Cover Page
Cover Page - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-14037 | ||
Entity Registrant Name | MOODY’S CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-3998945 | ||
Entity Address, Address Line One | 7 World Trade Center at 250 Greenwich Street | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10007 | ||
City Area Code | 212 | ||
Local Phone Number | 553-0300 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 37 | ||
Entity Common Stock, Shares Outstanding (in shares) | 187.4 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement for use in connection with its annual meeting of stockholders scheduled to be held on April 21, 2020, are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001059556 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Common Stock, par value $0.01 per share | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | MCO | ||
Security Exchange Name | NYSE | ||
1.75% Senior Notes Due 2027 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.75% Senior Notes Due 2027 | ||
Trading Symbol | MCO 27 | ||
Security Exchange Name | NYSE | ||
0.950% Senior Notes Due 2030 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.950% Senior Notes Due 2030 | ||
Trading Symbol | MCO 30 | ||
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 4,829 | $ 4,443 | $ 4,204 |
Expenses | |||
Operating | 1,387 | 1,246 | 1,216 |
Selling, general and administrative | 1,167 | 1,080 | 986 |
Restructuring | 60 | 49 | 0 |
Depreciation and amortization | 200 | 192 | 158 |
Acquisition-Related Expenses | 3 | 8 | 23 |
Loss pursuant to the divestiture of MAKS | 14 | 0 | 0 |
Total expenses | 2,831 | 2,575 | 2,383 |
Operating income | 1,998 | 1,868 | 1,821 |
Non-operating (expense) income, net | |||
Interest expense, net | (208) | (215) | (209) |
Other non-operating income, net | 20 | 19 | 4 |
Purchase Price Hedge Gain | 0 | 0 | 111 |
CCXI Gain | 0 | 0 | 60 |
Non-operating (expense) income, net | (188) | (196) | (34) |
Income before provision for income taxes | 1,810 | 1,672 | 1,787 |
Provision for income taxes | 381 | 352 | 779 |
Net income | 1,429 | 1,320 | 1,008 |
Less: Net income attributable to noncontrolling interests | 7 | 10 | 7 |
Net income attributable to Moody’s | $ 1,422 | $ 1,310 | $ 1,001 |
Earnings per share | |||
Basic (in USD per share) | $ 7.51 | $ 6.84 | $ 5.24 |
Diluted (in USD per share) | $ 7.42 | $ 6.74 | $ 5.15 |
Weighted average shares outstanding | |||
Basic (in shares) | 189.3 | 191.6 | 191.1 |
Diluted (in shares) | 191.6 | 194.4 | 194.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,429 | $ 1,320 | $ 1,008 |
Foreign Currency Adjustments: | |||
Foreign currency translation adjustment - Pre Tax | (22) | (315) | 225 |
Foreign currency translation adjustment - Tax | (1) | 0 | 0 |
Foreign currency translation adjustment - Net of Tax | (23) | (315) | 225 |
Foreign currency translation adjustments - reclassification of losses included in net income - Pre Tax | 32 | 0 | 0 |
Foreign currency translation adjustments - reclassification of losses included in net income - Tax | 0 | 0 | 0 |
Foreign currency translation adjustments - reclassification of losses included in net income - Net of Tax | 32 | 0 | 0 |
Net gains (losses) on net investment hedges - Pre Tax | 35 | 41 | (59) |
Net gains (losses) on net investment hedges, Tax | (9) | (7) | 23 |
Net gains (losses) on net investment hedges, Net of Tax | 26 | 34 | (36) |
Net investment hedges - reclassification of gains included in net income - Pre Tax | (3) | 0 | 0 |
Net investment hedges - reclassification of gains included in net income - Tax | 1 | 0 | 0 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | (2) | 0 | 0 |
Cash Flow Hedges: | |||
Net realized and unrealized gain (loss) on cash flow hedges - Pre Tax | 0 | (1) | 10 |
Net realized and unrealized gain (loss) on cash flow hedges - Tax | 0 | 0 | (4) |
Net realized and unrealized gain (loss) on cash flow hedges - Net of Tax | 0 | (1) | 6 |
Reclassification of (losses) gains included in net income - Pre Tax | 0 | 0 | (12) |
Reclassification of (losses) gains included in net income - Tax | 0 | 0 | 5 |
Reclassification of (losses) gains included in net income - Net of Tax | 0 | 0 | (7) |
Available for Sale Securities: | |||
Net unrealized gains on available for sale securities - Pre Tax | 0 | 0 | 2 |
Net unrealized gains on available for sale securities - Tax | 0 | 0 | 0 |
Net unrealized gains on available for sale securities - Net of Tax | 0 | 0 | 2 |
Reclassification of gains included in net income - Pre Tax | 0 | 0 | (4) |
Reclassification of gains included in net income - Tax | 0 | 0 | 0 |
Reclassification of gains included in net income - Net of Tax | 0 | 0 | (4) |
Pension and Other Retirement Benefits: | |||
Amortization of actuarial losses and prior service costs included in net income - Pre Tax | 3 | 5 | 8 |
Amortization of actuarial losses and prior service costs included in net income - Tax | (1) | (1) | (3) |
Amortization of actuarial losses and prior service costs included in net income - Net of Tax | 2 | 4 | 5 |
Net actuarial (loss)/gain arising during the period | (32) | 6 | 21 |
Net actuarial (losses) gains and prior service costs - Tax | 8 | (2) | (8) |
Net actuarial (losses) gains and prior service costs - Net of Tax | (24) | 4 | 13 |
Total other comprehensive (loss) income - Pre Tax | 13 | (264) | 191 |
Total other comprehensive (loss)income - Tax | (2) | (10) | 13 |
Total Other Comprehensive Income (Loss) | 11 | (274) | 204 |
Comprehensive Income | 1,440 | 1,046 | 1,212 |
Less: comprehensive income (loss) attributable to noncontrolling interests | 11 | (12) | 19 |
Comprehensive Income Attributable to Moody’s | $ 1,429 | $ 1,058 | $ 1,193 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,832 | $ 1,685 |
Short-term investments | 98 | 133 |
Accounts receivable, net of allowances of $43 in 2019 and $43 in 2018 | 1,419 | 1,287 |
Other current assets | 330 | 282 |
Total current assets | 3,679 | 3,387 |
Property and equipment, net | 292 | 320 |
Operating lease right-of-use assets | 456 | |
Goodwill | 3,722 | 3,781 |
Intangible assets, net | 1,498 | 1,566 |
Deferred tax assets, net | 229 | 197 |
Other assets | 389 | 275 |
Total assets | 10,265 | 9,526 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 773 | 696 |
Current portion of operating lease liabilities | 89 | |
Current portion of long-term debt | 0 | 450 |
Deferred revenue | 1,050 | 953 |
Total current liabilities | 1,912 | 2,099 |
Non-current portion of deferred revenue | 112 | 122 |
Long-term debt | 5,581 | 5,226 |
Deferred tax liabilities, net | 357 | 352 |
Uncertain tax positions | 477 | 495 |
Operating lease liabilities | 485 | |
Other liabilities | 504 | 576 |
Total liabilities | 9,428 | 8,870 |
Contingencies (Note 22) | ||
Redeemable noncontrolling interest | 6 | 0 |
Shareholders’ equity: | ||
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock | 3 | 3 |
Capital surplus | 642 | 601 |
Retained earnings | 9,656 | 8,594 |
Treasury stock, at cost; 155,215,143 and 151,598,695 shares of common stock at December 31, 2019 and December 31, 2018, respectively | (9,250) | (8,313) |
Accumulated other comprehensive loss | (439) | (426) |
Total Moody’s shareholders’ equity | 612 | 459 |
Noncontrolling interests | 219 | 197 |
Total shareholders’ equity | 831 | 656 |
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | 10,265 | 9,526 |
Series Common Stock | ||
Shareholders’ equity: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowances | $ 43 | $ 43 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 342,902,272 | 342,902,272 |
Treasury stock, shares (in shares) | 155,215,143 | 151,598,695 |
Series Common Stock | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 1,429 | $ 1,320 | $ 1,008 |
Reconciliation of net income to net cash provided by operating activities: | |||
Depreciation and amortization | 200 | 192 | 158 |
Stock-based compensation | 136 | 130 | 123 |
Deferred income taxes | (38) | (99) | 88 |
CCXI Gain | 0 | 0 | (60) |
Purchase Price Hedge Gain | 0 | 0 | (111) |
ROU Asset impairment & other non-cash restructuring/impairment charges | 38 | ||
Loss pursuant to the divestiture of MAKS | (14) | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (134) | (136) | (148) |
Other current assets | (88) | (9) | (70) |
Other assets | (69) | (17) | 12 |
Lease obligations | (16) | 0 | 0 |
Accounts payable and accrued liabilities | 77 | (134) | (638) |
Restructuring liability | 0 | 42 | (6) |
Deferred revenue | 76 | 139 | 73 |
Unrecognized tax positions and other non-current tax liabilities | 8 | 59 | 63 |
Other liabilities | 42 | (26) | 263 |
Net cash provided by operating activities | 1,675 | 1,461 | 755 |
Cash flows from investing activities | |||
Capital additions | (69) | (91) | (91) |
Purchases of investments | (138) | (193) | (170) |
Sales and maturities of investments | 174 | 161 | 239 |
Receipts from Purchase Price Hedge | 0 | 0 | 111 |
Cash received upon disposal of a business, net of cash transferred to purchaser | 226 | 6 | 0 |
Cash paid for acquisitions, net of cash acquired | (162) | (289) | (3,511) |
Receipts from settlements of net investment hedges | 12 | 0 | 2 |
Payments for settlements of net investment hedges | (7) | 0 | 0 |
Net cash provided by (used in) investing activities | 36 | (406) | (3,420) |
Cash flows from financing activities | |||
Issuance of notes | 824 | 1,090 | 2,292 |
Repayment of notes | (950) | (800) | (300) |
Issuance of commercial paper | 1,317 | 989 | 1,837 |
Repayment of commercial paper | (1,320) | (1,120) | (1,707) |
Proceeds from stock-based compensation plans | 45 | 47 | 56 |
Repurchase of shares related to stock-based compensation | (77) | (62) | (49) |
Treasury shares | (991) | (203) | (200) |
Dividends | (378) | (337) | (290) |
Dividends to noncontrolling interests | (3) | (5) | (3) |
Payment for noncontrolling interest | (12) | 0 | (9) |
Debt issuance costs, extinguishment costs and related fees | (18) | (11) | (27) |
Net cash used in financing activities | (1,563) | (412) | 1,600 |
Effect of exchange rate changes on cash and cash equivalents | (1) | (30) | 85 |
Increase (decrease) in cash and cash equivalents | 147 | 613 | (980) |
Cash and cash equivalents, beginning of period | 1,685 | 1,072 | 2,052 |
Cash and cash equivalents, end of period | $ 1,832 | $ 1,685 | $ 1,072 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Moody’s Shareholders’ Equity | Non- Controlling Interests |
Beginning Balance (in shares) at Dec. 31, 2016 | 342.9 | 152.2 | ||||||
Beginning Balance at Dec. 31, 2016 | $ (1,027) | $ 3 | $ 477 | $ 6,689 | $ (8,030) | $ (364) | $ (1,225) | $ 198 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,008 | 1,001 | 1,001 | 7 | ||||
Dividends | (223) | (220) | (220) | (3) | ||||
Stock-based compensation | 123 | 123 | 123 | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 1.9 | |||||||
Shares issued for stock-based compensation plans at average cost, net | 10 | (67) | $ 77 | 10 | ||||
Purchase of noncontrolling interest | (5) | (4) | (4) | (1) | ||||
Treasury shares repurchased (in shares) | (1.6) | |||||||
Treasury shares repurchased | (200) | $ (200) | (200) | |||||
Currency translation adjustment, net of net investment hedge activity | 189 | 176 | 176 | 13 | ||||
Net actuarial gains (losses) and prior service costs | 13 | 13 | 13 | |||||
Amortization of prior service costs and actuarial losses | 5 | 5 | 5 | |||||
Net unrealized gain on available for sale securities | (2) | (1) | (1) | (1) | ||||
Net realized and unrealized gain on cash flow hedges (net of tax of $1 million) | (1) | (1) | (1) | |||||
Ending Balance (in shares) at Dec. 31, 2017 | 342.9 | 151.9 | ||||||
Ending Balance at Dec. 31, 2017 | (115) | $ 3 | 529 | 7,465 | $ (8,153) | (172) | (328) | 213 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,320 | 1,310 | 1,310 | 10 | ||||
Dividends | (343) | (339) | (339) | (4) | ||||
Stock-based compensation | 131 | 131 | 131 | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 1.5 | |||||||
Shares issued for stock-based compensation plans at average cost, net | (16) | (59) | $ 43 | (16) | ||||
Treasury shares repurchased (in shares) | (1.2) | |||||||
Treasury shares repurchased | (203) | $ (203) | (203) | |||||
Currency translation adjustment, net of net investment hedge activity | (281) | (259) | (259) | (22) | ||||
Net actuarial gains (losses) and prior service costs | 4 | 4 | 4 | |||||
Amortization of prior service costs and actuarial losses | 4 | 4 | 4 | |||||
Net realized and unrealized gain on cash flow hedges (net of tax of $1 million) | (1) | (1) | (1) | |||||
Ending Balance (in shares) at Dec. 31, 2018 | 342.9 | 151.6 | ||||||
Ending Balance at Dec. 31, 2018 | 656 | $ 3 | 601 | 8,594 | $ (8,313) | (426) | 459 | 197 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,429 | 1,422 | 1,422 | 7 | ||||
Dividends | (383) | (380) | (380) | (3) | ||||
Stock-based compensation | 136 | 136 | 136 | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 1.6 | |||||||
Shares issued for stock-based compensation plans at average cost, net | (32) | (70) | $ 38 | (32) | ||||
Purchase of noncontrolling interest | (12) | (9) | (9) | (3) | ||||
Non-controlling interest resulting from majority acquisition of Vigeo Eiris | 17 | 17 | ||||||
Treasury shares repurchased (in shares) | (5.2) | |||||||
Treasury shares repurchased | (991) | (16) | $ (975) | (991) | ||||
Currency translation adjustment, net of net investment hedge activity | 33 | 29 | 29 | 4 | ||||
Net actuarial gains (losses) and prior service costs | (24) | (24) | (24) | |||||
Amortization of prior service costs and actuarial losses | 2 | 2 | 2 | |||||
Ending Balance (in shares) at Dec. 31, 2019 | 342.9 | 155.2 | ||||||
Ending Balance at Dec. 31, 2019 | $ 831 | $ 3 | $ 642 | $ 9,656 | $ (9,250) | $ (439) | $ 612 | $ 219 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share attributable to Moody's common shareholders (in USD per share) | $ 2 | $ 1.76 | $ 1.14 |
Currency translation adjustment, tax | $ 9 | $ 7 | $ 23 |
Net actuarial losses and prior service costs, tax | 8 | (2) | (8) |
Amortization of actuarial losses and prior service costs included in net income, tax | $ 1 | 1 | 3 |
Net unrealized and unrealized gain on cash flow hedges, tax | $ 1 | $ 1 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Moody’s is a provider of (i) credit ratings and assessment services; (ii) credit, capital markets and economic research, data and analytical tools; (iii) software solutions that support financial risk management activities; (iv) quantitatively derived credit scores; (v) learning solutions and certification services; (vi) offshore financial research and analytical services (this business was divested with the sale of MAKS in the fourth quarter of 2019); and (vii) company information and business intelligence products. Moody’s reports in two reportable segments: MIS and MA. MIS, the credit rating agency, publishes credit ratings and provides assessment services on a wide range of debt obligations and the entities that issue such obligations in markets worldwide. Revenue is primarily derived from the originators and issuers of such transactions who use MIS ratings in the distribution of their debt issues to investors. Additionally, MIS earns revenue from certain non-ratings-related operations which consist primarily of financial instrument pricing services in the Asia-Pacific region as well as revenue from ICRA’s non-ratings operations. The revenue from these operations is included in the MIS Other LOB and is not material to the results of the MIS segment. MA provides financial intelligence and analytical tools to assist businesses in making decisions. MA’s portfolio of solutions consists of specialized research, data, software, and professional services, which are assembled to support the financial analysis and risk management activities of institutional customers worldwide. On November 8, 2019, the Company sold the MAKS business to Equistone Partners Europe Limited, a European private equity firm. The operating results of MAKS are reported within the MA segment (and PS LOB) through the closing of the transaction in the fourth quarter. Certain reclassifications have been made to prior period amounts to conform to the current presentation. Adoption of New Accounting Standards On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” and has elected to apply the provisions of the New Lease Accounting Standard on the date of adoption with adjustments to the assets and liabilities on its opening balance sheet, with no cumulative-effect adjustment to the opening balance of retained earnings required. Accordingly, the Company did not restate prior year comparative periods for the impact of the New Lease Accounting Standard. The New Lease Accounting Standard requires lessees to recognize an ROU Asset and lease liability for all leases with terms of more than 12 months. The Company has elected the package of practical expedients permitted under the transition guidance within the New Lease Accounting Standard, which permits the Company not to reassess the following for any expired or existing contracts: i) whether any contracts contain leases; ii) lease classification (i.e. operating lease or finance/capital lease); and iii) initial direct costs. The adoption of the New Lease Accounting Standard resulted in the recognition of ROU Assets and lease liabilities of approximately $518 million and $622 million, respectively, at January 1, 2019, consisting primarily of operating leases relating to office space. Pursuant to this transition adjustment, the Company also recognized approximately $150 million and approximately $125 million in additional deferred tax assets and liabilities, respectively. Compared to previous guidance, the New Lease Accounting Standard does not significantly change the method by which a lessee should recognize, measure and present expenses and cash flows arising from a lease. Refer to Note 2 for a more fulsome description of the Company’s accounting policy relating to the New Lease Accounting Standard, which includes a discussion relating to the pattern of operating lease expense recognition (both prior to and subsequent to an impairment of an ROU Asset). In the first quarter of 2019, the Company adopted ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. Under previous GAAP, adjustments to deferred tax assets and liabilities related to a change in tax laws or rates were included in income from continuing operations, even in situations where the related items were originally recognized in OCI (commonly referred to as a “stranded tax effect”). The provisions of this ASU permit the reclassification of the stranded tax effect related to the Tax Act from AOCI to retained earnings. In the first quarter of 2019, the Company reclassified $20 million of tax benefits from AOCI to retained earnings relating to the aforementioned stranded tax effect of the Tax Act. On January 1, 2019, the Company adopted ASU No. 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes”. The amendments in this ASU permit the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815, in addition to the currently permissible benchmark interest rates. This ASU provides the Company the ability to utilize the OIS rate based on SOFR as the benchmark interest rate on certain hedges of interest rate risk. The adoption of this ASU had no impact on the Company’s financial statements upon adoption. On January 1, 2018, the Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers (ASC Topic 606)” using the modified retrospective approach. Under the previous accounting guidance, the reduction to reported 2018 revenue, operating income and Net Income would have been a reduction of $13 million, $24 million and $19 million, respectively. Reclassification of Previously Reported Revenue by LOB There were certain organizational/product realignments in both MIS and MA in the first quarter of 2019. Accordingly, in MIS, revenue from REITs, which was previously classified in the SFG LOB, is now classified in the CFG LOB. In MA, revenue relating to the Bureau van Dijk FACT product (a credit assessment and origination solution), which was previously classified in RD&A, is now classified in the ERS LOB. Accordingly, 2018 and 2017 revenue by LOB was reclassified to conform with this new presentation, as follows: MIS As previously reported Reclassification As Reclassified MA As previously reported Reclassification As Reclassified Full year 2018 CFG $ 1,334 $ 45 $ 1,379 RD&A $ 1,134 $ (13) $ 1,121 SFG $ 526 $ (45) $ 481 ERS $ 438 $ 13 $ 451 Full year 2017 CFG $ 1,393 $ 55 $ 1,448 RD&A $ 833 $ (7) $ 826 SFG $ 495 $ (55) $ 440 ERS $ 448 $ 7 $ 455 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation The consolidated financial statements include those of Moody’s Corporation and its majority- and wholly-owned subsidiaries. The effects of all intercompany transactions have been eliminated. Investments in companies for which the Company has significant influence over operating and financial policies but not a controlling interest are accounted for on an equity basis whereby the Company records its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net and any dividends received reduce the carrying amount of the investment. The Company applies the guidelines set forth in Topic 810 of the ASC in assessing its interests in variable interest entities to decide whether to consolidate that entity. The Company has reviewed the potential variable interest entities and determined that there are no consolidation requirements under Topic 810 of the ASC. The Company consolidates its ICRA subsidiaries on a three month lag. Cash and Cash Equivalents Cash equivalents principally consist of investments in money market mutual funds and money market deposit accounts as well as high-grade commercial paper and certificates of deposit with maturities of three months or less when purchased. Short-term Investments Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next 12 months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives. Expenditures for maintenance and repairs that do not extend the economic useful life of the related assets are charged to expense as incurred. Computer Software Developed or Obtained for Internal Use The Company capitalizes costs related to software developed or obtained for internal use. These assets, included in property and equipment in the consolidated balance sheets, relate to the Company’s financial, website and other systems. Such costs generally consist of direct costs for third-party license fees, professional services provided by third parties and employee compensation, in each case incurred either during the application development stage or in connection with upgrades and enhancements that increase functionality. Such costs are depreciated over their estimated useful lives on a straight-line basis. Costs incurred during the preliminary project stage of development as well as maintenance costs are expensed as incurred. Goodwill and Other Acquired Intangible Assets Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment (i.e., MIS and MA), or one level below an operating segment (i.e., a component of an operating segment), annually as of July 31 or more frequently if impairment indicators arise in accordance with ASC Topic 350. The Company evaluates the recoverability of goodwill using a two-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made that, based on the qualitative factors, an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company will recognize the difference as an impairment charge. The Company evaluates its reporting units for impairment on an annual basis, or more frequently if there are changes in the reporting structure of the Company due to acquisitions or realignments or if there are indicators of potential impairment. For the reporting units where the Company is consistently able to conclude that an impairment does not exist using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years. Goodwill is assigned to a reporting unit at the date when an acquisition is integrated into one of the established reporting units, and is based on which reporting unit is expected to benefit from the synergies of the acquisition. For purposes of assessing the recoverability of goodwill, the Company has seven primary reporting units at December 31, 2019: two within the Company’s ratings business (one for the ICRA business and one that encompasses all of Moody’s other ratings operations) and five reporting units within MA: Content, ERS, MALS, Bureau van Dijk, and Reis. Impairment of long-lived assets and definite-lived intangible assets Long-lived assets (including ROU Assets) and amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Under the first step of the recoverability assessment, the Company compares the estimated undiscounted future cash flows attributable to the asset or asset group to their carrying value. If the undiscounted future cash flows are greater than the carrying value, no further assessment is required. If the undiscounted future cash flows are less than the carrying value, Moody's proceeds with step two of the assessment. Under step two of this assessment, Moody's is required to determine the fair value of the asset or asset group (reduced by the estimated cost to sell the asset for assets or disposal groups held-for-sale) and recognize an impairment loss if the carrying amount exceeds its fair value. Stock-Based Compensation The Company records compensation expense for all share-based payment award transactions granted to employees based on the fair value of the equity instrument at the time of grant. This includes shares issued under stock option and restricted stock plans. Derivative Instruments and Hedging Activities Based on the Company’s risk management policy, from time to time the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values on a gross basis. The changes in the value of derivatives that qualify as fair value hedges are recorded in the same income statement line item in earnings in which the corresponding adjustment to the carrying value of the hedged item is presented. The entire change in the fair value of derivatives that qualify as cash flow hedges is recorded to OCI and such amounts are reclassified from AOCI to the same income statement line in earnings in the same period or periods during which the hedged transaction affects income. Effective with the Company’s early adoption of ASC 2017-12, the Company changed the method by which it assesses effectiveness for net investment hedges from the forward-method to the spot-method. The Company considers the spot-method an improved method of assessing hedge effectiveness, as spot rate changes relating to the hedging instrument’s notional amount perfectly offset the currency translation adjustment on the hedged net investment in the Company’s foreign subsidiaries. The entire change in the fair value of derivatives that qualify as net investment hedges is initially recorded to OCI. Those changes in fair value attributable to components included in the assessment of hedge effectiveness in a net investment hedge are recorded in the currency translation adjustment component of OCI and remain in AOCI until the period in which the hedged item affects earnings. Those changes in fair value attributable to components excluded from the assessment of hedge effectiveness in a net investment hedge are recorded to OCI and amortized to earnings using a systematic and rational method over the duration of the hedge. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur. Revenue Recognition and Costs to Obtain or Fulfill a Contract with a Customer Revenue recognition: Revenue is recognized when control of promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. When contracts with customers contain multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to each distinct performance obligation on a relative SSP basis. The Company determines the SSP by using the price charged for a deliverable when sold separately or uses management’s best estimate of SSP for goods or services not sold separately using estimation techniques that maximize observable data points, including: internal factors relevant to its pricing practices such as costs and margin objectives; standalone sales prices of similar products; pricing policies; percentage of the fee charged for a primary product or service relative to a related product or service; and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trends. Sales, usage-based, value added and other taxes are excluded from revenues. MIS Revenue In the MIS segment, revenue arrangements with multiple elements are generally comprised of two distinct performance obligations, a rating and the related monitoring service. Revenue attributed to ratings of issued securities is generally recognized when the rating is delivered to the issuer. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of certain structured finance products, primarily CMBS, issuers can elect to pay all of the annual monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities. MIS arrangements generally have standard contractual terms for which the stated payments are due at conclusion of the ratings process for ratings and either upfront or in arrears for monitoring services; and are signed by customers either on a per issue basis or at the beginning of the relationship with the customer. In situations when customer fees for an arrangement may be variable, the Company estimates the variable consideration at inception using the expected value method based on analysis of similar contracts in the same line of business, which is constrained based on the Company’s assessment of the realization of the adjustment amount. The Company allocates the transaction price within arrangements that include multiple performance obligations based upon the relative SSP of each service. The SSP for both rating and monitoring services is generally based upon observable selling prices where the rating or monitoring service is sold separately to similar customers. MA Revenue In the MA segment, products and services offered by the Company include hosted research and data subscriptions, installed software subscriptions, perpetual installed software licenses and related maintenance, or PCS, and professional services. Subscription and PCS contracts are generally invoiced in advance of the contractual coverage period, which is principally one year, but can range from 3-5 years; while perpetual software licenses are generally invoiced upon delivery and professional services are invoiced as those services are provided. Payment terms and conditions vary by contract type, but primarily include a requirement of payment within 30 to 60 days. Revenue from research, data and other hosted subscriptions is recognized ratably over the related subscription period as MA's performance obligation to provide access to these products is progressively fulfilled over the stated term of the contract. A large portion of these services are invoiced in the months of November, December and January. Revenue from the sale of a software license, when considered distinct from the related software implementation services, is generally recognized at the time the product master or first copy is delivered or transferred to the customer. However, in instances where the software license (perpetual or subscription) and related implementation services are considered to be one combined performance obligation, revenue is recognized over time using cost based input methods. These methods require judgment to evaluate assumptions, including the total estimated costs to determine progress towards contract completion and to calculate the corresponding amount of revenue to recognize, which is consistent with the pattern of recognition for the software implementation services if considered to be a separate distinct performance obligation. The Company exercises judgment in determining the level of integration and interdependency between the promise to grant the software license and the promise to deliver the related implementation services. This determination influences whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the implementation services and recognized over time. PCS is generally recognized ratably over the contractual period commencing when the software license is fully delivered. Revenue from installed software subscriptions, which includes PCS, is bifurcated into a software license performance obligation and a PCS performance obligation, which follow the patterns of recognition described above. For implementation services and other service projects within the ERS and ESA businesses for which fees are fixed, the Company determined progress towards completion is most accurately measured on a percentage-of-completion basis (input method) as this approach utilizes the most directly observable data points and is therefore used to recognize the related revenue. For implementation services where price varies based on time expended, a time-based measure of progress towards completion of the performance obligation is utilized. Revenue from professional services rendered within the PS LOB is generally recognized as the services are performed over time. Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where an arrangement contains multiple performance obligations, the Company accounts for the individual performance obligations separately if they are considered distinct. Revenue is generally allocated to all performance obligations based upon the relative SSP at contract inception. For certain performance obligations, judgment is required to determine the SSP. Revenue is recognized for each performance obligation based upon the conditions for revenue recognition noted above. In the MA segment, customers usually pay a fixed fee for the products and services based on signed contracts. However, accounting for variable consideration is applied mainly for: i) estimates for cancellation rights and price concessions and ii) T&M based services. The Company estimates the variable consideration associated with cancellation rights and price concessions based on the expected amount to be provided to customers and reduces the amount of revenue to be recognized. T&M based contracts represent about half of MA’s service projects within the ERS and ESA businesses. The Company provides agreed upon services at a contracted daily or hourly rate. The commitment represents a series of goods and services that are substantially the same and have the same pattern of transfer to the customer. As such, if T&M services are sold with other MA products, the Company allocates the variable consideration entirely to the T&M performance obligation if the services are sold at standard pricing or at a similar discount level compared to other performance obligations in the same revenue contract. If these criteria are not met, the Company estimates variable consideration for each performance obligation upfront. Each form of variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Costs to Obtain or Fulfill a Contract with a Customer: Costs to obtain a contract with a customer Costs incurred to obtain customer contracts, such as sales commissions, are deferred and recorded within other current assets and other assets when such costs are determined to be incremental to obtaining a contract, would not have been incurred otherwise and the Company expects to recover those costs. These costs are amortized to expense on a systematic basis consistent with the transfer of the products or services to the customer. Depending on the line of business to which the contract relates, this may be based upon the average economic life of the products sold or average period for which services are provided, inclusive of anticipated contract renewals. Determining the estimated economic life of the products sold requires judgment with respect to anticipated future technological changes. The Company had a balance of $159 million and $110 million in such deferred costs as of December 31, 2019 and December 31, 2018, respectively, and recognized $53 million and $38 million of related amortization during the years ended December 31, 2019 and December 31, 2018, respectively, which is included within SG&A expenses in the consolidated statement of operations. Costs incurred to obtain customer contracts are only in the MA segment. Cost to fulfill a contract with a customer Costs incurred to fulfill customer contracts, are deferred and recorded within other current assets and other assets when such costs relate directly to a contract, generate or enhance resources of the Company that will be used in satisfying performance obligations in the future and the Company expects to recover those costs. The Company capitalizes work-in-process costs for in-progress MIS ratings, which is recognized consistent with the rendering of the related services to the customers, as ratings are issued. The Company had a balance of $11 million in such deferred costs as of December 31, 2019 and December 31, 2018 and recognized $42 million and $40 million of amortization of the costs during the years ended December 31, 2019 and December 31, 2018, respectively, which is included within operating expenses in the consolidated statement of operations. In addition, within the MA segment, the Company capitalizes royalty costs related to third-party information data providers associated with hosted company information and business intelligence products. These costs are amortized to expense consistent with the recognition pattern of the related revenue over time. The Company had a balance of $40 million and $35 million in such deferred costs as of December 31, 2019 and December 31, 2018, respectively, and recognized $56 million and $54 million of related amortization during the years ended December 31, 2019 and December 31, 2018, respectively, which is included within operating expenses in the consolidated statement of operations. Accounts Receivable Allowances Moody’s records variable consideration in respect of estimated future adjustments to customer billings as an adjustment to revenue using the expected value method based on analysis of similar contracts in the same line of business. Such amounts are reflected as additions to the accounts receivable allowance. Additionally, estimates of uncollectible accounts are recorded as bad debt expense and are reflected as additions to the accounts receivable allowance. Actual billing adjustments are recorded against the allowance, depending on the nature of the adjustment. Actual uncollectible account write-offs are recorded against the allowance. Moody’s evaluates its accounts receivable allowance by reviewing and assessing historical collection and adjustment experience and the current status of customer accounts. Moody’s also considers the economic environment of the customers, both from an industry and geographic perspective, in evaluating the need for allowances. Based on its analysis, Moody’s adjusts its allowance as considered appropriate in the circumstances. Leases The Company has operating leases, of which substantially all relate to the lease of office space. The Company’s leases which are classified as finance leases are not material to the consolidated financial statements. The Company determines if an arrangement meets the definition of a lease at contract inception. The Company recognizes in its consolidated balance sheet a lease liability and an ROU Asset for all leases with a lease term greater than 12 months. In determining the length of the lease term, the Company utilizes judgment in assessing the likelihood of whether it is reasonably certain that it will exercise an option to extend or early-terminate a lease, if such options are provided in the lease agreement. ROU Assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU Assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As substantially all of the Company’s leases do not provide an implicit interest rate, the Company uses its estimated secured incremental borrowing rates at the lease commencement date in determining the present value of lease payments. These secured incremental borrowing rates are attributable to the currency in which the lease is denominated. At commencement, the Company’s initial measurement of the ROU Asset is calculated as the present value of the remaining lease payments (i.e., lease liability), with additive adjustments reflecting: initial direct costs (e.g., broker commissions) and prepaid lease payments (if any); and reduced by any lease incentives provided by the lessor if: (i) received before lease commencement or (ii) receipt of the lease incentive is contingent upon future events for which the occurrence is both probable and within the Company’s control. Lease expense for minimum operating lease payments is recognized on a straight-line basis over the lease term. This straight-line lease expense represents a single lease cost which is comprised of both an interest accretion component relating to the lease liability and amortization of the ROU Assets. The Company records this single lease cost in operating and SG&A expenses. However, in situations where an operating lease ROU Asset has been impaired, the subsequent amortization of the ROU Asset is then recorded on a straight-line basis over the remaining lease term and is combined with accretion expense on the lease liability to result in single operating lease cost (which subsequent to impairment will no longer follow a straight-line recognition pattern). The Company has lease agreements which include lease and non-lease components. For the Company’s office space leases, the lease components (e.g., fixed rent payments) and non-lease components (e.g., fixed common-area maintenance costs) are combined and accounted for as a single lease component. Variable lease payments (e.g. variable common-area-maintenance costs) are only included in the initial measurement of the lease liability to the extent those payments depend on an index or a rate. Variable lease payments not included in the lease liability are recognized in net income in the period in which the obligation for those payments is incurred. Contingencies Moody’s is involved in legal and tax proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, the Company records liabilities in the consolidated financial statements when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In instances when a loss is reasonably possible but uncertainties exist related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if material. