Cover Page
Cover Page shares in Millions | 3 Months Ended |
Mar. 31, 2023 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2023 |
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 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 Common Stock, Shares Outstanding (in shares) | 183.5 |
Entity Central Index Key | 0001059556 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Common Stock, par value $0.01 per share | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | MCO |
Security Exchange Name | NYSE |
1.75% Senior Notes Due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.75% Senior Notes Due 2027 |
Trading Symbol | MCO 27 |
Security Exchange Name | NYSE |
0.950% Senior Notes Due 2030 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.950% Senior Notes Due 2030 |
Trading Symbol | MCO 30 |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 1,470 | $ 1,522 |
Expenses | ||
Operating | 428 | 417 |
Selling, general, and administrative | 386 | 371 |
Depreciation and amortization | 88 | 78 |
Restructuring | 14 | 0 |
Total expenses | 916 | 866 |
Operating income | 554 | 656 |
Non-operating (expense) income, net | ||
Interest expense, net | (48) | (53) |
Other non-operating income (expense), net | 0 | 6 |
Total non-operating (expense) income, net | (48) | (47) |
Income before provision for income taxes | 506 | 609 |
Provision for income taxes | 5 | 111 |
Net income attributable to Moody's | $ 501 | $ 498 |
Earnings per share attributable to Moody's common shareholders | ||
Basic (in usd per share) | $ 2.73 | $ 2.69 |
Diluted (in usd per share) | $ 2.72 | $ 2.68 |
Weighted average number of shares outstanding | ||
Basic (in shares) | 183.3 | 185.1 |
Diluted (in shares) | 184.1 | 186.1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 501 | $ 498 |
Other Comprehensive Income (Loss): | ||
Foreign currency translation adjustments - Pre Tax | 109 | (108) |
Foreign currency translation adjustments - Tax | (2) | 1 |
Foreign currency translation adjustments - Net of Tax | 107 | (107) |
Net gains on net investment hedges - Pre Tax | (76) | 64 |
Net gains on net investment hedges - Tax | 19 | (17) |
Net gains on net investment hedges - Net of Tax | (57) | 47 |
Cash Flow Hedges: | ||
Reclassification of losses included in net income - Pre Tax | 1 | 1 |
Reclassification of losses included in net income - Tax | 0 | 0 |
Reclassification of losses included in net income - Net of Tax | 1 | 1 |
Pension and Other Retirement Benefits: | ||
Net actuarial (losses) and prior service costs - Pre Tax | 0 | (3) |
Net actuarial (losses) and prior service costs - Tax | 0 | 1 |
Net actuarial (losses) and prior service costs - Net of Tax | 0 | (2) |
Total other comprehensive (loss) income - Pre Tax | 34 | (46) |
Total other comprehensive income (loss) - Tax | 17 | (15) |
Total other comprehensive income (loss) - Net of Tax | 51 | (61) |
Comprehensive income | 552 | 437 |
Less: comprehensive (loss) income attributable to noncontrolling interests | (3) | 0 |
Comprehensive Income Attributable to Moody's | $ 555 | $ 437 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,119 | $ 1,769 |
Short-term investments | 78 | 90 |
Accounts receivable, net of allowance for credit losses of $38 in 2023 and $40 in 2022 | 1,712 | 1,652 |
Other current assets | 517 | 583 |
Total current assets | 4,426 | 4,094 |
Property and equipment, net of accumulated depreciation of $1,153 in 2023 and $1,123 in 2022 | 525 | 502 |
Operating lease right-of-use assets | 332 | 346 |
Goodwill | 5,892 | 5,839 |
Intangible assets, net | 2,177 | 2,210 |
Deferred tax assets, net | 268 | 266 |
Other assets | 1,099 | 1,092 |
Total assets | 14,719 | 14,349 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 805 | 1,011 |
Current portion of operating lease liabilities | 106 | 106 |
Current portion of long-term debt | 499 | 0 |
Deferred revenue | 1,578 | 1,258 |
Total current liabilities | 2,988 | 2,375 |
Non-current portion of deferred revenue | 70 | 75 |
Long-term debt | 6,963 | 7,389 |
Deferred tax liabilities, net | 476 | 457 |
Uncertain tax positions | 205 | 322 |
Operating lease liabilities | 349 | 368 |
Other liabilities | 610 | 674 |
Total liabilities | 11,661 | 11,660 |
Contingencies | ||
Shareholders' equity: | ||
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Capital surplus | 1,068 | 1,054 |
Retained earnings | 13,979 | 13,618 |
Treasury stock, at cost; 159,404,478 and 159,702,362 shares of common stock at March 31, 2023 and December 31, 2022, respectively | (11,570) | (11,513) |
Accumulated other comprehensive loss | (589) | (643) |
Total Moody's shareholders' equity | 2,891 | 2,519 |
Noncontrolling interests | 167 | 170 |
Total shareholders' equity | 3,058 | 2,689 |
Total liabilities, noncontrolling interests, and shareholders' equity | 14,719 | 14,349 |
Series Common Stock | ||
Shareholders' equity: | ||
Common stock | 0 | 0 |
Non Series Common Stock | ||
Shareholders' equity: | ||
Common stock | $ 3 | $ 3 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, allowances | $ 38 | $ 40 |
Accumulated depreciation, property and equipment | $ 1,153 | $ 1,123 |
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 |
Treasury stock, shares (in shares) | 159,404,478 | 159,702,362 |
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 |
Non Series Common Stock | ||
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 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net Income | $ 501 | $ 498 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 88 | 78 |
Stock-based compensation | 47 | 46 |
Deferred income taxes | 0 | 30 |
Changes in assets and liabilities: | ||
Accounts receivable | (51) | (117) |
Other current assets | 74 | (11) |
Other assets | (21) | (21) |
Lease obligations | (5) | (2) |
Accounts payable and accrued liabilities | (178) | (296) |
Deferred revenue | 296 | 290 |
Uncertain tax positions | (119) | (18) |
Other liabilities | (24) | (7) |
Net cash provided by operating activities | 608 | 470 |
Cash flows from investing activities | ||
Capital additions | (73) | (59) |
Purchases of investments | (45) | (46) |
Sales and maturities of investments | 55 | 27 |
Cash paid for acquisitions, net of cash acquired | 0 | (83) |
Net cash used in investing activities | (63) | (161) |
Cash flows from financing activities | ||
Proceeds from stock-based compensation plans | 11 | 8 |
Treasury shares | (41) | (560) |
Cash paid for ASR contract relating to shares retained by counterparty until final settlement | 0 | (98) |
Repurchase of shares related to stock-based compensation | (45) | (58) |
Dividends | (141) | (130) |
Issuance of notes | 0 | 491 |
Debt issuance costs and related fees | 0 | (5) |
Net cash used in financing activities | (216) | (352) |
Effect of exchange rate changes on cash and cash equivalents | 21 | (18) |
Increase (decrease) in cash and cash equivalents | 350 | (61) |
Cash and cash equivalents, beginning of period | 1,769 | 1,811 |
Cash and cash equivalents, end of period | $ 2,119 | $ 1,750 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Total Moody's Shareholders' Equity | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Non- Controlling Interests | |
Common stock, shares issued beginning balance (in shares) at Dec. 31, 2021 | 342,900,000 | ||||||||
Treasury stock, common, beginning balance (shares) at Dec. 31, 2021 | (157,300,000) | ||||||||
Beginning Balance at Dec. 31, 2021 | $ 2,916 | $ 2,727 | $ 3 | $ 885 | $ 12,762 | $ (10,513) | $ (410) | $ 189 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 498 | 498 | 498 | ||||||
Dividends | (129) | (128) | (128) | (1) | |||||
Stock-based compensation | 46 | 46 | 46 | ||||||
Shares issued for stock-based compensation plans at average cost, net | (74) | (74) | (42) | $ (32) | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 500,000 | ||||||||
Shares issued as consideration to acquire kompany | [1] | 44 | 44 | 35 | $ 9 | ||||
Shares issued as consideration to acquire kompany (shares) | [1] | 100,000 | |||||||
Treasury shares repurchased | (560) | (560) | $ (560) | ||||||
Treasury shares repurchased (in shares) | (1,700,000) | ||||||||
Accelerated Share Repurchase pending final settlement | (98) | (98) | (98) | ||||||
Currency translation adjustment, net of net investment hedge activity (net of tax) | (60) | (60) | (60) | ||||||
Net actuarial gains and prior service cost (net of tax) | (2) | (2) | (2) | ||||||
