Form | 10-Q |
☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3998945 | ||||||||||
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.01 per share | MCO | New York Stock Exchange | ||||||||||||
1.75% Senior Notes Due 2027 | MCO 27 | New York Stock Exchange | ||||||||||||
0.950% Senior Notes Due 2030 | MCO 30 | New York Stock Exchange |
Large Accelerated Filer | ☑ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Shares Outstanding at | ||
183.5 million |
MOODY’S CORPORATION INDEX TO FORM 10-Q | ||||||||
Page(s) | ||||||||
3-6 | ||||||||
Consolidated Statements of Operations (Unaudited) for the Three Months Ended and Six Months Ended | ||||||||
Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended and Six Months Ended | ||||||||
Consolidated Statements of Cash Flows (Unaudited) for the | ||||||||
Consolidated Statements of Shareholders’ Equity (Unaudited) for the Three Months Ended and Six Months Ended | ||||||||
TERM | DEFINITION | ||||
Acquisition-Related Intangible Amortization Expense | Amortization of definite-lived intangible assets acquired by the Company from all business combination transactions | ||||
Adjusted Diluted EPS | Diluted EPS excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures” | ||||
Adjusted Net Income | Net Income excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures” | ||||
Adjusted Operating Income | Operating income excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures” | ||||
Adjusted Operating Margin | Adjusted Operating Income divided by revenue | ||||
Americas | Represents countries within North and South America, excluding the U.S. | ||||
AOCI(L) | Accumulated other comprehensive income/loss; a separate component of shareholders’ equity | ||||
ARR | Annualized Recurring Revenue; a supplemental performance metric to provide additional insight on the estimated value of MA's recurring revenue contracts at a given point in time, excluding the impact of FX and contracts related to acquisitions | ||||
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 Australia and countries in Asia including but not limited to: China, India, Indonesia, Japan, Republic of South Korea, Malaysia, Singapore, Sri Lanka and Thailand | ||||
ASR | Accelerated Share Repurchase | ||||
ASU | The FASB Accounting Standards Update to the ASC. 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 | ||||
BitSight | A provider that helps global market participants understand cyber risk through ratings, analytics, and performance management tools | ||||
Board | The board of directors of the Company | ||||
BPS | Basis points | ||||
CCXI | China Cheng Xin International Credit Rating Co. Ltd.; China’s first and largest domestic credit rating agency approved by the People’s Bank of China; currently Moody’s owns 30% of CCXI | ||||
CDP | Carbon Disclosure Project; an international nonprofit organization that helps companies, cities, states and regions manage their environmental impact through a global disclosure system | ||||
CFG | Corporate finance group; an LOB of MIS | ||||
CMBS | Commercial mortgage-backed securities; an asset class within SFG | ||||
COLI | Corporate-Owned Life Insurance | ||||
Common Stock | The Company’s common stock | ||||
Company | Moody’s Corporation and its subsidiaries; MCO; Moody’s | ||||
COVID-19 | An outbreak of a novel strain of coronavirus resulting in an international public health crisis and a global pandemic | ||||
CP | Commercial Paper | ||||
CP Program | A program entered into on August 3, 2016 allowing the Company to privately place CP up to a maximum of $1 billion for which the maturity may not exceed 397 days from the date of issue, and which is backstopped by the 2021 Facility | ||||
Data and Information (D&I) | LOB within MA which provides vast data sets on companies and securities via data feeds and data applications products | ||||
Decision Solutions (DS) | LOB within MA that provides | ||||
EMEA | Represents countries within Europe, the Middle East and Africa | ||||
EPS | Earnings per share | ||||
ESG | Environmental, Social, and Governance | ||||
TERM | DEFINITION | ||||
ESTR | Euro Short-Term Rate | ||||
ETR | Effective tax rate | ||||
EU | European Union | ||||
EURIBOR | The Euro Interbank Offered Rate | ||||
Excess Tax Benefits | 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 the option or restricted share is expensed under GAAP | ||||
Exchange Act | The Securities Exchange Act of 1934, as amended | ||||
External Revenue | Revenue excluding any intersegment amounts | ||||
FASB | Financial Accounting Standards Board | ||||
FIG | Financial institutions group; an LOB of MIS | ||||
Free Cash Flow | Net cash provided by operating activities less cash paid for capital additions | ||||
FX | Foreign exchange | ||||
GAAP | U.S. Generally Accepted Accounting Principles | ||||
GBP | British pounds | ||||
GCR | Global Credit Rating Company Limited; a credit rating agency in Africa with operations spanning the continent, including in South Africa, Nigeria, Senegal, Kenya, and Mauritius | ||||
GDP | Gross domestic product | ||||
GRI | Global Reporting Initiative; an international independent standards organization that helps organizations understand and disclose their impact on climate change, human rights and corruption | ||||
ICRA | ICRA Limited; a provider of credit ratings and research in India | ||||
kompany | 360kompany AG (kompany); a Vienna, Austria-based platform for business verification and Know Your Customer (KYC) technology solutions, acquired by the Company in February 2022 | ||||
KYC | Know-your-customer | ||||
LIBOR | London Interbank Offered Rate | ||||
LOB | Line of business | ||||
MA | Moody’s Analytics - a reportable segment of MCO which provides a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets; consists of three LOBs - Decision Solutions; Research and Insights; and Data and Information | ||||
MAKS | Moody’s Analytics Knowledge Services; formerly known as Copal Amba; provided offshore research and analytic services to the global financial and corporate sectors; business was divested in the fourth quarter of 2019 and was formerly a reporting unit within the MA reportable segment | ||||
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; consists of five LOBs - SFG; CFG; FIG; PPIF; and MIS Other | ||||
MIS Other | Consists of financial instruments pricing services in the Asia-Pacific region, ICRA non-ratings revenue, and revenue from professional services. These businesses are components of MIS; MIS Other is an LOB of MIS | ||||
Moody’s | Moody’s Corporation and its subsidiaries; MCO; the Company | ||||
MSS | Moody's Shared Services; primarily consists of information technology and support staff such as finance, human resources and legal that support both MA and MIS | ||||
Net Income | Net income attributable to Moody’s Corporation, which excludes net income from consolidated noncontrolling interests belonging to the minority interest holder | ||||
NM | Percentage change is not meaningful | ||||
Non-GAAP | A financial measure not in accordance with GAAP; these 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 to provide greater transparency to investors of supplemental information used by management in its financial and operational decision making |
TERM | DEFINITION | ||||
NRSRO | Nationally Recognized Statistical Rating Organization, which is a credit rating agency registered with the SEC | ||||
Operating segment | Term defined in the ASC relating to segment reporting; the ASC defines an operating segment as a component of a business entity that has each of the three following characteristics: i) the component engages in business activities from which it may recognize revenue and incur expenses; ii) the operating results of the component are regularly reviewed by the entity’s chief operating decision maker; and iii) discrete financial information about the component is available | ||||
PPIF | Public, project and infrastructure finance; an LOB of MIS | ||||
Recurring Revenue | For MA, represents subscription-based revenue and software maintenance revenue. For MIS, represents recurring monitoring fees 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. For MIS Other, represents subscription-based revenue | ||||
Reporting unit | The level at which Moody’s evaluates its goodwill for impairment under U.S. GAAP; defined as an operating segment or one level below an operating segment | ||||
Research and Insights (R&I) | LOB within MA that provides models, scores, expert insights and commentary. This LOB includes credit research; credit models and analytics; | ||||
RMBS | Residential mortgage-backed securities; an asset class within SFG | ||||
RMS | A global provider of climate and natural disaster risk modeling and analytics; acquired by the Company in September 2021 | ||||
SaaS | Software-as-a-Service | ||||
SASB | Sustainability Accounting Standards Board | ||||
SEC | U.S. Securities and Exchange Commission | ||||
SFG | Structured finance group; an LOB of MIS | ||||
SG&A | Selling, general and administrative expenses | ||||
SOFR | Secured Overnight Financing Rate | ||||
Tax Act | The “Tax Cuts and Jobs Act” enacted into U.S. law on December 22, 2017 which significantly amends the tax code in the U.S. | ||||
TCFD | Task Force on Climate-Related Financial Disclosures | ||||
Total Debt | All indebtedness of the Company as reflected on the consolidated balance sheets | ||||
Transaction Revenue | For MA, represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, and training and certification services. For MIS (excluding MIS Other), represents the initial rating of a new debt issuance as well as other one-time fees. For MIS Other, represents revenue from professional services. | ||||
U.K. | United Kingdom | ||||
U.S. | United States | ||||
USD | U.S. dollar | ||||
UTPs | Uncertain tax positions | ||||
WEF | World Economic Forum; an independent international organization for public-private cooperation that engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas | ||||
2001 Plan | 2001 Moody's Corporation Key Employees' Stock Incentive Plan, as amended and restated December 20, 2022 | ||||
2022 - 2023 Geolocation Restructuring Program | Restructuring program approved by the chief executive officer of Moody’s on June 30, 2022 relating to the Company's post-COVID-19 geolocation strategy | ||||
2013 Senior Notes due 2024 | Principal amount of $500 million, 4.875% senior unsecured notes due in February 2024 | ||||
2014 Senior Notes due 2044 | Principal amount of $600 million, 5.25% senior unsecured notes due in July 2044 | ||||
2015 Senior Notes due 2027 | Principal amount of €500 million, 1.75% senior unsecured notes due in March 2027 | ||||
2017 Senior Notes due 2028 | Principal amount of $500 million, 3.250% senior unsecured notes due January 15, 2028 | ||||
2018 Senior Notes due 2029 | Principal amount of $400 million, 4.25% senior unsecured notes due February 1, 2029 | ||||
2018 Senior Notes due 2048 | Principal amount of $400 million, 4.875% senior unsecured notes due December 17, 2048 |
TERM | DEFINITION | ||||
2019 Senior Notes due 2030 | Principal amount of €750 million, 0.950% senior unsecured notes due February 25, 2030 | ||||
2020 Senior Notes due 2025 | Principal amount of $700 million, 3.75% senior unsecured notes due March 24, 2025 | ||||
2020 Senior Notes due 2050 | Principal amount of $300 million, 3.25% senior unsecured notes due May 20, 2050 | ||||
2020 Senior Notes due 2060 | Principal amount of $500 million, 2.55% senior unsecured notes due August 18, 2060 |
2021 Facility | Five-year unsecured revolving credit facility, with capacity to borrow up to $1.25 billion; backstops CP issued under the CP Program | ||||
2021 Senior Notes due 2031 | Principal amount of $600 million, 2.00% senior unsecured notes due August 19, 2031 | ||||
2021 Senior Notes due 2041 | Principal amount of $600 million, 2.75% senior unsecured notes due August 19, 2041 | ||||
2021 Senior Notes due 2061 | Principal amount of $500 million, 3.10% senior unsecured notes due November 15, 2061 | ||||
2022 Senior Notes due 2052 | Principal amount of $500 million, 3.75% senior unsecured notes due February 25, 2052 | ||||
2022 Senior Notes due 2032 | Principal amount of $500 million, 4.25% senior unsecured notes due January 15, 2032 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenue | $ | 1,470 | $ | 1,522 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Operating | 428 | 417 | |||||||||||||||||||||
Selling, general, and administrative | 386 | 371 | |||||||||||||||||||||
Depreciation and amortization | 88 | 78 | |||||||||||||||||||||
Restructuring | 14 | — | |||||||||||||||||||||
Total expenses | 916 | 866 | |||||||||||||||||||||
Operating income | 554 | 656 | |||||||||||||||||||||
Non-operating (expense) income, net | |||||||||||||||||||||||
Interest expense, net | (48) | (53) | |||||||||||||||||||||
Other non-operating income (expense), net | — | 6 | |||||||||||||||||||||
Total non-operating (expense) income, net | (48) | (47) | |||||||||||||||||||||
Income before provision for income taxes | 506 | 609 | |||||||||||||||||||||
Provision for income taxes | 5 | 111 | |||||||||||||||||||||
Net income attributable to Moody's | $ | 501 | $ | 498 | |||||||||||||||||||
Earnings per share attributable to Moody's common shareholders | |||||||||||||||||||||||
Basic | $ | 2.73 | $ | 2.69 | |||||||||||||||||||
Diluted | $ | 2.72 | $ | 2.68 | |||||||||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||||||||
Basic | 183.3 | 185.1 | |||||||||||||||||||||
Diluted | 184.1 | 186.1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | $ | 1,494 | $ | 1,381 | $ | 2,964 | $ | 2,903 | |||||||||||||||
Expenses | |||||||||||||||||||||||
Operating | 426 | 393 | 854 | 810 | |||||||||||||||||||
Selling, general, and administrative | 415 | 368 | 801 | 739 | |||||||||||||||||||
Depreciation and amortization | 93 | 81 | 181 | 159 | |||||||||||||||||||
Restructuring | 10 | 31 | 24 | 31 | |||||||||||||||||||
Total expenses | 944 | 873 | 1,860 | 1,739 | |||||||||||||||||||
Operating income | 550 | 508 | 1,104 | 1,164 | |||||||||||||||||||
Non-operating (expense) income, net | |||||||||||||||||||||||
Interest expense, net | (71) | (55) | (119) | (108) | |||||||||||||||||||
Other non-operating income (expense), net | 13 | (10) | 13 | (4) | |||||||||||||||||||
Total non-operating (expense) income, net | (58) | (65) | (106) | (112) | |||||||||||||||||||
Income before provision for income taxes | 492 | 443 | 998 | 1,052 | |||||||||||||||||||
Provision for income taxes | 115 | 116 | 120 | 227 | |||||||||||||||||||
Net income attributable to Moody's | $ | 377 | $ | 327 | $ | 878 | $ | 825 | |||||||||||||||
Earnings per share attributable to Moody's common shareholders | |||||||||||||||||||||||
Basic | $ | 2.05 | $ | 1.78 | $ | 4.79 | $ | 4.47 | |||||||||||||||
Diluted | $ | 2.05 | $ | 1.77 | $ | 4.77 | $ | 4.45 | |||||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||||||||
Basic | 183.5 | 184.1 | 183.4 | 184.6 | |||||||||||||||||||
Diluted | 184.1 | 184.9 | 184.1 | 185.4 |
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||
Pre-tax amounts | Tax amounts | After-tax amounts | Pre-tax amounts | Tax amounts | After-tax amounts | ||||||||||||||||||||||||||||||
Net Income | $ | 377 | $ | 327 | |||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||||||||||||||||||
Foreign Currency Adjustments: | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net | $ | 51 | $ | — | 51 | $ | (340) | $ | 3 | (337) | |||||||||||||||||||||||||
Foreign currency translation adjustments - reclassification of losses included in net income | — | — | — | 20 | — | 20 | |||||||||||||||||||||||||||||
Net (losses) gains on net investment hedges | (37) | 9 | (28) | 241 | (60) | 181 | |||||||||||||||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||||||||||||||||||||
Reclassification of losses included in net income | — | (1) | (1) | — | — | — | |||||||||||||||||||||||||||||
Pension and Other Retirement Benefits: | |||||||||||||||||||||||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | (2) | 1 | (1) | 1 | — | 1 | |||||||||||||||||||||||||||||
Net actuarial gains and prior service costs | — | — | — | 6 | (2) | 4 | |||||||||||||||||||||||||||||
Total other comprehensive income (loss) | $ | 12 | $ | 9 | $ | 21 | $ | (72) | $ | (59) | $ | (131) | |||||||||||||||||||||||
Comprehensive income | 398 | 196 | |||||||||||||||||||||||||||||||||
Less: comprehensive income (loss) attributable to noncontrolling interests | 2 | (3) | |||||||||||||||||||||||||||||||||
Comprehensive Income Attributable to Moody's | $ | 396 | $ | 199 |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax amounts | Tax amounts | After-tax amounts | 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 | Net Income | $ | 501 | $ | 498 | Net Income | $ | 878 | $ | 825 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss): | Other Comprehensive Income (Loss): | Other Comprehensive Income (Loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Adjustments: | Foreign Currency Adjustments: | Foreign Currency Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net | Foreign currency translation adjustments, net | $ | 109 | $ | (2) | 107 | $ | (108) | $ | 1 | (107) | Foreign currency translation adjustments, net | $ | 160 | $ | (2) | 158 | $ | (448) | $ | 4 | (444) | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments - reclassification of losses included in net income | Foreign currency translation adjustments - reclassification of losses included in net income | — | — | — | 20 | — | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (losses) gains on net investment hedges | Net (losses) gains on net investment hedges | (76) | 19 | (57) | 64 | (17) | 47 | Net (losses) gains on net investment hedges | (113) | 28 | (85) | 305 | (77) | 228 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow Hedges: | Cash Flow Hedges: | Cash Flow Hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of losses included in net income | Reclassification of losses included in net income | 1 | — | 1 | 1 | — | 1 | Reclassification of losses included in net income | 1 | (1) | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Retirement Benefits: | Pension and Other Retirement Benefits: | Pension and Other Retirement Benefits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial losses and prior service costs | — | — | — | (3) | 1 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | Amortization of actuarial losses and prior service costs included in net income | (2) | 1 | (1) | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial gains and prior service costs | Net actuarial gains and prior service costs | — | — | — | 3 | (1) | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | $ | 34 | $ | 17 | $ | 51 | $ | (46) | $ | (15) | $ | (61) | Total other comprehensive income (loss) | $ | 46 | $ | 26 | $ | 72 | $ | (118) | $ | (74) | $ | (192) | ||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | 552 | 437 | Comprehensive income | 950 | 633 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | Less: comprehensive loss attributable to noncontrolling interests | (3) | — | Less: comprehensive loss attributable to noncontrolling interests | (1) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income Attributable to Moody's | Comprehensive Income Attributable to Moody's | $ | 555 | $ | 437 | Comprehensive Income Attributable to Moody's | $ | 951 | $ | 636 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||||||