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. Moody’s also discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. In view of the inherent difficulty of assessing the potential outcome of legal proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation and similar matters and contingencies, particularly when the claimants seek large or indeterminate damages or assert novel legal theories or the matters involve a large number of parties, the Company often cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also may be unable to predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition and to accrue for and disclose such matters as and when required. However, because such matters are inherently unpredictable and unfavorable developments or resolutions can occur, the ultimate outcome of such matters, including the amount of any loss, may differ from those estimates. Operating Expenses Operating expenses include costs associated with the development and production of the Company’s products and services and their delivery to customers. These expenses principally include employee compensation and benefits and travel costs that are incurred in connection with these activities. Operating expenses are charged to income as incurred, except for certain costs related to software implementation services, which may be deferred until related revenue is recognized. Additionally, certain costs incurred to develop internal use software are capitalized and amortized over their estimated useful life. Selling, General and Administrative Expenses SG&A expenses include such items as compensation and benefits for corporate officers and staff and compensation and other expenses related to sales. They also include items such as office rent, business insurance, professional fees and gains and losses from sales and disposals of assets. SG&A expenses are charged to income as incurred, except for certain expenses incurred to develop internal use software (which are capitalized and amortized over their estimated useful life) and the deferral of sales commissions in the MA segment (which are recognized in the period in which the related revenue is recognized). Foreign Currency Translation For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated into U.S. dollars using end of year exchange rates, and revenue and expenses are translated using average exchange rates for the year. For these foreign operations, currency translation adjustments are recorded to other comprehensive income. Comprehensive Income Comprehensive income represents the change in net assets of a business enterprise during a period due to transactions and other events and circumstances from non-owner sources including foreign currency translation impacts, net actuarial gains and losses and net prior service costs related to pension and other retirement plans, gains and losses on derivative instruments designated as net investment hedges or cash flow hedges and unrealized gains and losses on securities designated as ‘available-for-sale’ under ASC Topic 320 (for periods prior to January 1, 2018). Comprehensive income items, including cumulative translation adjustments of entities that are less-than-wholly-owned subsidiaries, will be reclassified to noncontrolling interests and thereby, adjusting accumulated other comprehensive income proportionately in accordance with the percentage of ownership interest of the NCI shareholder. Income Taxes The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes and deferred income taxes reflect the effect of temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes. The Company classifies interest related to unrecognized tax benefits as a component of interest expense in its consolidated statements of operations. Penalties are recognized in other non-operating expenses. For UTPs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. On December 22, 2017, the Tax Act was signed into law, resulting in all previously undistributed foreign earnings being subject to U.S. tax. The Company has provided deferred taxes for those entities whose earnings are not considered indefinitely reinvested. Fair Value of Financial Instruments The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, and certain short-term investments consisting primarily of certificates of deposit and money market deposits, all of which are short-term in nature and, accordingly, approximate fair value. The Company also invests in mutual funds, which are accounted for as equity securities with readily determinable fair values under ASC Topic 321. Beginning in the first quarter of 2018, the Company measures these investments at fair value with both realized gains and losses and unrealized holding gains and losses for these investments included in net income. Prior to January 1, 2018, the investments in mutual funds were designated as ‘available for sale’ under Topic 320 of the ASC. Accordingly, unrealized gains and losses on these investments were recorded to other comprehensive income and were reclassified out of accumulated other comprehensive income |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Revenue by Category The following table presents the Company’s revenues disaggregated by LOB: Year Ended December 31, 2019 2018 2017 (1) MIS: Corporate finance (CFG) (3) Investment-grade $ 379 $ 271 $ 335 High-yield 258 175 254 Bank loans 313 379 351 Other accounts (CFG) (2) 547 554 508 Total CFG 1,497 1,379 1,448 Structured finance (SFG) (3) Asset-backed securities 99 107 97 RMBS 95 98 89 CMBS 81 78 87 Structured credit 148 196 165 Other accounts (SFG) 4 2 2 Total SFG 427 481 440 Financial institutions (FIG) Banking 320 290 300 Insurance 119 114 102 Managed investments 25 25 22 Other accounts (FIG) 12 13 12 Total FIG 476 442 436 Public, project and infrastructure finance (PPIF) Public finance / sovereign 222 185 218 Project and infrastructure 224 206 213 Total PPIF 446 391 431 Total ratings revenue 2,846 2,693 2,755 MIS Other 29 19 19 Total external revenue 2,875 2,712 2,774 Intersegment royalty 134 124 112 Total MIS 3,009 2,836 2,886 MA: Research, data and analytics (RD&A) (4) 1,273 1,121 826 Enterprise risk solutions (ERS) (4) 522 451 455 Professional services (PS) 159 159 149 Total external revenue 1,954 1,731 1,430 Intersegment revenue 9 12 16 Total MA 1,963 1,743 1,446 Eliminations (143) (136) (128) Total MCO $ 4,829 $ 4,443 $ 4,204 (1) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard. (2) Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue. (3) Pursuant to certain organizational realignments in 2019, MIS now reports revenue from REITs, which was previously classified in the SFG LOB, as a component of the CFG LOB. The amounts reclassified were not material and prior year revenue by LOB has been reclassified to conform to this new presentation. (4) Pursuant to organizational/product realignments in 2019, revenue relating to the Bureau van Dijk FACT product, a credit assessment and origination software solution, is now reported in the ERS LOB. This revenue was previously reported in the RD&A LOB. Prior year revenue by LOB has been reclassified to conform to this new presentation, and the amounts reclassified were not material. The following table presents the Company’s revenues disaggregated by LOB and geographic area: Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017 (1) U.S. Non-U.S. Total U.S. Non-U.S. Total U.S. Non-U.S. Total MIS: Corporate finance (2) $ 968 $ 529 $ 1,497 $ 894 $ 485 $ 1,379 $ 961 $ 487 $ 1,448 Structured finance (2) 270 157 427 301 180 481 288 152 440 Financial institutions 200 276 476 194 248 442 186 250 436 Public, project and infrastructure finance 282 164 446 229 162 391 266 165 431 Total ratings revenue 1,720 1,126 2,846 1,618 1,075 2,693 1,701 1,054 2,755 MIS Other 1 28 29 1 18 19 1 18 19 Total MIS 1,721 1,154 2,875 1,619 1,093 2,712 1,702 1,072 2,774 MA: Research, data and analytics (3) 558 715 1,273 481 640 1,121 424 402 826 Enterprise risk solutions (3) 201 321 522 170 281 451 167 288 455 Professional services 64 95 159 60 99 159 55 94 149 Total MA 823 1,131 1,954 711 1,020 1,731 646 784 1,430 Total MCO $ 2,544 $ 2,285 $ 4,829 $ 2,330 $ 2,113 $ 4,443 $ 2,348 $ 1,856 $ 4,204 (1) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard. (2) Pursuant to certain organizational realignments in 2019, MIS now reports revenue from REITs, which was previously classified in the SFG LOB, as a component of the CFG LOB. The amounts reclassified were not material and prior years revenue by LOB has been reclassified to conform to this new presentation. (3) Pursuant to organizational/product realignments in 2019, revenue relating to the Bureau van Dijk FACT product, a credit assessment and origination software solution, is now reported in the ERS LOB. This revenue was previously reported in the RD&A LOB. Prior years revenue by LOB has been reclassified to conform to this new presentation, and the amounts reclassified were not material. The following table presents the Company's reportable segment revenues disaggregated by segment and geographic region: Year Ended December 31, 2019 2018 2017 MIS: U.S. $ 1,721 $ 1,619 $ 1,702 Non-U.S.: EMEA 686 669 638 Asia-Pacific 320 300 292 Americas 148 124 142 Total Non-U.S. 1,154 1,093 1,072 Total MIS 2,875 2,712 2,774 MA: U.S. 823 711 646 Non-U.S.: EMEA 760 708 494 Asia-Pacific 231 193 179 Americas 140 119 111 Total Non-U.S. 1,131 1,020 784 Total MA 1,954 1,731 1,430 Total MCO $ 4,829 $ 4,443 $ 4,204 The tables below summarize the split between transaction and relationship revenue. In the MIS segment, excluding MIS Other, transaction revenue represents the initial rating of a new debt issuance as well as other one-time fees while relationship revenue represents the 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. In MIS Other, transaction revenue represents revenue from professional services and outsourcing engagements and relationship revenue represents subscription-based revenues. In the MA segment, relationship revenue represents subscription-based revenues and software maintenance revenue. Transaction revenue in MA represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, training and certification services, and outsourced research and analytical engagements. Year Ended December 31, 2019 2018 2017 (2) Transaction (1) Relationship Total Transaction (1) Relationship Total Transaction (1) Relationship Total Corporate Finance $ 1,057 $ 440 $ 1,497 $ 949 $ 430 $ 1,379 $ 1,053 $ 395 $ 1,448 71 % 29 % 100 % 69 % 31 % 100 % 73 % 27 % 100 % Structured Finance $ 246 $ 181 $ 427 $ 310 $ 171 $ 481 $ 279 $ 161 $ 440 58 % 42 % 100 % 64 % 36 % 100 % 63 % 37 % 100 % Financial Institutions $ 212 $ 264 $ 476 $ 187 $ 255 $ 442 $ 195 $ 241 $ 436 45 % 55 % 100 % 42 % 58 % 100 % 45 % 55 % 100 % Public, Project and Infrastructure Finance $ 292 $ 154 $ 446 $ 238 $ 153 $ 391 $ 278 $ 153 $ 431 65 % 35 % 100 % 61 % 39 % 100 % 65 % 35 % 100 % MIS Other $ 2 $ 27 $ 29 $ 2 $ 17 $ 19 $ 3 $ 16 $ 19 7 % 93 % 100 % 11 % 89 % 100 % 16 % 84 % 100 % Total MIS $ 1,809 $ 1,066 $ 2,875 $ 1,686 $ 1,026 $ 2,712 $ 1,808 $ 966 $ 2,774 63 % 37 % 100 % 62 % 38 % 100 % 65 % 35 % 100 % Research, data and analytics $ 16 $ 1,257 $ 1,273 $ 18 $ 1,103 $ 1,121 $ 25 $ 801 $ 826 1 % 99 % 100 % 2 % 98 % 100 % 3 % 97 % 100 % Enterprise risk solutions $ 118 $ 404 $ 522 $ 99 $ 352 $ 451 $ 137 $ 318 $ 455 23 % 77 % 100 % 22 % 78 % 100 % 30 % 70 % 100 % Professional services $ 159 $ — $ 159 $ 159 $ — $ 159 $ 149 $ — $ 149 100 % — % 100 % 100 % — % 100 % 100 % — % 100 % Total MA $ 293 $ 1,661 $ 1,954 $ 276 $ 1,455 $ 1,731 $ 311 $ 1,119 $ 1,430 15 % 85 % 100 % 16 % 84 % 100 % 22 % 78 % 100 % Total Moody’s Corporation $ 2,102 $ 2,727 $ 4,829 $ 1,962 $ 2,481 $ 4,443 $ 2,119 $ 2,085 $ 4,204 44 % 56 % 100 % 44 % 56 % 100 % 50 % 50 % 100 % (1) Revenue from software implementation services and risk management advisory projects in MA, while classified by management as transactional revenue, is recognized over time under the New Revenue Accounting Standard (please also refer to the table below). (2) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard. The following table presents the timing of revenue recognition: Year Ended December 31, 2019 Year Ended December 31, 2018 MIS MA Total MIS MA Total Revenue recognized at a point in time $ 1,809 $ 132 $ 1,941 $ 1,686 $ 99 $ 1,785 Revenue recognized over time 1,066 1,822 2,888 1,026 1,632 2,658 Total $ 2,875 $ 1,954 $ 4,829 $ 2,712 $ 1,731 $ 4,443 Unbilled Receivables, Deferred Revenue and Remaining Performance Obligations Unbilled receivables At December 31, 2019 and December 31, 2018, accounts receivable included approximately $346 million and $312 million, respectively, of unbilled receivables related to the MIS segment. Certain MIS arrangements contain contractual terms whereby the customers are billed in arrears for annual monitoring services and rating fees, requiring revenue to be accrued as an unbilled receivable as such services are provided. In addition, for certain MA arrangements, the timing of when the Company has the unconditional right to consideration and recognizes revenue occurs prior to invoicing the customer. Consequently, at December 31, 2019 and December 31, 2018, accounts receivable included approximately $53 million and $60 million, respectively, of unbilled receivables related to the MA segment. Deferred revenue The Company recognizes deferred revenue when a contract requires a customer to pay consideration to the Company in advance of when revenue is recognized. This deferred revenue is relieved when the Company satisfies the related performance obligation and revenue is recognized. Significant changes in the deferred revenue balances during the year ended December 31, 2019 are as follows: Year Ended December 31, 2019 MIS MA Total Balance at January 1, 2019 $ 325 $ 750 $ 1,075 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (209) (714) (923) Increases due to amounts billable excluding amounts recognized as revenue during the period 202 789 991 Increases due to acquisitions during the period 3 6 9 Effect of exchange rate changes 1 9 10 Total changes in deferred revenue (3) 90 87 Balance at December 31, 2019 $ 322 $ 840 $ 1,162 Deferred revenue - current $ 214 $ 836 $ 1,050 Deferred revenue - noncurrent $ 108 $ 4 $ 112 For the MA segment, for the year ended December 31, 2019, the increase in the deferred revenue balance was primarily due to organic growth. Significant changes in the deferred revenue balances during the year ended December 31, 2018 are as follows: Year Ended December 31, 2018 MIS MA Total Balance at January 1, 2018 (after New Revenue Accounting Standard transition adjustment) $ 334 $ 612 $ 946 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (218) (590) (808) Increases due to amounts billable excluding amounts recognized as revenue during the period 216 730 946 Increases due to acquisitions during the period — 16 16 Effect of exchange rate changes (7) (18) (25) Total changes in deferred revenue (9) 138 129 Balance at December 31, 2018 $ 325 $ 750 $ 1,075 Deferred revenue—current $ 207 $ 746 $ 953 Deferred revenue—noncurrent $ 118 $ 4 $ 122 For the MA segment, for the year ended December 31, 2018, the increase in the deferred revenue balance was primarily due to organic growth and the Reis acquisition in the fourth quarter of 2018. Remaining performance obligations Remaining performance obligations in the MIS segment largely reflect deferred revenue related to monitoring fees for certain structured finance products, primarily CMBS, where the issuers can elect to pay the monitoring fees for the life of the security in advance. As of December 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $140 million. The Company expects to recognize into revenue approximately 20% of this balance within one year, approximately 50% of this balance between one to five years and the remaining amount thereafter. With respect to the remaining performance obligations for the MIS segment, the Company has applied a practical expedient set forth in ASC Topic 606 permitting the omission from the table above for unsatisfied performance obligations relating to contracts with an original expected length of one year or less. Remaining performance obligations in the MA segment include both amounts recorded as deferred revenue on the balance sheet as of December 31, 2019 as well as amounts not yet invoiced to customers as of December 31, 2019 largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription based products. As of December 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $1.7 billion. The Company expects to recognize into revenue approximately 70% of this balance within one year, approximately 20% of this balance between one to two years and the remaining amount thereafter. |
RECONCILIATION OF WEIGHTED AVER
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING | RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING Below is a reconciliation of basic to diluted shares outstanding: Year Ended December 31, 2019 2018 2017 Basic 189.3 191.6 191.1 Dilutive effect of shares issuable under stock-based compensation plans 2.3 2.8 3.1 Diluted 191.6 194.4 194.2 Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above 0.2 0.4 0.6 |
ACCELERATED SHARE REPURCHASE PR
ACCELERATED SHARE REPURCHASE PROGRAM | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Accelerated Share Repurchase | ACCELERATED SHARE REPURCHASE PROGRAM On February 20, 2019, the Company entered into an ASR agreement with a financial institution counterparty to repurchase $500 million of its outstanding common stock. The Company paid $500 million to the counterparty and received an initial delivery of 2.2 million shares of its common stock. Final settlement of the ASR agreement was completed on April 26, 2019 and the Company received delivery of an additional 0.6 million shares of the Company’s common stock. In total, the Company repurchased 2.8 million shares of the Company’s common stock during the term of the ASR Agreement, based on the volume-weighted average price (net of discount) of $180.33/share over the duration of the program. The initial share repurchase and final share settlement were recorded as a reduction to shareholders’ equity. |
CASH EQUIVALENTS AND INVESTMENT
CASH EQUIVALENTS AND INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
CASH EQUIVALENTS AND INVESTMENTS | CASH EQUIVALENTS AND INVESTMENTS The table below provides additional information on the Company’s cash equivalents and investments: As of December 31, 2019 Cost Gross Unrealized Gains Fair Value Balance sheet location Cash and cash equivalents Short-term investments Other assets Certificates of deposit and money market deposit accounts (1) $ 971 $ — $ 971 $ 866 $ 95 $ 10 Open ended mutual funds $ 3 $ — $ 3 $ — $ 3 $ — As of December 31, 2018 Cost Gross Unrealized Gains Fair Value Balance sheet location Cash and cash equivalents Short-term investments Other assets Money market mutual funds $ 15 $ — $ 15 $ 15 $ — $ — Certificates of deposit and money market deposit accounts (1) $ 1,022 $ — $ 1,022 $ 904 $ 116 $ 2 Open ended mutual funds $ 29 $ 4 $ 33 $ — $ 17 $ 16 (1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes. Derivatives and non-derivative instruments designated as accounting hedges: Interest Rate Swaps Designated as Fair Value Hedges The Company has entered into interest rate swaps to convert the fixed interest rate on certain of its long-term debt to a floating interest rate based on the 3-month LIBOR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the long-term debt, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the debt. The changes in the fair value of the swaps and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest expense, net in the Company’s consolidated statement of operations. The following table summarizes the Company’s interest rate swaps designated as fair value hedges: Nature of Swap Notional Amount Floating Interest Rate Hedged Item 2019 2018 2010 Senior Notes due 2020 Pay Floating/Receive Fixed $ — $ 500 3-month LIBOR 2012 Senior Notes due 2022 Pay Floating/Receive Fixed $ 330 $ 330 3-month LIBOR 2017 Senior Notes due 2021 Pay Floating/Receive Fixed $ 500 $ 500 3-month LIBOR 2017 Senior Notes due 2023 Pay Floating/Receive Fixed $ 250 $ — 3-month LIBOR Total $ 1,080 $ 1,330 Refer to Note 19 for information on the cumulative amount of fair value hedging adjustments included in the carrying amount of the above hedged items. The following table summarizes the impact to the statement of operations of the Company’s interest rate swaps designated as fair value hedges: 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 Year Ended December 31, 2019 2018 2017 Interest expense, net $ (208) $ (215) $ (209) Location on Consolidated Statements of Operations Net interest settlements and accruals on interest rate swaps Interest expense, net $ 3 $ (2) $ 7 Fair value changes on interest rate swaps Interest expense, net 25 2 (9) Fair value changes on hedged debt Interest expense, net $ (25) $ (2) $ 9 Cash flow hedges In the fourth quarter of 2018, the Company entered into and settled $250 million notional amount treasury rate locks, which were designated as cash flow hedges and used to manage the Company’s interest rate risk associated with the anticipated issuance of the 2018 Senior Notes Due 2029, which are more fully discussed in Note 19. The Company settled these treasury rate locks in December 2018 in connection with the issuance of the 2018 Senior Notes Due 2029. The loss on these treasury rate locks was recorded in comprehensive income (see tables below relating to gains and losses on cash flow and net investment hedges) and will be amortized to interest expense over the term of the 2018 Senior Notes Due 2029. Net Investment Hedges The Company has designated €500 million of the 2015 Senior Notes Due 2027 and €750 million of the 2019 Senior Notes due 2030 as net investment hedges. These hedges are designated as accounting hedges under the applicable sections of ASC Topic 815 and will end upon the repayment of the notes in 2027 and 2030, respectively, unless terminated early at the discretion of the Company. The Company enters into cross-currency swaps to mitigate FX exposure related to a portion of the Company’s euro net investment in certain foreign subsidiaries against changes in euro/USD exchange rates. The following table provides information on the cross-currency swaps designated as net investment hedges under ASC Topic 815: December 31, 2019 Pay Receive Nature of Swap Notional Amount Weighted Average Interest Rate Notional Amount Weighted Average Interest Rate Pay Fixed/Receive Fixed € 1,079 1.43% $ 1,220 3.96% Pay Floating/Receive Floating 931 Based on 3-month EURIBOR 1,080 Based on 3-month USD LIBOR Total € 2,010 $ 2,300 As of December 31, 2019, these hedges will expire and the notional amounts will be settled in 2021, 2022, 2023, and 2024 for €688 million, €438 million, €442 million and €442 million of the total notional amount, respectively, unless terminated early at the discretion of the Company. December 31, 2018 Pay Receive Nature of Swap Notional Amount Weighted Average Interest Rate Notional Amount Weighted Average Interest Rate Pay Floating/Receive Floating € 710 Based on 3-month EURIBOR $ 830 Based on 3-month USD LIBOR Total € 710 $ 830 The following table provides information on the gains/(losses) on the Company’s net investment and cash flow hedges: Amount of Gain/(Loss) Amount of Gain/(Loss) Gain/(Loss) Recognized in Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships Year Ended December 31, Year Ended December 31, Year Ended December 31, 2019 2018 2017 (2) 2019 2018 2017 (2) 2019 (3) 2018 (3) 2017 FX forward contracts $ 4 $ — $ 1 $ 2 $ — $ — $ — $ — $ — Cross currency swaps 29 12 — — — — 52 11 — Long-term debt (7) (1) 22 (37) — — — — — — Total net investment hedges $ 26 $ 34 $ (36) $ 2 $ — $ — $ 52 $ 11 $ — Derivatives in Cash Flow Hedging Cross currency swap $ — $ 2 $ 6 $ — $ — $ 8 $ — $ — $ — Interest rate contracts — (2) — — — (1) — — — Total cash flow hedges — — 6 — — 7 — — — Total $ 26 $ 34 $ (30) $ 2 $ — $ 7 $ 52 $ 11 $ — (1) Due to the Company's adoption of ASU 2018-02 during 2019, $3 million related to the tax effect of this net investment hedge was reclassified to retained earnings. Refer to Note 1 for further details. (2) For the year ended December 31, 2017, amount of gain or (loss) represents only the effective portion of the hedging relationship as this period was prior to the Company’s 2018 initial application of ASU 2017-12. (3) Effective with the adoption of ASU 2017-12, the Company has elected to assess the effectiveness of its net investment hedges based on changes in spot exchange rates. Accordingly, amounts related to cross-currency swaps recognized directly into Net Income during 2018 and 2019 represent net periodic interest settlements and accruals, which are recognized in interest expense, net. The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCI is as follows: Cumulative Gains/(Losses), net of tax December 31, 2019 December 31, 2018 Net investment hedges Cross currency swaps $ 41 $ 12 FX forwards 26 24 Long-term debt (13) (3) Total net investment hedges 54 33 Cash flow hedges Interest Rate Contract (2) (2) Cross-currency swap 2 2 Total cash flow hedges — — Total net gain in AOCI $ 54 $ 33 Derivatives not designated as accounting hedges: Foreign exchange forwards The Company also enters into foreign exchange forward contracts to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than a subsidiary’s functional currency. These forward contracts are not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating (expense) income, net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through February 2020. The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: December 31, 2019 December 31, 2018 Notional Amount of Currency Pair: Sell Buy Sell Buy Contracts to sell USD for GBP $ 235 £ 178 $ 310 £ 241 Contracts to sell USD for Japanese Yen $ 29 ¥ 3,200 $ 14 ¥ 1,600 Contracts to sell USD for Canadian dollars $ 83 C$ 110 $ 99 C$ 130 Contracts to sell USD for Singapore dollars $ 41 S$ 56 $ — S$ — Contracts to sell USD for Euros $ 421 € 378 $ 213 € 185 Contracts to sell Euros for GBP € 25 £ 21 € — £ — NOTE: € = Euro, £ = British pound, S$ = Singapore dollar, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar Foreign Exchange Options and forward contracts relating to the acquisition of Bureau van Dijk The Company entered into a foreign currency collar in 2017 consisting of option contracts to economically hedge the Bureau van Dijk euro denominated purchase price (as discussed further in Note 9 of the financial statements). These option contracts were not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. The foreign currency option contracts consisted of separate put and call options each in the aggregate notional amount of €2.7 billion. This collar was settled at the end of July 2017, in advance of the August 10, 2017 closing of the Bureau van Dijk acquisition. The Company entered into foreign exchange forwards to hedge the Bureau van Dijk purchase price for the period from the settlement of the aforementioned foreign currency collar until the closing date on August 10, 2017. These forward contracts were not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. The foreign exchange contracts were to sell $2.8 billion and buy €2.4 billion and sell $41 million and buy £31 million. The following table summarizes the impact to the consolidated statements of operations relating to the net gain (loss) on the Company’s derivatives which are not designated as hedging instruments: Year Ended December 31, Derivatives Not Designated as Accounting Hedges Location on Statement of Operations 2019 2018 2017 FX forwards Other non-operating expense, net $ (11) $ (52) $ 22 FX collar relating to Bureau van Dijk acquisition Purchase Price Hedge Gain — — 101 FX forwards relating to Bureau van Dijk acquisition Purchase Price Hedge Gain — — 10 $ (11) $ (52) $ 133 The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of derivative instruments as well as the carrying value of its non-derivative debt instruments designated and qualifying as net investment hedges: Derivative and Non-derivative Instruments Balance Sheet Location December 31, 2019 December 31, 2018 Assets: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other assets $ 56 $ 19 Interest rate swaps designated as fair value hedges Other assets 27 8 Total derivatives designated as accounting hedges 83 27 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Other current assets 9 1 Total assets $ 92 $ 28 Liabilities: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other liabilities $ — $ 3 Interest rate swaps Other liabilities — 5 Total derivatives designated as accounting hedges — 8 Non-derivative instrument designated as accounting hedge: Long-term debt designated as net investment hedge Long-term debt 1,403 572 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Accounts payable and accrued liabilities — 8 Total liabilities $ 1,403 $ 588 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of: December 31, 2019 2018 Office and computer equipment (3 - 10 year estimated useful life) $ 221 $ 242 Office furniture and fixtures (3 - 10 year estimated useful life) 51 52 Internal-use computer software (1 - 10 year estimated useful life) 619 574 Leasehold improvements and building (1 - 21 year estimated useful life) 240 242 Total property and equipment, at cost 1,131 1,110 Less: accumulated depreciation and amortization (839) (790) Total property and equipment, net $ 292 $ 320 Depreciation and amortization expense related to the above assets was $97 million, $90 million, and $97 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS The following is a discussion of material acquisitions completed by the Company. The business combinations described below are accounted for using the acquisition method of accounting whereby assets acquired and liabilities assumed were recognized at fair value on the date of the transaction. Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded to goodwill. Goodwill typically results through expected synergies from combining operations of an acquiree and an acquirer, anticipated new customer acquisition and products, as well as from intangible assets that do not qualify for separate recognition. Reis On October 15, 2018, a subsidiary of the Company acquired 100% of Reis, Inc., a provider of commercial real estate market information and analytical tools to real estate professionals. The cash payment of $278 million was funded with cash on hand. The acquisition further expands Moody’s Analytics’ network of data and analytics providers in the commercial real estate space. Shown below is the final purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: (Amounts in millions) Current assets $ 32 Property and equipment 4 Intangible assets: Customer relationships (14 year weighted average life) $ 77 Database (5 year weighted average life) 13 Product technology (7 year weighted average life) 10 Trade name (10 year weighted average life) 4 Total intangible assets (12 year weighted average life) 104 Goodwill 183 Deferred tax assets 13 Liabilities: Deferred revenue $ (14) Accounts payable and accrued liabilities (20) Deferred tax liabilities (24) Total liabilities (58) Net assets acquired $ 278 Current assets in the table above include acquired cash of $24 million. Additionally, current assets include accounts receivable of approximately $6 million. Goodwill The goodwill recognized as a result of this acquisition includes, among other things, the value of combining the complementary product portfolios of the Company and Reis, which is expected to extend the Company’s reach to new and evolving market segments as well as cost savings synergies, expected new customer acquisitions and products. Goodwill, which has been assigned to the MA segment, is not deductible for tax purposes. Reis is a separate reporting unit for the purposes of the Company’s annual goodwill impairment assessment. Transaction costs Transaction costs directly related to the Reis acquisition were not material. Bureau van Dijk On August 10, 2017, a subsidiary of the Company acquired 100% of Yellow Maple I B.V., an indirect parent company of Bureau van Dijk Electronic Publishing B.V., a global provider of business intelligence and company information products. The cash payment of $3,542 million was funded with a combination of cash on hand, primarily offshore, and new debt financing. Shown below is the final purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: (Amounts in millions) Current assets $ 158 Property and equipment 4 Intangible assets: Customer relationships (23 year weighted average life) $ 999 Product technology (12 year weighted average life) 259 Trade name (18 year weighted average life) 82 Database (10 year weighted average life) 13 Total intangible assets (21 year weighted average life) 1,353 Goodwill 2,615 Other assets 6 Liabilities: Deferred revenue (101) Accounts payable and accrued liabilities (44) Deferred tax liabilities, net (330) Other liabilities $ (119) Total liabilities (594) Net assets acquired $ 3,542 Current assets in the table above include acquired cash of $36 million. Additionally, current assets include accounts receivable of approximately $88 million (net of an allowance for uncollectible accounts of $4 million). The acquired deferred revenue balance of approximately $154 million was reduced by $53 million as part of acquisition accounting to establish the fair value of deferred revenue. This reduced reported revenue by $53 million over the remaining contractual period of in-progress customer arrangements assumed as of the acquisition date, and resulted in approximately $17 million and $36 million less in reported revenue in the years ended December 31, 2018 and 2017, respectively. Goodwill The goodwill recognized as a result of this acquisition includes, among other things, the value of combining the complementary product portfolios of the Company and Bureau van Dijk, which is expected to extend the Company’s reach to new and evolving market segments as well as cost savings synergies, expected new customer acquisitions and products. Goodwill, which has been assigned to the MA segment, is not deductible for tax purposes. Bureau van Dijk is a separate reporting unit for purposes of the Company’s annual goodwill impairment assessment. Other Liabilities Assumed In connection with the acquisition, the Company assumed liabilities relating to UTPs as well as deferred tax liabilities which relate to acquired intangible assets. UTPs are included in other liabilities in the table above. Supplementary Unaudited Pro Forma Information Supplemental information on an unaudited pro forma basis is presented below for the year ended December 31, 2017 as if the acquisition of Bureau van Dijk occurred on January 1, 2016. The pro forma financial information is presented for comparative purposes only and is based on certain estimates and assumptions, which the Company believes to be reasonable but not necessarily indicative of future results of operations or the results that would have been reported if the acquisition had been completed at January 1, 2016. The unaudited pro forma information includes amortization of acquired intangible assets based on the purchase price allocation and an estimate of useful lives reflected above, and incremental financing costs resulting from the acquisition, net of income tax, which was estimated using the weighted average statutory tax rates in effect in the jurisdiction for which the pro forma adjustment relates. (Amounts in millions) For the year ended Pro forma Revenue $ 4,415 Pro forma Net Income attributable to Moody’s $ 1,012 The unaudited pro forma results do not include any anticipated cost savings or other effects of the planned integration of Bureau van Dijk. Accordingly, the pro forma results above are not necessarily indicative of the results that would have been reported if the acquisition had occurred on the dates indicated, nor are the pro forma results indicative of results which may occur in the future. The Bureau van Dijk results included in the table above have been converted to U.S. GAAP from IFRS as issued by the IASB and have been translated to USD at rates in effect for the periods presented. In addition, a corresponding pro forma adjustment was included to add back the approximate $36 million reduction to reported revenue for the period from August 10, 2017 to December 31, 2017 relating to the deferred revenue adjustment required as part of acquisition accounting as of the actual August 10, 2017 acquisition date. Other Acquisitions and Strategic Initiatives Below is a discussion of acquisitions and other strategic initiatives executed by the Company during the years ended December 31, 2019, 2018 and 2017. The purchase prices for these acquisitions were not material and the near term impact to the Company's financial statements is not expected to be material. The following strategic initiatives operate in the MIS reportable segment: In October 2019, the Company acquired a minority stake in SynTao Green Finance (STFG), a provider of ESG data and analytics based in and serving China. In July 2019, the Company acquired a majority stake in Four Twenty Seven, Inc., a provider of data, intelligence, and analysis related to physical climate risks. Four Twenty Seven Climate Solutions revenue is reported in the MIS Other LOB. In connection with this transaction, Moody's recognized a Redeemable Non-controlling Interest for the portion of Four Twenty Seven which the Company does not own. This Redeemable Non-controlling interest was not material. In April 2019, the Company acquired a majority stake in Vigeo Eiris, a provider of Environmental, Social and Governance (ESG) research, data and assessments. The acquisition furthers Moody’s objective of promoting global standards for ESG for use by market participants. Vigeo Eiris' revenue will be reported in the MIS Other LOB. The following strategic initiatives operate in the MA reportable segment: In October 2019, the Company acquired the ABS Suite business, which includes a software platform used by issuers and trustees for the administration of asset-backed and mortgage-backed securities programs. ABS Suite revenue is reported in the RD&A LOB. In July 2019, the Company acquired RiskFirst, a company providing risk analytic solutions for the asset management and pension fund communities. RiskFirst revenue is reported in the ERS LOB. In August 2018, the Company acquired 100% of Omega Performance, a provider of online credit training. Revenue for Omega Performance is reported in the PS LOB. In February 2017, a subsidiary of the Company acquired the structured finance data and analytics business of SCDM Financial. Revenue for SCDM is reported in the RD&A LOB. The following strategic initiative is a corporate initiative: |
DIVESTITURE
DIVESTITURE | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURE | DIVESTITURE On November 8, 2019, the Company completed the sale of MAKS to Equistone Partners Europe Limited (Equistone), a European private equity firm for $226 million in net cash proceeds. The final cash consideration received will be subject to customary post-closing completion adjustments. This divestiture resulted in a loss of $14 million, which included $32 million of currency translation losses reclassified from AOCI to the statement of operations. Additionally, in connection with this divestiture, the Company has recorded a $43 million liability for certain indemnification provisions. |
GOODWILL AND OTHER ACQUIRED INT
