mutual funds [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed Maturity Mutual Funds and Open Ended Mutual Funds	48.0
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivatives, assets	41.8	20.5
Total, assets	41.8	20.5
Derivatives, liabilities	2.1	1.7
Contingent consideration arising from acquisitions, liabilities	0	0
Total, liabilities	2.1	1.7
Fixed Maturity Mutual Funds and Open Ended Mutual Funds	0
money market	0	0
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivatives, assets
Total, assets
Derivatives, liabilities	0	0
Contingent consideration arising from acquisitions, liabilities	2.1	17.5
Total, liabilities	2.1	17.5
Fixed Maturity Mutual Funds and Open Ended Mutual Funds	0
money market	0	0
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivatives, assets
Total, assets	197.7	212.3
Derivatives, liabilities	0	0
Contingent consideration arising from acquisitions, liabilities	0	0
Total, liabilities
money market	149.7	212.3
Level 1 | fixed maturity and open ended mutual funds [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed Maturity Mutual Funds and Open Ended Mutual Funds	$ 48.0

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) Share data in Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenue	$ 3,334,300,000	$ 2,972,500,000	$ 2,730,300,000
Expenses
Operating	930,300,000	822,400,000	795,000,000
Selling, general and administrative	869,300,000	822,100,000	752,200,000
Goodwill impairment charge			12,200,000
Depreciation and amortization	95,600,000	93,400,000	93,500,000
Total expenses	1,895,200,000	1,737,900,000	1,652,900,000
Operating income	1,439,100,000	1,234,600,000	1,077,400,000
Interest income (expense), net	(116,800,000)	(91,800,000)	(63,800,000)
Other non-operating income (expense), net	35,900,000	26,500,000	10,400,000
Non-operating income (expense), net	21,900,000	(65,300,000)	(53,400,000)
Income before provision for income taxes	1,461,000,000	1,169,300,000	1,024,000,000
Provision for income taxes	455,000,000	353,400,000	324,300,000
Net income	1,006,000,000	815,900,000	699,700,000
Less: Net income attributable to noncontrolling interests	17,300,000	11,400,000	9,700,000
Net income attributable to Moody's	988,700,000	804,500,000	690,000,000
Earnings per share
Basic	$ 4.69	$ 3.67	$ 3.09
Diluted	$ 4.61	$ 3.6	$ 3.05
Weighted average shares outstanding
Basic	210.7	219.4	223.2
Diluted	214.7	223.5	226.6
ICRA Gain	$ 102,800,000	$ 0	$ 0

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LEASE COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Operating Leases, Minimum Rent for Payment

Year Ending December 31,	Operating Leases
2015	$	93.4
2016		80.9
2017		78.3
2018		72.7
2019		64.9
Thereafter		447.3
Total minimum lease payments	$	837.5

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Summary of Information Relating to Stock Option Exercises (Detail) (Stock Option Exercises, USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Stock Option Exercises
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Proceeds from stock option exercises	$ 145.5	$ 163.3	$ 127.4
Aggregate intrinsic value	122.3	112.4	61.3
Tax benefit realized upon exercise	$ 43.2	$ 41.1	$ 23.4

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CASH EQUIVALENT AND INVESTMENTS (table)

12 Months Ended

Dec. 31, 2014

Schedule of Available for sale Securities

Cash Equivalent And Investments

	As of December 31, 2014
							Balance sheet location
	Cost		Gross Unrealized Gains		Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	149.7	$	-	$	149.7	$	149.7	$	-	$	-
Certificates of deposit and money market deposit accounts (1)	$	842.5	$	-	$	842.5	$	380.1	$	458.1	$	4.3
Fixed maturity and open ended mutual funds (2)	$	47.1	$	0.9	$	48.0	$	-	$	-	$	48.0
	As of December 31, 2013
							Balance sheet location
	Cost		Gross Unrealized Gains		Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	212.3	$	-	$	212.3	$	212.3	$	-	$	-
Certificates of deposit and money market deposit accounts (1)	$	911.8	$	-	$	911.8	$	725.0	$	186.8	$	-
(1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one month to ten months at December 31, 2014 and one month to nine months at December 31, 2013. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.
(2) Consists of investments in fixed maturity mutual funds and open-ended mutual funds held by ICRA. The remaining contractual maturities for the fixed maturity instruments range from two months to 23 months at December 31, 2014.

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Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Derivatives assets	$ 41.8	$ 20.5
Derivatives designated as accounting hedges
Debt Instrument [Line Items]
Derivatives assets	$ 36.2	$ 19.6

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities
Net income	$ 1,006,000,000	$ 815,900,000	$ 699,700,000
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	95,600,000	93,400,000	93,500,000
Stock-based compensation expense	80,400,000	67,100,000	64,500,000
Goodwill impairment charge			12,200,000
Deferred income taxes	29,900,000	(27,200,000)	36,100,000
Excess tax benefits from settlement of stock-based compensation awards	(58,700,000)	(38,800,000)	(15,700,000)
ICRA Gain	(102,800,000)	0	0
Legacy Tax Matters	(6,400,000)	(19,200,000)	(12,800,000)
Changes in assets and liabilities:
Accounts receivable	(98,300,000)	(67,000,000)	(128,200,000)
Other current assets	(41,000,000)	(21,700,000)	(14,100,000)
Other assets	(1,700,000)	(700,000)	5,100,000
Accounts payable and accrued liabilities	59,200,000	(2,900,000)	101,700,000
Deferred revenue	38,400,000	66,100,000	20,900,000
Unrecognized tax benefits and other non-current tax liabilities	30,600,000	30,900,000	(49,200,000)
Other liabilities	(12,600,000)	30,900,000	9,400,000
Net cash provided by operating activities	1,018,600,000	926,800,000	823,100,000
Cash flows from investing activities
Capital additions	(74,600,000)	(42,300,000)	(45,000,000)
Purchases of short-term investments	(406,300,000)	(225,900,000)	(56,200,000)
Sales and maturities of investments	134,000,000	57,000,000	54,500,000
Cash paid for acquisitions and investment in affiliates, net of cash acquired	(239,700,000)	(50,700,000)	(3,500,000)
Payments for settlements of net investment hedges	(500,000)	0	0
Receipts from settlement of net investment hedges	22,200,000	0	0
Net cash used in investing activities	(564,900,000)	(261,900,000)	(50,200,000)
Cash flows from financing activities
Issuance of notes	747,700,000	497,200,000	496,100,000
Repayment of notes	(300,000,000)	(63,800,000)	(71,300,000)
Net proceeds from stock plans	98,000,000	136,000,000	116,700,000
Excess tax benefits from settlement of stock-based compensation awards	58,700,000	38,800,000	15,700,000
Cost of treasury shares repurchased	(1,220,500,000)	(893,100,000)	(196,500,000)
Payment of dividends	(236,000,000)	(197,300,000)	(143,000,000)
Payment of dividends to noncontrolling interests	(11,800,000)	(12,200,000)	(8,300,000)
Contingent consideration paid	(10,300,000)	(300,000)	(500,000)
Debt issuance costs and related fees	(6,500,000)	(4,100,000)	(6,300,000)
Net cash provided by (used in) financing activities	(1,064,500,000)	(498,800,000)	202,600,000
Redemption of the Copal call option	(183,800,000)	0	0
Effect of exchange rate changes on cash and cash equivalents	(89,200,000)	(2,000,000)	19,900,000
Increase in cash and cash equivalents	(700,000,000)	164,100,000	995,400,000
Cash and cash equivalents, beginning of period	1,919,500,000	1,755,400,000	760,000,000
Cash and cash equivalents, end of period	$ 1,219,500,000	$ 1,919,500,000	$ 1,755,400,000

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Weighted Average Assumptions used in Determining Fair Value for Options Granted (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Weighted Average Assumptions For Fair Values Of Stock Options [Line Items]
Expected dividend yield	1.41%	1.72%	1.66%
Expected stock volatility	41.00%	43.00%	44.00%
Risk-free interest rate	2.30%	1.53%	1.55%
Expected holding period	7 years 2 months 12 days	7 years 2 months 12 days	7 years 4 months 24 days
Grant date fair value	$ 31.53	$ 17.58	$ 15.19

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Gains and Losses on Derivatives Designated as Hedging Instruments, Net Investment Hedging (Detail) (Net Investment Hedging, USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)	$ 19.4	$ 3.7	$ (2.2)
Foreign exchange forward
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)	$ 19.4	$ 3.7	$ (2.2)

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Summary of Performance Based Restricted Stock (Detail) (Performance-Based Restricted Stock, USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Performance-Based Restricted Stock
Performance based restricted stock
Shares, Beginning Balance	1.2
Shares, Granted	0.2
Shares, Vested	0.5
Shares, Adjustment to shares expected to vest
Shares, Ending Balance	0.9
Performance based restricted stock, Weighted Average Grant Date Fair Value Per Share
Weighted Average Grant Date Fair Value Per Share, Beginning Balance	$ 31.17
Weighted Average Grant Date Fair Value Per Share, Adjustment	$ 0
Weighted Average Grant Date Fair Value Per Share, Ending Balance	$ 46.09

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PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2014

Property and Equipment, Net

		December 31,
		2014		2013
Office and computer equipment (3 - 10 year estimated useful life)		$	152.5	$	129.7
Office furniture and fixtures (3 - 10 year estimated useful life)			43.8		40.6
Internal-use computer software (3 - 10 year estimated useful life)			336.8		284.9
Leasehold improvements and building (3 - 20 year estimated useful life)			220.7		199.2
	Total property and equipment, at cost		753.8		654.4
Less: accumulated depreciation and amortization			(451.5)		(375.7)
Total property and equipment, net		$	302.3	$	278.7

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Reclassification out of AOCI (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	$ 4.4	$ 1.4	$ 0
Foreign Currency Translation Adjustment Reclassification Of Losses To Net Income Pursuant To Icra Step Acquisition Net Of Tax	(4.4)	(1.4)
Cash flow and net investment hedges, net of tax:
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax	0	1.2	4.1
Other Comprehensive Income Loss Reclassification Adjustment From AOCI On Derivatives Tax	0	0.5	1.7
Other Comprehensive Income Loss Reclassification Adjustment On Derivatives Included In Net Income Net Of Tax	0	0.7	2.4
Pension and Other Retirement Benefits, net of tax:
Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Net Unamortized Gain Loss Arising During Period Before Tax	7.3	11.9	10.0
Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax	(2.8)	(4.9)	(4.1)
Amortization of actuarial losses and prior service costs included in net income	4.5	7.0	5.9
Total other comprehensive income (loss)-Net of Tax	(180.6)	27.5	26.4
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax	4.4	1.4	0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax	0	0	0
Total Reclassifications	4.4	1.4	0
Gains on available for sale securities, net of tax:
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Net Of Tax	(0.1)	0	0
Selling, General and Administrative Expenses [Member]
Pension and Other Retirement Benefits, net of tax:
Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Net Unamortized Gain Loss Arising During Period Before Tax	(4.7)	(4.3)
Operating Expense [Member]
Pension and Other Retirement Benefits, net of tax:
Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Net Unamortized Gain Loss Arising During Period Before Tax	(2.6)	(7.6)
Interest Expense [Member]
Cash flow and net investment hedges, net of tax:
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax		(1.2)
Other Nonoperating Income Expense [Member]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	0	(1.4)
Pension and Other Retirement Benefits, net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax	0	(1.4)
Total Reclassifications	0	(1.4)
IncomeTaxMember [Member]
Cash flow and net investment hedges, net of tax:
Other Comprehensive Income Loss Reclassification Adjustment From AOCI On Derivatives Tax		0.5
ICRA Gain [Member]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	(4.4)	0
Pension and Other Retirement Benefits, net of tax:
Total Reclassifications	$ (4.4)	$ 0

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Purchase Price Allocation (Parenthetical) (Detail)	0 Months Ended
	Dec. 11, 2013	Jun. 26, 2014	Jul. 17, 2014
Amba | Trade names
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)	7 years
Amba | Client relationships
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)	12 years
Amba | Other intangibles
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)	3 years
Amba | Total Intangible Assets
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)	11 years
ICRA [Member] | Trade names
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)		36 years
ICRA [Member] | Client relationships
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)		19 years
ICRA [Member] | Other intangibles
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)		17 years
ICRA [Member] | Total Intangible Assets
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)		26 years
Web Equity Solutions [Member] | Trade names
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)			4 years
Web Equity Solutions [Member] | Client relationships
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)			18 years
Web Equity Solutions [Member] | Software
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)			15 years
Web Equity Solutions [Member] | Total Intangible Assets
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)			17 years

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INCOME TAXES

12 Months Ended

Dec. 31, 2014

INCOME TAXES

NOTE 14 INCOME TAXES

Components of the Company’s provision for income taxes are as follows:

			Year Ended December 31,
			2014		2013		2012
Current:
	Federal		$	252.8	$	226.2	$	168.1
	State and Local			70.2		57.6		33.7
	Non-U.S.			102.1		96.8		86.4
		Total current		425.1		380.6		288.2
Deferred:
	Federal			0.9		(13.1)		35.7
	State and Local			4.9		(5.6)		4.5
	Non-U.S.			24.1		(8.5)		(4.1)
		Total deferred		29.9		(27.2)		36.1
Total provision for income taxes			$	455.0	$	353.4	$	324.3

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate on income before provision for income taxes is as follows:

	Year Ended December 31,
	2014		2013			2012
U.S. statutory tax rate		35.0%		35.0%			35.0%
State and local taxes, net of federal tax benefit		3.6		2.9			2.4
Benefit of foreign operations		(7.4)		(6.4)			(6.1)
Legacy tax items		(0.2)		(0.6)			(0.4)
Other		0.1		(0.7)			0.8
Effective tax rate		31.1%		30.2%			31.7%
Income tax paid	$	369.4	$	335.7	(1)	$	293.3
(1) Includes fourth quarter 2012 estimated federal tax payment made in 2013 due to IRS relief for companies affected by Hurricane Sandy
(2) Includes approximately $92 million in payments for tax audit settlements in the first quarter of 2012.

The source of income before provision for income taxes is as follows:

	Year Ended December 31,
	2014		2013		2012
United States	$	912.6	$	836.1	$	694.2
International		548.4		333.2		329.8
Income before provision for income taxes	$	1,461.0	$	1,169.3	$	1,024.0

The components of deferred tax assets and liabilities are as follows:

					December 31,
					2014		2013
Deferred tax assets:
	Current:
		Account receivable allowances			$	7.7	$	8.2
		Accrued compensation and benefits				14.6		12.8
		Deferred revenue				6.7		7.3
		Legal and professional fees				10.4		10.9
		Restructuring				2.3		3.5
		Uncertain tax positions				-		7.5
		Other				3.5		0.7
			Total current			45.2		50.9
	Non-current:
		Accumulated depreciation and amortization				0.9		2.6
		Stock-based compensation				62.3		73.7
		Benefit plans				108.7		78.9
		Deferred rent and construction allowance				30.5		30.4
		Deferred revenue				34.2		33.4
		Foreign net operating loss		(1)		7.5		10.6
		Uncertain tax positions				38.3		26.8
		Self-insured related reserves				14.9		20.4
		Other				5.6		4.3
			Total non-current			302.9		281.1
Total deferred tax assets						348.1		332.0
Deferred tax liabilities:
	Current:
		Compensation and benefits				(3.0)		-
		Unrealized gain on net investment hedges - OCI				(14.0)		-
		Other				(1.1)		-
			Total Current			(18.1)		-
	Non-current:
		Accumulated depreciation and amortization of intangible assets and capitalized software				(204.3)		(153.7)
		Foreign earnings to be repatriated				(3.4)		(3.7)
		Self-insured related income				(16.9)		(24.0)
		Other liabilities				(0.1)		(2.7)
			Total non-current			(224.7)		(184.1)
Total deferred tax liabilities						(242.8)		(184.1)
Net deferred tax asset						105.3		147.9
Valuation allowance						(6.9)		(8.4)
Total net deferred tax assets					$	98.4	$	139.5
(1) Amounts are primarily set to expire beginning in 2018, if unused.

As of December 31, 2014, the Company had approximately $2,032.0 million of undistributed earnings of foreign subsidiaries that it intends to indefinitely reinvest in foreign operations. The Company has not provided deferred income taxes on these indefinitely reinvested earnings. It is not practicable to determine the amount of deferred taxes that might be required to be provided if such earnings were distributed in the future, due to complexities in the tax laws and in the hypothetical calculations that would have to be made.

The Company had valuation allowances of $6.9 million and $8.4 million at December 31, 2014 and 2013, respectively, related to foreign net operating losses for which realization is uncertain.

As of December 31, 2014 the Company had $220.3 million of UTPs of which $157.1 million represents the amount that, if recognized, would impact the effective tax rate in future periods.

A reconciliation of the beginning and ending amount of UTPs is as follows:

	Year Ended December 31,
	2014		2013		2012
Balance as of January 1	$	195.6	$	156.6	$	205.4
Additions for tax positions related to the current year		52.5		67.8		49.1
Additions for tax positions of prior years		8.7		6.1		18.9
Reductions for tax positions of prior years		(13.0)		(10.1)		(20.6)
Settlements with taxing authorities		(18.8)		(21.4)		(91.5)
Lapse of statute of limitations		(4.7)		(3.4)		(4.7)
Balance as of December 31	$	220.3	$	195.6	$	156.6

The Company classifies interest related to UTPs in interest expense in its consolidated statements of operations. Penalties, if incurred, would be recognized in other non-operating expenses. During the years ended December 31, 2014 and 2013, the Company incurred a net interest expense of $5.5 million and $7.6 million respectively,related to UTPs. During 2012, the Company realized a net interest benefit of $1.6 million related to UTPs. As of December 31, 2014 and 2013, the amount of accrued interest recorded in the Company’s consolidated balance sheets related to UTPs was $20.8 million and $17.9 million, respectively.

Moody’s Corporation and subsidiaries are subject to U.S. federal income tax as well as income tax in various state, local and foreign jurisdictions. The Company’s U.S. federal income tax returns for the years 2008 through 2010 are under examination and its 2011 to and 2013 returns remain open to examination. The Company’s New York State income tax returns for 2011 to 2013 remain open to examination. The Company’s New York City income tax returns have been examined through 2012. The Company settled the U.K. tax audit for tax years 2007 through 2011 during the first quarter of 2014. Tax filings in the U.K. remain open to examination for tax years 2012 through 2013.

For current ongoing audits related to open tax years, the Company estimates that it is possible that the balance of UTPs could decrease in the next twelve months as a result of the effective settlement of these audits, which might involve the payment of additional taxes, the adjustment of certain deferred taxes and/or the recognition of tax benefits. It is also possible that new issues might be raised by tax authorities which might necessitate increases to the balance of UTPs. As the Company is unable to predict the timing of conclusion of these audits, the Company is unable to estimate the amount of changes to the balance of UTPs at this time.

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ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2014

Amba

Summary of Fair Values of Assets Acquired and Liabilities Assumed

Current assets				$	23.7
Property and equipment, net					0.4
Intangible assets:
	Trade name (7 year weighted average life)	$	3.3
	Client relationships (12 year weighted average life)		26.7
	Other (3 year weighted average life)		1.6
	Total intangible assets (11 year weighted average life)				31.6
Goodwill					29.2
Indemnification asset					10.4
Other assets					2.0
Liabilities assumed					(25.7)
Net assets acquired				$	71.6

Total Consideration Transferred to Sellers

Cash paid	$	67.3
Contingent consideration liability assumed		4.3
Total fair value of consideration transferred	$	71.6

ICRA [Member]

Summary of Fair Values of Assets Acquired and Liabilities Assumed

Current assets				$	25.4
Property and equipment, net					15.1
Intangible assets:
	Trade name (36 year weighted average life)	$	46.8
	Client relationships (19 year weighted average life)		33.8
	Other (17 year weighted average life)*		18.3
	Total intangible assets (26 year weighted average life)				98.9
Goodwill					296.7
Other assets					56.3
Liabilities					(62.7)
Fair value of non-controlling interest assumed					(218.8)
Net assets acquired				$	210.9
* Primarily consists of acquired technical know-how and ratings methodologies

Total Consideration Transferred to Sellers

Cash paid	$	86.0
Fair value of equity interest in ICRA prior to obtaining a controlling interest		124.9
Total consideration	$	210.9
The cash paid in the table above was funded by using Moody's non-U.S. cash on hand.