Current assets: | Current assets: | Current assets: | ||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 2,119 | $ | 1,769 | Cash and cash equivalents | $ | 2,278 | $ | 1,769 | ||||||||||||
Short-term investments | Short-term investments | 78 | 90 | Short-term investments | 57 | 90 | ||||||||||||||||
Accounts receivable, net of allowance for credit losses of $38 in 2023 and $40 in 2022 | 1,712 | 1,652 | ||||||||||||||||||||
Accounts receivable, net of allowance for credit losses of $33 in 2023 and $40 in 2022 | Accounts receivable, net of allowance for credit losses of $33 in 2023 and $40 in 2022 | 1,542 | 1,652 | |||||||||||||||||||
Other current assets | Other current assets | 517 | 583 | Other current assets | 513 | 583 | ||||||||||||||||
Total current assets | Total current assets | 4,426 | 4,094 | Total current assets | 4,390 | 4,094 | ||||||||||||||||
Property and equipment, net of accumulated depreciation of $1,153 in 2023 and $1,123 in 2022 | 525 | 502 | ||||||||||||||||||||
Property and equipment, net of accumulated depreciation of $1,195 in 2023 and $1,123 in 2022 | Property and equipment, net of accumulated depreciation of $1,195 in 2023 and $1,123 in 2022 | 541 | 502 | |||||||||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 332 | 346 | Operating lease right-of-use assets | 330 | 346 | ||||||||||||||||
Goodwill | Goodwill | 5,892 | 5,839 | Goodwill | 5,926 | 5,839 | ||||||||||||||||
Intangible assets, net | Intangible assets, net | 2,177 | 2,210 | Intangible assets, net | 2,138 | 2,210 | ||||||||||||||||
Deferred tax assets, net | Deferred tax assets, net | 268 | 266 | Deferred tax assets, net | 265 | 266 | ||||||||||||||||
Other assets | Other assets | 1,099 | 1,092 | Other assets | 1,101 | 1,092 | ||||||||||||||||
Total assets | Total assets | $ | 14,719 | $ | 14,349 | Total assets | $ | 14,691 | $ | 14,349 | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Current liabilities: | Current liabilities: | Current liabilities: | ||||||||||||||||||||
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | $ | 805 | $ | 1,011 | Accounts payable and accrued liabilities | $ | 877 | $ | 1,011 | ||||||||||||
Current portion of operating lease liabilities | Current portion of operating lease liabilities | 106 | 106 | Current portion of operating lease liabilities | 105 | 106 | ||||||||||||||||
Current portion of long-term debt | Current portion of long-term debt | 499 | — | Current portion of long-term debt | 300 | — | ||||||||||||||||
Deferred revenue | Deferred revenue | 1,578 | 1,258 | Deferred revenue | 1,385 | 1,258 | ||||||||||||||||
Total current liabilities | Total current liabilities | 2,988 | 2,375 | Total current liabilities | 2,667 | 2,375 | ||||||||||||||||
Non-current portion of deferred revenue | Non-current portion of deferred revenue | 70 | 75 | Non-current portion of deferred revenue | 67 | 75 | ||||||||||||||||
Long-term debt | Long-term debt | 6,963 | 7,389 | Long-term debt | 6,923 | 7,389 | ||||||||||||||||
Deferred tax liabilities, net | Deferred tax liabilities, net | 476 | 457 | Deferred tax liabilities, net | 485 | 457 | ||||||||||||||||
Uncertain tax positions | Uncertain tax positions | 205 | 322 | Uncertain tax positions | 204 | 322 | ||||||||||||||||
Operating lease liabilities | Operating lease liabilities | 349 | 368 | Operating lease liabilities | 344 | 368 | ||||||||||||||||
Other liabilities | Other liabilities | 610 | 674 | Other liabilities | 689 | 674 | ||||||||||||||||
Total liabilities | Total liabilities | 11,661 | 11,660 | Total liabilities | 11,379 | 11,660 | ||||||||||||||||
Contingencies (Note 16) | Contingencies (Note 16) | Contingencies (Note 16) | ||||||||||||||||||||
Shareholders' equity: | Shareholders' equity: | Shareholders' equity: | ||||||||||||||||||||
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | — | — | Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||||||||||||
Series common stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | Series common stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | — | — | Series common stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||||||||||||
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 342,902,272 shares issued at March 31, 2023 and December 31, 2022, respectively | 3 | 3 | ||||||||||||||||||||
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 342,902,272 shares issued at June 30, 2023 and December 31, 2022, respectively | Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 342,902,272 shares issued at June 30, 2023 and December 31, 2022, respectively | 3 | 3 | |||||||||||||||||||
Capital surplus | Capital surplus | 1,068 | 1,054 | Capital surplus | 1,124 | 1,054 | ||||||||||||||||
Retained earnings | Retained earnings | 13,979 | 13,618 | Retained earnings | 14,213 | 13,618 | ||||||||||||||||
Treasury stock, at cost; 159,404,478 and 159,702,362 shares of common stock at March 31, 2023 and December 31, 2022, respectively | (11,570) | (11,513) | ||||||||||||||||||||
Treasury stock, at cost; 159,444,702 and 159,702,362 shares of common stock at June 30, 2023 and December 31, 2022, respectively | Treasury stock, at cost; 159,444,702 and 159,702,362 shares of common stock at June 30, 2023 and December 31, 2022, respectively | (11,626) | (11,513) | |||||||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (589) | (643) | Accumulated other comprehensive loss | (570) | (643) | ||||||||||||||||
Total Moody's shareholders' equity | Total Moody's shareholders' equity | 2,891 | 2,519 | Total Moody's shareholders' equity | 3,144 | 2,519 | ||||||||||||||||
Noncontrolling interests | Noncontrolling interests | 167 | 170 | Noncontrolling interests | 168 | 170 | ||||||||||||||||
Total shareholders' equity | Total shareholders' equity | 3,058 | 2,689 | Total shareholders' equity | 3,312 | 2,689 | ||||||||||||||||
Total liabilities, noncontrolling interests, and shareholders' equity | Total liabilities, noncontrolling interests, and shareholders' equity | $ | 14,719 | $ | 14,349 | Total liabilities, noncontrolling interests, and shareholders' equity | $ | 14,691 | $ | 14,349 |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Cash flows from operating activities | Cash flows from operating activities | Cash flows from operating activities | ||||||||||||||||||||
Net income | Net income | $ | 501 | $ | 498 | Net income | $ | 878 | $ | 825 | ||||||||||||
Reconciliation of net income to net cash provided by operating activities: | Reconciliation of net income to net cash provided by operating activities: | Reconciliation of net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 88 | 78 | Depreciation and amortization | 181 | 159 | ||||||||||||||||
Stock-based compensation | Stock-based compensation | 47 | 46 | Stock-based compensation | 97 | 84 | ||||||||||||||||
Deferred income taxes | Deferred income taxes | — | 30 | Deferred income taxes | 21 | 65 | ||||||||||||||||
FX translation losses reclassified to net income | FX translation losses reclassified to net income | — | 20 | |||||||||||||||||||
Changes in assets and liabilities: | Changes in assets and liabilities: | Changes in assets and liabilities: | ||||||||||||||||||||
Accounts receivable | Accounts receivable | (51) | (117) | Accounts receivable | 121 | 63 | ||||||||||||||||
Other current assets | Other current assets | 74 | (11) | Other current assets | 78 | (172) | ||||||||||||||||
Other assets | Other assets | (21) | (21) | Other assets | (24) | (12) | ||||||||||||||||
Lease obligations | Lease obligations | (5) | (2) | Lease obligations | (9) | (7) | ||||||||||||||||
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | (178) | (296) | Accounts payable and accrued liabilities | (86) | (276) | ||||||||||||||||
Deferred revenue | Deferred revenue | 296 | 290 | Deferred revenue | 97 | 92 | ||||||||||||||||
Uncertain tax positions | Uncertain tax positions | (119) | (18) | Uncertain tax positions | (120) | (44) | ||||||||||||||||
Other liabilities | Other liabilities | (24) | (7) | Other liabilities | (22) | (36) | ||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 608 | 470 | Net cash provided by operating activities | 1,212 | 761 | ||||||||||||||||
Cash flows from investing activities | Cash flows from investing activities | Cash flows from investing activities | ||||||||||||||||||||
Capital additions | Capital additions | (73) | (59) | Capital additions | (127) | (133) | ||||||||||||||||
Purchases of investments | Purchases of investments | (45) | (46) | Purchases of investments | (55) | (182) | ||||||||||||||||
Sales and maturities of investments | Sales and maturities of investments | 55 | 27 | Sales and maturities of investments | 82 | 99 | ||||||||||||||||
Receipts from settlements of net investment hedges | Receipts from settlements of net investment hedges | — | 136 | |||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | Cash paid for acquisitions, net of cash acquired | — | (83) | Cash paid for acquisitions, net of cash acquired | (3) | (92) | ||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (63) | (161) | Net cash used in investing activities | (103) | (172) | ||||||||||||||||
Cash flows from financing activities | Cash flows from financing activities | Cash flows from financing activities | ||||||||||||||||||||
Repayment of notes | Repayment of notes | (200) | — | |||||||||||||||||||
Proceeds from stock-based compensation plans | Proceeds from stock-based compensation plans | 11 | 8 | Proceeds from stock-based compensation plans | 31 | 16 | ||||||||||||||||
Treasury shares | Treasury shares | (41) | (560) | Treasury shares | (108) | (871) | ||||||||||||||||
Cash paid for ASR contract relating to shares retained by counterparty until final settlement | — | (98) | ||||||||||||||||||||
Repurchase of shares related to stock-based compensation | Repurchase of shares related to stock-based compensation | (45) | (58) | Repurchase of shares related to stock-based compensation | (64) | (83) | ||||||||||||||||
Dividends | Dividends | (141) | (130) | Dividends | (283) | (259) | ||||||||||||||||
Dividends to noncontrolling interest | Dividends to noncontrolling interest | — | (1) | |||||||||||||||||||
Issuance of notes | Issuance of notes | — | 491 | Issuance of notes | — | 491 | ||||||||||||||||
Debt issuance costs and related fees | Debt issuance costs and related fees | — | (5) | Debt issuance costs and related fees | — | (5) | ||||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | (216) | (352) | Net cash used in financing activities | (624) | (712) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | Effect of exchange rate changes on cash and cash equivalents | 21 | (18) | Effect of exchange rate changes on cash and cash equivalents | 24 | (71) | ||||||||||||||||
Increase (decrease) in cash and cash equivalents | Increase (decrease) in cash and cash equivalents | 350 | (61) | Increase (decrease) in cash and cash equivalents | 509 | (194) | ||||||||||||||||
Cash and cash equivalents, beginning of period | Cash and cash equivalents, beginning of period | 1,769 | 1,811 | Cash and cash equivalents, beginning of period | 1,769 | 1,811 | ||||||||||||||||
Cash and cash equivalents, end of period | Cash and cash equivalents, end of period | $ | 2,119 | $ | 1,750 | Cash and cash equivalents, end of period | $ | 2,278 | $ | 1,617 |
Shareholders of Moody's Corporation | Shareholders of Moody's Corporation | Shareholders of Moody's Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 342.9 | $ | 3 | $ | 885 | $ | 12,762 | (157.3) | $ | (10,513) | $ | (410) | $ | 2,727 | $ | 189 | $ | 2,916 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | Balance at March 31, 2022 | 342.9 | $ | 3 | $ | 826 | $ | 13,132 | (158.4) | $ | (11,096) | $ | (471) | $ | 2,394 | $ | 188 | $ | 2,582 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 498 | 498 | — | 498 | Net income | 327 | 327 | — | 327 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.70 per share) | Dividends ($0.70 per share) | (128) | (128) | (1) | (129) | Dividends ($0.70 per share) | (131) | (131) | — | (131) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | 46 | 46 | 46 | Stock-based compensation | 38 | 38 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation plans at average cost, net | Shares issued for stock-based compensation plans at average cost, net | (42) | 0.5 | (32) | (74) | (74) | Shares issued for stock-based compensation plans at average cost, net | 6 | — | 1 | 7 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued as consideration to acquire kompany(1) | 35 | 0.1 | 9 | 44 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | Treasury shares repurchased | (1.7) | (560) | (560) | (560) | Treasury shares repurchased | 95 | (1.0) | (308) | (213) | (213) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchase pending final settlement | (98) | (98) | (98) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $16 million) | (60) | (60) | — | (60) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial gains and prior service costs (net of tax of $1 million) | (2) | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain on cash flow hedges | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 342.9 | $ | 3 | $ | 826 | $ | 13,132 | (158.4) | $ | (11,096) | $ | (471) | $ | 2,394 | $ | 188 | $ | 2,582 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $57 million) | Currency translation adjustment, net of net investment hedge activity (net of tax of $57 million) | (133) | (133) | (3) | (136) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial gains and prior service costs (net of tax of $2 million) | Net actuarial gains and prior service costs (net of tax of $2 million) | 4 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs and actuarial losses | Amortization of prior service costs and actuarial losses | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | 342.9 | $ | 3 | $ | 965 | $ | 13,328 | (159.4) | $ | (11,403) | $ | (599) | $ | 2,294 | $ | 185 | $ | 2,479 |
Shareholders of Moody's Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 342.9 | $ | 3 | $ | 885 | $ | 12,762 | (157.3) | $ | (10,513) | $ | (410) | $ | 2,727 | $ | 189 | $ | 2,916 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 825 | 825 | — | 825 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($1.40 per share) | (259) | (259) | (1) | (260) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 84 | 84 | 84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation plans at average cost, net | (36) | 0.5 | (31) | (67) | (67) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued as consideration to acquire kompany(1) | 35 | 0.1 | 9 | 44 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | (3) | (2.7) | (868) | (871) | (871) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $73 million) | (193) | (193) | (3) | (196) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial losses and prior service costs (net of tax of $1 million) | 2 | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs and actuarial losses | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on cash flow hedges | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 342.9 | $ | 3 | $ | 965 | $ | 13,328 | (159.4) | $ | (11,403) | $ | (599) | $ | 2,294 | $ | 185 | $ | 2,479 |
Shareholders of Moody's Corporation | Shareholders of Moody's Corporation | Shareholders of Moody's Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 342.9 | $ | 3 | $ | 1,054 | $ | 13,618 | (159.7) | $ | (11,513) | $ | (643) | $ | 2,519 | $ | 170 | $ | 2,689 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | Balance at March 31, 2023 | 342.9 | $ | 3 | $ | 1,068 | $ | 13,979 | (159.4) | $ | (11,570) | $ | (589) | $ | 2,891 | $ | 167 | $ | 3,058 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 501 | 501 | — | 501 | Net income | 377 | 377 | — | 377 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.77 per share) | Dividends ($0.77 per share) | (140) | (140) | — | (140) | Dividends ($0.77 per share) | (143) | (143) | (1) | (144) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | 47 | 47 | 47 | Stock-based compensation | 50 | 50 | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation plans at average cost, net | Shares issued for stock-based compensation plans at average cost, net | (33) | 0.4 | (15) | (48) | (48) | Shares issued for stock-based compensation plans at average cost, net | 6 | 0.3 | 11 | 17 | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | Treasury shares repurchased | (0.3) | (67) | (67) | (67) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $9 million) | Currency translation adjustment, net of net investment hedge activity (net of tax of $9 million) | 21 | 21 | 2 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | — | (0.1) | (42) | (42) | (42) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $17 million) | 53 | 53 | (3) | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on cash flow hedges | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 342.9 | $ | 3 | $ | 1,068 | $ | 13,979 | (159.4) | $ | (11,570) | $ | (589) | $ | 2,891 | $ | 167 | $ | 3,058 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs and actuarial losses | Amortization of prior service costs and actuarial losses | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on cash flow hedges (net of tax of $1 million) | Net realized and unrealized gain on cash flow hedges (net of tax of $1 million) | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | Balance at June 30, 2023 | 342.9 | $ | 3 | $ | 1,124 | $ | 14,213 | (159.4) | $ | (11,626) | $ | (570) | $ | 3,144 | $ | 168 | $ | 3,312 |
Shareholders of Moody's Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody's Shareholders' Equity | Non- Controlling Interests | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 342.9 | $ | 3 | $ | 1,054 | $ | 13,618 | (159.7) | $ | (11,513) | $ | (643) | $ | 2,519 | $ | 170 | $ | 2,689 | |||||||||||||||||||||||||||||||||||||||||
Net income | 878 | 878 | — | 878 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($1.54 per share) | (283) | (283) | (1) | (284) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 97 | 97 | 97 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation plans at average cost, net | (27) | 0.7 | (4) | (31) | (31) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | — | (0.4) | (109) | (109) | (109) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax of $26 million) | 74 | 74 | (1) | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs and actuarial losses (net of tax of $1 million) | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | 342.9 | $ | 3 | $ | 1,124 | $ | 14,213 | (159.4) | $ | (11,626) | $ | (570) | $ | 3,144 | $ | 168 | $ | 3,312 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||
MA: | MA: | MA: | ||||||||||||||||||||||||||||||||||||||||||||
Decision Solutions | $ | 354 | $ | 334 | ||||||||||||||||||||||||||||||||||||||||||
Research and Insights | 195 | 183 | ||||||||||||||||||||||||||||||||||||||||||||
Data and Information | 188 | 178 | ||||||||||||||||||||||||||||||||||||||||||||
Decision Solutions (DS) | Decision Solutions (DS) | |||||||||||||||||||||||||||||||||||||||||||||
Banking | Banking | $ | 123 | $ | 110 | $ | 254 | $ | 240 | |||||||||||||||||||||||||||||||||||||