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS The following table summarizes the activity in goodwill: Year Ended December 31, 2019 MIS MA Consolidated Gross Accumulated Net Gross Accumulated Net Gross Accumulated Net Balance at beginning $ 258 $ — $ 258 $ 3,535 $ (12) $ 3,523 $ 3,793 $ (12) $ 3,781 Additions/ adjustments (1) 53 — 53 61 — 61 114 — 114 Foreign currency 4 — 4 (14) — (14) (10) — (10) Divestiture of MAKS (See Note 10) — — — (163) — (163) (163) — (163) Ending balance $ 315 $ — $ 315 $ 3,419 $ (12) $ 3,407 $ 3,734 $ (12) $ 3,722 Year Ended December 31, 2018 MIS MA Consolidated Gross Accumulated Net Gross Accumulated Net Gross Accumulated Net Balance at beginning of year $ 285 $ — $ 285 $ 3,480 $ (12) $ 3,468 $ 3,765 $ (12) $ 3,753 Additions/ adjustments (2) — — — 211 — 211 211 — 211 Foreign currency translation adjustments (27) — (27) (156) — (156) (183) — (183) Ending balance $ 258 $ — $ 258 $ 3,535 $ (12) $ 3,523 $ 3,793 $ (12) $ 3,781 (1) The 2019 additions/adjustments for the MIS segment in the table above relate to the acquisitions of Vigeo Eiris and Four Twenty Seven. The 2019 additions/adjustments for the MA segment in the table above relate to the acquisitions of RiskFirst and ABS Suite. (2) The 2018 additions/adjustments for the MA segment in the table above primarily relate to the acquisitions of Reis and Omega Performance. Acquired intangible assets and related amortization consisted of: December 31, 2019 2018 Customer relationships $ 1,325 $ 1,368 Accumulated amortization (235) (214) Net customer relationships 1,090 1,154 Trade secrets 30 30 Accumulated amortization (29) (28) Net trade secrets 1 2 Software/product technology 372 353 Accumulated amortization (131) (102) Net software/product technology 241 251 Trade names 150 155 Accumulated amortization (30) (34) Net trade names 120 121 Other (1) 80 70 Accumulated amortization (34) (32) Net other 46 38 Total $ 1,498 $ 1,566 (1) Other intangible assets primarily consist of databases, covenants not to compete, and acquired ratings methodologies and models. Amortization expense relating to acquired intangible assets is as follows: Year Ended December 31, 2019 2018 2017 Amortization expense $ 103 $ 102 $ 61 Estimated future annual amortization expense for intangible assets subject to amortization is as follows: Year Ending December 31, 2020 $ 99 2021 99 2022 99 2023 96 2024 94 Thereafter 1,011 Total estimated future amortization $ 1,498 Matters concerning the ICRA reporting unit On August 29, 2019, the board of directors of ICRA terminated the employment of ICRA's CEO and on September 28, 2019, the shareholders of ICRA voted to remove the former CEO from his position on ICRA's board of directors. ICRA has reported that the Securities and Exchange Board of India (SEBI) issued an adjudication order dated December 26, 2019 imposing a penalty of INR 25 lakh (approximately $35,000) on ICRA in connection with credit ratings assigned to one of ICRA’s customers and the customer’s subsidiaries. ICRA has further reported that: (i) it is appealing that order; and (ii) it has received a related "show cause" notice from SEBI asking ICRA to demonstrate why the penalty imposed should not be increased. In addition, ICRA has disclosed that it is addressing anonymous allegations that were forwarded to ICRA by SEBI, as well as certain additional allegations made during the course of the ongoing internal examination into those anonymous allegations. As of the date of this annual report on Form 10-K, the Company is unable to estimate the financial impact, if any, that may result from a potential unfavorable conclusion of these matters or any other ICRA inquiry. An unfavorable resolution of such matters may negatively impact ICRA’s future operating results, which could result in an impairment of goodwill and amortizable intangible assets in future quarters. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING On October 26, 2018, the chief executive officer of Moody’s approved a restructuring program (the “2018 Restructuring Program”) that the Company currently estimates will result in annualized savings of approximately $60 million per year, a portion of which benefited 2019. The 2018 Restructuring Program, the scope of which was expanded in the second quarter of 2019, is now estimated to result in total pre-tax charges of $105 to $110 million. The 2018 Restructuring Program includes relocation of certain functions from high-cost to lower-cost jurisdictions, a reduction of staff, including from recent acquisitions and pursuant to a review of the business criticality of certain positions, and the rationalization and exit of certain real estate leases due to consolidation of various business activities. The exit from certain leased office space began in the fourth quarter of 2018 and will entail approximately $50 million of the charges to either terminate or sublease the affected real estate leases. The 2018 Restructuring Program is also anticipated to represent approximately $60 million of personnel-related restructuring charges, an amount that includes severance and related costs primarily determined under the Company’s existing severance plans. Cash outlays associated with the employee termination cost component of the 2018 Restructuring Program are anticipated to be approximately $60 million, which will be paid through 2021. Total expenses included in the accompanying consolidated statements of operations relating to the aforementioned restructuring plan is as follows: Year Ended December 31, 2019 2018 2017 2018 Restructuring Program $ 60 $ 49 $ — Changes to the restructuring liability were as follows: 2018 Restructuring Program: Employee Termination Costs Contract Termination Costs Total Restructuring Liability (2) Balance as of December 31, 2017 $ — $ — $ — Cost incurred and adjustments 33 12 45 Cash payments and adjustments (3) — (3) Balance as of December 31, 2018 $ 30 $ 12 $ 42 Adoption of New Lease Accounting Standard (1) — (11) (11) Cost incurred and adjustments 26 5 31 Cash payments and adjustments (35) (3) (38) Balance as of December 31, 2019 $ 21 $ 3 $ 24 Cumulative expense incurred to date $ 59 $ 50 (1) Upon the adoption of the New Lease Accounting Standard, the Company recorded a reclassification of $11 million of liabilities in the first quarter of 2019 for costs associated with certain real estate leases which were exited in previous years, as a reduction of the ROU Asset capitalized upon adoption. (2) The liability excludes $4 million of non-cash acceleration of amortization of leasehold improvements relating to the rationalization and exit of certain real estate leases as well as $25 million of ROU Asset impairment charges for the year ended December 31, 2019. The fair value of the impaired ROU Assets was determined by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of those ROU assets subsequent to the impairment was $18 million, and is categorized as Level 3 within the ASC Topic 820 fair value hierarchy. As of December 31, 2019, a majority of the remaining $24 million restructuring liability is expected to be paid out through 2021. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The table below presents information about items which are carried at fair value on a recurring basis at December 31, 2019 and 2018: Fair value Measurement as of December 31, 2019 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 92 $ — $ 92 Open ended mutual funds 3 3 — Total $ 95 $ 3 $ 92 Fair Value Measurement as of December 31, 2018 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 28 $ — $ 28 Money market mutual funds 15 15 — Open ended mutual funds 33 33 — Total $ 76 $ 48 $ 28 Liabilities: Derivatives (1) $ 16 $ — $ 16 Total $ 16 $ — $ 16 (1) Represents FX forwards on certain assets and liabilities as well as interest rate swaps and cross-currency swaps as more fully described in Note 7 to the consolidated financial statements. The following are descriptions of the methodologies utilized by the Company to estimate the fair value of its derivative contracts, mutual funds, and money market mutual funds: Derivatives: In determining the fair value of the derivative contracts in the table above, the Company utilizes industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using spot rates, forward points, currency volatilities, interest rates as well as the risk of non-performance of the Company and the counterparties with whom it has derivative contracts. The Company established strict counterparty credit guidelines and only enters into transactions with financial institutions that adhere to these guidelines. Accordingly, the risk of counterparty default is deemed to be minimal. Open ended mutual funds and money market mutual funds: The mutual funds in the table above are deemed to be equity securities with readily determinable fair values with changes in the fair value recognized through net income under ASC Topic 321. The fair value of these instruments is determined using Level 1 inputs as defined in the ASC Topic 820. |
OTHER BALANCE SHEET INFORMATION
OTHER BALANCE SHEET INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Other Balance Sheet Information [Abstract] | |
OTHER BALANCE SHEET INFORMATION | OTHER BALANCE SHEET INFORMATION The following tables contain additional detail related to certain balance sheet captions: December 31, 2019 2018 Other current assets: Prepaid taxes $ 79 $ 100 Prepaid expenses 71 67 Capitalized costs to obtain and fulfill sales contracts 91 77 Other 89 38 Total other current assets $ 330 $ 282 December 31, 2019 2018 Other assets: Investments in non-consolidated affiliates $ 117 $ 105 Deposits for real-estate leases 13 14 Indemnification assets related to acquisitions 16 16 Mutual funds and fixed deposits 10 18 Costs to obtain sales contracts 119 79 Cross currency and interest rate swaps 83 27 Other 31 16 Total other assets $ 389 $ 275 December 31, 2019 2018 Accounts payable and accrued liabilities: Salaries and benefits $ 152 $ 113 Incentive compensation 208 155 Customer credits, advanced payments and advanced billings 28 20 Dividends 7 7 Professional service fees 43 48 Interest accrued on debt 63 71 Accounts payable 38 30 Income taxes 73 71 Pension and other retirement employee benefits 7 6 Accrued royalties 25 25 Foreign exchange forwards on certain assets and liabilities — 8 Restructuring liability 21 35 Other 108 107 Total accounts payable and accrued liabilities $ 773 $ 696 December 31, 2019 2018 Other liabilities: Pension and other retirement employee benefits $ 299 $ 249 Deferred rent -– non-current portion (1) — 94 Interest accrued on UTPs 82 70 MAKS indemnification provisions (See Note 10) 43 — Income tax liability – non-current portion 51 125 Cross currency and interest rate swaps — 8 Restructuring liability 3 7 Other 26 23 Total other liabilities $ 504 $ 576 (1) Pursuant to the adoption of the New Lease Accounting Standard, deferred rent relating to operating leases was reclassified to operating lease ROU Asset. |
COMPREHENSIVE INCOME AND ACCUMU
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME | COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME The following table provides details about the reclassifications out of AOCI: Year Ended December 31, Location in the consolidated statement of operations 2019 2018 2017 Currency translation adjustment losses Sale of foreign subsidiaries (see Note 10) $ (32) $ — $ — Loss pursuant to the divestiture of MAKS Total currency translation adjustment losses (32) — — Gains on cash flow hedges Cross-currency swap — — 13 Other non-operating income (expense), net Interest rate contract — — (1) Interest expense, net Total before income taxes — — 12 Income tax effect of item above — — (5) Provision for income taxes Total net gains on cash flow hedges — — 7 Gains on net investment hedges FX forwards 3 — — Other non-operating income (expense), net Income tax effect of item above (1) — — Provision for income taxes Total net gains on net investment hedges 2 — — Gains on available for sale securities Gains on available for sale securities — — 2 Other non-operating income (expense), net Income tax effect of item above — — — Provision for income taxes Total gains on available for sale securities — — 2 Pension and other retirement benefits Amortization of actuarial losses and prior service costs included in net income (2) (3) (5) Operating expense Amortization of actuarial losses and prior service costs included in net income (1) (2) (3) SG&A expense Total before income taxes (3) (5) (8) Income tax effect of item above 1 1 3 Provision for income taxes Total pension and other retirement benefits (2) (4) (5) Total (losses) gains included in Net Income attributable to reclassifications out of AOCI $ (32) $ (4) $ 4 The following table shows changes in AOCI by component (net of tax): Year Ended December 31, 2019 Pension and Other Retirement Benefits Gains / (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance December 31, 2018 $ (53) $ — $ (406) $ 33 $ (426) Other comprehensive income/(loss) before reclassifications (24) — (27) 26 (25) Amounts reclassified from AOCI 2 — 32 (2) 32 Adoption of ASU 2018-02 (See Note 1) (17) — — (3) (20) Other comprehensive income/(loss) (39) — 5 21 (13) Balance December 31, 2019 $ (92) $ — $ (401) $ 54 $ (439) Year Ended December 31, 2018 Pension and Other Retirement Benefits Gains / (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Gains on Available for Sale Securities Total Balance December 31, 2017 $ (61) $ 1 $ (113) $ (1) $ 2 $ (172) Adoption of ASU 2016-01 — — — — (2) (2) Other comprehensive income/(loss) before reclassifications 4 (1) (293) 34 — (256) Amounts reclassified from AOCI 4 — — — — 4 Other comprehensive income/(loss) 8 (1) (293) 34 (2) (254) Balance December 31, 2018 $ (53) $ — $ (406) $ 33 $ — $ (426) Year Ended December 31, 2017 Pension and Other Retirement Benefits Gains / (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Gains on Available for Sale Securities Total Balance December 31, 2016 $ (79) $ 2 $ (325) $ 35 $ 3 $ (364) Other comprehensive income/(loss) before reclassifications 13 6 212 (36) 1 196 Amounts reclassified from AOCI 5 (7) — — (2) (4) Other comprehensive income/(loss) 18 (1) 212 (36) (1) 192 Balance December 31, 2017 $ (61) $ 1 $ (113) $ (1) $ 2 $ (172) |
PENSION AND OTHER RETIREMENT BE
PENSION AND OTHER RETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER RETIREMENT BENEFITS | PENSION AND OTHER RETIREMENT BENEFITS U.S. Plans Moody’s maintains funded and unfunded noncontributory Defined Benefit Pension Plans ("DBPPs"). The DBPPs provide defined benefits using a cash balance formula based on years of service and career average salary or final average pay for selected executives. The Company also provides certain healthcare and life insurance benefits for retired U.S. employees. The retirement healthcare plans are contributory; the life insurance plans are noncontributory. Moody’s funded and unfunded U.S. pension plans, the U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Retirement Plans”. The U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Other Retirement Plans”. Through 2007, substantially all U.S. employees were eligible to participate in the Company’s DBPPs. Effective January 1, 2008, the Company no longer offers DBPPs to U.S. employees hired or rehired on or after January 1, 2008 and new hires in the U.S. instead will receive a retirement contribution in similar benefit value under the Company’s Profit Participation Plan. Current participants of the Company’s Retirement Plans and Other Retirement Plans continue to accrue benefits based on existing plan benefit formulas. Following is a summary of changes in benefit obligations and fair value of plan assets for the Retirement Plans for the years ended December 31: Pension Plans Other Retirement Plans 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation, beginning of the period $ (508) $ (518) $ (32) $ (31) Service cost (17) (19) (3) (3) Interest cost (21) (17) (1) (1) Plan participants’ contributions — — (1) (1) Benefits paid 21 11 1 1 Actuarial loss (3) — — — Assumption changes (61) 35 (6) 3 Benefit obligation, end of the period $ (589) $ (508) $ (42) $ (32) Change in plan assets: Fair value of plan assets, beginning of the period $ 348 $ 357 $ — $ — Actual return on plan assets 60 (18) — — Benefits paid (21) (11) (1) (1) Employer contributions 8 20 — — Plan participants’ contributions — — 1 1 Fair value of plan assets, end of the period $ 395 $ 348 $ — $ — Funded Status of the plans $ (194) $ (160) $ (42) $ (32) Amounts recorded on the consolidated balance sheets: Pension and retirement benefits liability – current $ (6) $ (5) $ (1) $ (1) Pension and retirement benefits liability – non current (188) (155) (41) (31) Net amount recognized $ (194) $ (160) $ (42) $ (32) Accumulated benefit obligation, end of the period $ (529) $ (458) The following information is for those pension plans with an accumulated benefit obligation in excess of plan assets: December 31, 2019 2018 Aggregate projected benefit obligation $ 589 $ 508 Aggregate accumulated benefit obligation $ 529 $ 458 Aggregate fair value of plan assets $ 395 $ 348 The following table summarizes the pre-tax net actuarial losses and prior service cost recognized in AOCI for the Company’s Retirement Plans as of December 31: Pension Plans Other Retirement Plans 2019 2018 2019 2018 Net actuarial losses $ (116) $ (96) $ (6) $ — Net prior service costs 4 4 — — Total recognized in AOCI – pretax $ (112) $ (92) $ (6) $ — The following table summarizes the estimated pre-tax net actuarial losses for the Company’s Retirement Plans that will be amortized from AOCI and recognized as components of net periodic expense during the next fiscal year: Pension Plans Other Retirement Plans Net actuarial losses $ 7 $ — Total to be recognized as components of net periodic expense $ 7 $ — Net periodic benefit expenses recognized for the Retirement Plans for years ended December 31: Pension Plans Other Retirement Plans 2019 2018 2017 2019 2018 2017 Components of net periodic expense Service cost $ 17 $ 19 $ 18 $ 3 $ 3 $ 2 Interest cost 21 17 19 1 1 1 Expected return on plan assets (20) (15) (17) — — — Amortization of net actuarial loss from earlier periods 4 6 9 — — — Net periodic expense $ 22 $ 27 $ 29 $ 4 $ 4 $ 3 The following table summarizes the pre-tax amounts recorded in OCI related to the Company’s Retirement Plans for the years ended December 31: Pension Plans Other Retirement Plans 2019 2018 2017 2019 2018 2017 Amortization of net actuarial losses $ 4 $ 6 $ 9 $ — $ — $ — Net actuarial (loss)/gain arising during the period (24) 2 21 (6) 3 1 Total recognized in OCI – pre-tax $ (20) $ 8 $ 30 $ (6) $ 3 $ 1 ADDITIONAL INFORMATION: Assumptions—Retirement Plans Weighted-average assumptions used to determine benefit obligations at December 31: Pension Plans Other Retirement Plans 2019 2018 2019 2018 Discount rate 3.04 % 4.07 % 3.05 % 4.10 % Rate of compensation increase 3.64 % 3.69 % — — Weighted-average assumptions used to determine net periodic benefit expense for years ended December 31: Pension Plans Other Retirement Plans 2019 2018 2017 2019 2018 2017 Discount rate 4.07 % 3.46 % 3.89 % 4.10 % 3.45 % 3.85 % Expected return on plan assets 5.65 % 4.50 % 5.40 % — — — Rate of compensation increase 3.69 % 3.71 % 3.72 % — — — The expected rate of return on plan assets represents the Company’s best estimate of the long-term return on plan assets and is determined by using a building block approach, which generally weighs the underlying long-term expected rate of return for each major asset class based on their respective allocation target within the plan portfolio, net of plan paid expenses. As the assumption reflects a long-term time horizon, the plan performance in any one particular year does not, by itself, significantly influence the Company’s evaluation. For 2019, the expected rate of return used in calculating the net periodic benefit costs was 5.65%. For 2020, the Company’s expected rate of return assumption is 4.45% to reflect the Company’s current view of long-term capital market outlook. In addition, the Company has updated its mortality assumption by adopting the newly released mortality improvement scale MP-2019 to accompany the Pri2012 mortality tables to reflect the latest information regarding future mortality expectations by the Society of Actuaries. Additionally, the assumed healthcare cost trend rate assumption is not material to the valuation of the other retirement plans. Plan Assets Moody’s investment objective for the assets in the funded pension plan is to earn total returns that will minimize future contribution requirements over the long-term within a prudent level of risk. The Company works with its independent investment consultants to determine asset allocation targets for its pension plan investment portfolio based on its assessment of business and financial conditions, demographic and actuarial data, funding characteristics, and related risk factors. Other relevant factors, including historical and forward looking views of inflation and capital market returns, are also considered. Risk management practices include monitoring plan asset performance, diversification across asset classes and investment styles, and periodic rebalancing toward asset allocation targets. The Company’s Asset Management Committee is responsible for overseeing the investment activities of the plan, which includes selecting acceptable asset classes, defining allowable ranges of holdings by asset class and by individual investment managers, defining acceptable securities within each asset class, and establishing investment performance expectations. Ongoing monitoring of the plan includes reviews of investment performance and managers on a regular basis, annual liability measurements, and periodic asset/liability studies. The Company’s investment policy uses risk-controlled investment strategies by increasing the plan’s asset allocation to fixed income securities and specifying ranges of acceptable target allocation by asset class based on different levels of the plan’s accounting funded status. In addition, the investment policy also requires the investment-grade fixed income assets be rebalanced between shorter and longer duration bonds as the interest rate environment changes. This investment policy is designed to help protect the plan’s funded status and to limit volatility of the Company’s contributions. Based on the policy, the Company’s current target asset allocation is approximately 49% (range of 44% to 54%) in equity securities, 45% (range of 40% to 50%) in fixed income securities and 6% (range of 3% to 9%) in other investments and the plan will use a combination of active and passive investment strategies and different investment styles for its investment portfolios within each asset class. The plan’s equity investments are diversified across U.S. and non-U.S. stocks of small, medium and large capitalization. The plan’s fixed income investments are diversified principally across U.S. and non-U.S. government and corporate bonds, which are expected to help reduce plan exposure to interest rate variation and to better align assets with obligations. The plan also invests in other fixed income investments such as debts rated below investment grade, emerging market debt, and convertible securities. The plan’s other investment, which is made through a private real estate debt fund, is expected to provide additional diversification benefits and absolute return enhancement to the plan assets. Fair value of the assets in the Company’s funded pension plan by asset category at December 31, 2019 and 2018 are as follows: Fair Value Measurement as of December 31, 2019 Asset Category Balance Level 1 Level 2 Measured using NAV practical expedient (1) % of total Cash and cash equivalent $ 2 $ — $ 2 $ — 1 % Common/collective trust funds—equity securities U.S. large-cap 140 — 140 — 35 % U.S. small and mid-cap 21 — 21 — 5 % Emerging markets 29 — 29 — 7 % Total equity investments 190 — 190 — 48 % Emerging markets bond fund 15 — — 15 4 % Common/collective trust funds—fixed income securities Intermediate-term investment grade U.S. government/ corporate bonds 119 — 119 — 30 % Mutual funds U.S. Treasury Inflation-Protected Securities (TIPs) 22 22 — — 6 % Convertible securities 12 12 — — 3 % Private investment fund—high yield securities 12 — — 12 3 % Total fixed-income investments 180 34 119 27 46 % Other investment—private real estate fund 23 — — 23 6 % Total Assets $ 395 $ 34 $ 311 $ 50 100 % Fair Value Measurement as of December 31, 2018 Asset Category Balance Level 1 Level 2 Measured using NAV practical expedient (1) % of total Cash and cash equivalent $ 1 $ — $ 1 $ — — % Common/collective trust funds—equity securities U.S. large-cap 122 — 122 — 35 % U.S. small and mid-cap 16 — 16 — 5 % Emerging markets 23 — 23 — 7 % Total equity investments 161 — 161 — 47 % Emerging markets bond fund 13 — — 13 4 % Common/collective trust funds—fixed income securities Intermediate-term investment grade U.S. government/ corporate bonds 109 — 109 — 31 % U.S. Treasury Inflation-Protected Securities (TIPs) 21 21 — — 6 % Private investment fund—convertible securities 11 — — 11 3 % Private investment fund—high yield securities 11 — — 11 3 % Total fixed-income investments 165 21 109 35 47 % Other investment—private real estate debt fund 21 — — 21 6 % Total Assets $ 348 $ 21 $ 271 $ 56 100 % (1) Investments are measured using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit a reconciliation of the fair value hierarchy to the value of the total plan assets. Cash and cash equivalents are primarily comprised of investments in money market mutual funds. In determining fair value, Level 1 investments are valued based on quoted market prices in active markets. Investments in common/collective trust funds are valued using the NAV per unit in each fund. The NAV is based on the value of the underlying investments owned by each trust, minus its liabilities, and then divided by the number of shares outstanding. Common/collective trust funds are categorized in Level 2 to the extent that they are considered to have a readily determinable fair value. Investments for which fair value is estimated by using the NAV per share (or its equivalent) as a practical expedient are not categorized in the fair value hierarchy. Except for the Company’s U.S. funded pension plan, all of Moody’s Retirement Plans are unfunded and therefore have no plan assets. Cash Flows The Company did not contribute to its U.S. funded pension plan during 2019, but contributed $16 million to this plan during the year ended December 31, 2018. The Company made payments of $8 million and $5 million related to its U.S. unfunded pension plan obligations during the years ended December 31, 2019 and 2018, respectively. The Company anticipates making payments of $99 million to its funded U.S. pension plan and $6 million related to its unfunded U.S. pension plans during the year ended December 31, 2020. Estimated Future Benefits Payable Estimated future benefits payments for the Retirement Plans are as follows as of year ended December 31, 2019: Year Ending December 31, Pension Plans Other Retirement Plans 2020 $ 16 $ 1 2021 17 1 2022 47 1 2023 27 2 2024 23 2 2025 - 2029 $ 146 $ 12 Defined Contribution Plans Moody’s has a Profit Participation Plan covering substantially all U.S. employees. The Profit Participation Plan provides for an employee salary deferral and the Company matches employee contributions, equal to 50% of employee contribution up to a maximum of 3% of the employee’s pay. Moody’s also makes additional contributions to the Profit Participation Plan based on year-to-year growth in the Company’s EPS (i.e. profit sharing contribution). The Company did not make this profit sharing contribution in 2019. Effective January 1, 2008, all new hires are automatically enrolled in the Profit Participation Plan when they meet eligibility requirements unless they decline participation. As the Company’s U.S. DBPPs are closed to new entrants effective January 1, 2008, all eligible new hires will instead receive a retirement contribution into the Profit Participation Plan in value similar to the pension benefits. Additionally, effective January 1, 2008, the Company implemented a deferred compensation plan in the U.S., which is unfunded and provides for employee deferral of compensation and Company matching contributions related to compensation in excess of the IRS limitations on benefits and contributions under qualified retirement plans. Total expenses associated with U.S. defined contribution plans were $43 million, $27 million and $43 million in the years ended December 31, 2019, 2018, and 2017, respectively. Effective January 1, 2008, Moody’s has designated the Moody’s Stock Fund, an investment option under the Profit Participation Plan, as an Employee Stock Ownership Plan and, as a result, participants in the Moody’s Stock Fund may receive dividends in cash or may reinvest such dividends into the Moody’s Stock Fund. Moody’s paid approximately $1 million during each of the years ended December 31, 2019, 2018 and 2017, respectively, for the Company’s common shares held by the Moody’s Stock Fund. The Company records the dividends as a reduction of retained earnings in the Consolidated Statements of Shareholders’ Equity (Deficit). The Moody’s Stock Fund held approximately 411,100 and 435,500 shares of Moody’s common stock at December 31, 2019 and 2018, respectively. Non-U.S. Plans Certain of the Company’s non-U.S. operations provide pension benefits to their employees. The non-U.S. defined benefit pension plans are immaterial. For defined contribution plans, company contributions are primarily determined as a percentage of employees’ eligible compensation. Moody’s also makes contributions to non-U.S. employees under a profit sharing plan which is based on year-to-year growth in the Company’s diluted EPS. The Company did not make this profit sharing contribution in 2019. Expenses related to these defined contribution plans for the years ended December 31, 2019, 2018 and 2017 were $25 million, $26 million and $24 million, respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION PLANS Under the 1998 Plan, 33 million shares of the Company’s common stock have been reserved for issuance. The 2001 Plan, which is shareholder approved, permits the granting of up to 50.6 million shares, of which not more than 14.0 million shares are available for grants of awards other than stock options. The Stock Plans also provide for the granting of restricted stock. The Stock Plans provide that options are exercisable not later than ten years from the grant date. The vesting period for awards under the Stock Plans is generally determined by the Board at the date of the grant and has been four years except for employees who are at or near retirement eligibility, as defined, for which vesting is between one The Company maintains the Directors’ Plan for its Board, which permits the granting of awards in the form of non-qualified stock options, restricted stock or performance shares. The Directors’ Plan provides that options are exercisable not later than ten years from the grant date. The vesting period is determined by the Board at the date of the grant and is generally one year for both options and restricted stock. Under the Directors’ Plan, 1.7 million shares of common stock were reserved for issuance. Any director of the Company who is not an employee of the Company or any of its subsidiaries as of the date that an award is granted is eligible to participate in the Directors’ Plan. Presented below is a summary of the stock-based compensation expense and associated tax benefit in the accompanying Consolidated Statements of Operations: Year Ended December 31, 2019 2018 2017 Stock-based compensation expense $ 136 $ 130 $ 123 Tax benefit $ 29 $ 32 $ 13 '(1) (1) The 2017 Amount includes a decrease in deferred tax assets resulting from a future reduction in the U.S. federal corporate income tax rate in accordance with the Tax Act. The fair value of each employee stock option award is estimated on the date of grant using the Black-Scholes option-pricing model that uses the assumptions noted below. The expected dividend yield is derived from the annual dividend rate on the date of grant. The expected stock volatility is based on an assessment of historical weekly stock prices of the Company as well as implied volatility from Moody’s traded options. The risk-free interest rate is based on U.S. government zero coupon bonds with maturities similar to the expected holding period. The expected holding period was determined by examining historical and projected post-vesting exercise behavior activity. The following weighted average assumptions were used for options granted: Year Ended December 31, 2019 2018 2017 Expected dividend yield 1.14 % 1.05 % 1.34 % Expected stock volatility 24 % 26 % 27 % Risk-free interest rate 2.56 % 2.82 % 2.19 % Expected holding period -in years 6.2 6.2 6.5 Grant date fair value $ 43.29 $ 45.73 $ 30.00 A summary of option activity as of December 31, 2019 and changes during the year then ended is presented below: Options Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, December 31, 2018 2.2 $ 69.86 Granted 0.2 175.30 Exercised (0.8) 44.59 Outstanding, December 31, 2019 1.6 93.51 5.2 years $ 227 Vested and expected to vest, December 31, 2019 1.5 92.14 5.1 years $ 224 Exercisable, December 31, 2019 1.1 $ 71.64 4.0 years $ 176 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between Moody’s closing stock price on the last trading day of the year ended December 31, 2019 and the exercise prices, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options as of December 31, 2019. This amount varies based on the fair value of Moody’s stock. As of December 31, 2019, there was $6 million of total unrecognized compensation expense related to options. The expense is expected to be recognized over a weighted average period of 2.2 years. The following table summarizes information relating to stock option exercises: Year Ended December 31, 2019 2018 2017 Proceeds from stock option exercises 36 38 49 Aggregate intrinsic value 114 99 88 Tax benefit realized upon exercise 27 24 31 A summary of nonvested restricted stock activity for the year ended December 31, 2019 is presented below: Nonvested Restricted Stock Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2018 2.0 $ 123.13 Granted 0.8 174.07 Vested (0.9) 113.21 Forfeited (0.1) 144.18 Balance, December 31, 2019 1.8 $ 124.63 As of December 31, 2019, there was $147 million of total unrecognized compensation expense related to nonvested restricted stock. The expense is expected to be recognized over a weighted average period of 2.4 years. The following table summarizes information relating to the vesting of restricted stock awards: Year Ended December 31, 2019 2018 2017 Fair value of shares vested 156 151 111 Tax benefit realized upon vesting 36 35 35 A summary of performance-based restricted stock activity for the year ended December 31, 2019 is presented below: Performance-based restricted stock Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2018 0.7 $ 103.74 Granted 0.1 169.68 Vested (0.3) 76.68 Balance, December 31, 2019 0.5 $ 134.35 The following table summarizes information relating to the vesting of the Company’s performance-based restricted stock awards: Year Ended December 31, 2019 2018 2017 Fair value of shares vested 47 23 20 Tax benefit realized upon vesting 11 6 7 As of December 31, 2019, there was $24 million of total unrecognized compensation expense related to this plan. The expense is expected to be recognized over a weighted average period of 1.8 years. The Company has a policy of issuing treasury stock to satisfy shares issued under stock-based compensation plans. In addition, the Company also sponsors the ESPP. Under the ESPP, 6 million shares of common stock were reserved for issuance. The ESPP allows eligible employees to purchase common stock of the Company on a monthly basis at a discount to the average of the high and the low trading prices on the New York Stock Exchange on the last trading day of each month. This discount was 5% in 2019, 2018, and 2017 resulting in the ESPP qualifying for non-compensatory status under Topic 718 of the ASC. Accordingly, no compensation expense was recognized for the ESPP in 2019, 2018, and 2017. The employee purchases are funded through after-tax payroll deductions, which plan participants can elect from one percent to ten percent of compensation, subject to the annual federal limit. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Components of the Company’s income tax provision are as follows: Year Ended December 31, 2019 2018 2017 Current: Federal $ 179 $ 168 $ 454 State and Local 59 50 30 Non-U.S. 181 233 207 Total current 419 451 691 Deferred: Federal (19) (59) 156 State and Local (3) (2) 17 Non-U.S. (16) (38) (85) Total deferred (38) (99) 88 Total provision for income taxes $ 381 $ 352 $ 779 A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate on income before provision for income taxes is as follows: Year Ended December 31, 2019 2018 2017 U.S. statutory tax rate 21.0 % 21.0 % 35.0 % State and local taxes, net of federal tax benefit 2.2 % 2.2 % 1.9 % Benefit of foreign operations (0.1) % 1.8 % (9.9) % U.S. Tax Act impact — % (2.8) % 17.0 % Other (2.1) % (1.1) % (0.4) % Effective tax rate 21.0 % 21.1 % 43.6 % Income tax paid $ 458 $ 442 $ 366 The source of income before provision for income taxes is as follows: Year Ended December 31, 2019 2018 2017 U.S. $ 1,039 $ 936 $ 1,099 Non-U.S. 771 736 688 Income before provision for income taxes $ 1,810 $ 1,672 $ 1,787 The components of deferred tax assets and liabilities are as follows: December 31, 2019 2018 Deferred tax assets: Account receivable allowances $ 6 $ 6 Accumulated depreciation and amortization 1 1 Stock-based compensation 46 46 Accrued compensation and benefits 89 75 Operating lease liabilities 136 — Deferred rent — 22 Deferred revenue 37 41 Net operating loss 13 16 Restructuring 4 5 Uncertain tax positions 94 81 Self-insured related reserves 8 8 Other 13 14 Total deferred tax assets 447 315 Deferred tax liabilities: Accumulated depreciation and amortization of intangible assets and capitalized software (389) (395) ROU Assets (107) — Capital gains (23) (24) Self-insured related income (8) (8) Stock based compensation (2) (2) New revenue accounting standard - ASC 606 (12) (19) Unrealized gain on net investment hedges - OCI (22) (10) Other liabilities (3) (7) Total deferred tax liabilities (566) (465) Net deferred tax liabilities (119) (150) Valuation allowance (9) (5) Total net deferred tax liabilities $ (128) $ (155) On December 22, 2017, the Tax Act was signed into law, which resulted in significant changes to U.S. corporate tax laws. The Tax Act includes a mandatory one-time deemed repatriation tax (“transition tax”) on previously untaxed accumulated earnings of foreign subsidiaries and beginning in 2018 reduces the statutory federal corporate income tax rate from 35% to 21%. Due to the complexities of the Tax Act, the SEC issued guidance requiring that companies provide a reasonable estimate of the impact of the Tax Act to the extent such reasonable estimate has been determined. Accordingly, as of December 31, 2017, the Company recorded a provisional estimate for the transition tax of $247 million. In September, 2018, the Company filed its 2017 federal income tax return and revised its determination of the transition tax to $236 million, a reduction of $11 million from the estimate at December 31, 2017. The reduction was primarily due to proposed regulations issued by the Internal Revenue Service and the finalization of earnings and profits calculations. A portion of the transition tax will be payable over eight years, starting in 2018, and will not accrue interest. The above revised determination of transition tax may be impacted by a number of additional considerations, including but not limited to the issuance of additional regulations. As a result of the Tax Act, all previously net undistributed foreign earnings have now been subject to U.S. tax. The Company regularly evaluates which entities it will indefinitely reinvest earnings. The Company has provided deferred taxes for those entities whose earnings are not considered indefinitely reinvested. The Company has recorded reductions in its income tax provision of approximately $44 million, or 242 BPS, for the full-year of 2019, and approximately $38 million, or 223 BPS, for the full-year of 2018, relating to Excess Tax Benefits on stock-based compensation. The Company had valuation allowances of $9 million and $5 million at December 31, 2019 and 2018, respectively, related to foreign net operating losses for which realization is uncertain. As of December 31, 2019, the Company had $477 million of UTPs of which $422 million represents the amount that, if recognized, would impact the effective tax rate in future periods. The increase in UTPs primarily resulted from the additional reserves established for non-U.S. tax exposures and an adjustment to the transition tax under U.S. tax reform. In 2018, the Company has recorded a deferred tax asset in the amount of $48 million for potential transition tax benefits if certain non-U.S. UTPs are not sustained. Due to additional UTPs recorded in 2019, the Company increased deferred assets to $50 million. A reconciliation of the beginning and ending amount of UTPs is as follows: Year Ended December 31, 2019 2018 2017 Balance as of January 1 $ 495 $ 389 $ 200 Additions for tax positions related to the current year 35 80 86 Additions for tax positions of prior years 22 89 120 Reductions for tax positions of prior years (2) (13) (4) Settlements with taxing authorities (1) (2) (2) Lapse of statute of limitations (44) (48) (11) Reclassification to indemnification liability related to MAKS divestiture (28) — — Balance as of December 31 $ 477 $ 495 $ 389 The Company classifies interest related to UTPs in interest expense in its consolidated statements of operations. Penalties are recognized in other non-operating expenses. During the years ended December 31, 2019 and 2018, the Company incurred a net interest expense of $28 million and $15 million respectively, related to UTPs. As of December 31, 2019 and 2018, the amount of accrued interest recorded in the Company’s consolidated balance sheets related to UTPs was $82 million and $70 million, respectively. Moody’s Corporation and subsidiaries are subject to U.S. federal income tax as well as income tax in various state, local and foreign jurisdictions. The Company’s U.S. federal income tax returns for 2013 and 2015 through 2017 remain open to examination. The Company’s New York State tax returns for 2011 through 2014 are currently under examination and the Company’s New York City tax return for 2014 is currently under examination. The Company’s U.K. tax return for 2012 is currently under examination and its returns for 2013 through 2017 remain open to examination. For current ongoing audits related to open tax years, the Company estimates that it is possible that the balance of UTPs could decrease in the next twelve months as a result of the effective settlement of these audits, which might involve the payment of additional taxes, the adjustment of certain deferred taxes and/or the recognition of tax benefits. It is also possible that new issues might be raised by tax authorities which might necessitate increases to the balance of UTPs. As the Company is unable to predict the timing of conclusion of these audits, the Company is unable to estimate the amount of changes to the balance of UTPs at this time. |
INDEBTEDNESS