Web Equity Solutions [Member]

Summary of Fair Values of Assets Acquired and Liabilities Assumed

Current assets				$	3.0
Property and equipment, net					2.3
Intangible assets:
	Client relationships (18 year weighted average life)	$	42.8
	Software (15 year weighted average life)		11.5
	Trade name (4 year weighted average life)		0.5
	Total intangible assets (17 year weighted average life)				54.8
Goodwill					77.6
Liabilities assumed					(7.2)
Net assets acquired				$	130.5

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Information Related to Vesting of Restricted Stock Awards (Detail) (Restricted Stock, USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Restricted Stock
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Fair value of vested shares	$ 92.4	$ 54.6	$ 37.8
Tax benefit realized upon vesting	$ 31.2	$ 19.3	$ 13.4

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Summary of Activity for Both Allowances (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of the Year accounts receivable allowance				$ (28.0)
Balance at End of the Year accounts receivable allowance	29.4	28.9	(29.1)	(28.0)
Balance at beginning of the year DTA valuation allowance				(13.9)
Balance at end of the year DTA valuation allowance	6.9	8.4	(15.2)	(13.9)
Accounts receivable allowance
Valuation And Qualifying Accounts Disclosure [Line Items]
Additions	(54.9)	(44.5)	(44.3)
Write-offs and Adjustments	(54.4)	(44.7)	(43.2)
Deferred tax assets - valuation allowance
Valuation And Qualifying Accounts Disclosure [Line Items]
Additions	(0.1)	(0.1)	(3.1)
Write-offs and Adjustments	$ (1.6)	$ (6.9)	$ (1.8)

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CAPITAL STOCK

12 Months Ended

Dec. 31, 2014

CAPITAL STOCK

NOTE 16 CAPITAL STOCK

Authorized Capital Stock

The total number of shares of all classes of stock that the Company has authority to issue under its Restated Certificate of Incorporation is 1.02 billion shares with a par value of $0.01, of which 1.0 billion are shares of common stock, 10.0 million are shares of preferred stock and 10.0 million are shares of series common stock. The preferred stock and series common stock can be issued with varying terms, as determined by the Board.

Share Repurchase Program

The Company implemented a systematic share repurchase program in the third quarter of 2005 through an SEC Rule 10b5-1 program. Moody’s may also purchase opportunistically when conditions warrant. As a result, Moody’s share repurchase activity will continue to vary from quarter to quarter. The table below summarizes the Company’s remaining authority under the various share repurchase programs as of December 31, 2014:

Date Authorized	Amount Authorized		Remaining Authority
February 12, 2013	$	1,000.0	$	-
February 11, 2014	$	1,000.0	$	563.5
December 16, 2014	$	1,000.0	$	1,000.0

During 2014, Moody’s repurchased 13.8 million shares of its common stock under its share repurchase program and issued 4.9 million shares under employee stock-based compensation plans.

Dividends

The Company’s cash dividends were:

	Dividends Per Share
	Year ended December 31,
	2014				2013				2012
	Declared		Paid		Declared		Paid		Declared		Paid
First quarter	$	-	$	0.28	$	-	$	0.20	$	-	$	0.16
Second quarter		0.28		0.28		0.20		0.20		0.16		0.16
Third quarter		0.28		0.28		0.25		0.25		0.16		0.16
Fourth quarter		0.62		0.28		0.53		0.25		0.36		0.16
Total	$	1.18	$	1.12	$	0.98	$	0.90	$	0.68	$	0.64

On December 16, 2014, the Board of the Company approved the declaration of a quarterly dividend of $0.34 per share of Moody’s common stock, payable on March 10, 2015 to shareholders of record at the close of business on February 20, 2015. The continued payment of dividends at the rate noted above, or at all, is subject to the discretion of the Board..

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Goodwill and Other Acquired Intangible Assets - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Goodwill And Other Intangible Assets [Line Items]
Goodwill impairment charge		$ 1,000,000	$ 1,000,000			$ 12,200,000
Intangible assets impairment charge	$ 1,000,000

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Summary of Total Indebtedness (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Fair value of interest rate swap	$ 41.8	$ 20.5
Series 2005-1 Notes
Debt Instrument [Line Items]
Fair value of interest rate swap	10.3	13.8
2010 Senior Notes
Debt Instrument [Line Items]
Fair value of interest rate swap	5.8
Unamortized discount	2.2	2.2
2012 Senior Notes
Debt Instrument [Line Items]
Unamortized discount	3.1	3.5
2013 Senior Notes
Debt Instrument [Line Items]
Unamortized discount	2.5	2.8
2014 5Y
Debt Instrument [Line Items]
Fair value of interest rate swap	1.4
Unamortized discount	0.7
2014 30Y
Debt Instrument [Line Items]
Unamortized discount	$ 1.6

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Consolidated Statement of Shareholders' Equity (Deficit) (USD $) In Millions	Total	Common Stock	Capital Surplus	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total Moody's Shareholders' Equity (Deficit)	Non-Controlling Interests
Beginning Balance at Dec. 31, 2011	$ (158.4)	$ 3.4	$ 394.5	$ 4,176.1	$ (4,635.5)		$ (169.0)	$ 10.6
Beginning Balance (in shares) at Dec. 31, 2011		342.9			(120.5)
Net income	696.1			690.0			690.0	6.1
Dividends	157.5			152.8			152.8	4.7
Stock-based compensation	64.6		64.6				64.6
Shares issued for stock-based compensation plans, net	116.6		(100.9)		217.5		116.6
Shares issued for stock-based compensation plans, net (in shares)					5.6
Net excess tax benefit upon settlement of stock-based compensation awards	10.3		10.3				10.3
Excess of consideration paid over carrying value of additional investment in KIS Pricing	3.4		3.4				3.4
Adjustment to redemption value of redeemable noncontrolling interest	3.4
Treasury shares repurchased, shares					4.8
Treasury shares repurchased	196.5				196.5		196.5
Currency translation adjustment	33.6					34.2	34.2	(0.6)
Amortization of actuarial losses and prior service costs included in net income	5.9					5.9	5.9
Amortization of actuarial losses and prior service costs included in net income	14.8					14.8	14.8
Net unrealized gain on cash flow hedges	0.1					0.1	0.1
Unrealized Gains On Available For Sale Securities	0
Ending Balance at Dec. 31, 2012	396.6	3.4	365.1	4,713.3	(4,614.5)	(82.1)	385.2	11.4
Ending Balance (in shares) at Dec. 31, 2012		342.9			(119.7)
Net income	810.2			804.5			804.5	5.7
Dividends	221.9			215.7			215.7	6.2
Stock-based compensation	67.2		67.2				67.2
Shares issued for stock-based compensation plans, net	136.0		(51.9)		187.9		136.0
Shares issued for stock-based compensation plans, net (in shares)					5.0
Net excess tax benefit upon settlement of stock-based compensation awards	33.3		33.3				33.3
Adjustment to redemption value of redeemable noncontrolling interest	7.9		(7.9)				(7.9)
Treasury shares repurchased, shares					14.2
Treasury shares repurchased	893.1				893.1		893.1
Currency translation adjustment	(13.8)					(13.8)	(13.8)
Amortization of actuarial losses and prior service costs included in net income	7.0					7.0	7.0
Amortization of actuarial losses and prior service costs included in net income	(29.9)					(29.9)	(29.9)
Net unrealized gain on cash flow hedges	4.4					4.4	4.4
Unrealized Gains On Available For Sale Securities	0
Ending Balance at Dec. 31, 2013	347.9	3.4	405.8	5,302.1	(5,319.7)	(54.6)	337.0	10.9
Ending Balance (in shares) at Dec. 31, 2013		342.9			(128.9)
Net income	996.6			988.7			988.7	7.9
Dividends	253.4			246.5			246.5	6.9
Stock-based compensation	80.6		80.6				80.6
Shares issued for stock-based compensation plans, net	98.0		(58.0)		156.0		98.0
Shares issued for stock-based compensation plans, net (in shares)					4.2
Net excess tax benefit upon settlement of stock-based compensation awards	54.7		54.7				54.7
Adjustment to redemption value of redeemable noncontrolling interest	99.4		(99.2)				(99.2)
Treasury shares repurchased, shares					13.8
Treasury shares repurchased	1,220.5				1,220.5		1,220.5
Currency translation adjustment	(148.7)					(148.7)	(148.7)
Amortization of actuarial losses and prior service costs included in net income	4.5					4.5	4.5
Amortization of actuarial losses and prior service costs included in net income	56.7					56.7	56.7
Net unrealized gain on cash flow hedges	19.4					19.4	19.4
Unrealized Gains On Available For Sale Securities	1.0					0.9	0.9
ICRA noncontrolling interest	218.8							218.8
Ending Balance at Dec. 31, 2014	$ 42.9	$ 3.4	$ 383.9	$ 6,044.3	$ (6,384.2)	$ (235.2)	$ (187.8)	$ 230.7
Ending Balance (in shares) at Dec. 31, 2014		342.9			(138.5)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net income	$ 1,006.0	$ 815.9	$ 699.7
Foreign currency translation adjustment-Pre Tax Amount	(155.3)	(15.8)	35.4
Foreign currency translation adjustment-Tax Amount	(2.2)	(0.6)	0.2
Foreign currency translation adjustments-Net of Tax	(153.1)	(15.2)	35.2
Cash Flow And Net Investment Hedges [Abstract]
Net unrealized gain (losses) on cash flow and net investment hedges- Pre Tax	32.3	6.3	(3.9)
Net unrealized gain (losses) on cash flow and net investment hedges-Tax Amount	(12.9)	(2.6)	1.6
Net unrealized losses on cash flow and net investment hedges	19.4	3.7	(2.3)
Reclassification of losses included in net income-Pre Tax	0	1.2	4.1
Reclassification of losses included in net income-Tax Amount	0	(0.5)	(1.7)
Reclassification of losses included in net income - Net of Tax	0	0.7	2.4
Pension and Other Retirement Benefits Net of Tax [Abstract]
Amortization of actuarial losses and prior service costs included in net income (pre-tax)	7.3	11.9	10.0
Amortization of actuarial losses and prior service costs included in net income (tax)	(2.8)	(4.9)	(4.1)
Amortization of actuarial losses and prior service costs included in net income	4.5	7.0	5.9
Net actuarial losses and prior service costs (pre-tax)	(93.8)	50.9	(26.0)
Net actuarial losses and prior service costs (tax)	37.1	(21.0)	11.2
Net actuarial losses and prior service costs	(56.7)	29.9	(14.8)
Total other comprehensive income (loss)-Pre Tax	(204.2)	55.9	19.6
Net current period other comprehensive income/(loss)	23.6	(28.4)	6.8
Total other comprehensive income (loss)-Net of Tax	(180.6)	27.5	26.4
Comprehensive income (loss)	825.4	843.4	726.1
Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest	17.3	11.4	10.7
Comprehensive income attributable to Moody's	808.1	832.0	715.4
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax	4.4	1.4	0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax	0	0	0
Total Reclassifications	4.4	1.4	0
Available for sale securities [Abstract]
Unrealized Gains On Available For Sale Securities Pre Tax	1.0	0	0
Unrealized Gains On Available For Sale Securities Tax	0	0	0
Unrealized Gains On Available For Sale Securities Net Of Tax	1.0	0	0
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax	(0.1)	0	0
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Tax	0	0	0
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Net Of Tax	$ (0.1)	$ 0	$ 0

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GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

NOTE 8 GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

The following table summarizes the activity in goodwill:

	Year Ended December 31,2014
	MIS						MA						Consolidated
	Gross goodwill		Accumulated Impairment charge		Net goodwill		Gross goodwill		Accumulated Impairment charge		Net goodwill		Gross goodwill		Accumulated Impairment charge		Net goodwill
Balance at beginning of year	$	11.4	$	-	$	11.4	$	666.0	$	(12.2)	$	653.8	$	677.4	$	(12.2)	$	665.2
Additions/adjustments		296.7		-		296.7		101.1		-		101.1		397.8		-		397.8
Foreign currency translation adjustments		(9.4)		-		(9.4)		(32.5)		-		(32.5)		(41.9)		-		(41.9)
														-		-
Ending balance	$	298.7	$	-	$	298.7	$	734.6	$	(12.2)	$	722.4	$	1,033.3	$	(12.2)	$	1,021.1
	Year Ended December 31,2013
	MIS						MA						Consolidated
	Gross goodwill		Accumulated Impairment charge		Net goodwill		Gross goodwill		Accumulated Impairment charge		Net goodwill		Gross goodwill		Accumulated Impairment charge		Net goodwill
Balance at beginning of year	$	11.5	$	-	$	11.5	$	637.8	$	(12.2)	$	625.6	$	649.3	$	(12.2)	$	637.1
Additions/adjustments		-		-		-		34.5		-		34.5		34.5		-		34.5
Foreign currency translation adjustments		(0.1)		-		(0.1)		(6.3)		-		(6.3)		(6.4)		-		(6.4)
Ending balance	$	11.4	$	-	$	11.4	$	666.0	$	(12.2)	$	653.8	$	677.4	$	(12.2)	$	665.2

The 2014 additions/adjustments for the MIS segment in the table above relate to the ICRA acquisition in the second quarter of 2014. The 2014 additions/adjustments for the MA segment relate to the acquisition WebEquity in the third quarter of 2014 and Lewtan in the fourth quarter of 2014 as well as adjustments for Amba which was acquired in the fourth quarter of 2013. The 2013 additions/adjustments for the MA segment relate to the acquisition of Amba.

The accumulated impairment charge in the table above reflects an impairment charge recognized in 2012 relating to the FSTC reporting unit within MA. This impairment charge reflected a contraction in spending for training and certification services for many individuals and global financial institutions in 2012 due to macroeconomic uncertainties at the time. The fair value of the FSTC reporting unit utilized in this impairment assessment was estimated using a discounted cash flow methodology and comparable public company and precedent transaction multiples.

Acquired intangible assets consisted of:

			December 31,
			2014		2013
Customer relationships			$	310.4	$	237.4
Accumulated amortization				(98.1)		(86.6)
	Net customer relationships			212.3		150.8
Trade secrets				30.6		31.1
Accumulated amortization				(20.9)		(18.5)
	Net trade secrets			9.7	-	12.6
Software				79.8		71.0
Accumulated amortization				(43.0)		(38.8)
	Net software			36.8	-	32.2
Trade names				76.5		31.3
Accumulated amortization				(13.3)		(11.7)
	Net trade names			63.2	-	19.6
Other				44.8		26.1
Accumulated amortization				(21.3)		(19.7)
	Net other			23.5	-	6.4
		Total	$	345.5	$	221.6

Other intangible assets primarily consist of databases, covenants not to compete and acquired ratings methodologies and models. Amortization expense relating to intangible assets is as follows:

	Year Ended December 31,
	2014		2013		2012
Amortization expense	$	28.4	$	28.0	$	30.1

Estimated future annual amortization expense for intangible assets subject to amortization is as follows:

Year Ended December 31,
2015	$33.5
2016	31.7
2017	28.1
2018	22.4
2019	19.5
Thereafter	210.3

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In conjunction with the assessment of goodwill impairment at July 31, 2012, the Company reviewed the recoverability of certain customer lists within its FSTC reporting unit. This review resulted in an impairment of approximately $1 million in the third quarter of 2012 which is recorded in depreciation and amortization expense in the consolidated statement of operations. The fair value of these customer lists was determined using a discounted cash flow analysis. The Company again reviewed the recoverability of these customer lists in the fourth quarter of 2012 in conjunction with the quantitative goodwill impairment test performed at December 31, 2012 for the FSTC reporting unit. Based on this assessment, there was no further impairment of the customer lists in the fourth quarter of 2012. For all intangible assets, there were no such events or changes during 2014 or 2013 that would indicate that the carrying amount of amortizable intangible assets in any of the Company’s reporting units may not be recoverable. Additionally, there were no events or circumstances during 2014 or 2013 that would indicate the need for an adjustment of the remaining useful lives of these amortizable intangible assets.

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Source of income Before Provision for Income Taxes (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items]
United States	$ 912.6	$ 836.1	$ 694.2
International	548.4	333.2	329.8
Income before provision for income taxes	$ 1,461.0	$ 1,169.3	$ 1,024.0

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Stock-Based Compensation Cost and Associated Tax Benefit (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Stock-based compensation expense	$ 80.4	$ 67.1	$ 64.5
Tax benefit	$ 27.5	$ 24.7	$ 23.3

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Summary of Changes in Fair Value of Plan's Level Three Assets (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items]
Beginning Balance	$ 15.6
Return on plan assets related to assets held as the end of the period	1.6
Purchases (sales), net	0.6
Transfers (out)	(17.8)
Ending Balance	$ 0

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Total Assets by Segment (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Total Assets	$ 4,669.0	$ 4,395.1

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Changes in AOCI (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Beginning Balance	$ (54.6)	$ (82.1)
Net unrealized gain (losses) on cash flow and net investment hedges-Net of Tax	19.4	3.7	(2.3)
Reclassification of losses included in net income - Net of Tax	0	0.7	2.4
Amortization of actuarial losses and prior service costs included in net income	4.5	7.0	5.9
Net actuarial losses and prior service costs	(56.7)	29.9	(14.8)
Foreign currency translation adjustments-Net of Tax	(153.1)	(15.2)	35.2
Foreign currency translation adjustments - reclassification of losses included in net income due to liquidation of a foreign subsidiary Net of Tax	4.4	1.4	0
Unrealized Gains On Available For Sale Securities	1.0	0	0
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Net Of Tax	(0.1)	0	0
Ending Balance	(235.2)	(54.6)	(82.1)
Gains Losses On Cash Flow and Net Investment Hedges [Member]
Ending Balance	20.9	1.5	(2.9)
Pension and Other Post Retirements benefit costs
Ending Balance	(105.4)	(53.2)	(90.1)
foreign currency
Ending Balance	(151.6)	(2.9)	10.9
available for sale [Domain]
Ending Balance	$ 0.9	$ 0	$ 0

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Financial Information by Segment (Detail) (USD $)	3 Months Ended									9 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Revenue	$ 877,500,000	$ 816,100,000	$ 873,500,000	$ 767,200,000	$ 779,200,000	$ 705,500,000	$ 756,000,000	$ 731,800,000			$ 3,334,300,000	$ 2,972,500,000	$ 2,730,300,000
Operating, SG&A											1,799,600,000	1,644,500,000	1,547,200,000
Adjusted Operating Income											1,534,700,000	1,328,000,000	1,183,100,000
Depreciation and amortization											95,600,000	93,400,000	93,500,000
Goodwill impairment charge									1,000,000	1,000,000			12,200,000
Operating income	344,700,000	349,700,000	411,700,000	333,000,000	311,900,000	291,500,000	350,800,000	280,400,000			1,439,100,000	1,234,600,000	1,077,400,000
MIS
Segment Reporting Information [Line Items]
Revenue											2,353,400,000	2,150,200,000	1,968,800,000
Operating, SG&A											1,076,200,000	1,034,000,000	976,300,000
Adjusted Operating Income											1,277,200,000	1,116,200,000	992,500,000
Depreciation and amortization											49,400,000	46,700,000	44,400,000
Goodwill impairment charge													0
Operating income											1,227,800,000	1,069,500,000	948,100,000
MA
Segment Reporting Information [Line Items]
Revenue											1,081,800,000	913,300,000	844,900,000
Operating, SG&A											824,300,000	701,500,000	654,300,000
Adjusted Operating Income											257,500,000	211,800,000	190,600,000
Depreciation and amortization											46,200,000	46,700,000	49,100,000
Goodwill impairment charge													12,200,000
Operating income											211,300,000	165,100,000	129,300,000
Eliminations
Segment Reporting Information [Line Items]
Revenue											(100,900,000)	(91,000,000)	(83,400,000)
Operating, SG&A											(100,900,000)	(91,000,000)	(83,400,000)
Adjusted Operating Income
Depreciation and amortization
Goodwill impairment charge													0
Operating income

XML

Document and Entity Information (USD $) In Billions, except Share data in Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Trading Symbol	MCO
Entity Registrant Name	MOODYS CORP /DE/
Entity Central Index Key	0001059556
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	213.7
Entity Public Float	$ 18.5

XML

Quarterly Financial Data (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Financial Data [Line Items]
Revenue	$ 877.5	$ 816.1	$ 873.5	$ 767.2	$ 779.2	$ 705.5	$ 756.0	$ 731.8	$ 3,334.3	$ 2,972.5	$ 2,730.3
Operating Income	344.7	349.7	411.7	333.0	311.9	291.5	350.8	280.4	1,439.1	1,234.6	1,077.4
Net income attributable to Moody's	$ 236.3	$ 215.2	$ 319.2	$ 218.0	$ 206.7	$ 183.9	$ 225.5	$ 188.4	$ 988.7	$ 804.5	$ 690.0
Basic	$ 1.14	$ 1.02	$ 1.51	$ 1.02	$ 0.96	$ 0.84	$ 1.01	$ 0.84	$ 4.69	$ 3.67	$ 3.09
Diluted	$ 1.12	$ 1	$ 1.48	$ 1	$ 0.94	$ 0.83	$ 1	$ 0.83	$ 4.61	$ 3.6	$ 3.05

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FAIR VALUE

12 Months Ended

Dec. 31, 2014

FAIR VALUE

NOTE 9FAIR VALUE

The table below presents information about items, which are carried at fair value on a recurring basis at December 31, 2014 and 2013:

		Fair Value Measurement as of December 31, 2014
Description		Balance		Level 1		Level 2		Level 3
Assets:
	Derivatives (a)	$	41.8	$	-	$	41.8	$	-
	Money market mutual funds		149.7		149.7		-		-
	Fixed maturity and open ended mutual funds (b)		48.0		48.0		-		-
	Total	$	239.5	$	197.7	$	41.8	$	-
Liabilities:
	Derivatives (a)	$	2.1	$	-	$	2.1	$	-
	Contingent consideration arising from acquisitions (c)		2.1		-		-		2.1
	Total	$	4.2	$	-	$	2.1	$	2.1
		Fair Value Measurement as of December 31, 2013
Description		Balance		Level 1		Level 2		Level 3
Assets:
	Derivatives (a)	$	20.5	$	-	$	20.5	$	-
	Money market mutual funds		212.3		212.3		-		-
	Total	$	232.8	$	212.3	$	20.5	$	-
Liabilities:
	Derivatives (a)	$	1.7	$	-	$	1.7	$	-
	Contingent consideration arising from acquisitions (c)		17.5		-		-		17.5
	Total	$	19.2	$	-	$	1.7	$	17.5
(a) Represents interest rate swaps and FX forwards on certain assets and liabilities as well as on certain non-U.S. dollar net investments in certain foreign subsidiaries more fully discussed in Note 5 to the financial statements
(b) Represents investments in fixed maturity mutual funds and open ended mutual funds held by ICRA. The remaining contractual maturities for the fixed maturity instruments range from two months to 23 months
(c) Represents contingent consideration liabilities pursuant to the agreements for certain acquisitions

The following table summarizes the changes in the fair value of the Company’s Level 3 liabilities:

	Changes in Contingent Consideration for Years Ended December 31,
	2014		2013		2012
Balance as of January 1	$	17.5	$	9.0	$	9.1
Contingent consideration assumed in acquisition of Amba		-		4.3		-
Contingent consideration payments		(16.5)		(2.5)		(0.5)
Losses included in earnings		1.3		6.9		0.1
Foreign currency translation adjustments		(0.2)		(0.2)		0.3
Balance as of December 31	$	2.1	$	17.5	$	9.0

The losses included in earnings in the table above are recorded within SG&A expenses in the Company’s consolidated statements of operations and relate to contingent consideration obligations related to the Copal Amba acquisition which were settled in 2014.