Net realized and unrealized gain on cash flow hedges | 1 | 1 | 1 | ||||||
Common stock, shares issued ending balance (in shares) at Mar. 31, 2022 | 342,900,000 | ||||||||
Treasury stock, common, ending balance (shares) at Mar. 31, 2022 | (158,400,000) | ||||||||
Ending Balance at Mar. 31, 2022 | $ 2,582 | 2,394 | $ 3 | 826 | 13,132 | $ (11,096) | (471) | 188 | |
Common stock, shares issued beginning balance (in shares) at Dec. 31, 2022 | 342,900,000 | ||||||||
Treasury stock, common, beginning balance (shares) at Dec. 31, 2022 | (159,702,362) | (159,700,000) | |||||||
Beginning Balance at Dec. 31, 2022 | $ 2,689 | 2,519 | $ 3 | 1,054 | 13,618 | $ (11,513) | (643) | 170 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 501 | 501 | 501 | ||||||
Dividends | (140) | (140) | (140) | ||||||
Stock-based compensation | 47 | 47 | 47 | ||||||
Shares issued for stock-based compensation plans at average cost, net | (48) | (48) | (33) | $ (15) | |||||
Shares issued for stock-based compensation plans at average cost, net (in shares) | 400,000 | ||||||||
Treasury shares repurchased | (42) | (42) | 0 | $ (42) | |||||
Treasury shares repurchased (in shares) | (100,000) | ||||||||
Currency translation adjustment, net of net investment hedge activity (net of tax) | 50 | 53 | 53 | (3) | |||||
Net actuarial gains and prior service cost (net of tax) | 0 | ||||||||
Net realized and unrealized gain on cash flow hedges | $ 1 | 1 | 1 | ||||||
Common stock, shares issued ending balance (in shares) at Mar. 31, 2023 | 342,900,000 | ||||||||
Treasury stock, common, ending balance (shares) at Mar. 31, 2023 | (159,404,478) | (159,400,000) | |||||||
Ending Balance at Mar. 31, 2023 | $ 3,058 | $ 2,891 | $ 3 | $ 1,068 | $ 13,979 | $ (11,570) | $ (589) | $ 167 | |
[1]Represents a non-cash investing activity relating to the issuance of common stock to fund a portion of the purchase price for kompany. |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends (in usd per share) | $ 0.77 | $ 0.70 |
Currency translation adjustment, net of net investment hedge activity, tax expense (benefit) | $ 17 | $ 16 |
Net actuarial gains and prior service cost, tax expense (benefit) | $ 0 | $ 1 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
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 global integrated risk assessment firm that empowers organizations and investors to make better decisions. Moody’s reports in two reportable segments: MA and MIS. MA is a global provider of: i) data and information; ii) research and insights; and iii) decision solutions, which help companies make better and faster decisions. MA leverages its industry expertise across multiple risks such as credit, market, financial crime, supply chain, catastrophe and climate to deliver integrated risk assessment solutions that enable business leaders to identify, measure and manage the implications of interrelated risks and opportunities. MIS publishes credit ratings and provides assessment services on a wide range of debt obligations, programs and facilities, and the entities that issue such obligations in markets worldwide, including various corporate, financial institution and governmental obligations, and structured finance securities. These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the Company’s consolidated financial statements and related notes in the Company’s 2022 annual report on Form 10-K filed with the SEC on February 15, 2023. The results of interim periods are not necessarily indicative of results for the full year or any subsequent period. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the periods presented have been included. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Certain reclassifications have been made to prior period amounts to conform to the current presentation. Adoption of New Accounting Standards in 2023 In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope,” which clarified the scope and application of the original guidance, ASU No. 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU No. 2020-04"), issued in March 2020 (codified into ASC Topic 848 "Reference Rate Reform"). ASU No. 2020-04 provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform—Deferral of the Sunset Date of Topic 848," which deferred the sunset date of Topic 848 to December 31, 2024. These ASU's were effective upon issuance and the amendments may be applied prospectively through December 31, 2024 as the transition from LIBOR is completed. During the first quarter of 2023, the Company modified the contractual terms of certain of its interest rate swaps designated as fair value hedges and cross-currency swaps designated as net investment hedges. These modifications replaced the previous LIBOR/EURIBOR-based reference rates included in the swap agreements to SOFR/ESTR-based rates. Pursuant to the modification of the contractual terms of these instruments, the Company utilized the optional expedients set forth in ASC Topic 848 relating to derivative instruments used in hedging relationships. The aggregate notional amounts of these swaps is disclosed in Note 8. |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Revenue by Category The following table presents the Company’s revenues disaggregated by LOB: Three Months Ended March 31, 2023 2022 MA: Decision Solutions $ 354 $ 334 Research and Insights 195 183 Data and Information 188 178 Total external revenue 737 695 Intersegment revenue 3 2 Total MA 740 697 MIS: Corporate Finance (CFG) Investment-grade 115 114 High-yield 32 39 Bank loans 59 113 Other accounts (1) 150 151 Total CFG 356 417 Structured Finance (SFG) Asset-backed securities 27 32 RMBS 25 35 CMBS 14 38 Structured credit 32 39 Other accounts 1 — Total SFG 99 144 Financial Institutions (FIG) Banking 100 89 Insurance 33 34 Managed investments 6 5 Other accounts 3 3 Total FIG 142 131 Public, Project and Infrastructure Finance (PPIF) Public finance / sovereign 52 58 Project and infrastructure 77 65 Total PPIF 129 123 Total ratings revenue 726 815 MIS Other 7 12 Total external revenue 733 827 Intersegment revenue 45 43 Total MIS 778 870 Eliminations (48) (45) Total MCO $ 1,470 $ 1,522 (1) 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. The following table presents the Company’s revenues disaggregated by LOB and geographic area: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 U.S. Non-U.S Total U.S. Non-U.S Total MA: Decision Solutions $ 152 $ 202 $ 354 $ 147 $ 187 $ 334 Research and Insights 105 90 195 103 80 183 Data and Information 67 121 188 60 118 178 Total MA 324 413 737 310 385 695 MIS: Corporate Finance 246 110 356 275 142 417 Structured Finance 61 38 99 97 47 144 Financial Institutions 63 79 142 65 66 131 Public, Project and Infrastructure Finance 76 53 129 75 48 123 Total ratings revenue 446 280 726 512 303 815 MIS Other — 7 7 1 11 12 Total MIS 446 287 733 513 314 827 Total MCO $ 770 $ 700 $ 1,470 $ 823 $ 699 $ 1,522 The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region: Three Months Ended March 31, 2023 2022 MA: U.S. $ 324 $ 310 Non-U.S.: EMEA 278 264 Asia-Pacific 80 67 Americas 55 54 Total Non-U.S. 413 385 Total MA 737 695 MIS: U.S. 446 513 Non-U.S.: EMEA 173 193 Asia-Pacific 71 74 Americas 43 47 Total Non-U.S. 287 314 Total MIS 733 827 Total MCO $ 1,470 $ 1,522 The following tables summarize the split between Transaction Revenue and Recurring Revenue. Three Months Ended March 31, 2023 2022 Transaction Recurring Total Transaction Recurring Total Decision Solutions $ 43 $ 311 $ 354 $ 43 $ 291 $ 334 12 % 88 % 100 % 13 % 87 % 100 % Research and Insights $ 2 $ 193 $ 195 $ 1 $ 182 $ 183 1 % 99 % 100 % 1 % 99 % 100 % Data and Information $ — $ 188 $ 188 $ — $ 178 $ 178 — % 100 % 100 % — % 100 % 100 % Total MA $ 45 (1) $ 692 $ 737 $ 44 $ 651 $ 695 6 % 94 % 100 % 6 % 94 % 100 % Corporate Finance $ 230 $ 126 $ 356 $ 293 $ 124 $ 417 65 % 35 % 100 % 70 % 30 % 100 % Structured Finance $ 45 $ 54 $ 99 $ 93 $ 51 $ 144 45 % 55 % 100 % 65 % 35 % 100 % Financial Institutions $ 70 $ 72 $ 142 $ 61 $ 70 $ 131 49 % 51 % 100 % 47 % 53 % 100 % Public, Project and Infrastructure Finance $ 86 $ 43 $ 129 $ 79 $ 44 $ 123 67 % 33 % 100 % 64 % 36 % 100 % MIS Other $ — $ 7 $ 7 $ 3 $ 9 $ 12 — % 100 % 100 % 25 % 75 % 100 % Total MIS $ 431 $ 302 $ 733 $ 529 $ 298 $ 827 59 % 41 % 100 % 64 % 36 % 100 % Total Moody's Corporation $ 476 $ 994 $ 1,470 $ 573 $ 949 $ 1,522 32 % 68 % 100 % 38 % 62 % 100 % (1) Revenue from software implementation services