Insurance | Insurance | 133 | 119 | 266 | 241 | |||||||||||||||||||||||||||||||||||||||||
KYC | KYC | 78 | 65 | 148 | 127 | |||||||||||||||||||||||||||||||||||||||||
Total DS | Total DS | 334 | 294 | 668 | 608 | |||||||||||||||||||||||||||||||||||||||||
Research and Insights (R&I) | Research and Insights (R&I) | 217 | 203 | 432 | 406 | |||||||||||||||||||||||||||||||||||||||||
Data and Information (D&I) | Data and Information (D&I) | 196 | 178 | 384 | 356 | |||||||||||||||||||||||||||||||||||||||||
Total external revenue | Total external revenue | 737 | 695 | Total external revenue | 747 | 675 | 1,484 | 1,370 | ||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 3 | 2 | Intersegment revenue | 4 | 1 | 7 | 3 | ||||||||||||||||||||||||||||||||||||||
Total MA | Total MA | 740 | 697 | Total MA | 751 | 676 | 1,491 | 1,373 | ||||||||||||||||||||||||||||||||||||||
MIS: | MIS: | MIS: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate Finance (CFG) | Corporate Finance (CFG) | Corporate Finance (CFG) | ||||||||||||||||||||||||||||||||||||||||||||
Investment-grade | Investment-grade | 115 | 114 | Investment-grade | 94 | 68 | 209 | 182 | ||||||||||||||||||||||||||||||||||||||
High-yield | High-yield | 32 | 39 | High-yield | 46 | 31 | 78 | 70 | ||||||||||||||||||||||||||||||||||||||
Bank loans | Bank loans | 59 | 113 | Bank loans | 68 | 72 | 127 | 185 | ||||||||||||||||||||||||||||||||||||||
Other accounts (1) | Other accounts (1) | 150 | 151 | Other accounts (1) | 157 | 151 | 307 | 302 | ||||||||||||||||||||||||||||||||||||||
Total CFG | Total CFG | 356 | 417 | Total CFG | 365 | 322 | 721 | 739 | ||||||||||||||||||||||||||||||||||||||
Structured Finance (SFG) | Structured Finance (SFG) | Structured Finance (SFG) | ||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 27 | 32 | Asset-backed securities | 32 | 31 | 59 | 63 | ||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 25 | 35 | RMBS | 25 | 28 | 50 | 63 | ||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 14 | 38 | CMBS | 14 | 27 | 28 | 65 | ||||||||||||||||||||||||||||||||||||||
Structured credit | Structured credit | 32 | 39 | Structured credit | 31 | 36 | 63 | 75 | ||||||||||||||||||||||||||||||||||||||
Other accounts | Other accounts | 1 | — | Other accounts | — | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
Total SFG | Total SFG | 99 | 144 | Total SFG | 102 | 123 | 201 | 267 | ||||||||||||||||||||||||||||||||||||||
Financial Institutions (FIG) | Financial Institutions (FIG) | Financial Institutions (FIG) | ||||||||||||||||||||||||||||||||||||||||||||
Banking | Banking | 100 | 89 | Banking | 97 | 93 | 197 | 182 | ||||||||||||||||||||||||||||||||||||||
Insurance | Insurance | 33 | 34 | Insurance | 35 | 24 | 68 | 58 | ||||||||||||||||||||||||||||||||||||||
Managed investments | Managed investments | 6 | 5 | Managed investments | 10 | 8 | 16 | 13 | ||||||||||||||||||||||||||||||||||||||
Other accounts | Other accounts | 3 | 3 | Other accounts | 3 | 3 | 6 | 6 | ||||||||||||||||||||||||||||||||||||||
Total FIG | Total FIG | 142 | 131 | Total FIG | 145 | 128 | 287 | 259 | ||||||||||||||||||||||||||||||||||||||
Public, Project and Infrastructure Finance (PPIF) | Public, Project and Infrastructure Finance (PPIF) | Public, Project and Infrastructure Finance (PPIF) | ||||||||||||||||||||||||||||||||||||||||||||
Public finance / sovereign | Public finance / sovereign | 52 | 58 | Public finance / sovereign | 54 | 55 | 106 | 113 | ||||||||||||||||||||||||||||||||||||||
Project and infrastructure | Project and infrastructure | 77 | 65 | Project and infrastructure | 73 | 67 | 150 | 132 | ||||||||||||||||||||||||||||||||||||||
Total PPIF | Total PPIF | 129 | 123 | Total PPIF | 127 | 122 | 256 | 245 | ||||||||||||||||||||||||||||||||||||||
Total ratings revenue | Total ratings revenue | 726 | 815 | Total ratings revenue | 739 | 695 | 1,465 | 1,510 | ||||||||||||||||||||||||||||||||||||||
MIS Other | MIS Other | 7 | 12 | MIS Other | 8 | 11 | 15 | 23 | ||||||||||||||||||||||||||||||||||||||
Total external revenue | Total external revenue | 733 | 827 | Total external revenue | 747 | 706 | 1,480 | 1,533 | ||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 45 | 43 | Intersegment revenue | 46 | 43 | 91 | 86 | ||||||||||||||||||||||||||||||||||||||
Total MIS | Total MIS | 778 | 870 | Total MIS | 793 | 749 | 1,571 | 1,619 | ||||||||||||||||||||||||||||||||||||||
Eliminations | Eliminations | (48) | (45) | Eliminations | (50) | (44) | (98) | (89) | ||||||||||||||||||||||||||||||||||||||
Total MCO | Total MCO | $ | 1,470 | $ | 1,522 | Total MCO | $ | 1,494 | $ | 1,381 | $ | 2,964 | $ | 2,903 |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S | Total | U.S. | Non-U.S | Total | U.S. | Non-U.S | Total | U.S. | Non-U.S | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MA: | MA: | MA: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decision Solutions | Decision Solutions | $ | 152 | $ | 202 | $ | 354 | $ | 147 | $ | 187 | $ | 334 | Decision Solutions | $ | 140 | $ | 194 | $ | 334 | $ | 120 | $ | 174 | $ | 294 | ||||||||||||||||||||||||||||||||||||||||||||
Research and Insights | Research and Insights | 105 | 90 | 195 | 103 | 80 | 183 | Research and Insights | 119 | 98 | 217 | 115 | 88 | 203 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Data and Information | Data and Information | 67 | 121 | 188 | 60 | 118 | 178 | Data and Information | 68 | 128 | 196 | 62 | 116 | 178 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total MA | Total MA | 324 | 413 | 737 | 310 | 385 | 695 | Total MA | 327 | 420 | 747 | 297 | 378 | 675 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MIS: | MIS: | MIS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Finance | Corporate Finance | 246 | 110 | 356 | 275 | 142 | 417 | Corporate Finance | 239 | 126 | 365 | 210 | 112 | 322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Structured Finance | Structured Finance | 61 | 38 | 99 | 97 | 47 | 144 | Structured Finance | 60 | 42 | 102 | 83 | 40 | 123 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Institutions | Financial Institutions | 63 | 79 | 142 | 65 | 66 | 131 | Financial Institutions | 73 | 72 | 145 | 53 | 75 | 128 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public, Project and Infrastructure Finance | Public, Project and Infrastructure Finance | 76 | 53 | 129 | 75 | 48 | 123 | Public, Project and Infrastructure Finance | 83 | 44 | 127 | 78 | 44 | 122 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total ratings revenue | Total ratings revenue | 446 | 280 | 726 | 512 | 303 | 815 | Total ratings revenue | 455 | 284 | 739 | 424 | 271 | 695 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MIS Other | MIS Other | — | 7 | 7 | 1 | 11 | 12 | MIS Other | — | 8 | 8 | 2 | 9 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total MIS | Total MIS | 446 | 287 | 733 | 513 | 314 | 827 | Total MIS | 455 | 292 | 747 | 426 | 280 | 706 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total MCO | Total MCO | $ | 770 | $ | 700 | $ | 1,470 | $ | 823 | $ | 699 | $ | 1,522 | Total MCO | $ | 782 | $ | 712 | $ | 1,494 | $ | 723 | $ | 658 | $ | 1,381 | ||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Non-U.S | Total | U.S. | Non-U.S | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MA: | MA: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decision Solutions | Decision Solutions | $ | 279 | $ | 389 | $ | 668 | $ | 253 | $ | 355 | $ | 608 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Insights | Research and Insights | 237 | 195 | 432 | 232 | 174 | 406 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Data and Information | Data and Information | 135 | 249 | 384 | 122 | 234 | 356 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total MA | Total MA | 651 | 833 | 1,484 | 607 | 763 | 1,370 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MIS: | MIS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Finance | Corporate Finance | 485 | 236 | 721 | 485 | 254 | 739 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Structured Finance | Structured Finance | 121 | 80 | 201 | 180 | 87 | 267 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Institutions | Financial Institutions | 136 | 151 | 287 | 118 | 141 | 259 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public, Project and Infrastructure Finance | Public, Project and Infrastructure Finance | 159 | 97 | 256 | 153 | 92 | 245 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total ratings revenue | Total ratings revenue | 901 | 564 | 1,465 | 936 | 574 | 1,510 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MIS Other | MIS Other | — | 15 | 15 | 3 | 20 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total MIS | Total MIS | 901 | 579 | 1,480 | 939 | 594 | 1,533 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total MCO | Total MCO | $ | 1,552 | $ | 1,412 | $ | 2,964 | $ | 1,546 | $ | 1,357 | $ | 2,903 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
MA: | |||||||||||||||||||||||
U.S. | $ | 324 | $ | 310 | |||||||||||||||||||
Non-U.S.: | |||||||||||||||||||||||
EMEA | 278 | 264 | |||||||||||||||||||||
Asia-Pacific | 80 | 67 | |||||||||||||||||||||
Americas | 55 | 54 | |||||||||||||||||||||
Total Non-U.S. | 413 | 385 | |||||||||||||||||||||
Total MA | 737 | 695 | |||||||||||||||||||||
MIS: | |||||||||||||||||||||||
U.S. | 446 | 513 | |||||||||||||||||||||
Non-U.S.: | |||||||||||||||||||||||
EMEA | 173 | 193 | |||||||||||||||||||||
Asia-Pacific | 71 | 74 | |||||||||||||||||||||
Americas | 43 | 47 | |||||||||||||||||||||
Total Non-U.S. | 287 | 314 | |||||||||||||||||||||
Total MIS | 733 | 827 | |||||||||||||||||||||
Total MCO | $ | 1,470 | $ | 1,522 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
MA: | |||||||||||||||||||||||
U.S. | $ | 327 | $ | 297 | $ | 651 | $ | 607 | |||||||||||||||
Non-U.S.: | |||||||||||||||||||||||
EMEA | 289 | 257 | 567 | 520 | |||||||||||||||||||
Asia-Pacific | 71 | 71 | 151 | 139 | |||||||||||||||||||
Americas | 60 | 50 | 115 | 104 | |||||||||||||||||||
Total Non-U.S. | 420 | 378 | 833 | 763 | |||||||||||||||||||
Total MA | 747 | 675 | 1,484 | 1,370 | |||||||||||||||||||
MIS: | |||||||||||||||||||||||
U.S. | 455 | 426 | 901 | 939 | |||||||||||||||||||
Non-U.S.: | |||||||||||||||||||||||
EMEA | 181 | 165 | 354 | 358 | |||||||||||||||||||
Asia-Pacific | 75 | 80 | 146 | 154 | |||||||||||||||||||
Americas | 36 | 35 | 79 | 82 | |||||||||||||||||||
Total Non-U.S. | 292 | 280 | 579 | 594 | |||||||||||||||||||
Total MIS | 747 | 706 | 1,480 | 1,533 | |||||||||||||||||||
Total MCO | $ | 1,494 | $ | 1,381 | $ | 2,964 | $ | 2,903 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Transaction | Recurring | Total | Transaction | Recurring | Total | ||||||||||||||||||||||||||||||
Decision Solutions | $ | 43 | $ | 311 | $ | 354 | $ | 43 | $ | 291 | $ | 334 | |||||||||||||||||||||||
12 | % | 88 | % | 100 | % | 13 | % | 87 | % | 100 | % | ||||||||||||||||||||||||
Research and Insights | $ | 2 | $ | 193 | $ | 195 | $ | 1 | $ | 182 | $ | 183 | |||||||||||||||||||||||
1 | % | 99 | % | 100 | % | 1 | % | 99 | % | 100 | % | ||||||||||||||||||||||||
Data and Information | $ | — | $ | 188 | $ | 188 | $ | — | $ | 178 | $ | 178 | |||||||||||||||||||||||
— | % | 100 | % | 100 | % | — | % | 100 | % | 100 | % | ||||||||||||||||||||||||
Total MA | $ | 45 | (1) | $ | 692 | $ | 737 | $ | 44 | $ | 651 | $ | 695 | ||||||||||||||||||||||
6 | % | 94 | % | 100 | % | 6 | % | 94 | % | 100 | % | ||||||||||||||||||||||||
Corporate Finance | $ | 230 | $ | 126 | $ | 356 | $ | 293 | $ | 124 | $ | 417 | |||||||||||||||||||||||
65 | % | 35 | % | 100 | % | 70 | % | 30 | % | 100 | % | ||||||||||||||||||||||||
Structured Finance | $ | 45 | $ | 54 | $ | 99 | $ | 93 | $ | 51 | $ | 144 | |||||||||||||||||||||||
45 | % | 55 | % | 100 | % | 65 | % | 35 | % | 100 | % | ||||||||||||||||||||||||
Financial Institutions | $ | 70 | $ | 72 | $ | 142 | $ | 61 | $ | 70 | $ | 131 | |||||||||||||||||||||||
49 | % | 51 | % | 100 | % | 47 | % | 53 | % | 100 | % | ||||||||||||||||||||||||
Public, Project and Infrastructure Finance | $ | 86 | $ | 43 | $ | 129 | $ | 79 | $ | 44 | $ | 123 | |||||||||||||||||||||||
67 | % | 33 | % | 100 | % | 64 | % | 36 | % | 100 | % | ||||||||||||||||||||||||
MIS Other | $ | — | $ | 7 | $ | 7 | $ | 3 | $ | 9 | $ | 12 | |||||||||||||||||||||||
— | % | 100 | % | 100 | % | 25 | % | 75 | % | 100 | % | ||||||||||||||||||||||||
Total MIS | $ | 431 | $ | 302 | $ | 733 | $ | 529 | $ | 298 | $ | 827 | |||||||||||||||||||||||
59 | % | 41 | % | 100 | % | 64 | % | 36 | % | 100 | % | ||||||||||||||||||||||||
Total Moody's Corporation | $ | 476 | $ | 994 | $ | 1,470 | $ | 573 | $ | 949 | $ | 1,522 | |||||||||||||||||||||||
32 | % | 68 | % | 100 | % | 38 | % | 62 | % | 100 | % | ||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Transaction | Recurring | Total | Transaction | Recurring | Total | ||||||||||||||||||||||||||||||
Decision Solutions | $ | 43 | $ | 291 | $ | 334 | $ | 38 | $ | 256 | $ | 294 | |||||||||||||||||||||||
13 | % | 87 | % | 100 | % | 13 | % | 87 | % | 100 | % | ||||||||||||||||||||||||
Research and Insights | $ | 3 | $ | 214 | $ | 217 | $ | 4 | $ | 199 | $ | 203 | |||||||||||||||||||||||
1 | % | 99 | % | 100 | % | 2 | % | 98 | % | 100 | % | ||||||||||||||||||||||||
Data and Information | $ | 1 | $ | 195 | $ | 196 | $ | — | $ | 178 | $ | 178 | |||||||||||||||||||||||
1 | % | 99 | % | 100 | % | — | % | 100 | % | 100 | % | ||||||||||||||||||||||||
Total MA | $ | 47 | (1) | $ | 700 | $ | 747 | $ | 42 | $ | 633 | $ | 675 | ||||||||||||||||||||||
6 | % | 94 | % | 100 | % | 6 | % | 94 | % | 100 | % | ||||||||||||||||||||||||
Corporate Finance | $ | 236 | $ | 129 | $ | 365 | $ | 199 | $ | 123 | $ | 322 | |||||||||||||||||||||||
65 | % | 35 | % | 100 | % | 62 | % | 38 | % | 100 | % | ||||||||||||||||||||||||
Structured Finance | $ | 48 | $ | 54 | $ | 102 | $ | 73 | $ | 50 | $ | 123 | |||||||||||||||||||||||
47 | % | 53 | % | 100 | % | 59 | % | 41 | % | 100 | % | ||||||||||||||||||||||||
Financial Institutions | $ | 73 | $ | 72 | $ | 145 | $ | 57 | $ | 71 | $ | 128 | |||||||||||||||||||||||
50 | % | 50 | % | 100 | % | 45 | % | 55 | % | 100 | % | ||||||||||||||||||||||||
Public, Project and Infrastructure Finance | $ | 84 | $ | 43 | $ | 127 | $ | 82 | $ | 40 | $ | 122 | |||||||||||||||||||||||
66 | % | 34 | % | 100 | % | 67 | % | 33 | % | 100 | % | ||||||||||||||||||||||||
MIS Other | $ | 2 | $ | 6 | $ | 8 | $ | 1 | $ | 10 | $ | 11 | |||||||||||||||||||||||
25 | % | 75 | % | 100 | % | 9 | % | 91 | % | 100 | % | ||||||||||||||||||||||||
Total MIS | $ | 443 | $ | 304 | $ | 747 | $ | 412 | $ | 294 | $ | 706 | |||||||||||||||||||||||
59 | % | 41 | % | 100 | % | 58 | % | 42 | % | 100 | % | ||||||||||||||||||||||||
Total Moody's Corporation | $ | 490 | $ | 1,004 | $ | 1,494 | $ | 454 | $ | 927 | $ | 1,381 | |||||||||||||||||||||||
33 | % | 67 | % | 100 | % | 33 | % | 67 | % | 100 | % | ||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Transaction | Recurring | Total | Transaction | Recurring | Total | ||||||||||||||||||||||||||||||
Decision Solutions | $ | 83 | $ | 585 | $ | 668 | $ | 78 | $ | 530 | $ | 608 | |||||||||||||||||||||||
12 | % | 88 | % | 100 | % | 13 | % | 87 | % | 100 | % | ||||||||||||||||||||||||
Research and Insights | $ | 8 | $ | 424 | $ | 432 | $ | 8 | $ | 398 | $ | 406 | |||||||||||||||||||||||
2 | % | 98 | % | 100 | % | 2 | % | 98 | % | 100 | % | ||||||||||||||||||||||||
Data and Information | $ | 1 | $ | 383 | $ | 384 | $ | — | $ | 356 | $ | 356 | |||||||||||||||||||||||
— | % | 100 | % | 100 | % | — | % | 100 | % | 100 | % | ||||||||||||||||||||||||
Total MA | $ | 92 | (1) | $ | 1,392 | $ | 1,484 | $ | 86 | $ | 1,284 | $ | 1,370 | ||||||||||||||||||||||
6 | % | 94 | % | 100 | % | 6 | % | 94 | % | 100 | % | ||||||||||||||||||||||||
Corporate Finance | $ | 466 | $ | 255 | $ | 721 | $ | 492 | $ | 247 | $ | 739 | |||||||||||||||||||||||
65 | % | 35 | % | 100 | % | 67 | % | 33 | % | 100 | % | ||||||||||||||||||||||||
Structured Finance | $ | 94 | $ | 107 | $ | 201 | $ | 166 | $ | 101 | $ | 267 | |||||||||||||||||||||||
47 | % | 53 | % | 100 | % | 62 | % | 38 | % | 100 | % | ||||||||||||||||||||||||
Financial Institutions | $ | 143 | $ | 144 | $ | 287 | $ | 118 | $ | 141 | $ | 259 | |||||||||||||||||||||||
50 | % | 50 | % | 100 | % | 46 | % | 54 | % | 100 | % | ||||||||||||||||||||||||
Public, Project and Infrastructure Finance | $ | 169 | $ | 87 | $ | 256 | $ | 161 | $ | 84 | $ | 245 | |||||||||||||||||||||||
66 | % | 34 | % | 100 | % | 66 | % | 34 | % | 100 | % | ||||||||||||||||||||||||
MIS Other | $ | 3 | $ | 12 | $ | 15 | $ | 2 | $ | 21 | $ | 23 | |||||||||||||||||||||||
20 | % | 80 | % | 100 | % | 9 | % | 91 | % | 100 | % | ||||||||||||||||||||||||
Total MIS | $ | 875 | $ | 605 | $ | 1,480 | $ | 939 | $ | 594 | $ | 1,533 | |||||||||||||||||||||||
59 | % | 41 | % | 100 | % | 61 | % | 39 | % | 100 | % | ||||||||||||||||||||||||
Total Moody's Corporation | $ | 967 | $ | 1,997 | $ | 2,964 | $ | 1,025 | $ | 1,878 | $ | 2,903 | |||||||||||||||||||||||
33 | % | 67 | % | 100 | % | 35 | % | 65 | % | 100 | % |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MA | MIS | Total | MA | MIS | Total | MA | MIS | Total | MA | MIS | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue recognized at a point in time | Revenue recognized at a point in time | $ | 27 | $ | 431 | $ | 458 | $ | 41 | $ | 529 | $ | 570 | Revenue recognized at a point in time | $ | 22 | $ | 443 | $ | 465 | $ | 49 | $ | 875 | $ | 924 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue recognized over time | Revenue recognized over time | 710 | 302 | 1,012 | 654 | 298 | 952 | Revenue recognized over time | 725 | 304 | 1,029 | 1,435 | 605 | 2,040 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 737 | $ | 733 | $ | 1,470 | $ | 695 | $ | 827 | $ | 1,522 | Total | $ | 747 | $ | 747 | $ | 1,494 | $ | 1,484 | $ | 1,480 | $ | 2,964 |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||
MA | MIS | Total | MA | MIS | Total | ||||||||||||||||||||||||||||||
Revenue recognized at a point in time | $ | 16 | $ | 412 | $ | 428 | $ | 57 | $ | 939 | $ | 996 | |||||||||||||||||||||||
Revenue recognized over time | 659 | 294 | 953 | 1,313 | 594 | 1,907 | |||||||||||||||||||||||||||||
Total | $ | 675 | $ | 706 | $ | 1,381 | $ | 1,370 | $ | 1,533 | $ | 2,903 |
As of March 31, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
MA | MIS | MA | MIS | ||||||||||||||||||||
Unbilled Receivables | $ | 114 | $ | 439 | $ | 148 | $ | 385 |
As of June 30, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
MA | MIS | MA | MIS | ||||||||||||||||||||
Unbilled Receivables | $ | 119 | $ | 428 | $ | 148 | $ | 385 |
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||
MA | MIS | Total | MA | MIS | Total | ||||||||||||||||||||||||||||||
Balance at March 31, | $ | 1,288 | $ | 360 | $ | 1,648 | $ | 1,234 | $ | 377 | $ | 1,611 | |||||||||||||||||||||||
Changes in deferred revenue | |||||||||||||||||||||||||||||||||||
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (592) | (116) | (708) | (391) | (117) | (508) | |||||||||||||||||||||||||||||
Increases due to amounts billable excluding amounts recognized as revenue during the period | 417 | 91 | 508 | 213 | 94 | 307 | |||||||||||||||||||||||||||||
Effect of exchange rate changes | 3 | 1 | 4 | (37) | (7) | (44) | |||||||||||||||||||||||||||||