The $ 2.1 million of contingent consideration obligations as ofDecember 31,2014 is classified in other liabilities within the Company’s consolidated balance sheet.

The following are descriptions of the methodologies utilized by the Company for determining the fair value of its derivative contracts, fixed maturity and open-ended mutual funds, money market mutual funds and contingent consideration obligations:

Derivatives:

In determining the fair value of the derivative contracts in the table above, the Company utilizes industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using spot rates, forward points, currency volatilities, interest rates as well as the risk of non-performance of the Company and the counterparties with whom it has derivative contracts. The Companyhas strict counterparty credit guidelines and only enters into transactions with financial institutions that adhere to these guidelines. Accordingly, the risk of counterparty default is deemed to be minimal.

Fixed maturity and open ended mutual funds:

The fixed maturity mutual funds and open ended mutual funds primarily represent exchange traded funds in India held by ICRA and are classified as securities available-for-sale. Accordingly, any unrealized gains and losses are recognized through OCI until the instruments mature or are sold.

Money market mutual funds:

The money market mutual funds represent publicly traded funds with a stable $1 net asset value.

Contingent Consideration:

At December 31,2014, the Company has a contingent consideration obligation related to the acquisition of CSI which is carried at estimated fair value, and is based on certain financial and non-financial metrics set forth in the acquisition agreements. This obligation is measured using Level 3 inputs as defined in the ASC. The Company has recorded the obligation for this contingent consideration arrangement on the date of acquisition based on management’s best estimates of the achievement of the metrics and the value of the obligation is adjusted quarterly.

The contingent consideration obligation for CSI is based on the achievement of a certain contractual milestone by January 2016. The Company utilizes a discounted cash flow methodology to value this obligation. The future expected cash flow for this obligation is discounted using an interest rate available to borrowers with similar credit risk profiles to that of the Company. The most significant unobservable input involved in the measurement of this obligation is the probability that the milestone will be reached by January 2016. At December 31,2014, the Company expects that this milestone will be reached by the aforementioned date.

For certain of the contingent consideration obligations relating to the acquisition of Copal, a portion of the contingent cash payments were based on revenue and EBITDA growth for certain of the Copal entities. This growth was calculated by comparing revenue and EBITDA in the year immediately prior to the exercise of the put/call option to acquire the remaining 33% ownership interest of Copal Partners Limited, to revenue and EBITDA in Copal’s fiscal year ended March 31, 2011. Payments of $12.2 million under this arrangement were made in the fourth quarter of 2014 pursuant to the Company exercising its call option to acquire the remaining shares of Copal Amba. The Company had utilized discounted cash flow methodologies to value these obligationsprior to their settlement in 2014. The expected future cash flows for these obligations were discounted using a risk-free interest rate plus a credit spread based on the option adjusted spread of the Company’s publicly traded debt as of the valuation date plus sovereign and size risk premiums. The most significant unobservable input involved in the measurement of these obligations were the projected future financial results of the applicable CopalAmba entities. Other contingent cash payments were based on the achievement of revenue targets for Copal’s fiscal year ended March 31, 2013 and a $2.5 million payment was made in 2013.

For the contingent consideration obligations relating to the acquisition of Amba, the payment was based on the acquired entity achieving a revenue target for its fiscal year ended March 31, 2014 which was met resulting in a $4.3 million payment in 2014.

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Accumulated Benefit Obligation in Excess of Plan Assets (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Schedule Of Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets [Line Items]
Aggregate projected benefit obligation	$ 461.8	$ 347.1
Aggregate accumulated benefit obligation	396.3	298.5
Aggregate fair value of plan assets	$ 248.4	$ 204.6

XML

Summary of Pension Plan Assets by Category Based on Hierarchy of Fair Value Measurements (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	$ 0	$ 15.6
Major Types of Debt and Equity Securities [Domain]
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	248.5	204.6
Percent of total assets	100.00%	100.00%
Major Types of Debt and Equity Securities [Domain] | Cash and Cash Equivalents
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	13.2	0.4
Percent of total assets	5.00%	0.00%
Major Types of Debt and Equity Securities [Domain] | Emerging Markets Equity Fund
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	14.0	14.6
Percent of total assets	6.00%	7.00%
Equity Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	122.7	132.6
Percent of total assets	50.00%	65.00%
Equity Securities | U.S. Large-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance		44.5
Percent of total assets		22.00%
Equity Securities | U.S. Small And Mid-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	16.5	15.3
Percent of total assets	7.00%	7.00%
Equity Securities | International
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance		58.2
Percent of total assets		29.00%
Equity Securities | Global Large-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	92.2
Percent of total assets	37.00%
Fixed Income Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	94.8	56.0
Percent of total assets	38.00%	27.00%
Fixed Income Securities | Long-term government/treasury bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance		13.7
Percent of total assets		7.00%
Fixed Income Securities | Long-term investment grade corporate bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance		15.4
Percent of total assets		7.00%
Fixed Income Securities | U.S. Treasury Inflation-Protected Securities (TIPs)
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	10.7	8.7
Percent of total assets	4.00%	4.00%
Fixed Income Securities | Emerging Markets Bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	9.1	5.8
Percent of total assets	4.00%	3.00%
Fixed Income Securities | High Yield Bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	6.7	6.1
Percent of total assets	3.00%	3.00%
Fixed Income Securities | Common/Collective Trust Funds - Convertible Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	7.5	6.3
Percent of total assets	3.00%	3.00%
Fixed Income Securities | Private Real Estate Fund
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	17.8	15.6
Percent of total assets	7.00%	8.00%
Fixed Income Securities | Intermediate term investment grade U.S. government [Member]
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	60.8
Percent of total assets	24.00%
Level 1 | Major Types of Debt and Equity Securities [Domain]
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	23.1	14.6
Level 1 | Major Types of Debt and Equity Securities [Domain] | Cash and Cash Equivalents
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0	0
Level 1 | Major Types of Debt and Equity Securities [Domain] | Emerging Markets Equity Fund
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	14.0	14.6
Level 1 | Equity Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	14.0	14.6
Level 1 | Equity Securities | U.S. Large-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance
Level 1 | Equity Securities | U.S. Small And Mid-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 1 | Equity Securities | International
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance
Level 1 | Equity Securities | Global Large-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 1 | Fixed Income Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	9.1
Level 1 | Fixed Income Securities | Long-term government/treasury bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance
Level 1 | Fixed Income Securities | Long-term investment grade corporate bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance
Level 1 | Fixed Income Securities | U.S. Treasury Inflation-Protected Securities (TIPs)
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 1 | Fixed Income Securities | Emerging Markets Bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	9.1
Level 1 | Fixed Income Securities | High Yield Bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 1 | Fixed Income Securities | Common/Collective Trust Funds - Convertible Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0	0
Level 1 | Fixed Income Securities | Private Real Estate Fund
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0	0
Level 1 | Fixed Income Securities | Intermediate term investment grade U.S. government [Member]
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 2 | Major Types of Debt and Equity Securities [Domain]
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	207.6	174.4
Level 2 | Major Types of Debt and Equity Securities [Domain] | Cash and Cash Equivalents
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	13.2	0.4
Level 2 | Major Types of Debt and Equity Securities [Domain] | Emerging Markets Equity Fund
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0	0
Level 2 | Equity Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	108.7	118.0
Level 2 | Equity Securities | U.S. Large-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance		44.5
Level 2 | Equity Securities | U.S. Small And Mid-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	16.5	15.3
Level 2 | Equity Securities | International
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance		58.2
Level 2 | Equity Securities | Global Large-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	92.2
Level 2 | Fixed Income Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	85.7	56.0
Level 2 | Fixed Income Securities | Long-term government/treasury bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance		13.7
Level 2 | Fixed Income Securities | Long-term investment grade corporate bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance		15.4
Level 2 | Fixed Income Securities | U.S. Treasury Inflation-Protected Securities (TIPs)
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	10.7	8.7
Level 2 | Fixed Income Securities | Emerging Markets Bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0	5.8
Level 2 | Fixed Income Securities | High Yield Bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	6.7	6.1
Level 2 | Fixed Income Securities | Common/Collective Trust Funds - Convertible Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	7.5	6.3
Level 2 | Fixed Income Securities | Private Real Estate Fund
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	17.8	0
Level 2 | Fixed Income Securities | Intermediate term investment grade U.S. government [Member]
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	60.8
Level 3 | Major Types of Debt and Equity Securities [Domain]
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0	15.6
Level 3 | Major Types of Debt and Equity Securities [Domain] | Cash and Cash Equivalents
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0	0
Level 3 | Major Types of Debt and Equity Securities [Domain] | Emerging Markets Equity Fund
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0	0
Level 3 | Equity Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 3 | Equity Securities | U.S. Large-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance
Level 3 | Equity Securities | U.S. Small And Mid-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 3 | Equity Securities | International
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance
Level 3 | Equity Securities | Global Large-Cap
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 3 | Fixed Income Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 3 | Fixed Income Securities | Long-term government/treasury bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance
Level 3 | Fixed Income Securities | Long-term investment grade corporate bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance
Level 3 | Fixed Income Securities | U.S. Treasury Inflation-Protected Securities (TIPs)
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 3 | Fixed Income Securities | Emerging Markets Bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 3 | Fixed Income Securities | High Yield Bonds
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0
Level 3 | Fixed Income Securities | Common/Collective Trust Funds - Convertible Securities
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0	0
Level 3 | Fixed Income Securities | Private Real Estate Fund
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	0	15.6
Level 3 | Fixed Income Securities | Intermediate term investment grade U.S. government [Member]
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
Balance	$ 0

XML

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 1,219,500,000	$ 1,919,500,000
Short-term investments	458,100,000	186,800,000
Accounts receivable, net of allowances of $29.1 in 2012 and $28.0 in 2011	792,400,000	694,200,000
Deferred tax assets, net	43,900,000	53,900,000
Other current assets	172,500,000	114,400,000
Total current assets	2,686,400,000	2,968,800,000
Property and equipment, net	302,300,000	278,700,000
Goodwill	1,021,100,000	665,200,000
Intangible assets, net	345,500,000	221,600,000
Deferred tax assets, net	167,800,000	148,700,000
Other assets	145,900,000	112,100,000
Total assets	4,669,000,000	4,395,100,000
Current liabilities:
Accounts payable and accrued liabilities	557,600,000	538,900,000
Deferred tax liabilities, net	17,500,000	4,000,000
Deferred revenue	624,600,000	598,400,000
Total current liabilities	1,199,700,000	1,141,300,000
Non-current portion of deferred revenue	132,200,000	109,200,000
Long-term debt	2,547,300,000	2,101,800,000
Deferred tax liabilities, net	95,700,000	59,100,000
Unrecognized tax benefits	220,300,000	195,600,000
Other liabilities	430,900,000	360,200,000
Total liabilities	4,626,100,000	3,967,200,000
Contingencies (Note 17)
Redeemable noncontrolling interest		80,000,000
Shareholders' equity (deficit):
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding		0
Capital surplus	383,900,000	405,800,000
Retained earnings	6,044,300,000	5,302,100,000
Treasury stock, at cost; 119,650,254 and 120,462,232 shares of common stock at December 31, 2012 and December 31, 2011, respectively	(6,384,200,000)	(5,319,700,000)
Accumulated other comprehensive loss	(235,200,000)	(54,600,000)
Total Moody's shareholders' equity (deficit)	(187,800,000)	337,000,000
Noncontrolling interests	230,700,000	10,900,000
Total shareholders' equity (deficit)	42,900,000	347,900,000
Total liabilities, redeemable noncontrolling interest and shareholders' equity (deficit)	4,669,000,000	4,395,100,000
Series common stock
Shareholders' equity (deficit):
Common stock		0
Common Stock
Shareholders' equity (deficit):
Common stock	$ 3,400,000	$ 3,400,000

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RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING

12 Months Ended

Dec. 31, 2014

RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING

NOTE 3 RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING

Below is a reconciliation of basic to diluted shares outstanding:

		2014	2013	2012
Basic		210.7	219.4	223.2
Dilutive effect of shares issuable under stock-based compensation plans		4.0	4.1	3.4
Diluted		214.7	223.5	226.6
	Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above	0.7	4.0	7.5

The calculation of diluted EPS requires certain assumptions regarding the use of both cash proceeds and assumed proceeds that would be received upon the exercise of stock options and vesting of restricted stock outstanding as of December 31,2014, 2013 and 2012. These assumed proceeds include Excess Tax Benefits and any unrecognized compensation on the awards.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recently Issued Accounting Pronouncements

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Consolidation

The consolidated financial statements include those of Moody’s Corporation and its majority- and wholly-owned subsidiaries. The effects of all intercompany transactions have been eliminated. Investments in companies for which the Company has significant influence over operating and financial policies but not a controlling interest are accounted for on an equity basis whereby the Company records its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net and any dividends received reduce the carrying amount of the investment.  The Company applies the guidelines set forth in Topic 810 of the ASC in assessing its interests in variable interest entities to decide whether to consolidate that entity. The Company has reviewed the potential variable interest entities and determined that there are no consolidation requirements under Topic 810 of the ASC. The Company consolidates its ICRA subsidiaries on a three month lag.

Cash and Cash Equivalents

Cash equivalents principally consist of investments in money market mutual funds and money market deposit accounts as well as high-grade commercial paper and certificates of deposit with maturities of three months or less when purchased.

Short-term Investments

Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next twelve months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned.

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives. Expenditures for maintenance and repairs that do not extend the economic useful life of the related assets are charged to expense as incurred.

Research and Development Costs

All research and development costs are expensed as incurred. These costs primarily reflect the development of credit processing software and quantitative credit risk assessment products sold by the MA segment.

Research and development costs were $37.9 million, $22.8 million, and $16.1 million for the years ended December 31,2014, 2013 and 2012, respectively, and are included in operating expenses within the Company’s consolidated statements of operations. These costs generally consist of professional services provided by third parties and compensation costs of employees.

Costs for internally developed computer software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. These costs primarily relate to the development or enhancement of products in the ERS business and generally consist of professional services provided by third parties and compensation costs of employees that develop the software. Judgment is required in determining when technological feasibility of a product is established and the Company believes that technological feasibility for its software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released to customers. Accordingly, costs for internally developed computer software that will be sold, leased or otherwise marketed that were eligible for capitalization under Topic 985 of the ASC as well as the related amortization expense related to such costs were immaterial for the years ended December 31,2014, 2013 and 2012.

Computer Software Developed or Obtained for Internal Use

The Company capitalizes costs related to software developed or obtained for internal use. These assets, included in property and equipment in the consolidated balance sheets, relate to the Company’s accounting, product delivery and other systems. Such costs generally consist of direct costs for third-party license fees, professional services provided by third parties and employee compensation, in each case incurred either during the application development stage or in connection with upgrades and enhancements that increase functionality. Such costs are depreciated over their estimated useful lives on a straight-line basis. Costs incurred during the preliminary project stage of development as well as maintenance costs are expensed as incurred.

Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets

Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment or one level below an operating segment, annually as of July 31 or more frequently if impairment indicators arise in accordance with ASC Topic 350.

The Company evaluates the recoverability of goodwill using a three-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made that, based on the qualitative factors, an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company must perform a third step of the impairment test to determine the implied fair value of the reporting unit’s goodwill. The implied fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than its carrying value, the difference is recognized as an impairment charge. For the reporting units where the Company is consistently able to conclude that an impairment does not exist using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years. Goodwill is assigned to a reporting unit at the date when an acquisition is integrated into one of the established reporting units, and is based on which reporting unit is expected to benefit from the synergies of the acquisition.

For purposes of assessing the recoverability of goodwill, the Company has six reporting units at December 31, 2014: two within the Company’s ratings business (one for the newly acquired ICRA business and one that encompasses all of Moody’s other ratings operations) and four reporting units within MA: RD&A, ERS, Financial Services Training and Certifications and Copal Amba. The RD&A reporting unit encompasses the distribution of investor-oriented research and data developed by MIS as part of its ratings process, in-depth research on major debt issuers, industry studies, economic research and commentary on topical events and credit analytic tools. The ERS reporting unit consists of credit risk management and compliance software that is sold on a license or subscription basis as well as related advisory services for implementation and maintenance. The FSTC reporting unit consists of the portion of the MA business that offers both credit training as well as other professional development training and certification services. The Copal Amba reporting unit consists of outsourced research and analytical services.

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Rent Expense

The Company records rent expense on a straight-line basis over the life of the lease. In cases where there is a free rent period or future fixed rent escalations the Company will record a deferred rent liability. Additionally, the receipt of any lease incentives will be recorded as a deferred rent liability which will be amortized over the lease term as a reduction of rent expense.

Stock-Based Compensation

The Company records compensation expense for all share-based payment award transactions granted to employees based on the fair value of the equity instrument at the time of grant. This includes shares issued under stock option and restricted stock plans. The Company has also established a pool of additional paid-in capital related to the tax effects of employee share-based compensation, which is available to absorb any recognized tax shortfalls.

Derivative Instruments and Hedging Activities

Based on the Company’s risk management policy, from time to time the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values. The changes in the value of derivatives that qualify as fair value hedges are recorded with a corresponding adjustment to the carrying value of the item being hedged. Changes in the derivative’s fair value that qualify as cash flow hedges are recorded to other comprehensive income or loss, to the extent the hedge is effective, and such amounts are reclassified from accumulated other comprehensive income or loss to earnings in the same period or periods during which the hedged transaction affects income. Changes in the derivative’s fair value that qualify as net investment hedges are recorded to other comprehensive income or loss, to the extent the hedge is effective. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur.

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or the services have been provided and accepted by the customer when applicable, fees are determinable and the collection of resulting receivables is considered probable.

Pursuant to ASC Topic 605, when a sales arrangement contains multiple deliverables, the Company allocates revenue to each deliverable based on its relative selling price which is determined based on its vendor specific objective evidence if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available.

 The Company’s products and services will generally qualify as separate units of accounting under ASC Topic 605. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value to the customers and if the arrangement includes a customer refund or return right relative to the delivered item and the delivery and performance of the undelivered item is considered probable and substantially in the Company’s control. In instances where the aforementioned criteria are not met, the deliverable is combined with the undelivered items and revenue recognition is determined as one single unit.

The Company determines whether its selling price in a multi-element transaction meets the VSOE criteria by using the price charged for a deliverable when sold separately. In instances where the Company is not able to establish VSOE for all deliverables in a multiple element arrangement, which may be due to the Company infrequently selling each element separately, not selling products within a reasonably narrow price range, or only having a limited sales history, the Company attempts to establish TPE for deliverables. The Company determines whether TPE exists by evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. However, due to the difficulty in obtaining third party pricing, possible differences in its market strategy from that of its peers and the potential that products and services offered by the Company may contain a significant level of differentiation and/or customization such that the comparable pricing of products with similar functionality cannot be obtained, the Company generally is unable to reliably determine TPE. Based on the selling price hierarchy established by ASC Topic 605, when the Company is unable to establish selling price using VSOE or TPE, the Company will establish an ESP. ESP is the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company establishes its best estimate of ESP considering internal factors relevant to is pricing practices such as costs and margin objectives, standalone sales prices of similar products, percentage of the fee charged for a primary product or service relative to a related product or service, and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trend. The Company reviews its determination of VSOE, TPE and ESP on an annual basis or more frequently as needed.

In the MIS segment, revenue attributed to initial ratings of issued securities is recognized when the rating is issued. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of commercial mortgage-backed securities, structured credit, international residential mortgage-backed and asset-backed securities, issuers can elect to pay the monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities, which was approximately 28 years on a weighted average basis at December 31,2014. At December 31,2014, 2013 and 2012, deferred revenue related to these securities was approximately $107 million,$97 million, and $82 million.

Multiple element revenue arrangements in the MIS segment are generally comprised of an initial rating and the related monitoring service. In instances where monitoring fees are not charged for the first year monitoring effort, fees are allocated to the initial rating and monitoring services based on the relative selling price of each service to the total arrangement fees. The Company generally uses ESP in determining the selling price for its initial ratings as the Company rarely sells initial ratings separately without providing related monitoring services and thus is unable to establish VSOE or TPE for initial ratings.