INDEBTEDNESS | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS The following table summarizes total indebtedness: December 31, 2019 Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value Notes Payable: 4.50% 2012 Senior Notes, due 2022 $ 500 $ 9 $ (1) $ (1) $ 507 4.875% 2013 Senior Notes, due 2024 500 — (1) (2) 497 5.25% 2014 Senior Notes (30-Year), due 2044 600 — 4 (5) 599 1.75% 2015 Senior Notes, due 2027 561 — — (3) 558 2.75% 2017 Senior Notes, due 2021 500 11 (1) (2) 508 2.625% 2017 Senior Notes, due 2023 500 7 (1) (2) 504 3.25% 2017 Senior Notes, due 2028 500 — (4) (3) 493 3.25% 2018 Senior Notes, due 2021 300 — — (1) 299 4.25% 2018 Senior Notes, due 2029 400 — (3) (3) 394 4.875% 2018 Senior Notes, due 2048 400 — (7) (4) 389 0.950% 2019 Senior Notes, due 2030 842 — (3) (6) 833 Total long-term debt $ 5,603 $ 27 $ (17) $ (32) $ 5,581 December 31, 2018 Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value Notes Payable: 5.50% 2010 Senior Notes, due 2020 $ 500 $ (4) $ (1) $ (1) $ 494 4.50% 2012 Senior Notes, due 2022 500 2 (2) (1) 499 4.875% 2013 Senior Notes, due 2024 500 — (1) (2) 497 2.75% 2014 Senior Notes (5-Year), due 2019 450 — — — 450 5.25% 2014 Senior Notes (30-Year), due 2044 600 — 3 (5) 598 1.75% 2015 Senior Notes, due 2027 572 — — (3) 569 2.75% 2017 Senior Notes, due 2021 500 4 (1) (2) 501 2.625% 2017 Senior Notes, due 2023 500 — (1) (3) 496 3.25% 2017 Senior Notes, due 2028 500 — (5) (4) 491 3.25% 2018 Senior Notes, due 2021 300 — — (2) 298 4.25% 2018 Senior Notes, due 2029 400 — (3) (3) 394 4.875% 2018 Senior Notes, due 2048 400 — (7) (4) 389 Total debt $ 5,722 $ 2 $ (18) $ (30) $ 5,676 Current portion (450) Total long-term debt $ 5,226 (1) The Company has entered into interest rate swaps on the 2010 Senior Notes, the 2012 Senior Notes, the 2014 Senior Notes (5-Year), the 2017 Senior Notes due 2021 and the 2017 Senior Notes due 2023 which are more fully discussed in Note 7 above. These amounts represent the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt. Credit Facility The following summarizes information relating to the Company's revolving credit facility: December 31, 2019 December 31, 2018 Issue Date Capacity Maturity Drawn Undrawn Drawn Undrawn 2018 Credit Facility November 14, 2018 $ 1,000 November 13, 2023 $ — $ 1,000 $ — $ 1,000 Interest on borrowings under the facility may range from 0 BPS to 22.5 BPS per annum for Alternate Base Rate loans (as defined in the 2018 Facility agreement) or payable at rates that are based on the London InterBank Offered Rate (“LIBOR”) plus a premium that can range from 80.5 BPS to 122.5 BPS depending on the Company’s index debt ratings, as set forth in the 2018 Facility agreement. The Company also pays quarterly facility fees, regardless of borrowing activity under the facility. The quarterly fees for the 2018 Facility can range from 7 BPS of the facility amount to 15 BPS, depending on the Company’s index debt ratings. The 2018 Facility contains certain customary covenants including a financial covenant that requires the Company to maintain a total debt to EBITDA ratio of (i) not more than 4 to 1 at the end of any fiscal quarter or (ii) not more than 4.5 to 1 as of the end of the first three consecutive quarters immediately following any acquisition with consideration in excess of $500 million, subject to certain conditions as set forth in the 2018 Facility agreement. Commercial Paper On August 3, 2016, the Company entered into a private placement commercial paper program under which the Company may issue CP notes up to a maximum amount of $1.0 billion. Borrowings under the CP Program are backstopped by the 2018 Facility. Amounts under the CP Program may be re-borrowed. The maturity of the CP Notes will vary, but may not exceed 397 days from the date of issue. The CP Notes are sold at a discount from par, or alternatively, sold at par and bear interest at rates that will vary based upon market conditions. The rates of interest will depend on whether the CP Notes will be a fixed or floating rate. The interest on a floating rate may be based on the following: (a) certificate of deposit rate; (b) commercial paper rate; (c) the federal funds rate; (d) the LIBOR; (e) prime rate; (f) Treasury rate; or (g) such other base rate as may be specified in a supplement to the private placement agreement. The CP Program contains certain events of default including, among other things: non-payment of principal, interest or fees; entrance into any form of moratorium; and bankruptcy and insolvency events, subject in certain instances to cure periods. As of December 31, 2019, the Company has no CP borrowings outstanding. Notes Payable The Company may prepay certain of its senior notes, in whole or in part, but may incur a Make-Whole Amount penalty. During 2019, the Company fully repaid $500 million of the 2010 Senior Notes and $450 million of the 2014 Senior Notes (5-year) along with a Make-Whole Amount of approximately $12 million. Additionally, in 2019, the Company issued the €750 million 2019 Senior Notes, due 2030. The 2019 Senior Notes were designated as net investment hedges as more fully discussed in Note 7. At December 31, 2019, the Company was in compliance with all covenants contained within all of the debt agreements. All the debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of December 31, 2019, there were no such cross defaults. The repayment schedule for the Company’s borrowings is as follows: Year Ending 2012 Senior Notes due 2022 2013 Senior Notes due 2024 2014 Senior Notes (30-year) due 2044 2015 Senior Notes due 2027 2017 Senior Notes due 2021 2017 Senior Notes due 2023 2017 Senior Notes due 2028 2018 Senior Notes due 2021 2018 Senior Notes due 2029 2018 Senior Notes due 2048 2019 Senior Notes due 2030 Total 2020 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2021 — — — — 500 — — 300 — — — 800 2022 500 — — — — — — — — — — 500 2023 — — — — — 500 — — — — — 500 2024 — 500 — — — — — — — — — 500 Thereafter — — 600 561 — — 500 — 400 400 842 3,303 Total 500 500 600 561 500 500 500 300 400 400 842 5,603 INTEREST EXPENSE, NET The following table summarizes the components of interest as presented in the consolidated statements of operations: Year Ended December 31, 2019 2018 2017 Income $ 17 $ 15 $ 16 Expense on borrowings (176) (197) (190) Expense on UTPs and other tax related liabilities (28) (15) (16) Net periodic pension costs—interest component (1) (22) (19) (20) Capitalized 1 1 1 Total $ (208) $ (215) $ (209) Interest paid (2) $ 167 $ 183 $ 158 (1) The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in non-operating (expense) income, net. The service cost component continues to be reported as an operating expense. (2) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 7. The Company’s debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for the 2010 Senior Notes, the 2012 Senior Notes, the 2017 Senior Notes due 2021 and the 2017 Senior Notes due 2023, which are recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge the fair value of the note. The fair value and carrying value of the Company’s debt as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Carrying Amount Estimated Fair 5.50% 2010 Senior Notes, due 2020 $ — $ — $ 494 $ 518 4.50% 2012 Senior Notes, due 2022 507 531 499 514 4.875% 2013 Senior Notes, due 2024 497 551 497 522 2.75% 2014 Senior Notes (5-Year), due 2019 — — 450 450 5.25% 2014 Senior Notes (30-Year), due 2044 599 757 598 638 1.75% 2015 Senior Notes, due 2027 558 604 569 585 2.75% 2017 Senior Notes, due 2021 508 507 501 490 2.625% 2017 Senior Notes, due 2023 504 507 496 477 3.25% 2017 Senior Notes, due 2028 493 523 491 473 3.25% 2018 Senior Notes, due 2021 299 306 298 299 4.25% 2018 Senior Notes, due 2029 394 453 394 407 4.875% 2018 Senior Notes, due 2048 389 492 389 410 0.950% 2019 Senior Notes, due 2030 833 847 — — Total $ 5,581 $ 6,078 $ 5,676 $ 5,783 The fair value of the Company’s debt is estimated based on quoted market prices for similar instruments. Accordingly, the inputs used to estimate the fair value of the Company’s long-term debt are classified as Level 2 inputs within the fair value hierarchy. |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK Authorized Capital Stock The total number of shares of all classes of stock that the Company has authority to issue under its Restated Certificate of Incorporation is 1.02 billion shares with a par value of $0.01, of which 1.0 billion are shares of common stock, 10.0 million are shares of preferred stock and 10.0 million are shares of series common stock. The preferred stock and series common stock can be issued with varying terms, as determined by the Board. Share Repurchase Program The Company implemented a systematic share repurchase program in the third quarter of 2005 through an SEC Rule 10b5-1 program. Moody’s may also purchase opportunistically when conditions warrant. As a result, Moody’s share repurchase activity will continue to vary from quarter to quarter. The table below summarizes the Company’s remaining authority under its share repurchase program as of December 31, 2019: Date Authorized Amount Authorized Remaining Authority October 22, 2018 $ 1,000 $ 334 December 16, 2019 $ 1,000 1,000 Total Remaining Authority $ 1,334 During 2019, Moody’s repurchased 5.2 million shares of its common stock under its share repurchase program and issued a net 1.6 million shares under employee stock-based compensation plans. The net amount includes shares withheld for employee payroll taxes. During 2019, the Company entered into an ASR with a financial institution counterparty to repurchase $500 million of its outstanding common stock. Refer to Note 5 for further details. Dividends The Company’s cash dividends were: Dividends Per Share Year ended December 31, 2019 2018 2017 Declared Paid Declared Paid Declared Paid First quarter $ 0.50 $ 0.50 $ 0.44 $ 0.44 $ — $ 0.38 Second quarter 0.50 0.50 0.44 0.44 0.38 0.38 Third quarter 0.50 0.50 0.44 0.44 0.38 0.38 Fourth quarter 0.50 0.50 0.44 0.44 0.38 0.38 Total $ 2.00 $ 2.00 $ 1.76 $ 1.76 $ 1.14 $ 1.52 On February 11, 2020, the Board approved the declaration of a quarterly dividend of $0.56 per share of Moody’s common stock, payable on March 18, 2020 to shareholders of record at the close of business on February 25, 2020. The continued payment of dividends at the rate noted above, or at all, is subject to the discretion of the Board. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS The Company has operating leases, substantially all of which relate to the lease of office space. The Company's leases which are classified as finance leases are not material to the consolidated financial statements. Certain of the Company's leases include options to renew, with renewal terms that can extend the lease from one The following table presents the components of the Company’s lease cost: Year Ended Operating lease cost $ 97 Sublease income (2) Variable lease cost 17 Total lease cost $ 112 During the second quarter of 2019, the Company recorded $25 million of ROU Asset impairment charges related to the exit of certain real estate leases. The impairment charges were recorded within Restructuring expense on the consolidated statement of operations. Refer to Note 12 for further details. The following tables present other information related to the Company’s operating leases: Year Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 106 Right-of-use assets obtained in exchange for new operating lease liabilities $ 41 December 31, 2019 Weighted-average remaining lease term 6.8 years Weighted-average discount rate applied to operating leases 3.6 % The following table presents a maturity analysis of the future minimum lease payments included within the Company’s operating lease liabilities at December 31, 2019: Year Ending December 31, Operating Leases 2020 $ 107 2021 103 2022 91 2023 85 2024 79 Thereafter 183 Total lease payments (undiscounted) 648 Less: Interest 74 Present value of lease liabilities: $ 574 Lease liabilities - current $ 89 Lease liabilities - noncurrent $ 485 The minimum rent for operating leases at December 31, 2018 is as follows: Year Ending December 31, Operating Leases 2019 $ 106 2020 102 2021 96 2022 84 2023 81 Thereafter 247 Total minimum lease payments $ 716 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Given the nature of their activities, Moody’s and its subsidiaries are subject to legal and tax proceedings, governmental, regulatory and legislative investigations, subpoenas and other inquiries, and claims and litigation by governmental and private parties that are based on ratings assigned by MIS or that are otherwise incidental to the Company’s business. Moody’s and MIS also are subject to periodic reviews, inspections, examinations and investigations by regulators in the U.S. and other jurisdictions, any of which may result in claims, legal proceedings, assessments, fines, penalties or restrictions on business activities. Moody’s also is subject to ongoing tax audits as addressed in Note 18 to the consolidated financial statements. In May 2013, the Company and five subsidiaries (collectively, the “Company Defendants”) were served with a complaint filed by a former employee (“Plaintiff”) in New York Supreme Court (the “Court”) on behalf of New York State (the “State”) and New York City (the “City”) asserting purported claims under the New York False Claims Act (“NYFCA”). Both the State and the City were given an opportunity to intervene as plaintiffs in the action but declined to do so. In August 2013, Plaintiff filed an Amended Complaint adding Marsh & McLennan Companies, Inc. as a defendant. Plaintiff’s central allegation against the Company Defendants is that their treatment of the Company’s wholly-owned captive insurance subsidiary, Moody’s Assurance Company, Inc. (“MAC”), in their State and City tax filings between 2002 and 2014 was contrary to the State and City tax codes. Plaintiff also asserts a cause of action for retaliation under the NYFCA and alleges that his employment was improperly terminated after he reported his concerns regarding MAC’s tax treatment internally. Plaintiff alleges that the Company underpaid State and City taxes by more than $120 million (which the Company believes is unsupported as a matter of fact and law), and requests statutory damages of triple that amount, as well as unspecified damages related to the retaliation claim. In December 2016, the Court issued a decision largely denying the Company Defendants’ motion to dismiss. The Company Defendants appealed, and in August 2018, the Appellate Division of the New York Supreme Court upheld the Court’s decision. In October 2019, the Company Defendants reached an agreement with the State, the City and the Plaintiff to settle all claims asserted against the Company Defendants for $15.5 million. Pursuant to the settlement, the parties filed a stipulation discontinuing the action in December 2019. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, the Company records liabilities in the consolidated financial statements when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In instances when a loss is reasonably possible but uncertainties exist related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if material. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. Moody’s also discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. In view of the inherent difficulty of assessing the potential outcome of legal proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation and similar matters and contingencies, particularly when the claimants seek large or indeterminate damages or assert novel legal theories or the matters involve a large number of parties, the Company often cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also may be unable to predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition and to accrue for and disclose such matters as and when required. However, because such matters are inherently unpredictable and unfavorable developments or resolutions can occur, the ultimate outcome of such matters, including the amount of any loss, may differ from those estimates. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company is organized into two operating segments: MIS and MA and accordingly, the Company reports in two reportable segments: MIS and MA. The MIS segment consists of five LOBs. The CFG, SFG, FIG and PPIF LOBs generate revenue principally from fees for the assignment and ongoing monitoring of credit ratings on debt obligations and the entities that issue such obligations in markets worldwide. The MIS Other LOB primarily consists of financial instruments pricing services in the Asia-Pacific region as well as ICRA non-ratings revenue. The MA segment develops a wide range of products and services that support the risk management activities of institutional participants in global financial markets. The MA segment consists of three LOBs—RD&A, ERS and PS. Revenue for MIS and expenses for MA include an intersegment royalty charged to MA for the rights to use and distribute content, data and products developed by MIS. The royalty rate charged by MIS approximates the fair value of the aforementioned content, data and products and is generally based on comparable market transactions. Also, revenue for MA and expenses for MIS include an intersegment fee charged to MIS from MA for certain MA products and services utilized in MIS’s ratings process. These fees charged by MA are generally equal to the costs incurred by MA to produce these products and services. Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and legal. Such costs and corporate expenses that exclusively benefit one segment are fully charged to that segment. For overhead and corporate expenses that benefit both segments, in years prior to 2019, the Company generally allocated costs ratably based on each segment’s share of total revenue. Beginning in 2019, the Company refined its methodology such that costs allocated to each segment based on the segment’s share of 2018 actual revenue comprise a “Baseline Pool” that will remain fixed over time. In subsequent periods, incremental overhead costs (or reductions thereof) will be allocated to each segment based on the prevailing shares of total revenue represented by each segment. The Company believes that this allocation method will better align the amount of overhead costs consumed by each segment and contribute stability to each segment’s costs over time. The impact of this refined methodology would not have resulted in a material change to previously reported segment results. “Eliminations” in the following table represent intersegment revenue/expense. Moody’s does not report the Company’s assets by reportable segment, as this metric is not used by the chief operating decision maker to allocate resources to the segments. Consequently, it is not practical to show assets by reportable segment. Financial Information by Segment The table below shows revenue, Adjusted Operating Income and operating income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Refer to Note 3 for further details on the components of the Company’s revenue. Year Ended December 31, 2019 2018 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Revenue $ 3,009 $ 1,963 $ (143) $ 4,829 $ 2,836 $ 1,743 $ (136) $ 4,443 Total Expense 1,376 1,598 (143) 2,831 1,276 1,435 (136) 2,575 Operating income 1,633 365 — 1,998 1,560 308 — 1,868 Add: Restructuring 31 29 — 60 32 17 — 49 Depreciation and amortization 71 129 — 200 65 127 — 192 Acquisition-Related Expenses — 3 — 3 — 8 — 8 Loss pursuant to the divestiture of MAKS — 14 — 14 — — — — Captive insurance company settlement 10 6 — 16 — — — — Adjusted Operating Income $ 1,745 $ 546 $ — $ 2,291 $ 1,657 $ 460 $ — $ 2,117 Year Ended December 31, 2017 MIS (1) MA (1) Eliminations Consolidated (1) Revenue $ 2,886 $ 1,446 $ (128) $ 4,204 Total Expense 1,314 1,197 (128) 2,383 Operating Income 1,572 249 — 1,821 Add: Depreciation and amortization 74 84 — 158 Acquisition-Related Expenses — 23 — 23 Adjusted Operating income $ 1,646 $ 356 $ — $ 2,002 (1) The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in non-operating (expense) income, net. The service cost component continues to be reported as an operating expense. Segment results for 2017 have been restated to reflect this reclassification. Accordingly, operating and SG&A expenses for MIS and MA were reduced by $8 million and $4 million, respectively, for the year ended December 31, 2017. The cumulative restructuring charges related to the 2018 Restructuring Program, as more fully discussed in Note 12, for the MIS and MA reportable segments are $63 million and $46 million, respectively. CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA Year Ended December 31, 2019 2018 2017 Revenue: U.S. $ 2,544 $ 2,330 $ 2,348 Non-U.S.: EMEA 1,446 1,377 1,132 Asia-Pacific 551 493 471 Americas 288 243 253 Total Non-U.S. 2,285 2,113 1,856 Total $ 4,829 $ 4,443 $ 4,204 Long-lived assets at December 31: U.S. $ 1,290 $ 982 $ 673 Non-U.S. 4,678 4,685 5,037 Total $ 5,968 $ 5,667 $ 5,710 |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS Accounts receivable allowances primarily represent adjustments to customer billings that are estimated when the related revenue is recognized and also represents an estimate for uncollectible accounts. The valuation allowance on deferred tax assets relates to foreign net operating tax losses for which realization is uncertain. Below is a summary of activity: Year Ended December 31, Balance at Beginning of the Year Charged to costs and expenses Deductions (1) Balance at End of the Year 2019 Accounts receivable allowance $ (43) $ (11) $ 11 $ (43) Deferred tax assets—valuation allowance $ (5) $ (4) $ — $ (9) 2018 Accounts receivable allowance $ (37) $ (18) $ 12 $ (43) Deferred tax assets—valuation allowance $ (6) $ — $ 1 $ (5) 2017 Accounts receivable allowance $ (26) $ (20) $ 9 $ (37) Deferred tax assets—valuation allowance $ (3) $ (3) $ — $ (6) (1) Reflects write-off of uncollectible accounts receivable or expiration of foreign net operating tax losses. |
OTHER NON-OPERATING (EXPENSE) I
OTHER NON-OPERATING (EXPENSE) INCOME, NET | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER NON-OPERATING (EXPENSE) INCOME, NET | OTHER NON-OPERATING (EXPENSE) INCOME, NET The following table summarizes the components of other non-operating (expense) income, net as presented in the consolidated statements of operations: Year Ended December 31, 2019 2018 2017 FX loss $ (18) $ (11) $ (17) Net periodic pension costs—other components (1) 18 10 8 Income from investments in non-consolidated affiliates 13 14 13 Other 7 6 — Total $ 20 $ 19 $ 4 (1) The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in non-operating (expense) income, net. The service cost component continues to be reported as an operating expense. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSMoody’s Corporation made a grant of $12 million to The Moody’s Foundation during the year ended December 31, 2017. The Company did not make any grants to the Foundation in the years ended December 31, 2018 and 2019. The Foundation carries out philanthropic activities primarily in the areas of education and health and human services. Certain members of Moody’s senior management are on the board of the Foundation. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Three Months Ended (amounts in millions, except EPS) March 31 June 30 September 30 December 31 2019 Revenue $ 1,142 $ 1,214 $ 1,240 $ 1,233 Operating income $ 462 $ 483 $ 549 $ 504 Net income attributable to Moody’s $ 373 $ 310 $ 380 $ 359 EPS: Basic $ 1.96 $ 1.64 $ 2.01 $ 1.91 Diluted $ 1.93 $ 1.62 $ 1.99 $ 1.88 2018 Revenue $ 1,127 $ 1,175 $ 1,081 $ 1,060 Operating income $ 491 $ 534 $ 467 $ 376 Net income attributable to Moody’s $ 373 $ 376 $ 310 $ 251 EPS: Basic $ 1.95 $ 1.96 $ 1.62 $ 1.31 Diluted $ 1.92 $ 1.94 $ 1.59 $ 1.29 Basic and diluted EPS are computed for each of the periods presented. The number of weighted average shares outstanding changes as common shares are issued pursuant to employee stock-based compensation plans and for other purposes or as shares are repurchased. Therefore, the sum of basic and diluted EPS for each of the four quarters may not equal the full year basic and diluted EPS. Net Income attributable to Moody’s in the three months ended June 30, 2019 includes a charge of $53 million ($41 million net of tax) relating to the 2018 Restructuring Program. Net Income attributable to Moody’s in the three months ended September 30, 2018 includes a $65 million net benefit related to the net impact of U.S. tax reform and a $64 million charge related to an increase to non-U.S. UTPs. Net Income attributable to Moody’s in the three months ended December 31, 2018 includes a charge of $49 million ($37 million net of tax) relating to the 2018 Restructuring Program. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On February 11, 2020, the Board approved the declaration of a quarterly dividend of $0.56 per share for Moody’s common stock, payable March 18, 2020 to shareholders of record at the close of business on February 25, 2020. On February 13, 2020, the Company completed the acquisition of Regulatory Data Corporation (RDC), a provider of anti-money laundering and know-your-customer data and due diligence services, for $700 million. D ue to the close proximity of the completion of the acquisition to the filing of this Form 10-K, the Company is unable to provide a preliminary purchase price allocation of the fair value of the assets acquired and liabilities assumed in the transaction. The Company will disclose a preliminary purchase price allocation in its Form 10-Q for the period ending March 31, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include those of Moody’s Corporation and its majority- and wholly-owned subsidiaries. The effects of all intercompany transactions have been eliminated. Investments in companies for which the Company has significant influence over operating and financial policies but not a controlling interest are accounted for on an equity basis whereby the Company records its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net and any dividends received reduce the carrying amount of the investment. The Company applies the guidelines set forth in Topic 810 of the ASC in assessing its interests in variable interest entities to decide whether to consolidate that entity. The Company has reviewed the potential variable interest entities and determined that there are no consolidation requirements under Topic 810 of the ASC. The Company consolidates its ICRA subsidiaries on a three month lag. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents principally consist of investments in money market mutual funds and money market deposit accounts as well as high-grade commercial paper and certificates of deposit with maturities of three months or less when purchased. |
Short-term Investments | Short-term Investments Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next 12 months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives. Expenditures for maintenance and repairs that do not extend the economic useful life of the related assets are charged to expense as incurred. |
Computer Software Developed or Obtained for Internal Use | Computer Software Developed or Obtained for Internal Use The Company capitalizes costs related to software developed or obtained for internal use. These assets, included in property and equipment in the consolidated balance sheets, relate to the Company’s financial, website and other systems. Such costs generally consist of direct costs for third-party license fees, professional services provided by third parties and employee compensation, in each case incurred either during the application development stage or in connection with upgrades and enhancements that increase functionality. Such costs are depreciated over their estimated useful lives on a straight-line basis. Costs incurred during the preliminary project stage of development as well as maintenance costs are expensed as incurred. |
Goodwill and Other Acquired Intangible Assets | Goodwill and Other Acquired Intangible Assets Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment (i.e., MIS and MA), or one level below an operating segment (i.e., a component of an operating segment), annually as of July 31 or more frequently if impairment indicators arise in accordance with ASC Topic 350. The Company evaluates the recoverability of goodwill using a two-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made that, based on the qualitative factors, an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company will recognize the difference as an impairment charge. The Company evaluates its reporting units for impairment on an annual basis, or more frequently if there are changes in the reporting structure of the Company due to acquisitions or realignments or if there are indicators of potential impairment. For the reporting units where the Company is consistently able to conclude that an impairment does not exist using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years. Goodwill is assigned to a reporting unit at the date when an acquisition is integrated into one of the established reporting units, and is based on which reporting unit is expected to benefit from the synergies of the acquisition. For purposes of assessing the recoverability of goodwill, the Company has seven primary reporting units at December 31, 2019: two within the Company’s ratings business (one for the ICRA business and one that encompasses all of Moody’s other ratings operations) and five reporting units within MA: Content, ERS, MALS, Bureau van Dijk, and Reis. |
Impairment of long-lived assets and definite-lived intangible assets | Impairment of long-lived assets and definite-lived intangible assets Long-lived assets (including ROU Assets) and amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Stock-Based Compensation | Stock-Based Compensation The Company records compensation expense for all share-based payment award transactions granted to employees based on the fair value of the equity instrument at the time of grant. This includes shares issued under stock option and restricted stock plans. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Based on the Company’s risk management policy, from time to time the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values on a gross basis. The changes in the value of derivatives that qualify as fair value hedges are recorded in the same income statement line item in earnings in which the corresponding adjustment to the carrying value of the hedged item is presented. The entire change in the fair value of derivatives that qualify as cash flow hedges is recorded to OCI and such amounts are reclassified from AOCI to the same income statement line in earnings in the same period or periods during which the hedged transaction affects income. Effective with the Company’s early adoption of ASC 2017-12, the Company changed the method by which it assesses effectiveness for net investment hedges from the forward-method to the spot-method. The Company considers the spot-method an improved method of assessing hedge effectiveness, as spot rate changes relating to the hedging instrument’s notional amount perfectly offset the currency translation adjustment on the hedged net investment in the Company’s foreign subsidiaries. The entire change in the fair value of derivatives that qualify as net investment hedges is initially recorded to OCI. Those changes in fair value attributable to components included in the assessment of hedge effectiveness in a net investment hedge are recorded in the currency translation adjustment component of OCI and remain in AOCI until the period in which the hedged item affects earnings. Those changes in fair value attributable to components excluded from the assessment of hedge effectiveness in a net investment hedge are recorded to OCI and amortized to earnings using a systematic and rational method over the duration of the hedge. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur. |
Revenue Recognition and Costs to Obtain or Fulfill a Contract with a Customer | Revenue Recognition and Costs to Obtain or Fulfill a Contract with a Customer Revenue recognition: Revenue is recognized when control of promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. When contracts with customers contain multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to each distinct performance obligation on a relative SSP basis. The Company determines the SSP by using the price charged for a deliverable when sold separately or uses management’s best estimate of SSP for goods or services not sold separately using estimation techniques that maximize observable data points, including: internal factors relevant to its pricing practices such as costs and margin objectives; standalone sales prices of similar products; pricing policies; percentage of the fee charged for a primary product or service relative to a related product or service; and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trends. Sales, usage-based, value added and other taxes are excluded from revenues. MIS Revenue In the MIS segment, revenue arrangements with multiple elements are generally comprised of two distinct performance obligations, a rating and the related monitoring service. Revenue attributed to ratings of issued securities is generally recognized when the rating is delivered to the issuer. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of certain structured finance products, primarily CMBS, issuers can elect to pay all of the annual monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities. MIS arrangements generally have standard contractual terms for which the stated payments are due at conclusion of the ratings process for ratings and either upfront or in arrears for monitoring services; and are signed by customers either on a per issue basis or at the beginning of the relationship with the customer. In situations when customer fees for an arrangement may be variable, the Company estimates the variable consideration at inception using the expected value method based on analysis of similar contracts in the same line of business, which is constrained based on the Company’s assessment of the realization of the adjustment amount. The Company allocates the transaction price within arrangements that include multiple performance obligations based upon the relative SSP of each service. The SSP for both rating and monitoring services is generally based upon observable selling prices where the rating or monitoring service is sold separately to similar customers. MA Revenue In the MA segment, products and services offered by the Company include hosted research and data subscriptions, installed software subscriptions, perpetual installed software licenses and related maintenance, or PCS, and professional services. Subscription and PCS contracts are generally invoiced in advance of the contractual coverage period, which is principally one year, but can range from 3-5 years; while perpetual software licenses are generally invoiced upon delivery and professional services are invoiced as those services are provided. Payment terms and conditions vary by contract type, but primarily include a requirement of payment within 30 to 60 days. Revenue from research, data and other hosted subscriptions is recognized ratably over the related subscription period as MA's performance obligation to provide access to these products is progressively fulfilled over the stated term of the contract. A large portion of these services are invoiced in the months of November, December and January. Revenue from the sale of a software license, when considered distinct from the related software implementation services, is generally recognized at the time the product master or first copy is delivered or transferred to the customer. However, in instances where the software license (perpetual or subscription) and related implementation services are considered to be one combined performance obligation, revenue is recognized over time using cost based input methods. These methods require judgment to evaluate assumptions, including the total estimated costs to determine progress towards contract completion and to calculate the corresponding amount of revenue to recognize, which is consistent with the pattern of recognition for the software implementation services if considered to be a separate distinct performance obligation. The Company exercises judgment in determining the level of integration and interdependency between the promise to grant the software license and the promise to deliver the related implementation services. This determination influences whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the implementation services and recognized over time. PCS is generally recognized ratably over the contractual period commencing when the software license is fully delivered. Revenue from installed software subscriptions, which includes PCS, is bifurcated into a software license performance obligation and a PCS performance obligation, which follow the patterns of recognition described above. For implementation services and other service projects within the ERS and ESA businesses for which fees are fixed, the Company determined progress towards completion is most accurately measured on a percentage-of-completion basis (input method) as this approach utilizes the most directly observable data points and is therefore used to recognize the related revenue. For implementation services where price varies based on time expended, a time-based measure of progress towards completion of the performance obligation is utilized. Revenue from professional services rendered within the PS LOB is generally recognized as the services are performed over time. Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where an arrangement contains multiple performance obligations, the Company accounts for the individual performance obligations separately if they are considered distinct. Revenue is generally allocated to all performance obligations based upon the relative SSP at contract inception. For certain performance obligations, judgment is required to determine the SSP. Revenue is recognized for each performance obligation based upon the conditions for revenue recognition noted above. In the MA segment, customers usually pay a fixed fee for the products and services based on signed contracts. However, accounting for variable consideration is applied mainly for: i) estimates for cancellation rights and price concessions and ii) T&M based services. The Company estimates the variable consideration associated with cancellation rights and price concessions based on the expected amount to be provided to customers and reduces the amount of revenue to be recognized. T&M based contracts represent about half of MA’s service projects within the ERS and ESA businesses. The Company provides agreed upon services at a contracted daily or hourly rate. The commitment represents a series of goods and services that are substantially the same and have the same pattern of transfer to the customer. As such, if T&M services are sold with other MA products, the Company allocates the variable consideration entirely to the T&M performance obligation if the services are sold at standard pricing or at a similar discount level compared to other performance obligations in the same revenue contract. If these criteria are not met, the Company estimates variable consideration for each performance obligation upfront. Each form of variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Costs to Obtain or Fulfill a Contract with a Customer: Costs to obtain a contract with a customer Costs incurred to obtain customer contracts, such as sales commissions, are deferred and recorded within other current assets and other assets when such costs are determined to be incremental to obtaining a contract, would not have been incurred otherwise and the Company expects to recover those costs. These costs are amortized to expense on a systematic basis consistent with the transfer of the products or services to the customer. Depending on the line of business to which the contract relates, this may be based upon the average economic life of the products sold or average period for which services are provided, inclusive of anticipated contract renewals. Determining the estimated economic life of the products sold requires judgment with respect to anticipated future technological changes. The Company had a balance of $159 million and $110 million in such deferred costs as of December 31, 2019 and December 31, 2018, respectively, and recognized $53 million and $38 million of related amortization during the years ended December 31, 2019 and December 31, 2018, respectively, which is included within SG&A expenses in the consolidated statement of operations. Costs incurred to obtain customer contracts are only in the MA segment. Cost to fulfill a contract with a customer Costs incurred to fulfill customer contracts, are deferred and recorded within other current assets and other assets when such costs relate directly to a contract, generate or enhance resources of the Company that will be used in satisfying performance obligations in the future and the Company expects to recover those costs. The Company capitalizes work-in-process costs for in-progress MIS ratings, which is recognized consistent with the rendering of the related services to the customers, as ratings are issued. The Company had a balance of $11 million in such deferred costs as of December 31, 2019 and December 31, 2018 and recognized $42 million and $40 million of amortization of the costs during the years ended December 31, 2019 and December 31, 2018, respectively, which is included within operating expenses in the consolidated statement of operations. In addition, within the MA segment, the Company capitalizes royalty costs related to third-party information data providers associated with hosted company information and business intelligence products. These costs are amortized to expense consistent with the recognition pattern of the related revenue over time. The Company had a balance of $40 million and $35 million in such deferred costs as of December 31, 2019 and December 31, 2018, respectively, and recognized $56 million and $54 million of related amortization during the years ended December 31, 2019 and December 31, 2018, respectively, which is included within operating expenses in the consolidated statement of operations. |
Accounts Receivable Allowances | Accounts Receivable Allowances Moody’s records variable consideration in respect of estimated future adjustments to customer billings as an adjustment to revenue using the expected value method based on analysis of similar contracts in the same line of business. Such amounts are reflected as additions to the accounts receivable allowance. Additionally, estimates of uncollectible accounts are recorded as bad debt expense and are reflected as additions to the accounts receivable allowance. Actual billing adjustments are recorded against the allowance, depending on the nature of the adjustment. Actual uncollectible account write-offs are recorded against the allowance. Moody’s evaluates its accounts receivable allowance by reviewing and assessing historical collection and adjustment experience and the current status of customer accounts. Moody’s also considers the economic environment of the customers, both from an industry and geographic perspective, in evaluating the need for allowances. Based on its analysis, Moody’s adjusts its allowance as considered appropriate in the circumstances. |
Leases | Leases The Company has operating leases, of which substantially all relate to the lease of office space. The Company’s leases which are classified as finance leases are not material to the consolidated financial statements. The Company determines if an arrangement meets the definition of a lease at contract inception. The Company recognizes in its consolidated balance sheet a lease liability and an ROU Asset for all leases with a lease term greater than 12 months. In determining the length of the lease term, the Company utilizes judgment in assessing the likelihood of whether it is reasonably certain that it will exercise an option to extend or early-terminate a lease, if such options are provided in the lease agreement. ROU Assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU Assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As substantially all of the Company’s leases do not provide an implicit interest rate, the Company uses its estimated secured incremental borrowing rates at the lease commencement date in determining the present value of lease payments. These secured incremental borrowing rates are attributable to the currency in which the lease is denominated. At commencement, the Company’s initial measurement of the ROU Asset is calculated as the present value of the remaining lease payments (i.e., lease liability), with additive adjustments reflecting: initial direct costs (e.g., broker commissions) and prepaid lease payments (if any); and reduced by any lease incentives provided by the lessor if: (i) received before lease commencement or (ii) receipt of the lease incentive is contingent upon future events for which the occurrence is both probable and within the Company’s control. Lease expense for minimum operating lease payments is recognized on a straight-line basis over the lease term. This straight-line lease expense represents a single lease cost which is comprised of both an interest accretion component relating to the lease liability and amortization of the ROU Assets. The Company records this single lease cost in operating and SG&A expenses. However, in situations where an operating lease ROU Asset has been impaired, the subsequent amortization of the ROU Asset is then recorded on a straight-line basis over the remaining lease term and is combined with accretion expense on the lease liability to result in single operating lease cost (which subsequent to impairment will no longer follow a straight-line recognition pattern). The Company has lease agreements which include lease and non-lease components. For the Company’s office space leases, the lease components (e.g., fixed rent payments) and non-lease components (e.g., fixed common-area maintenance costs) are combined and accounted for as a single lease component. Variable lease payments (e.g. variable common-area-maintenance costs) are only included in the initial measurement of the lease liability to the extent those payments depend on an index or a rate. Variable lease payments not included in the lease liability are recognized in net income in the period in which the obligation for those payments is incurred. |