and risk management advisory projects, while classified by management as transactional revenue, is recognized over time under U.S. GAAP (please also refer to the following table). The following table presents the timing of revenue recognition: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 MA MIS Total MA MIS Total Revenue recognized at a point in time $ 27 $ 431 $ 458 $ 41 $ 529 $ 570 Revenue recognized over time 710 302 1,012 654 298 952 Total $ 737 $ 733 $ 1,470 $ 695 $ 827 $ 1,522 Unbilled receivables, deferred revenue and remaining performance obligations Unbilled receivables 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. In addition, certain MIS arrangements contain contractual terms whereby the customers are billed in arrears for annual monitoring services, requiring revenue to be accrued as an unbilled receivable as such services are provided. The following table presents the Company's unbilled receivables, which are included within accounts receivable, net, at March 31, 2023 and December 31, 2022: As of March 31, 2023 As of December 31, 2022 MA MIS MA MIS Unbilled Receivables $ 114 $ 439 $ 148 $ 385 Deferred revenue The Company recognizes deferred revenue when a contract requires a customer to pay consideration to the Company in advance of when revenue related to that contract 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 three months ended March 31, 2023 and 2022 are as follows: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 MA MIS Total MA MIS Total Balance at December 31, $ 1,055 $ 278 $ 1,333 $ 1,039 $ 296 $ 1,335 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (471) (98) (569) (431) (95) (526) Increases due to amounts billable excluding amounts recognized as revenue during the period 688 179 867 636 178 814 Increases due to acquisitions during the period — — — 1 — 1 Effect of exchange rate changes 16 1 17 (11) (2) (13) Total changes in deferred revenue 233 82 315 195 81 276 Balance at March 31, $ 1,288 $ 360 $ 1,648 $ 1,234 $ 377 $ 1,611 Deferred revenue - current $ 1,287 $ 291 $ 1,578 $ 1,231 $ 294 $ 1,525 Deferred revenue - non-current $ 1 $ 69 $ 70 $ 3 $ 83 $ 86 The increase in deferred revenue during both the three months ended March 31, 2023 and 2022 is primarily due to the significant portion of contract renewals that occur during the first quarter within both segments. Remaining performance obligations Remaining performance obligations in the MA segment include both amounts recorded as deferred revenue on the balance sheet as of March 31, 2023 as well as amounts not yet invoiced to customers as of March 31, 2023, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of March 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $3.3 billion. The Company expects to recognize into revenue approximately 65% of this balance within one year, approximately 25% of this balance between one 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 March 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $98 million. The Company expects to recognize into revenue approximately 25% of this balance within one year, approximately 50% of this balance between one |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations: Three Months Ended March 31, 2023 2022 Stock-based compensation cost $ 47 $ 46 Tax benefit $ 10 $ 11 During the first three months of 2023, the Company granted 0.1 million employee stock options, which had a weighted average grant date fair value of $94.67 per share. The Company also granted 0.6 million shares of restricted stock in the first three months of 2023, which had a weighted average grant date fair value of $295.53 per share. Both the employee stock options and restricted stock generally vest ratably over four years. Additionally, the Company granted 0.1 million shares of performance-based awards whereby the number of shares that ultimately vest are based on the achievement of certain non-market-based performance metrics of the Company over three years. The weighted average grant date fair value of these awards was $286.04 per share. The following weighted average assumptions were used in determining the fair value using the Black-Scholes option-pricing model for options granted in 2023: Expected dividend yield 1.04 % Expected stock volatility 29 % Risk-free interest rate 4.18 % Expected holding period 5.8 years Unrecognized stock-based compensation expense at March 31, 2023 was $20 million and $354 million for stock options and unvested restricted stock, respectively, which is expected to be recognized over a weighted average period of 2.2 years and 2.8 years, respectively. Additionally, there was $43 million of unrecognized stock-based compensation expense relating to the aforementioned non-market-based performance-based awards, which is expected to be recognized over a weighted average period of 2.4 years. The following table summarizes information relating to stock option exercises and restricted stock vesting: Three Months Ended 2023 2022 Exercise of stock options: Proceeds from stock option exercises $ 7 $ 3 Aggregate intrinsic value $ 15 $ 4 Tax benefit realized upon exercise $ 4 $ 1 Number of shares exercised (1) 0.1 — Vesting of restricted stock: Fair value of shares vested $ 140 $ 166 Tax benefit realized upon vesting $ 33 $ 39 Number of shares vested 0.5 0.5 Vesting of performance-based restricted stock: Fair value of shares vested $ 24 $ 50 Tax benefit realized upon vesting $ 3 $ 7 Number of shares vested 0.1 0.2 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Moody’s effective tax rate (ETR) was 1.0% and 18.2% for the three months ended March 31, 2023 and 2022, respectively. The 17.2% decrease in the ETR for the three months ended March 31, 2023 compared to the same period in the prior year was primarily due to tax benefits recognized in the first quarter of 2023, which reflect the resolutions of uncertain tax positions in various U.S. and non-U.S. tax jurisdictions. The Company’s first quarter 2023 provision for income taxes differs from the tax computed by applying its estimated annual effective tax rate to the pre-tax earnings primarily due to the following items recognized in 2023: i) net reductions in UTPs of $117 million related to the resolutions of UTPs; and ii) excess tax benefits from stock-based compensation of $6 million. The Company classifies interest related to UTPs in interest expense, net in its consolidated statements of operations. Penalties, if incurred, would be recognized in other non-operating income (expense), net. 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 2019 through 2020 are currently under examination and 2021 remains open to examination. The Company’s New York City tax returns for 2015 through 2019 are currently under examination. The Company’s U.K. tax returns for 2017 through 2021 remain open to examination. For ongoing audits, it is possible the balance of UTPs could decrease in the next twelve months as a result of the settlement of such 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 will be raised by tax authorities which could necessitate increases to the balance of UTPs. As the Company is unable to predict the timing or outcome of these audits, it is unable to estimate the amount of changes to the balance of UTPs at this time. However, the Company believes that it has adequately provided for its financial exposure relating to all open tax years, by tax jurisdiction, in accordance with the applicable provisions of ASC Topic 740 regarding UTPs. The following table shows the amount the Company paid for income taxes: Three Months Ended March 31, 2023 2022 Income taxes paid $ 66 $ 70 In August 2022, the U.S. Congress passed the Inflation Reduction Act, which included a corporate minimum tax on book earnings of 15%, an excise tax on corporate share repurchases of 1%, and certain climate change and energy tax credit incentives. The adoption of a corporate minimum tax of 15% is not expected to impact Moody’s ETR. The excise tax of 1% on corporate share buybacks will not have an impact on the Company’s ETR for 2023. |
RECONCILIATION OF WEIGHTED AVER
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING | 3 Months Ended |
Mar. 31, 2023 | |