MIS estimates revenue for ratings of commercial paper for which, in addition to a fixed annual monitoring fee, issuers are billed quarterly based on amounts outstanding. Revenue is accrued each quarter based on estimated amounts outstanding and is billed when actual data is available. The estimate is determined based on the issuers’ most recent reported quarterly data. At December 31,2014, 2013 and 2012, accounts receivable included approximately $22 million, $21 million, and $22million, respectively, related to accrued commercial paper revenue. Historically, MIS has not had material differences between the estimated revenue and the actual billings. Furthermore, for certain annual monitoring services, fees are not invoiced until the end of the annual monitoring period and revenue is accrued ratably over the monitoring period.

In the MA segment, products and services offered by the Company include software licenses and related maintenance, subscriptions, and professional services. Revenue from subscription based products, such as research and data subscriptions and certain software-based credit risk management subscription products, is recognized ratably over the related subscription period, which is principally one year. Revenue from sale of perpetual licenses of credit processing software is generally recognized at the time the product master or first copy is delivered or transferred to and accepted by the customer. If uncertainty exists regarding customer acceptance of the product or service, revenue is not recognized until acceptance occurs. Software maintenance revenue is recognized ratably over the annual maintenance period. Revenue from professional services rendered is generally recognized as the services are performed. A large portion of annual research and data subscriptions and annual software maintenance are invoiced in the months of November, December and January.

Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where a multiple element arrangement includes software and non-software deliverables, revenue is allocated to the non-software deliverables and to the software deliverables, as a group, using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Revenue is recognized for each element based upon the conditions for revenue recognition noted above.

 If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is allocated to each software deliverable using VSOE. In the instances where the Company is not able to determine VSOE for all of the deliverables of an arrangement, the Company allocates the revenue to the undelivered elements equal to its VSOE and the residual revenue to the delivered elements. If the Company is unable to determine VSOE for an undelivered element, the Company defers all revenue allocated to the software deliverables until the Company has delivered all of the elements or when VSOE has been determined for the undelivered elements.In cases where software implementation services are considered essential and VSOE of fair value exists for post-contract customer support (“PCS”), once the delivery criteria has been met on the standard software, license and service revenue is recognized on a percentage-of-completion basis as implementation services are performed, while PCS is recognized over the coverage period.  If VSOE of fair value does not exist for PCS, once the delivery criteria has been met on the standard software, service revenue is recognized on a zero profit margin basis until essential services are complete, at which point total remaining arrangement revenue is then spread ratably over the remaining PCS coverage period.

Accounts Receivable Allowances

Moody’s records an allowance for estimated future adjustments to customer billings as a reduction of revenue, based on historical experience and current conditions. Such amounts are reflected as additions to the accounts receivable allowance. Additionally, estimates of uncollectible accounts are recorded as bad debt expense and are reflected as additions to the accounts receivable allowance. Actual billing adjustments and uncollectible account write-offs are recorded against the allowance. Moody’s evaluates its accounts receivable allowance by reviewing and assessing historical collection and adjustment experience and the current status of customer accounts. Moody’s also considers the economic environment of the customers, both from an industry and geographic perspective, in evaluating the need for allowances. Based on its analysis, Moody’s adjusts its allowance as considered appropriate in the circumstances.

Contingencies

Moody’s is involved in legal and tax proceedings, governmental investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate.

For claims, litigation and proceedings and governmental investigations and inquires not related to income taxes, where it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated, the Company records liabilities in the consolidated financial statements and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In other instances, because of uncertainties related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if significant. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. In view of the inherent difficulty of predicting the outcome of litigation, regulatory, governmental investigations and inquiries, enforcement and similar matters , particularly where the claimants seek large or indeterminate damages or where the parties assert novel legal theories or the matters involve a large number of parties, the Company cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also cannot predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition. However, in light of the large or indeterminate damages sought in some of them, the absence of similar court rulings on the theories of law asserted and uncertainties regarding apportionment of any potential damages, an estimate of the range of possible losses cannot be made at this time.

The Company’s wholly-owned insurance subsidiary insures the Company against certainrisks including but not limited to deductibles for worker’s compensation, employment practices litigation and employee medical claims and terrorism,for which the claims are not material to the Company. In addition, for claim years 2008 and 2009, the insurance subsidiary insured the Company for defense costs related to professional liability claims. For matters insured by the Company’s insurance subsidiary, Moody’s records liabilities based on the estimated total claims expected to be paid and total projected costs to defend a claim through its anticipated conclusion. The Company determines liabilities based on an assessment of management’s best estimate of claims to be paid and legal defense costs as well as actuarially determined estimates. The Cheyne SIV and Rhinebridge SIV matters more fully discussed in Note 18 are both cases from the 2008/2009 claims period, and accordingly defense costs forthese matters are covered by the Company’s insurance subsidiary. Defense costs for matters not self-insured by the Company’s wholly-owned insurance subsidiary are expensed as services are provided.

For income tax matters, the Company employs the prescribed methodology of Topic 740 of the ASC which requires a company to first determine whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

Operating Expenses

Operating expenses include costs associated with the development and production of the Company’s products and services and their delivery to customers. These expenses principally include employee compensation and benefits and travel costs that are incurred in connection with these activities. Operating expenses are charged to income as incurred, except for certain costs related to software implementation services which are deferred until related revenue is recognized.  Additionally, certain costs incurred to develop internal use software are capitalized and depreciated over their estimated useful life.

Selling, General and Administrative Expenses

SG&A expenses include such items as compensation and benefits for corporate officers and staff and compensation and other expenses related to sales of products. They also include items such as office rent, business insurance, professional fees and gains and losses from sales and disposals of assets. SG&A expenses are charged to income as incurred, except for certain expenses incurred to develop internal use software are capitalized and depreciated over their estimated useful life.

Redeemable Noncontrolling Interest

The Company records its redeemable noncontrolling interest at fair value on the date of the related business combination transaction. The redeemable noncontrolling interest representsnoncontrolling shareholders’ interest in entities which are controlled but not wholly-owned by Moody’s and for which Moody’s obligation to redeem the minority shareholders’ interest is governed by a put/call relationship. Subsequent to the initial measurement, the redeemable noncontrolling interest is recorded at the greater of its redemption value or its carrying value at the end of each reporting period. If the redeemable noncontrolling interest is carried at its redemption value, the difference between the redemption value and the carrying value would be adjusted through capital surplus at the end of each reporting period. The Company also performs a quarterly assessment to determine if the aforementioned redemption value exceeds the fair value of the redeemable noncontrolling interest. If the redemption value of the redeemable noncontrolling interest were to exceed its fair value, the excess would reduce the net income attributable to Moody’s shareholders. The Company settled its redeemable noncontrolling interest in the fourth quarter of 2014 by exercising its call option to acquire the remaining share of Copal Amba that it did not previously own.

Foreign Currency Translation

For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated into U.S. dollars using end of year exchange rates, and revenue and expenses are translated using average exchange rates for the year. For these foreign operations, currency translation adjustments are accumulated in a separate component of shareholders’ equity.

Comprehensive Income

Comprehensive income represents the change in net assets of a business enterprise during a period due to transactions and other events and circumstances from non-owner sources including foreign currency translation impacts, net actuarial losses and net prior service costs related to pension and other retirement plans, gains and losses on derivative instruments and unrealized gains and losses on securities designated as ‘available-for-sale’ under Topic 320 of the ASC.

Income Taxes

The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes and deferred income taxes reflect the effect of temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes.

The Company classifies interest related to unrecognized tax benefits as a component of interest expense in its consolidated statements of operations. Penalties are recognized in other non-operating expenses. For UTPs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

For certain of its non-U.S. subsidiaries, the Company has deemed the undistributed earnings relating to these subsidiaries to be indefinitely reinvested within its foreign operations. Accordingly, the Company has not provided deferred income taxes on these indefinitely reinvested earnings. It is not practicable to determine the amount of deferred taxes that might be required to be provided if such earnings were distributed in the future due to complexities in the tax laws and in the hypothetical calculations that would have to be made.

Fair Value of Financial Instruments

The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, all of which are short-term in nature and, accordingly, approximate fair value. Additionally, the Company invests in certain short-term investments consisting primarily of certificates of deposit that are carried at cost, which approximates fair value due to their short-term maturities.

The Company also has certain investments in closed-ended and open-ended mutual funds in India which are designated as ‘available for sale’ under Topic 320 of the ASC. Accordingly, unrealized gains and losses on these investments are recorded to other comprehensive income and are reclassified out of accumulated other comprehensive income to the statement of operations when the investment matures or is sold using a specific identification method.

Also, the Company uses derivative instruments, as further described in Note 5, to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value on the Company’s consolidated balance sheets.

The Company also is subject to contingent consideration obligations related to certain of its acquisitions as more fully discussed in Note 9. These obligations are carried at their estimated fair value within the Company’s consolidated balance sheets.

Fair value is defined by the ASC as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset.

The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows:

Level 1 : quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement;

Level 2 : inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;

Level 3 : unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk principally consist of cash and cash equivalents, short-term investments, trade receivables and derivatives.

The Company manages its credit risk exposure by allocating its cash equivalents among various money market mutual funds, money market deposit accounts, certificates of deposits and high- grade commercial paper. Short-term investments primarily consist of certificates of deposit as of December 31,2014 and 2013. The Company manages its credit risk exposure on cash equivalents and short-term investments by limiting the amount it can invest with any single entity. No customer accounted for 10% or more of accounts receivable at December 31,2014 or 2013.

Earnings per Share of Common Stock

Basic shares outstanding is calculated based on the weighted average number of shares of common stock outstanding during the reporting period. Diluted shares outstanding is calculated giving effect to all potentially dilutive common shares, assuming that such shares were outstanding during the reporting period.

Pension and Other Retirement Benefits

Moody’s maintains various noncontributory DBPPs as well as other contributory and noncontributory retirement plans. The expense and assets/liabilities that the Company reports for its pension and other retirement benefits are dependent on many assumptions concerning the outcome of future events and circumstances. These assumptions represent the Company’s best estimates and may vary by plan. The differences between the assumptions for the expected long-term rate of return on plan assets and actual experience is spread over a five-year period to the market related value of plan assets which is used in determining the expected return on assets component of annual pension expense. All other actuarial gains and losses are generally deferred and amortized over the estimated average future working life of active plan participants.

The Company recognizes as an asset or liability in its consolidated balance sheet the funded status of its defined benefit retirement plans, measured on a plan-by-plan basis. Changes in the funded status due to actuarial gains/losses are recorded as part of other comprehensive income during the period the changes occur.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Estimates are used for, but not limited to, revenue recognition, accounts receivable allowances, income taxes, contingencies, valuation of long-lived and intangible assets, goodwill, pension and other retirement benefits, stock-based compensation, and depreciable lives for property and equipment and computer software.

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INDEBTEDNESS

12 Months Ended

Dec. 31, 2014

INDEBTEDNESS

NOTE 15 INDEBTEDNESS

The following table summarizes total indebtedness:

		December 31,
		2014		2013
2012 Facility		$	-	$	-
Notes payable:
	Series 2005-1 Notes due 2015, including fair value of interest rate swap of $10.3 million at 2013		-		310.3
	Series 2007-1 Notes due in 2017		300.0		300.0
	2010 Senior Notes, due 2020, net of unamortized discount of $2.0 million and $2.2 million in 2014 and 2013, respectively, and includes a $5.8 million fair value adjustment on an interest rate hedge in 2014		503.8		497.8
	2012 Senior Notes, due 2022, net of unamortized discount of $3.1 million in 2014 and $3.5 million in 2013		496.9		496.5
	2013 Senior Notes, due 2024, net of unamortized discount of $2.5 million in 2014 and $2.8 million in 2013		497.5		497.2
	2014 Senior Notes (5-Year), due 2019, net of unamortized discount of $0.7 million in 2014 and includes a $1.4 million fair value adjustment on an interest rate hedge in 2014		450.7		-
	2014 Senior Notes (30-Year), due 2044, net of unamortized discount of $1.6 million in 2014		298.4		-
Total long-term debt			2,547.3		2,101.8

2012 Facility

On April 18, 2012, the Company and certain of its subsidiaries entered into a $1 billion five-year senior, unsecured revolving credit facility in an aggregate principal amount of $1 billion that expires in April 2017. The 2012 Facility replaced the $1 billion 2007 Facility that was scheduled to expire in September 2012. The proceeds from the 2012 Facility will be used for general corporate purposes, including, without limitation, share repurchases and acquisition financings. Interest on borrowings under the facility is payable at rates that are based on LIBOR plus a premium that can range from 77.5 basis points to 120 basis points per annum of the outstanding amount, depending on the Company’s Debt/EBITDA ratio. The Company also pays quarterly facility fees, regardless of borrowing activity under the 2012 Facility. These quarterly feescan range from 10 basis points of the facility amount to 17.5 basis points, depending on the Company’s Debt/ EBITDA Ratio.

The 2012 Facility contains covenants that, among other things, restrict the ability of the Company and its subsidiaries, without the approval of the lenders, to engage in mergers, consolidations, asset sales, transactions with affiliates and sale-leaseback transactions or to incur liens, as set forth in the facility agreement. The 2012 Facility also contains a financial covenant that requires the Company to maintain a Debt to EBITDA Ratio of not more than 4 to 1 at the end of any fiscal quarter. Upon the occurrence of certain financial or economic events, significant corporate events or certain other events constituting an event of default under the 2012 Facility, all loans outstanding under the facility (including accrued interest and fees payable thereunder) may be declared immediately due and payable and all commitments under the facility may be terminated.

Notes Payable

On September 30, 2005, the Company issued and sold through a private placement transaction, $300.0 million aggregate principal amount of its Series 2005-1 Senior Unsecured Notes due 2015 pursuant to the 2005 Agreement. The Series 2005-1 Notes had a ten-year term and bore interest at an annual rate of 4.98%, payable semi-annually on March 30 and September 30. Proceeds from the sale of the Series 2005-1 Notes were used to refinance $300.0 million aggregate principal amount of the Company’s outstanding 7.61% senior notes which matured on September 30, 2005.On August 7, 2014, the Company prepaid the Series 2005-1 Notes using proceeds from the issuance of the 2014 Senior Notes (30-year) and the 2014 Senior Notes (5-year).

On September 7, 2007, the Company issued and sold through a private placement transaction, $300.0 million aggregate principal amount of its 6.06% Series 2007-1 Senior Unsecured Notes due 2017 pursuant to the 2007 Agreement. The Series 2007-1 Notes have a ten-year term and bear interest at an annual rate of 6.06%, payable semi-annually on March 7 and September 7. The Company may prepay the Series 2007-1 Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make Whole Amount. The 2007 Agreement contains covenants that limit the ability of the Company, and certain of its subsidiaries to, among other things: enter into transactions with affiliates, dispose of assets, incur or create liens, enter into any sale-leaseback transactions, or merge with any other corporation or convey, transfer or lease substantially all of its assets. The Company must also not permit its Debt/EBITDA ratio to exceed 4.0 to 1.0 at the end of any fiscal quarter.

On August 19, 2010, the Company issued $500 million aggregate principal amount of senior unsecured notes in a public offering. The 2010 Senior Notes bear interest at a fixed rate of 5.50% and mature on September 1, 2020. Interest on the 2010 Senior Notes will be due semi-annually on September 1 and March 1 of each year, commencing March 1, 2011. The Company may prepay the 2010 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount.Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2010 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2010 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2010 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2010 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2010 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2010 Indenture, the notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

On November 4, 2011, in connection with the acquisition of Copal, a subsidiary of the Company issued a $14.2 million non-interest bearing note to the sellers which represented a portion of the consideration transferred to acquire the Copal entities. If a seller subsequently transfers to the Company all of its shares, the Company must repay the seller its proportion of the principal on the later of (i) the fourth anniversary date of the note or (ii) within a time frame set forth in the acquisition agreement relating to the resolution of certain income tax uncertainties pertaining to the transaction. The Company has the right to offset payment of the note against certain indemnification assets associated with UTPs related to the acquisition. Accordingly, the Company has offset the liability for this note against the indemnification asset, thus no balance for this note is carried on the Company’s consolidated balance sheet at December 31, 2014 and 2013. In the event that the Company would not be required to settle amounts related to the UTPs, the Company would be required to pay the sellers the principal in accordance with the note agreement. The Company may prepay the note in accordance with certain terms set forth in the acquisition agreement.

On August 20, 2012, the Company issued $500 million aggregate principal amount of unsecured notes in a public offering. The 2012 Senior Notes bear interest at a fixed rate of 4.50% and mature on September 1, 2022. Interest on the 2012 Senior Notes will be due semi-annually on September 1 and March 1 of each year, commencing March 1, 2013. The Company may prepay the 2012 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2012 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2012 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2012 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2012 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2012 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2012 Indenture, the 2012 Senior notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

On August 12, 2013, the Company issued $500 million aggregate principal amount of senior unsecured notes in a public offering. The 2013 Senior Notes bear interest at a fixed rate of 4.875% and mature on February 15, 2024. Interest on the 2013 Senior Notes will be due semi-annually on February 15 and August 15 of each year, commencing February 15, 2014. The Company may prepay the 2013 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Notwithstanding the immediately preceding sentence, the Company may redeem the 2013 Senior Notes, in whole or in part, at any time or from time to time on or after November 15, 2023 (three months prior to their maturity), at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date. Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2013 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2013 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2013 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2013 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2013 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2013 Indenture, the 2013 Senior Notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

On July 16, 2014, the Company issued $300 million aggregate principal amount of senior unsecured notes in a public offering. The 2014 Senior Notes (30-year) bear interest at a fixed rate of 5.25% and mature on July 15, 2044. Interest on the 2014 Senior Notes (30-year) will be due semi-annually on January 15 and July 15 of each year, commencing January 15, 2015. The Company may prepay the 2014 Senior Notes (30-year), in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2014 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2014 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2014 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2014 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2014 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2014 Indenture, the 2014 Senior Notes (30-year) may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

On July 16, 2014, the Company issued $450 million aggregate principal amount of senior unsecured notes in a public offering. The 2014 Senior Notes (5-year) bear interest at a fixed rate of 2.75% and mature July 15, 2019. Interest on the 2014 Senior Notes (5-year) will be due semi-annually on January 15 and July 15 of each year, commencing January 15, 2015. The Company may prepay the 2014 Senior Notes (5-year), in whole or in part, at any time at a price prior to June 15, 2019, equal to100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Notwithstanding the immediately preceding sentence, the Company may redeem the 2014 Senior Notes (5-year), in whole or in part, at any time or from time to time on or after June 15, 2019 (one month prior to their maturity), at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date. Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2014 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2014 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2014 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2014 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2014 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2014 Indenture, the 2014 Senior Notes (5-year) may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

On August 7, 2014, the Company prepaid the Series 2005-1 Notes using proceeds from the issuance of the 2014 Senior Notes (30-year) and the 2014 Senior Notes (5-year). The proceeds from the July 16, 2014 issuance will also be used for general corporate purposes.

The principal payments due on the Company’s long-term borrowings for each of the next five years are presented in the table below:

Year Ending December 31,	Series 2007-1 Notes		2010 Senior Notes		2012 Senior Notes		2013 Senior Notes		2014 Senior Notes (5-year)		2014 Senior Notes (30-year)		Total
2015	$	-	$	-	$	-	$	-	$	-	$	-	$	-
2016		-		-		-		-		-		-		-
2017		300.0		-		-		-		-		-		300.0
2018		-		-		-		-		-		-		-
2019		-		-		-		-		450.0		-		450.0
Thereafter		-		500.0		500.0		500.0		-		300.0		1,800.0
Total	$	300.0	$	500.0	$	500.0	$	500.0	$	450.0	$	300.0	$	2,550.0

The Company entered into interest rate swaps on the 2010 Senior Notes and the 2014 Senior Notes (5-year) which are more fully discussed in Note 5.

At December 31,2014, the Company was in compliance with all covenants contained within all of the debt agreements. In addition to the covenants described above, the 2014 Indenture, the 2012 Facility, the 2007 Agreement, the 2013 Indenture, the 2012 Indenture and the 2010 Indenture contain cross default provisions. These provisions state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of December 31, 2014, there are no such cross defaults.

INTEREST EXPENSE, NET

The following table summarizes the components of interest as presented in the consolidated statements of operations:

	Year Ended December 31,
	2014		2013		2012
Income	$	6.7	$	5.5	$	5.2
Expense on borrowings (a)		(118.4)		(92.3)		(73.8)
Expense on UTPs and other tax related liabilities (b)		(5.8)		(8.6)		0.4
Legacy Tax (c)		0.7		3.6		4.4
Total	$	(116.8)	$	(91.8)	$	(63.8)
Interest paid (d)	$	113.7	$	81.9	$	94.4
(a) Includes approximately $11 million in 2014 in net costs related to the prepayment of the Series 2005-1 Notes.(b) Includes $2.0 million in 2014 relating to a reversal of an interest accrual relating to the favorable resolution of an international tax matter.(c) Represents a reduction of accrued interest related to the favorable resolution of Legacy Tax Matters, further discussed in Note 18 to the consolidated financial statements.(d) Interest paid includes payments of interest relating to the settlement of income tax audits in the first quarter of 2012 as well as net settlements on interest rate swaps more fully discussed in Note 5.