Total changes in deferred revenue | (172) | (24) | (196) | (215) | (30) | (245) | |||||||||||||||||||||||||||||
Balance at June 30, | $ | 1,116 | $ | 336 | $ | 1,452 | $ | 1,019 | $ | 347 | $ | 1,366 |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MA | MIS | Total | MA | MIS | Total | MA | MIS | Total | MA | MIS | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, | Balance at December 31, | $ | 1,055 | $ | 278 | $ | 1,333 | $ | 1,039 | $ | 296 | $ | 1,335 | Balance at December 31, | $ | 1,055 | $ | 278 | $ | 1,333 | $ | 1,039 | $ | 296 | $ | 1,335 | ||||||||||||||||||||||||||||||||||||||||||||
Changes in deferred revenue | Changes in deferred revenue | Changes in deferred revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (471) | (98) | (569) | (431) | (95) | (526) | Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (788) | (160) | (948) | (654) | (155) | (809) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increases due to amounts billable excluding amounts recognized as revenue during the period | Increases due to amounts billable excluding amounts recognized as revenue during the period | 688 | 179 | 867 | 636 | 178 | 814 | Increases due to amounts billable excluding amounts recognized as revenue during the period | 830 | 216 | 1,046 | 680 | 215 | 895 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increases due to acquisitions during the period | Increases due to acquisitions during the period | — | — | — | 1 | — | 1 | Increases due to acquisitions during the period | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes | Effect of exchange rate changes | 16 | 1 | 17 | (11) | (2) | (13) | Effect of exchange rate changes | 19 | 2 | 21 | (47) | (9) | (56) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total changes in deferred revenue | Total changes in deferred revenue | 233 | 82 | 315 | 195 | 81 | 276 | Total changes in deferred revenue | 61 | 58 | 119 | (20) | 51 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, | $ | 1,288 | $ | 360 | $ | 1,648 | $ | 1,234 | $ | 377 | $ | 1,611 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, | Balance at June 30, | $ | 1,116 | $ | 336 | $ | 1,452 | $ | 1,019 | $ | 347 | $ | 1,366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred revenue - current | Deferred revenue - current | $ | 1,287 | $ | 291 | $ | 1,578 | $ | 1,231 | $ | 294 | $ | 1,525 | Deferred revenue - current | $ | 1,115 | $ | 270 | $ | 1,385 | $ | 1,017 | $ | 268 | $ | 1,285 | ||||||||||||||||||||||||||||||||||||||||||||
Deferred revenue - non-current | Deferred revenue - non-current | $ | 1 | $ | 69 | $ | 70 | $ | 3 | $ | 83 | $ | 86 | Deferred revenue - non-current | $ | 1 | $ | 66 | $ | 67 | $ | 2 | $ | 79 | $ | 81 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation cost | Stock-based compensation cost | $ | 47 | $ | 46 | Stock-based compensation cost | $ | 50 | $ | 38 | $ | 97 | $ | 84 | ||||||||||||||||||||||||||||||||
Tax benefit | Tax benefit | $ | 10 | $ | 11 | Tax benefit | $ | 12 | $ | 9 | $ | 22 | $ | 20 |
Expected dividend yield | 1.04 | % | |||
Expected stock volatility | 29 | % | |||
Risk-free interest rate | 4.18 | % | |||
Expected holding period | 5.8 years |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Exercise of stock options: | Exercise of stock options: | Exercise of stock options: | ||||||||||||||||||||
Proceeds from stock option exercises | Proceeds from stock option exercises | $ | 7 | $ | 3 | Proceeds from stock option exercises | $ | 21 | $ | 4 | ||||||||||||
Aggregate intrinsic value | Aggregate intrinsic value | $ | 15 | $ | 4 | Aggregate intrinsic value | $ | 44 | $ | 5 | ||||||||||||
Tax benefit realized upon exercise | Tax benefit realized upon exercise | $ | 4 | $ | 1 | Tax benefit realized upon exercise | $ | 10 | $ | 1 | ||||||||||||
Number of shares exercised (1) | Number of shares exercised (1) | 0.1 | — | Number of shares exercised (1) | 0.2 | — | ||||||||||||||||
Vesting of restricted stock: | Vesting of restricted stock: | Vesting of restricted stock: | ||||||||||||||||||||
Fair value of shares vested | Fair value of shares vested | $ | 140 | $ | 166 | Fair value of shares vested | $ | 147 | $ | 170 | ||||||||||||
Tax benefit realized upon vesting | Tax benefit realized upon vesting | $ | 33 | $ | 39 | Tax benefit realized upon vesting | $ | 34 | $ | 40 | ||||||||||||
Number of shares vested | Number of shares vested | 0.5 | 0.5 | Number of shares vested | 0.5 | 0.5 | ||||||||||||||||
Vesting of performance-based restricted stock: | Vesting of performance-based restricted stock: | Vesting of performance-based restricted stock: | ||||||||||||||||||||
Fair value of shares vested | Fair value of shares vested | $ | 24 | $ | 50 | Fair value of shares vested | $ | 24 | $ | 50 | ||||||||||||
Tax benefit realized upon vesting | Tax benefit realized upon vesting | $ | 3 | $ | 7 | Tax benefit realized upon vesting | $ | 3 | $ | 7 | ||||||||||||
Number of shares vested | Number of shares vested | 0.1 | 0.2 | Number of shares vested | 0.1 | 0.2 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Income taxes paid | $ | 66 | $ | 70 |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Income taxes paid | $ | 122 | $ | 326 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||
Basic | Basic | 183.3 | 185.1 | Basic | 183.5 | 184.1 | 183.4 | 184.6 | ||||||||||||||||||||||||||||||||||||||
Dilutive effect of shares issuable under stock-based compensation plans | Dilutive effect of shares issuable under stock-based compensation plans | 0.8 | 1.0 | Dilutive effect of shares issuable under stock-based compensation plans | 0.6 | 0.8 | 0.7 | 0.8 | ||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | 184.1 | 186.1 | Diluted | 184.1 | 184.9 | 184.1 | 185.4 | ||||||||||||||||||||||||||||||||||||||
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above | Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above | 0.7 | 0.3 | Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above | 0.4 | 0.8 | 0.5 | 0.4 |
As of March 31, 2023 | As of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet location | Balance sheet location | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost | Gains/(Losses) | Fair Value | Cash and cash equivalents | Short-term investments | Other assets | Cost | Gains/(Losses) | Fair Value | Cash and cash equivalents | Short-term investments | Other assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit and money market deposit accounts (1) | $ | 729 | $ | — | $ | 729 | $ | 645 | $ | 78 | $ | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit and money market deposit accounts/funds (1) | Certificates of deposit and money market deposit accounts/funds (1) | $ | 1,221 | $ | — | $ | 1,221 | $ | 1,159 | $ | 57 | $ | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | Mutual funds | $ | 80 | $ | 3 | $ | 83 | $ | — | $ | — | $ | 83 | Mutual funds | $ | 87 | $ | 4 | $ | 91 | $ | — | $ | — | $ | 91 |
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||
Balance sheet location | |||||||||||||||||||||||||||||||||||
Cost | Gains/(Losses) | Fair Value | Cash and cash equivalents | Short-term investments | Other assets | ||||||||||||||||||||||||||||||
Certificates of deposit and money market deposit accounts (1) | $ | 914 | $ | — | $ | 914 | $ | 808 | $ | 90 | $ | 16 | |||||||||||||||||||||||
Mutual funds | $ | 71 | $ | — | $ | 71 | $ | — | $ | — | $ | 71 |
As of March 31, 2023 | As of December 31, 2022 | As of June 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedged Item | Hedged Item | Nature of Swap | Notional Amount | Floating Interest Rate (1) | Notional Amount | Floating Interest Rate | Hedged Item | Nature of Swap | Notional Amount | Floating Interest Rate (1) | Notional Amount | Floating Interest Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 Senior Notes due 2028 | 2017 Senior Notes due 2028 | Pay Floating/Receive Fixed | $ | 500 | SOFR | $ | 500 | 3-month LIBOR | 2017 Senior Notes due 2028 | Pay Floating/Receive Fixed | $ | 500 | SOFR | $ | 500 | 3-month LIBOR | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 Senior Notes due 2025 | 2020 Senior Notes due 2025 | Pay Floating/Receive Fixed | 300 | SOFR | 300 | 6-month LIBOR | 2020 Senior Notes due 2025 | Pay Floating/Receive Fixed | 300 | SOFR | 300 | 6-month LIBOR | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 Senior Notes due 2044 | 2014 Senior Notes due 2044 | Pay Floating/Receive Fixed | 300 | SOFR | 300 | 3-month LIBOR | 2014 Senior Notes due 2044 | Pay Floating/Receive Fixed | 300 | SOFR | 300 | 3-month LIBOR | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 Senior Notes due 2048 | 2018 Senior Notes due 2048 | Pay Floating/Receive Fixed | 300 | SOFR | 300 | 3-month LIBOR | 2018 Senior Notes due 2048 | Pay Floating/Receive Fixed | 300 | SOFR | 300 | 3-month LIBOR | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 Senior Notes due 2029 | 2018 Senior Notes due 2029 | Pay Floating/Receive Fixed | 400 | SOFR | 400 | SOFR | 2018 Senior Notes due 2029 | Pay Floating/Receive Fixed | 400 | SOFR | 400 | SOFR | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 Senior Notes due 2052 | 2022 Senior Notes due 2052 | Pay Floating/Receive Fixed | 500 | SOFR | 500 | SOFR | 2022 Senior Notes due 2052 | Pay Floating/Receive Fixed | 500 | SOFR | 500 | SOFR | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 Senior Notes due 2032 | 2022 Senior Notes due 2032 | Pay Floating/Receive Fixed | 250 | SOFR | 250 | SOFR | 2022 Senior Notes due 2032 | Pay Floating/Receive Fixed | 250 | SOFR | 250 | SOFR | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 2,550 | $ | 2,550 | Total | $ | 2,550 | $ | 2,550 |
Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded | Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded | Amount of income/(loss) recognized in the consolidated statements of operations | Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded | Amount of income/(loss) recognized in the consolidated statements of operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | $ | (48) | $ | (53) | Interest expense, net | $ | (71) | $ | (55) | $ | (119) | $ | (108) | ||||||||||||||||||||||||||||||||||||||||||||
Descriptions | Descriptions | Location on Consolidated Statements of Operations | Descriptions | Location on Consolidated Statements of Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest settlements and accruals on interest rate swaps | Net interest settlements and accruals on interest rate swaps | Interest expense, net | $ | (18) | $ | 6 | Net interest settlements and accruals on interest rate swaps | Interest expense, net | $ | (21) | $ | 3 | $ | (39) | $ | 9 | ||||||||||||||||||||||||||||||||||||||||||
Fair value changes on interest rate swaps | Fair value changes on interest rate swaps | Interest expense, net | $ | 46 | $ | (85) | Fair value changes on interest rate swaps | Interest expense, net | $ | (46) | $ | (47) | $ | — | $ | (132) | ||||||||||||||||||||||||||||||||||||||||||
Fair value changes on hedged debt | Fair value changes on hedged debt | Interest expense, net | $ | (46) | $ | 85 | Fair value changes on hedged debt | Interest expense, net | $ | 46 | $ | 47 | $ | — | $ | 132 |
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pay | Receive | Pay | Receive | |||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Swap | Nature of Swap | Notional Amount | Weighted Average Interest Rate | Notional Amount | Weighted Average Interest Rate | Nature of Swap | Notional Amount | Weighted Average Interest Rate | Notional Amount | Weighted Average Interest Rate | ||||||||||||||||||||||||||||||||||||||||||
Pay Fixed/Receive Fixed | Pay Fixed/Receive Fixed | € | 765 | 3.67% | $ | 800 | 5.25% | Pay Fixed/Receive Fixed | € | 765 | 3.67% | $ | 800 | 5.25% | ||||||||||||||||||||||||||||||||||||||
Pay Floating/Receive Floating | Pay Floating/Receive Floating | 2,138 | Based on ESTR | 2,250 | Based on SOFR | Pay Floating/Receive Floating | 2,138 | Based on ESTR | 2,250 | Based on SOFR | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | € | 2,903 | $ | 3,050 | Total | € | 2,903 | $ | 3,050 |
December 31, 2022 | ||||||||||||||||||||||||||
Pay | Receive | |||||||||||||||||||||||||
Nature of Swap | Notional Amount | Weighted Average Interest Rate | Notional Amount | Weighted Average Interest Rate | ||||||||||||||||||||||
Pay Fixed/Receive Fixed | € | 765 | 3.67% | $ | 800 | 5.25% | ||||||||||||||||||||
Pay Floating/Receive Floating | 450 | Based on 3-month EURIBOR | 500 | Based on 3-month USD LIBOR | ||||||||||||||||||||||
Pay Floating/Receive Floating | 1,688 | Based on ESTR | 1,750 | Based on SOFR | ||||||||||||||||||||||
Total | € | 2,903 | $ | 3,050 |
Years Ending December 31, | ||||||||
2026 | € | 450 | ||||||
2027 | € | 531 | ||||||
2028 | € | 588 | ||||||
2029 | € | 373 | ||||||
2031 | € | 481 | ||||||
2032 | € | 480 | ||||||
Total | € | 2,903 |
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships | Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax | Amount of Loss Reclassified from AOCL into Income, net of Tax | Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax | Amount of Loss Reclassified from AOCL into Income, net of Tax | Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross currency swaps | Cross currency swaps | $ | (39) | $ | 24 | $ | — | $ | — | $ | 16 | $ | 10 | Cross currency swaps | $ | (24) | $ | 118 | $ | — | $ | — | $ | 14 | $ | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | (18) | 23 | — | — | — | — | Long-term debt | (4) | 63 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net investment hedges | Total net investment hedges | $ | (57) | $ | 47 | $ | — | $ | — | $ | 16 | $ | 10 | Total net investment hedges | $ | (28) | $ | 181 | $ | — | $ | — | $ | 14 | $ | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Derivatives in Cash Flow Hedging Relationships | Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross currency swap | Cross currency swap | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | $ | — | $ | — | $ | (1) | $ | (1) | $ | — | $ | — | Interest rate contracts | — | — | — | (1) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash flow hedges | Total cash flow hedges | $ | — | $ | — | $ | (1) | $ | (1) | $ | — | $ | — | Total cash flow hedges | $ | — | $ | — | $ | 1 | $ | (1) | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | (57) | $ | 47 | $ | (1) | $ | (1) | $ | 16 | $ | 10 | Total | $ | (28) | $ | 181 | $ | 1 | $ | (1) | $ | 14 | $ | 11 |
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax | Amount of Loss Reclassified from AOCL into Income, net of Tax | Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||
Cross currency swaps | $ | (63) | $ | 142 | $ | — | $ | — | $ | 30 | $ | 21 | ||||||||||||||||||||||||||
Long-term debt | (22) | 86 | — | — | — | — | ||||||||||||||||||||||||||||||||
Total net investment hedges | $ | (85) | $ | 228 | $ | — | $ | — | $ | 30 | $ | 21 | ||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||||||
Cross currency swap | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Interest rate contracts | — | — | (1) | (1) | — | — | ||||||||||||||||||||||||||||||||
Total cash flow hedges | $ | — | $ | — | $ | — | $ | (1) | $ | — | $ | — | ||||||||||||||||||||||||||
Total | $ | (85) | $ | 228 | $ | — | $ | (1) | $ | 30 | $ | 21 | ||||||||||||||||||||||||||
Cumulative Gains/(Losses), net of tax | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
Net investment hedges | |||||||||||
Cross currency swaps | $ | 55 | $ | 118 | |||||||
FX forwards | 29 | 29 | |||||||||
Long-term debt | 16 | 38 | |||||||||
Total net investment hedges | $ | 100 | $ | 185 | |||||||
Cash flow hedges | |||||||||||
Interest rate contracts | $ | (46) | $ | (47) | |||||||
Cross currency swaps | 1 | 2 | |||||||||
Total cash flow hedges | (45) | (45) | |||||||||
Total net gain in AOCL | $ | 55 | $ | 140 |
Cumulative Gains/(Losses), net of tax | |||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
Net investment hedges | |||||||||||
Cross currency swaps | $ | 79 | $ | 118 | |||||||
FX forwards | 29 | 29 | |||||||||
Long-term debt | 20 | 38 | |||||||||
Total net investment hedges | $ | 128 | $ | 185 | |||||||
Cash flow hedges | |||||||||||
Interest rate contracts | $ | (46) | $ | (47) | |||||||
Cross currency swaps | 2 | 2 | |||||||||
Total cash flow hedges | (44) | (45) | |||||||||
Total net gain in AOCL | $ | 84 | $ | 140 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount of currency pair: | Notional amount of currency pair: | Sell | Buy | Sell | Buy | Notional amount of currency pair: | Sell | Buy | Sell | Buy | ||||||||||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for GBP | Contracts to sell USD for GBP | $ | 295 | £ | 241 | $ | 170 | £ | 146 | Contracts to sell USD for GBP | $ | 683 | £ | 548 | $ | 170 | £ | 146 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for Japanese yen | Contracts to sell USD for Japanese yen | $ | 15 | ¥ | 2,000 | $ | 24 | ¥ | 3,500 | Contracts to sell USD for Japanese yen | $ | 15 | ¥ | 2,000 | $ | 24 | ¥ | 3,500 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for Canadian dollars | Contracts to sell USD for Canadian dollars | $ | 78 | C$ | 105 | $ | 87 | C$ | 120 | Contracts to sell USD for Canadian dollars | $ | 116 | C$ | 155 | $ | 87 | C$ | 120 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for Singapore dollars | Contracts to sell USD for Singapore dollars | $ | 52 | S$ | 70 | $ | 50 | S$ | 70 | Contracts to sell USD for Singapore dollars | $ | 81 | S$ | 109 | $ | 50 | S$ | 70 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for euros | Contracts to sell USD for euros | $ | 160 | € | 148 | $ | 116 | € | 115 | Contracts to sell USD for euros | $ | 272 | € | 250 | $ | 116 | € | 115 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell USD for Indian rupee | Contracts to sell USD for Indian rupee | $ | 23 | ₹ | 1,900 | $ | 19 | ₹ | 1,600 | Contracts to sell USD for Indian rupee | $ | 23 | ₹ | 1,900 | $ | 19 | ₹ | 1,600 | ||||||||||||||||||||||||||||||||||||||||
Contracts to sell GBP for USD | Contracts to sell GBP for USD | £ | 90 | $ | 115 | £ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Contracts to sell euros for USD | Contracts to sell euros for USD | € | 25 | $ | 27 | € | 85 | $ | 89 | Contracts to sell euros for USD | € | 125 | $ | 135 | € | 85 | $ | 89 |
Derivatives not designated as accounting hedges | Location on Consolidated Statements of Operations | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
FX forwards | Other non-operating income, net | $ | 10 | $ | (38) | $ | 15 | $ | (57) | |||||||||||||||||||||||||||||
Derivatives not designated as accounting hedges | Location on Consolidated Statements of Operations | Three Months Ended March 31, | |||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||
FX forwards | Other non-operating income, net | $ | 5 | $ | (19) |
Derivative and Non-Derivative Instruments | Derivative and Non-Derivative Instruments | |||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | March 31, 2023 | December 31, 2022 | Balance Sheet Location | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as accounting hedges: | Derivatives designated as accounting hedges: | Derivatives designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
Cross-currency swaps designated as net investment hedges | Cross-currency swaps designated as net investment hedges | Other assets | $ | 12 | $ | 27 | Cross-currency swaps designated as net investment hedges | Other assets | $ | 7 | $ | 27 | ||||||||||||||||||||||||||||