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: Three Months Ended March 31, 2023 2022 Basic 183.3 185.1 Dilutive effect of shares issuable under stock-based compensation plans 0.8 1.0 Diluted 184.1 186.1 Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above 0.7 0.3 The calculation of diluted EPS requires certain assumptions regarding the use of both cash proceeds and assumed proceeds that would be received upon the exercise of stock options and vesting of restricted stock outstanding as of March 31, 2023 and 2022. |
ACCELERATED SHARE REPURCHASE PR
ACCELERATED SHARE REPURCHASE PROGRAM | 3 Months Ended |
Mar. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
ACCELERATED SHARE REPURCHASE PROGRAM | ACCELERATED SHARE REPURCHASE PROGRAM On March 1, 2022, 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 1.2 million shares of its common stock. Final settlement of the ASR agreement was completed in April 2022 and the Company received delivery of an additional 0.3 million shares of the Company’s common stock. In total, the Company repurchased 1.5 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 $324.20 per 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Balance sheet location Cost Gains/(Losses) Fair Value Cash and cash equivalents Short-term Other Certificates of deposit and money market deposit accounts (1) $ 729 $ — $ 729 $ 645 $ 78 $ 6 Mutual funds $ 80 $ 3 $ 83 $ — $ — $ 83 As of December 31, 2022 Balance sheet location Cost Gains/(Losses) Fair Value Cash and cash Short-term Other Certificates of deposit and money market deposit accounts (1) $ 914 $ — $ 914 $ 808 $ 90 $ 16 Mutual funds $ 71 $ — $ 71 $ — $ — $ 71 (1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments are one month to 12 months at both March 31, 2023 and December 31, 2022. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 months to 21 months at March 31, 2023 and 13 months to 24 months at December 31, 2022. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents. In addition, the Company invests in Corporate-Owned Life Insurance (COLI). As of March 31, 2023 and December 31, 2022, the contract value of the COLI was $44 million and $40 million, respectively. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2023 | |
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: Fair Value Hedges Interest Rate Swaps 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 SOFR. 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 statements of operations. The following table summarizes the Company’s interest rate swaps designated as fair value hedges: As of March 31, 2023 As of December 31, 2022 Hedged Item Nature of Swap Notional Amount Floating Interest Rate (1) Notional Amount Floating Interest Rate 2017 Senior Notes due 2028 Pay Floating/Receive Fixed $ 500 SOFR $ 500 3-month LIBOR 2020 Senior Notes due 2025 Pay Floating/Receive Fixed 300 SOFR 300 6-month LIBOR 2014 Senior Notes due 2044 Pay Floating/Receive Fixed 300 SOFR 300 3-month LIBOR 2018 Senior Notes due 2048 Pay Floating/Receive Fixed 300 SOFR 300 3-month LIBOR 2018 Senior Notes due 2029 Pay Floating/Receive Fixed 400 SOFR 400 SOFR 2022 Senior Notes due 2052 Pay Floating/Receive Fixed 500 SOFR 500 SOFR 2022 Senior Notes due 2032 Pay Floating/Receive Fixed 250 SOFR 250 SOFR Total $ 2,550 $ 2,550 (1) Contractual terms of instruments using the 3-month or 6-month LIBOR at December 31, 2022 were modified to the SOFR reference rate in the first quarter of 2023. Refer to Note 14 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 statements 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/(loss) recognized in the consolidated statements of operations Three Months Ended March 31, 2023 2022 Interest expense, net $ (48) $ (53) Descriptions Location on Consolidated Statements of Operations Net interest settlements and accruals on interest rate swaps Interest expense, net $ (18) $ 6 Fair value changes on interest rate swaps Interest expense, net $ 46 $ (85) Fair value changes on hedged debt Interest expense, net $ (46) $ 85 Net investment hedges Debt designated as 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 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. 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. Cross currency swaps designated as net investment hedges 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: March 31, 2023 Pay Receive Nature of Swap Notional Amount Weighted Average Interest Rate Notional Amount Weighted Average Interest Rate Pay Fixed/Receive Fixed € 765 3.67% $ 800 5.25% Pay Floating/Receive Floating 2,138 Based on ESTR 2,250 Based on SOFR Total € 2,903 $ 3,050 December 31, 2022 Pay Receive Nature of Swap Notional Amount Weighted Average Interest Rate Notional Amount Weighted Average Interest Rate Pay Fixed/Receive Fixed € 765 3.67% $ 800 5.25% Pay Floating/Receive Floating 450 Based on 3-month EURIBOR 500 Based on 3-month USD LIBOR Pay Floating/Receive Floating 1,688 Based on ESTR 1,750 Based on SOFR Total € 2,903 $ 3,050 As of March 31, 2023 these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company: Years Ending December 31, 2026 € 450 2027 € 531 2028 € 588 2029 € 373 2031 € 481 2032 € 480 Total € 2,903 The following tables provide information on the gains/(losses) on the Company’s net investment and cash flow hedges: Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax Amount of Loss Reclassified from AOCL into Income, net of Tax Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2023 2022 2023 2022 2023 2022 Cross currency swaps $ (39) $ 24 $ — $ — $ 16 $ 10 Long-term debt (18) 23 — — — — Total net investment hedges $ (57) $ 47 $ — $ — $ 16 $ 10 Derivatives in Cash Flow Hedging Relationships Interest rate contracts $ — $ — $ (1) $ (1) $ — $ — Total cash flow hedges $ — $ — $ (1) $ (1) $ — $ — Total $ (57) $ 47 $ (1) $ (1) $ 16 $ 10 The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCL is as follows: Cumulative Gains/(Losses), net of tax March 31, 2023 December 31, 2022 Net investment hedges Cross currency swaps $ 79 $ 118 FX forwards 29 29 Long-term debt 20 38 Total net investment hedges $ 128 $ 185 Cash flow hedges Interest rate contracts $ (46) $ (47) Cross currency swaps 2 2 Total cash flow hedges (44) (45) Total net gain in AOCL $ 84 $ 140 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 ASC Topic 815. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating income (expense), net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through May 2023. The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: March 31, 2023 December 31, 2022 Notional amount of currency pair: Sell Buy Sell Buy Contracts to sell USD for GBP $ 295 £ 241 $ 170 £ 146 Contracts to sell USD for Japanese yen $ 15 ¥ 2,000 $ 24 ¥ 3,500 Contracts to sell USD for Canadian dollars $ 78 C$ 105 $ 87 C$ 120 Contracts to sell USD for Singapore dollars $ 52 S$ 70 $ 50 S$ 70 Contracts to sell USD for euros $ 160 € 148 $ 116 € 115 Contracts to sell USD for Indian rupee $ 23 ₹ 1,900 $ 19 ₹ 1,600 Contracts to sell euros for USD € 25 $ 27 € 85 $ 89 NOTE: € = euro, £ = British pound, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar, S$= Singapore dollars, ₹= Indian rupee The following table summarizes the impact to the consolidated statements of operations relating to the net losses on the Company’s derivatives which are not designated as hedging instruments: Derivatives not designated as accounting hedges Location on Consolidated Statements of Operations Three Months Ended March 31, 2023 2022 FX forwards Other non-operating income, net $ 5 $ (19) The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instrument 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 March 31, 2023 December 31, 2022 Assets: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other assets $ 12 $ 27 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Other current assets 4 19 Total assets $ 16 $ 46 Liabilities: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other liabilities $ 115 $ 78 Interest rate swaps designated as fair value hedges Other liabilities 192 239 Total derivatives designated as accounting hedges 307 317 Non-derivatives designated as accounting hedges: Long-term debt designated as net investment hedge Long-term debt 1,358 1,334 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Accounts payable and accrued liabilities 1 2 Total liabilities $ 1,666 $ 1,653 |
GOODWILL AND OTHER ACQUIRED INT
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