The Company’s long-term debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for the Series 2005-1 Notes, the 2010 Senior Notes, and the 2014 Senior Notes (5-Year) which are recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge thefair value of the note. The fair value and carrying value of the Company’s long-term debt as of December 31, 2014 and December 31, 2013 are as follows:

	December 31, 2014				December 31, 2013
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Series 2005-1 Notes	$	-	$	-	$	310.3	$	319.2
Series 2007-1 Notes		300.0		334.6		300.0		334.7
2010 Senior Notes		503.8		564.4		497.8		536.6
2012 Senior Notes		496.9		537.1		496.5		497.0
2013 Senior Notes		497.5		548.4		497.2		501.2
2014 Senior Notes (5-Year)		450.7		454.3		-		-
2014 Senior Notes (30-Year)		298.4		333.9		-		-
Total	$	2,547.3	$	2,772.7	$	2,101.8	$	2,188.7

The fair value of the Company’s long-term debt is estimated using discounted cash flows based on prevailing interest rates available to the Company for borrowings with similar maturities.

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DETAIL OF CERTAIN BALANCE SHEET INFORMATION

12 Months Ended

Dec. 31, 2014

DETAIL OF CERTAIN BALANCE SHEET INFORMATION

NOTE 10 DETAIL OF CERTAIN BALANCE SHEET INFORMATION

The following tables contain additional detail related to certain balance sheet captions:

		December 31,
		2014		2013
Other current assets:
	Prepaid taxes	$	65.4	$	40.0
	Prepaid expenses		59.9		48.1
	Other		47.2		26.3
	Total other current assets	$	172.5	$	114.4
		December 31,
		2014		2013
Other assets:
	Investments in joint ventures	$	21.6	$	37.5
	Deposits for real-estate leases		11.3		10.3
	Indemnification assets related to acquisitions		23.5		27.0
	Fixed maturity and open-ended mutual funds		48.0		-
	Other		41.5		37.3
	Total other assets	$	145.9	$	112.1
		December 31,
		2014		2013
Accounts payable and accrued liabilities:
	Salaries and benefits	$	86.5	$	77.1
	Incentive compensation		155.2		135.9
	Profit sharing contribution		9.3		-
	Customer credits, advanced payments and advanced billings		17.0		21.7
	Self-insurance reserves		21.5		27.6
	Dividends		75.0		65.5
	Professional service fees		47.0		32.9
	Interest accrued on debt		45.0		36.3
	Accounts payable		19.4		16.4
	Income taxes (see Note 14)		16.1		47.5
	Pension and other retirement employee benefits (see Note 12)		5.1		7.0
	Other		60.5		71.0
	Total accounts payable and accrued liabilities	$	557.6	$	538.9
		December 31,
		2014		2013
Other liabilities:
	Pension and other retirement employee benefits (see Note 12)	$	244.8	$	164.0
	Deferred rent-non-current portion		104.2		106.3
	Interest accrued on UTPs		20.8		18.0
	Legacy and other tax matters		8.6		15.4
	Other		52.5		56.5
	Total other liabilities	$	430.9	$	360.2

		Year Ended December 31,
			2014		2013		2012
Balance January 1,		$	27.6	$	55.8	$	27.1
	Accruals (reversals), net		5.8		(0.9)		38.1
	Payments		(11.9)		(27.3)		(9.4)
Balance December 31,		$	21.5	$	27.6	$	55.8

Redeemable Noncontrolling Interest:

		Year Ended December 31,
			2014		2013		2012
		Redeemable Noncontrolling Interest
Balance January 1,		$	80.0	$	72.3	$	60.5
	Adjustment due to right of offset for UTPs (1)		-		-		6.8
	Net earnings		9.3		5.8		3.6
	Dividends		(4.9)		(6.0)		(3.6)
	Redemption of noncontrolling interest		(183.8)		-		-
	FX translation		-		-		1.6
	Adjustment to redemption value (2)		99.4		7.9		3.4
Balance December 31,		$	-	$	80.0	$	72.3
	(1) Related to an adjustment for the right of offset pursuant to the Copal acquisition agreement whereby the amount due to the sellers under the put/call arrangement was reduced by the amount of UTPs that the Company may be required to pay(2) The adjustment to the redemption value in the year ended December 31, 2014 reflects the aforementioned revisions to the revenue and EBITDA multiples pursuant to the amendment of the put/call agreement which occurred contemporaneously with the acquisition of Amba coupled with growth in the Copal Amba reporting unit. These adjustments are recorded with a corresponding reduction to capital surplus.

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Summary of Pre-Tax Amounts Recognized in Other Comprehensive Income (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Pension And Other Retirement Benefits Recognized In Accumulated Other Comprehensive Income Loss [Line Items]
Net actuarial losses and prior service costs (pre-tax)	$ (93,800,000)	$ 50,900,000	$ (26,000,000)
Amortization of actuarial losses and prior service costs included in net income (pre-tax)	7,300,000	11,900,000	10,000,000
Pension Plans
Schedule Of Pension And Other Retirement Benefits Recognized In Accumulated Other Comprehensive Income Loss [Line Items]
Net actuarial losses and prior service costs (pre-tax)	(6,600,000)	(10,800,000)
Amortization of prior service costs	(700,000)	(600,000)
Accelerated recognition of actuarial loss due to settlement	0
Amortization of actuarial losses and prior service costs included in net income (pre-tax)	(87,500,000)	47,300,000
Total recognized in OCI - pre-tax	(80,200,000)	58,700,000
Other Retirement Plans
Schedule Of Pension And Other Retirement Benefits Recognized In Accumulated Other Comprehensive Income Loss [Line Items]
Net actuarial losses and prior service costs (pre-tax)	0	(300,000)
Amortization of prior service costs	0	0
Accelerated recognition of actuarial loss due to settlement
Amortization of actuarial losses and prior service costs included in net income (pre-tax)	(3,700,000)	3,300,000
Total recognized in OCI - pre-tax	$ (3,700,000)	$ 3,600,000

XML

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2014

PROPERTY AND EQUIPMENT, NET

NOTE 6 PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of:

		December 31,
		2014		2013
Office and computer equipment (3 - 10 year estimated useful life)		$	152.5	$	129.7
Office furniture and fixtures (3 - 10 year estimated useful life)			43.8		40.6
Internal-use computer software (3 - 10 year estimated useful life)			336.8		284.9
Leasehold improvements and building (3 - 20 year estimated useful life)			220.7		199.2
	Total property and equipment, at cost		753.8		654.4
Less: accumulated depreciation and amortization			(451.5)		(375.7)
Total property and equipment, net		$	302.3	$	278.7

Depreciation and amortization expense related to the above assets was 67.2 million, $65.4million, and $63.4million for the years ended December 31,2014, 2013 and 2012, respectively.

XML

Property and Equipment, Net (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Property Plant And Equipment [Line Items]
Office and computer equipment (3 - 20 year estimated useful life)	$ 152.5	$ 129.7
Office furniture and fixtures (5 - 10 year estimated useful life)	43.8	40.6
Internal-use computer software (3 - 5 year estimated useful life)	336.8	284.9
Leasehold improvements (3 - 20 year estimated useful life)	220.7	199.2
Total property and equipment, at cost	753.8	654.4
Property and equipment, accumulated depreciation	451.5	375.7
Total property and equipment, net	$ 302.3	$ 278.7

XML

Principal Payments Due on Long-Term Borrowings (Detail) (USD $)	Dec. 31, 2014
Debt Instrument [Line Items]
2015
2016
2017	300,000,000
2018
2019	450,000,000
Thereafter	1,800,000,000
Series 2007-1 Notes
Debt Instrument [Line Items]
2015
2016
2017	300,000,000
2018
2019
Thereafter	0
2010 Senior Notes
Debt Instrument [Line Items]
2015
2016
2017
2018
2019
Thereafter	500,000,000
2012 Senior Notes
Debt Instrument [Line Items]
2015
2016
2017
2018
2019
Thereafter	500,000,000
2013 Senior Notes
Debt Instrument [Line Items]
2015
2016
2017
2018
2019
Thereafter	500,000,000
2014 5Y
Debt Instrument [Line Items]
2015	0
2016	0
2017	0
2018	0
2019	450,000,000
Thereafter	0
2014 30Y
Debt Instrument [Line Items]
2015	0
2016	0
2017	0
2018	0
2019	0
Thereafter	$ 300,000,000

XML

CASH EQUIVALENT AND INVESTMENTS

12 Months Ended

Dec. 31, 2014

Investment [Text Block]

	As of December 31, 2014
							Balance sheet location
	Cost		Gross Unrealized Gains		Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	149.7	$	-	$	149.7	$	149.7	$	-	$	-
Certificates of deposit and money market deposit accounts (1)	$	842.5	$	-	$	842.5	$	380.1	$	458.1	$	4.3
Fixed maturity and open ended mutual funds (2)	$	47.1	$	0.9	$	48.0	$	-	$	-	$	48.0
	As of December 31, 2013
							Balance sheet location
	Cost		Gross Unrealized Gains		Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	212.3	$	-	$	212.3	$	212.3	$	-	$	-
Certificates of deposit and money market deposit accounts (1)	$	911.8	$	-	$	911.8	$	725.0	$	186.8	$	-
(1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one month to ten months at December 31, 2014 and one month to nine months at December 31, 2013. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.
(2) Consists of investments in fixed maturity mutual funds and open-ended mutual funds held by ICRA. The remaining contractual maturities for the fixed maturity instruments range from two months to 23 months at December 31, 2014.

The money market mutual funds as well as the fixed maturity and open ended mutual funds in the table above are deemed to be‘available for sale’ under ASC Topic 320 and the fair value of these instruments is determined using Level 1 inputs which are more fully described in Note 2.

The total proceeds received in the year ended December 31, 2014 for maturities of fixed maturity mutual funds was $10.7 million. The gross realized gains on these maturities were immaterial.

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

12 Months Ended

Dec. 31, 2014

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 5 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes.

Interest Rate Swaps

In the fourth quarter of 2010, the Company entered into interest rate swaps with a total notional amount of $300million to convert the fixed interest rate on the Series 2005-1 Notes to a floating interest rate based on the 3-month LIBOR. The purpose of this hedge was to mitigate the risk associated with changes in the fair value of the Series 2005-1 Notes, thus the Company designated these swaps as fair value hedges. The fair value of the swaps was adjusted quarterly with a corresponding adjustment to the carrying value of the Series 2005-1 Notes. The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps were recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations. In August of 2014, the Company terminated the swaps on the Series 2005-1 Notes concurrent with the early retirement of those notes as further described in Note 15. The termination of these swaps resulted in a gain of approximately $4 million in 2014 which is recorded in interest income (expense), net in the Company’s consolidated statement of operations.

In the second quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on the 2010 Senior Notes to a floating interest rate based on the 3-month LIBOR. In the third quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on the remaining balance of the 2010 Senior Notes to a floating interest rate based on the 3-month LIBOR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the 2010 Senior Notes, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the 2010 Senior Notes. The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations.

In the third quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250million to convert the fixed interest rate on a portion of the 2014 Senior Notes (5-year) to a floating interest rate based on the 3-month LIBOR. The purpose of this hedge was to mitigate the risk associated with changes in the fair value of a portion of the 2014 Senior Notes (5-year), thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the 2014 Senior Notes (5-year). The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations.

Foreign Exchange Forwards

The Company also enters into foreign exchange forwards to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than the subsidiary’s functional currency. These forward contracts are not designated as hedging instruments under the applicable sections of Topic 815 of the ASC. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating income (expense), net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through March 2015.

The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards:

	December 31,		December 31,
	2014		2013
Notional amount of Currency Pair:
Contracts to purchase USD with euros	$	38.5	$	14.2
Contracts to sell USD for euros	$	51.1	$	53.2
Contracts to purchase USD with GBP	$	0.2	$	-
Contracts to purchase USD with other foreign currencies	$	1.2	$	-
Contracts to purchase euros with other foreign currencies	€	34.0	€	13.1
Contracts to purchase euros with GBP	€	25.0	€	22.1
Contracts to sell euros for GBP	€	38.2	€	-

Net Investment Hedges

The Company enters into foreign currency forward contracts to hedge the exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against adverse changes in foreign exchange rates. These forward contracts are designated as hedging instruments under the applicable sections of Topic 815 of the ASC. Hedge effectiveness is assessed based on the overall changes in the fair value of the forward contracts on a pre-tax basis. For hedges that meet the effectiveness requirements, any change in fair value for the hedge is recorded in OCI. Any change in the fair value of these hedges that is the result of ineffectiveness would be recognized immediately in other non-operating (expense) income in the Company’s consolidated statements of operations. These outstanding contracts expire in March 2015 for contracts to sell euros for USD and in November 2015 for contracts to sell Japanese yen for USD.

The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forward contracts that are designated as net investment hedges:

	December 31,		December 31,
	2014		2013
Notional amount of Currency Pair:
Contracts to sell euros for USD	€	50.0	€	50.0
Contracts to sell Japanese yen for USD	¥	19,400	¥	19,700

The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instruments:

				Fair Value of Derivative Instruments
					Balance Sheet Location		December 31, 2014		December 31, 2013
Assets:
Derivatives designated as accounting hedges:
		Interest rate swaps			Other assets	$	17.4	$	10.3
		FX forwards on net investment in certain foreign subsidiaries			Other current assets		18.8		9.3
	Total derivatives designated as accounting hedges						36.2		19.6
Derivatives not designated as accounting hedges:
		FX forwards on certain assets and liabilities			Other current assets		5.6		0.9
Total						$	41.8	$	20.5
Liabilities:
Derivatives designated as accounting hedges:
		FX forwards on net investment in certain foreign subsidiaries			Accounts payable and accrued liabilities	$	-	$	1.0
	Total derivatives designated as accounting hedges						-		1.0
Derivatives not designated as accounting hedges:
			FX forwards on certain assets and liabilities		Accounts payable and accrued liabilities		2.1		0.7
Total						$	2.1	$	1.7

The following table summarizes the net gain (loss) on the Company’s foreign exchange forwards which are not designated as hedging instruments as well as the gain (loss) on the interest rate swaps designated as fair value hedges:

		Amount of Gain (Loss) Recognized in consolidated statement of operations
		Year Ended December 31,
Derivatives designated as accounting hedges	Location on Consolidated Statements of Operations		2014		2013		2012
Interest rate swaps	Interest income (expense), net	$	11.7	$	4.2	$	3.6
Derivatives not designated as accounting hedges
Foreign exchange forwards	Other non-operating (expense) income	$	(2.0)	$	2.1	$	0.9

The following table provides information on annual gains (losses) on the Company’s net investment hedges:

Derivatives in Net Investment Hedging Relationships	Amount of Gain/(Loss), net of tax, Recognized in AOCI on Derivative (Effective Portion)
	Year Ended December 31,
	2014		2013		2012
FX forwards	$	19.4	$	3.7	$	(2.2)
Total	$	19.4	$	3.7	$	(2.2)

All gains and losses on derivatives designated as net investment hedges are recognized through OCI.

There were no gains or losses reclassified from AOCI to the statement of operations or any hedge ineffectiveness in the years ended December 31, 2014, 2013 and 2012.

The cumulative amount of hedge gain(losses) recorded in AOCI relating to derivative instruments is as follows:

	Gains (Losses), net of tax
	December 31, 2014		December 31, 2013
FX forwards on net investment hedges	$	20.9	$	1.5

XML

Share Repurchase Programs (detail) (USD $) In Millions, unless otherwise specified	0 Months Ended			12 Months Ended
	Dec. 17, 2014	Feb. 12, 2014	Feb. 13, 2013	Dec. 31, 2014
Schedule Of Share Repurchase Programs [Line Items]
Stock Repurchase Program Number Of Shares Authorized To Be Repurchased	$ 1,000.0	$ 1,000.0	$ 1,000.0
February 12, 2013 [Member]
Schedule Of Share Repurchase Programs [Line Items]
Stock Repurchase Program Remaining Authorized Repurchase Amount				0
February 11, 2014 [Member]
Schedule Of Share Repurchase Programs [Line Items]
Stock Repurchase Program Remaining Authorized Repurchase Amount				563.5
December 16, 2014 [Member]
Schedule Of Share Repurchase Programs [Line Items]
Stock Repurchase Program Remaining Authorized Repurchase Amount				$ 1,000.0

XML

ACQUISITIONS

12 Months Ended

Dec. 31, 2014

ACQUISITIONS

NOTE 7 ACQUISITIONS

All of the acquisitions described below were accounted for using the acquisition method of accounting whereby assets acquired and liabilities assumed were recognized at their acquisition date fair value.    Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded to goodwill. For all of the acquisitions described below, the Company has not presented proforma combined results for the acquisitions because the impact on previously reported statements of operations would not have been material. Furthermore, for all acquisitions described below, the amount of revenue and expenses in the year of acquisition from the acquisition date through the end of the year was not material.These acquisitions are discussed below in more detail.

Lewtan Technologies

On October 27, 2014, a subsidiary of the Company acquired 100% of Lewtan Technologies, a leading provider of analytical tools and data for the global structured finance market. The acquisition of Lewtan will bolster MA’s Structured Analytics and Valuations (SAV) business within its RD&A LOB, which provides an extensive data and analytics library for securitized assets. The aggregate purchase price was not material and the near term impact to the Company’s operations and cash flows is not expected to be material. Lewtan will operate in the RD&A LOB of MA and goodwill related to this acquisition was allocated to the RD&A reporting unit.

WebEquity Solutions, LLC

On July 17, 2014, a subsidiary of the Company acquired 100% of WebEquity Solutions, LLC, a leading provider of cloud-based loan origination solutions for financial institutions. The cash payment to the sellers of $130.5million was funded using Moody’s U.S. cash. This acquisition will enhance MA’s risk management product portfolio.

The Company incurred approximately $2million of costs directly related to this acquisition in 2014, which are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of the acquisition:

Current assets				$	3.0
Property and equipment, net					2.3
Intangible assets:
	Client relationships (18 year weighted average life)	$	42.8
	Software (15 year weighted average life)		11.5
	Trade name (4 year weighted average life)		0.5
	Total intangible assets (17 year weighted average life)				54.8
Goodwill					77.6
Liabilities assumed					(7.2)
Net assets acquired				$	130.5

Current assets include acquired cash of $0.6 million. Additionally, current assets includes gross accounts receivable of $0.7 million, of which an immaterial amount is not expected to be collectible. The acquired goodwill, which has been assigned to the MA segment, will be deductible for tax.

As of the date of the acquisition, WebEquity is part of the ERS reporting unit.

ICRA Limited

On June 26, 2014, a subsidiary of the Company acquired 2,154,722 additional shares of ICRA Limited, a publicly traded company in India, pursuant to a conditional open tender offer which was initiated in February 2014. ICRA is a leading provider of credit ratings and research in India and will extend MIS’s reach in the growing domestic debt market in India as well as other emerging markets in the region. The acquisition of the additional shares increased Moody’s ownership stake in ICRA from 28.5% to 50.06%, resulting in a controlling interest in ICRA. Accordingly, the Company consolidates ICRA’s financial statements on a three month lag which resulted in only one quarter of ICRA’s operating results included in the Company’s statement of operations in 2014.

Prior to the acquisition of the additional shares, Moody’s accounted for its investment in ICRA on an equity basis whereby the Company recorded its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net. The acquisition of the additional shares has resulted in the Company consolidating ICRA into its financial statements. As a result of this consolidation and in accordance with ASC 805, the carrying value of the Company’s equity investment in ICRA was remeasured to fair value as of the acquisition date resulting in a pre-tax gain of $102.8 million ($78.5 million after-tax) in 2014. The fair value of the Company’s equity investment was based on ICRA’s quoted market price on the date of acquisition.

The Company incurred approximately $2 million of costs directly related to the acquisition of ICRA during 2014 which are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

The table below details the total consideration relating to the ICRA step-acquisition:

Cash paid	$	86.0
Fair value of equity interest in ICRA prior to obtaining a controlling interest		124.9
Total consideration	$	210.9
The cash paid in the table above was funded by using Moody's non-U.S. cash on hand.

Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition:

Current assets				$	25.4
Property and equipment, net					15.1
Intangible assets:
	Trade name (36 year weighted average life)	$	46.8
	Client relationships (19 year weighted average life)		33.8
	Other (17 year weighted average life)*		18.3
	Total intangible assets (26 year weighted average life)				98.9
Goodwill					296.7
Other assets					56.3
Liabilities					(62.7)
Fair value of non-controlling interest assumed					(218.8)
Net assets acquired				$	210.9
* Primarily consists of acquired technical know-how and ratings methodologies

Current assets include acquired cash of approximately $5 million. Additionally, current assets includes gross accounts receivable of approximately $14million, of which an immaterial amount is not expected to be collectible. Goodwill, which has been assigned to the MIS segment, is not deductible for tax.

The fair value of the non-controlling interest was determined based on the quoted market price per share of ICRA on the date that the Company acquired the controlling stake.

ICRA will operate as its own reporting unit for purposes of the Company’s annual goodwill impairment assessment.

AmbaInvestment Services

On December 10, 2013, Copal Partners Limited, a majority-owned subsidiary of the Company, acquired 100% of Amba Investment Services, a provider of investment research and quantitative analytics for global financial institutions. Amba currently operates within the PS LOB of MA and will bolster the research and analytical capabilities offered by MA through Copal, a majority of which was acquired in December 2011.

