OTHER BALANCE SHEET INFORMATION

6 Months Ended

Jun. 30, 2017

OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

NOTE 10. OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

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

		June 30,		December 31,
		2017		2016
Other current assets:
	Prepaid taxes	$	121.9	$	47.0
	Prepaid expenses		61.1		65.7
	Fair value of Bureau van Dijk purchase price hedge		41.2		-
	Other		51.2		28.1
Total other current assets		$	275.4	$	140.8
		June 30,		December 31,
		2017		2016
Other assets:
	Investments in joint ventures	$	80.7	$	26.3
	Deposits for real-estate leases		11.0		10.8
	Indemnification assets related to acquisitions		16.9		16.5
	Mutual funds and fixed deposits		34.4		32.7
	Other		27.6		25.9
Total other assets		$	170.6	$	112.2
		June 30,		December 31,
		2017		2016
Accounts payable and accrued liabilities:
	Salaries and benefits	$	79.1	$	89.3
	Incentive compensation		97.2		151.1
	Accrued settlement charge		-		863.8
	Customer credits, advanced payments and advanced billings		25.1		28.4
	Self-insurance reserves		10.2		11.1
	Dividends		4.4		78.5
	Professional service fees		53.9		40.4
	Interest accrued on debt		51.7		59.2
	Accounts payable		25.0		28.4
	Income taxes		53.6		16.8
	Restructuring		1.4		6.3
	Pension and other retirement employee benefits		7.3		6.1
	Other		81.5		64.9
Total accounts payable and accrued liabilities		$	490.4	$	1,444.3
		June 30,		December 31,
		2017		2016
Other liabilities:
	Pension and other retirement employee benefits	$	259.4	$	264.1
	Deferred rent-non-current portion		102.8		98.3
	Interest accrued on UTPs		39.6		34.1
	Legacy and other tax matters		1.2		1.2
	Other		23.1		27.5
Total other liabilities		$	426.1	$	425.2

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:

		Six Months Ended		Year Ended
		June 30,		December 31,
		2017		2016
Balance January 1,		$	11.1	$	19.7
	Accruals (reversals), net		3.0		12.1
	Payments		(3.9)		(20.7)
Balance		$	10.2	$	11.1

Other Non-Operating Income (Expense):

The following table summarizes the components of other non-operating (expense) income:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
FX gain/(loss)	$	3.8	$	0.8	$	(5.8)	$	4.8
Joint venture income		4.0		3.0		5.0		4.9
Other		0.5		(0.8)		(0.3)		(1.1)
Total	$	8.3	$	3.0	$	(1.1)	$	8.6

Purchase Price Hedge Gain:

The $41.2 million gain reflects unrealized gains on an FX collar hedging strategy to economically hedge the euro denominated purchase price for Bureau van Dijk as more fully discussed in Note 7 to the condensed consolidated financial statements.

CCXI Gain:

CCXI is a Chinese credit rating agency in which Moody’s acquired a 49% stake in 2006. Moody’s accounts for this investment under the equity method of accounting. On March 21, 2017, CCXI, as part of a strategic business realignment, issued additional capital to its majority shareholder in exchange for a ratings business wholly-owned by the majority shareholder and which has the right to rate a different class of debt instrument in the Chinese market. The capital issuance by CCXI in exchange for this ratings business diluted Moody’s ownership interest in CCXI to 30% of a larger business and resulted in a $59.7 million non-cash, non-taxable gain. The issuance of additional capital by CCXI is treated as if Moody’s sold a 19% interest in CCXI at fair value. The fair value of the 19% interest in CCXI that Moody’s hypothetically sold was estimated using both a discounted cash flow methodology and comparable public company multiples. A DCF analysis requires significant estimates, including projections of future operating results and cash flows based on the budgets and forecasts of CCXI, expected long-term growth rates, terminal values, WACC and the effects of external factors and market conditions. Moody’s will continue to account for its 30% interest in CCXI under the equity method of accounting.