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 for the periods indicated: Three Months Ended March 31, 2023 MA MIS Consolidated Gross goodwill Accumulated Net Gross goodwill Accumulated impairment Net Gross goodwill Accumulated Net Balance at beginning $ 5,474 $ (12) $ 5,462 $ 377 $ — $ 377 $ 5,851 $ (12) $ 5,839 Additions/ adjustments (1) 90 — 90 (90) — (90) — — — Foreign currency translation adjustments 56 — 56 (3) — (3) 53 — 53 Ending balance $ 5,620 $ (12) $ 5,608 $ 284 $ — $ 284 $ 5,904 $ (12) $ 5,892 Year Ended December 31, 2022 MA MIS Consolidated Gross goodwill Accumulated impairment charge Net goodwill Gross goodwill Accumulated impairment charge Net goodwill Gross goodwill Accumulated impairment charge Net goodwill Balance at beginning $ 5,615 $ (12) $ 5,603 $ 396 $ — $ 396 $ 6,011 $ (12) $ 5,999 Additions/ adjustments (2) 88 — 88 4 — 4 92 — 92 Foreign currency translation (229) — (229) (23) — (23) (252) — (252) Ending balance $ 5,474 $ (12) $ 5,462 $ 377 $ — $ 377 $ 5,851 $ (12) $ 5,839 (1) The 2023 additions/adjustments relate to a reallocation of goodwill pursuant to a realignment of certain components of the Company's ESG business in the first quarter of 2023. (2) The 2022 additions/adjustments for the MA segment in the table above primarily relate to the acquisition of kompany in the first quarter of 2022. Acquired intangible assets and related amortization consisted of: March 31, December 31, Customer relationships $ 2,043 $ 2,024 Accumulated amortization (480) (453) Net customer relationships 1,563 1,571 Software/product technology 667 661 Accumulated amortization (305) (283) Net software/product technology 362 378 Database 178 178 Accumulated amortization (69) (64) Net database 109 114 Trade names 198 197 Accumulated amortization (62) (58) Net trade names 136 139 Other (1) 52 52 Accumulated amortization (45) (44) Net other 7 8 Total acquired intangible assets, net $ 2,177 $ 2,210 (1) Other intangible assets primarily consist of trade secrets, covenants not to compete, and acquired ratings methodologies and models. Amortization expense relating to acquired intangible assets is as follows: Three Months Ended March 31, 2023 2022 Amortization expense $ 51 $ 51 |
RESTRUCTURING
RESTRUCTURING | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING On June 30, 2022, the chief executive officer of Moody’s approved a restructuring program (the “2022 - 2023 Geolocation Restructuring Program”). T he Company estimates that the program will result in annualized savings of $120 million to $140 million per year. This program relates to the Company's post-COVID-19 geolocation strategy and includes the rationalization and exit of certain leased office spaces and a reduction in staff, including the relocation of certain job functions. The exit from certain leased office spaces began in the fourth quarter of 2022 and is expected to result in $50 million to $70 million of pre-tax charges from vacating the affected office spaces, a large portion of which Moody's intends to sublease. The program also includes $105 million to $120 million of pre-tax personnel-related restructuring charges, an amount that includes severance costs, expense related to the modification of equity awards, and related costs primarily determined under the Company’s existing severance plans. The savings generated from the 2022 - 2023 Geolocation Restructuring Program are expected to strengthen the Company's operating margin, with a portion being deployed to support strategic investments, including the Company's workplace of the future program and employee retention initiatives. The 2022 - 2023 Geolocation Restructuring Program is expected to be substantially complete by the end of 2023. Cash outlays associated with this program, which primarily relate to personnel-related costs, are expected to be $105 million to $120 million, which are expected to be paid through 2024. Substantially all of the $14 million in restructuring charges recognized during the quarter ended March 31, 2023 relate to employee termination costs. Changes to the restructuring liability for the aforementioned restructuring programs during the first three months of 2023 were as follows: Balance as of December 31, 2022 $ 65 2022 - 2023 Geolocation Restructuring Program: Cost incurred and adjustments $ 14 Cash payments and adjustments $ (42) Balance as of March 31, 2023 $ 37 Cumulative expense incurred through March 31, 2023 Employee Real Estate Related Other Costs Total 2022 - 2023 Geolocation Restructuring Program $ 98 $ 28 $ 1 $ 127 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The table below presents information about items that are carried at fair value at March 31, 2023 and December 31, 2022: Fair Value Measurement as of March 31, 2023 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 16 $ — $ 16 Mutual funds 83 83 — Total $ 99 $ 83 $ 16 Liabilities: Derivatives (1) $ 308 $ — $ 308 Total $ 308 $ — $ 308 Fair Value Measurement as of December 31, 2022 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 46 $ — $ 46 Mutual funds 71 71 — Total $ 117 $ 71 $ 46 Liabilities: Derivatives (1) $ 319 $ — $ 319 Total $ 319 $ — $ 319 (1) Represents FX forward contracts, interest rate swaps and cross-currency swaps as more fully described in Note 8 to the condensed 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. 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 AND STATEME
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Other Balance Sheet And Statement Of Operations Information [Abstract] | |
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION | OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION The following tables contain additional detail related to certain balance sheet captions: March 31, 2023 December 31, 2022 Other current assets: Prepaid taxes $ 191 $ 235 Prepaid expenses 131 119 Capitalized costs to obtain and fulfill sales contracts 117 106 Foreign exchange forwards on certain assets and liabilities 4 19 Other 74 104 Total other current assets $ 517 $ 583 Other assets: Investments in non-consolidated affiliates $ 520 $ 517 Deposits for real-estate leases 15 15 Indemnification assets related to acquisitions 112 110 Mutual funds and fixed deposits 89 87 Company owned life insurance (at contract value) 44 40 Costs to obtain sales contracts 181 171 Derivative instruments designated as accounting hedges 12 27 Pension and other retirement employee benefits 41 40 Other 85 85 Total other assets $ 1,099 $ 1,092 Accounts payable and accrued liabilities: Salaries and benefits $ 135 $ 104 Incentive compensation 88 276 Customer credits, advanced payments and advanced billings 110 102 Dividends 4 6 Professional service fees 47 49 Accrued interest 85 144 Accounts payable 70 52 Income taxes 84 86 Pension and other retirement employee benefits 7 7 Accrued royalties 31 23 Foreign exchange forwards on certain assets and liabilities 1 2 Restructuring liability 37 65 Other 106 95 Total accounts payable and accrued liabilities $ 805 $ 1,011 Other liabilities: Pension and other retirement employee benefits $ 195 $ 189 Interest accrued on UTPs 28 47 MAKS indemnification provisions 19 23 Income tax liability - non-current portion 15 48 Derivative instruments designated as accounting hedges 307 317 Other 46 50 Total other liabilities $ 610 $ 674 Investments in non-consolidated affiliates: The following table provides additional detail regarding Moody's investments in non-consolidated affiliates, as included in other assets in the consolidated balance sheets: March 31, 2023 December 31, 2022 Equity method investments (1) $ 190 $ 187 Investments measured using the measurement alternative (2) 325 325 Other 5 5 Total investments in non-consolidated affiliates $ 520 $ 517 (1) Equity securities in which the Company has significant influence over the investee but does not have a controlling financial interest in accordance with ASC Topic 323. (2) Equity securities without readily determinable fair value for which the Company has elected to apply the measurement alternative in accordance with ASC Topic 321. Moody's holds various investments accounted for under the equity method, the most significant of which is the Company's minority investment in CCXI. Moody's also holds various investments measured using the measurement alternative, the most significant of which is the Company's minority interest in BitSight. Earnings from non-consolidated affiliates, which are included within other non-operating income (expense), net, are disclosed within the table below. Other non-operating income (expense), net: The following table summarizes the components of other non-operating income (expense), net: Three Months Ended March 31, 2023 2022 FX (loss) gain (1) $ (26) $ — Net periodic pension costs - other components 9 6 Income from investments in non-consolidated affiliates 2 2 Other (2) 15 (2) Total $ — $ 6 (1) The amount for the three months ended March 31, 2023 includes a $23 million loss recorded pursuant to an immaterial out-of-period adjustment relating to the 2022 fiscal year. (2) The amount for the three months ended March 31, 2023 reflects a benefit of $9 million related to the favorable resolutions of various tax matters and gains of $4 million on certain of the Company's investments. |