The table below details the total consideration transferred to the sellers of Amba:

Cash paid	$	67.3
Contingent consideration liability assumed		4.3
Total fair value of consideration transferred	$	71.6

The cash payment to the sellers was funded by using Moody’s non-U.S. cash on hand.

The purchase agreement contained a provision for a contingent cash payment to the sellers valued at $4.3 million at the acquisition date which was dependent on Amba achieving certain revenue targets for the period from the acquisition date through March 31, 2014. The target was met and a $4.3 million payment was made to the sellers in the third quarter of 2014.

The Company incurred approximately $1 million of costs directly related to the acquisition of Amba during the year ended December 31, 2013. These costs, which primarily consist of consulting and legal fees, are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

Shown below is the purchase price allocation, which summarizes the fair value of the assets acquired and the liabilities assumed, at the date of acquisition:

Current assets				$	23.7
Property and equipment, net					0.4
Intangible assets:
	Trade name (7 year weighted average life)	$	3.3
	Client relationships (12 year weighted average life)		26.7
	Other (3 year weighted average life)		1.6
	Total intangible assets (11 year weighted average life)				31.6
Goodwill					29.2
Indemnification asset					10.4
Other assets					2.0
Liabilities assumed					(25.7)
Net assets acquired				$	71.6

Current assets include acquired cash of approximately $16 million. Additionally, current assets includes gross accounts receivable of approximately $6 million, of which an immaterial amount is not expected to be collectible. The acquired goodwill, which has been assigned to the MA segment, will not be deductible for tax.

In connection with the acquisition, the Company assumed liabilities relating to certain UTPs. These UTPs are included in the liabilities assumed in the table above. The sellers have contractually indemnified the Company against any potential payments that may have to be made regarding these UTPs. Accordingly, the Company carries an indemnification asset on its consolidated balance sheet at December 31, 2014.

As of the date of the acquisition, Amba was integrated with Copal to form the Copal Amba reporting unit.

XML

Purchase Price Allocation (Detail) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 10, 2013	Jun. 26, 2014	Jul. 17, 2014
Business Acquisition [Line Items]
Goodwill	$ 1,021,100,000	$ 665,200,000
Fair value of non-controlling interest assumed	218,800,000
Amba
Business Acquisition [Line Items]
Current assets			23,700,000
Property and equipment, net			400,000
Total intangible assets			31,600,000
Goodwill			29,200,000
Indemnification asset			10,400,000
Other assets			2,000,000
Liabilities assumed			(25,700,000)
Net assets acquired			71,600,000
Amba | Trade names
Business Acquisition [Line Items]
Total intangible assets			3,300,000
Amba | Client relationships
Business Acquisition [Line Items]
Total intangible assets			26,700,000
Amba | Other intangibles
Business Acquisition [Line Items]
Total intangible assets			1,600,000
ICRA [Member]
Business Acquisition [Line Items]
Current assets				25,400,000
Property and equipment, net				15,100,000
Total intangible assets				98,900,000
Goodwill				296,700,000
Other assets				56,300,000
Liabilities assumed				(62,700,000)
Net assets acquired				210,900,000
Fair value of non-controlling interest assumed				218,800,000
ICRA [Member] | Trade names
Business Acquisition [Line Items]
Total intangible assets				46,800,000
ICRA [Member] | Client relationships
Business Acquisition [Line Items]
Total intangible assets				33,800,000
ICRA [Member] | Other intangibles
Business Acquisition [Line Items]
Total intangible assets				18,300,000
Web Equity Solutions [Member]
Business Acquisition [Line Items]
Current assets					3,000,000
Property and equipment, net					2,300,000
Total intangible assets					54,800,000
Goodwill					77,600,000
Liabilities assumed					(7,200,000)
Net assets acquired					130,500,000
Web Equity Solutions [Member] | Trade names
Business Acquisition [Line Items]
Total intangible assets					500,000
Web Equity Solutions [Member] | Client relationships
Business Acquisition [Line Items]
Total intangible assets					42,800,000
Web Equity Solutions [Member] | Software
Business Acquisition [Line Items]
Total intangible assets					$ 11,500,000

XML

Revenue by Line of Business (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Revenue	$ 877.5	$ 816.1	$ 873.5	$ 767.2	$ 779.2	$ 705.5	$ 756.0	$ 731.8	$ 3,334.3	$ 2,972.5	$ 2,730.3
MIS
Segment Reporting Information [Line Items]
Revenue									2,353.4	2,150.2	1,968.8
MIS | Corporate finance (CFG)
Segment Reporting Information [Line Items]
Revenue									1,109.3	996.8	857.6
MIS | Structured Finance (SFG)
Segment Reporting Information [Line Items]
Revenue									426.5	382.5	381.0
MIS | Financial institutions (FIG)
Segment Reporting Information [Line Items]
Revenue									354.7	338.8	325.5
MIS | Public, Project And Infrastructure Finance (PPIF)
Segment Reporting Information [Line Items]
Revenue									357.3	341.3	322.7
MIS | External Revenues [Member]
Segment Reporting Information [Line Items]
Revenue									2,265.8	2,071.6	1,897.3
MIS | MIS Other [Member]
Segment Reporting Information [Line Items]
Revenue									18.0	12.2	10.5
MIS | Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Revenue									87.6	78.6	71.5
MA
Segment Reporting Information [Line Items]
Revenue									1,081.8	913.3	844.9
MA | Research, Data And Analytics (RD&A)
Segment Reporting Information [Line Items]
Revenue									571.8	519.8	482.7
MA | Enterprise Risk Solutions (ERS)
Segment Reporting Information [Line Items]
Revenue									328.5	262.5	242.6
MA | Professional Services (PS)
Segment Reporting Information [Line Items]
Revenue									168.2	118.6	107.7
MA | External Revenues [Member]
Segment Reporting Information [Line Items]
Revenue									1,068.5	900.9	833.0
MA | Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Revenue									13.3	12.4	11.9
Eliminations
Segment Reporting Information [Line Items]
Revenue									$ (100.9)	$ (91.0)	$ (83.4)

XML

Weighted-Average Assumptions Used to Determine Benefit Obligations (Detail)	Dec. 31, 2014	Dec. 31, 2013
Pension Plans
Schedule Of Benefit Obligations Weighted Average Assumptions [Line Items]
Discount rate	3.78%	4.71%
Rate of compensation increase	3.76%	4.00%
Other Retirement Plans
Schedule Of Benefit Obligations Weighted Average Assumptions [Line Items]
Discount rate	3.65%	4.45%
Rate of compensation increase	0.00%	0.00%

XML

Total Consideration Transferred to Sellers (Detail) (USD $) In Millions, unless otherwise specified	0 Months Ended
	Dec. 11, 2013	Jun. 26, 2014	Jul. 17, 2014
Amba
Business Acquisition [Line Items]
Cash paid	$ 67.3
Contingent consideration arising from acquisitions, Liabilities	(4.3)
Total fair value of consideration transferred	71.6
ICRA [Member]
Business Acquisition [Line Items]
Cash paid		86.0
Business Combination Fair Value Of Equity Interest		124.9
Total fair value of consideration transferred		210.9
Web Equity Solutions [Member]
Business Acquisition [Line Items]
Cash paid			$ 130.5

XML

Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income Before Provision for Income Taxes (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012
Reconciliation Of Statutory Federal Tax Rate [Line Items]
Payments for tax audit settlements	$ 92

XML

Acquisitions - Additional Information (Detail) (USD $)	12 Months Ended			0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 11, 2013	Jun. 26, 2014	Jul. 17, 2014	Dec. 10, 2013	Oct. 27, 2014
Business Acquisition [Line Items]
Remaining ownership interest	33.00%
Contingent consideration arising from acquisitions, liabilities	$ 2,100,000	$ 17,500,000
ICRA Gain	102,800,000	0	0
Amba
Business Acquisition [Line Items]
Acquired cash				16,000,000
Amount related to transaction cost	1,000,000
Additional direct equity investment							10000.00%
Acquired receivables gross contractual amount	6,000,000
Business Acquisition Cost Of Acquired Entity Cash Paid				67,300,000
ICRA [Member]
Business Acquisition [Line Items]
Acquired cash					5,000,000
Amount related to transaction cost					2,000,000
Acquired receivables gross contractual amount					14,000,000
Ownership stake					5006.00%
Business Acquisition Cost Of Acquired Entity Cash Paid					86,000,000
Additional Offer Shares Acquired of ICRA Limited					2,154,722
ICRA [Member] | After Tax Member [Member]
Business Acquisition [Line Items]
ICRA Gain					78,500,000
Web Equity Solutions [Member]
Business Acquisition [Line Items]
Acquired cash						600,000
Amount related to transaction cost						2,000,000
Additional direct equity investment						10000.00%
Acquired receivables gross contractual amount						700,000
Business Acquisition Cost Of Acquired Entity Cash Paid						$ 130,500,000
Lewtan [Member]
Business Acquisition [Line Items]
Additional direct equity investment								10000.00%

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Stock-Based Compensation Plans - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Stock Option Exercises
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense	$ 7.4
Weighted average period to recognize expense	1 year 4 months 24 days
Tax benefit realized upon vesting	43.2	41.1	23.4
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense	81.9
Weighted average period to recognize expense	1 year 8 months 12 days
Fair value of vested shares	92.4	54.6	37.8
Tax benefit realized upon vesting	31.2	19.3	13.4
Performance-Based Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting period, years	3 years
Unrecognized compensation expense	14.9
Weighted average period to recognize expense	10 months 27 days
Fair value of vested shares	38.0	25.5	0
Tax benefit realized upon vesting	$ 14.4	$ 9.7	$ 0
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance	6.0
Discount allowed to employees on purchase of shares under ESPP plan	5.00%	5.00%	5.00%
ESPP plans elected by plan participants, minimum	1.00%
ESPP plans elected by plan participants, maximum	10.00%
Director
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance	1.7
Director | Stock Option Exercises
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting period, years	1 year
Director | Stock Option Exercises | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options exercisable period, maximum, years	10
Stock options vesting period, years	4 years
1998 Plan | Stock Option Exercises
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance	33.0
2001 Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance	50.6
2001 Plan | Instruments Other Than Options | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance	14.0

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COMPREHENSIVE INCOME RECLASSIFICATION

12 Months Ended

Dec. 31, 2014

Comprehensiveincome

NOTE 11 COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table provides details about the reclassifications out of AOCI:

		Year Ended December 31,				Affected line in the Consolidated Statements of Operation
		2014		2013
Losses on foreign translation adjustments
	Liquidation of foreign subsidiary	$	-	$	(1.4)	Other non-operating income (expense), net
	Loss on foreign currency translation adjustment pursuant to ICRA step-acquisition		(4.4)		-	ICRA Gain
Total losses on foreign translation adjustments			(4.4)		(1.4)
Losses on cash flow hedges
	Interest rate swap derivative contracts		-		(1.2)	Interest income (expense), net
	Income tax effect of item above		-		0.5	Provision for income taxes
Losses on cash flow hedges			-		(0.7)
Gains on available for sale securities
	Gain on sale of available for sale securities		0.1		-	Other non-operating income (expense), net
Total gains on available for sale securities			0.1		-
Losses on pension and other retirement benefits
	Amortization of actuarial losses and prior service costs included in net income		(4.7)		(7.6)	Operating expense
	Amortization of actuarial losses and prior service costs included in net income		(2.6)		(4.3)	SG&A expense
	Total before income taxes		(7.3)		(11.9)
	Income tax effect of item above		2.8		4.9	Provision for income tax
Total losses on pension and other retirement benefits			(4.5)		(7.0)
Total losses included in Net Income attributable to reclassifications out of AOCI		$	(8.8)	$	(9.1)

Changes in AOCI by component (net of tax) for the period ended December 31, 2014 and 2013:

		Year Ended December 31, 2014
		Gains/(losses) on Net Investment Hedges		Pension and Other Retirement Benefits		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total
Balance December 31, 2013		$	1.5	$	(53.2)	$	(2.9)	$	-	$	(54.6)
	Other comprehensive income/(loss) before reclassification		19.4		(56.7)		(153.1)		1.0		(189.4)
	Amounts reclassified from AOCI		-		4.5		4.4		(0.1)		8.8
Other comprehensive income/(loss)			19.4		(52.2)		(148.7)		0.9		(180.6)
Balance December 31, 2014		$	20.9	$	(105.4)	$	(151.6)	$	0.9	$	(235.2)
		Year Ended December 31, 2013
		Gains/(losses) on Cash Flow and Net Investment Hedges		Pension and Other Retirement Benefits		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total
Balance December 31, 2012		$	(2.9)	$	(90.1)	$	10.9	$	-	$	(82.1)
	Other comprehensive income/(loss) before reclassification		3.7		29.9		(15.2)		-		18.4
	Amounts reclassified from AOCI		0.7		7.0		1.4		-		9.1
Other comprehensive income/(loss)			4.4		36.9		(13.8)		-		27.5
Balance December 31, 2013		$	1.5	$	(53.2)	$	(2.9)	$	-	$	(54.6)

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value of Derivative Instruments

				Fair Value of Derivative Instruments
					Balance Sheet Location		December 31, 2014		December 31, 2013
Assets:
Derivatives designated as accounting hedges:
		Interest rate swaps			Other assets	$	17.4	$	10.3
		FX forwards on net investment in certain foreign subsidiaries			Other current assets		18.8		9.3
	Total derivatives designated as accounting hedges						36.2		19.6
Derivatives not designated as accounting hedges:
		FX forwards on certain assets and liabilities			Other current assets		5.6		0.9
Total						$	41.8	$	20.5
Liabilities:
Derivatives designated as accounting hedges:
		FX forwards on net investment in certain foreign subsidiaries			Accounts payable and accrued liabilities	$	-	$	1.0
	Total derivatives designated as accounting hedges						-		1.0
Derivatives not designated as accounting hedges:
			FX forwards on certain assets and liabilities		Accounts payable and accrued liabilities		2.1		0.7
Total						$	2.1	$	1.7

Gains and Losses on Derivatives Designated as Hedging Instruments

		Amount of Gain (Loss) Recognized in consolidated statement of operations
		Year Ended December 31,
Derivatives designated as accounting hedges	Location on Consolidated Statements of Operations		2014		2013		2012
Interest rate swaps	Interest income (expense), net	$	11.7	$	4.2	$	3.6
Derivatives not designated as accounting hedges
Foreign exchange forwards	Other non-operating (expense) income	$	(2.0)	$	2.1	$	0.9

Net Investment Hedging

Summary of Notional Amounts of Outstanding Foreign Exchange Forwards

	December 31,		December 31,
	2014		2013
Notional amount of Currency Pair:
Contracts to sell euros for USD	€	50.0	€	50.0
Contracts to sell Japanese yen for USD	¥	19,400	¥	19,700

Summary of Net Gain (Loss) on Foreign Exchange Forwards Not Designated as Hedging Instruments and on Interest Rate Swaps Designated as Fair Value Hedges

Derivatives in Net Investment Hedging Relationships	Amount of Gain/(Loss), net of tax, Recognized in AOCI on Derivative (Effective Portion)
	Year Ended December 31,
	2014		2013		2012
FX forwards	$	19.4	$	3.7	$	(2.2)
Total	$	19.4	$	3.7	$	(2.2)

Cumulative Amount of Unrecognized Hedge Losses Recorded in Accumulated Other Comprehensive Income

	Gains (Losses), net of tax
	December 31, 2014		December 31, 2013
FX forwards on net investment hedges	$	20.9	$	1.5

Nondesignated [Member]

Summary of Notional Amounts of Outstanding Foreign Exchange Forwards

	December 31,		December 31,
	2014		2013
Notional amount of Currency Pair:
Contracts to purchase USD with euros	$	38.5	$	14.2
Contracts to sell USD for euros	$	51.1	$	53.2
Contracts to purchase USD with GBP	$	0.2	$	-
Contracts to purchase USD with other foreign currencies	$	1.2	$	-
Contracts to purchase euros with other foreign currencies	€	34.0	€	13.1
Contracts to purchase euros with GBP	€	25.0	€	22.1
Contracts to sell euros for GBP	€	38.2	€	-

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Summary Of Significant Accounting Policies [Line Items]
Research and development costs	$ 37.9	$ 22.8	$ 16.1
Deferred Revenue related to rated securities	107.0	97.0	82.0
Account receivable related to commercial paper	$ 22.0	$ 21.0	$ 22.0
Concentration risk, percentage	1000.00%	1000.00%
Reporting Units	6
MIS | Ratings Member [Member]
Summary Of Significant Accounting Policies [Line Items]
Reporting Units	2
MIS | Non Ratings [Member]
Summary Of Significant Accounting Policies [Line Items]
Reporting Units	1
MA
Summary Of Significant Accounting Policies [Line Items]
Reporting Units	4

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STOCK - BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2014

STOCK - BASED COMPENSATION PLANS

NOTE 13 STOCK-BASED COMPENSATION PLANS

Under the 1998 Plan, 33.0million shares of the Company’s common stock have been reserved for issuance. The 2001 Plan, which is shareholder approved, permits the granting of up to 50.6million shares, of which not more than 14.0million shares are available for grants of awards other than stock options. The Stock Plans also provide for the granting of restricted stock. The Stock Plans provide that options are exercisable not later than tenyears from the grant date. The vesting period for awards under the Stock Plans is generally determined by the Board at the date of the grant and has been four years except for employees who are at or near retirement eligibility, as defined, for which vesting is between one and four years. Additionally, the vesting period is three years for certain performance-based restricted stock that contain a condition whereby the number of shares that ultimately vest are based on the achievement of certain non-market based performance metrics of the Company. Options may not be granted at less than the fair market value of the Company’s common stock at the date of grant.

The Company maintains the Directors’ Plan for its Board, which permits the granting of awards in the form of non-qualified stock options, restricted stock or performance shares. The Directors’ Plan provides that options are exercisable not later than ten years from the grant date. The vesting period is determined by the Board at the date of the grant and is generally one year for both options and restricted stock. Under the Directors’ Plan, 1.7million shares of common stock were reserved for issuance. Any director of the Company who is not an employee of the Company or any of its subsidiaries as of the date that an award is granted is eligible to participate in the Directors’ Plan.

Presented below is a summary of the stock-based compensation expense and associated tax benefit in the accompanying Consolidated Statements of Operations:

	Year Ended December 31,
	2014		2013		2012
Stock-based compensation expense	$	80.4	$	67.1	$	64.5
Tax benefit	$	27.5	$	24.7	$	23.3

The fair value of each employee stock option award is estimated on the date of grant using the Black-Scholes option-pricing model that uses the assumptions noted below. The expected dividend yield is derived from the annual dividend rate on the date of grant. The expected stock volatility is based on an assessment of historical weekly stock prices of the Company as well as implied volatility from Moody’s traded options. The risk-free interest rate is based on U.S. government zero coupon bonds with maturities similar to the expected holding period. The expected holding period was determined by examining historical and projected post-vesting exercise behavior activity.

The following weighted average assumptions were used for options granted:

	Year Ended December 31,
	2014		2013		2012
Expected dividend yield		1.41%		1.72%		1.66%
Expected stock volatility		41%		43%		44%
Risk-free interest rate		2.30%		1.53%		1.55%
Expected holding period		7.2 years		7.2 years		7.4 years
Grant date fair value	$	31.53	$	17.58	$	15.19

A summary of option activity as of December 31,2014 and changes during the year then ended is presented below:

Options	Shares		Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding, December 31, 2013	8.9	$	45.00
Granted	0.3		79.57
Exercised	(3.2)		46.40
Outstanding, December 31, 2014	6.0	$	46.00	4.2 yrs	$	299.5
Vested and expected to vest, December 31, 2014	5.9	$	45.84	4.1 yrs	$	295.6
Exercisable, December 31, 2014	5.0	$	44.79	3.4 yrs	$	252.6

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between Moody’s closing stock price on the last trading day of the year ended December 31,2014 and the exercise prices, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options as of December 31,2014. This amount varies based on the fair value of Moody’s stock. As of December 31,2014 there was $7.4 million of total unrecognized compensation expense related to options. The expense is expected to be recognized over a weighted average period of 1.4 years.

The following table summarizes information relating to stock option exercises:

	Year Ended December 31,
	2014		2013		2012
Proceeds from stock option exercises	$	145.5	$	163.3	$	127.4
Aggregate intrinsic value	$	122.3	$	112.4	$	61.3
Tax benefit realized upon exercise	$	43.2	$	41.1	$	23.4

A summary of the status of the Company’s nonvested restricted stock as of December 31,2014 and changes during the year then ended is presented below:

Nonvested Restricted Stock		Shares	Weighted Average Grant Date Fair Value Per Share
Balance, December 31, 2013		3.1	$	39.30
	Granted	0.9		79.69
	Vested	(1.2)		36.19
	Forfeited	(0.1)		50.45
Balance, December 31, 2014		2.7	$	53.98

As of December 31,2014, there was $81.9 million of total unrecognized compensation expense related to nonvested restricted stock. The expense is expected to be recognized over a weighted average period of 1.6 years.