Contingencies | Contingencies Moody’s is involved in legal and tax proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, the Company records liabilities in the consolidated financial statements when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In instances when a loss is reasonably possible but uncertainties exist related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if material. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. Moody’s also discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate. In view of the inherent difficulty of assessing the potential outcome of legal proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation and similar matters and contingencies, particularly when the claimants seek large or indeterminate damages or assert novel legal theories or the matters involve a large number of parties, the Company often cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also may be unable to predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition and to accrue for and disclose such matters as and when required. However, because such matters are inherently unpredictable and unfavorable developments or resolutions can occur, the ultimate outcome of such matters, including the amount of any loss, may differ from those estimates. |
Operating Expenses | Operating Expenses Operating expenses include costs associated with the development and production of the Company’s products and services and their delivery to customers. These expenses principally include employee compensation and benefits and travel costs that are incurred in connection with these activities. Operating expenses are charged to income as incurred, except for certain costs related to software implementation services, which may be deferred until related revenue is recognized. Additionally, certain costs incurred to develop internal use software are capitalized and amortized over their estimated useful life. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses SG&A expenses include such items as compensation and benefits for corporate officers and staff and compensation and other expenses related to sales. They also include items such as office rent, business insurance, professional fees and gains and losses from sales and disposals of assets. SG&A expenses are charged to income as incurred, except for certain expenses incurred to develop internal use software (which are capitalized and amortized over their estimated useful life) and the deferral of sales commissions in the MA segment (which are recognized in the period in which the related revenue is recognized). |
Foreign Currency Translation | Foreign Currency Translation For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated into U.S. dollars using end of year exchange rates, and revenue and expenses are translated using average exchange rates for the year. For these foreign operations, currency translation adjustments are recorded to other comprehensive income. |
Comprehensive Income | Comprehensive Income Comprehensive income represents the change in net assets of a business enterprise during a period due to transactions and other events and circumstances from non-owner sources including foreign currency translation impacts, net actuarial gains and losses and net prior service costs related to pension and other retirement plans, gains and losses on derivative instruments designated as net investment hedges or cash flow hedges and unrealized gains and losses on securities designated as ‘available-for-sale’ under ASC Topic 320 (for periods prior to January 1, 2018). Comprehensive income items, including cumulative translation adjustments of entities that are less-than-wholly-owned subsidiaries, will be reclassified to noncontrolling interests and thereby, adjusting accumulated other comprehensive income proportionately in accordance with the percentage of ownership interest of the NCI shareholder. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes and deferred income taxes reflect the effect of temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes. The Company classifies interest related to unrecognized tax benefits as a component of interest expense in its consolidated statements of operations. Penalties are recognized in other non-operating expenses. For UTPs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. On December 22, 2017, the Tax Act was signed into law, resulting in all previously undistributed foreign earnings being subject to U.S. tax. The Company has provided deferred taxes for those entities whose earnings are not considered indefinitely reinvested. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, and certain short-term investments consisting primarily of certificates of deposit and money market deposits, all of which are short-term in nature and, accordingly, approximate fair value. The Company also invests in mutual funds, which are accounted for as equity securities with readily determinable fair values under ASC Topic 321. Beginning in the first quarter of 2018, the Company measures these investments at fair value with both realized gains and losses and unrealized holding gains and losses for these investments included in net income. Prior to January 1, 2018, the investments in mutual funds were designated as ‘available for sale’ under Topic 320 of the ASC. Accordingly, unrealized gains and losses on these investments were recorded to other comprehensive income and were reclassified out of accumulated other comprehensive income to the statement of operations when the investment matured or was sold using a specific identification method. Also, the Company uses derivative instruments to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value on the Company’s consolidated balance sheets. Fair value is defined by the ASC 820 as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset. The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows: Level 1: quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement; Level 2: inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk principally consist of cash and cash equivalents, short-term investments, trade receivables and derivatives. |
Earnings per Share of Common Stock | Earnings per Share of Common Stock Basic shares outstanding is calculated based on the weighted average number of shares of common stock outstanding during the reporting period. Diluted shares outstanding is calculated giving effect to all potentially dilutive common shares, assuming that such shares were outstanding and dilutive during the reporting period. |
Pension and Other Retirement Benefits | Pension and Other Retirement Benefits Moody’s maintains various noncontributory DBPPs as well as other contributory and noncontributory retirement plans. The expense and assets/liabilities that the Company reports for its pension and other retirement benefits are dependent on many assumptions concerning the outcome of future events and circumstances. These assumptions represent the Company’s best estimates and may vary by plan. The differences between the assumptions for the expected long-term rate of return on plan assets and actual experience is spread over a five-year period to the market-related value of plan assets, which is used in determining the expected return on assets component of annual pension expense. All other actuarial gains and losses are generally deferred and amortized over the estimated average future working life of active plan participants. The Company recognizes as an asset or liability in its consolidated balance sheet the funded status of its defined benefit retirement plans, measured on a plan-by-plan basis. Changes in the funded status due to actuarial gains/losses are recorded as part of other comprehensive income during the period the changes occur. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The amendments in this ASU require the use of an “expected credit loss” impairment model for most financial assets reported at amortized cost, which will require entities to estimate expected credit losses over the lifetime of the instrument. This may result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, an allowance for credit losses will be recognized as a contra account to the amortized cost carrying value of the asset rather than a direct reduction to the carrying value, with changes in the allowance impacting earnings. In November 2018, the FASB issued ASU No. 2018-19 “Codification Improvements to Topic 326, Financial Instruments—Credit Losses,” which clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20, but instead should be accounted for in accordance with Topic 842, Leases. ASU No. 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted in annual and interim reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. This ASU also sets forth new disclosure requirements relating to financial assets within its scope. The most notable impact of this ASU to Moody's relates to the Company's processes around the assessment of its allowance for doubtful accounts on accounts receivable . The Company has updated its policies and procedures in order to implement the “expected credit loss” impairment model, which includes (1) refinement of the grouping of receivables with similar risk characteristics; and (2) processes to identify information that can be used to develop reasonable and supportable forecasts of factors that could affect the collectability of the reported amount of the receivable. The cumulative-effect adjustment to retained earnings upon adoption of this ASU is not material, and the Company does not expect the ASU to have a significant future impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” This ASU requires implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the non-cancellable term of the cloud computing arrangements plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The ASU is effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company will be required to present the amortization of capitalized implementation costs in the same line item in the statement of operations as the fees associated with the hosting service (i.e. operating and SG&A expense) and classify the related payments in the statement of cash flows in the same manner as payments made for fees associated with the hosting service (i.e. cash flows from operating activities). This ASU also requires capitalization of implementation costs in the balance sheet to be consistent with the location of prepayment of fees for the hosting element (i.e. within other current assets or other assets). The Company will adopt this ASU prospectively to all implementation costs incurred after the date of adoption. The future impact to the Company's financial statements will relate to the aforementioned classification of these capitalized costs and related amortization. In August 2018, the FASB issued ASU No. 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans”. This ASU eliminates requirements for certain disclosures and requires additional disclosures under defined benefit pension plans and other postretirement plans. The ASU is effective for all entities for fiscal years beginning after December 15, 2020 on a retrospective basis to all periods presented, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 Financial Instruments”. This ASU clarifies and improves guidanc e related to the recently issued standards updates on credit losses, hedging, and recognition and measurement of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company does not anticipate that the adoption of this ASU will have a significant impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This ASU simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740, Income Taxes, and clarifies certain aspects of the existing guidance to promote consistency among reporting entities. Certain amendments within this ASU are required to be applied on a prospective basis, while other amendments must be applied on a retrospective or modified retrospective basis. This ASU is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Reclassification of Revenue Amount | Accordingly, 2018 and 2017 revenue by LOB was reclassified to conform with this new presentation, as follows: MIS As previously reported Reclassification As Reclassified MA As previously reported Reclassification As Reclassified Full year 2018 CFG $ 1,334 $ 45 $ 1,379 RD&A $ 1,134 $ (13) $ 1,121 SFG $ 526 $ (45) $ 481 ERS $ 438 $ 13 $ 451 Full year 2017 CFG $ 1,393 $ 55 $ 1,448 RD&A $ 833 $ (7) $ 826 SFG $ 495 $ (55) $ 440 ERS $ 448 $ 7 $ 455 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by LOB: Year Ended December 31, 2019 2018 2017 (1) MIS: Corporate finance (CFG) (3) Investment-grade $ 379 $ 271 $ 335 High-yield 258 175 254 Bank loans 313 379 351 Other accounts (CFG) (2) 547 554 508 Total CFG 1,497 1,379 1,448 Structured finance (SFG) (3) Asset-backed securities 99 107 97 RMBS 95 98 89 CMBS 81 78 87 Structured credit 148 196 165 Other accounts (SFG) 4 2 2 Total SFG 427 481 440 Financial institutions (FIG) Banking 320 290 300 Insurance 119 114 102 Managed investments 25 25 22 Other accounts (FIG) 12 13 12 Total FIG 476 442 436 Public, project and infrastructure finance (PPIF) Public finance / sovereign 222 185 218 Project and infrastructure 224 206 213 Total PPIF 446 391 431 Total ratings revenue 2,846 2,693 2,755 MIS Other 29 19 19 Total external revenue 2,875 2,712 2,774 Intersegment royalty 134 124 112 Total MIS 3,009 2,836 2,886 MA: Research, data and analytics (RD&A) (4) 1,273 1,121 826 Enterprise risk solutions (ERS) (4) 522 451 455 Professional services (PS) 159 159 149 Total external revenue 1,954 1,731 1,430 Intersegment revenue 9 12 16 Total MA 1,963 1,743 1,446 Eliminations (143) (136) (128) Total MCO $ 4,829 $ 4,443 $ 4,204 (1) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard. (2) Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue. (3) Pursuant to certain organizational realignments in 2019, MIS now reports revenue from REITs, which was previously classified in the SFG LOB, as a component of the CFG LOB. The amounts reclassified were not material and prior year revenue by LOB has been reclassified to conform to this new presentation. (4) Pursuant to organizational/product realignments in 2019, revenue relating to the Bureau van Dijk FACT product, a credit assessment and origination software solution, is now reported in the ERS LOB. This revenue was previously reported in the RD&A LOB. Prior year revenue by LOB has been reclassified to conform to this new presentation, and the amounts reclassified were not material. The following table presents the Company’s revenues disaggregated by LOB and geographic area: Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017 (1) U.S. Non-U.S. Total U.S. Non-U.S. Total U.S. Non-U.S. Total MIS: Corporate finance (2) $ 968 $ 529 $ 1,497 $ 894 $ 485 $ 1,379 $ 961 $ 487 $ 1,448 Structured finance (2) 270 157 427 301 180 481 288 152 440 Financial institutions 200 276 476 194 248 442 186 250 436 Public, project and infrastructure finance 282 164 446 229 162 391 266 165 431 Total ratings revenue 1,720 1,126 2,846 1,618 1,075 2,693 1,701 1,054 2,755 MIS Other 1 28 29 1 18 19 1 18 19 Total MIS 1,721 1,154 2,875 1,619 1,093 2,712 1,702 1,072 2,774 MA: Research, data and analytics (3) 558 715 1,273 481 640 1,121 424 402 826 Enterprise risk solutions (3) 201 321 522 170 281 451 167 288 455 Professional services 64 95 159 60 99 159 55 94 149 Total MA 823 1,131 1,954 711 1,020 1,731 646 784 1,430 Total MCO $ 2,544 $ 2,285 $ 4,829 $ 2,330 $ 2,113 $ 4,443 $ 2,348 $ 1,856 $ 4,204 (1) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard. (2) Pursuant to certain organizational realignments in 2019, MIS now reports revenue from REITs, which was previously classified in the SFG LOB, as a component of the CFG LOB. The amounts reclassified were not material and prior years revenue by LOB has been reclassified to conform to this new presentation. (3) Pursuant to organizational/product realignments in 2019, revenue relating to the Bureau van Dijk FACT product, a credit assessment and origination software solution, is now reported in the ERS LOB. This revenue was previously reported in the RD&A LOB. Prior years revenue by LOB has been reclassified to conform to this new presentation, and the amounts reclassified were not material. The following table presents the Company's reportable segment revenues disaggregated by segment and geographic region: Year Ended December 31, 2019 2018 2017 MIS: U.S. $ 1,721 $ 1,619 $ 1,702 Non-U.S.: EMEA 686 669 638 Asia-Pacific 320 300 292 Americas 148 124 142 Total Non-U.S. 1,154 1,093 1,072 Total MIS 2,875 2,712 2,774 MA: U.S. 823 711 646 Non-U.S.: EMEA 760 708 494 Asia-Pacific 231 193 179 Americas 140 119 111 Total Non-U.S. 1,131 1,020 784 Total MA 1,954 1,731 1,430 Total MCO $ 4,829 $ 4,443 $ 4,204 The tables below summarize the split between transaction and relationship revenue. In the MIS segment, excluding MIS Other, transaction revenue represents the initial rating of a new debt issuance as well as other one-time fees while relationship revenue represents the 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. In MIS Other, transaction revenue represents revenue from professional services and outsourcing engagements and relationship revenue represents subscription-based revenues. In the MA segment, relationship revenue represents subscription-based revenues and software maintenance revenue. Transaction revenue in MA represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, training and certification services, and outsourced research and analytical engagements. Year Ended December 31, 2019 2018 2017 (2) Transaction (1) Relationship Total Transaction (1) Relationship Total Transaction (1) Relationship Total Corporate Finance $ 1,057 $ 440 $ 1,497 $ 949 $ 430 $ 1,379 $ 1,053 $ 395 $ 1,448 71 % 29 % 100 % 69 % 31 % 100 % 73 % 27 % 100 % Structured Finance $ 246 $ 181 $ 427 $ 310 $ 171 $ 481 $ 279 $ 161 $ 440 58 % 42 % 100 % 64 % 36 % 100 % 63 % 37 % 100 % Financial Institutions $ 212 $ 264 $ 476 $ 187 $ 255 $ 442 $ 195 $ 241 $ 436 45 % 55 % 100 % 42 % 58 % 100 % 45 % 55 % 100 % Public, Project and Infrastructure Finance $ 292 $ 154 $ 446 $ 238 $ 153 $ 391 $ 278 $ 153 $ 431 65 % 35 % 100 % 61 % 39 % 100 % 65 % 35 % 100 % MIS Other $ 2 $ 27 $ 29 $ 2 $ 17 $ 19 $ 3 $ 16 $ 19 7 % 93 % 100 % 11 % 89 % 100 % 16 % 84 % 100 % Total MIS $ 1,809 $ 1,066 $ 2,875 $ 1,686 $ 1,026 $ 2,712 $ 1,808 $ 966 $ 2,774 63 % 37 % 100 % 62 % 38 % 100 % 65 % 35 % 100 % Research, data and analytics $ 16 $ 1,257 $ 1,273 $ 18 $ 1,103 $ 1,121 $ 25 $ 801 $ 826 1 % 99 % 100 % 2 % 98 % 100 % 3 % 97 % 100 % Enterprise risk solutions $ 118 $ 404 $ 522 $ 99 $ 352 $ 451 $ 137 $ 318 $ 455 23 % 77 % 100 % 22 % 78 % 100 % 30 % 70 % 100 % Professional services $ 159 $ — $ 159 $ 159 $ — $ 159 $ 149 $ — $ 149 100 % — % 100 % 100 % — % 100 % 100 % — % 100 % Total MA $ 293 $ 1,661 $ 1,954 $ 276 $ 1,455 $ 1,731 $ 311 $ 1,119 $ 1,430 15 % 85 % 100 % 16 % 84 % 100 % 22 % 78 % 100 % Total Moody’s Corporation $ 2,102 $ 2,727 $ 4,829 $ 1,962 $ 2,481 $ 4,443 $ 2,119 $ 2,085 $ 4,204 44 % 56 % 100 % 44 % 56 % 100 % 50 % 50 % 100 % (1) Revenue from software implementation services and risk management advisory projects in MA, while classified by management as transactional revenue, is recognized over time under the New Revenue Accounting Standard (please also refer to the table below). (2) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard. The following table presents the timing of revenue recognition: Year Ended December 31, 2019 Year Ended December 31, 2018 MIS MA Total MIS MA Total Revenue recognized at a point in time $ 1,809 $ 132 $ 1,941 $ 1,686 $ 99 $ 1,785 Revenue recognized over time 1,066 1,822 2,888 1,026 1,632 2,658 Total $ 2,875 $ 1,954 $ 4,829 $ 2,712 $ 1,731 $ 4,443 |
Schedule of Changes in the Deferred Revenue Balances | Significant changes in the deferred revenue balances during the year ended December 31, 2019 are as follows: Year Ended December 31, 2019 MIS MA Total Balance at January 1, 2019 $ 325 $ 750 $ 1,075 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (209) (714) (923) Increases due to amounts billable excluding amounts recognized as revenue during the period 202 789 991 Increases due to acquisitions during the period 3 6 9 Effect of exchange rate changes 1 9 10 Total changes in deferred revenue (3) 90 87 Balance at December 31, 2019 $ 322 $ 840 $ 1,162 Deferred revenue - current $ 214 $ 836 $ 1,050 Deferred revenue - noncurrent $ 108 $ 4 $ 112 Significant changes in the deferred revenue balances during the year ended December 31, 2018 are as follows: Year Ended December 31, 2018 MIS MA Total Balance at January 1, 2018 (after New Revenue Accounting Standard transition adjustment) $ 334 $ 612 $ 946 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (218) (590) (808) Increases due to amounts billable excluding amounts recognized as revenue during the period 216 730 946 Increases due to acquisitions during the period — 16 16 Effect of exchange rate changes (7) (18) (25) Total changes in deferred revenue (9) 138 129 Balance at December 31, 2018 $ 325 $ 750 $ 1,075 Deferred revenue—current $ 207 $ 746 $ 953 Deferred revenue—noncurrent $ 118 $ 4 $ 122 |
RECONCILIATION OF WEIGHTED AV_2
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic to Diluted Shares Outstanding | Below is a reconciliation of basic to diluted shares outstanding: Year Ended December 31, 2019 2018 2017 Basic 189.3 191.6 191.1 Dilutive effect of shares issuable under stock-based compensation plans 2.3 2.8 3.1 Diluted 191.6 194.4 194.2 Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above 0.2 0.4 0.6 |
CASH EQUIVALENTS AND INVESTME_2
CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
CASH EQUIVALENTS AND INVESTMENTS | The table below provides additional information on the Company’s cash equivalents and investments: As of December 31, 2019 Cost Gross Unrealized Gains Fair Value Balance sheet location Cash and cash equivalents Short-term investments Other assets Certificates of deposit and money market deposit accounts (1) $ 971 $ — $ 971 $ 866 $ 95 $ 10 Open ended mutual funds $ 3 $ — $ 3 $ — $ 3 $ — As of December 31, 2018 Cost Gross Unrealized Gains Fair Value Balance sheet location Cash and cash equivalents Short-term investments Other assets Money market mutual funds $ 15 $ — $ 15 $ 15 $ — $ — Certificates of deposit and money market deposit accounts (1) $ 1,022 $ — $ 1,022 $ 904 $ 116 $ 2 Open ended mutual funds $ 29 $ 4 $ 33 $ — $ 17 $ 16 (1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap | The following table summarizes the Company’s interest rate swaps designated as fair value hedges: Nature of Swap Notional Amount Floating Interest Rate Hedged Item 2019 2018 2010 Senior Notes due 2020 Pay Floating/Receive Fixed $ — $ 500 3-month LIBOR 2012 Senior Notes due 2022 Pay Floating/Receive Fixed $ 330 $ 330 3-month LIBOR 2017 Senior Notes due 2021 Pay Floating/Receive Fixed $ 500 $ 500 3-month LIBOR 2017 Senior Notes due 2023 Pay Floating/Receive Fixed $ 250 $ — 3-month LIBOR Total $ 1,080 $ 1,330 December 31, 2019 Pay Receive Nature of Swap Notional Amount Weighted Average Interest Rate Notional Amount Weighted Average Interest Rate Pay Fixed/Receive Fixed € 1,079 1.43% $ 1,220 3.96% Pay Floating/Receive Floating 931 Based on 3-month EURIBOR 1,080 Based on 3-month USD LIBOR Total € 2,010 $ 2,300 December 31, 2018 Pay Receive Nature of Swap Notional Amount Weighted Average Interest Rate Notional Amount Weighted Average Interest Rate Pay Floating/Receive Floating € 710 Based on 3-month EURIBOR $ 830 Based on 3-month USD LIBOR Total € 710 $ 830 |
Gains and Losses on Derivatives Designated as Hedging Instruments | The following table summarizes the impact to the statement of operations of the Company’s interest rate swaps designated as fair value hedges: 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 Year Ended December 31, 2019 2018 2017 Interest expense, net $ (208) $ (215) $ (209) Location on Consolidated Statements of Operations Net interest settlements and accruals on interest rate swaps Interest expense, net $ 3 $ (2) $ 7 Fair value changes on interest rate swaps Interest expense, net 25 2 (9) Fair value changes on hedged debt Interest expense, net $ (25) $ (2) $ 9 |
Amount of Gain/(Loss) Recognized in AOCI on Derivative Net Investment Hedging Relationships (Effectiveness Portion) | The following table provides information on the gains/(losses) on the Company’s net investment and cash flow hedges: Amount of Gain/(Loss) Amount of Gain/(Loss) Gain/(Loss) Recognized in Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships Year Ended December 31, Year Ended December 31, Year Ended December 31, 2019 2018 2017 (2) 2019 2018 2017 (2) 2019 (3) 2018 (3) 2017 FX forward contracts $ 4 $ — $ 1 $ 2 $ — $ — $ — $ — $ — Cross currency swaps 29 12 — — — — 52 11 — Long-term debt (7) (1) 22 (37) — — — — — — Total net investment hedges $ 26 $ 34 $ (36) $ 2 $ — $ — $ 52 $ 11 $ — Derivatives in Cash Flow Hedging Cross currency swap $ — $ 2 $ 6 $ — $ — $ 8 $ — $ — $ — Interest rate contracts — (2) — — — (1) — — — Total cash flow hedges — — 6 — — 7 — — — Total $ 26 $ 34 $ (30) $ 2 $ — $ 7 $ 52 $ 11 $ — (1) Due to the Company's adoption of ASU 2018-02 during 2019, $3 million related to the tax effect of this net investment hedge was reclassified to retained earnings. Refer to Note 1 for further details. (2) For the year ended December 31, 2017, amount of gain or (loss) represents only the effective portion of the hedging relationship as this period was prior to the Company’s 2018 initial application of ASU 2017-12. (3) Effective with the adoption of ASU 2017-12, the Company has elected to assess the effectiveness of its net investment hedges based on changes in spot exchange rates. Accordingly, amounts related to cross-currency swaps recognized directly into Net Income during 2018 and 2019 represent net periodic interest settlements and accruals, which are recognized in interest expense, net. |
Cumulative Amount of Unrecognized Hedge Losses Recorded in Accumulated Other Comprehensive Income | The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCI is as follows: Cumulative Gains/(Losses), net of tax December 31, 2019 December 31, 2018 Net investment hedges Cross currency swaps $ 41 $ 12 FX forwards 26 24 Long-term debt (13) (3) Total net investment hedges 54 33 Cash flow hedges Interest Rate Contract (2) (2) Cross-currency swap 2 2 Total cash flow hedges — — Total net gain in AOCI $ 54 $ 33 |
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards | The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: December 31, 2019 December 31, 2018 Notional Amount of Currency Pair: Sell Buy Sell Buy Contracts to sell USD for GBP $ 235 £ 178 $ 310 £ 241 Contracts to sell USD for Japanese Yen $ 29 ¥ 3,200 $ 14 ¥ 1,600 Contracts to sell USD for Canadian dollars $ 83 C$ 110 $ 99 C$ 130 Contracts to sell USD for Singapore dollars $ 41 S$ 56 $ — S$ — Contracts to sell USD for Euros $ 421 € 378 $ 213 € 185 Contracts to sell Euros for GBP € 25 £ 21 € — £ — NOTE: € = Euro, £ = British pound, S$ = Singapore dollar, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar |
Gains and Losses Recognized in Consolidated Statement of Operations on Derivatives Not Designated as Hedging instruments | The following table summarizes the impact to the consolidated statements of operations relating to the net gain (loss) on the Company’s derivatives which are not designated as hedging instruments: Year Ended December 31, Derivatives Not Designated as Accounting Hedges Location on Statement of Operations 2019 2018 2017 FX forwards Other non-operating expense, net $ (11) $ (52) $ 22 FX collar relating to Bureau van Dijk acquisition Purchase Price Hedge Gain — — 101 FX forwards relating to Bureau van Dijk acquisition Purchase Price Hedge Gain — — 10 $ (11) $ (52) $ 133 |
Fair Value of Derivative Instruments | The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of derivative instruments as well as the carrying value of its non-derivative debt instruments designated and qualifying as net investment hedges: Derivative and Non-derivative Instruments Balance Sheet Location December 31, 2019 December 31, 2018 Assets: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other assets $ 56 $ 19 Interest rate swaps designated as fair value hedges Other assets 27 8 Total derivatives designated as accounting hedges 83 27 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Other current assets 9 1 Total assets $ 92 $ 28 Liabilities: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other liabilities $ — $ 3 Interest rate swaps Other liabilities — 5 Total derivatives designated as accounting hedges — 8 Non-derivative instrument designated as accounting hedge: Long-term debt designated as net investment hedge Long-term debt 1,403 572 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Accounts payable and accrued liabilities — 8 Total liabilities $ 1,403 $ 588 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consisted of: December 31, 2019 2018 Office and computer equipment (3 - 10 year estimated useful life) $ 221 $ 242 Office furniture and fixtures (3 - 10 year estimated useful life) 51 52 Internal-use computer software (1 - 10 year estimated useful life) 619 574 Leasehold improvements and building (1 - 21 year estimated useful life) 240 242 Total property and equipment, at cost 1,131 1,110 Less: accumulated depreciation and amortization (839) (790) Total property and equipment, net $ 292 $ 320 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reis Inc | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | Shown below is the final purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: (Amounts in millions) Current assets $ 32 Property and equipment 4 Intangible assets: Customer relationships (14 year weighted average life) $ 77 Database (5 year weighted average life) 13 Product technology (7 year weighted average life) 10 Trade name (10 year weighted average life) 4 Total intangible assets (12 year weighted average life) 104 Goodwill 183 Deferred tax assets 13 Liabilities: Deferred revenue $ (14) Accounts payable and accrued liabilities (20) Deferred tax liabilities (24) Total liabilities (58) Net assets acquired $ 278 |
Bureau Van Dijk | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | Shown below is the final purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition: (Amounts in millions) Current assets $ 158 Property and equipment 4 Intangible assets: Customer relationships (23 year weighted average life) $ 999 Product technology (12 year weighted average life) 259 Trade name (18 year weighted average life) 82 Database (10 year weighted average life) 13 Total intangible assets (21 year weighted average life) 1,353 Goodwill 2,615 Other assets 6 Liabilities: Deferred revenue (101) Accounts payable and accrued liabilities (44) Deferred tax liabilities, net (330) Other liabilities $ (119) Total liabilities (594) Net assets acquired $ 3,542 |
BvD Pro Forma Information | (Amounts in millions) For the year ended Pro forma Revenue $ 4,415 Pro forma Net Income attributable to Moody’s $ 1,012 |
GOODWILL AND OTHER ACQUIRED I_2
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Activity in Goodwill | The following table summarizes the activity in goodwill: Year Ended December 31, 2019 MIS MA Consolidated Gross Accumulated Net Gross Accumulated Net Gross Accumulated Net Balance at beginning $ 258 $ — $ 258 $ 3,535 $ (12) $ 3,523 $ 3,793 $ (12) $ 3,781 Additions/ adjustments (1) 53 — 53 61 — 61 114 — 114 Foreign currency 4 — 4 (14) — (14) (10) — (10) Divestiture of MAKS (See Note 10) — — — (163) — (163) (163) — (163) Ending balance $ 315 $ — $ 315 $ 3,419 $ (12) $ 3,407 $ 3,734 $ (12) $ 3,722 Year Ended December 31, 2018 MIS MA Consolidated Gross Accumulated Net Gross Accumulated Net Gross Accumulated Net Balance at beginning of year $ 285 $ — $ 285 $ 3,480 $ (12) $ 3,468 $ 3,765 $ (12) $ 3,753 Additions/ adjustments (2) — — — 211 — 211 211 — 211 Foreign currency translation adjustments (27) — (27) (156) — (156) (183) — (183) Ending balance $ 258 $ — $ 258 $ 3,535 $ (12) $ 3,523 $ 3,793 $ (12) $ 3,781 (1) The 2019 additions/adjustments for the MIS segment in the table above relate to the acquisitions of Vigeo Eiris and Four Twenty Seven. The 2019 additions/adjustments for the MA segment in the table above relate to the acquisitions of RiskFirst and ABS Suite. (2) The 2018 additions/adjustments for the MA segment in the table above primarily relate to the acquisitions of Reis and Omega Performance. |
Acquired Intangible Assets and Related Amortization | Acquired intangible assets and related amortization consisted of: December 31, 2019 2018 Customer relationships $ 1,325 $ 1,368 Accumulated amortization (235) (214) Net customer relationships 1,090 1,154 Trade secrets 30 30 Accumulated amortization (29) (28) Net trade secrets 1 2 Software/product technology 372 353 Accumulated amortization (131) (102) Net software/product technology 241 251 Trade names 150 155 Accumulated amortization (30) (34) Net trade names 120 121 Other (1) 80 70 Accumulated amortization (34) (32) Net other 46 38 Total $ 1,498 $ 1,566 (1) Other intangible assets primarily consist of databases, covenants not to compete, and acquired ratings methodologies and models. |
Amortization Expense Relating to Acquired Intangible Assets | Amortization expense relating to acquired intangible assets is as follows: Year Ended December 31, 2019 2018 2017 Amortization expense $ 103 $ 102 $ 61 |
Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization | Estimated future annual amortization expense for intangible assets subject to amortization is as follows: Year Ending December 31, 2020 $ 99 2021 99 2022 99 2023 96 2024 94 Thereafter 1,011 Total estimated future amortization $ 1,498 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses Included in Consolidated Statements of Operations | Total expenses included in the accompanying consolidated statements of operations relating to the aforementioned restructuring plan is as follows: Year Ended December 31, 2019 2018 2017 2018 Restructuring Program $ 60 $ 49 $ — |
Changes to the Restructuring Liability | Changes to the restructuring liability were as follows: 2018 Restructuring Program: Employee Termination Costs Contract Termination Costs Total Restructuring Liability (2) Balance as of December 31, 2017 $ — $ — $ — Cost incurred and adjustments 33 12 45 Cash payments and adjustments (3) — (3) Balance as of December 31, 2018 $ 30 $ 12 $ 42 Adoption of New Lease Accounting Standard (1) — (11) (11) Cost incurred and adjustments 26 5 31 Cash payments and adjustments (35) (3) (38) Balance as of December 31, 2019 $ 21 $ 3 $ 24 Cumulative expense incurred to date $ 59 $ 50 (1) Upon the adoption of the New Lease Accounting Standard, the Company recorded a reclassification of $11 million of liabilities in the first quarter of 2019 for costs associated with certain real estate leases which were exited in previous years, as a reduction of the ROU Asset capitalized upon adoption. (2) The liability excludes $4 million of non-cash acceleration of amortization of leasehold improvements relating to the rationalization and exit of certain real estate leases as well as $25 million of ROU Asset impairment charges for the year ended December 31, 2019. The fair value of the impaired ROU Assets was determined by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of those ROU assets subsequent to the impairment was $18 million, and is categorized as Level 3 within the ASC Topic 820 fair value hierarchy. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Carried at Fair Value on Recurring Basis | The table below presents information about items which are carried at fair value on a recurring basis at December 31, 2019 and 2018: Fair value Measurement as of December 31, 2019 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 92 $ — $ 92 Open ended mutual funds 3 3 — Total $ 95 $ 3 $ 92 Fair Value Measurement as of December 31, 2018 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 28 $ — $ 28 Money market mutual funds 15 15 — Open ended mutual funds 33 33 — Total $ 76 $ 48 $ 28 Liabilities: Derivatives (1) $ 16 $ — $ 16 Total $ 16 $ — $ 16 (1) Represents FX forwards on certain assets and liabilities as well as interest rate swaps and cross-currency swaps as more fully described in Note 7 to the consolidated financial statements. |
OTHER BALANCE SHEET INFORMATI_2
OTHER BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Balance Sheet Information [Abstract] | |
Additional Details Related to Certain Balance Sheet Captions | The following tables contain additional detail related to certain balance sheet captions: December 31, 2019 2018 Other current assets: Prepaid taxes $ 79 $ 100 Prepaid expenses 71 67 Capitalized costs to obtain and fulfill sales contracts 91 77 Other 89 38 Total other current assets $ 330 $ 282 December 31, 2019 2018 Other assets: Investments in non-consolidated affiliates $ 117 $ 105 Deposits for real-estate leases 13 14 Indemnification assets related to acquisitions 16 16 Mutual funds and fixed deposits 10 18 Costs to obtain sales contracts 119 79 Cross currency and interest rate swaps 83 27 Other 31 16 Total other assets $ 389 $ 275 December 31, 2019 2018 Accounts payable and accrued liabilities: Salaries and benefits $ 152 $ 113 Incentive compensation 208 155 Customer credits, advanced payments and advanced billings 28 20 Dividends 7 7 Professional service fees 43 48 Interest accrued on debt 63 71 Accounts payable 38 30 Income taxes 73 71 Pension and other retirement employee benefits 7 6 Accrued royalties 25 25 Foreign exchange forwards on certain assets and liabilities — 8 Restructuring liability 21 35 Other 108 107 Total accounts payable and accrued liabilities $ 773 $ 696 December 31, 2019 2018 Other liabilities: Pension and other retirement employee benefits $ 299 $ 249 Deferred rent -– non-current portion (1) — 94 Interest accrued on UTPs 82 70 MAKS indemnification provisions (See Note 10) 43 — Income tax liability – non-current portion 51 125 Cross currency and interest rate swaps — 8 Restructuring liability 3 7 Other 26 23 Total other liabilities $ 504 $ 576 (1) Pursuant to the adoption of the New Lease Accounting Standard, deferred rent relating to operating leases was reclassified to operating lease ROU Asset. |
COMPREHENSIVE INCOME AND ACCU_2
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Reclassifications out of AOCI | The following table provides details about the reclassifications out of AOCI: Year Ended December 31, Location in the consolidated statement of operations 2019 2018 2017 Currency translation adjustment losses Sale of foreign subsidiaries (see Note 10) $ (32) $ — $ — Loss pursuant to the divestiture of MAKS Total currency translation adjustment losses (32) — — Gains on cash flow hedges Cross-currency swap — — 13 Other non-operating income (expense), net Interest rate contract — — (1) Interest expense, net Total before income taxes — — 12 Income tax effect of item above — — (5) Provision for income taxes Total net gains on cash flow hedges — — 7 Gains on net investment hedges FX forwards 3 — — Other non-operating income (expense), net Income tax effect of item above (1) — — Provision for income taxes Total net gains on net investment hedges 2 — — Gains on available for sale securities Gains on available for sale securities — — 2 Other non-operating income (expense), net Income tax effect of item above — — — Provision for income taxes Total gains on available for sale securities — — 2 Pension and other retirement benefits Amortization of actuarial losses and prior service costs included in net income (2) (3) (5) Operating expense Amortization of actuarial losses and prior service costs included in net income (1) (2) (3) SG&A expense Total before income taxes (3) (5) (8) Income tax effect of item above 1 1 3 Provision for income taxes Total pension and other retirement benefits (2) (4) (5) Total (losses) gains included in Net Income attributable to reclassifications out of AOCI $ (32) $ (4) $ 4 |
Components of Accumulated Other Comprehensive Income | The following table shows changes in AOCI by component (net of tax): Year Ended December 31, 2019 Pension and Other Retirement Benefits Gains / (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance December 31, 2018 $ (53) $ — $ (406) $ 33 $ (426) Other comprehensive income/(loss) before reclassifications (24) — (27) 26 (25) Amounts reclassified from AOCI 2 — 32 (2) 32 Adoption of ASU 2018-02 (See Note 1) (17) — — (3) (20) Other comprehensive income/(loss) (39) — 5 21 (13) Balance December 31, 2019 $ (92) $ — $ (401) $ 54 $ (439) Year Ended December 31, 2018 Pension and Other Retirement Benefits Gains / (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Gains on Available for Sale Securities Total Balance December 31, 2017 $ (61) $ 1 $ (113) $ (1) $ 2 $ (172) Adoption of ASU 2016-01 — — — — (2) (2) Other comprehensive income/(loss) before reclassifications 4 (1) (293) 34 — (256) Amounts reclassified from AOCI 4 — — — — 4 Other comprehensive income/(loss) 8 (1) (293) 34 (2) (254) Balance December 31, 2018 $ (53) $ — $ (406) $ 33 $ — $ (426) Year Ended December 31, 2017 Pension and Other Retirement Benefits Gains / (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Gains on Available for Sale Securities Total Balance December 31, 2016 $ (79) $ 2 $ (325) $ 35 $ 3 $ (364) Other comprehensive income/(loss) before reclassifications 13 6 212 (36) 1 196 Amounts reclassified from AOCI 5 (7) — — (2) (4) Other comprehensive income/(loss) 18 (1) 212 (36) (1) 192 Balance December 31, 2017 $ (61) $ 1 $ (113) $ (1) $ 2 $ (172) |
PENSION AND OTHER RETIREMENT _2
PENSION AND OTHER RETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Summary of Changes in Benefit Obligations and Fair Value of Plan Assets for Retirement Plans | Following is a summary of changes in benefit obligations and fair value of plan assets for the Retirement Plans for the years ended December 31: Pension Plans Other Retirement Plans 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation, beginning of the period $ (508) $ (518) $ (32) $ (31) Service cost (17) (19) (3) (3) Interest cost (21) (17) (1) (1) Plan participants’ contributions — — (1) (1) Benefits paid 21 11 1 1 Actuarial loss (3) — — — Assumption changes (61) 35 (6) 3 Benefit obligation, end of the period $ (589) $ (508) $ (42) $ (32) Change in plan assets: Fair value of plan assets, beginning of the period $ 348 $ 357 $ — $ — Actual return on plan assets 60 (18) — — Benefits paid (21) (11) (1) (1) Employer contributions 8 20 — — Plan participants’ contributions — — 1 1 Fair value of plan assets, end of the period $ 395 $ 348 $ — $ — Funded Status of the plans $ (194) $ (160) $ (42) $ (32) Amounts recorded on the consolidated balance sheets: Pension and retirement benefits liability – current $ (6) $ (5) $ (1) $ (1) Pension and retirement benefits liability – non current (188) (155) (41) (31) Net amount recognized $ (194) $ (160) $ (42) $ (32) Accumulated benefit obligation, end of the period $ (529) $ (458) |
Accumulated Benefit Obligation in Excess of Plan Assets | The following information is for those pension plans with an accumulated benefit obligation in excess of plan assets: December 31, 2019 2018 Aggregate projected benefit obligation $ 589 $ 508 Aggregate accumulated benefit obligation $ 529 $ 458 Aggregate fair value of plan assets $ 395 $ 348 |