Derivatives not designated as accounting hedges: | Derivatives not designated as accounting hedges: | Derivatives not designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
FX forwards on certain assets and liabilities | FX forwards on certain assets and liabilities | Other current assets | 4 | 19 | FX forwards on certain assets and liabilities | Other current assets | 10 | 19 | ||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 16 | $ | 46 | Total assets | $ | 17 | $ | 46 | ||||||||||||||||||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as accounting hedges: | Derivatives designated as accounting hedges: | Derivatives designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
Cross-currency swaps designated as net investment hedges | Cross-currency swaps designated as net investment hedges | Other liabilities | $ | 115 | $ | 78 | Cross-currency swaps designated as net investment hedges | Other liabilities | $ | 142 | $ | 78 | ||||||||||||||||||||||||||||
Interest rate swaps designated as fair value hedges | Interest rate swaps designated as fair value hedges | Other liabilities | 192 | 239 | Interest rate swaps designated as fair value hedges | Other liabilities | 239 | 239 | ||||||||||||||||||||||||||||||||
Total derivatives designated as accounting hedges | Total derivatives designated as accounting hedges | 307 | 317 | Total derivatives designated as accounting hedges | 381 | 317 | ||||||||||||||||||||||||||||||||||
Non-derivatives designated as accounting hedges: | Non-derivatives designated as accounting hedges: | Non-derivatives designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
Long-term debt designated as net investment hedge | Long-term debt designated as net investment hedge | Long-term debt | 1,358 | 1,334 | Long-term debt designated as net investment hedge | Long-term debt | 1,364 | 1,334 | ||||||||||||||||||||||||||||||||
Derivatives not designated as accounting hedges: | Derivatives not designated as accounting hedges: | Derivatives not designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
FX forwards on certain assets and liabilities | FX forwards on certain assets and liabilities | Accounts payable and accrued liabilities | 1 | 2 | FX forwards on certain assets and liabilities | Accounts payable and accrued liabilities | 3 | 2 | ||||||||||||||||||||||||||||||||
Total liabilities | Total liabilities | $ | 1,666 | $ | 1,653 | Total liabilities | $ | 1,748 | $ | 1,653 |
Three Months Ended March 31, 2023 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MA | MIS | Consolidated | MA | MIS | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | Gross goodwill | Accumulated impairment charge | Net goodwill | 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 | Balance at beginning of year | $ | 5,474 | $ | (12) | $ | 5,462 | $ | 377 | $ | — | $ | 377 | $ | 5,851 | $ | (12) | $ | 5,839 | Balance at beginning of year | $ | 5,474 | $ | (12) | $ | 5,462 | $ | 377 | $ | — | $ | 377 | $ | 5,851 | $ | (12) | $ | 5,839 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions/ adjustments (1) | Additions/ adjustments (1) | 90 | — | 90 | (90) | — | (90) | — | — | — | Additions/ adjustments (1) | 90 | — | 90 | (87) | — | (87) | 3 | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | 56 | — | 56 | (3) | — | (3) | 53 | — | 53 | Foreign currency translation adjustments | 85 | — | 85 | (1) | — | (1) | 84 | — | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 5,620 | $ | (12) | $ | 5,608 | $ | 284 | $ | — | $ | 284 | $ | 5,904 | $ | (12) | $ | 5,892 | Ending balance | $ | 5,649 | $ | (12) | $ | 5,637 | $ | 289 | $ | — | $ | 289 | $ | 5,938 | $ | (12) | $ | 5,926 |
Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
MA | MIS | 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 | $ | 5,615 | $ | (12) | $ | 5,603 | $ | 396 | $ | — | $ | 396 | $ | 6,011 | $ | (12) | $ | 5,999 | |||||||||||||||||||||||||||||||||||
Additions/ adjustments (2) | 88 | — | 88 | 4 | — | 4 | 92 | — | 92 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (229) | — | (229) | (23) | — | (23) | (252) | — | (252) | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 5,474 | $ | (12) | $ | 5,462 | $ | 377 | $ | — | $ | 377 | $ | 5,851 | $ | (12) | $ | 5,839 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||
Customer relationships | Customer relationships | $ | 2,043 | $ | 2,024 | Customer relationships | $ | 2,055 | $ | 2,024 | ||||||||||||
Accumulated amortization | Accumulated amortization | (480) | (453) | Accumulated amortization | (507) | (453) | ||||||||||||||||
Net customer relationships | Net customer relationships | 1,563 | 1,571 | Net customer relationships | 1,548 | 1,571 | ||||||||||||||||
Software/product technology | Software/product technology | 667 | 661 | Software/product technology | 670 | 661 | ||||||||||||||||
Accumulated amortization | Accumulated amortization | (305) | (283) | Accumulated amortization | (326) | (283) | ||||||||||||||||
Net software/product technology | Net software/product technology | 362 | 378 | Net software/product technology | 344 | 378 | ||||||||||||||||
Database | Database | 178 | 178 | Database | 178 | 178 | ||||||||||||||||
Accumulated amortization | Accumulated amortization | (69) | (64) | Accumulated amortization | (73) | (64) | ||||||||||||||||
Net database | Net database | 109 | 114 | Net database | 105 | 114 | ||||||||||||||||
Trade names | Trade names | 198 | 197 | Trade names | 199 | 197 | ||||||||||||||||
Accumulated amortization | Accumulated amortization | (62) | (58) | Accumulated amortization | (65) | (58) | ||||||||||||||||
Net trade names | Net trade names | 136 | 139 | Net trade names | 134 | 139 | ||||||||||||||||
Other (1) | Other (1) | 52 | 52 | Other (1) | 52 | 52 | ||||||||||||||||
Accumulated amortization | Accumulated amortization | (45) | (44) | Accumulated amortization | (45) | (44) | ||||||||||||||||
Net other | Net other | 7 | 8 | Net other | 7 | 8 | ||||||||||||||||
Total acquired intangible assets, net | Total acquired intangible assets, net | $ | 2,177 | $ | 2,210 | Total acquired intangible assets, net | $ | 2,138 | $ | 2,210 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Amortization expense | $ | 51 | $ | 51 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Amortization expense | $ | 50 | $ | 51 | $ | 101 | $ | 102 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
2020 MA Strategic Reorganization Restructuring Program | $ | — | $ | (1) | $ | — | $ | (1) | |||||||||||||||||||||
2022 - 2023 Geolocation Restructuring Program | 10 | 32 | 24 | 32 | |||||||||||||||||||||||||
Total Restructuring | $ | 10 | $ | 31 | $ | 24 | $ | 31 |
Balance as of December 31, 2022 | $ | 65 | |||||||||||||
2022 - 2023 Geolocation Restructuring Program: | |||||||||||||||
Cost incurred and adjustments | |||||||||||||||
Cash payments and adjustments | |||||||||||||||
Balance as of | $ | ||||||||||||||
Cumulative expense incurred through March 31, 2023 | Employee Termination Costs | Real Estate Related Costs | Other Costs | Total | ||||||||||||||||||||||||||||||||||||||||||
Cumulative expense incurred through June 30, 2023 | Cumulative expense incurred through June 30, 2023 | Employee Termination Costs | Real Estate Related Costs | Other Costs | Total | |||||||||||||||||||||||||||||||||||||||||
2022 - 2023 Geolocation Restructuring Program | 2022 - 2023 Geolocation Restructuring Program | $ | 98 | $ | 28 | $ | 1 | $ | 127 | 2022 - 2023 Geolocation Restructuring Program | $ | 107 | $ | 29 | $ | 1 | $ | 137 |
Fair Value Measurement as of March 31, 2023 | Fair Value Measurement as of June 30, 2023 | |||||||||||||||||||||||||||||||||
Description | Description | Balance | Level 1 | Level 2 | Description | Balance | Level 1 | Level 2 | ||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||
Derivatives (1) | Derivatives (1) | $ | 16 | $ | — | $ | 16 | Derivatives (1) | $ | 17 | $ | — | $ | 17 | ||||||||||||||||||||
Mutual funds | 83 | 83 | — | |||||||||||||||||||||||||||||||
Money market funds/mutual funds | Money market funds/mutual funds | 231 | 231 | — | ||||||||||||||||||||||||||||||
Total | Total | $ | 99 | $ | 83 | $ | 16 | Total | $ | 248 | $ | 231 | $ | 17 | ||||||||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives (1) | Derivatives (1) | $ | 308 | $ | — | $ | 308 | Derivatives (1) | $ | 384 | $ | — | $ | 384 | ||||||||||||||||||||
Total | Total | $ | 308 | $ | — | $ | 308 | Total | $ | 384 | $ | — | $ | 384 |
Fair Value Measurement as of December 31, 2022 | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | ||||||||||||||
Assets: | |||||||||||||||||
Derivatives (1) | $ | 46 | $ | — | $ | 46 | |||||||||||
Mutual funds | 71 | 71 | — | ||||||||||||||
Total | $ | 117 | $ | 71 | $ | 46 | |||||||||||
Liabilities: | |||||||||||||||||
Derivatives (1) | $ | 319 | $ | — | $ | 319 | |||||||||||
Total | $ | 319 | $ | — | $ | 319 |
March 31, 2023 | December 31, 2022 | ||||||||||
Other current assets: | |||||||||||
Prepaid taxes | $ | 191 | $ | 235 | |||||||
Prepaid expenses | 131 | 119 | |||||||||
Capitalized costs to obtain and fulfill sales contracts | 117 | 106 | |||||||||
Foreign exchange forwards on certain assets and liabilities | 4 | 19 | |||||||||
Other | 74 | 104 | |||||||||
Total other current assets | $ | 517 | $ | 583 | |||||||
Other assets: | |||||||||||
Investments in non-consolidated affiliates | $ | 520 | $ | 517 | |||||||
Deposits for real-estate leases | 15 | 15 | |||||||||
Indemnification assets related to acquisitions | 112 | 110 | |||||||||
Mutual funds and fixed deposits | 89 | 87 | |||||||||
Company owned life insurance (at contract value) | 44 | 40 | |||||||||
Costs to obtain sales contracts | 181 | 171 | |||||||||
Derivative instruments designated as accounting hedges | 12 | 27 | |||||||||
Pension and other retirement employee benefits | 41 | 40 | |||||||||
Other | 85 | 85 | |||||||||
Total other assets | $ | 1,099 | $ | 1,092 | |||||||
Accounts payable and accrued liabilities: | |||||||||||
Salaries and benefits | $ | 135 | $ | 104 | |||||||
Incentive compensation | 88 | 276 | |||||||||
Customer credits, advanced payments and advanced billings | 110 | 102 | |||||||||
Dividends | 4 | 6 | |||||||||
Professional service fees | 47 | 49 | |||||||||
Accrued interest | 85 | 144 | |||||||||
Accounts payable | 70 | 52 | |||||||||
Income taxes | 84 | 86 | |||||||||
Pension and other retirement employee benefits | 7 | 7 | |||||||||
Accrued royalties | 31 | 23 | |||||||||
Foreign exchange forwards on certain assets and liabilities | 1 | 2 | |||||||||
Restructuring liability | 37 | 65 | |||||||||
Other | 106 | 95 | |||||||||
Total accounts payable and accrued liabilities | $ | 805 | $ | 1,011 | |||||||
Other liabilities: | |||||||||||
Pension and other retirement employee benefits | $ | 195 | $ | 189 | |||||||
Interest accrued on UTPs | 28 | 47 | |||||||||
MAKS indemnification provisions | 19 | 23 | |||||||||
Income tax liability - non-current portion | 15 | 48 | |||||||||
Derivative instruments designated as accounting hedges | 307 | 317 | |||||||||
Other | 46 | 50 | |||||||||
Total other liabilities | $ | 610 | $ | 674 |
June 30, 2023 | December 31, 2022 | ||||||||||
Other current assets: | |||||||||||
Prepaid taxes | $ | 169 | $ | 235 | |||||||
Prepaid expenses | 112 | 119 | |||||||||
Capitalized costs to obtain and fulfill sales contracts | 112 | 106 | |||||||||
Foreign exchange forwards on certain assets and liabilities | 10 | 19 | |||||||||
Interest receivable on interest rate and cross currency swaps | 78 | 74 | |||||||||
Other | 32 | 30 | |||||||||
Total other current assets | $ | 513 | $ | 583 | |||||||
Other assets: | |||||||||||
Investments in non-consolidated affiliates | $ | 526 | $ | 517 | |||||||
Deposits for real-estate leases | 15 | 15 | |||||||||
Indemnification assets related to acquisitions | 107 | 110 | |||||||||
Mutual funds and fixed deposits | 96 | 87 | |||||||||
Company owned life insurance (at contract value) | 47 | 40 | |||||||||
Costs to obtain sales contracts | 176 | 171 | |||||||||
Derivative instruments designated as accounting hedges | 7 | 27 | |||||||||
Pension and other retirement employee benefits | 39 | 40 | |||||||||
Other | 88 | 85 | |||||||||
Total other assets | $ | 1,101 | $ | 1,092 | |||||||
Accounts payable and accrued liabilities: | |||||||||||
Salaries and benefits | $ | 113 | $ | 104 | |||||||
Incentive compensation | 166 | 276 | |||||||||
Customer credits, advanced payments and advanced billings | 99 | 102 | |||||||||
Dividends | 5 | 6 | |||||||||
Professional service fees | 47 | 49 | |||||||||
Accrued interest | 79 | 93 | |||||||||
Accounts payable | 37 | 52 | |||||||||
Income taxes | 112 | 86 | |||||||||
Pension and other retirement employee benefits | 7 | 7 | |||||||||
Accrued royalties | 26 | 23 | |||||||||
Foreign exchange forwards on certain assets and liabilities | 3 | 2 | |||||||||
Restructuring liability | 28 | 65 | |||||||||
Interest payable on interest rate and cross currency swaps | 62 | 51 | |||||||||
Other | 93 | 95 | |||||||||
Total accounts payable and accrued liabilities | $ | 877 | $ | 1,011 | |||||||
June 30, 2023 | December 31, 2022 | ||||||||||
Other liabilities: | |||||||||||
Pension and other retirement employee benefits | $ | 195 | $ | 189 | |||||||
Interest accrued on UTPs | 30 | 47 | |||||||||
MAKS indemnification provisions | 19 | 23 | |||||||||
Income tax liability - non-current portion | 15 | 48 | |||||||||
Derivative instruments designated as accounting hedges | 381 | 317 | |||||||||
Restructuring liability - non-current portion | 2 | — | |||||||||
Other | 47 | 50 | |||||||||
Total other liabilities | $ | 689 | $ | 674 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||
Equity method investments (1) | Equity method investments (1) | $ | 190 | $ | 187 | Equity method investments (1) | $ | 194 | $ | 187 | ||||||||||||
Investments measured using the measurement alternative (2) | Investments measured using the measurement alternative (2) | 325 | 325 | Investments measured using the measurement alternative (2) | 325 | 325 | ||||||||||||||||
Other | Other | 5 | 5 | Other | 7 | 5 | ||||||||||||||||
Total investments in non-consolidated affiliates | Total investments in non-consolidated affiliates | $ | 520 | $ | 517 | Total investments in non-consolidated affiliates | $ | 526 | $ | 517 | ||||||||||||
(1) Equity securities in which the Company has significant influence over the investee but does not have a controlling financial interest in accordance with ASC Topic 323. | (1) Equity securities in which the Company has significant influence over the investee but does not have a controlling financial interest in accordance with ASC Topic 323. | (1) Equity securities in which the Company has significant influence over the investee but does not have a controlling financial interest in accordance with ASC Topic 323. | ||||||||||||||||||||
(2) Equity securities without readily determinable fair value for which the Company has elected to apply the measurement alternative in accordance with ASC Topic 321. | (2) Equity securities without readily determinable fair value for which the Company has elected to apply the measurement alternative in accordance with ASC Topic 321. | (2) Equity securities without readily determinable fair value for which the Company has elected to apply the measurement alternative in accordance with ASC Topic 321. |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||
FX (loss) gain (1) | $ | (26) | $ | — | ||||||||||||||||||||||||||||||||||||||||||
FX loss (1) | FX loss (1) | $ | (5) | $ | (22) | $ | (31) | $ | (22) | |||||||||||||||||||||||||||||||||||||
Net periodic pension costs - other components | Net periodic pension costs - other components | 9 | 6 | Net periodic pension costs - other components | 9 | 6 | 18 | 12 | ||||||||||||||||||||||||||||||||||||||
Income from investments in non-consolidated affiliates | Income from investments in non-consolidated affiliates | 2 | 2 | Income from investments in non-consolidated affiliates | 1 | 2 | 3 | 4 | ||||||||||||||||||||||||||||||||||||||
Gains / losses on investments | Gains / losses on investments | 5 | (9) | 11 | (14) | |||||||||||||||||||||||||||||||||||||||||
Other(2) | Other(2) | 15 | (2) | Other (2) | 3 | 13 | 12 | 16 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | — | $ | 6 | Total | $ | 13 | $ | (10) | $ | 13 | $ | (4) |
Three Months Ended June 30, | Location in the consolidated statements of operations | ||||||||||||||||
Losses on currency translation adjustments | 2023 | 2022 | |||||||||||||||
Foreign currency translation adjustments - reclassification of losses included in net income | $ | — | $ | (20) | Other non-operating income, net | ||||||||||||
Total losses on currency translation adjustments | — | (20) | |||||||||||||||
Gains (losses) on cash flow hedges | |||||||||||||||||
Interest rate contract | — | — | Other non-operating income, net | ||||||||||||||
Income tax effect of item above | 1 | — | Provision for income taxes | ||||||||||||||
Total net gains (losses) on cash flow hedges | 1 | — | |||||||||||||||
Pension and other retirement benefits | |||||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | 2 | (1) | Other non-operating income, net | ||||||||||||||
Income tax effect of item above | (1) | — | Provision for income taxes | ||||||||||||||
Total pension and other retirement benefits | 1 | (1) | |||||||||||||||
Total net gains (losses) included in Net Income attributable to reclassifications out of AOCL | $ | 2 | $ | (21) | |||||||||||||
Six Months Ended June 30, | Location in the consolidated statements of operations | ||||||||||||||||
Losses on currency translation adjustments | 2023 | 2022 | |||||||||||||||
Foreign currency translation adjustments - reclassification of losses included in net income | $ | — | $ | (20) | Other non-operating income, net | ||||||||||||
Total losses on currency translation adjustments | — | (20) | |||||||||||||||
Losses on cash flow hedges | |||||||||||||||||
Interest rate contract | (1) | (1) | Other non-operating income, net | ||||||||||||||
Income tax effect of item above | 1 | — | Provision for income taxes | ||||||||||||||
Total net losses on cash flow hedges | — | (1) | |||||||||||||||
Pension and other retirement benefits | |||||||||||||||||
Amortization of actuarial losses and prior service costs included in net income | 2 | (1) | Other non-operating income, net | ||||||||||||||
Income tax effect of item above | (1) | — | Provision for income taxes | ||||||||||||||
Total pension and other retirement benefits | 1 | (1) | |||||||||||||||
Total net gains (losses) included in Net Income attributable to reclassifications out of AOCL | $ | 1 | $ | (22) |