COMPREHENSIVE INCOME AND ACCUMU
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables show changes in AOCL by component (net of tax): Three Months Ended March 31, 2023 2022 Gains/(Losses) Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance at December 31, $ (47) $ (45) $ (736) $ 185 $ (643) $ (49) $ (47) $ (335) $ 21 $ (410) Other comprehensive income/(loss) before reclassifications — — 110 (57) 53 (2) — (107) 47 (62) Amounts reclassified from AOCL — 1 — — 1 — 1 — — 1 Other comprehensive income/(loss) — 1 110 (57) 54 (2) 1 (107) 47 (61) Balance at March 31, $ (47) $ (44) $ (626) $ 128 $ (589) $ (51) $ (46) $ (442) $ 68 $ (471) |
INDEBTEDNESS
INDEBTEDNESS | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS 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 certain debt as depicted in the table below, which is 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 following table summarizes total indebtedness: March 31, 2023 Notes Payable: Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value 4.875% 2013 Senior Notes, due 2024 $ 500 $ — $ — $ (1) $ 499 5.25% 2014 Senior Notes, due 2044 600 (37) 3 (4) 562 1.75% 2015 Senior Notes, due 2027 543 — — (2) 541 3.25% 2017 Senior Notes, due 2028 500 (31) (3) (2) 464 4.25% 2018 Senior Notes, due 2029 400 (34) (2) (2) 362 4.875% 2018 Senior Notes, due 2048 400 (38) (6) (4) 352 0.950% 2019 Senior Notes, due 2030 815 — (2) (4) 809 3.75% 2020 Senior Notes, due 2025 700 (23) — (3) 674 3.25% 2020 Senior Notes, due 2050 300 — (4) (3) 293 2.55% 2020 Senior Notes, due 2060 300 — (2) (3) 295 2.00% 2021 Senior Notes, due 2031 600 — (7) (4) 589 2.75% 2021 Senior Notes, due 2041 600 — (13) (5) 582 3.10% 2021 Senior Notes, due 2061 500 — (7) (5) 488 3.75% 2022 Senior Notes, due 2052 500 (21) (8) (5) 466 4.25% 2022 Senior Notes, due 2032 500 (8) (2) (4) 486 Total debt $ 7,758 $ (192) $ (53) $ (51) $ 7,462 Current portion (499) Total long-term debt $ 6,963 December 31, 2022 Notes Payable: Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value 4.875% 2013 Senior Notes, due 2024 $ 500 $ — $ (1) $ (1) $ 498 5.25% 2014 Senior Notes, due 2044 600 (42) 3 (4) 557 1.75% 2015 Senior Notes, due 2027 534 — — (2) 532 3.25% 2017 Senior Notes, due 2028 500 (37) (3) (2) 458 4.25% 2018 Senior Notes, due 2029 400 (42) (2) (2) 354 4.875% 2018 Senior Notes, due 2048 400 (44) (6) (4) 346 0.950% 2019 Senior Notes, due 2030 800 — (2) (4) 794 3.75% 2020 Senior Notes, due 2025 700 (27) (1) (3) 669 3.25% 2020 Senior Notes, due 2050 300 — (4) (3) 293 2.55% 2020 Senior Notes, due 2060 300 — (2) (3) 295 2.00% 2021 Senior Notes, due 2031 600 — (7) (4) 589 2.75% 2021 Senior Notes, due 2041 600 — (13) (5) 582 3.10% 2021 Senior Notes, due 2061 500 — (7) (5) 488 3.75% 2022 Senior Notes, due 2052 500 (35) (8) (5) 452 4.25% 2022 Senior Notes, due 2032 500 (12) (2) (4) 482 Total long-term debt $ 7,734 $ (239) $ (55) $ (51) $ 7,389 (1) The fair value of interest rate swaps in the table above represents the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt. Notes Payable At March 31, 2023, 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 March 31, 2023, there were no such cross defaults. The repayment schedule for the Company’s borrowings is as follows: Year Ending December 31, Year Ending Total 2023 (After March 31,) $ — 2024 500 2025 700 2026 — 2027 543 Thereafter 6,015 Total $ 7,758 Interest expense, net The following table summarizes the components of interest as presented in the consolidated statements of operations and the cash paid for interest: Three Months Ended March 31, 2023 2022 Income $ 10 $ 2 Expense on borrowings (70) (48) Income (expense) on UTPs and other tax related liabilities (1) 18 (3) Net periodic pension costs - interest component (6) (4) Interest expense, net $ (48) $ (53) Interest paid (2) $ 96 $ 78 (1) The amount for the three months ended March 31, 2023 reflects a $22 million reduction of tax-related interest expense primarily related to the resolutions of tax matters. (2) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 8. The fair value and carrying value of the Company’s debt as of March 31, 2023 and December 31, 2022 are as follows: March 31, 2023 December 31, 2022 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt $ 7,462 $ 6,744 $ 7,389 $ 6,564 The fair value of the Company’s debt is estimated based on quoted prices in active markets as of the reporting date, which are considered Level 1 inputs within the fair value hierarchy. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASESThe 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 term from one year to 20 years at the Company’s discretion. The following table presents the components of the Company’s lease cost: Three Months Ended March 31, 2023 2022 Operating lease cost $ 24 $ 27 Sublease income (2) (2) Variable lease cost 5 5 Total lease cost $ 27 $ 30 The following tables present other information related to the Company’s operating leases: Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 30 $ 31 Right-of-use assets obtained in exchange for new operating lease liabilities $ 5 $ 15 March 31, 2023 March 31, 2022 Weighted-average remaining lease term 4.8 years 5.5 years Weighted-average discount rate applied to operating leases 3.1 % 3.1 % The following table presents a maturity analysis of the future minimum lease payments included within the Company’s operating lease liabilities at March 31, 2023: Year Ending December 31, Operating Leases 2023 (After March 31,) $ 90 2024 113 2025 100 2026 81 2027 65 After 2027 41 Total lease payments (undiscounted) 490 Less: Interest 35 Present value of lease liabilities: $ 455 Lease liabilities - current $ 106 Lease liabilities - noncurrent $ 349 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Given the nature of the Company's 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 4 to the condensed consolidated financial statements. 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company is organized into two operating segments: MA and MIS and accordingly, the Company reports in two reportable segments: MA and MIS. 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 - Decision Solutions, Research and Insights, and Data and Information. The MIS segment consists of five LOBs. The CFG, FIG, PPIF and SFG 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, ICRA non-ratings revenue and revenue from providing professional services. 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. Additionally, revenue for MIS and expenses for MA include intersegment fees charged to MA for the rights to use and distribute content, data and products developed by MIS. These intersegment fees are generally based on the market value of the products and services being transferred between the segments. 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 costs and corporate expenses that benefit both segments, costs are allocated to each segment based on the segment’s share of full-year 2018 actual revenue which comprises a “Baseline Pool” established in 2019, which 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. “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 and Adjusted 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 2 for further details on the components of the Company’s revenue. Three Months Ended March 31, 2023 2022 MA MIS Eliminations Consolidated MA MIS Eliminations Consolidated Total external revenue $ 737 $ 733 $ — $ 1,470 $ 695 $ 827 $ — $ 1,522 Intersegment revenue 3 45 (48) — 2 43 (45) — Revenue 740 778 (48) 1,470 697 870 (45) 1,522 Operating, SG&A 526 336 (48) 814 473 360 (45) 788 Adjusted Operating Income $ 214 $ 442 $ — $ 656 $ 224 $ 510 $ — $ 734 Add: Depreciation and 70 18 — 88 60 18 — 78 Restructuring 8 6 — 14 — — — — Operating Income $ 554 $ 656 The table below shows cumulative restructuring expense incurred through March 31, 2023 by reportable segment. MA MIS Total 2022 - 2023 Geolocation Restructuring Program $ 57 $ 70 $ 127 The costs expected to be incurred related to the 2022 - 2023 Geolocation Restructuring Program are $75 million - $100 million for the MA segment and $80 million - $90 million for the MIS segment. The restructuring program is more fully discussed in Note 10. Consolidated Revenue Information by Geographic Area Three Months Ended March 31, 2023 2022 United States $ 770 $ 823 Non-U.S.: EMEA 451 457 Asia-Pacific 151 141 Americas 98 101 Total Non-U.S. 700 699 Total $ 1,470 $ 1,522 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTOn April 24, 2023, the Board approved the declaration of a quarterly dividend of $0.77 per share of Moody’s common stock, payable on June 9, 2023 to shareholders of record at the close of business on May 19, 2023. |