Summary of Pre-Tax Net Actuarial Losses and Prior Service Cost Recognized in AOCI | The following table summarizes the pre-tax net actuarial losses and prior service cost recognized in AOCI for the Company’s Retirement Plans as of December 31: Pension Plans Other Retirement Plans 2019 2018 2019 2018 Net actuarial losses $ (116) $ (96) $ (6) $ — Net prior service costs 4 4 — — Total recognized in AOCI – pretax $ (112) $ (92) $ (6) $ — |
Summary of Post-Retirement Plans to Amortized from AOCI as Net Periodic Expense during next fiscal year | The following table summarizes the estimated pre-tax net actuarial losses for the Company’s Retirement Plans that will be amortized from AOCI and recognized as components of net periodic expense during the next fiscal year: Pension Plans Other Retirement Plans Net actuarial losses $ 7 $ — Total to be recognized as components of net periodic expense $ 7 $ — |
Components of Net Periodic Benefit Expense Related to Retirement Plans | Net periodic benefit expenses recognized for the Retirement Plans for years ended December 31: Pension Plans Other Retirement Plans 2019 2018 2017 2019 2018 2017 Components of net periodic expense Service cost $ 17 $ 19 $ 18 $ 3 $ 3 $ 2 Interest cost 21 17 19 1 1 1 Expected return on plan assets (20) (15) (17) — — — Amortization of net actuarial loss from earlier periods 4 6 9 — — — Net periodic expense $ 22 $ 27 $ 29 $ 4 $ 4 $ 3 |
Summary of Pre-Tax Amounts Recorded in OCI | The following table summarizes the pre-tax amounts recorded in OCI related to the Company’s Retirement Plans for the years ended December 31: Pension Plans Other Retirement Plans 2019 2018 2017 2019 2018 2017 Amortization of net actuarial losses $ 4 $ 6 $ 9 $ — $ — $ — Net actuarial (loss)/gain arising during the period (24) 2 21 (6) 3 1 Total recognized in OCI – pre-tax $ (20) $ 8 $ 30 $ (6) $ 3 $ 1 |
Weighted-average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Expenses | Weighted-average assumptions used to determine benefit obligations at December 31: Pension Plans Other Retirement Plans 2019 2018 2019 2018 Discount rate 3.04 % 4.07 % 3.05 % 4.10 % Rate of compensation increase 3.64 % 3.69 % — — Weighted-average assumptions used to determine net periodic benefit expense for years ended December 31: Pension Plans Other Retirement Plans 2019 2018 2017 2019 2018 2017 Discount rate 4.07 % 3.46 % 3.89 % 4.10 % 3.45 % 3.85 % Expected return on plan assets 5.65 % 4.50 % 5.40 % — — — Rate of compensation increase 3.69 % 3.71 % 3.72 % — — — |
Summary of Pension Plan Assets by Category Based on Hierarchy of Fair Value Measurements | Fair value of the assets in the Company’s funded pension plan by asset category at December 31, 2019 and 2018 are as follows: Fair Value Measurement as of December 31, 2019 Asset Category Balance Level 1 Level 2 Measured using NAV practical expedient (1) % of total Cash and cash equivalent $ 2 $ — $ 2 $ — 1 % Common/collective trust funds—equity securities U.S. large-cap 140 — 140 — 35 % U.S. small and mid-cap 21 — 21 — 5 % Emerging markets 29 — 29 — 7 % Total equity investments 190 — 190 — 48 % Emerging markets bond fund 15 — — 15 4 % Common/collective trust funds—fixed income securities Intermediate-term investment grade U.S. government/ corporate bonds 119 — 119 — 30 % Mutual funds U.S. Treasury Inflation-Protected Securities (TIPs) 22 22 — — 6 % Convertible securities 12 12 — — 3 % Private investment fund—high yield securities 12 — — 12 3 % Total fixed-income investments 180 34 119 27 46 % Other investment—private real estate fund 23 — — 23 6 % Total Assets $ 395 $ 34 $ 311 $ 50 100 % Fair Value Measurement as of December 31, 2018 Asset Category Balance Level 1 Level 2 Measured using NAV practical expedient (1) % of total Cash and cash equivalent $ 1 $ — $ 1 $ — — % Common/collective trust funds—equity securities U.S. large-cap 122 — 122 — 35 % U.S. small and mid-cap 16 — 16 — 5 % Emerging markets 23 — 23 — 7 % Total equity investments 161 — 161 — 47 % Emerging markets bond fund 13 — — 13 4 % Common/collective trust funds—fixed income securities Intermediate-term investment grade U.S. government/ corporate bonds 109 — 109 — 31 % U.S. Treasury Inflation-Protected Securities (TIPs) 21 21 — — 6 % Private investment fund—convertible securities 11 — — 11 3 % Private investment fund—high yield securities 11 — — 11 3 % Total fixed-income investments 165 21 109 35 47 % Other investment—private real estate debt fund 21 — — 21 6 % Total Assets $ 348 $ 21 $ 271 $ 56 100 % (1) Investments are measured using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit a reconciliation of the fair value hierarchy to the value of the total plan assets. |
Estimated Future Benefits Payments for Retirement Plans | Estimated future benefits payments for the Retirement Plans are as follows as of year ended December 31, 2019: Year Ending December 31, Pension Plans Other Retirement Plans 2020 $ 16 $ 1 2021 17 1 2022 47 1 2023 27 2 2024 23 2 2025 - 2029 $ 146 $ 12 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-Based Compensation Cost and Associated Tax Benefit | Presented below is a summary of the stock-based compensation expense and associated tax benefit in the accompanying Consolidated Statements of Operations: Year Ended December 31, 2019 2018 2017 Stock-based compensation expense $ 136 $ 130 $ 123 Tax benefit $ 29 $ 32 $ 13 '(1) (1) The 2017 Amount includes a decrease in deferred tax assets resulting from a future reduction in the U.S. federal corporate income tax rate in accordance with the Tax Act. |
Weighted Average Assumptions used in Determining Fair Value for Options Granted | The following weighted average assumptions were used for options granted: Year Ended December 31, 2019 2018 2017 Expected dividend yield 1.14 % 1.05 % 1.34 % Expected stock volatility 24 % 26 % 27 % Risk-free interest rate 2.56 % 2.82 % 2.19 % Expected holding period -in years 6.2 6.2 6.5 Grant date fair value $ 43.29 $ 45.73 $ 30.00 |
Share-based Payment Arrangement, Option and Stock Appreciation Rights, Activity | A summary of option activity as of December 31, 2019 and changes during the year then ended is presented below: Options Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, December 31, 2018 2.2 $ 69.86 Granted 0.2 175.30 Exercised (0.8) 44.59 Outstanding, December 31, 2019 1.6 93.51 5.2 years $ 227 Vested and expected to vest, December 31, 2019 1.5 92.14 5.1 years $ 224 Exercisable, December 31, 2019 1.1 $ 71.64 4.0 years $ 176 |
Stock Option Exercises and Restricted Stock Vesting | The following table summarizes information relating to stock option exercises: Year Ended December 31, 2019 2018 2017 Proceeds from stock option exercises 36 38 49 Aggregate intrinsic value 114 99 88 Tax benefit realized upon exercise 27 24 31 |
Non Vested Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | A summary of nonvested restricted stock activity for the year ended December 31, 2019 is presented below: Nonvested Restricted Stock Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2018 2.0 $ 123.13 Granted 0.8 174.07 Vested (0.9) 113.21 Forfeited (0.1) 144.18 Balance, December 31, 2019 1.8 $ 124.63 |
Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest | The following table summarizes information relating to the vesting of restricted stock awards: Year Ended December 31, 2019 2018 2017 Fair value of shares vested 156 151 111 Tax benefit realized upon vesting 36 35 35 |
Performance Based Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | A summary of performance-based restricted stock activity for the year ended December 31, 2019 is presented below: Performance-based restricted stock Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2018 0.7 $ 103.74 Granted 0.1 169.68 Vested (0.3) 76.68 Balance, December 31, 2019 0.5 $ 134.35 |
Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest | The following table summarizes information relating to the vesting of the Company’s performance-based restricted stock awards: Year Ended December 31, 2019 2018 2017 Fair value of shares vested 47 23 20 Tax benefit realized upon vesting 11 6 7 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Components of the Company’s income tax provision are as follows: Year Ended December 31, 2019 2018 2017 Current: Federal $ 179 $ 168 $ 454 State and Local 59 50 30 Non-U.S. 181 233 207 Total current 419 451 691 Deferred: Federal (19) (59) 156 State and Local (3) (2) 17 Non-U.S. (16) (38) (85) Total deferred (38) (99) 88 Total provision for income taxes $ 381 $ 352 $ 779 |
Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income before Provision for Income Taxes | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate on income before provision for income taxes is as follows: Year Ended December 31, 2019 2018 2017 U.S. statutory tax rate 21.0 % 21.0 % 35.0 % State and local taxes, net of federal tax benefit 2.2 % 2.2 % 1.9 % Benefit of foreign operations (0.1) % 1.8 % (9.9) % U.S. Tax Act impact — % (2.8) % 17.0 % Other (2.1) % (1.1) % (0.4) % Effective tax rate 21.0 % 21.1 % 43.6 % Income tax paid $ 458 $ 442 $ 366 |
Source of Income before Provision for Income Taxes | The source of income before provision for income taxes is as follows: Year Ended December 31, 2019 2018 2017 U.S. $ 1,039 $ 936 $ 1,099 Non-U.S. 771 736 688 Income before provision for income taxes $ 1,810 $ 1,672 $ 1,787 |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows: December 31, 2019 2018 Deferred tax assets: Account receivable allowances $ 6 $ 6 Accumulated depreciation and amortization 1 1 Stock-based compensation 46 46 Accrued compensation and benefits 89 75 Operating lease liabilities 136 — Deferred rent — 22 Deferred revenue 37 41 Net operating loss 13 16 Restructuring 4 5 Uncertain tax positions 94 81 Self-insured related reserves 8 8 Other 13 14 Total deferred tax assets 447 315 Deferred tax liabilities: Accumulated depreciation and amortization of intangible assets and capitalized software (389) (395) ROU Assets (107) — Capital gains (23) (24) Self-insured related income (8) (8) Stock based compensation (2) (2) New revenue accounting standard - ASC 606 (12) (19) Unrealized gain on net investment hedges - OCI (22) (10) Other liabilities (3) (7) Total deferred tax liabilities (566) (465) Net deferred tax liabilities (119) (150) Valuation allowance (9) (5) Total net deferred tax liabilities $ (128) $ (155) |
Reconciliation of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of UTPs is as follows: Year Ended December 31, 2019 2018 2017 Balance as of January 1 $ 495 $ 389 $ 200 Additions for tax positions related to the current year 35 80 86 Additions for tax positions of prior years 22 89 120 Reductions for tax positions of prior years (2) (13) (4) Settlements with taxing authorities (1) (2) (2) Lapse of statute of limitations (44) (48) (11) Reclassification to indemnification liability related to MAKS divestiture (28) — — Balance as of December 31 $ 477 $ 495 $ 389 |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Total Indebtedness | The following table summarizes total indebtedness: December 31, 2019 Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value Notes Payable: 4.50% 2012 Senior Notes, due 2022 $ 500 $ 9 $ (1) $ (1) $ 507 4.875% 2013 Senior Notes, due 2024 500 — (1) (2) 497 5.25% 2014 Senior Notes (30-Year), due 2044 600 — 4 (5) 599 1.75% 2015 Senior Notes, due 2027 561 — — (3) 558 2.75% 2017 Senior Notes, due 2021 500 11 (1) (2) 508 2.625% 2017 Senior Notes, due 2023 500 7 (1) (2) 504 3.25% 2017 Senior Notes, due 2028 500 — (4) (3) 493 3.25% 2018 Senior Notes, due 2021 300 — — (1) 299 4.25% 2018 Senior Notes, due 2029 400 — (3) (3) 394 4.875% 2018 Senior Notes, due 2048 400 — (7) (4) 389 0.950% 2019 Senior Notes, due 2030 842 — (3) (6) 833 Total long-term debt $ 5,603 $ 27 $ (17) $ (32) $ 5,581 December 31, 2018 Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value Notes Payable: 5.50% 2010 Senior Notes, due 2020 $ 500 $ (4) $ (1) $ (1) $ 494 4.50% 2012 Senior Notes, due 2022 500 2 (2) (1) 499 4.875% 2013 Senior Notes, due 2024 500 — (1) (2) 497 2.75% 2014 Senior Notes (5-Year), due 2019 450 — — — 450 5.25% 2014 Senior Notes (30-Year), due 2044 600 — 3 (5) 598 1.75% 2015 Senior Notes, due 2027 572 — — (3) 569 2.75% 2017 Senior Notes, due 2021 500 4 (1) (2) 501 2.625% 2017 Senior Notes, due 2023 500 — (1) (3) 496 3.25% 2017 Senior Notes, due 2028 500 — (5) (4) 491 3.25% 2018 Senior Notes, due 2021 300 — — (2) 298 4.25% 2018 Senior Notes, due 2029 400 — (3) (3) 394 4.875% 2018 Senior Notes, due 2048 400 — (7) (4) 389 Total debt $ 5,722 $ 2 $ (18) $ (30) $ 5,676 Current portion (450) Total long-term debt $ 5,226 (1) The Company has entered into interest rate swaps on the 2010 Senior Notes, the 2012 Senior Notes, the 2014 Senior Notes (5-Year), the 2017 Senior Notes due 2021 and the 2017 Senior Notes due 2023 which are more fully discussed in Note 7 above. These amounts represent the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt. |
Schedule of Credit Facilities | The following summarizes information relating to the Company's revolving credit facility: December 31, 2019 December 31, 2018 Issue Date Capacity Maturity Drawn Undrawn Drawn Undrawn 2018 Credit Facility November 14, 2018 $ 1,000 November 13, 2023 $ — $ 1,000 $ — $ 1,000 |
Principal Payments Due on Long-term Borrowings | The repayment schedule for the Company’s borrowings is as follows: Year Ending 2012 Senior Notes due 2022 2013 Senior Notes due 2024 2014 Senior Notes (30-year) due 2044 2015 Senior Notes due 2027 2017 Senior Notes due 2021 2017 Senior Notes due 2023 2017 Senior Notes due 2028 2018 Senior Notes due 2021 2018 Senior Notes due 2029 2018 Senior Notes due 2048 2019 Senior Notes due 2030 Total 2020 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2021 — — — — 500 — — 300 — — — 800 2022 500 — — — — — — — — — — 500 2023 — — — — — 500 — — — — — 500 2024 — 500 — — — — — — — — — 500 Thereafter — — 600 561 — — 500 — 400 400 842 3,303 Total 500 500 600 561 500 500 500 300 400 400 842 5,603 |
Summary of Components of Interest as Presented in Consolidated Statements of Operations | The following table summarizes the components of interest as presented in the consolidated statements of operations: Year Ended December 31, 2019 2018 2017 Income $ 17 $ 15 $ 16 Expense on borrowings (176) (197) (190) Expense on UTPs and other tax related liabilities (28) (15) (16) Net periodic pension costs—interest component (1) (22) (19) (20) Capitalized 1 1 1 Total $ (208) $ (215) $ (209) Interest paid (2) $ 167 $ 183 $ 158 (1) The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in non-operating (expense) income, net. The service cost component continues to be reported as an operating expense. (2) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 7. |
Fair Value and Carrying Value of Long-term Debt | The fair value and carrying value of the Company’s debt as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Carrying Amount Estimated Fair 5.50% 2010 Senior Notes, due 2020 $ — $ — $ 494 $ 518 4.50% 2012 Senior Notes, due 2022 507 531 499 514 4.875% 2013 Senior Notes, due 2024 497 551 497 522 2.75% 2014 Senior Notes (5-Year), due 2019 — — 450 450 5.25% 2014 Senior Notes (30-Year), due 2044 599 757 598 638 1.75% 2015 Senior Notes, due 2027 558 604 569 585 2.75% 2017 Senior Notes, due 2021 508 507 501 490 2.625% 2017 Senior Notes, due 2023 504 507 496 477 3.25% 2017 Senior Notes, due 2028 493 523 491 473 3.25% 2018 Senior Notes, due 2021 299 306 298 299 4.25% 2018 Senior Notes, due 2029 394 453 394 407 4.875% 2018 Senior Notes, due 2048 389 492 389 410 0.950% 2019 Senior Notes, due 2030 833 847 — — Total $ 5,581 $ 6,078 $ 5,676 $ 5,783 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Share Repurchase Programs | The table below summarizes the Company’s remaining authority under its share repurchase program as of December 31, 2019: Date Authorized Amount Authorized Remaining Authority October 22, 2018 $ 1,000 $ 334 December 16, 2019 $ 1,000 1,000 Total Remaining Authority $ 1,334 |
Dividends Paid | The Company’s cash dividends were: Dividends Per Share Year ended December 31, 2019 2018 2017 Declared Paid Declared Paid Declared Paid First quarter $ 0.50 $ 0.50 $ 0.44 $ 0.44 $ — $ 0.38 Second quarter 0.50 0.50 0.44 0.44 0.38 0.38 Third quarter 0.50 0.50 0.44 0.44 0.38 0.38 Fourth quarter 0.50 0.50 0.44 0.44 0.38 0.38 Total $ 2.00 $ 2.00 $ 1.76 $ 1.76 $ 1.14 $ 1.52 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Cost | The following table presents the components of the Company’s lease cost: Year Ended Operating lease cost $ 97 Sublease income (2) Variable lease cost 17 Total lease cost $ 112 |
Schedule of Operating Leases Information | The following tables present other information related to the Company’s operating leases: Year Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 106 Right-of-use assets obtained in exchange for new operating lease liabilities $ 41 December 31, 2019 Weighted-average remaining lease term 6.8 years Weighted-average discount rate applied to operating leases 3.6 % |
Lessee, Operating Lease, Liability, Maturity | The following table presents a maturity analysis of the future minimum lease payments included within the Company’s operating lease liabilities at December 31, 2019: Year Ending December 31, Operating Leases 2020 $ 107 2021 103 2022 91 2023 85 2024 79 Thereafter 183 Total lease payments (undiscounted) 648 Less: Interest 74 Present value of lease liabilities: $ 574 Lease liabilities - current $ 89 Lease liabilities - noncurrent $ 485 |
Operating Leases, Future Minimum Payment | The minimum rent for operating leases at December 31, 2018 is as follows: Year Ending December 31, Operating Leases 2019 $ 106 2020 102 2021 96 2022 84 2023 81 Thereafter 247 Total minimum lease payments $ 716 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | The table below shows revenue, Adjusted Operating Income and operating income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Refer to Note 3 for further details on the components of the Company’s revenue. Year Ended December 31, 2019 2018 MIS MA Eliminations Consolidated MIS MA Eliminations Consolidated Revenue $ 3,009 $ 1,963 $ (143) $ 4,829 $ 2,836 $ 1,743 $ (136) $ 4,443 Total Expense 1,376 1,598 (143) 2,831 1,276 1,435 (136) 2,575 Operating income 1,633 365 — 1,998 1,560 308 — 1,868 Add: Restructuring 31 29 — 60 32 17 — 49 Depreciation and amortization 71 129 — 200 65 127 — 192 Acquisition-Related Expenses — 3 — 3 — 8 — 8 Loss pursuant to the divestiture of MAKS — 14 — 14 — — — — Captive insurance company settlement 10 6 — 16 — — — — Adjusted Operating Income $ 1,745 $ 546 $ — $ 2,291 $ 1,657 $ 460 $ — $ 2,117 Year Ended December 31, 2017 MIS (1) MA (1) Eliminations Consolidated (1) Revenue $ 2,886 $ 1,446 $ (128) $ 4,204 Total Expense 1,314 1,197 (128) 2,383 Operating Income 1,572 249 — 1,821 Add: Depreciation and amortization 74 84 — 158 Acquisition-Related Expenses — 23 — 23 Adjusted Operating income $ 1,646 $ 356 $ — $ 2,002 (1) The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in non-operating (expense) income, net. The service cost component continues to be reported as an operating expense. Segment results for 2017 have been restated to reflect this reclassification. Accordingly, operating and SG&A expenses for MIS and MA were reduced by $8 million and $4 million, respectively, for the year ended December 31, 2017. |
Company's Reportable Segment Revenues Disaggregated by Segment and Geographic Region | CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA Year Ended December 31, 2019 2018 2017 Revenue: U.S. $ 2,544 $ 2,330 $ 2,348 Non-U.S.: EMEA 1,446 1,377 1,132 Asia-Pacific 551 493 471 Americas 288 243 253 Total Non-U.S. 2,285 2,113 1,856 Total $ 4,829 $ 4,443 $ 4,204 Long-lived assets at December 31: U.S. $ 1,290 $ 982 $ 673 Non-U.S. 4,678 4,685 5,037 Total $ 5,968 $ 5,667 $ 5,710 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Summary of Activity for Valuation Allowances | Below is a summary of activity: Year Ended December 31, Balance at Beginning of the Year Charged to costs and expenses Deductions (1) Balance at End of the Year 2019 Accounts receivable allowance $ (43) $ (11) $ 11 $ (43) Deferred tax assets—valuation allowance $ (5) $ (4) $ — $ (9) 2018 Accounts receivable allowance $ (37) $ (18) $ 12 $ (43) Deferred tax assets—valuation allowance $ (6) $ — $ 1 $ (5) 2017 Accounts receivable allowance $ (26) $ (20) $ 9 $ (37) Deferred tax assets—valuation allowance $ (3) $ (3) $ — $ (6) (1) Reflects write-off of uncollectible accounts receivable or expiration of foreign net operating tax losses. |
OTHER NON-OPERATING (EXPENSE)_2
OTHER NON-OPERATING (EXPENSE) INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Components of Other Non-Operating Income | The following table summarizes the components of other non-operating (expense) income, net as presented in the consolidated statements of operations: Year Ended December 31, 2019 2018 2017 FX loss $ (18) $ (11) $ (17) Net periodic pension costs—other components (1) 18 10 8 Income from investments in non-consolidated affiliates 13 14 13 Other 7 6 — Total $ 20 $ 19 $ 4 (1) The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in non-operating (expense) income, net. The service cost component continues to be reported as an operating expense. |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Three Months Ended (amounts in millions, except EPS) March 31 June 30 September 30 December 31 2019 Revenue $ 1,142 $ 1,214 $ 1,240 $ 1,233 Operating income $ 462 $ 483 $ 549 $ 504 Net income attributable to Moody’s $ 373 $ 310 $ 380 $ 359 EPS: Basic $ 1.96 $ 1.64 $ 2.01 $ 1.91 Diluted $ 1.93 $ 1.62 $ 1.99 $ 1.88 2018 Revenue $ 1,127 $ 1,175 $ 1,081 $ 1,060 Operating income $ 491 $ 534 $ 467 $ 376 Net income attributable to Moody’s $ 373 $ 376 $ 310 $ 251 EPS: Basic $ 1.95 $ 1.96 $ 1.62 $ 1.31 Diluted $ 1.92 $ 1.94 $ 1.59 $ 1.29 |
Description of Business and B_3
Description of Business and Basis of Presentation - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Number of reportable segments | segment | 2 | ||||||||||||
Operating lease right-of-use assets | $ 456 | $ 456 | |||||||||||
Operating lease, liability | 574 | 574 | |||||||||||
Deferred tax assets, net | 229 | $ 197 | 229 | $ 197 | |||||||||
Deferred tax liabilities, net | 357 | 352 | 357 | 352 | |||||||||
Operating income | 504 | $ 549 | $ 483 | $ 462 | 376 | $ 467 | $ 534 | $ 491 | 1,998 | 1,868 | $ 1,821 | ||
Net income attributable to Moody’s | $ 359 | $ 380 | $ 310 | $ 373 | $ 251 | $ 310 | $ 376 | $ 373 | $ 1,422 | 1,310 | $ 1,001 | ||
Accounting Standards Update 2016-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating lease right-of-use assets | $ 518 | ||||||||||||
Operating lease, liability | 622 | ||||||||||||
Deferred tax assets, net | 150 | ||||||||||||
Deferred tax liabilities, net | 125 | ||||||||||||
Accounting Standards Update 2018-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Effect of adoption adjustment reduction to retained earnings | 0 | ||||||||||||
Accounting Standards Update 2014-09 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Effect of adoption adjustment reduction to retained earnings | $ 156 | ||||||||||||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Effect of adoption adjustment reduction to retained earnings | (20) | ||||||||||||
Retained Earnings | Accounting Standards Update 2018-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Effect of adoption adjustment reduction to retained earnings | $ 20 | ||||||||||||
Retained Earnings | Accounting Standards Update 2014-09 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Effect of adoption adjustment reduction to retained earnings | $ 156 | ||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Revenues | 13 | ||||||||||||
Operating income | 24 | ||||||||||||
Net income attributable to Moody’s | $ 19 |
Description of Business and B_4
Description of Business and Basis of Presentation - Adjustment to Retained Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | $ 1,233 | $ 1,240 | $ 1,214 | $ 1,142 | $ 1,060 | $ 1,081 | $ 1,175 | $ 1,127 | $ 4,829 | $ 4,443 | $ 4,204 |
MIS | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | 2,875 | 2,712 | 2,774 | ||||||||
MIS | Corporate finance (CFG) | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | 1,497 | 1,379 | 1,448 | ||||||||
MIS | Corporate finance (CFG) | As previously reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | 1,334 | 1,393 | |||||||||
MIS | Corporate finance (CFG) | Reclassification | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | 45 | 55 | |||||||||
MIS | Structured finance (SFG) | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | 427 | 481 | 440 | ||||||||
MIS | Structured finance (SFG) | As previously reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | 526 | 495 | |||||||||
MIS | Structured finance (SFG) | Reclassification | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | (45) | (55) | |||||||||
MA | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | 1,954 | 1,731 | 1,430 | ||||||||
MA | Research, data and analytics (RD&A) | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | 1,273 | 1,121 | 826 | ||||||||
MA | Research, data and analytics (RD&A) | As previously reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | 1,134 | 833 | |||||||||
MA | Research, data and analytics (RD&A) | Reclassification | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | (13) | (7) | |||||||||
MA | Enterprise risk solutions (ERS) | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | $ 522 | 451 | 455 | ||||||||
MA | Enterprise risk solutions (ERS) | As previously reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | 438 | 448 | |||||||||
MA | Enterprise risk solutions (ERS) | Reclassification | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenue | $ 13 | $ 7 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)reportingUnit | Dec. 31, 2018USD ($) | |
Capitalized Contract Cost [Line Items] | ||
Number of reporting units | reportingUnit | 7 | |
MIS | ||
Capitalized Contract Cost [Line Items] | ||
Number of reporting units | reportingUnit | 2 | |
MA | ||
Capitalized Contract Cost [Line Items] | ||
Number of reporting units | reportingUnit | 5 | |
Deferred cost balance | $ 159 | $ 110 |
MA | Selling, General and Administrative Expenses | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract cost, amortization | 53 | 38 |
Capitalization of Work-In-Process for In-Progress Ratings | MIS | ||
Capitalized Contract Cost [Line Items] | ||
Deferred cost balance | 11 | 11 |
Capitalization of Work-In-Process for In-Progress Ratings | MIS | Operating Expense | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract cost, amortization | 42 | 40 |
Royalty Cost | MA | ||
Capitalized Contract Cost [Line Items] | ||
Deferred cost balance | 40 | 35 |
Royalty Cost | MA | Selling, General and Administrative Expenses | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract cost, amortization | $ 56 | $ 54 |
Subscription and Maintenance Contracts | MA | Minimum | ||
Capitalized Contract Cost [Line Items] | ||
Revenue, contractual coverage period (years) | 3 years | |
General customer contract payment condition (days) | 30 days | |
Subscription and Maintenance Contracts | MA | Maximum | ||
Capitalized Contract Cost [Line Items] | ||
Revenue, contractual coverage period (years) | 5 years | |
General customer contract payment condition (days) | 60 days |
Revenues - Revenue by Category
Revenues - Revenue by Category (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,233 | $ 1,240 | $ 1,214 | $ 1,142 | $ 1,060 | $ 1,081 | $ 1,175 | $ 1,127 | $ 4,829 | $ 4,443 | $ 4,204 |
Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | (143) | (136) | (128) | ||||||||
MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,875 | 2,712 | 2,774 | ||||||||
MIS | Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 134 | 124 | 112 | ||||||||
MIS | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 3,009 | 2,836 | 2,886 | ||||||||
MIS | Corporate finance (CFG) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,497 | 1,379 | 1,448 | ||||||||
MIS | Corporate finance (CFG) | Investment-grade | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 379 | 271 | 335 | ||||||||
MIS | Corporate finance (CFG) | High-yield | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 258 | 175 | 254 | ||||||||
MIS | Corporate finance (CFG) | Bank loans | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 313 | 379 | 351 | ||||||||
MIS | Corporate finance (CFG) | Other accounts | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 547 | 554 | 508 | ||||||||
MIS | Structured finance (SFG) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 427 | 481 | 440 | ||||||||
MIS | Structured finance (SFG) | Asset-backed securities | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 99 | 107 | 97 | ||||||||
MIS | Structured finance (SFG) | RMBS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 95 | 98 | 89 | ||||||||
MIS | Structured finance (SFG) | CMBS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 81 | 78 | 87 | ||||||||
MIS | Structured finance (SFG) | Structured credit | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 148 | 196 | 165 | ||||||||
MIS | Structured finance (SFG) | Other accounts | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 4 | 2 | 2 | ||||||||
MIS | Financial institutions (FIG) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 476 | 442 | 436 | ||||||||
MIS | Financial institutions (FIG) | Banking | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 320 | 290 | 300 | ||||||||
MIS | Financial institutions (FIG) | Insurance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 119 | 114 | 102 | ||||||||
MIS | Financial institutions (FIG) | Managed investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 25 | 25 | 22 | ||||||||
MIS | Financial institutions (FIG) | Other accounts | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 12 | 13 | 12 | ||||||||
MIS | Public, project and infrastructure finance (PPIF) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 446 | 391 | 431 | ||||||||
MIS | Public, project and infrastructure finance (PPIF) | Public finance / sovereign | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 222 | 185 | 218 | ||||||||
MIS | Public, project and infrastructure finance (PPIF) | Project and infrastructure | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 224 | 206 | 213 | ||||||||
MIS | Rating Revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,846 | 2,693 | 2,755 | ||||||||
MIS | MIS Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 29 | 19 | 19 | ||||||||
MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,954 | 1,731 | 1,430 | ||||||||
MA | Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 9 | 12 | 16 | ||||||||
MA | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,963 | 1,743 | 1,446 | ||||||||
MA | Research, data and analytics (RD&A) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,273 | 1,121 | 826 | ||||||||
MA | Enterprise risk solutions (ERS) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 522 | 451 | 455 | ||||||||
MA | Professional services (PS) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 159 | $ 159 | $ 149 |
Revenues - Revenues disaggregat
Revenues - Revenues disaggregated by Line of Business and Geographical Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,233 | $ 1,240 | $ 1,214 | $ 1,142 | $ 1,060 | $ 1,081 | $ 1,175 | $ 1,127 | $ 4,829 | $ 4,443 | $ 4,204 |
U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,544 | 2,330 | 2,348 | ||||||||
Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,285 | 2,113 | 1,856 | ||||||||
MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,875 | 2,712 | 2,774 | ||||||||
MIS | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,721 | 1,619 | 1,702 | ||||||||
MIS | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,154 | 1,093 | 1,072 | ||||||||
MIS | Corporate finance (CFG) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,497 | 1,379 | 1,448 | ||||||||
MIS | Corporate finance (CFG) | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 968 | 894 | 961 | ||||||||
MIS | Corporate finance (CFG) | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 529 | 485 | 487 | ||||||||
MIS | Structured finance (SFG) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 427 | 481 | 440 | ||||||||
MIS | Structured finance (SFG) | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 270 | 301 | 288 | ||||||||
MIS | Structured finance (SFG) | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 157 | 180 | 152 | ||||||||
MIS | Financial institutions (FIG) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 476 | 442 | 436 | ||||||||
MIS | Financial institutions (FIG) | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 200 | 194 | 186 | ||||||||
MIS | Financial institutions (FIG) | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 276 | 248 | 250 | ||||||||
MIS | Public, project and infrastructure finance (PPIF) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 446 | 391 | 431 | ||||||||
MIS | Public, project and infrastructure finance (PPIF) | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 282 | 229 | 266 | ||||||||
MIS | Public, project and infrastructure finance (PPIF) | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 164 | 162 | 165 | ||||||||
MIS | Rating Revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,846 | 2,693 | 2,755 | ||||||||
MIS | Rating Revenue | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,720 | 1,618 | 1,701 | ||||||||
MIS | Rating Revenue | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,126 | 1,075 | 1,054 | ||||||||
MIS | MIS Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 29 | 19 | 19 | ||||||||
MIS | MIS Other | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1 | 1 | 1 | ||||||||
MIS | MIS Other | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 28 | 18 | 18 | ||||||||
MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,954 | 1,731 | 1,430 | ||||||||
MA | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 823 | 711 | 646 | ||||||||
MA | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,131 | 1,020 | 784 | ||||||||
MA | Research, data and analytics (RD&A) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,273 | 1,121 | 826 | ||||||||
MA | Research, data and analytics (RD&A) | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 558 | 481 | 424 | ||||||||
MA | Research, data and analytics (RD&A) | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 715 | 640 | 402 | ||||||||
MA | Enterprise risk solutions (ERS) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 522 | 451 | 455 | ||||||||
MA | Enterprise risk solutions (ERS) | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 201 | 170 | 167 | ||||||||
MA | Enterprise risk solutions (ERS) | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 321 | 281 | 288 | ||||||||
MA | Professional Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 159 | 159 | 149 | ||||||||
MA | Professional Services | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 64 | 60 | 55 | ||||||||
MA | Professional Services | Non-U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 95 | $ 99 | $ 94 |
Revenues - Consolidated Revenue
Revenues - Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,233 | $ 1,240 | $ 1,214 | $ 1,142 | $ 1,060 | $ 1,081 | $ 1,175 | $ 1,127 | $ 4,829 | $ 4,443 | $ 4,204 |
MIS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,875 | 2,712 | 2,774 | ||||||||
MA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,954 | 1,731 | 1,430 | ||||||||
U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,544 | 2,330 | 2,348 | ||||||||
U.S. | MIS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,721 | 1,619 | 1,702 | ||||||||
U.S. | MA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 823 | 711 | 646 | ||||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,446 | 1,377 | 1,132 | ||||||||
EMEA | MIS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 686 | 669 | 638 | ||||||||
EMEA | MA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 760 | 708 | 494 | ||||||||
Asia-Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 551 | 493 | 471 | ||||||||
Asia-Pacific | MIS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 320 | 300 | 292 | ||||||||
Asia-Pacific | MA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 231 | 193 | 179 | ||||||||
Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 288 | 243 | 253 | ||||||||
Americas | MIS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 148 | 124 | 142 | ||||||||
Americas | MA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 140 | 119 | 111 | ||||||||
Non-U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,285 | 2,113 | 1,856 | ||||||||
Non-U.S. | MIS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,154 | 1,093 | 1,072 | ||||||||
Non-U.S. | MA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,131 | $ 1,020 | $ 784 |
Revenues - Transaction and Rela
Revenues - Transaction and Relationship Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,233 | $ 1,240 | $ 1,214 | $ 1,142 | $ 1,060 | $ 1,081 | $ 1,175 | $ 1,127 | $ 4,829 | $ 4,443 | $ 4,204 |
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,875 | $ 2,712 | $ 2,774 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,954 | $ 1,731 | $ 1,430 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
Corporate finance (CFG) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,497 | $ 1,379 | $ 1,448 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
Structured finance (SFG) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 427 | $ 481 | $ 440 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
Financial institutions (FIG) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 476 | $ 442 | $ 436 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
Public, project and infrastructure finance (PPIF) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 446 | $ 391 | $ 431 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
MIS Other | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 29 | $ 19 | $ 19 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
Research, data and analytics (RD&A) | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,273 | $ 1,121 | $ 826 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
Enterprise risk solutions (ERS) | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 522 | $ 451 | $ 455 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
Professional Services | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 159 | $ 159 | $ 149 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
Transaction Revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,102 | $ 1,962 | $ 2,119 | ||||||||
Percentage of Revenues | 44.00% | 44.00% | 50.00% | ||||||||
Transaction Revenue | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,809 | $ 1,686 | $ 1,808 | ||||||||
Percentage of Revenues | 63.00% | 62.00% | 65.00% | ||||||||
Transaction Revenue | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 293 | $ 276 | $ 311 | ||||||||
Percentage of Revenues | 15.00% | 16.00% | 22.00% | ||||||||
Transaction Revenue | Corporate finance (CFG) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,057 | $ 949 | $ 1,053 | ||||||||
Percentage of Revenues | 71.00% | 69.00% | 73.00% | ||||||||
Transaction Revenue | Structured finance (SFG) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 246 | $ 310 | $ 279 | ||||||||
Percentage of Revenues | 58.00% | 64.00% | 63.00% | ||||||||
Transaction Revenue | Financial institutions (FIG) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 212 | $ 187 | $ 195 | ||||||||
Percentage of Revenues | 45.00% | 42.00% | 45.00% | ||||||||
Transaction Revenue | Public, project and infrastructure finance (PPIF) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 292 | $ 238 | $ 278 | ||||||||
Percentage of Revenues | 65.00% | 61.00% | 65.00% | ||||||||
Transaction Revenue | MIS Other | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2 | $ 2 | $ 3 | ||||||||
Percentage of Revenues | 7.00% | 11.00% | 16.00% | ||||||||
Transaction Revenue | Research, data and analytics (RD&A) | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 16 | $ 18 | $ 25 | ||||||||
Percentage of Revenues | 1.00% | 2.00% | 3.00% | ||||||||
Transaction Revenue | Enterprise risk solutions (ERS) | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 118 | $ 99 | $ 137 | ||||||||
Percentage of Revenues | 23.00% | 22.00% | 30.00% | ||||||||
Transaction Revenue | Professional Services | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 159 | $ 159 | $ 149 | ||||||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
Relationship Revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,727 | $ 2,481 | $ 2,085 | ||||||||
Percentage of Revenues | 56.00% | 56.00% | 50.00% | ||||||||
Relationship Revenue | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,066 | $ 1,026 | $ 966 | ||||||||
Percentage of Revenues | 37.00% | 38.00% | 35.00% | ||||||||
Relationship Revenue | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,661 | $ 1,455 | $ 1,119 | ||||||||
Percentage of Revenues | 85.00% | 84.00% | 78.00% | ||||||||
Relationship Revenue | Corporate finance (CFG) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 440 | $ 430 | $ 395 | ||||||||
Percentage of Revenues | 29.00% | 31.00% | 27.00% | ||||||||
Relationship Revenue | Structured finance (SFG) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 181 | $ 171 | $ 161 | ||||||||
Percentage of Revenues | 42.00% | 36.00% | 37.00% | ||||||||
Relationship Revenue | Financial institutions (FIG) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 264 | $ 255 | $ 241 | ||||||||
Percentage of Revenues | 55.00% | 58.00% | 55.00% | ||||||||
Relationship Revenue | Public, project and infrastructure finance (PPIF) | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 154 | $ 153 | $ 153 | ||||||||
Percentage of Revenues | 35.00% | 39.00% | 35.00% | ||||||||
Relationship Revenue | MIS Other | MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 27 | $ 17 | $ 16 | ||||||||
Percentage of Revenues | 93.00% | 89.00% | 84.00% | ||||||||
Relationship Revenue | Research, data and analytics (RD&A) | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,257 | $ 1,103 | $ 801 | ||||||||
Percentage of Revenues | 99.00% | 98.00% | 97.00% | ||||||||
Relationship Revenue | Enterprise risk solutions (ERS) | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 404 | $ 352 | $ 318 | ||||||||
Percentage of Revenues | 77.00% | 78.00% | 70.00% | ||||||||
Relationship Revenue | Professional Services | MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 0 | $ 0 | $ 0 | ||||||||
Percentage of Revenues | 0.00% | 0.00% | 0.00% |
Revenues - Revenue Recognition
Revenues - Revenue Recognition Timing (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized | $ 1,233 | $ 1,240 | $ 1,214 | $ 1,142 | $ 1,060 | $ 1,081 | $ 1,175 | $ 1,127 | $ 4,829 | $ 4,443 | $ 4,204 |
At Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized | 1,941 | 1,785 | |||||||||
Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized | 2,888 | 2,658 | |||||||||
MIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized | 2,875 | 2,712 | 2,774 | ||||||||
MIS | At Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized | 1,809 | 1,686 | |||||||||
MIS | Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized | 1,066 | 1,026 | |||||||||
MA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized | 1,954 | 1,731 | $ 1,430 | ||||||||