Three Months Ended March 31, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | Gains/(Losses) | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | (47) | $ | (45) | $ | (736) | $ | 185 | $ | (643) | $ | (49) | $ | (47) | $ | (335) | $ | 21 | $ | (410) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, | Balance at March 31, | $ | (47) | $ | (44) | $ | (626) | $ | 128 | $ | (589) | $ | (51) | $ | (46) | $ | (442) | $ | 68 | $ | (471) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | Other comprehensive income/(loss) before reclassifications | — | — | 110 | (57) | 53 | (2) | — | (107) | 47 | (62) | Other comprehensive income/(loss) before reclassifications | — | — | 49 | (28) | 21 | 4 | — | (334) | 181 | (149) | ||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCL | Amounts reclassified from AOCL | — | 1 | — | — | 1 | — | 1 | — | — | 1 | Amounts reclassified from AOCL | (1) | (1) | — | — | (2) | 1 | — | 20 | — | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | Other comprehensive income/(loss) | — | 1 | 110 | (57) | 54 | (2) | 1 | (107) | 47 | (61) | Other comprehensive income/(loss) | (1) | (1) | 49 | (28) | 19 | 5 | — | (314) | 181 | (128) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, | $ | (47) | $ | (44) | $ | (626) | $ | 128 | $ | (589) | $ | (51) | $ | (46) | $ | (442) | $ | 68 | $ | (471) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, | Balance at June 30, | $ | (48) | $ | (45) | $ | (577) | $ | 100 | $ | (570) | $ | (46) | $ | (46) | $ | (756) | $ | 249 | $ | (599) |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Gains/(Losses) | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | Pension and Other Retirement Benefits | Cash Flow Hedges | Foreign Currency Translation Adjustments | Net Investment Hedges | Total | |||||||||||||||||||||||||
Balance at December 31, | $ | (47) | $ | (45) | $ | (736) | $ | 185 | $ | (643) | $ | (49) | $ | (47) | $ | (335) | $ | 21 | $ | (410) | |||||||||||||||
Other comprehensive income/(loss) before reclassifications | — | — | 159 | (85) | 74 | 2 | — | (441) | 228 | (211) | |||||||||||||||||||||||||
Amounts reclassified from AOCL | (1) | — | — | — | (1) | 1 | 1 | 20 | — | 22 | |||||||||||||||||||||||||
Other comprehensive income/(loss) | (1) | — | 159 | (85) | 73 | 3 | 1 | (421) | 228 | (189) | |||||||||||||||||||||||||
Balance at June 30, | $ | (48) | $ | (45) | $ | (577) | $ | 100 | $ | (570) | $ | (46) | $ | (46) | $ | (756) | $ | 249 | $ | (599) | |||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable: | Notes Payable: | Principal Amount | Fair Value of Interest Rate Swaps (1) | Unamortized (Discount) Premium | Unamortized Debt Issuance Costs | Carrying Value | Notes Payable: | Principal Amount | Fair Value of Interest Rate Swaps (1) | Unamortized (Discount) Premium | Unamortized Debt Issuance Costs | Carrying Value | ||||||||||||||||||||||||||||||||||||||||||||||
4.875% 2013 Senior Notes, due 2024 | 4.875% 2013 Senior Notes, due 2024 | $ | 500 | $ | — | $ | — | $ | (1) | $ | 499 | 4.875% 2013 Senior Notes, due 2024 | $ | 300 | $ | — | $ | — | $ | — | $ | 300 | ||||||||||||||||||||||||||||||||||||
5.25% 2014 Senior Notes, due 2044 | 5.25% 2014 Senior Notes, due 2044 | 600 | (37) | 3 | (4) | 562 | 5.25% 2014 Senior Notes, due 2044 | 600 | (42) | 3 | (4) | 557 | ||||||||||||||||||||||||||||||||||||||||||||||
1.75% 2015 Senior Notes, due 2027 | 1.75% 2015 Senior Notes, due 2027 | 543 | — | — | (2) | 541 | 1.75% 2015 Senior Notes, due 2027 | 546 | — | — | (2) | 544 | ||||||||||||||||||||||||||||||||||||||||||||||
3.25% 2017 Senior Notes, due 2028 | 3.25% 2017 Senior Notes, due 2028 | 500 | (31) | (3) | (2) | 464 | 3.25% 2017 Senior Notes, due 2028 | 500 | (37) | (3) | (2) | 458 | ||||||||||||||||||||||||||||||||||||||||||||||
4.25% 2018 Senior Notes, due 2029 | 4.25% 2018 Senior Notes, due 2029 | 400 | (34) | (2) | (2) | 362 | 4.25% 2018 Senior Notes, due 2029 | 400 | (42) | (2) | (2) | 354 | ||||||||||||||||||||||||||||||||||||||||||||||
4.875% 2018 Senior Notes, due 2048 | 4.875% 2018 Senior Notes, due 2048 | 400 | (38) | (6) | (4) | 352 | 4.875% 2018 Senior Notes, due 2048 | 400 | (44) | (6) | (4) | 346 | ||||||||||||||||||||||||||||||||||||||||||||||
0.950% 2019 Senior Notes, due 2030 | 0.950% 2019 Senior Notes, due 2030 | 815 | — | (2) | (4) | 809 | 0.950% 2019 Senior Notes, due 2030 | 818 | — | (2) | (4) | 812 | ||||||||||||||||||||||||||||||||||||||||||||||
3.75% 2020 Senior Notes, due 2025 | 3.75% 2020 Senior Notes, due 2025 | 700 | (23) | — | (3) | 674 | 3.75% 2020 Senior Notes, due 2025 | 700 | (24) | — | (2) | 674 | ||||||||||||||||||||||||||||||||||||||||||||||
3.25% 2020 Senior Notes, due 2050 | 3.25% 2020 Senior Notes, due 2050 | 300 | — | (4) | (3) | 293 | 3.25% 2020 Senior Notes, due 2050 | 300 | — | (4) | (3) | 293 | ||||||||||||||||||||||||||||||||||||||||||||||
2.55% 2020 Senior Notes, due 2060 | 2.55% 2020 Senior Notes, due 2060 | 300 | — | (2) | (3) | 295 | 2.55% 2020 Senior Notes, due 2060 | 300 | — | (2) | (3) | 295 | ||||||||||||||||||||||||||||||||||||||||||||||
2.00% 2021 Senior Notes, due 2031 | 2.00% 2021 Senior Notes, due 2031 | 600 | — | (7) | (4) | 589 | 2.00% 2021 Senior Notes, due 2031 | 600 | — | (7) | (4) | 589 | ||||||||||||||||||||||||||||||||||||||||||||||
2.75% 2021 Senior Notes, due 2041 | 2.75% 2021 Senior Notes, due 2041 | 600 | — | (13) | (5) | 582 | 2.75% 2021 Senior Notes, due 2041 | 600 | — | (13) | (5) | 582 | ||||||||||||||||||||||||||||||||||||||||||||||
3.10% 2021 Senior Notes, due 2061 | 3.10% 2021 Senior Notes, due 2061 | 500 | — | (7) | (5) | 488 | 3.10% 2021 Senior Notes, due 2061 | 500 | — | (7) | (5) | 488 | ||||||||||||||||||||||||||||||||||||||||||||||
3.75% 2022 Senior Notes, due 2052 | 3.75% 2022 Senior Notes, due 2052 | 500 | (21) | (8) | (5) | 466 | 3.75% 2022 Senior Notes, due 2052 | 500 | (36) | (8) | (5) | 451 | ||||||||||||||||||||||||||||||||||||||||||||||
4.25% 2022 Senior Notes, due 2032 | 4.25% 2022 Senior Notes, due 2032 | 500 | (8) | (2) | (4) | 486 | 4.25% 2022 Senior Notes, due 2032 | 500 | (14) | (2) | (4) | 480 | ||||||||||||||||||||||||||||||||||||||||||||||
Total debt | Total debt | $ | 7,758 | $ | (192) | $ | (53) | $ | (51) | $ | 7,462 | Total debt | $ | 7,564 | $ | (239) | $ | (53) | $ | (49) | $ | 7,223 | ||||||||||||||||||||||||||||||||||||
Current portion | Current portion | (499) | Current portion | (300) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt | Total long-term debt | $ | 6,963 | Total long-term debt | $ | 6,923 |
December 31, 2022 | |||||||||||||||||||||||||||||
Notes Payable: | Principal Amount | Fair Value of Interest Rate Swaps (1) | Unamortized (Discount) Premium | Unamortized Debt Issuance Costs | Carrying Value | ||||||||||||||||||||||||
4.875% 2013 Senior Notes, due 2024 | $ | 500 | $ | — | $ | (1) | $ | (1) | $ | 498 | |||||||||||||||||||
5.25% 2014 Senior Notes, due 2044 | 600 | (42) | 3 | (4) | 557 | ||||||||||||||||||||||||
1.75% 2015 Senior Notes, due 2027 | 534 | — | — | (2) | 532 | ||||||||||||||||||||||||
3.25% 2017 Senior Notes, due 2028 | 500 | (37) | (3) | (2) | 458 | ||||||||||||||||||||||||
4.25% 2018 Senior Notes, due 2029 | 400 | (42) | (2) | (2) | 354 | ||||||||||||||||||||||||
4.875% 2018 Senior Notes, due 2048 | 400 | (44) | (6) | (4) | 346 | ||||||||||||||||||||||||
0.950% 2019 Senior Notes, due 2030 | 800 | — | (2) | (4) | 794 | ||||||||||||||||||||||||
3.75% 2020 Senior Notes, due 2025 | 700 | (27) | (1) | (3) | 669 | ||||||||||||||||||||||||
3.25% 2020 Senior Notes, due 2050 | 300 | — | (4) | (3) | 293 | ||||||||||||||||||||||||
2.55% 2020 Senior Notes, due 2060 | 300 | — | (2) | (3) | 295 | ||||||||||||||||||||||||
2.00% 2021 Senior Notes, due 2031 | 600 | — | (7) | (4) | 589 | ||||||||||||||||||||||||
2.75% 2021 Senior Notes, due 2041 | 600 | — | (13) | (5) | 582 | ||||||||||||||||||||||||
3.10% 2021 Senior Notes, due 2061 | 500 | — | (7) | (5) | 488 | ||||||||||||||||||||||||
3.75% 2022 Senior Notes, due 2052 | 500 | (35) | (8) | (5) | 452 | ||||||||||||||||||||||||
4.25% 2022 Senior Notes, due 2032 | 500 | (12) | (2) | (4) | 482 | ||||||||||||||||||||||||
Total long-term debt | $ | 7,734 | $ | (239) | $ | (55) | $ | (51) | $ | 7,389 |
Year Ending December 31, | Year Ending December 31, | Year Ending Total | Year Ending December 31, | Year Ending Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 (After March 31,) | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 (After June 30,) | 2023 (After June 30,) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2024 | 500 | 2024 | 300 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 | 2025 | 700 | 2025 | 700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2026 | 2026 | — | 2026 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2027 | 2027 | 543 | 2027 | 546 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Thereafter | Thereafter | 6,015 | Thereafter | 6,018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 7,758 | Total | $ | 7,564 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Income | Income | $ | 10 | $ | 2 | Income | $ | 15 | $ | 2 | $ | 25 | $ | 4 | |||||||||||||||||||||||||||||||||||
Expense on borrowings | Expense on borrowings | (70) | (48) | Expense on borrowings | (75) | (50) | (145) | (98) | |||||||||||||||||||||||||||||||||||||||||
Income (expense) on UTPs and other tax related liabilities(1) | Income (expense) on UTPs and other tax related liabilities(1) | 18 | (3) | Income (expense) on UTPs and other tax related liabilities(1) | (4) | (3) | 14 | (6) | |||||||||||||||||||||||||||||||||||||||||
Net periodic pension costs - interest component | Net periodic pension costs - interest component | (6) | (4) | Net periodic pension costs - interest component | (7) | (4) | (13) | (8) | |||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | $ | (48) | $ | (53) | Interest expense, net | $ | (71) | $ | (55) | $ | (119) | $ | (108) | |||||||||||||||||||||||||||||||||||
Interest paid(2) | Interest paid(2) | $ | 96 | $ | 78 | Interest paid(2) | $ | 47 | $ | 12 | $ | 143 | $ | 90 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||
Long-term debt | $ | 7,462 | $ | 6,744 | $ | 7,389 | $ | 6,564 |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||
Total debt | $ | 7,223 | $ | 6,369 | $ | 7,389 | $ | 6,564 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||
Operating lease cost | Operating lease cost | $ | 24 | $ | 27 | Operating lease cost | $ | 23 | $ | 25 | $ | 47 | $ | 52 | ||||||||||||||||||||||||||||||||
Sublease income | Sublease income | (2) | (2) | Sublease income | (2) | (2) | (4) | (4) | ||||||||||||||||||||||||||||||||||||||
Variable lease cost | Variable lease cost | 5 | 5 | Variable lease cost | 5 | 5 | 10 | 10 | ||||||||||||||||||||||||||||||||||||||
Total lease cost | Total lease cost | $ | 27 | $ | 30 | Total lease cost | $ | 26 | $ | 28 | $ | 53 | $ | 58 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | Cash paid for amounts included in the measurement of operating lease liabilities | $ | 30 | $ | 31 | Cash paid for amounts included in the measurement of operating lease liabilities | $ | 30 | $ | 29 | $ | 60 | $ | 60 | ||||||||||||||||||||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 5 | $ | 15 | Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 19 | $ | 15 | $ | 24 | $ | 30 |
March 31, 2023 | March 31, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
Weighted-average remaining lease term | Weighted-average remaining lease term | 4.8 years | 5.5 years | Weighted-average remaining lease term | 4.8 years | 5.3 years | ||||||||||||||||||||||
Weighted-average discount rate applied to operating leases | Weighted-average discount rate applied to operating leases | 3.1 | % | 3.1 | % | Weighted-average discount rate applied to operating leases | 3.2 | % | 3.1 | % |
Year Ending December 31, | Year Ending December 31, | Operating Leases | Year Ending December 31, | Operating Leases | ||||||||||||
2023 (After March 31,) | $ | 90 | ||||||||||||||
2023 (After June 30,) | 2023 (After June 30,) | $ | 60 | |||||||||||||
2024 | 2024 | 113 | 2024 | 115 | ||||||||||||
2025 | 2025 | 100 | 2025 | 103 | ||||||||||||
2026 | 2026 | 81 | 2026 | 84 | ||||||||||||
2027 | 2027 | 65 | 2027 | 68 | ||||||||||||
After 2027 | After 2027 | 41 | After 2027 | 54 | ||||||||||||
Total lease payments (undiscounted) | Total lease payments (undiscounted) | 490 | Total lease payments (undiscounted) | 484 | ||||||||||||
Less: Interest | Less: Interest | 35 | Less: Interest | 35 | ||||||||||||
Present value of lease liabilities: | Present value of lease liabilities: | $ | 455 | Present value of lease liabilities: | $ | 449 | ||||||||||
Lease liabilities - current | Lease liabilities - current | $ | 106 | Lease liabilities - current | $ | 105 | ||||||||||
Lease liabilities - noncurrent | Lease liabilities - noncurrent | $ | 349 | Lease liabilities - noncurrent | $ | 344 |
Three Months Ended March 31, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MA | MIS | Eliminations | Consolidated | MA | MIS | Eliminations | Consolidated | MA | MIS | Eliminations | Consolidated | MA | MIS | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total external revenue | Total external revenue | $ | 737 | $ | 733 | $ | — | $ | 1,470 | $ | 695 | $ | 827 | $ | — | $ | 1,522 | Total external revenue | $ | 747 | $ | 747 | $ | — | $ | 1,494 | $ | 675 | $ | 706 | $ | — | $ | 1,381 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 3 | 45 | (48) | — | 2 | 43 | (45) | — | Intersegment revenue | 4 | 46 | (50) | — | 1 | 43 | (44) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue | 740 | 778 | (48) | 1,470 | 697 | 870 | (45) | 1,522 | Revenue | 751 | 793 | (50) | 1,494 | 676 | 749 | (44) | 1,381 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating, SG&A | Operating, SG&A | 526 | 336 | (48) | 814 | 473 | 360 | (45) | 788 | Operating, SG&A | 541 | 350 | (50) | 841 | 471 | 334 | (44) | 761 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income | Adjusted Operating Income | $ | 214 | $ | 442 | $ | — | $ | 656 | $ | 224 | $ | 510 | $ | — | $ | 734 | Adjusted Operating Income | $ | 210 | $ | 443 | $ | — | $ | 653 | $ | 205 | $ | 415 | $ | — | $ | 620 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Add: | Add: | Add: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 70 | 18 | — | 88 | 60 | 18 | — | 78 | Depreciation and amortization | 74 | 19 | — | 93 | 60 | 21 | — | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring | 8 | 6 | — | 14 | — | — | — | — | Restructuring | 8 | 2 | — | 10 | 16 | 15 | — | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Income | Operating Income | $ | 554 | $ | 656 | Operating Income | $ | 550 | $ | 508 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
MA | MIS | Eliminations | Consolidated | MA | MIS | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||||||
Total external revenue | $ | 1,484 | $ | 1,480 | $ | — | $ | 2,964 | $ | 1,370 | $ | 1,533 | $ | — | $ | 2,903 | |||||||||||||||||||||||||||||||
Intersegment revenue | 7 | 91 | (98) | — | 3 | 86 | (89) | — | |||||||||||||||||||||||||||||||||||||||
Revenue | 1,491 | 1,571 | (98) | 2,964 | 1,373 | 1,619 | (89) | 2,903 | |||||||||||||||||||||||||||||||||||||||
Operating, SG&A | 1,067 | 686 | (98) | 1,655 | 944 | 694 | (89) | 1,549 | |||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income | $ | 424 | $ | 885 | $ | — | $ | 1,309 | $ | 429 | $ | 925 | $ | — | $ | 1,354 | |||||||||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 144 | 37 | — | 181 | 120 | 39 | — | 159 | |||||||||||||||||||||||||||||||||||||||
Restructuring | 16 | 8 | — | 24 | 16 | 15 | — | 31 | |||||||||||||||||||||||||||||||||||||||
Operating Income | $ | 1,104 | $ | 1,164 |
MA | MIS | Total | |||||||||||||||
2022 - 2023 Geolocation Restructuring Program | $ | 57 | $ | 70 | $ | 127 |
MA | MIS | Total | |||||||||||||||
2022 - 2023 Geolocation Restructuring Program | $ | 65 | $ | 72 | $ | 137 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||
United States | United States | $ | 770 | $ | 823 | United States | $ | 782 | $ | 723 | $ | 1,552 | $ | 1,546 | ||||||||||||||||||||||||||||||||
Non-U.S.: | Non-U.S.: | Non-U.S.: | ||||||||||||||||||||||||||||||||||||||||||||
EMEA | EMEA | 451 | 457 | EMEA | 470 | 422 | 921 | 878 | ||||||||||||||||||||||||||||||||||||||
Asia-Pacific | Asia-Pacific | 151 | 141 | Asia-Pacific | 146 | 151 | 297 | 293 | ||||||||||||||||||||||||||||||||||||||
Americas | Americas | 98 | 101 | Americas | 96 | 85 | 194 | 186 | ||||||||||||||||||||||||||||||||||||||
Total Non-U.S. | Total Non-U.S. | 700 | 699 | Total Non-U.S. | 712 | 658 | 1,412 | 1,357 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,470 | $ | 1,522 | Total | $ | 1,494 | $ | 1,381 | $ | 2,964 | $ | 2,903 |
Provider of financial intelligence and analytical tools supporting customers’ growth, efficiency and risk management objectives | Global | Independent provider of credit rating opinions and related information for over 100 years | |||||||||||||||
Three Pillars of Moody's Sustainability Strategy | |||||||||||||||||||||||
Better Business | Better Lives | Better Solutions | |||||||||||||||||||||
For Moody's operations and value chain | For Moody's people and communities | For market transformation | |||||||||||||||||||||
Strive to embed responsible, sustainable decision-making into our operations and value chain. | Aim to foster a nurturing and inclusive culture across Moody's people and communities. | Deliver trusted perspectives |
Three Months Ended March 31, | ||||||||||||||
Financial measure: | 2023 | 2022 | % Change Favorable (Unfavorable) | Insight and Key Drivers of Change Compared to Prior Year | ||||||||||
Moody's total revenue | $ | 1,470 | $ | 1,522 | (3 | %) | — reflects lower MIS revenue partially offset by growth in MA | |||||||
MA external revenue | $ | 737 | $ | 695 | 6 | % | — sustained demand for KYC and insurance solutions as well as ratings data feeds; partially offset by: — unfavorable changes in FX translation rates | |||||||
MIS external revenue | $ | 733 | $ | 827 | (11 | %) | — ongoing uncertainty around inflation, interest rates, recessionary concerns and stress in the banking sector broadly impacted credit markets, constraining rated issuance volumes across most LOBs | |||||||
Total operating and SG&A expenses | $ | 814 | $ | 788 | (3 | %) | — higher incentive compensation accruals; — hiring in MA coupled with annual salary increases; and — costs to support organic investments; partially offset by: — favorable changes in FX translation rates; and — benefits from cost management initiatives | |||||||
Depreciation and amortization | $ | 88 | $ | 78 | (13 | %) | — higher amortization relating to internally developed software, primarily related to the development of MA SaaS solutions | |||||||
Restructuring | $ | 14 | $ | — | NM | — relates to the Company's 2022 - 2023 Geolocation Restructuring Program, more fully discussed in Note 10 to the condensed consolidated financial statements | ||||||||
Total non-operating (expense) income, net | $ | (48) | $ | (47) | (2 %) | — reflects $26 million of FX losses recorded in the first quarter of 2023, mostly offset by lower tax-related interest expense related to the resolutions of tax matters | ||||||||
Operating margin | 37.7 | % | 43.1 | % | (540 | BPS) | — margin declines primarily due to the aforementioned decrease in MIS revenue coupled with an increase in operating and SG&A expenses in MA to support growth | |||||||
Adjusted Operating Margin | 44.6 | % | 48.2 | % | (360 | BPS) | ||||||||
ETR | 1.0 | % | 18.2 | % | (1,720 | BPS) | — significantly lower ETR reflects tax benefits recognized in the first quarter of 2023, which resulted from the resolutions of uncertain tax positions in various U.S. and non-U.S. tax jurisdictions | |||||||
Diluted EPS | $ | 2.72 | $ | 2.68 | 1 | % | — increase reflects a $0.75/share benefit related to the resolutions of tax matters in the first quarter of 2023, partially offset by lower operating income/Adjusted Operating Income | |||||||