Description of Business and B_2
Description of Business and Basis of Presentation - (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Standards in 2023 | Adoption of New Accounting Standards in 2023In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope,” which clarified the scope and application of the original guidance, ASU No. 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU No. 2020-04"), issued in March 2020 (codified into ASC Topic 848 "Reference Rate Reform"). ASU No. 2020-04 provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform—Deferral of the Sunset Date of Topic 848," which deferred the sunset date of Topic 848 to December 31, 2024. These ASU's were effective upon issuance and the amendments may be applied prospectively through December 31, 2024 as the transition from LIBOR is completed. |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by LOB: Three Months Ended March 31, 2023 2022 MA: Decision Solutions $ 354 $ 334 Research and Insights 195 183 Data and Information 188 178 Total external revenue 737 695 Intersegment revenue 3 2 Total MA 740 697 MIS: Corporate Finance (CFG) Investment-grade 115 114 High-yield 32 39 Bank loans 59 113 Other accounts (1) 150 151 Total CFG 356 417 Structured Finance (SFG) Asset-backed securities 27 32 RMBS 25 35 CMBS 14 38 Structured credit 32 39 Other accounts 1 — Total SFG 99 144 Financial Institutions (FIG) Banking 100 89 Insurance 33 34 Managed investments 6 5 Other accounts 3 3 Total FIG 142 131 Public, Project and Infrastructure Finance (PPIF) Public finance / sovereign 52 58 Project and infrastructure 77 65 Total PPIF 129 123 Total ratings revenue 726 815 MIS Other 7 12 Total external revenue 733 827 Intersegment revenue 45 43 Total MIS 778 870 Eliminations (48) (45) Total MCO $ 1,470 $ 1,522 (1) 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. Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 U.S. Non-U.S Total U.S. Non-U.S Total MA: Decision Solutions $ 152 $ 202 $ 354 $ 147 $ 187 $ 334 Research and Insights 105 90 195 103 80 183 Data and Information 67 121 188 60 118 178 Total MA 324 413 737 310 385 695 MIS: Corporate Finance 246 110 356 275 142 417 Structured Finance 61 38 99 97 47 144 Financial Institutions 63 79 142 65 66 131 Public, Project and Infrastructure Finance 76 53 129 75 48 123 Total ratings revenue 446 280 726 512 303 815 MIS Other — 7 7 1 11 12 Total MIS 446 287 733 513 314 827 Total MCO $ 770 $ 700 $ 1,470 $ 823 $ 699 $ 1,522 The following tables summarize the split between Transaction Revenue and Recurring Revenue. Three Months Ended March 31, 2023 2022 Transaction Recurring Total Transaction Recurring Total Decision Solutions $ 43 $ 311 $ 354 $ 43 $ 291 $ 334 12 % 88 % 100 % 13 % 87 % 100 % Research and Insights $ 2 $ 193 $ 195 $ 1 $ 182 $ 183 1 % 99 % 100 % 1 % 99 % 100 % Data and Information $ — $ 188 $ 188 $ — $ 178 $ 178 — % 100 % 100 % — % 100 % 100 % Total MA $ 45 (1) $ 692 $ 737 $ 44 $ 651 $ 695 6 % 94 % 100 % 6 % 94 % 100 % Corporate Finance $ 230 $ 126 $ 356 $ 293 $ 124 $ 417 65 % 35 % 100 % 70 % 30 % 100 % Structured Finance $ 45 $ 54 $ 99 $ 93 $ 51 $ 144 45 % 55 % 100 % 65 % 35 % 100 % Financial Institutions $ 70 $ 72 $ 142 $ 61 $ 70 $ 131 49 % 51 % 100 % 47 % 53 % 100 % Public, Project and Infrastructure Finance $ 86 $ 43 $ 129 $ 79 $ 44 $ 123 67 % 33 % 100 % 64 % 36 % 100 % MIS Other $ — $ 7 $ 7 $ 3 $ 9 $ 12 — % 100 % 100 % 25 % 75 % 100 % Total MIS $ 431 $ 302 $ 733 $ 529 $ 298 $ 827 59 % 41 % 100 % 64 % 36 % 100 % Total Moody's Corporation $ 476 $ 994 $ 1,470 $ 573 $ 949 $ 1,522 32 % 68 % 100 % 38 % 62 % 100 % (1) Revenue from software implementation services and risk management advisory projects, while classified by management as transactional revenue, is recognized over time under U.S. GAAP (please also refer to the following table). The following table presents the timing of revenue recognition: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 MA MIS Total MA MIS Total Revenue recognized at a point in time $ 27 $ 431 $ 458 $ 41 $ 529 $ 570 Revenue recognized over time 710 302 1,012 654 298 952 Total $ 737 $ 733 $ 1,470 $ 695 $ 827 $ 1,522 |
Company's Reportable Segment Revenues Disaggregated by Segment and Geographic Region | The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region: Three Months Ended March 31, 2023 2022 MA: U.S. $ 324 $ 310 Non-U.S.: EMEA 278 264 Asia-Pacific 80 67 Americas 55 54 Total Non-U.S. 413 385 Total MA 737 695 MIS: U.S. 446 513 Non-U.S.: EMEA 173 193 Asia-Pacific 71 74 Americas 43 47 Total Non-U.S. 287 314 Total MIS 733 827 Total MCO $ 1,470 $ 1,522 Three Months Ended March 31, 2023 2022 United States $ 770 $ 823 Non-U.S.: EMEA 451 457 Asia-Pacific 151 141 Americas 98 101 Total Non-U.S. 700 699 Total $ 1,470 $ 1,522 |
Schedule of Unbilled Receivables | The following table presents the Company's unbilled receivables, which are included within accounts receivable, net, at March 31, 2023 and December 31, 2022: As of March 31, 2023 As of December 31, 2022 MA MIS MA MIS Unbilled Receivables $ 114 $ 439 $ 148 $ 385 |
Schedule of Changes in the Deferred Revenue Balances | Significant changes in the deferred revenue balances during the three months ended March 31, 2023 and 2022 are as follows: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 MA MIS Total MA MIS Total Balance at December 31, $ 1,055 $ 278 $ 1,333 $ 1,039 $ 296 $ 1,335 Changes in deferred revenue Revenue recognized that was included in the deferred revenue balance at the beginning of the period (471) (98) (569) (431) (95) (526) Increases due to amounts billable excluding amounts recognized as revenue during the period 688 179 867 636 178 814 Increases due to acquisitions during the period — — — 1 — 1 Effect of exchange rate changes 16 1 17 (11) (2) (13) Total changes in deferred revenue 233 82 315 195 81 276 Balance at March 31, $ 1,288 $ 360 $ 1,648 $ 1,234 $ 377 $ 1,611 Deferred revenue - current $ 1,287 $ 291 $ 1,578 $ 1,231 $ 294 $ 1,525 Deferred revenue - non-current $ 1 $ 69 $ 70 $ 3 $ 83 $ 86 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation Cost and Associated Tax Benefit | Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations: Three Months Ended March 31, 2023 2022 Stock-based compensation cost $ 47 $ 46 Tax benefit $ 10 $ 11 |
Weighted Average Assumptions used in Determining Fair Value for Options Granted | The following weighted average assumptions were used in determining the fair value using the Black-Scholes option-pricing model for options granted in 2023: Expected dividend yield 1.04 % Expected stock volatility 29 % Risk-free interest rate 4.18 % Expected holding period 5.8 years |
Stock Option Exercises and Restricted Stock Vesting | The following table summarizes information relating to stock option exercises and restricted stock vesting: Three Months Ended 2023 2022 Exercise of stock options: Proceeds from stock option exercises $ 7 $ 3 Aggregate intrinsic value $ 15 $ 4 Tax benefit realized upon exercise $ 4 $ 1 Number of shares exercised (1) 0.1 — Vesting of restricted stock: Fair value of shares vested $ 140 $ 166 Tax benefit realized upon vesting $ 33 $ 39 Number of shares vested 0.5 0.5 Vesting of performance-based restricted stock: Fair value of shares vested $ 24 $ 50 Tax benefit realized upon vesting $ 3 $ 7 Number of shares vested 0.1 0.2 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Paid | The following table shows the amount the Company paid for income taxes: Three Months Ended March 31, 2023 2022 Income taxes paid $ 66 $ 70 |