The following table summarizes information relating to the vesting of restricted stock awards:

	Year Ended December 31,
	2014		2013		2012
Fair value of shares upon delivery	$	92.4	$	54.6	$	37.8
Tax benefit realized upon delivery	$	31.2	$	19.3	$	13.4

A summary of the status of the Company’s performance-based restricted stock as of December 31, 2014 and changes during the year then ended is presented below:

Performance-based restricted stock		Shares	Weighted Average Grant Date Fair Value Per Share
Balance, December 31, 2013		1.2	$	31.17
	Granted	0.2	$	76.35
	Vested	(0.5)	$	28.76
Balance, December 31, 2014		0.9	$	46.09

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Dividends Paid (Detail) (USD $)	3 Months Ended												12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Capital Stock [Line Items]
Dividends Per Share Paid	$ 0.28	$ 0.28	$ 0.28	$ 0.28	$ 0.25	$ 0.25	$ 0.2	$ 0.2	$ 0.16	$ 0.16	$ 0.16	$ 0.16	$ 1.12	$ 0.9	$ 0.64

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CONTINGENCIES

12 Months Ended

Dec. 31, 2014

CONTINGENCIES

NOTE 18 CONTINGENCIES

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Summary of Option Activity (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Options
Shares, Outstanding, Beginning Balance	8.9
Shares, Granted	0.3
Shares, Exercised	3.2
Shares, Forfeited
Shares, Expired
Shares, Outstanding, Ending Balance	6.0
Shares, Vested and expected to vest	5.9
Shares, Exercisable	5.0
Options
Weighted Average Exercise Price Per Share, Outstanding Beginning Balance	$ 45
Weighted Average Exercise Price Per Share, Granted	$ 79.57
Weighted Average Exercise Price Per Share, Exercised	$ 46.4
Weighted Average Exercise Price Per Share, Forfeited	$ 0
Weighted Average Exercise Price Per Share, Expired	$ 0
Weighted Average Exercise Price Per Share, Outstanding Ending Balance	$ 46
Weighted Average Exercise Price Per Share, Vested and expected to vest	$ 45.84
Weighted Average Exercise Price Per Share, Exercisable	$ 44.79
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term, Outstanding	4 years 4 months 6 days
Weighted Average Remaining Contractual Term, Vested and expected to vest	4 years 1 month 3 days
Weighted Average Remaining Contractual Term	3 years 4 months 24 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Outstanding	$ 299.5
Aggregate Intrinsic Value, Vested and expected to vest	295.6
Aggregate Intrinsic Value, Exercisable	$ 252.6

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QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Data

		Three Months Ended
(amounts in millions, except EPS)		March 31		June 30		September 30		December 31
2014
Revenue		$	767.2	$	873.5	$	816.1	$	877.5
Operating Income		$	333.0	$	411.7	$	349.7	$	344.7
Net income attributable to Moody's		$	218.0	$	319.2	$	215.2	$	236.3
EPS:
	Basic	$	1.02	$	1.51	$	1.02	$	1.14
	Diluted	$	1.00	$	1.48	$	1.00	$	1.12
2013
Revenue		$	731.8	$	756.0	$	705.5	$	779.2
Operating income		$	280.4	$	350.8	$	291.5	$	311.9
Net income attributable to Moody's		$	188.4	$	225.5	$	183.9	$	206.7
EPS:
	Basic	$	0.84	$	1.01	$	0.84	$	0.96
	Diluted	$	0.83	$	1.00	$	0.83	$	0.94

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Line Items]
Undistributed earnings of foreign subsidiaries	$ 2,032.0
Valuation allowance	6.9	8.4	(15.2)	(13.9)
Uncertain tax positions	220.3	195.6	156.6	205.4
Uncertain tax positions if recognized would impact the effective tax rate	157.1
Expense on UTBs and other tax related liabilities	5.8	8.6	(0.4)
Accrued interest related to UTPs	$ 20.8	$ 17.9

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STOCK - BASED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2014

Stock-Based Compensation Cost and Associated Tax Benefit

	Year Ended December 31,
	2014		2013		2012
Stock-based compensation expense	$	80.4	$	67.1	$	64.5
Tax benefit	$	27.5	$	24.7	$	23.3

Weighted Average Assumptions used in Determining Fair Value for Options Granted

	Year Ended December 31,
	2014		2013		2012
Expected dividend yield		1.41%		1.72%		1.66%
Expected stock volatility		41%		43%		44%
Risk-free interest rate		2.30%		1.53%		1.55%
Expected holding period		7.2 years		7.2 years		7.4 years
Grant date fair value	$	31.53	$	17.58	$	15.19

Summary of Option Activity

Options	Shares		Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding, December 31, 2013	8.9	$	45.00
Granted	0.3		79.57
Exercised	(3.2)		46.40
Outstanding, December 31, 2014	6.0	$	46.00	4.2 yrs	$	299.5
Vested and expected to vest, December 31, 2014	5.9	$	45.84	4.1 yrs	$	295.6
Exercisable, December 31, 2014	5.0	$	44.79	3.4 yrs	$	252.6

Summary of Information Relating to Stock Option Exercises

	Year Ended December 31,
	2014		2013		2012
Proceeds from stock option exercises	$	145.5	$	163.3	$	127.4
Aggregate intrinsic value	$	122.3	$	112.4	$	61.3
Tax benefit realized upon exercise	$	43.2	$	41.1	$	23.4

Summary of Nonvested Restricted Stock

Nonvested Restricted Stock		Shares	Weighted Average Grant Date Fair Value Per Share
Balance, December 31, 2013		3.1	$	39.30
	Granted	0.9		79.69
	Vested	(1.2)		36.19
	Forfeited	(0.1)		50.45
Balance, December 31, 2014		2.7	$	53.98

Information Related to Vesting of Restricted Stock Awards

	Year Ended December 31,
	2014		2013		2012
Fair value of shares upon delivery	$	92.4	$	54.6	$	37.8
Tax benefit realized upon delivery	$	31.2	$	19.3	$	13.4

Summary of Performance Based Restricted Stock

Performance-based restricted stock		Shares	Weighted Average Grant Date Fair Value Per Share
Balance, December 31, 2013		1.2	$	31.17
	Granted	0.2	$	76.35
	Vested	(0.5)	$	28.76
Balance, December 31, 2014		0.9	$	46.09

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Summary of Total Indebtedness (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
2012 Facility
Commercial paper
Total debt	2,547.3	2,101.8
Total long-term debt	2,547.3	2,101.8
Series 2005-1 Notes
Debt Instrument [Line Items]
Notes Payable		310.3
Series 2007-1 Notes
Debt Instrument [Line Items]
Notes Payable	300.0	300.0
2010 Senior Notes
Debt Instrument [Line Items]
Notes Payable	503.8	497.8
2012 Senior Notes
Debt Instrument [Line Items]
Notes Payable	496.9	496.5
2013 Senior Notes
Debt Instrument [Line Items]
Notes Payable	497.5	497.2
2014 5Y
Debt Instrument [Line Items]
Notes Payable	450.7	0
2014 30Y
Debt Instrument [Line Items]
Notes Payable	$ 298.4	$ 0

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accounts receivable, allowances	$ 29.4	$ 28.9
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock, shares	138,539,128	128,941,621
Property and equipment, accumulated depreciation	$ 451.5	$ 375.7
Series common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	342,902,272	342,902,272
Common stock, shares outstanding	10,000,000.0	10,000,000.0

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Assumed Healthcare Cost Trend Rates (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Pre-Age 65
Assumed Health Care Cost Trend Rates Effect Of One Percentage Point Change [Line Items]
Ultimate rate to which the cost trend rate is assumed to decline (ultimate trend rate)	7.95%	8.20%	6.90%
Year that the rate reaches the ultimate trend rate	2028	2028	2020
Healthcare cost trend rate assumed for the following year	5.00%	5.00%	5.00%
Post-Age 65
Assumed Health Care Cost Trend Rates Effect Of One Percentage Point Change [Line Items]
Ultimate rate to which the cost trend rate is assumed to decline (ultimate trend rate)	7.05%	7.30%	7.90%
Year that the rate reaches the ultimate trend rate	2026	2026	2020
Healthcare cost trend rate assumed for the following year	5.00%	5.00%	5.00%

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DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2014

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

NOTE 1 DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Moody’s is a provider of (i) credit ratings, (ii) credit, capital markets and economic research, data and analytical tools, (iii) software solutions and related risk management services, (iv) quantitative credit risk measures, financial services training and certification services and (v) outsourced research and analytical services to institutional customers. Moody’s has tworeportable segments: MIS and MA.

MIS, the credit rating agency, publishes credit ratings on a wide range of debt obligations and the entities that issue such obligations in markets worldwide. Revenue is primarily derived from the originators and issuers of such transactions who use MIS ratings in the distribution of their debt issues to investors. Additionally, MIS earns revenue from certain non-ratings-related operations which consist primarily of the distribution of research and fixed income pricing services in the Asia-Pacific region and outsourced services. The revenue from these operations is included in the MIS Other LOB and is not material to the results of the MIS segment.

The MA segment develops a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets. Within its Research, Data and Analytics business, MA distributes research and data developed by MIS as part of its ratings process, including in-depth research on major debt issuers, industry studies and commentary on topical credit-related events. The RD&A business also produces economic research as well as data and analytical tools such as quantitative credit risk scores. Within its Enterprise Risk Solutions business, MA provides software solutions as well as related risk management services. The Professional Services business provides outsourced research and analytical services along with financial training and certification programs.

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Summary of Net Gain (Loss) on Foreign Exchange Forwards Not Designated as Hedging Instruments and on Interest Rate Swaps Designated as Fair Value Hedges (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Derivatives designated as accounting hedges | Interest rate swaps | Interest expense, net
Derivative Instruments Gain Loss [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 11.7	$ 4.2	$ 3.6
Derivatives not designated as accounting hedges | Foreign Exchange Forwards and Options | Other non-operating (expense) income
Derivative Instruments Gain Loss [Line Items]
Amount of Gain (Loss) Recognized in Income	$ (2.0)	$ 2.1	$ 0.9

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Summary of Post-Retirement Plans to Amortize from Accumulated Other Comprehensive Income (Loss) as Net Periodic Expense (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Pension Plans
Schedule Of Net Periodic Benefit Costs And Assumptions For Defined Benefit Retirement Plans [Line Items]
Net actuarial losses	$ 13.6
Net prior service costs	0.7
Total to be recognized as components of net periodic expense	14.3
Other Retirement Plans
Schedule Of Net Periodic Benefit Costs And Assumptions For Defined Benefit Retirement Plans [Line Items]
Net actuarial losses	0.3
Net prior service costs	0
Total to be recognized as components of net periodic expense	$ 0.3

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Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Reconciliation Of Unrecognized Tax Benefits [Line Items]
Uncertain tax positions beginning	$ 195.6	$ 156.6	$ 205.4
Additions for tax positions related to the current year	52.5	67.8	49.1
Additions for tax positions of prior years	8.7	6.1	18.9
Reductions for tax positions of prior years	13.0	10.1	20.6
Settlements with taxing authorities	18.8	21.4	91.5
Lapse of statute of limitations	4.7	3.4	4.7
Uncertain tax positions ending	$ 220.3	$ 195.6	$ 156.6

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Acquired Intangible Assets and Related Amortization (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, net	$ 345.5	$ 221.6
Client relationships
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	310.4	237.4
Accumulated amortization	(98.1)	(86.6)
Acquired intangible assets, net	212.3	150.8
Trade secrets
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	30.6	31.1
Accumulated amortization	(20.9)	(18.5)
Acquired intangible assets, net	9.7	12.6
Software
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	79.8	71.0
Accumulated amortization	(43.0)	(38.8)
Acquired intangible assets, net	36.8	32.2
Trade names
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	76.5	31.3
Accumulated amortization	(13.3)	(11.7)
Acquired intangible assets, net	63.2	19.6
Other Intangible Assets
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	44.8	26.1
Accumulated amortization	(21.3)	(19.7)
Acquired intangible assets, net	$ 23.5	$ 6.4

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SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2014

SEGMENT INFORMATION

NOTE 19 SEGMENT INFORMATION

The Company is organized into three operating segments: (i) MIS, (ii) MA and (iii) Copal Amba. The Copal Amba operating segment has been aggregated with the MA operating segment based on the fact that it has similar economic characteristics to MA. Accordingly, the Company reports in two reportable segments: MIS and MA.

In January 2014, the Company revised its operating segments to create the new Copal Amba operating segment.  The new operating segment consists of all operations from Copal and the operations of Amba which was acquired in December 2013.  The Copal Amba operating segment provides offshore research and analytic services to the global financial and corporate sectors.  The Company has determined that the Copal Amba and MA operating segments have similar economic characteristics as set forth in ASC 280. As such, Copal Amba has been combined with MA to form the MA reportable segment and Copal Amba’s revenue is reported in the PS LOB.

In the fourth quarter of 2014, pursuant to the acquisition of ICRA, Moody’s realigned certain components of its reportable segments to better align with the current management structure of the Company. The effect of this realignment was to combine non-ratings ICRA operations with certain immaterial research and fixed income pricing operations in the Asia-Pacific region that were previously reported in the RD&A LOB of MA. All of these operations are managed by MIS and their revenue is now reported in the new MIS Other LOB. All operating expenses from these operations are reported in the MIS reportable segment. The impact of this realignment did not have a significant impact on previously reported results for the reportable segments and all prior year comparative periods have been restated to reflect this realignment.

The MIS segment now consists of five lines of business. The corporate finance, structured finance, financial institutions and public, project and infrastructure finance 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 the distribution of research and fixed income pricing services in the Asia-Pacific region as well as ICRA non-ratings revenue.

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 lines of business – RD&A, ERS and PS.

In December 2013, a subsidiary of the Company acquired Amba, a provider of investment research and quantitative analytics for global financial institutions. Amba is part of the MA reportable segment and its revenue in included in the PS LOB. In June 2014, a subsidiary of the Company acquired ICRA Limited, a leading provider of credit ratings and research in India. ICRA is part of the MIS reportable segment and its revenue is included in the respective MIS LOBs. In July 2014, a subsidiary of the Company acquired WebEquity, a leading provider of cloud-based loan origination solutions for financial institutions. WebEquity is part of the MA reportable segment and its revenue is included in the ERS LOB. In October 2014, the Company acquired Lewtan, a leading provider of analytical tools and data for the global structured finance market. Lewtan is part of the MA reportable segment and its revenue is included in the RD&A LOB.

Revenue for MIS and expenses for MA include an intersegment royalty charged to MA for the rights to use and distribute content, data and products developed by MIS. The royalty rate charged by MIS approximates the fair value of the aforementioned content, data and products and is generally based on comparable market transactions. Also, revenue for MA and expenses for MIS include an intersegment fee charged to MIS from MA for certain MA products and servicesutilized in MIS’s ratings process. These fees charged by MA are generally equal to the costs incurred by MA to produce these products and services. Additionally, overhead costs and corporate expenses of the Company which exclusively benefit only one segment, are fully charged to that segment. Overhead costs and corporate expenses of the Company which benefit both segments are allocated to each segment based on a revenue-split methodology. Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and information technology. “Eliminations” in the table below 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, Adjusted Operating Income and 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.

		Year Ended December 31,
		2014								2013
		MIS		MA		Eliminations		Consolidated		MIS		MA		Eliminations		Consolidated
Revenue		$	2,353.4	$	1,081.8	$	(100.9)	$	3,334.3	$	2,150.2	$	913.3	$	(91.0)	$	2,972.5
Operating, SG&A			1,076.2		824.3		(100.9)		1,799.6		1,034.0		701.5		(91.0)		1,644.5
Adjusted Operating Income			1,277.2		257.5		-		1,534.7		1,116.2		211.8		-		1,328.0
	Depreciation and amortization		49.4		46.2		-		95.6		46.7		46.7		-		93.4
Operating income		$	1,227.8	$	211.3	$	-	$	1,439.1	$	1,069.5	$	165.1	$	-	$	1,234.6
										Year Ended December 31,
										2012
										MIS		MA		Eliminations		Consolidated
Revenue										$	1,968.8	$	844.9	$	(83.4)	$	2,730.3
Operating, SG&A											976.3		654.3		(83.4)		1,547.2
Adjusted Operating Income											992.5		190.6		-		1,183.1
	Depreciation and amortization										44.4		49.1		-		93.5
Goodwill impairment charge											-		12.2		-		12.2
Operating income										$	948.1	$	129.3	$	-	$	1,077.4

MIS AND MA REVENUE BY LINE OF BUSINESS

The tables below present revenue by LOB:

		Year Ended December 31,
		2014		2013		2012
MIS:
Corporate finance (CFG)		$	1,109.3	$	996.8	$	857.6
Structured finance (SFG)			426.5		382.5		381.0
Financial institutions (FIG)			354.7		338.8		325.5
Public, project and infrastructure finance (PPIF)			357.3		341.3		322.7
	Total ratings revenue		2,247.8		2,059.4		1,886.8
MIS Other			18.0		12.2		10.5
	Total external revenue		2,265.8		2,071.6		1,897.3
Intersegment royalty			87.6		78.6		71.5
	Total		2,353.4		2,150.2		1,968.8
MA:
Research, data and analytics (RD&A)			571.8		519.8		482.7
Enterprise risk solutions (ERS)			328.5		262.5		242.6
Professional services (PS)			168.2		118.6		107.7
	Total external revenue		1,068.5		900.9		833.0
Intersegment revenue			13.3		12.4		11.9
	Total		1,081.8		913.3		844.9
Eliminations			(100.9)		(91.0)		(83.4)
	Total MCO	$	3,334.3	$	2,972.5	$	2,730.3

CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA

		Year Ended December 31,
		2014		2013		2012
Revenue:
U.S.		$	1,814.5	$	1,626.5	$	1,472.4
International:
	EMEA		952.8		862.8		800.2
	Asia-Pacific		338.3		286.1		266.5
	Americas		228.7		197.1		191.2
	Total International		1,519.8		1,346.0		1,257.9
Total		$	3,334.3	$	2,972.5	$	2,730.3
Long-lived assets at December 31:
United States		$	657.6	$	552.3	$	498.4
International			1,011.3		613.2		672.3
Total		$	1,668.9	$	1,165.5	$	1,170.7

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Operating Lease, Minimum Rent for Payment (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Lease Commitments And Contingencies [Line Items]
2015	$ 93.4
2016	80.9
2017	78.3
2018	72.7
2019	64.9
Thereafter	447.3
Total minimum lease payments	$ 837.5

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COMPREHENSIVE INCOME RECLASSIFICATION (Tables)

12 Months Ended

Dec. 31, 2014

AOCI Reclassification [Text Block]

		Year Ended December 31,				Affected line in the Consolidated Statements of Operation
		2014		2013
Losses on foreign translation adjustments
	Liquidation of foreign subsidiary	$	-	$	(1.4)	Other non-operating income (expense), net
	Loss on foreign currency translation adjustment pursuant to ICRA step-acquisition		(4.4)		-	ICRA Gain
Total losses on foreign translation adjustments			(4.4)		(1.4)
Losses on cash flow hedges
	Interest rate swap derivative contracts		-		(1.2)	Interest income (expense), net
	Income tax effect of item above		-		0.5	Provision for income taxes
Losses on cash flow hedges			-		(0.7)
Gains on available for sale securities
	Gain on sale of available for sale securities		0.1		-	Other non-operating income (expense), net
Total gains on available for sale securities			0.1		-
Losses on pension and other retirement benefits
	Amortization of actuarial losses and prior service costs included in net income		(4.7)		(7.6)	Operating expense
	Amortization of actuarial losses and prior service costs included in net income		(2.6)		(4.3)	SG&A expense
	Total before income taxes		(7.3)		(11.9)
	Income tax effect of item above		2.8		4.9	Provision for income tax
Total losses on pension and other retirement benefits			(4.5)		(7.0)
Total losses included in Net Income attributable to reclassifications out of AOCI		$	(8.8)	$	(9.1)

Schedule Of Accumulated Other Comprehensive Income Loss Table [Text Block]

		Year Ended December 31, 2014
		Gains/(losses) on Net Investment Hedges		Pension and Other Retirement Benefits		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total
Balance December 31, 2013		$	1.5	$	(53.2)	$	(2.9)	$	-	$	(54.6)
	Other comprehensive income/(loss) before reclassification		19.4		(56.7)		(153.1)		1.0		(189.4)
	Amounts reclassified from AOCI		-		4.5		4.4		(0.1)		8.8
Other comprehensive income/(loss)			19.4		(52.2)		(148.7)		0.9		(180.6)
Balance December 31, 2014		$	20.9	$	(105.4)	$	(151.6)	$	0.9	$	(235.2)
		Year Ended December 31, 2013
		Gains/(losses) on Cash Flow and Net Investment Hedges		Pension and Other Retirement Benefits		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total
Balance December 31, 2012		$	(2.9)	$	(90.1)	$	10.9	$	-	$	(82.1)
	Other comprehensive income/(loss) before reclassification		3.7		29.9		(15.2)		-		18.4
	Amounts reclassified from AOCI		0.7		7.0		1.4		-		9.1
Other comprehensive income/(loss)			4.4		36.9		(13.8)		-		27.5
Balance December 31, 2013		$	1.5	$	(53.2)	$	(2.9)	$	-	$	(54.6)

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Quarterly Financial Data - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Financial Data [Line Items]
Benefit to net income related to the resolution of legacy tax matters			$ 21,300,000
Goodwill impairment charge	$ 1,000,000	$ 1,000,000			$ 12,200,000
Per Share impact of Q1 2013 Litigation Settlement			$ 0.14