MA | At Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized | 132 | 99 | |||||||||
MA | Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized | $ 1,822 | $ 1,632 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled Receivables | $ 346 | $ 312 |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled Receivables | $ 53 | $ 60 |
Revenues - Schedule of Changes
Revenues - Schedule of Changes in the Deferred Revenue Balances (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Contract with Customer, Liability [Abstract] | ||
Beginning Balance | $ 1,075 | $ 946 |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (923) | (808) |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 991 | 946 |
Increases due to acquisitions during the period | 9 | 16 |
Effect of exchange rate changes | 10 | (25) |
Total changes in deferred revenue | 87 | 129 |
Ending Balance | 1,162 | 1,075 |
Deferred revenue - current | 1,050 | 953 |
Deferred revenue - noncurrent | 112 | 122 |
MIS | ||
Change in Contract with Customer, Liability [Abstract] | ||
Beginning Balance | 325 | 334 |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (209) | (218) |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 202 | 216 |
Increases due to acquisitions during the period | 3 | 0 |
Effect of exchange rate changes | 1 | (7) |
Total changes in deferred revenue | (3) | (9) |
Ending Balance | 322 | 325 |
Deferred revenue - current | 214 | 207 |
Deferred revenue - noncurrent | 108 | 118 |
MA | ||
Change in Contract with Customer, Liability [Abstract] | ||
Beginning Balance | 750 | 612 |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (714) | (590) |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 789 | 730 |
Increases due to acquisitions during the period | 6 | 16 |
Effect of exchange rate changes | 9 | (18) |
Total changes in deferred revenue | 90 | 138 |
Ending Balance | 840 | 750 |
Deferred revenue - current | 836 | 746 |
Deferred revenue - noncurrent | $ 4 | $ 4 |
Revenues - Expected Recognition
Revenues - Expected Recognition Period for Remaining Performance Obligations (Detail) $ in Millions | Dec. 31, 2019USD ($) |
MIS | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 140 |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 20.00% |
Revenue, remaining performance obligation, period | 1 year |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 50.00% |
Revenue, remaining performance obligation, period | 4 years |
MA | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1,700 |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 70.00% |
Revenue, remaining performance obligation, period | 1 year |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 20.00% |
Revenue, remaining performance obligation, period | 1 year |
Reconciliation of Weighted Av_3
Reconciliation of Weighted Average Shares Outstanding - Reconciliation of Basic to Diluted Shares Outstanding (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Basic (in shares) | 189.3 | 191.6 | 191.1 |
Dilutive effect of shares issuable under stock-based compensation plans (in shares) | 2.3 | 2.8 | 3.1 |
Diluted (in shares) | 191.6 | 194.4 | 194.2 |
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above (in shares) | 0.2 | 0.4 | 0.6 |
Accelerated Share Repurchase _2
Accelerated Share Repurchase Program - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions | Apr. 26, 2019 | Feb. 20, 2019 | Dec. 31, 2019 |
Accelerated Share Repurchases [Line Items] | |||
Accelerated share repurchases, final price paid per share (in usd per share) | $ 180.33 | ||
February 20, 2019 | |||
Accelerated Share Repurchases [Line Items] | |||
Accelerated share repurchases payment | $ 500,000,000 | ||
February 20, 2019 | Accelerated Share Repurchases | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury stock, shares, acquired (in shares) | 2.2 | ||
April 26, 2019 | Accelerated Share Repurchases | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury stock, shares, acquired (in shares) | 0.6 | 2.8 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and Cash Equivalents [Line Items] | ||
Fair Value | $ 3 | $ 33 |
Cash and cash equivalents | 1,832 | 1,685 |
Short-term investments | 98 | 133 |
Money market mutual funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 15 | |
Gross Unrealized Gains | 0 | |
Fair Value | 15 | |
Cash and cash equivalents | 15 | |
Short-term investments | 0 | |
Other assets | 0 | |
Certificates of deposit and money market deposit accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 971 | 1,022 |
Gross Unrealized Gains | 0 | 0 |
Fair Value | 971 | 1,022 |
Cash and cash equivalents | 866 | 904 |
Short-term investments | 95 | 116 |
Other assets | 10 | 2 |
Open ended mutual funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 3 | 29 |
Gross Unrealized Gains | 0 | 4 |
Fair Value | 3 | 33 |
Cash and cash equivalents | 0 | 0 |
Short-term investments | 3 | 17 |
Other assets | $ 0 | $ 16 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments (Footnote) (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Investments | Certificates of deposit and money market deposit accounts | Minimum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 1 month | 1 month |
Short-term Investments | Certificates of deposit and money market deposit accounts | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 12 months | 12 months |
Other assets | Certificates of deposit and money market deposit accounts | Minimum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 13 months | 14 months |
Other assets | Certificates of deposit and money market deposit accounts | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 18 months | 36 months |
Cash and cash equivalent | Open ended mutual funds | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 90 days |
Derivative Instruments And He_3
Derivative Instruments And Hedging Activities - Schedule of Interest Rate Swap (Details) - Fair Value Hedging - Interest Rate Swap - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Notional Amount | $ 1,080 | $ 1,330 |
5.50% 2010 Senior Notes, due 2020 | ||
Derivative [Line Items] | ||
Nature of Swap | Pay Floating/Receive Fixed | |
Notional Amount | $ 0 | 500 |
Floating Interest Rate | 3-month LIBOR | |
4.50% 2012 Senior Notes, due 2022 | ||
Derivative [Line Items] | ||
Nature of Swap | Pay Floating/Receive Fixed | |
Notional Amount | $ 330 | 330 |
Floating Interest Rate | 3-month LIBOR | |
2017 Senior Notes due 2021 | ||
Derivative [Line Items] | ||
Nature of Swap | Pay Floating/Receive Fixed | |
Notional Amount | $ 500 | 500 |
Floating Interest Rate | 3-month LIBOR | |
2017 Senior Notes due 2023 | ||
Derivative [Line Items] | ||
Nature of Swap | Pay Floating/Receive Fixed | |
Notional Amount | $ 250 | $ 0 |
Floating Interest Rate | 3-month LIBOR |
Derivative Instruments And He_4
Derivative Instruments And Hedging Activities - Summary of Net Gain (Loss) on Interest Rate Swaps Designated in Fair Value Hedge (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest expense, net | $ (208) | $ (215) | $ (209) |
Designated as Hedging Instrument | Interest Rate Swap | Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value changes on interest rate swaps | 25 | 2 | (9) |
Fair value changes on hedged debt | (25) | (2) | 9 |
Designated as Hedging Instrument | Interest Rate Swap | Interest Expense | Fair Value hedge Net Interest Settlements and Accruals | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net interest settlements and accruals on interest rate swaps | $ 3 | $ (2) | $ 7 |
Derivative Instruments And He_5
Derivative Instruments And Hedging Activities - Additional Information (Detail) £ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Aug. 10, 2017USD ($) | Aug. 10, 2017EUR (€) | Aug. 10, 2017GBP (£) |
2021 | Designated as Hedging Instrument | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | € 688,000,000 | ||||||
2022 | Designated as Hedging Instrument | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | 438,000,000 | ||||||
2023 | Designated as Hedging Instrument | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | 442,000,000 | ||||||
2024 | Designated as Hedging Instrument | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | 442,000,000 | ||||||
Currency Paid | Net Investment Hedging | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | 2,010,000,000 | € 710,000,000 | |||||
Currency Received | Net Investment Hedging | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ | $ 2,300,000,000 | $ 830,000,000 | |||||
2018 Senior Notes, due 2029 | Cash Flow Hedging | Designated as Hedging Instrument | Treasury Lock | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ | $ 250,000,000 | ||||||
2015 Senior Notes | Net Investment Hedging | Designated as Hedging Instrument | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | 500,000,000 | ||||||
0.950% 2019 Senior Note, due 2030 | Net Investment Hedging | Designated as Hedging Instrument | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | € 750,000,000 | ||||||
Bureau Van Dijk | Call Option | Foreign Exchange Option | |||||||
Derivative [Line Items] | |||||||
Notional Amount | € 2,700,000,000 | ||||||
Sell | Bureau Van Dijk | Currency Paid | Foreign Currency Forward Contracts to Sell US Dollars for EUR | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ | $ 2,800,000,000 | ||||||
Sell | Bureau Van Dijk | Currency Paid | Foreign Currency Forward Contracts To Sell US Dollars for GBP | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ | $ 41,000,000 | ||||||
Buy | Bureau Van Dijk | Currency Received | Foreign Currency Forward Contracts to Sell US Dollars for EUR | |||||||
Derivative [Line Items] | |||||||
Notional Amount | € 2,400,000,000 | ||||||
Buy | Bureau Van Dijk | Currency Received | Foreign Currency Forward Contracts To Sell US Dollars for GBP | |||||||
Derivative [Line Items] | |||||||
Notional Amount | £ | £ 31 |
Derivative Instruments And He_6
Derivative Instruments And Hedging Activities - Summary of Notional Amounts of Outstanding Cross Currency Swap (Detail) - Cross currency swaps - Net Investment Hedging € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | |
1.43% | ||||
Derivative [Line Items] | ||||
Nature of Swap | Pay Fixed/Receive Fixed | |||
3-month U.S. LIBOR | ||||
Derivative [Line Items] | ||||
Nature of Swap | Pay Floating/Receive Floating | Pay Floating/Receive Floating | ||
Currency Paid | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 2,010 | € 710 | ||
Currency Paid | 1.43% | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 1,079 | |||
Weighted Average Interest Rate | 1.43% | 1.43% | ||
Currency Paid | 3-month EURIBOR | ||||
Derivative [Line Items] | ||||
Notional Amount | € | € 931 | € 710 | ||
Weighted Average Floating Interest Rate | Based on 3-month EURIBOR | Based on 3-month EURIBOR | ||
Currency Received | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 2,300 | $ 830 | ||
Currency Received | 3.96% | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 1,220 | |||
Weighted Average Interest Rate | 3.96% | 3.96% | ||
Currency Received | 3-month U.S. LIBOR | ||||
Derivative [Line Items] | ||||
Notional Amount | $ | $ 1,080 | $ 830 | ||
Weighted Average Floating Interest Rate | Based on 3-month USD LIBOR | Based on 3-month USD LIBOR |
Derivative Instruments And He_7
Derivative Instruments And Hedging Activities - Gains (Losses) Recognized in AOCI and Reclassified from AOCI on Derivatives (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | $ 0 | $ (1) | $ 6 |
Total, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 26 | 34 | (30) |
Net Investment Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 2 | 0 | 0 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 0 | 0 | 7 |
Total, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 2 | 0 | 7 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 52 | 11 | 0 |
Net Investment Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Investment Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 26 | 34 | (36) |
Net Investment Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 2 | 0 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 52 | 11 | 0 |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 0 | 0 | 6 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 0 | 0 | 7 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
FX forwards | Net Investment Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Investment Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 4 | 0 | 1 |
Net Investment Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 2 | 0 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Cross currency swaps | Net Investment Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Investment Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 29 | 12 | 0 |
Net Investment Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 0 | 0 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 52 | 11 | 0 |
Cross currency swaps | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 0 | 2 | 6 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 0 | 0 | 8 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Long-term debt | Net Investment Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Investment Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | (7) | 22 | (37) |
Net Investment Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 0 | 0 | 0 |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Interest rate contract | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | 0 | (2) | 0 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | 0 | 0 | (1) |
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | $ 0 | $ 0 | $ 0 |
Derivative Instruments And He_8
Derivative Instruments And Hedging Activities - Gains (Losses) Recognized in AOCI and Reclassified from AOCI on Derivatives (Effective Portion) (Detail) - Accounting Standards Update 2018-02 - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of adoption adjustment reduction to retained earnings | $ 0 | |
Retained Earnings | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of adoption adjustment reduction to retained earnings | 20 | |
Retained Earnings | Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of adoption adjustment reduction to retained earnings | $ 3 | |
Accumulated Other Comprehensive Loss | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of adoption adjustment reduction to retained earnings | $ (20) | |
Accumulated Other Comprehensive Loss | Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of adoption adjustment reduction to retained earnings | $ 3 |
Derivative Instruments And He_9
Derivative Instruments And Hedging Activities - Cumulative Amount of Unrecognized Hedge Losses Recorded in AOCI (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Accumulated other comprehensive loss | $ (439) | $ (426) |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Accumulated other comprehensive loss | 54 | 33 |
Net Investment Hedging | ||
Derivative [Line Items] | ||
Accumulated other comprehensive loss | 54 | 33 |
Net Investment Hedging | Cross currency swaps | ||
Derivative [Line Items] | ||
Accumulated other comprehensive loss | 41 | 12 |
Net Investment Hedging | FX forwards | ||
Derivative [Line Items] | ||
Accumulated other comprehensive loss | 26 | 24 |
Net Investment Hedging | Long-term debt | ||
Derivative [Line Items] | ||
Accumulated other comprehensive loss | (13) | (3) |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Accumulated other comprehensive loss | 0 | 0 |
Cash Flow Hedging | Cross currency swaps | ||
Derivative [Line Items] | ||
Accumulated other comprehensive loss | 2 | 2 |
Cash Flow Hedging | Interest rate contract | ||
Derivative [Line Items] | ||
Accumulated other comprehensive loss | $ (2) | $ (2) |
Derivative Instruments And H_10
Derivative Instruments And Hedging Activities - Summary of Notional Amounts of Outstanding Foreign Exchange Forwards (Detail) - Not Designated as Accounting Hedges € in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2019CAD ($) | Dec. 31, 2019SGD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019JPY (¥) | Dec. 31, 2019GBP (£) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018JPY (¥) | Dec. 31, 2018GBP (£) |
Contracts to sell USD for GBP | |||||||||||
Derivative [Line Items] | |||||||||||
Notional Amount | $ 235 | £ 178 | $ 310 | £ 241 | |||||||
Contracts to sell USD for Japanese Yen | |||||||||||
Derivative [Line Items] | |||||||||||
Notional Amount | 29 | ¥ 3,200 | 14 | ¥ 1,600 | |||||||
Contracts to sell USD for Canadian dollars | |||||||||||
Derivative [Line Items] | |||||||||||
Notional Amount | $ 110 | 83 | $ 130 | 99 | |||||||
Contracts to sell USD for Singapore dollars | |||||||||||
Derivative [Line Items] | |||||||||||
Notional Amount | $ 56 | 41 | |||||||||
Contracts to sell USD for Euros | |||||||||||
Derivative [Line Items] | |||||||||||
Notional Amount | $ 421 | € 378 | $ 213 | € 185 | |||||||
Contracts to sell Euros for GBP | |||||||||||
Derivative [Line Items] | |||||||||||
Notional Amount | € 25 | £ 21 |
Derivative Instruments And H_11
Derivative Instruments And Hedging Activities - Summary of Net Gain (Loss) on Foreign Exchange Forwards Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange forwards amount of gain (loss) recognized in income | $ (11) | $ (52) | $ 133 |
FX collar | Bureau Van Dijk | Purchase Price Hedge Gain | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange forwards amount of gain (loss) recognized in income | 101 | ||
FX forwards | Other non-operating expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange forwards amount of gain (loss) recognized in income | $ (11) | $ (52) | 22 |
FX forwards | Bureau Van Dijk | Purchase Price Hedge Gain | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange forwards amount of gain (loss) recognized in income | $ 10 |
Derivative Instruments And H_12
Derivative Instruments And Hedging Activities - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 92 | $ 28 |
Liabilities | 1,403 | 588 |
Long-term debt | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 1,403 | 572 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 83 | 27 |
Liabilities | 0 | 8 |
Designated as Hedging Instrument | Cross currency swaps | Other assets | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 56 | 19 |
Designated as Hedging Instrument | Cross currency swaps | Other liabilities | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 0 | 3 |
Designated as Hedging Instrument | Interest Rate Swap | Other assets | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 27 | 8 |
Designated as Hedging Instrument | Interest Rate Swap | Other liabilities | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 0 | 5 |
Not Designated as Accounting Hedges | FX forwards | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 9 | 1 |
Not Designated as Accounting Hedges | FX forwards | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ 0 | $ 8 |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 1,131 | $ 1,110 |
Less: accumulated depreciation and amortization | (839) | (790) |
Total property and equipment, net | 292 | 320 |
Office and Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 221 | 242 |
Office and Computer Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 3 years | |
Office and Computer Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 10 years | |
Office Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 51 | 52 |
Office Furniture and Fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 3 years | |
Office Furniture and Fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 10 years | |
Internal-use Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 619 | 574 |
Internal-use Computer Software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 1 year | |
Internal-use Computer Software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 10 years | |
Leasehold Improvements and Building | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, at cost | $ 240 | $ 242 |
Leasehold Improvements and Building | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 1 year | |
Leasehold Improvements and Building | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 21 years |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense related to property and equipment | $ 97 | $ 90 | $ 97 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | Oct. 15, 2018 | Aug. 10, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Amortization expense | $ 103 | $ 102 | $ 61 | |||
Reis Inc | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition interests acquired | 100.00% | |||||
Cash paid for business acquisition | $ 278 | |||||
Acquired cash included in current assets | 24 | |||||
Account receivables gross included in current assets | $ 6 | |||||
Omega Performance | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition interests acquired | 100.00% | |||||
Bureau Van Dijk | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition interests acquired | 100.00% | |||||
Cash paid for business acquisition | $ 3,542 | |||||
Acquired cash included in current assets | 36 | |||||
Account receivables gross included in current assets | 88 | |||||
Acquired receivables, estimated uncollectible | 4 | |||||
Acquired deferred revenue | 154 | |||||
Reduction in revenue included in net income | $ 53 | $ 17 | 36 | |||
Pro forma revenue adjustment for deferred revenue | $ 36 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Detail) - USD ($) $ in Millions | Oct. 15, 2018 | Aug. 10, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 3,722 | $ 3,781 | $ 3,753 | ||
Reis Inc | |||||
Business Acquisition [Line Items] | |||||
Current assets | $ 32 | ||||
Property and equipment | 4 | ||||
Total intangible assets | 104 | ||||
Goodwill | 183 | ||||
Deferred tax assets | 13 | ||||
Deferred revenue | (14) | ||||
Accounts payable and accrued liabilities | (20) | ||||
Deferred tax liabilities | (24) | ||||
Total liabilities | (58) | ||||
Net assets acquired | $ 278 | ||||
Weighted average life of intangible assets acquired (in years) | 12 years | ||||
Reis Inc | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 77 | ||||
Weighted average life of intangible assets acquired (in years) | 14 years | ||||
Reis Inc | Database | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 13 | ||||
Weighted average life of intangible assets acquired (in years) | 5 years | ||||
Reis Inc | Product Technology | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 10 | ||||
Weighted average life of intangible assets acquired (in years) | 7 years | ||||
Reis Inc | Trade names | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 4 | ||||
Weighted average life of intangible assets acquired (in years) | 10 years | ||||
Bureau Van Dijk | |||||
Business Acquisition [Line Items] | |||||
Current assets | $ 158 | ||||
Property and equipment | 4 | ||||
Total intangible assets | 1,353 | ||||
Goodwill | 2,615 | ||||
Other assets | 6 | ||||
Deferred revenue | (101) | ||||
Accounts payable and accrued liabilities | (44) | ||||
Deferred tax liabilities | (330) | ||||
Other liabilities | (119) | ||||
Total liabilities | (594) | ||||
Net assets acquired | $ 3,542 | ||||
Weighted average life of intangible assets acquired (in years) | 21 years | ||||
Bureau Van Dijk | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 999 | ||||
Weighted average life of intangible assets acquired (in years) | 23 years | ||||
Bureau Van Dijk | Database | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 13 | ||||
Weighted average life of intangible assets acquired (in years) | 10 years | ||||
Bureau Van Dijk | Product Technology | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 259 | ||||
Weighted average life of intangible assets acquired (in years) | 12 years | ||||
Bureau Van Dijk | Trade names | |||||
Business Acquisition [Line Items] | |||||
Total intangible assets | $ 82 | ||||
Weighted average life of intangible assets acquired (in years) | 18 years |
Acquisitions - BvD Pro Forma In
Acquisitions - BvD Pro Forma Information (Detail) - Bureau Van Dijk $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | |
Pro forma Revenue | $ 4,415 |
Pro forma Net Income attributable to Moody’s | $ 1,012 |
Divestiture - Additional Inform
Divestiture - Additional Information (Details) - USD ($) $ in Millions | Nov. 08, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash received upon disposal of a business, net of cash transferred to purchaser | $ 226 | $ 6 | $ 0 | |
Loss pursuant to the divestiture of MAKS | 14 | 0 | $ 0 | |
Indemnification provision liability | 43 | $ 0 | ||
MAKS | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash received upon disposal of a business, net of cash transferred to purchaser | $ 226 | |||
Loss pursuant to the divestiture of MAKS | 14 | |||
Disposal group, including discontinued operation, foreign currency translation losses | $ 32 | |||
Indemnification provision liability | $ 43 |
Goodwill And Other Acquired I_3
Goodwill And Other Acquired Intangible Assets - Activity in Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance, Goodwill gross | $ 3,793 | $ 3,765 |
Beginning balance, Accumulated impairment charge | (12) | (12) |
Beginning balance, goodwill net | 3,781 | 3,753 |
Additions/adjustments | 114 | 211 |
Foreign currency translation adjustments | (10) | (183) |
Disposition of MAKS | (163) | |
Ending balance, Goodwill gross | 3,734 | 3,793 |
Ending balance, Accumulated impairment charge | (12) | (12) |
Ending balance, goodwill net | 3,722 | 3,781 |
MIS | ||
Goodwill [Roll Forward] | ||
Beginning balance, Goodwill gross | 258 | 285 |
Beginning balance, Accumulated impairment charge | 0 | 0 |
Beginning balance, goodwill net | 258 | 285 |
Additions/adjustments | 53 | 0 |
Foreign currency translation adjustments | 4 | (27) |
Disposition of MAKS | 0 | |
Ending balance, Goodwill gross | 315 | 258 |
Ending balance, Accumulated impairment charge | 0 | 0 |
Ending balance, goodwill net | 315 | 258 |
MA | ||
Goodwill [Roll Forward] | ||
Beginning balance, Goodwill gross | 3,535 | 3,480 |
Beginning balance, Accumulated impairment charge | (12) | (12) |
Beginning balance, goodwill net | 3,523 | 3,468 |
Additions/adjustments | 61 | 211 |
Foreign currency translation adjustments | (14) | (156) |
Disposition of MAKS | (163) | |
Ending balance, Goodwill gross | 3,419 | 3,535 |
Ending balance, Accumulated impairment charge | (12) | (12) |
Ending balance, goodwill net | $ 3,407 | $ 3,523 |
Goodwill And Other Acquired I_4
Goodwill And Other Acquired Intangible Assets - Acquired Intangible Assets and Related Amortization (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, net | $ 1,498 | $ 1,566 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 1,325 | 1,368 |
Accumulated amortization | (235) | (214) |
Acquired intangible assets, net | 1,090 | 1,154 |
Trade secrets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 30 | 30 |
Accumulated amortization | (29) | (28) |
Acquired intangible assets, net | 1 | 2 |
Software/product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 372 | 353 |
Accumulated amortization | (131) | (102) |
Acquired intangible assets, net | 241 | 251 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 150 | 155 |
Accumulated amortization | (30) | (34) |
Acquired intangible assets, net | 120 | 121 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 80 | 70 |
Accumulated amortization | (34) | (32) |
Acquired intangible assets, net | $ 46 | $ 38 |
Goodwill And Other Acquired I_5
Goodwill And Other Acquired Intangible Assets - Amortization Expense Relating to Acquired Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 103 | $ 102 | $ 61 |
Goodwill And Other Acquired I_6
Goodwill And Other Acquired Intangible Assets - Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 99 |
2021 | 99 |
2022 | 99 |
2023 | 96 |
2024 | 94 |
Thereafter | 1,011 |
Total estimated future amortization | $ 1,498 |
Goodwill And Other Acquired I_7
Goodwill And Other Acquired Intangible Assets - Narrative (Details) - Dec. 26, 2019 $ in Thousands, ₨ in Millions | INR (₨) | USD ($) |
Indian Credit Ratings Agency | ||
Loss Contingencies [Line Items] | ||
Penalty in period | ₨ 2.5 | $ 35 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | Oct. 26, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 |
Restructuring Cost and Reserve [Line Items] | ||||
Remaining restructuring liability | $ 42 | $ 24 | $ 0 | |
2018 Restructuring Program | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Effect on future earnings, amount | $ 60 | |||
Restructuring expected cost | 105 | |||
2018 Restructuring Program | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expected cost | 110 | |||
Employee Termination Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Remaining restructuring liability | 30 | $ 21 | $ 0 | |
Employee Termination Costs | 2018 Restructuring Program | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expected cost | $ 60 | |||
Real Estate | 2018 Restructuring Program | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for restructuring | $ 50 |
Restructuring - Restructuring E
Restructuring - Restructuring Expenses Included in Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | $ 49 | $ 60 | $ 49 | $ 0 | |
2018 Restructuring Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | $ 53 | $ 60 | $ 49 | $ 0 |
Restructuring - Changes in Rest
Restructuring - Changes in Restructuring Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring liability, Beginning Balance | $ 42 | $ 0 |
Restructuring liability, Ending Balance | 24 | 42 |
Employee Termination Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability, Beginning Balance | 30 | 0 |
Restructuring liability, Ending Balance | 21 | 30 |
Contract Termination Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability, Beginning Balance | 12 | 0 |
Restructuring liability, Ending Balance | 3 | 12 |
2018 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Adoption of New Lease Accounting Standard | (11) | |
Cost incurred and adjustments | 31 | 45 |
Cash payments and adjustments | (38) | (3) |
2018 Restructuring Program | Employee Termination Costs | ||
Restructuring Reserve [Roll Forward] | ||
Adoption of New Lease Accounting Standard | 0 | |
Cost incurred and adjustments | 26 | 33 |
Cash payments and adjustments | (35) | (3) |
Cumulative expense incurred to date | 59 | |
2018 Restructuring Program | Contract Termination Costs | ||
Restructuring Reserve [Roll Forward] | ||
Adoption of New Lease Accounting Standard | (11) | |
Cost incurred and adjustments | 5 | 12 |
Cash payments and adjustments | (3) | $ 0 |
Cumulative expense incurred to date | $ 50 |
Restructuring - Changes in Re_2
Restructuring - Changes in Restructuring Liability (Footnote) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of right-of-use | $ 25 | |||
Operating lease right-of-use assets | $ 456 | |||
Accounting Standards Update 2016-02 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Operating lease right-of-use assets | $ 518 | |||
Real Estate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of right-of-use | 25 | |||
Real Estate | Level 3 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Operating lease right-of-use assets | 18 | |||
Contract Termination Costs | Real Estate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash acceleration of amortization | $ 4 | |||
Contract Termination Costs | Real Estate | Accounting Standards Update 2016-02 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reclassification of liabilities as a reduction of the ROU Asset capitalized upon adoption | $ 11 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Carried at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Derivatives | $ 92 | $ 28 |
Money market mutual funds | 15 | |
Open ended mutual funds | 3 | 33 |
Total | 95 | 76 |
Liabilities: | ||
Derivatives | 16 | |
Total | 16 | |
Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Money market mutual funds | 15 | |
Open ended mutual funds | 3 | 33 |
Total | 3 | 48 |
Liabilities: | ||
Derivatives | 0 | |
Total | 0 | |
Level 2 | ||
Assets: | ||
Derivatives | 92 | 28 |
Money market mutual funds | 0 | |
Open ended mutual funds | 0 | 0 |
Total | $ 92 | 28 |
Liabilities: | ||
Derivatives | 16 | |
Total | $ 16 |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Additional Details Related to Certain Balance Sheet Captions (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other current assets: | ||
Prepaid taxes | $ 79 | $ 100 |
Prepaid expenses | 71 | 67 |
Capitalized costs to obtain and fulfill sales contracts | 91 | 77 |
Other | 89 | 38 |
Total other current assets | 330 | 282 |
Other assets: | ||
Investments in non-consolidated affiliates | 117 | 105 |
Deposits for real-estate leases | 13 | 14 |
Indemnification assets related to acquisitions | 16 | 16 |
Mutual funds and fixed deposits | 10 | 18 |
Costs to obtain sales contracts | 119 | 79 |
Cross currency and interest rate swaps | 83 | 27 |
Other | 31 | 16 |
Total other assets | 389 | 275 |
Accounts payable and accrued liabilities: | ||
Salaries and benefits | 152 | 113 |
Incentive compensation | 208 | 155 |
Customer credits, advanced payments and advanced billings | 28 | 20 |
Dividends | 7 | 7 |
Professional service fees | 43 | 48 |
Interest accrued on debt | 63 | 71 |
Accounts payable | 38 | 30 |
Income taxes | 73 | 71 |
Pension and other retirement employee benefits | 7 | 6 |
Accrued royalties | 25 | 25 |
Foreign exchange forwards on certain assets and liabilities | 0 | 8 |
Restructuring liability | 21 | 35 |
Other | 108 | 107 |
Total accounts payable and accrued liabilities | 773 | 696 |
Other liabilities: | ||
Pension and other retirement employee benefits | 299 | 249 |
Deferred rent-non-current portion | 0 | 94 |
Interest accrued on UTPs | 82 | 70 |
MAKS indemnification provisions (See Note 10) | 43 | 0 |
Income tax liability – non-current portion | 51 | 125 |
Cross currency and interest rate swaps | 0 | 8 |
Restructuring liability | 3 | 7 |
Other | 26 | 23 |
Total other liabilities | $ 504 | $ 576 |
Comprehensive Income And Accu_3
Comprehensive Income And Accumulated Other Comprehensive Income - Reclassification out of AOCI (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss pursuant to the divestiture of MAKS | $ (14) | $ 0 | $ 0 |
Other non-operating income (expense), net | 20 | 19 | 4 |
Interest expense, net | (208) | (215) | (209) |
Operating expense | 2,831 | 2,575 | 2,383 |
Selling, general and administrative | 1,167 | 1,080 | 986 |
Total before income taxes | 1,810 | 1,672 | 1,787 |
Provision for income taxes | (381) | (352) | (779) |
Net income | 1,429 | 1,320 | 1,008 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income | (32) | (4) | 4 |
Currency translation adjustment losses | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss pursuant to the divestiture of MAKS | (32) | 0 | 0 |
Net income | (32) | 0 | 0 |
Gains on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total before income taxes | 0 | 0 | 12 |
Provision for income taxes | 0 | 0 | (5) |
Net income | 0 | 0 | 7 |
Gains on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Cross currency swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income (expense), net | 0 | 0 | 13 |
Gains on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Interest rate contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest expense, net | 0 | 0 | (1) |
Gains on net investment hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Provision for income taxes | (1) | 0 | 0 |
Net income | 2 | 0 | 0 |
Gains on net investment hedges | Reclassification out of Accumulated Other Comprehensive Income | FX forwards | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income (expense), net | 3 | 0 | 0 |
Gains on available for sale securities | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other non-operating income (expense), net | 0 | 0 | 2 |
Provision for income taxes | 0 | 0 | 0 |
Net income | 0 | 0 | 2 |
Amortization of actuarial losses and prior service costs included in net income | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Operating expense | (2) | (3) | (5) |
Selling, general and administrative | (1) | (2) | (3) |
Pension and other retirement benefits | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total before income taxes | (3) | (5) | (8) |
Provision for income taxes | 1 | 1 | 3 |
Net income | $ (2) | $ (4) | $ (5) |
Comprehensive Income And Accu_4
Comprehensive Income And Accumulated Other Comprehensive Income - Changes in Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 459 | ||||
Other comprehensive income/(loss) before reclassifications | (25) | $ (256) | $ 196 | ||
Amounts reclassified from AOCI | 32 | 4 | (4) | ||
Other comprehensive income/(loss) | (13) | (254) | 192 | ||
Ending balance | 612 | 459 | |||
Pension and Other Retirement Benefits | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (53) | (61) | (79) | ||
Other comprehensive income/(loss) before reclassifications | (24) | 4 | 13 | ||
Amounts reclassified from AOCI | 2 | 4 | 5 | ||
Other comprehensive income/(loss) | (39) | 8 | 18 | ||
Ending balance | (92) | (53) | (61) | ||
Gains / (Losses) on Cash Flow Hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 0 | 1 | 2 | ||
Other comprehensive income/(loss) before reclassifications | 0 | (1) | 6 | ||
Amounts reclassified from AOCI | 0 | 0 | (7) | ||
Other comprehensive income/(loss) | 0 | (1) | (1) | ||
Ending balance | 0 | 0 | 1 | ||
Foreign Currency Translation Adjustments | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (406) | (113) | (325) | ||
Other comprehensive income/(loss) before reclassifications | (27) | (293) | 212 | ||
Amounts reclassified from AOCI | 32 | 0 | 0 | ||
Other comprehensive income/(loss) | 5 | (293) | 212 | ||
Ending balance | (401) | (406) | (113) | ||
Net Investment Hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 33 | (1) | 35 | ||
Other comprehensive income/(loss) before reclassifications | 26 | 34 | (36) | ||
Amounts reclassified from AOCI | (2) | 0 | 0 | ||
Other comprehensive income/(loss) | 21 | 34 | (36) | ||
Ending balance | 54 | 33 | (1) | ||
Gains on Available for Sale Securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 0 | 2 | 3 | ||
Other comprehensive income/(loss) before reclassifications | 0 | 1 | |||
Amounts reclassified from AOCI | 0 | (2) | |||
Other comprehensive income/(loss) | (2) | (1) | |||
Ending balance | 0 | 2 | |||
Total | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (426) | (172) | (364) | ||
Ending balance | $ (439) | $ (426) | $ (172) | ||
Accounting Standards Update 2018-02 | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (20) | ||||
Accounting Standards Update 2018-02 | Pension and Other Retirement Benefits | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (17) | $ 0 | |||
Accounting Standards Update 2018-02 | Gains / (Losses) on Cash Flow Hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 | |||
Accounting Standards Update 2018-02 | Foreign Currency Translation Adjustments | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 | |||
Accounting Standards Update 2018-02 | Net Investment Hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (3) | 0 | |||
Accounting Standards Update 2016-01 | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (2) | ||||
Accounting Standards Update 2016-01 | Gains on Available for Sale Securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (2) |
Pension And Other Retirement _3
Pension And Other Retirement Benefits - Summary of Changes in Benefit Obligations and Fair Value of Plan Assets for Post-Retirement Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in benefit obligation: | |||
Interest cost | $ (22) | $ (19) | $ (20) |
Amounts recorded on the consolidated balance sheets: | |||
Pension and retirement benefits liability – current | (7) | (6) | |
Pension and retirement benefits liability – non current | (299) | (249) | |
U.S. Plans | Pension Plans | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of the period | (508) | (518) | |
Service cost | (17) | (19) | (18) |
Interest cost | (21) | (17) | (19) |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | 21 | 11 | |
Actuarial loss | (3) | 0 | |
Assumption changes | (61) | 35 | |
Benefit obligation, end of the period | (589) | (508) | (518) |
Change in plan assets: | |||
Fair value of plan assets, beginning of the period | 348 | 357 | |
Actual return on plan assets | 60 | (18) | |
Benefits paid | (21) | (11) | |
Employer contributions | 8 | 20 | |
Plan participants’ contributions | 0 | 0 | |
Fair value of plan assets, end of the period | 395 | 348 | 357 |
Funded Status of the plans | (194) | (160) | |
Amounts recorded on the consolidated balance sheets: | |||
Pension and retirement benefits liability – current | (6) | (5) | |
Pension and retirement benefits liability – non current | (188) | (155) | |
Net amount recognized | (194) | (160) | |
Accumulated benefit obligation, end of the period | (529) | (458) | |
U.S. Plans | Other Retirement Plans | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of the period | (32) | (31) | |
Service cost | (3) | (3) | (2) |
Interest cost | (1) | (1) | (1) |
Plan participants’ contributions | (1) | (1) | |
Benefits paid | 1 | 1 | |
Actuarial loss | 0 | 0 | |
Assumption changes | (6) | 3 | |
Benefit obligation, end of the period | (42) | (32) | (31) |
Change in plan assets: | |||
Fair value of plan assets, beginning of the period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Benefits paid | (1) | (1) | |
Employer contributions | 0 | 0 | |
Plan participants’ contributions | 1 | 1 | |
Fair value of plan assets, end of the period | 0 | 0 | $ 0 |
Funded Status of the plans | (42) | (32) | |
Amounts recorded on the consolidated balance sheets: | |||
Pension and retirement benefits liability – current | (1) | (1) | |
Pension and retirement benefits liability – non current | (41) | (31) | |
Net amount recognized | $ (42) | $ (32) |
Pension And Other Retirement _4
Pension And Other Retirement Benefits - Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - Pension Plans - U.S. Plans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Aggregate projected benefit obligation | $ 589 | $ 508 |
Aggregate accumulated benefit obligation | 529 | 458 |
Aggregate fair value of plan assets | $ 395 | $ 348 |
Pension And Other Retirement _5
Pension And Other Retirement Benefits - Summary of Pre-Tax Net Actuarial Losses and Prior Service Cost Recognized in Accumulated Other Comprehensive Income (Loss) (Detail) - U.S. Plans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Net actuarial losses | $ (116) | $ (96) |
Net prior service costs | 4 | 4 |
Total recognized in AOCI – pretax | (112) | (92) |
Other Retirement Plans | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Net actuarial losses | (6) | 0 |
Net prior service costs | 0 | 0 |
Total recognized in AOCI – pretax | $ (6) | $ 0 |
Pension And Other Retirement _6
Pension And Other Retirement Benefits - Summary of Post-Retirement Plans to Amortize from Accumulated Other Comprehensive Income (Loss) as Net Periodic Expense (Detail) - U.S. Plans $ in Millions | Dec. 31, 2019USD ($) |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial losses | $ 7 |
Total to be recognized as components of net periodic expense | 7 |
Other Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial losses | 0 |
Total to be recognized as components of net periodic expense | $ 0 |