Adjusted Diluted EPS | $ | 2.99 | $ | 2.89 | 3 | % |
Three Months Ended June 30, | ||||||||||||||
Financial measure: | 2023 | 2022 | % Change Favorable (Unfavorable) | Insight and Key Drivers of Change Compared to Prior Year | ||||||||||
Moody's total revenue | $ | 1,494 | $ | 1,381 | 8 | % | — reflects growth in both segments | |||||||
MA external revenue | $ | 747 | $ | 675 | 11 | % | — sustained demand for KYC and insurance solutions; — continued growth from SaaS-based banking offerings; and — ongoing strong retention and new sales for ratings data feeds | |||||||
MIS external revenue | $ | 747 | $ | 706 | 6 | % | — increased investment-grade and speculative-grade corporate debt issuance relative to suppressed activity in the prior year; partially offset by: — declines across most asset classes in SFG reflecting a decrease in securitization activity amidst capital market volatility | |||||||
Total operating and SG&A expenses | $ | 841 | $ | 761 | (11 | %) | — higher incentive compensation accruals and performance-based equity compensation aligned with actual/expected financial and operating performance; and — costs to support continued investment in product and technology innovation initiatives | |||||||
Depreciation and amortization | $ | 93 | $ | 81 | (15 | %) | — higher amortization of internally developed software, primarily related to the development of MA SaaS solutions | |||||||
Restructuring | $ | 10 | $ | 31 | 68 | % | — relates to the Company's 2022 - 2023 Geolocation Restructuring Program, more fully discussed in Note 10 to the condensed consolidated financial statements | |||||||
Total non-operating (expense) income, net | $ | (58) | $ | (65) | 11 % | Expense decline primarily due to: — FX translation losses of $20 million reclassified to earnings in the prior year resulting from the Company no longer conducting commercial operations in Russia; — higher gains on certain of the Company's investments of $14 million; and — higher interest income of $13 million resulting from higher cash balances and interest yields; partially offset by: — higher realized losses of $24 million on fixed-to-floating interest rate swaps resulting from higher interest rates (more fully discussed in Note 8 to the condensed consolidated financial statements) | ||||||||
Operating margin | 36.8 | % | 36.8 | % | — | BPS | — operating margin was flat, with revenue growth offset by an increase in operating and SG&A expenses — adjusted operating margin decrease reflects growth in operating and SG&A expenses outpacing revenue growth | |||||||
Adjusted Operating Margin | 43.7 | % | 44.9 | % | (120 | BPS) | ||||||||
ETR | 23.4 | % | 26.2 | % | (280 | BPS) | — lower ETR is primarily due to higher excess tax benefits realized from stock-based compensation, along with a non-deductible FX translation loss in 2022 resulting from the Company no longer conducting commercial operations in Russia | |||||||
Diluted EPS | $ | 2.05 | $ | 1.77 | 16 | % | — reflects higher operating income and Adjusted Operating Income | |||||||
Adjusted Diluted EPS | $ | 2.30 | $ | 2.22 | 4 | % |
Three Months Ended March 31, | % Change Favorable (Unfavorable) | Three Months Ended June 30, | % Change Favorable (Unfavorable) | |||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Revenue: | Revenue: | Revenue: | ||||||||||||||||||||||||||||||||
United States | United States | $ | 770 | $ | 823 | (6 | %) | United States | $ | 782 | $ | 723 | 8 | % | ||||||||||||||||||||
Non-U.S.: | Non-U.S.: | Non-U.S.: | ||||||||||||||||||||||||||||||||
EMEA | EMEA | 451 | 457 | (1 | %) | EMEA | 470 | 422 | 11 | % | ||||||||||||||||||||||||
Asia-Pacific | Asia-Pacific | 151 | 141 | 7 | % | Asia-Pacific | 146 | 151 | (3 | %) | ||||||||||||||||||||||||
Americas | Americas | 98 | 101 | (3 | %) | Americas | 96 | 85 | 13 | % | ||||||||||||||||||||||||
Total Non-U.S. | Total Non-U.S. | 700 | 699 | — | % | Total Non-U.S. | 712 | 658 | 8 | % | ||||||||||||||||||||||||
Total | Total | 1,470 | 1,522 | (3 | %) | Total | 1,494 | 1,381 | 8 | % | ||||||||||||||||||||||||
Expenses: | Expenses: | Expenses: | ||||||||||||||||||||||||||||||||
Operating | Operating | 428 | 417 | (3 | %) | Operating | 426 | 393 | (8 | %) | ||||||||||||||||||||||||
SG&A | SG&A | 386 | 371 | (4 | %) | SG&A | 415 | 368 | (13 | %) | ||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 88 | 78 | (13 | %) | Depreciation and amortization | 93 | 81 | (15 | %) | ||||||||||||||||||||||||
Restructuring | Restructuring | 14 | — | NM | Restructuring | 10 | 31 | 68 | % | |||||||||||||||||||||||||
Total | Total | 916 | 866 | (6 | %) | Total | 944 | 873 | (8 | %) | ||||||||||||||||||||||||
Operating income | Operating income | $ | 554 | $ | 656 | (16 | %) | Operating income | $ | 550 | $ | 508 | 8 | % | ||||||||||||||||||||
Adjusted Operating Income (3) | Adjusted Operating Income (3) | $ | 656 | $ | 734 | (11 | %) | Adjusted Operating Income (3) | $ | 653 | $ | 620 | 5 | % | ||||||||||||||||||||
Interest expense, net | Interest expense, net | $ | (48) | $ | (53) | 9 | % | Interest expense, net | $ | (71) | $ | (55) | (29 | %) | ||||||||||||||||||||
Other non-operating income, net | Other non-operating income, net | — | 6 | (100 | %) | Other non-operating income, net | 13 | (10) | (230 | %) | ||||||||||||||||||||||||
Non-operating (expense) income, net | Non-operating (expense) income, net | $ | (48) | $ | (47) | (2 | %) | Non-operating (expense) income, net | $ | (58) | $ | (65) | 11 | % | ||||||||||||||||||||
Net income attributable to Moody's | Net income attributable to Moody's | $ | 501 | $ | 498 | 1 | % | Net income attributable to Moody's | $ | 377 | $ | 327 | 15 | % | ||||||||||||||||||||
Diluted weighted average shares outstanding | Diluted weighted average shares outstanding | 184.1 | 186.1 | 1 | % | Diluted weighted average shares outstanding | 184.1 | 184.9 | — | % | ||||||||||||||||||||||||
Diluted EPS attributable to Moody's common shareholders | Diluted EPS attributable to Moody's common shareholders | $ | 2.72 | $ | 2.68 | 1 | % | Diluted EPS attributable to Moody's common shareholders | $ | 2.05 | $ | 1.77 | 16 | % | ||||||||||||||||||||
Adjusted Diluted EPS (3) | Adjusted Diluted EPS (3) | $ | 2.99 | $ | 2.89 | 3 | % | Adjusted Diluted EPS (3) | $ | 2.30 | $ | 2.22 | 4 | % | ||||||||||||||||||||
Operating margin | Operating margin | 37.7 | % | 43.1 | % | Operating margin | 36.8 | % | 36.8 | % | ||||||||||||||||||||||||
Adjusted Operating Margin(3) | Adjusted Operating Margin(3) | 44.6 | % | 48.2 | % | Adjusted Operating Margin(3) | 43.7 | % | 44.9 | % | ||||||||||||||||||||||||
Effective tax rate | Effective tax rate | 1.0 | % | 18.2 | % | Effective tax rate | 23.4 | % | 26.2 | % |
March 31, | Change | June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | % | 2023 | 2022 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
MA | MA | U.S. | 2,899 | 2,708 | 7 | % | MA | U.S. | 3,036 | 2,740 | 11 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. | 4,412 | 4,076 | 8 | % | Non-U.S. | 4,750 | 4,179 | 14 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 7,311 | 6,784 | 8 | % | Total | 7,786 | 6,919 | 13 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
MIS | MIS | U.S. | 1,488 | 1,504 | (1 | %) | MIS | U.S. | 1,427 | 1,527 | (7 | %) | ||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. | 3,975 | 3,895 | 2 | % | Non-U.S. | 3,742 | 3,991 | (6 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 5,463 | 5,399 | 1 | % | Total | 5,169 | 5,518 | (6 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||
MSS | MSS | U.S. | 659 | 749 | (12 | %) | MSS | U.S. | 658 | 765 | (14 | %) | ||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. | 986 | 981 | 1 | % | Non-U.S. | 1,022 | 1,004 | 2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 1,645 | 1,730 | (5 | %) | Total | 1,680 | 1,769 | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||
Total MCO | Total MCO | U.S. | 5,046 | 4,961 | 2 | % | Total MCO | U.S. | 5,121 | 5,032 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. | 9,373 | 8,952 | 5 | % | Non-U.S. | 9,514 | 9,174 | 4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 14,419 | 13,913 | 4 | % | Total | 14,635 | 14,206 | 3 | % |
Three months ended |
Global revenue | U.S. Revenue | Non-U.S. Revenue ⇑ |
Compensation expenses increased | Compensation expenses increased | ||||||||||||||||
— approximately 90% of the increase reflects higher | — approximately 60% of the increase reflects higher incentive compensation accruals | ||||||||||||||||
— approximately 20% of the increase reflects higher salaries and benefits | |||||||||||||||||
Non-compensation expenses increased $11 million reflecting: | |||||||||||||||||
— | |||||||||||||||||
— | |||||||||||||||||
Depreciation and amortization |
Restructuring |
Operating margin | Adjusted Operating Margin |
Interest Expense, net | Other non-operating income |
— higher | ||||||||||||||
— FX translation losses of $20 million reclassified to earnings in the prior year resulting from the Company no longer conducting commercial operations in Russia; and | ||||||||||||||
— higher interest income of $13 million reflecting higher cash balances and interest yields. | — higher gains of $15 million on certain of the Company's investments; partially offset by | |||||||||||||
— | ||||||||||||||
MAKS divestiture. |
ETR ⇓ |
Diluted EPS ⇑ | Adjusted Diluted EPS ⇑ |
Three Months Ended March 31, | % Change Favorable (Unfavorable) | Three Months Ended June 30, | % Change Favorable (Unfavorable) | |||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Revenue: | Revenue: | Revenue: | ||||||||||||||||||||||||||||||||
Decision Solutions (DS) | Decision Solutions (DS) | $ | 354 | $ | 334 | 6 | % | Decision Solutions (DS) | $ | 334 | $ | 294 | 14 | % | ||||||||||||||||||||
Research and Insights (R&I) | Research and Insights (R&I) | 195 | 183 | 7 | % | Research and Insights (R&I) | 217 | 203 | 7 | % | ||||||||||||||||||||||||
Data and Information (D&I) | Data and Information (D&I) | 188 | 178 | 6 | % | Data and Information (D&I) | 196 | 178 | 10 | % | ||||||||||||||||||||||||
Total external revenue | Total external revenue | 737 | 695 | 6 | % | Total external revenue | 747 | 675 | 11 | % | ||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 3 | 2 | 50 | % | Intersegment revenue | 4 | 1 | 300 | % | ||||||||||||||||||||||||
Total MA revenue | Total MA revenue | 740 | 697 | 6 | % | Total MA revenue | 751 | 676 | 11 | % | ||||||||||||||||||||||||
Expenses: | Expenses: | Expenses: | ||||||||||||||||||||||||||||||||
Operating and SG&A (external) | Operating and SG&A (external) | 481 | 430 | (12 | %) | Operating and SG&A (external) | 495 | 428 | (16 | %) | ||||||||||||||||||||||||
Operating and SG&A (intersegment) | Operating and SG&A (intersegment) | 45 | 43 | (5 | %) | Operating and SG&A (intersegment) | 46 | 43 | (7 | %) | ||||||||||||||||||||||||
Total operating and SG&A | Total operating and SG&A | 526 | 473 | (11 | %) | Total operating and SG&A | 541 | 471 | (15 | %) | ||||||||||||||||||||||||
Adjusted Operating Income | Adjusted Operating Income | $ | 214 | $ | 224 | (4 | %) | Adjusted Operating Income | $ | 210 | $ | 205 | 2 | % | ||||||||||||||||||||
Adjusted Operating Margin | Adjusted Operating Margin | 28.9 | % | 32.1 | % | Adjusted Operating Margin | 28.0 | % | 30.3 | % | ||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 70 | 60 | (17 | %) | Depreciation and amortization | 74 | 60 | (23 | %) | ||||||||||||||||||||||||
Restructuring | Restructuring | 8 | — | NM | Restructuring | 8 | 16 | 50 | % |
Three months ended |
MA: Global revenue ⇑ | U.S. Revenue ⇑ | Non-U.S. Revenue ⇑ |
Three months ended |
DS: Global revenue ⇑ | U.S. Revenue ⇑ | Non-U.S. Revenue ⇑ |
Three months ended |
R&I: Global revenue ⇑ | U.S. Revenue ⇑ | Non-U.S. Revenue ⇑ $10 million |
Three months ended |
D&I: Global revenue ⇑ | U.S. Revenue ⇑ | Non-U.S. Revenue ⇑ |
MA: |
Compensation costs | Non-compensation costs | |||||||
— approximately half of the growth relates to higher salaries and benefits | — approximately half of the increase reflects higher | |||||||
— approximately 40% of the growth reflects higher incentive and performance-based equity compensation accruals | — approximately 20% of the increase reflects higher bad debt expense; and | |||||||
— approximately 20% of the increase reflects higher travel and entertainment costs | ||||||||
MA: Adjusted Operating Margin |
Depreciation and amortization |
Restructuring Charge |
Three Months Ended March 31, | % Change Favorable (Unfavorable) | Three Months Ended June 30, | % Change Favorable (Unfavorable) | |||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Revenue: | Revenue: | Revenue: | ||||||||||||||||||||||||||||||||
Corporate finance (CFG) | Corporate finance (CFG) | $ | 356 | $ | 417 | (15 | %) | Corporate finance (CFG) | $ | 365 | $ | 322 | 13 | % | ||||||||||||||||||||
Structured finance (SFG) | Structured finance (SFG) | 99 | 144 | (31 | %) | Structured finance (SFG) | 102 | 123 | (17 | %) | ||||||||||||||||||||||||
Financial institutions (FIG) | Financial institutions (FIG) | 142 | 131 | 8 | % | Financial institutions (FIG) | 145 | 128 | 13 | % | ||||||||||||||||||||||||
Public, project and infrastructure finance (PPIF) | Public, project and infrastructure finance (PPIF) | 129 | 123 | 5 | % | Public, project and infrastructure finance (PPIF) | 127 | 122 | 4 | % | ||||||||||||||||||||||||
Total ratings revenue | Total ratings revenue | 726 | 815 | (11 | %) | Total ratings revenue | 739 | 695 | 6 | % | ||||||||||||||||||||||||
MIS Other | MIS Other | 7 | 12 | (42 | %) | MIS Other | 8 | 11 | (27 | %) | ||||||||||||||||||||||||
Total external revenue | Total external revenue | 733 | 827 | (11 | %) | Total external revenue | 747 | 706 | 6 | % | ||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 45 | 43 | 5 | % | Intersegment revenue | 46 | 43 | 7 | % | ||||||||||||||||||||||||
Total MIS revenue | Total MIS revenue | 778 | 870 | (11 | %) | Total MIS revenue | 793 | 749 | 6 | % | ||||||||||||||||||||||||
Expenses: | Expenses: | Expenses: | ||||||||||||||||||||||||||||||||
Operating and SG&A (external) | Operating and SG&A (external) | 333 | 358 | 7 | % | Operating and SG&A (external) | 346 | 333 | (4 | %) | ||||||||||||||||||||||||
Operating and SG&A (intersegment) | Operating and SG&A (intersegment) | 3 | 2 | (50 | %) | Operating and SG&A (intersegment) | 4 | 1 | (300 | %) | ||||||||||||||||||||||||
Total operating and SG&A | Total operating and SG&A | 336 | 360 | 7 | % | Total operating and SG&A | 350 | 334 | (5 | %) | ||||||||||||||||||||||||
Adjusted Operating Income | Adjusted Operating Income | $ | 442 | $ | 510 | (13 | %) | Adjusted Operating Income | $ | 443 | $ | 415 | 7 | % | ||||||||||||||||||||
Adjusted Operating Margin | Adjusted Operating Margin | 56.8 | % | 58.6 | % | Adjusted Operating Margin | 55.9 | % | 55.4 | % | ||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 18 | 18 | — | % | Depreciation and amortization | 19 | 21 | 10 | % | ||||||||||||||||||||||||
Restructuring | Restructuring | 6 | — | NM | Restructuring | 2 | 15 | 87 | % |
Three months ended |
MIS: Global revenue | U.S. Revenue | Non-U.S. Revenue |
Three months ended |
CFG: Global revenue | U.S. Revenue | Non-U.S. Revenue |
Three months ended |
SFG: Global revenue ⇓ | U.S. Revenue ⇓ | Non-U.S. Revenue |
Three months ended |
FIG: Global revenue ⇑ | U.S. Revenue | Non-U.S. Revenue |
Three months ended |
PPIF: Global revenue ⇑ | U.S. Revenue ⇑ | Non-U.S. Revenue |
MIS: |
Compensation costs | Non-compensation costs | |||||||
Notable drivers of expense growth: | ||||||||
— higher incentive compensation accruals and performance-based equity compensation, which aligns with actual and projected financial and operating performance. | — approximately 50% of the decrease | |||||||
— approximately 35% of the decline relates to higher bad debt expense | ||||||||
MIS: Adjusted Operating Margin |
Restructuring Charge |
Six Months Ended June 30, | ||||||||||||||
Financial measure: | 2023 | 2022 | % Change | Insight and Key Drivers of Change Compared to Prior Year | ||||||||||
Moody's total revenue | $ | 2,964 | $ | 2,903 | 2 | % | — reflects growth in MA, partially offset by lower MIS revenue | |||||||
MA external revenue | $ | 1,484 | $ | 1,370 | 8 | % | — sustained demand for KYC and insurance solutions; — ongoing strong retention for ratings data feeds; and — elevated usage and demand for economic research and default models | |||||||
MIS external revenue | $ | 1,480 | $ | 1,533 | (3 | %) | — decline primarily reflects lower bank loan and SFG issuance activity resulting from market volatility relating to macroeconomic uncertainties, higher borrowing costs and the Russia/Ukraine military conflict; partially offset by — increases in investment grade corporate debt issuance compared to suppressed activity in the prior year | |||||||
Total operating and SG&A expenses | $ | 1,655 | $ | 1,549 | (7 | %) | — higher incentive compensation accruals and performance-based equity compensation aligned with actual/expected financial and operating performance; and — costs to support continued investment in product and technology innovation initiatives | |||||||
Depreciation and amortization | $ | 181 | $ | 159 | (14 | %) | — higher amortization relating to internally developed software, primarily related to the development of MA SaaS solutions | |||||||
Restructuring | $ | 24 | $ | 31 | 23 | % | — relates to the Company's 2022 - 2023 Geolocation Restructuring Program, more fully discussed in Note 10 to the condensed consolidated financial statements | |||||||
Total non-operating (expense) income, net | $ | (106) | $ | (112) | 5 | % | — higher gains on certain of the Company's investments of $25 million; — a $22 million benefit related to the resolutions of tax matters in the first quarter of 2023; and — increase in interest income of $21 million related to higher cash balances and interest yields; partially offset by: — higher realized losses of $48 million on fixed-to-floating interest rate swaps resulting from higher interest rates (more fully discussed in Note 8 to the condensed consolidated financial statements) | |||||||
Operating margin | 37.2 | % | 40.1 | % | (290 BPS) | — margin declines are primarily due to the aforementioned increase in expenses outpacing revenue growth | ||||||||
Adjusted Operating Margin | 44.2 | % | 46.6 | % | (240 BPS) | |||||||||
ETR | 12.0 | % | 21.6 | % | 960BPS | — lower ETR primarily reflects tax benefits recognized in the first quarter of 2023, which resulted from the resolutions of uncertain tax positions in various U.S. and non-U.S. tax jurisdictions | ||||||||
Diluted EPS | $ | 4.77 | $ | 4.45 | 7 | % | — increase reflects a $0.75/share benefit related to the resolutions of tax matters in the first quarter of 2023, partially offset by lower operating income/Adjusted Operating Income | |||||||
Adjusted Diluted EPS | $ | 5.29 | $ | 5.11 | 4 | % |
Six Months Ended June 30, | % Change Favorable (Unfavorable) | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
Revenue: | |||||||||||||||||
United States | $ | 1,552 | $ | 1,546 | — | % | |||||||||||
Non-U.S.: | |||||||||||||||||
EMEA | 921 | 878 | 5 | % | |||||||||||||
Asia-Pacific | 297 | 293 | 1 | % | |||||||||||||
Americas | 194 | 186 | 4 | % | |||||||||||||
Total Non-U.S. | 1,412 | 1,357 | 4 | % | |||||||||||||
Total | 2,964 | 2,903 | 2 | % | |||||||||||||