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Fair Value - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value Of Financial Instruments [Line Items]
Contingent consideration at fair value		$ 17.5	$ 9.0	$ 9.1
Business Acquisition Contingent Consideration At Fair Value	2.1	17.5
Minority Interest Ownership Percentage By Noncontrolling Owners	33.00%
Payments Of Dividends Minority Interest	11.8	12.2	8.3
Accounts Payable And Accrued Liabilities [Member]
Fair Value Of Financial Instruments [Line Items]
Business Acquisition Contingent Consideration At Fair Value	2.1
Amba [Member]
Fair Value Of Financial Instruments [Line Items]
Business Acquisition Contingent Consideration At Fair Value	4.3
Payments Of Dividends Minority Interest	$ 12.2
fixed maturity and open ended mutual funds [Member] | Minimum [Member]
Fair Value Of Financial Instruments [Line Items]
Securities Maturity period	2 months
fixed maturity and open ended mutual funds [Member] | Maximum [Member]
Fair Value Of Financial Instruments [Line Items]
Securities Maturity period	23 months

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FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2014

Financial Instruments Carried at Fair Value on Recurring Basis

		Fair Value Measurement as of December 31, 2014
Description		Balance		Level 1		Level 2		Level 3
Assets:
	Derivatives (a)	$	41.8	$	-	$	41.8	$	-
	Money market mutual funds		149.7		149.7		-		-
	Fixed maturity and open ended mutual funds (b)		48.0		48.0		-		-
	Total	$	239.5	$	197.7	$	41.8	$	-
Liabilities:
	Derivatives (a)	$	2.1	$	-	$	2.1	$	-
	Contingent consideration arising from acquisitions (c)		2.1		-		-		2.1
	Total	$	4.2	$	-	$	2.1	$	2.1
		Fair Value Measurement as of December 31, 2013
Description		Balance		Level 1		Level 2		Level 3
Assets:
	Derivatives (a)	$	20.5	$	-	$	20.5	$	-
	Money market mutual funds		212.3		212.3		-		-
	Total	$	232.8	$	212.3	$	20.5	$	-
Liabilities:
	Derivatives (a)	$	1.7	$	-	$	1.7	$	-
	Contingent consideration arising from acquisitions (c)		17.5		-		-		17.5
	Total	$	19.2	$	-	$	1.7	$	17.5
(a) Represents interest rate swaps and FX forwards on certain assets and liabilities as well as on certain non-U.S. dollar net investments in certain foreign subsidiaries more fully discussed in Note 5 to the financial statements
(b) Represents investments in fixed maturity mutual funds and open ended mutual funds held by ICRA. The remaining contractual maturities for the fixed maturity instruments range from two months to 23 months
(c) Represents contingent consideration liabilities pursuant to the agreements for certain acquisitions

Changes in Fair Value of Level Three Liabilities, Contingent Consideration

	Changes in Contingent Consideration for Years Ended December 31,
	2014		2013		2012
Balance as of January 1	$	17.5	$	9.0	$	9.1
Contingent consideration assumed in acquisition of Amba		-		4.3		-
Contingent consideration payments		(16.5)		(2.5)		(0.5)
Losses included in earnings		1.3		6.9		0.1
Foreign currency translation adjustments		(0.2)		(0.2)		0.3
Balance as of December 31	$	2.1	$	17.5	$	9.0

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PENSION AND OTHER RETIREMENT BENEFITS

12 Months Ended

Dec. 31, 2014

PENSION AND OTHER RETIREMENT BENEFITS

NOTE 12 PENSION AND OTHER RETIREMENT BENEFITS

U.S. Plans

Moody’s maintains funded and unfunded noncontributory Defined Benefit Pension Plans. The U.S. plans provide defined benefits using a cash balance formula based on years of service and career average salary or final average pay for selected executives. The Company also provides certain healthcare and life insurance benefits for retired U.S. employees. The retirement healthcare plans are contributory; the life insurance plans are noncontributory. Moody’s funded and unfunded U.S. pension plans, the U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Retirement Plans”. The U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Other Retirement Plans”. Effective at the Distribution Date, Moody’s assumed responsibility for the pension and other retirement benefits relating to its active employees. New D&B has assumed responsibility for the Company’s retirees and vested terminated employees as of the Distribution Date.

Through 2007, substantially all U.S. employees were eligible to participate in the Company’s DBPPs. Effective January 1, 2008, the Company no longer offers DBPPs to U.S. employees hired or rehired on or after January 1, 2008 and new hires in the U.S. instead will receive a retirement contribution in similar benefit value under the Company’s Profit Participation Plan. Current participants of the Company’s Retirement Plans and Other Retirement Plans continue to accrue benefits based on existing plan benefit formulas.

Following is a summary of changes in benefit obligations and fair value of plan assets for the Retirement Plans for the years ended December 31:

			Pension Plans					Other Retirement Plans
			2014			2013			2014		2013
Change in benefit obligation:
	Benefit obligation, beginning of the period			$	(347.1)	$	(356.3)		$	(20.7)	$	(21.8)
		Service cost			(18.4)		(19.8)			(1.7)		(1.7)
		Interest cost			(16.5)		(13.5)			(0.9)		(0.8)
		Plan participants’ contributions			-		-			(0.4)		(0.3)
		Benefits paid			6.4		5.3			0.6		0.6
		Actuarial gain (loss)			(8.3)		(0.7)			(0.1)		1.0
		Assumption changes			(77.9)		37.9			(3.5)		2.3
	Benefit obligation, end of the period				(461.8)		(347.1)			(26.7)		(20.7)
Change in plan assets:
	Fair value of plan assets, beginning of the period				204.6		167.6			-		-
		Actual return on plan assets			12.9		23.0			-		-
		Benefits paid			(6.4)		(5.3)			(0.6)		(0.6)
		Employer contributions			37.3		19.3			0.2		0.3
		Plan participants' contributions			-		-			0.4		0.3
	Fair value of plan assets, end of the period				248.4		204.6			-		-
Funded Status of the plans					(213.4)		(142.5)			(26.7)		(20.7)
Amounts recorded on the consolidated balance sheets:
	Pension and retirement benefits liability - current				(4.3)		(6.2)			(0.8)		(0.8)
	Pension and retirement benefits liability - non current				(209.1)		(136.3)			(25.9)		(19.9)
Net amount recognized				$	(213.4)	$	(142.5)		$	(26.7)	$	(20.7)
Accumulated benefit obligation, end of the period				$	(396.3)	$	(298.5)

The following information is for those pension plans with an accumulated benefit obligation in excess of plan assets:

	December 31,
	2014		2013
Aggregate projected benefit obligation	$	461.8	$	347.1
Aggregate accumulated benefit obligation	$	396.3	$	298.5
Aggregate fair value of plan assets	$	248.4	$	204.6

The following table summarizes the pre-tax net actuarial losses and prior service cost recognized in AOCI for the Company’s Retirement Plans as of December 31:

	Pension Plans				Other Retirement Plans
	2014		2013		2014		2013
Net actuarial losses	$	(165.5)	$	(84.6)	$	(6.0)	$	(2.4)
Net prior service costs		(2.7)		(3.3)		-		-
Total recognized in AOCI- pretax	$	(168.2)	$	(87.9)	$	(6.0)	$	(2.4)

The following table summarizes the estimated pre-tax net actuarial losses and prior service cost for the Company’s Retirement Plans that will be amortized from AOCI and recognized as components of net periodic expense during the next fiscal year:

	Pension Plans		Other Retirement Plans
Net actuarial losses	$	13.6	$	0.3
Net prior service costs		0.7		-
Total to be recognized as components of net periodic expense	$	14.3	$	0.3

Net periodic benefit expenses recognized for the Retirement Plans for years ended December 31:

	Pension Plans						Other Retirement Plans
	2014		2013		2012		2014		2013		2012
Components of net periodic expense
Service cost	$	18.4	$	19.8	$	18.9	$	1.7	$	1.7	$	1.5
Interest cost		16.5		13.5		13.1		0.9		0.8		0.7
Expected return on plan assets		(14.3)		(12.9)		(12.5)		-		-		-
Amortization of net actuarial loss from earlier periods		6.6		10.8		9.1		-		0.3		0.3
Amortization of net prior service costs from earlier periods		0.7		0.6		0.7		-		-		-
Net periodic expense	$	27.9	$	31.8	$	29.3	$	2.6	$	2.8	$	2.5

The following table summarizes the pre-tax amounts recorded in OCI related to the Company’s Retirement Plans for the years ended December 31:

	Pension Plans				Other Retirement Plans
	2014		2013		2014		2013
Amortization of net actuarial losses	$	6.6	$	10.8	$	-	$	0.3
Amortization of prior service costs		0.7		0.6		-		-
Net actuarial gain (loss) arising during the period		(87.5)		47.3		(3.7)		3.3
Total recognized in OCI – pre-tax	$	(80.2)	$	58.7	$	(3.7)	$	3.6

	Pension Plans		Other Retirement Plans
	2014	2013	2014	2013
Discount rate	3.78%	4.71%	3.65%	4.45%
Rate of compensation increase	3.76%	4.00%	-	-

Weighted-average assumptions used to determine net periodic benefit expense for years ended December 31:

	Pension Plans			Other Retirement Plans
	2014	2013	2012	2014	2013	2012
Discount rate	4.71%	3.82%	4.25%	4.45%	3.55%	4.05%
Expected return on plan assets	6.80%	7.30%	7.85%	-	-	-
Rate of compensation increase	4.00%	4.00%	4.00%	-	-	-

The expected rate of return on plan assets represents the Company’s best estimate of the long-term return on plan assets and is determined by using a building block approach, which generally weighs the underlying long-term expected rate of return for each major asset class based on their respective allocation target within the plan portfolio, net of plan paid expenses. As the assumption reflects a long-term time horizon, the plan performance in any one particular year does not, by itself, significantly influence the Company’s evaluation. For 2014, the expected rate of return used in calculating the net periodic benefit costs was 6.80%. For 2015, the Company reduced the expected rate of return assumption to 5.80%

The assumed health cost trend rate reflects different expectations for the medical and prescribed medication components of health care costs for pre and post-65 retirees. As the Company subsidies for retiree healthcare coverage are capped at the 2005 level, for the majority of the retirement health plan participants, retiree contributions are assumed to increase at the same rate as the healthcare cost trend rates. In 2013, the Company revised its trend rates to reflect current expectations of future health care inflation. A one percentage-point increase or decrease in assumed healthcare cost trend rates would not have affected total service and interest cost and would have a minimal impact on the retiree medical benefit obligation.

In 2012, the Company amended its retiree medical plan to modify its current design. Effective January 1, 2013, the newly implemented plan design provides current retirees age 65 and older with the option over the next three years to either enroll in a new Health Reimbursement Account (HRA) Program and receive a fixed amount annual subsidy or continue to stay in the current retiree medical plan. All future retirees age 65 and older will have to participate in the new HRA Program. There is no change to pre-65 coverage. As the new plan was designed to be cost neutral to the Company, the amendment of the plan had no significant impact to the plan.

Plan Assets

Moody’s investment objective for the assets in the funded pension plan is to earn total returns that will minimize future contribution requirements over the long-term within a prudent level of risk. The Company works with its independent investment consultants to determine asset allocation targets for its pension plan investment portfolio based on its assessment of business and financial conditions, demographic and actuarial data, funding characteristics, and related risk factors. Other relevant factors, including historical and forward looking views of inflation and capital market returns, are also considered. Risk management practices include monitoring plan asset performance, diversification across asset classes and investment styles, and periodic rebalancing toward asset allocation targets. The Company’s Asset Management Committee is responsible for overseeing the investment activities of the plan, which includes selecting acceptable asset classes, defining allowable ranges of holdings by asset class and by individual investment managers, defining acceptable securities within each asset class, and establishing investment performance expectations. Ongoing monitoring of the plan includes reviews of investment performance and managers on a regular basis, annual liability measurements, and periodic asset/liability studies.

In 2014, the Company implemented a revised investment policy, which uses risk-controlled investment strategies by increasing the plan’s asset allocation to fixed income securities and specifying ranges of acceptable target allocation by asset class based on different levels of the plan’s accounting funded status. In addition, the investment policy also requires the investment grade fixed income asset be rebalanced between shorter and longer duration bonds as the interest rate environment changes. This revised investment policy is designed to help protect the plan’s funded status and to limit volatility of the Company’s contributions. Based on the revised policy, the Company’s current target asset allocation is approximately 53% (range of 48% to 58%) in equity securities, 40% (range of 35% to 45%) in fixed income securities and 7% (range of 4% to 10% ) in other investments and the plan will use a combination of active and passive investment strategies and different investment styles for its investment portfolios within each asset class. The plan’s equity investments are diversified across U.S. and non-U.S. stocks of small, medium and large capitalization. The plan’s fixed income investments are diversified principally across U.S. and non-U.S. government and corporate bonds which are expected to help reduce plan exposure to interest rate variation and to better align assets with obligations. The plan also invests in other fixed income investments such debts rated below investment grade, emerging market debt, and convertible securities. The plan’s other investment, which is made through private real estate investment trust fund, is expected to provide additional diversification benefits and absolute return enhancement to the plan assets. Prior to the implementation of the revised policy, the Company’s target asset allocation was approximately, 60%, 33%, and 7% in equities, fixed income, and other investment, respectively.

Fair value of the assets in the Company’s funded pension plan by asset category at December 31, 2014 and 2013 are as follows:

		Fair Value Measurement as of December 31, 2014
Asset Category		Balance		Level 1		Level 2		Level 3		% of total assets
Cash and cash equivalent		$	13.2	$	-	$	13.2	$	-	5%
Emerging markets equity fund			14.0	$	14.0	$	-		-	6%
Common/collective trust funds - equity securities
	Global large-cap		92.2		-		92.2		-	37%
	U.S. small and mid-cap		16.5		-		16.5		-	7%
Total equity investments			122.7		14.0		108.7		-	50%
Emerging markets bond fund			9.1		9.1		-		-	4%
Common/collective trust funds - fixed income securities
	Intermediate-term investment grade U.S. government/ corporate bonds		60.8		-		60.8		-	24%
	U.S. Treasury Inflation-Protected Securities (TIPs)		10.7		-		10.7		-	4%
	Convertible securities		7.5		-		7.5		-	3%
Private investment fund - high yield securities			6.7		-		6.7		-	3%
Total fixed-income investments			94.8		9.1		85.7		-	38%
Other investment- Common/collective trust fund — private real estate fund			17.8		-		17.8		-	7%
Total Assets		$	248.5	$	23.1	$	207.6	$	-	100%
		Fair Value Measurement as of December 31, 2013
Asset Category		Balance		Level 1		Level 2		Level 3		% of total assets
Cash and cash equivalent		$	0.4	$	-	$	0.4	$	-	-
Emerging markets equity fund			14.6	$	14.6	$	-		-	7%
Common/collective trust funds - equity securities
	U.S. large-cap		44.5		-		44.5		-	22%
	U.S. small and mid-cap		15.3		-		15.3		-	7%
	International		58.2		-		58.2		-	29%
Total equity investments			132.6		14.6		118.0		-	65%
Common/collective trust funds - fixed income securities
	Long-term government/treasury bonds		13.7		-		13.7		-	7%
	Long-term investment grade corporate bonds		15.4		-		15.4		-	7%
	U.S. Treasury Inflation-Protected Securities (TIPs)		8.7		-		8.7		-	4%
	Emerging markets bonds		5.8		-		5.8		-	3%
	High yield bonds		6.1		-		6.1		-	3%
	Convertible securities		6.3		-		6.3		-	3%
Total fixed-income investments			56.0		-		56.0		-	27%
Other investment - Common/collective trust fund - private real estate fund			15.6		-		-		15.6	8%
Total Assets		$	204.6	$	14.6	$	174.4	$	15.6	100%

Cash and cash equivalents are primarily comprised of investment in money market mutual funds. In determining fair value, Level 1 investments are valued based on quoted market prices in active markets. Investments in common/collective trust funds are valued using the net asset value (NAV) per unit in each fund. The NAV is based on the value of the underlying investments owned by each trust, minus its liabilities, and then divided by the number of shares outstanding. Common/collective trust funds are categorized in Level 2 to the extent that they are readily redeemable at their NAV as of the measurement date or in the near feature or else they are categorized in Level 3 of the fair value hierarchy.

The table below is a summary of changes in the fair value of the Plan’s Level 3 assets:

Real estate investment fund:
Balance as of December 31, 2013	$	15.6
Return on plan assets related to assets held as of December 31, 2014		1.6
Transfer (out), net		(17.8)
Purchases (sales), net		0.6
Balance as of December 31, 2014	$	-

Except for the Company’s U.S. funded pension plan, all of Moody’s Retirement Plans are unfunded and therefore have no plan assets.

Cash Flows

The Company contributed $33.7 million and $16.8 million to its U.S. funded pension plan during the years ended December 31, 2014 and 2013, respectively. The Company made payments of $3.6 million and $2.5 million related to its U.S. unfunded pension plan obligations during the years ended December 31, 2014 and 2013, respectively. The Company made payments of $0.6 million to its Other Retirement Plans during both the years ended December 31, 2014 and 2013. The Company presently anticipates making contributions of $9.0 million to its funded pension plan and anticipates making payments of $4.3 million related to its unfunded U.S. pension plans and $0.8 million related to its Other Retirement Plans during the year ended December 31, 2015.

Estimated Future Benefits Payable

Estimated future benefits payments for the Retirement Plans are as follows at ended December 31, 2014:

Year Ending December 31,	Pension Plans		Other  Retirement Plans
2015	$	8.3	$	0.8
2016		10.3		1.0
2017		10.9		1.1
2018		39.6		1.3
2019		14.0		1.5
2020 – 2024	$	110.5	$	9.6

Defined Contribution Plans

Moody’s has a Profit Participation Plan covering substantially all U.S. employees. The Profit Participation Plan provides for an employee salary deferral and the Company matches employee contributions, equal to 50% of employee contribution up to a maximum of 3% of the employee’s pay. Moody’s also makes additional contributions to the Profit Participation Plan based on year-to-year growth in the Company’s EPS. Effective January 1, 2008, all new hires are automatically enrolled in the Profit Participation Plan when they meet eligibility requirements unless they decline participation. As the Company’s U.S. DBPPs are closed to new entrants effective January 1, 2008, all eligible new hires will instead receive a retirement contribution into the Profit Participation Plan in value similar to the pension benefits. Additionally, effective January 1, 2008, the Company implemented a deferred compensation plan in the U.S., which is unfunded and provides for employee deferral of compensation and Company matching contributions related to compensation in excess of the IRS limitations on benefits and contributions under qualified retirement plans. Total expenses associated with U.S. defined contribution plans were $26.8 million, $18.8 million and $24.5 million in 2014, 2013, and 2012, respectively.

Effective January 1, 2008, Moody’s has designated the Moody’s Stock Fund, an investment option under the Profit Participation Plan, as an Employee Stock Ownership Plan and, as a result, participants in the Moody’s Stock Fund may receive dividends in cash or may reinvest such dividends into the Moody’s Stock Fund. Moody’s paid approximately $0.6 million and $0.5 million in dividends during the years ended December 31, 2014 and 2013, respectively, for the Company’s common shares held by the Moody’s Stock Fund. The Company records the dividends as a reduction of retained earnings in the Consolidated Statements of Shareholders’ Equity (Deficit). The Moody’s Stock Fund held approximately 490,000 and 520,000 shares of Moody’s common stock at December 31, 2014 and 2013, respectively.

International Plans

Certain of the Company’s international operations provide pension benefits to their employees. For defined contribution plans, company contributions are primarily determined as a percentage of employees’ eligible compensation. Moody’s also makes contributions to non-U.S. employees under a profit sharing plan which is based on year-to-year growth in the Company’s diluted EPS. Expenses related to these defined contribution plans for the years ended December 31, 2014, 2013 and 2012 were $30.6 million, $19.7 million and $18.8 million, respectively.

For defined benefit plans, the Company maintains various unfunded DBPPs and retirement health benefit plan for certain of its non-U.S. subsidiaries located in Germany, France and Canada. These unfunded DBPPs are generally based on each eligible employee’s years of credited service and on compensation levels as specified in the plans. The DBPP in Germany was closed to new entrants in 2002. Total defined benefit pension liabilities recorded related to non-U.S. pension plans was $9.8 million, $7.8 million and $7.2 million based on a weighted average discount rate of 2.00%, 3.58% and 3.53% at December 31, 2014, 2013 and 2012, respectively. The pension liabilities recorded as of December 31, 2014 represent the unfunded status of these pension plans and were recognized in the consolidated balance sheet as mostly non-current liabilities. Total pension expense recorded for the years ended December 31, 2014, 2013 and 2012 was approximately $0.6 million for each year. These amounts are not included in the tables above. As of December 31, 2014, the amount of net actuarial losses included in AOCI related to non-U.S. pension plans was $1.8 million net of tax. The Company’s non-U.S. other retirement benefit obligation was also immaterial as of December 31, 2014.

XML

Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income Before Provision for Income Taxes (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Reconciliation Of Statutory Federal Tax Rate [Line Items]
U.S. statutory tax rate	35.00%	35.00%	35.00%
State and local taxes, net of federal tax benefit	360.00%	290.00%	240.00%
Benefit of foreign operations	(740.00%)	(640.00%)	(610.00%)
Legacy tax items	(20.00%)	(60.00%)	(40.00%)
Other	10.00%	(70.00%)	80.00%
Effective tax rate	31.10%	30.20%	31.70%
Income tax paid	$ 369.4	$ 335.7	$ 293.3