DETAIL OF CERTAIN BALANCE SHEET INFORMATION

12 Months Ended

Dec. 31, 2017

DETAIL OF CERTAIN BALANCE SHEET INFORMATION

NOTE 11 OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

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

		December 31,
		2017		2016
Other current assets:
	Prepaid taxes	$	94.9	$	47.0
	Prepaid expenses		107.6		65.7
	Other		47.6		28.1
	Total other current assets	$	250.1	$	140.8

		December 31,
		2017		2016
Other assets:
	Investments in joint ventures	$	99.1	$	26.3
	Deposits for real-estate leases		12.3		10.8
	Indemnification assets related to acquisitions		17.0		16.5
	Mutual funds and fixed deposits		22.1		32.7
	Other		9.4		25.9
	Total other assets	$	159.9	$	112.2

		December 31,
		2017		2016
Accounts payable and accrued liabilities:
	Salaries and benefits	$	129.6	$	89.3
	Incentive compensation		246.7		151.1
	Accrued settlement charge		-		863.8
	Customer credits, advanced payments and advanced billings		22.2		28.4
	Self-insurance reserves		8.1		11.1
	Dividends		6.2		78.5
	Professional service fees		47.1		40.4
	Interest accrued on debt		73.9		59.2
	Accounts payable		21.8		28.4
	Income taxes (see Note 15)		79.2		16.8
	Restructuring (see Note 9)		0.4		6.3
	Pension and other retirement employee benefits (see Note 13)		5.9		6.1
	Accrued royalties⁽¹⁾		26.4		1.8
	Other		82.8		63.1
	Total accounts payable and accrued liabilities	$	750.3	$	1,444.3

⁽¹⁾Primarily relates to fees due to Bureau van Dijk's data providers

		December 31,
		2017		2016
Other liabilities:
	Pension and other retirement employee benefits (see Note 13)	$	244.5	$	264.1
	Deferred rent-non-current portion		103.1		98.3
	Interest accrued on UTPs		54.7		34.1
	Legacy and other tax matters		1.3		1.2
	Income tax liability - non current*		232.2		-
	Other		28.2		27.5
Total other liabilities		$	664.0	$	425.2

* The 2017 amount primarily reflects the transition tax pursuant to the Tax Act, which was enacted into law in December 2017. See Note 15 for further information.

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,
		2017		2016		2015
Balance January 1,		$	11.1	$	19.7	$	21.5
	Accruals (reversals), net		9.6		12.1		22.2
	Payments		(12.6)		(20.7)		(24.0)
Balance December 31,		$	8.1	$	11.1	$	19.7

Purchase Price Hedge Gain:

There was a $111.1 million realized gain reflecting gains on an FX collar and foreign exchange forwards to economically hedge the euro denominated purchase price for Bureau van Dijk as more fully discussed in Note 5 to the condensed consolidated financial statements.

Settlement Charge

There was a charge of $863.8 million recorded in the fourth quarter of 2016 related to an agreement entered into on January 13, 2017 with the U.S. Department of Justice and the attorneys general of 21 U.S. states and the District of Columbia to resolve pending and potential civil claims related to credit ratings that MIS assigned to certain structured finance instruments in the financial crisis era.

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.