Expenses: | |||||||||||||||||
Operating | 854 | 810 | (5 | %) | |||||||||||||
SG&A | 801 | 739 | (8 | %) | |||||||||||||
Depreciation and amortization | 181 | 159 | (14 | %) | |||||||||||||
Restructuring | 24 | 31 | 23 | % | |||||||||||||
Total | 1,860 | 1,739 | (7 | %) | |||||||||||||
Operating income | 1,104 | 1,164 | (5 | %) | |||||||||||||
Adjusted Operating Income (1) | 1,309 | 1,354 | (3 | %) | |||||||||||||
Interest expense, net | (119) | (108) | (10 | %) | |||||||||||||
Other non-operating income, net | 13 | (4) | NM | ||||||||||||||
Non-operating (expense) income, net | (106) | (112) | 5 | % | |||||||||||||
Net income attributable to Moody’s | $ | 878 | $ | 825 | 6 | % | |||||||||||
Diluted weighted average shares outstanding | 184.1 | 185.4 | 1 | % | |||||||||||||
Diluted EPS attributable to Moody’s common shareholders | $ | 4.77 | $ | 4.45 | 7 | % | |||||||||||
Adjusted Diluted EPS (1) | $ | 5.29 | $ | 5.11 | 4 | % | |||||||||||
Operating margin | 37.2 | % | 40.1 | % | |||||||||||||
Adjusted Operating Margin (1) | 44.2 | % | 46.6 | % | |||||||||||||
Effective tax rate | 12.0 | % | 21.6 | % |
Six months ended June 30, |
Global revenue ⇑ $61 million | U.S. Revenue ⇑ $6 million | Non-U.S. Revenue ⇑ $55 million |
YTD Operating Expense ⇑ $44 million | YTD SG&A Expense ⇑ $62 million |
Compensation expenses increased $29 million reflecting: | Compensation expenses increased $59 million reflecting: | |||||||||||||||||||
— approximately 80% of the increase reflects higher incentive compensation accruals and performance-based equity compensation, which aligns with actual/projected financial and operating performance. | — approximately 60% of the increase reflects higher incentive compensation accruals and performance-based equity compensation, which aligns with actual/projected financial and operating performance; and | |||||||||||||||||||
— approximately 20% of the increase reflects higher salaries primarily relating to hiring and salary increases in MA to support continued growth in the business. | ||||||||||||||||||||
Non-compensation expenses increased $15 million reflecting: | ||||||||||||||||||||
— approximately 80% of the increase reflects higher costs to support strategic investments in technology, innovation and product development. | ||||||||||||||||||||
Depreciation and amortization |
Restructuring |
Operating margin 37.2%, down 290 BPS | Adjusted Operating Margin 44.2%, down 240 BPS |
Interest Expense, net ⇑ $11 million | Other non-operating income ⇑ $17 million |
Increase in expense is primarily due to: | Increase in income is primarily due to: | |||||||
— higher realized losses of $48 million on fixed-to-floating interest rate swaps resulting from higher interest rates (more fully discussed in Note 8 to the condensed consolidated financial statements); partially offset by | — higher gains of $25 million on certain of the Company's investments; and — prior year FX translation losses of $20 million reclassified to earnings resulting from the Company no longer conducting commercial operations in Russia; partially offset by | |||||||
— higher interest income of $21 million reflecting higher cash balances and interest yields; and | — FX losses of $23M recorded in the first quarter of 2023 mostly due to an immaterial out-of-period adjustment relating to the 2022 fiscal year. | |||||||
— a $22 million benefit related to the resolutions of tax matters in the first quarter of 2023. |
ETR ⇓ 960 BPS |
Diluted EPS ⇑ $0.32 | Adjusted Diluted EPS ⇑ $0.18 |
Six Months Ended June 30, | % Change Favorable (Unfavorable) | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
Revenue: | |||||||||||||||||
Decision Solutions (DS) | $ | 668 | $ | 608 | 10 | % | |||||||||||
Research and Insights (R&I) | 432 | 406 | 6 | % | |||||||||||||
Data and Information (D&I) | 384 | 356 | 8 | % | |||||||||||||
Total external revenue | 1,484 | 1,370 | 8 | % | |||||||||||||
Intersegment revenue | 7 | 3 | 133 | % | |||||||||||||
Total MA Revenue | 1,491 | 1,373 | 9 | % | |||||||||||||
Expenses: | |||||||||||||||||
Operating and SG&A (external) | 976 | 858 | (14 | %) | |||||||||||||
Operating and SG&A (intersegment) | 91 | 86 | (6 | %) | |||||||||||||
Total operating and SG&A expense | 1,067 | 944 | (13 | %) | |||||||||||||
Adjusted Operating Income | $ | 424 | $ | 429 | (1 | %) | |||||||||||
Adjusted Operating Margin | 28.4 | % | 31.2 | % | |||||||||||||
Depreciation and amortization | 144 | 120 | (20 | %) | |||||||||||||
Restructuring | 16 | 16 | — | % |
Six months ended June 30, |
MA: Global revenue ⇑ $114 million | U.S. Revenue ⇑ $44 million | Non-U.S. Revenue ⇑ $70 million |
Six months ended June 30, |
DS: Global revenue ⇑ $60 million | U.S. Revenue ⇑ $26 million | Non-U.S. Revenue ⇑ $34 million |
Six months ended June 30, |
R&I: Global revenue ⇑ $26 million | U.S. Revenue ⇑ $5 million | Non-U.S. Revenue ⇑ $21 million |
Six months ended June 30, |
D&I: Global revenue ⇑ $28 million | U.S. Revenue ⇑ $13 million | Non-U.S. Revenue ⇑ $15 million |
MA: YTD Operating and SG&A Expense ⇑ $118 million |
Compensation costs | Non-compensation costs | |||||||
Notable drivers of expense growth: | Notable drivers of expense growth: | |||||||
— approximately half of the growth is related to an increase in salaries reflecting higher headcount and annual salary increases; and | — approximately 60% of the increase reflects higher costs to support strategic investments in technology, innovation and product development; and | |||||||
— approximately 40% of the increase reflects higher incentive and performance-based equity compensation aligned with actual/expected financial and operational performance as well as headcount growth. | ||||||||
— approximately 25% of the increase reflects higher travel and entertainment expenses correlated with business growth. |
MA: Adjusted Operating Margin 28.4% ⇓ 280BPS |
Depreciation and amortization |
Restructuring |
Six Months Ended June 30, | % Change Favorable (Unfavorable) | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
Revenue: | |||||||||||||||||
Corporate finance (CFG) | $ | 721 | $ | 739 | (2 | %) | |||||||||||
Structured finance (SFG) | 201 | 267 | (25 | %) | |||||||||||||
Financial institutions (FIG) | 287 | 259 | 11 | % | |||||||||||||
Public, project and infrastructure finance (PPIF) | 256 | 245 | 4 | % | |||||||||||||
Total ratings revenue | 1,465 | 1,510 | (3 | %) | |||||||||||||
MIS Other | 15 | 23 | (35 | %) | |||||||||||||
Total external revenue | 1,480 | 1,533 | (3 | %) | |||||||||||||
Intersegment royalty | 91 | 86 | 6 | % | |||||||||||||
Total | 1,571 | 1,619 | (3 | %) | |||||||||||||
Expenses: | |||||||||||||||||
Operating and SG&A (external) | 679 | 691 | 2 | % | |||||||||||||
Operating and SG&A (intersegment) | 7 | 3 | (133 | %) | |||||||||||||
Total operating and SG&A expense | 686 | 694 | 1 | % | |||||||||||||
Adjusted Operating Income | $ | 885 | $ | 925 | (4 | %) | |||||||||||
Adjusted Operating Margin | 56.3 | % | 57.1 | % | |||||||||||||
Depreciation and amortization | 37 | 39 | 5 | % | |||||||||||||
Restructuring | 8 | 15 | NM |
Six months ended June 30, |
MIS: Global revenue ⇓ $53 million | U.S. Revenue ⇓ $38 million | Non-U.S. Revenue ⇓ $15 million |
Six months ended June 30, |
CFG: Global revenue ⇓ $18 million | U.S. Revenue was in line with prior year | Non-U.S. Revenue ⇓ $18 million |
Six months ended June 30, |
SFG: Global revenue ⇓ $66 million | U.S. Revenue ⇓ $59 million | Non-U.S. Revenue ⇓ $7 million |
Six months ended June 30, |
FIG: Global revenue ⇑ $28 million | U.S. Revenue ⇑ $18 million | Non-U.S. Revenue ⇑ $10 million |
Six months ended June 30, |
PPIF: Global revenue ⇑ $11 million | U.S. Revenue ⇑ $6 million | Non-U.S. Revenue ⇑ $5 million |
MIS: YTD Operating and SG&A Expense ⇓ $12 million |
Compensation costs | Non-compensation costs | |||||||
Notable drivers of expense growth: | Notable drivers of decline in expense: | |||||||
— higher incentive compensation accruals and performance-based equity compensation, which aligns with actual/projected financial and operating performance. | — approximately 35% of the decrease relates to ongoing cost control initiatives; and | |||||||
— higher bad debt expense in the prior year resulting from the impact of the Russia/Ukraine military conflict contributed approximately 45% of the decrease. |
Other Expenses |
Adjusted Operating Margin of 56.3% ⇓ 80 BPS |
Three Months Ended March 31, | $ Change Favorable (Unfavorable) | Six Months Ended June 30, | $ Change Favorable (Unfavorable) | |||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | $ | 608 | $ | 470 | $ | 138 | Net cash provided by operating activities | $ | 1,212 | $ | 761 | $ | 451 | ||||||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | $ | (63) | $ | (161) | $ | 98 | Net cash used in investing activities | $ | (103) | $ | (172) | $ | 69 | ||||||||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | $ | (216) | $ | (352) | $ | 136 | Net cash used in financing activities | $ | (624) | $ | (712) | $ | 88 | ||||||||||||||||||||
Free Cash Flow (1) | Free Cash Flow (1) | $ | 535 | $ | 411 | $ | 124 | Free Cash Flow (1) | $ | 1,085 | $ | 628 | $ | 457 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | $ | 554 | $ | 656 | Operating income | $ | 550 | $ | 508 | $ | 1,104 | $ | 1,164 | ||||||||||||||||||||||||||||||||
Adjustments: | Adjustments: | Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 88 | 78 | Depreciation and amortization | 93 | 81 | 181 | 159 | ||||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring | 14 | — | Restructuring | 10 | 31 | 24 | 31 | ||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income | Adjusted Operating Income | $ | 656 | $ | 734 | Adjusted Operating Income | $ | 653 | $ | 620 | $ | 1,309 | $ | 1,354 | ||||||||||||||||||||||||||||||||
Operating margin | Operating margin | 37.7 | % | 43.1 | % | Operating margin | 36.8 | % | 36.8 | % | 37.2 | % | 40.1 | % | ||||||||||||||||||||||||||||||||
Adjusted Operating Margin | Adjusted Operating Margin | 44.6 | % | 48.2 | % | Adjusted Operating Margin | 43.7 | % | 44.9 | % | 44.2 | % | 46.6 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
Amounts in millions | 2023 | 2022 | |||||||||||||||||||||||||||||||||
Net income attributable to Moody's common shareholders | $ | 501 | $ | 498 | |||||||||||||||||||||||||||||||
Pre-Tax Acquisition-Related Intangible Amortization Expenses | $ | 51 | $ | 51 | |||||||||||||||||||||||||||||||
Tax on Acquisition-Related Intangible Amortization Expenses | (12) | (12) | |||||||||||||||||||||||||||||||||
Net Acquisition-Related Intangible Amortization Expenses | 39 | 39 | |||||||||||||||||||||||||||||||||
Pre-Tax Restructuring | $ | 14 | $ | — | |||||||||||||||||||||||||||||||
Tax on Restructuring | (4) | — | |||||||||||||||||||||||||||||||||
Net Restructuring | 10 | — | |||||||||||||||||||||||||||||||||
Adjusted Net Income | $ | 550 | $ | 537 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share attributable to Moody's common shareholders | $ | 2.72 | $ | 2.68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts in millions | Amounts in millions | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Moody's common shareholders | Net income attributable to Moody's common shareholders | $ | 377 | $ | 327 | $ | 878 | $ | 825 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-Tax Acquisition-Related Intangible Amortization Expenses | Pre-Tax Acquisition-Related Intangible Amortization Expenses | $ | 0.28 | $ | 0.27 | Pre-Tax Acquisition-Related Intangible Amortization Expenses | $ | 50 | $ | 51 | $ | 101 | $ | 102 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax on Acquisition-Related Intangible Amortization Expenses | Tax on Acquisition-Related Intangible Amortization Expenses | (0.06) | (0.06) | Tax on Acquisition-Related Intangible Amortization Expenses | (12) | (12) | (24) | (24) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Acquisition-Related Intangible Amortization Expenses | Net Acquisition-Related Intangible Amortization Expenses | 0.22 | 0.21 | Net Acquisition-Related Intangible Amortization Expenses | 38 | 39 | 77 | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-Tax Restructuring | Pre-Tax Restructuring | $ | 0.08 | $ | — | Pre-Tax Restructuring | $ | 10 | $ | 31 | $ | 24 | $ | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax on Restructuring | Tax on Restructuring | (0.03) | — | Tax on Restructuring | (2) | (7) | (6) | (7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Restructuring | Net Restructuring | 0.05 | — | Net Restructuring | 8 | 24 | 18 | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Diluted EPS | $ | 2.99 | $ | 2.89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FX losses resulting from the Company no longer conducting commercial operations in Russia | FX losses resulting from the Company no longer conducting commercial operations in Russia | — | 20 | — | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Net Income | Adjusted Net Income | $ | 423 | $ | 410 | $ | 973 | $ | 947 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Diluted earnings per share attributable to Moody's common shareholders | $ | 2.05 | $ | 1.77 | $ | 4.77 | $ | 4.45 | |||||||||||||||||||||||||||
Pre-Tax Acquisition-Related Intangible Amortization Expenses | $ | 0.27 | $ | 0.28 | $ | 0.55 | $ | 0.55 | |||||||||||||||||||||||||||
Tax on Acquisition-Related Intangible Amortization Expenses | (0.06) | (0.07) | (0.13) | (0.13) | |||||||||||||||||||||||||||||||
Net Acquisition-Related Intangible Amortization Expenses | 0.21 | 0.21 | 0.42 | 0.42 | |||||||||||||||||||||||||||||||
Pre-Tax Restructuring | $ | 0.05 | $ | 0.17 | $ | 0.13 | $ | 0.17 | |||||||||||||||||||||||||||
Tax on Restructuring | (0.01) | (0.04) | (0.03) | (0.04) | |||||||||||||||||||||||||||||||
Net Restructuring | 0.04 | 0.13 | 0.10 | 0.13 | |||||||||||||||||||||||||||||||
FX losses resulting from the Company no longer conducting commercial operations in Russia | — | 0.11 | — | 0.11 | |||||||||||||||||||||||||||||||
Adjusted Diluted EPS | $ | 2.30 | $ | 2.22 | $ | 5.29 | $ | 5.11 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net cash provided by operating activities | $ | 608 | $ | 470 | |||||||
Capital additions | (73) | (59) | |||||||||
Free Cash Flow | $ | 535 | $ | 411 | |||||||
Net cash used in investing activities | $ | (63) | $ | (161) | |||||||
Net cash used in financing activities | $ | (216) | $ | (352) |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts in millions | 2023 | 2022 | Change | Growth | ||||||||||||||||||||||||||||||||||||||||||||||
MA revenue | $ | 737 | $ | 695 | $ | 42 | 6% | |||||||||||||||||||||||||||||||||||||||||||
FX impact | 18 | — | 18 | |||||||||||||||||||||||||||||||||||||||||||||||
Constant currency MA revenue | $ | 755 | $ | 695 | $ | 60 | 9% | |||||||||||||||||||||||||||||||||||||||||||
Decision Solutions revenue | $ | 354 | $ | 334 | $ | 20 | 6% | |||||||||||||||||||||||||||||||||||||||||||
FX impact | 7 | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||||
Constant currency Decision Solutions revenue | $ | 361 | $ | 334 | $ | 27 | 8% | |||||||||||||||||||||||||||||||||||||||||||
Research and Insights revenue | $ | 195 | $ | 183 | $ | 12 | 7% | |||||||||||||||||||||||||||||||||||||||||||
FX impact | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||
Constant currency Research and Insights revenue | $ | 198 | $ | 183 | $ | 15 | 8% | |||||||||||||||||||||||||||||||||||||||||||
Data and Information revenue | $ | 188 | $ | 178 | $ | 10 | 6% | |||||||||||||||||||||||||||||||||||||||||||
FX impact | 8 | — | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
Constant currency Data and Information revenue | $ | 196 | $ | 178 | $ | 18 | 10% | |||||||||||||||||||||||||||||||||||||||||||
MCO revenue | $ | 1,470 | $ | 1,522 | $ | (52) | (3)% | |||||||||||||||||||||||||||||||||||||||||||
FX impact | 28 | — | 28 | |||||||||||||||||||||||||||||||||||||||||||||||
Constant currency MCO revenue | $ | 1,498 | $ | 1,522 | $ | (24) | (2)% | |||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Net cash provided by operating activities | $ | 1,212 | $ | 761 | |||||||
Capital additions | (127) | (133) | |||||||||
Free Cash Flow | $ | 1,085 | $ | 628 | |||||||
Net cash used in investing activities | $ | (103) | $ | (172) | |||||||
Net cash used in financing activities | $ | (624) | $ | (712) |
Amounts in millions | Amounts in millions | March 31, 2023 | March 31, 2022 | Change | Growth | Amounts in millions | June 30, 2023 | June 30, 2022 | Change | Growth | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MA ARR | MA ARR | MA ARR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decision Solutions | $ | 1,234 | $ | 1,108 | $ | 126 | 11% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decision Solutions (DS) | Decision Solutions (DS) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking | Banking | $ | 390 | $ | 355 | $ | 35 | 10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance | Insurance | 497 | 467 | 30 | 6% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
KYC | KYC | 292 | 248 | 44 | 18% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total DS | Total DS | $ | 1,179 | $ | 1,070 | $ | 109 | 10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Insights | Research and Insights | 770 | 708 | 62 | 9% | Research and Insights | 843 | 774 | 69 | 9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Data and Information | Data and Information | 748 | 685 | 63 | 9% | Data and Information | 759 | 695 | 64 | 9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total MA ARR | Total MA ARR | $ | 2,752 | $ | 2,501 | $ | 251 | 10% | Total MA ARR | $ | 2,781 | $ | 2,539 | $ | 242 | 10% |
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) | ||||||||||||||||||||||
January 1- 31 | 1,421 | $ | — | — | $ | 848 | million | |||||||||||||||||||
February 1- 28 | 53,039 | $ | 305.20 | 51,619 | $ | 832 | million | |||||||||||||||||||
March 1- 31 | 298,949 | $ | 293.56 | 86,821 | $ | 807 | million | |||||||||||||||||||
Total | 353,409 | $ | 297.90 | 138,440 |
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) | ||||||||||||||||||||||
April 1- 30 | 73,312 | $ | 302.36 | 70,493 | $ | 786 | million | |||||||||||||||||||
May 1- 31 | 82,432 | $ | 309.46 | 77,891 | $ | 762 | million | |||||||||||||||||||
June 1- 30 | 65,422 | $ | 332.90 | 64,889 | $ | 740 | million | |||||||||||||||||||
Total | 221,166 | $ | 314.25 | 213,273 |
Exhibit No | Description | |||||||
3 | ARTICLES OF INCORPORATION AND BY-LAWS | |||||||
.1 | ||||||||
.2 | ||||||||
31 | CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 | |||||||
.1* | ||||||||
.2* | ||||||||
32 | CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 | |||||||
.1* | ||||||||
.2* | ||||||||
101.INS* | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF* | Inline XBRL Definitions Linkbase Document | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||
* Filed herewith | ||||||||
† Management contract of compensatory plan or arrangement |
MOODY’S CORPORATION | ||||||||
By: | / S / MARK KAYE | |||||||
Mark Kaye | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(principal financial officer) | ||||||||
By: | / S / CAROLINE SULLIVAN | |||||||
Caroline Sullivan | ||||||||
Chief Accounting Officer and Corporate Controller | ||||||||
(principal accounting officer) | ||||||||
Date: |