Pension And Other Retirement _7
Pension And Other Retirement Benefits - Components of Net Periodic Benefit Expense Related to Retirement Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 22 | $ 19 | $ 20 |
U.S. Plans | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 17 | 19 | 18 |
Interest cost | 21 | 17 | 19 |
Expected return on plan assets | (20) | (15) | (17) |
Amortization of net actuarial loss from earlier periods | 4 | 6 | 9 |
Net periodic expense | 22 | 27 | 29 |
U.S. Plans | Other Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3 | 3 | 2 |
Interest cost | 1 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss from earlier periods | 0 | 0 | 0 |
Net periodic expense | $ 4 | $ 4 | $ 3 |
Pension And Other Retirement _8
Pension And Other Retirement Benefits - Summary Of Pre Tax Amounts Recognized In Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (loss)/gain arising during the period | $ (32) | $ 6 | $ 21 |
U.S. Plans | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of net actuarial losses | 4 | 6 | 9 |
Net actuarial (loss)/gain arising during the period | (24) | 2 | 21 |
Total recognized in OCI – pre-tax | (20) | 8 | 30 |
U.S. Plans | Other Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of net actuarial losses | 0 | 0 | 0 |
Net actuarial (loss)/gain arising during the period | (6) | 3 | 1 |
Total recognized in OCI – pre-tax | $ (6) | $ 3 | $ 1 |
Pension And Other Retirement _9
Pension And Other Retirement Benefits - Weighted-Average Assumptions Used to Determine Benefit Obligations (Detail) - U.S. Plans | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.04% | 4.07% |
Rate of compensation increase | 3.64% | 3.69% |
Other Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.05% | 4.10% |
Rate of compensation increase | 0.00% | 0.00% |
Pension And Other Retirement_10
Pension And Other Retirement Benefits - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Expense (Detail) - U.S. Plans | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.07% | 3.46% | 3.89% |
Expected return on plan assets | 5.65% | 4.50% | 5.40% |
Rate of compensation increase | 3.69% | 3.71% | 3.72% |
Other Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.10% | 3.45% | 3.85% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Pension and Other Retirement_11
Pension and Other Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Dividends paid on ESOP | $ 1 | $ 1 | $ 1 | |
Moody's share held in ESOP | 411,100 | 435,500 | ||
U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Employee contribution percentage of employee contribution in participation | 50.00% | |||
Maximum employee contribution in profit participation plan | 3.00% | |||
Defined contribution compensation expense | $ 43 | $ 27 | $ 43 | |
U.S. Plans | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Expected rate of return | 5.65% | 4.50% | 5.40% | |
Employer contributions | $ 8 | $ 20 | ||
U.S. Plans | Other Retirement Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Expected rate of return | 0.00% | 0.00% | 0.00% | |
Employer contributions | $ 0 | $ 0 | ||
U.S. Plans | Equity Securities | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 49.00% | |||
U.S. Plans | Equity Securities | Pension Plans | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 44.00% | |||
U.S. Plans | Equity Securities | Pension Plans | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 54.00% | |||
U.S. Plans | Fixed Income Securities | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 45.00% | |||
U.S. Plans | Fixed Income Securities | Pension Plans | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 40.00% | |||
U.S. Plans | Fixed Income Securities | Pension Plans | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 50.00% | |||
U.S. Plans | Other Investments | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 6.00% | |||
U.S. Plans | Other Investments | Pension Plans | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 3.00% | |||
U.S. Plans | Other Investments | Pension Plans | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Plan asset, target asset allocation percentage | 9.00% | |||
Non-U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Defined contribution compensation expense | $ 25 | 26 | $ 24 | |
Funded Plan | U.S. Plans | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Employer contributions | 16 | |||
Anticipated contribution to plans | 99 | |||
Unfunded Plan | U.S. Plans | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Employer contributions | 8 | $ 5 | ||
Anticipated contribution to plans | $ 6 | |||
Forecast | U.S. Plans | Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Abstract] | ||||
Expected rate of return | 4.45% |
Pension And Other Retirement_12
Pension And Other Retirement Benefits - Summary of Pension Plan Assets by Category Based on Hierarchy of Fair Value Measurements (Detail) - Pension Plans - U.S. Plans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 395 | $ 348 | $ 357 |
Percent of total assets | 100.00% | 100.00% | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 34 | $ 21 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 311 | 271 | |
Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 50 | 56 | |
Cash and cash equivalent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 2 | $ 1 | |
Percent of total assets | 1.00% | 0.00% | |
Cash and cash equivalent | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 0 | $ 0 | |
Cash and cash equivalent | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2 | 1 | |
Total equity investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 190 | $ 161 | |
Percent of total assets | 48.00% | 47.00% | |
Total equity investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 0 | $ 0 | |
Total equity investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 190 | 161 | |
U.S. large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 140 | $ 122 | |
Percent of total assets | 35.00% | 35.00% | |
U.S. large-cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 0 | $ 0 | |
U.S. large-cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 140 | 122 | |
U.S. small and mid-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 21 | $ 16 | |
Percent of total assets | 5.00% | 5.00% | |
U.S. small and mid-cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 0 | $ 0 | |
U.S. small and mid-cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 21 | 16 | |
Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 29 | $ 23 | |
Percent of total assets | 7.00% | 7.00% | |
Emerging markets | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 0 | $ 0 | |
Emerging markets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 29 | 23 | |
Total fixed-income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 180 | $ 165 | |
Percent of total assets | 46.00% | 47.00% | |
Total fixed-income investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 34 | $ 21 | |
Total fixed-income investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 119 | 109 | |
Total fixed-income investments | Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 27 | 35 | |
Emerging markets bond fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 15 | $ 13 | |
Percent of total assets | 4.00% | 4.00% | |
Emerging markets bond fund | Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 15 | $ 13 | |
Intermediate-term investment grade U.S. government/ corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 119 | $ 109 | |
Percent of total assets | 30.00% | 31.00% | |
Intermediate-term investment grade U.S. government/ corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 0 | $ 0 | |
Intermediate-term investment grade U.S. government/ corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 119 | 109 | |
U.S. Treasury Inflation-Protected Securities (TIPs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 22 | $ 21 | |
Percent of total assets | 6.00% | 6.00% | |
U.S. Treasury Inflation-Protected Securities (TIPs) | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 22 | $ 21 | |
U.S. Treasury Inflation-Protected Securities (TIPs) | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Convertible securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 12 | $ 11 | |
Percent of total assets | 3.00% | 3.00% | |
Convertible securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 12 | ||
Convertible securities | Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 11 | ||
Private investment fund—high yield securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 12 | $ 11 | |
Percent of total assets | 3.00% | 3.00% | |
Private investment fund—high yield securities | Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 12 | $ 11 | |
Other investment—private real estate fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 23 | $ 21 | |
Percent of total assets | 6.00% | 6.00% | |
Other investment—private real estate fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 0 | ||
Other investment—private real estate fund | Measured using NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 23 | $ 21 |
Pension And Other Retirement_13
Pension And Other Retirement Benefits - Estimated Future Benefits Payments for Retirement Plans (Detail) - U.S. Plans $ in Millions | Dec. 31, 2019USD ($) |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 16 |
2021 | 17 |
2022 | 47 |
2023 | 27 |
2024 | 23 |
2025 - 2029 | 146 |
Other Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 1 |
2021 | 1 |
2022 | 1 |
2023 | 2 |
2024 | 2 |
2025 - 2029 | $ 12 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 147 | ||
Weighted average period to recognize expense | 2 years 4 months 24 days | ||
Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 4 years | ||
Unrecognized compensation expense | $ 6 | ||
Weighted average period to recognize expense | 2 years 2 months 12 days | ||
Performance Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Unrecognized compensation expense | $ 24 | ||
Weighted average period to recognize expense | 1 year 9 months 18 days | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserve for issuance or grant (shares) | 6 | ||
Discount allowed to employees on purchase of shares under ESPP plan | 5.00% | 5.00% | 5.00% |
1998 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserve for issuance or grant (shares) | 33 | ||
2001 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserve for issuance or grant (shares) | 50.6 | ||
2001 Plan | Instruments Other Than Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserve for issuance or grant (shares) | 14 | ||
Directors' Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserve for issuance or grant (shares) | 1.7 | ||
Award vesting period (in years) | 1 year | ||
Minimum | Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 1 year | ||
Maximum | Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 4 years | ||
Maximum | 1998 and 2001 Plan | Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 10 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Cost and Associated Tax Benefit (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 136 | $ 130 | $ 123 |
Tax benefit | $ 29 | $ 32 | $ 13 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions used in Determining Fair Value for Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Expected dividend yield | 1.14% | 1.05% | 1.34% |
Expected stock volatility | 24.00% | 26.00% | 27.00% |
Risk-free interest rate | 2.56% | 2.82% | 2.19% |
Expected holding period -in years | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 6 months |
Grant date fair value | $ 43.29 | $ 45.73 | $ 30 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Shares | |
Shares, Outstanding, Beginning Balance (in shares) | shares | 2.2 |
Shares, Granted (in shares) | shares | 0.2 |
Shares, Exercised (in shares) | shares | (0.8) |
Shares, Outstanding, Ending Balance (in shares) | shares | 1.6 |
Shares, Vested and expected to vest (in shares) | shares | 1.5 |
Shares, Exercisable (in shares) | shares | 1.1 |
Weighted Average Exercise Price Per Share | |
Weighted Average Exercise Price Per Share, Beginning Balance (in usd per share) | $ / shares | $ 69.86 |
Weighted Average Exercise Price Per Share, Granted (in usd per share) | $ / shares | 175.30 |
Weighted Average Exercise Price Per Share, Exercised (in usd per share) | $ / shares | 44.59 |
Weighted Average Exercise Price Per Share, Ending Balance (in usd per share) | $ / shares | 93.51 |
Weighted Average Exercise Price Per Share, Vested and expected to vest (in usd per share) | $ / shares | 92.14 |
Weighted Average Exercise Price Per Share, Exercisable (in usd per share) | $ / shares | $ 71.64 |
Weighted Average Remaining Contractual Term | |
Weighted Average Remaining Contractual Term, Outstanding (in years) | 5 years 2 months 12 days |
Weighted Average Remaining Contractual Term, Vested and expected to vest (in years) | 5 years 1 month 6 days |
Weighted Average Remaining Contractual Term (in years) | 4 years |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, Outstanding | $ | $ 227 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | 224 |
Aggregate Intrinsic Value, Exercisable | $ | $ 176 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Exercises and Restricted Stock Vesting (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Proceeds from stock option exercises | $ 36 | $ 38 | $ 49 |
Aggregate intrinsic value | 114 | 99 | 88 |
Tax benefit realized upon exercise | 27 | 24 | 31 |
Restricted Stock | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Fair value of shares vested | 156 | 151 | 111 |
Tax benefit realized upon vesting | 36 | 35 | 35 |
Performance Based Restricted Stock | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Fair value of shares vested | 47 | 23 | 20 |
Tax benefit realized upon vesting | $ 11 | $ 6 | $ 7 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Nonvested Restricted Stock (Details) - Non Vested Restricted Stock shares in Millions | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Shares, Beginning Balance (in shares) | shares | 2 |
Shares, Granted (in shares) | shares | 0.8 |
Shares, Vested (in shares) | shares | (0.9) |
Shares, Forfeited (in shares) | shares | (0.1) |
Shares, Ending Balance (in shares) | shares | 1.8 |
Weighted Average Grant Date Fair Value Per Share | |
Weighted Average Grant Date Fair Value Per Share, Beginning Balance (in usd per share) | $ / shares | $ 123.13 |
Weighted Average Grant Date Fair Value Per Share, Granted (in usd per share) | $ / shares | 174.07 |
Weighted Average Grant Date Fair Value Per Share, Vested (in usd per share) | $ / shares | 113.21 |
Weighted Average Grant Date Fair Value Per Share, Forfeited (in usd per share) | $ / shares | 144.18 |
Weighted Average Grant Date Fair Value Per Share, Ending Balance (in usd per share) | $ / shares | $ 124.63 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Performance Based Restricted Stock (Details) - Performance Based Restricted Stock shares in Millions | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Performance-Based Restricted Stock | |
Shares, Beginning Balance (in shares) | shares | 0.7 |
Shares, Granted (in shares) | shares | 0.1 |
Shares, Vested (in shares) | shares | (0.3) |
Shares, Ending Balance (in shares) | shares | 0.5 |
Performance based restricted stock, Weighted Average Grant Date Fair Value Per Share | |
Weighted Average Grant Date Fair Value Per Share, Beginning Balance (in usd per share) | $ / shares | $ 103.74 |
Weighted Average Grant Date Fair Value Per Share, Granted (in usd per share) | $ / shares | 169.68 |
Weighted Average Grant Date Fair Value Per Share, Vested (in usd per share) | $ / shares | 76.68 |
Weighted Average Grant Date Fair Value Per Share, Ending Balance (in usd per share) | $ / shares | $ 134.35 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 179 | $ 168 | $ 454 |
State and Local | 59 | 50 | 30 |
Non-U.S. | 181 | 233 | 207 |
Total current | 419 | 451 | 691 |
Deferred: | |||
Federal | (19) | (59) | 156 |
State and Local | (3) | (2) | 17 |
Non-U.S. | (16) | (38) | (85) |
Total deferred | (38) | (99) | 88 |
Total provision for income taxes | $ 381 | $ 352 | $ 779 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income Before Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory tax rate | 21.00% | 21.00% | 35.00% |
State and local taxes, net of federal tax benefit | 2.20% | 2.20% | 1.90% |
Benefit of foreign operations | (0.10%) | 1.80% | (9.90%) |
U.S. Tax Act Impact | 0 | (0.028) | 0.170 |
Other | (2.10%) | (1.10%) | (0.40%) |
Effective tax rate | 21.00% | 21.10% | 43.60% |
Income tax paid | $ 458 | $ 442 | $ 366 |
Income Taxes - Source of income
Income Taxes - Source of income Before Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 1,039 | $ 936 | $ 1,099 |
Non-U.S. | 771 | 736 | 688 |
Income before provision for income taxes | $ 1,810 | $ 1,672 | $ 1,787 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||||
Account receivable allowances | $ 6 | $ 6 | ||
Accumulated depreciation and amortization | 1 | 1 | ||
Stock-based compensation | 46 | 46 | ||
Accrued compensation and benefits | 89 | 75 | ||
Operating lease liabilities | 136 | |||
Deferred rent | 22 | |||
Deferred revenue | 37 | 41 | ||
Net operating loss | 13 | 16 | ||
Restructuring | 4 | 5 | ||
Uncertain tax positions | 94 | 81 | ||
Self-insured related reserves | 8 | 8 | ||
Other | 13 | 14 | ||
Total deferred tax assets | 447 | 315 | ||
Deferred tax liabilities: | ||||
Accumulated depreciation and amortization of intangible assets and capitalized software | (389) | (395) | ||
ROU Assets | (107) | 0 | ||
Capital gains | (23) | (24) | ||
Self-insured related income | (8) | (8) | ||
Stock based compensation | (2) | (2) | ||
New revenue accounting standard - ASC 606 | (12) | (19) | ||
Unrealized gain on net investment hedges - OCI | (22) | (10) | ||
Other liabilities | (3) | (7) | ||
Total deferred tax liabilities | (566) | (465) | ||
Net deferred tax liabilities | (119) | (150) | ||
Valuation allowance | (9) | (5) | $ (6) | $ (3) |
Total net deferred tax liabilities | $ (128) | $ (155) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||||||
Estimated repatriation tax liability resulting from tax reform legislation | $ 247 | |||||
Revision of estimated repatriation tax liability resulting from tax reform legislation | $ 236 | |||||
Reduction in estimated repatriation tax liability resulting from tax act | $ 11 | |||||
Estimated repatriation tax liability resulting from the tax act, pay period | 8 years | |||||
Excess tax benefits from stock compensation | $ 44 | $ 38 | ||||
Excess tax benefits from stock compensation (percent) | 2.42% | 2.23% | ||||
Valuation allowance | 6 | $ 9 | $ 5 | $ 3 | ||
Unrecognized tax benefits | $ 389 | 477 | 495 | $ 200 | ||
Uncertain tax positions if recognized would impact the effective tax rate | 422 | |||||
Deferred tax asset for potential transition tax benefit | 50 | 48 | ||||
Net interest expense on UTPs | 28 | 15 | ||||
Interest accrued on UTPs | $ 82 | $ 70 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Uncertain Tax Positions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits | |||
Unrecognized tax positions, beginning balance | $ 495 | $ 389 | $ 200 |
Additions for tax positions related to the current year | 35 | 80 | 86 |
Additions for tax positions of prior years | 22 | 89 | 120 |
Reductions for tax positions of prior years | (2) | (13) | (4) |
Settlements with taxing authorities | (1) | (2) | (2) |
Lapse of statute of limitations | (44) | (48) | (11) |
Reclassification to indemnification liability related to MAKS divestiture | (28) | 0 | 0 |
Unrecognized tax positions, ending balance | $ 477 | $ 495 | $ 389 |
Indebtedness - Summary of Total
Indebtedness - Summary of Total Indebtedness (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Principal Amount | $ 5,603 | $ 5,722 |
Fair Value of Interest Rate Swap | 27 | 2 |
Unamortized (Discount) Premium | (17) | (18) |
Unamortized Debt Issuance Costs | (32) | (30) |
Carrying Value | 5,581 | 5,676 |
Current portion | 0 | (450) |
Total long-term debt | $ 5,581 | $ 5,226 |
5.50% 2010 Senior Notes, due 2020 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 5.50% | 5.50% |
Principal Amount | $ 500 | |
Fair Value of Interest Rate Swap | (4) | |
Unamortized (Discount) Premium | (1) | |
Unamortized Debt Issuance Costs | (1) | |
Carrying Value | $ 0 | $ 494 |
4.50% 2012 Senior Notes, due 2022 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.50% | 4.50% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | 9 | 2 |
Unamortized (Discount) Premium | (1) | (2) |
Unamortized Debt Issuance Costs | (1) | (1) |
Carrying Value | $ 507 | $ 499 |
4.875% 2013 Senior Notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.875% | 4.875% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (1) | (1) |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Value | $ 497 | $ 497 |
2.75% 2014 Senior Notes (5-Year), due 2019 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.75% | 2.75% |
Term of notes | 5 years | 5 years |
Principal Amount | $ 450 | |
Fair Value of Interest Rate Swap | 0 | |
Unamortized (Discount) Premium | 0 | |
Unamortized Debt Issuance Costs | 0 | |
Carrying Value | $ 0 | $ 450 |
5.25% 2014 Senior Notes (30-Year), due 2044 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 5.25% | 5.25% |
Term of notes | 30 years | 30 years |
Principal Amount | $ 600 | $ 600 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | 4 | 3 |
Unamortized Debt Issuance Costs | (5) | (5) |
Carrying Value | $ 599 | $ 598 |
1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 1.75% | 1.75% |
Principal Amount | $ 561 | $ 572 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | 0 | 0 |
Unamortized Debt Issuance Costs | (3) | (3) |
Carrying Value | $ 558 | $ 569 |
2.75% 2017 Senior Notes, due 2021 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.75% | 2.75% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | 11 | 4 |
Unamortized (Discount) Premium | (1) | (1) |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Value | $ 508 | $ 501 |
2.625% 2017 Senior Notes, due 2023 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.625% | 2.625% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | 7 | 0 |
Unamortized (Discount) Premium | (1) | (1) |
Unamortized Debt Issuance Costs | (2) | (3) |
Carrying Value | $ 504 | $ 496 |
3.25% 2017 Senior Notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.25% | 3.25% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (4) | (5) |
Unamortized Debt Issuance Costs | (3) | (4) |
Carrying Value | $ 493 | $ 491 |
3.25% 2018 Senior Notes, due 2021 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.25% | 3.25% |
Principal Amount | $ 300 | $ 300 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | 0 | 0 |
Unamortized Debt Issuance Costs | (1) | (2) |
Carrying Value | $ 299 | $ 298 |
4.25% 2018 Senior Notes, due 2029 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.25% | 4.25% |
Principal Amount | $ 400 | $ 400 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (3) | (3) |
Unamortized Debt Issuance Costs | (3) | (3) |
Carrying Value | $ 394 | $ 394 |
4.875% 2018 Senior Notes, due 2048 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.875% | 4.875% |
Principal Amount | $ 400 | $ 400 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (7) | (7) |
Unamortized Debt Issuance Costs | (4) | (4) |
Carrying Value | $ 389 | $ 389 |
0.950% 2019 Senior Note, due 2030 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 0.95% | |
Principal Amount | $ 842 | |
Fair Value of Interest Rate Swap | 0 | |
Unamortized (Discount) Premium | (3) | |
Unamortized Debt Issuance Costs | (6) | |
Carrying Value | $ 833 |
Indebtedness - Schedule of Cred
Indebtedness - Schedule of Credit Facilities (Details) - 2018 Credit Facility - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Nov. 14, 2018 | |
Line of Credit Facility [Line Items] | |||
Maximum Borrowing Capacity | $ 1,000,000,000 | ||
Drawn | $ 0 | $ 0 | |
Undrawn | $ 1,000,000,000 | $ 1,000,000,000 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 14, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Make-whole amount | $ 12 | ||||
Debt, aggregate principal amount | $ 5,603 | $ 5,722 | |||
2018 Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Borrowing Capacity | $ 1,000 | ||||
2018 Credit Facility | Term Loan Facility Any Fiscal Quarter | |||||
Debt Instrument [Line Items] | |||||
Debt/EBITDA ratio | 4 | ||||
2018 Credit Facility | First Three Consecutive Quarters immediately following Any Acquisition | |||||
Debt Instrument [Line Items] | |||||
Debt/EBITDA ratio | 4.5 | ||||
2018 Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Facility Fee Basis Points | 0.07% | 0.07% | |||
Contingent consideration arising from acquisitions, payment or settlement | $ 500 | ||||
2018 Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Facility Fee Basis Points | 0.15% | 0.15% | |||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Maximum Borrowing Capacity | $ 1,000 | ||||
Commercial Paper | Maximum | |||||
Debt Instrument [Line Items] | |||||
Term of notes | 397 days | ||||
2010 Senior Notes due 2020 | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 500 | ||||
2.75% 2014 Senior Notes (5-Year), due 2019 | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 450 | ||||
0.950% 2019 Senior Note, due 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt, aggregate principal amount | € | € 750,000,000 | ||||
Alternate Base Rate | 2018 Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 0.00% | ||||
Alternate Base Rate | 2018 Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 0.225% | ||||
Adjusted LIBOR | 2018 Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 0.805% | ||||
Adjusted LIBOR | 2018 Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 1.225% |
Indebtedness - Principal Paymen
Indebtedness - Principal Payments Due on Long-Term Borrowings (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
2020 | $ 0 | |
2021 | 800 | |
2022 | 500 | |
2023 | 500 | |
2024 | 500 | |
Thereafter | 3,303 | |
Total principal payment | 5,603 | $ 5,722 |
4.50% 2012 Senior Notes, due 2022 | ||
Debt Instrument [Line Items] | ||
2022 | 500 | |
Total principal payment | 500 | 500 |
4.875% 2013 Senior Notes, due 2024 | ||
Debt Instrument [Line Items] | ||
2024 | 500 | |
Thereafter | 0 | |
Total principal payment | 500 | 500 |
5.25% 2014 Senior Notes (30-Year), due 2044 | ||
Debt Instrument [Line Items] | ||
Thereafter | 600 | |
Total principal payment | $ 600 | $ 600 |
Term of notes | 30 years | 30 years |
1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Thereafter | $ 561 | |
Total principal payment | 561 | $ 572 |
2.75% 2017 Senior Notes, due 2021 | ||
Debt Instrument [Line Items] | ||
2021 | 500 | |
Total principal payment | 500 | |
2.625% 2017 Senior Notes, due 2023 | ||
Debt Instrument [Line Items] | ||
2023 | 500 | |
Total principal payment | 500 | 500 |
3.25% 2017 Senior Notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Thereafter | 500 | |
Total principal payment | 500 | 500 |
3.25% 2018 Senior Notes, due 2021 | ||
Debt Instrument [Line Items] | ||
2021 | 300 | |
Total principal payment | 300 | 300 |
4.25% 2018 Senior Notes, due 2029 | ||
Debt Instrument [Line Items] | ||
Thereafter | 400 | |
Total principal payment | 400 | 400 |
4.875% 2018 Senior Notes, due 2048 | ||
Debt Instrument [Line Items] | ||
Thereafter | 400 | |
Total principal payment | 400 | $ 400 |
0.950% 2019 Senior Note, due 2030 | ||
Debt Instrument [Line Items] | ||
Thereafter | 842 | |
Total principal payment | $ 842 |
Indebtedness - Summary of Compo
Indebtedness - Summary of Components of Interest as Presented in Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Income | $ 17 | $ 15 | $ 16 |
Expense on borrowings | (176) | (197) | (190) |
Expense on UTPs and other tax related liabilities | (28) | (15) | (16) |
Net periodic pension costs--interest component | (22) | (19) | (20) |
Capitalized | 1 | 1 | 1 |
Total | (208) | (215) | (209) |
Interest paid | $ 167 | $ 183 | $ 158 |
Indebtedness - Fair Value and C
Indebtedness - Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Carrying Amount | $ 5,581 | $ 5,676 |
2010 Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 5.50% | 5.50% |
Carrying Amount | $ 0 | $ 494 |
4.50% 2012 Senior Notes, due 2022 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.50% | 4.50% |
Carrying Amount | $ 507 | $ 499 |
4.875% 2013 Senior Notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.875% | 4.875% |
Carrying Amount | $ 497 | $ 497 |
2.75% 2014 Senior Notes (5-Year), due 2019 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.75% | 2.75% |
Term of notes | 5 years | 5 years |
Carrying Amount | $ 0 | $ 450 |
5.25% 2014 Senior Notes (30-Year), due 2044 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 5.25% | 5.25% |
Term of notes | 30 years | 30 years |
Carrying Amount | $ 599 | $ 598 |
1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 1.75% | 1.75% |
Carrying Amount | $ 558 | $ 569 |
2.75% 2017 Senior Notes, due 2021 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.75% | 2.75% |
Carrying Amount | $ 508 | $ 501 |
2.625% 2017 Senior Notes, due 2023 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.625% | 2.625% |
Carrying Amount | $ 504 | $ 496 |
3.25% 2017 Senior Notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.25% | 3.25% |
Carrying Amount | $ 493 | $ 491 |
3.25% 2018 Senior Notes, due 2021 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.25% | 3.25% |
Carrying Amount | $ 299 | $ 298 |
4.25% 2018 Senior Notes, due 2029 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.25% | 4.25% |
Carrying Amount | $ 394 | $ 394 |
4.875% 2018 Senior Notes, due 2048 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.875% | 4.875% |
Carrying Amount | $ 389 | $ 389 |
0.950% Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 0.95% | |
Carrying Amount | $ 833 | 0 |
Level 2 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 6,078 | 5,783 |
Level 2 | 2010 Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 0 | 518 |
Level 2 | 4.50% 2012 Senior Notes, due 2022 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 531 | 514 |
Level 2 | 4.875% 2013 Senior Notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 551 | 522 |
Level 2 | 2.75% 2014 Senior Notes (5-Year), due 2019 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 0 | 450 |
Level 2 | 5.25% 2014 Senior Notes (30-Year), due 2044 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 757 | 638 |
Level 2 | 1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 604 | 585 |
Level 2 | 2.75% 2017 Senior Notes, due 2021 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 507 | 490 |
Level 2 | 2.625% 2017 Senior Notes, due 2023 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 507 | 477 |
Level 2 | 3.25% 2017 Senior Notes, due 2028 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 523 | 473 |
Level 2 | 3.25% 2018 Senior Notes, due 2021 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 306 | 299 |
Level 2 | 4.25% 2018 Senior Notes, due 2029 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 453 | 407 |
Level 2 | 4.875% 2018 Senior Notes, due 2048 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 492 | 410 |
Level 2 | 0.950% Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | $ 847 | $ 0 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Feb. 11, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 20, 2019 |
Class of Stock [Line Items] | |||||
All classes of stock, shares authorized (in shares) | 1,020,000,000 | ||||
Shares of all classes of stock, par value (in usd per share) | $ 0.01 | ||||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |||
Shares issued during the period for stock-based compensation plans (in shares) | 1,600,000 | ||||
Series Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 10,000,000 | ||||
Treasury Stock | |||||
Class of Stock [Line Items] | |||||
Treasury stock, shares, acquired (in shares) | 5,200,000 | 1,200,000 | 1,600,000 | ||
Accelerated Share Repurchase Initial Date | |||||
Class of Stock [Line Items] | |||||
Accelerated share repurchases payment | $ (500,000,000) | ||||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Dividend declared, declaration date | Feb. 11, 2020 | ||||
Quarterly dividend declared (in dollars per share) | $ 0.56 | ||||
Dividend declared, payable date | Mar. 18, 2020 | ||||
Dividend declared, record date | Feb. 25, 2020 |
Capital Stock - Share Repurchas
Capital Stock - Share Repurchase Programs (Detail) | Dec. 31, 2019USD ($) |
Equity, Class of Treasury Stock [Line Items] | |
Remaining Authority | $ 1,334,000,000 |
October 22, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |
Amount Authorized | 1,000,000,000 |
Remaining Authority | 334,000,000 |
December 16, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |
Amount Authorized | 1,000,000,000 |
Remaining Authority | $ 1,000,000,000 |
Capital Stock - Dividends Paid
Capital Stock - Dividends Paid (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |||||||||||||||
Dividends declared per share (in USD per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.44 | $ 0.44 | $ 0.44 | $ 0.44 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0 | $ 2 | $ 1.76 | $ 1.14 |
Dividends per share paid (in USD per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.44 | $ 0.44 | $ 0.44 | $ 0.44 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 2 | $ 1.76 | $ 1.52 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2019 | |
Operating Leased Assets [Line Items] | ||
Impairment of right-of-use | $ 25 | |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Operating lease, term of contract | 1 year | |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Operating lease, term of contract | 20 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |
Operating lease cost | $ 97 |
Sublease income | (2) |
Variable lease cost | 17 |
Total lease cost | $ 112 |
Leases - Operating Leases Infor
Leases - Operating Leases Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 106 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 41 |
Weighted-average remaining lease term (years) | 6 years 9 months 18 days |
Weighted-average discount rate applied to operating leases (percent) | 3.60% |
Leases - Operating Leases, Futu
Leases - Operating Leases, Future Minimum Payment (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 107 |
2021 | 103 |
2022 | 91 |
2023 | 85 |
2024 | 79 |
Thereafter | 183 |
Total minimum lease payments | 648 |
Less: Interest | 74 |
Present value of lease liabilities: | 574 |
Lease liabilities - current | 89 |
Lease liabilities - noncurrent | $ 485 |
Leases - Operating Lease, Minim
Leases - Operating Lease, Minimum Rent for Payment (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 106 |
2020 | 102 |
2021 | 96 |
2022 | 84 |
2023 | 81 |
Thereafter | 247 |
Total minimum lease payments | $ 716 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Unsupported allegations of minimum underpaid taxes | $ 120 | ||
Litigation settlement, amount awarded to other party | $ 15.5 | $ 16 | $ 0 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)segmentlineOfBusiness | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 2 | |
Number of reportable segments | segment | 2 | |
MIS | ||
Segment Reporting Information [Line Items] | ||
Number of Lines of Businesses | lineOfBusiness | 5 | |
MA | ||
Segment Reporting Information [Line Items] | ||
Number of Lines of Businesses | lineOfBusiness | 3 | |
2018 Restructuring Program | MIS | ||
Segment Reporting Information [Line Items] | ||
Cumulative expense incurred to date | $ 63 | |
2018 Restructuring Program | MA | ||
Segment Reporting Information [Line Items] | ||
Cumulative expense incurred to date | $ 46 | |
Accounting Standards Update 2017-07 | MIS | ||
Segment Reporting Information [Line Items] | ||
Reduction in direct operating costs selling general and administrative expense | $ 8 | |
Accounting Standards Update 2017-07 | MA | ||
Segment Reporting Information [Line Items] | ||
Reduction in direct operating costs selling general and administrative expense | $ 4 |
Segment Information - Financial
Segment Information - Financial Information by Segment (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2013 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||||||||||
Revenue | $ 1,233 | $ 1,240 | $ 1,214 | $ 1,142 | $ 1,060 | $ 1,081 | $ 1,175 | $ 1,127 | $ 4,829 | $ 4,443 | $ 4,204 | |
Total Expense | 2,831 | 2,575 | 2,383 | |||||||||
Operating income | $ 504 | $ 549 | $ 483 | $ 462 | 376 | $ 467 | $ 534 | $ 491 | 1,998 | 1,868 | 1,821 | |
Restructuring | $ 49 | 60 | 49 | 0 | ||||||||
Depreciation and amortization | 200 | 192 | 158 | |||||||||
Acquisition-Related Expenses | 3 | 8 | 23 | |||||||||
Loss pursuant to the divestiture of MAKS | 14 | 0 | 0 | |||||||||
Captive insurance company settlement | $ 15.5 | 16 | 0 | |||||||||
Adjusted Operating Income | 2,291 | 2,117 | 2,002 | |||||||||
Eliminations | ||||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||||||||||
Revenue | (143) | (136) | (128) | |||||||||
Total Expense | (143) | (136) | (128) | |||||||||
Operating income | 0 | 0 | 0 | |||||||||
Restructuring | 0 | 0 | ||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||
Acquisition-Related Expenses | 0 | 0 | 0 | |||||||||
Loss pursuant to the divestiture of MAKS | 0 | 0 | ||||||||||
Captive insurance company settlement | 0 | 0 | ||||||||||
Adjusted Operating Income | 0 | 0 | 0 | |||||||||
MIS | ||||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||||||||||
Revenue | 2,875 | 2,712 | 2,774 | |||||||||
MIS | Operating Segments | ||||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||||||||||
Revenue | 3,009 | 2,836 | 2,886 | |||||||||
Total Expense | 1,376 | 1,276 | 1,314 | |||||||||
Operating income | 1,633 | 1,560 | 1,572 | |||||||||
Restructuring | 31 | 32 | ||||||||||
Depreciation and amortization | 71 | 65 | 74 | |||||||||
Acquisition-Related Expenses | 0 | 0 | 0 | |||||||||
Loss pursuant to the divestiture of MAKS | 0 | 0 | ||||||||||
Captive insurance company settlement | 10 | 0 | ||||||||||
Adjusted Operating Income | 1,745 | 1,657 | 1,646 | |||||||||
MA | ||||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||||||||||
Revenue | 1,954 | 1,731 | 1,430 | |||||||||
MA | Operating Segments | ||||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||||||||||
Revenue | 1,963 | 1,743 | 1,446 | |||||||||
Total Expense | 1,598 | 1,435 | 1,197 | |||||||||
Operating income | 365 | 308 | 249 | |||||||||
Restructuring | 29 | 17 | ||||||||||
Depreciation and amortization | 129 | 127 | 84 | |||||||||
Acquisition-Related Expenses | 3 | 8 | 23 | |||||||||
Loss pursuant to the divestiture of MAKS | 14 | 0 | ||||||||||
Captive insurance company settlement | 6 | 0 | ||||||||||
Adjusted Operating Income | $ 546 | $ 460 | $ 356 |
Segment Information - Consolida
Segment Information - Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,233 | $ 1,240 | $ 1,214 | $ 1,142 | $ 1,060 | $ 1,081 | $ 1,175 | $ 1,127 | $ 4,829 | $ 4,443 | $ 4,204 |
Long-lived assets | 5,968 | 5,667 | 5,968 | 5,667 | 5,710 | ||||||
U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,544 | 2,330 | 2,348 | ||||||||
Long-lived assets | 1,290 | 982 | 1,290 | 982 | 673 | ||||||
Non-U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,285 | 2,113 | 1,856 | ||||||||
Long-lived assets | $ 4,678 | $ 4,685 | 4,678 | 4,685 | 5,037 | ||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,446 | 1,377 | 1,132 | ||||||||
Asia-Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 551 | 493 | 471 | ||||||||
Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 288 | $ 243 | $ 253 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts - Summary of Activity for Valuation Allowances (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance, Accounts receivable allowance | $ (43) | $ (37) | $ (26) |
Charged to costs and expenses, Accounts receivable allowance | (11) | (18) | (20) |
Deductions, Accounts receivable allowance | 11 | 12 | 9 |
Ending balance, Accounts receivable allowance | (43) | (43) | (37) |
Beginning balance, Deferred tax assets valuation allowance | (5) | (6) | (3) |
Charged to costs and expenses, Deferred tax assets valuation allowance | (4) | 0 | (3) |
Deductions, Deferred tax assets valuation allowance | 0 | 1 | 0 |
Ending balance, Deferred tax assets valuation allowance | $ (9) | $ (5) | $ (6) |
Components of Other Non-Operati
Components of Other Non-Operating Income (Expense), Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
FX loss | $ (18) | $ (11) | $ (17) |
Net periodic pension costs - other components | 18 | 10 | 8 |
Income from investments in non-consolidated affiliates | 13 | 14 | 13 |
Other | 7 | 6 | 0 |
Total | $ 20 | $ 19 | $ 4 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
The Moody's Foundation | |
Related Party Transaction [Line Items] | |
Grants made by Moody's Corporation | $ 12 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 1,233 | $ 1,240 | $ 1,214 | $ 1,142 | $ 1,060 | $ 1,081 | $ 1,175 | $ 1,127 | $ 4,829 | $ 4,443 | $ 4,204 |
Operating income | 504 | 549 | 483 | 462 | 376 | 467 | 534 | 491 | 1,998 | 1,868 | 1,821 |
Net income attributable to Moody’s | $ 359 | $ 380 | $ 310 | $ 373 | $ 251 | $ 310 | $ 376 | $ 373 | $ 1,422 | $ 1,310 | $ 1,001 |
Basic (in USD per share) | $ 1.91 | $ 2.01 | $ 1.64 | $ 1.96 | $ 1.31 | $ 1.62 | $ 1.96 | $ 1.95 | $ 7.51 | $ 6.84 | $ 5.24 |
Diluted (in USD per share) | $ 1.88 | $ 1.99 | $ 1.62 | $ 1.93 | $ 1.29 | $ 1.59 | $ 1.94 | $ 1.92 | $ 7.42 | $ 6.74 | $ 5.15 |
Quarterly Financial Data - Addi
Quarterly Financial Data - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interim Period, Costs Not Allocable [Line Items] | ||||||
Restructuring | $ 49 | $ 60 | $ 49 | $ 0 | ||
Tax Cuts and Jobs Act, income tax benefit | $ (65) | |||||
After Tax | ||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||
Restructuring | $ 41 | $ 37 | ||||
Non-U.S. | ||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||
Unrecognized tax benefits, increase (decrease) | $ 64 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | Feb. 13, 2020 | Feb. 11, 2020 |
Subsequent Event [Line Items] | ||
Dividend declared, declaration date | Feb. 11, 2020 | |
Dividend declared, per share (in dollars per share) | $ 0.56 | |
Dividend declared, payable date | Mar. 18, 2020 | |
Dividend declared, record date | Feb. 25, 2020 | |
Regulatory DataCorp | ||
Subsequent Event [Line Items] | ||
Consideration transferred | $ 700 |
Uncategorized Items - mco-20191
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | Parent [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 156,000,000 |
Accounting Standards Update 2016-01 [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 |
Accounting Standards Update 2016-01 [Member] | Parent [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (2,000,000) |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 2,000,000 |
Accounting Standards Update 2018-02 [Member] | Parent [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 |
Accounting Standards Update 2016-16 [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (5,000,000) |
Accounting Standards Update 2016-16 [Member] | Parent [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (5,000,000) |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ (5,000,000) |