RECONCILIATION OF WEIGHTED AV_2
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic to Diluted Shares Outstanding | Below is a reconciliation of basic to diluted shares outstanding: Three Months Ended March 31, 2023 2022 Basic 183.3 185.1 Dilutive effect of shares issuable under stock-based compensation plans 0.8 1.0 Diluted 184.1 186.1 Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above 0.7 0.3 |
CASH EQUIVALENTS AND INVESTME_2
CASH EQUIVALENTS AND INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents and Investments | The table below provides additional information on the Company’s cash equivalents and investments: As of March 31, 2023 Balance sheet location Cost Gains/(Losses) Fair Value Cash and cash equivalents Short-term Other Certificates of deposit and money market deposit accounts (1) $ 729 $ — $ 729 $ 645 $ 78 $ 6 Mutual funds $ 80 $ 3 $ 83 $ — $ — $ 83 As of December 31, 2022 Balance sheet location Cost Gains/(Losses) Fair Value Cash and cash Short-term Other Certificates of deposit and money market deposit accounts (1) $ 914 $ — $ 914 $ 808 $ 90 $ 16 Mutual funds $ 71 $ — $ 71 $ — $ — $ 71 (1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments are one month to 12 months at both March 31, 2023 and December 31, 2022. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 months to 21 months at March 31, 2023 and 13 months to 24 months at December 31, 2022. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes the Company’s interest rate swaps designated as fair value hedges: As of March 31, 2023 As of December 31, 2022 Hedged Item Nature of Swap Notional Amount Floating Interest Rate (1) Notional Amount Floating Interest Rate 2017 Senior Notes due 2028 Pay Floating/Receive Fixed $ 500 SOFR $ 500 3-month LIBOR 2020 Senior Notes due 2025 Pay Floating/Receive Fixed 300 SOFR 300 6-month LIBOR 2014 Senior Notes due 2044 Pay Floating/Receive Fixed 300 SOFR 300 3-month LIBOR 2018 Senior Notes due 2048 Pay Floating/Receive Fixed 300 SOFR 300 3-month LIBOR 2018 Senior Notes due 2029 Pay Floating/Receive Fixed 400 SOFR 400 SOFR 2022 Senior Notes due 2052 Pay Floating/Receive Fixed 500 SOFR 500 SOFR 2022 Senior Notes due 2032 Pay Floating/Receive Fixed 250 SOFR 250 SOFR Total $ 2,550 $ 2,550 (1) Contractual terms of instruments using the 3-month or 6-month LIBOR at December 31, 2022 were modified to the SOFR reference rate in the first quarter of 2023. March 31, 2023 Pay Receive Nature of Swap Notional Amount Weighted Average Interest Rate Notional Amount Weighted Average Interest Rate Pay Fixed/Receive Fixed € 765 3.67% $ 800 5.25% Pay Floating/Receive Floating 2,138 Based on ESTR 2,250 Based on SOFR Total € 2,903 $ 3,050 December 31, 2022 Pay Receive Nature of Swap Notional Amount Weighted Average Interest Rate Notional Amount Weighted Average Interest Rate Pay Fixed/Receive Fixed € 765 3.67% $ 800 5.25% Pay Floating/Receive Floating 450 Based on 3-month EURIBOR 500 Based on 3-month USD LIBOR Pay Floating/Receive Floating 1,688 Based on ESTR 1,750 Based on SOFR Total € 2,903 $ 3,050 |
Gains and Losses on Derivatives Designated as Hedging Instruments | The following table summarizes the impact to the statements 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/(loss) recognized in the consolidated statements of operations Three Months Ended March 31, 2023 2022 Interest expense, net $ (48) $ (53) Descriptions Location on Consolidated Statements of Operations Net interest settlements and accruals on interest rate swaps Interest expense, net $ (18) $ 6 Fair value changes on interest rate swaps Interest expense, net $ 46 $ (85) Fair value changes on hedged debt Interest expense, net $ (46) $ 85 |
Schedule of Net Investment Hedges, Notional Amount That Will Be Settled At Expiry | As of March 31, 2023 these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company: Years Ending December 31, 2026 € 450 2027 € 531 2028 € 588 2029 € 373 2031 € 481 2032 € 480 Total € 2,903 |
Amount of Gain/(Loss) Recognized in AOCI on Derivative Net Investment Hedging Relationships (Effectiveness Portion) | The following tables provide information on the gains/(losses) on the Company’s net investment and cash flow hedges: Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax Amount of Loss Reclassified from AOCL into Income, net of Tax Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2023 2022 2023 2022 2023 2022 Cross currency swaps $ (39) $ 24 $ — $ — $ 16 $ 10 Long-term debt (18) 23 — — — — Total net investment hedges $ (57) $ 47 $ — $ — $ 16 $ 10 Derivatives in Cash Flow Hedging Relationships Interest rate contracts $ — $ — $ (1) $ (1) $ — $ — Total cash flow hedges $ — $ — $ (1) $ (1) $ — $ — Total $ (57) $ 47 $ (1) $ (1) $ 16 $ 10 |
Components of Accumulated Other Comprehensive Income | The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCL is as follows: Cumulative Gains/(Losses), net of tax March 31, 2023 December 31, 2022 Net investment hedges Cross currency swaps $ 79 $ 118 FX forwards 29 29 Long-term debt 20 38 Total net investment hedges $ 128 $ 185 Cash flow hedges Interest rate contracts $ (46) $ (47) Cross currency swaps 2 2 Total cash flow hedges (44) (45) Total net gain in AOCL $ 84 $ 140 The following tables show changes in AOCL by component (net of tax): Three Months Ended March 31, 2023 2022 Gains/(Losses) Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance at December 31, $ (47) $ (45) $ (736) $ 185 $ (643) $ (49) $ (47) $ (335) $ 21 $ (410) Other comprehensive income/(loss) before reclassifications — — 110 (57) 53 (2) — (107) 47 (62) Amounts reclassified from AOCL — 1 — — 1 — 1 — — 1 Other comprehensive income/(loss) — 1 110 (57) 54 (2) 1 (107) 47 (61) Balance at March 31, $ (47) $ (44) $ (626) $ 128 $ (589) $ (51) $ (46) $ (442) $ 68 $ (471) |
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards | The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards: March 31, 2023 December 31, 2022 Notional amount of currency pair: Sell Buy Sell Buy Contracts to sell USD for GBP $ 295 £ 241 $ 170 £ 146 Contracts to sell USD for Japanese yen $ 15 ¥ 2,000 $ 24 ¥ 3,500 Contracts to sell USD for Canadian dollars $ 78 C$ 105 $ 87 C$ 120 Contracts to sell USD for Singapore dollars $ 52 S$ 70 $ 50 S$ 70 Contracts to sell USD for euros $ 160 € 148 $ 116 € 115 Contracts to sell USD for Indian rupee $ 23 ₹ 1,900 $ 19 ₹ 1,600 Contracts to sell euros for USD € 25 $ 27 € 85 $ 89 NOTE: € = euro, £ = British pound, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar, S$= Singapore dollars, ₹= Indian rupee |
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 losses on the Company’s derivatives which are not designated as hedging instruments: Derivatives not designated as accounting hedges Location on Consolidated Statements of Operations Three Months Ended March 31, 2023 2022 FX forwards Other non-operating income, net $ 5 $ (19) |
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 the derivative instrument 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 March 31, 2023 December 31, 2022 Assets: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other assets $ 12 $ 27 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Other current assets 4 19 Total assets $ 16 $ 46 Liabilities: Derivatives designated as accounting hedges: Cross-currency swaps designated as net investment hedges Other liabilities $ 115 $ 78 Interest rate swaps designated as fair value hedges Other liabilities 192 239 Total derivatives designated as accounting hedges 307 317 Non-derivatives designated as accounting hedges: Long-term debt designated as net investment hedge Long-term debt 1,358 1,334 Derivatives not designated as accounting hedges: FX forwards on certain assets and liabilities Accounts payable and accrued liabilities 1 2 Total liabilities $ 1,666 $ 1,653 |
GOODWILL AND OTHER ACQUIRED I_2
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Activity in Goodwill | The following table summarizes the activity in goodwill for the periods indicated: Three Months Ended March 31, 2023 MA MIS Consolidated Gross goodwill Accumulated Net Gross goodwill Accumulated impairment Net Gross goodwill Accumulated Net Balance at beginning $ 5,474 $ (12) $ 5,462 $ 377 $ — $ 377 $ 5,851 $ (12) $ 5,839 Additions/ adjustments (1) 90 — 90 (90) — (90) — — — Foreign currency translation adjustments 56 — 56 (3) — (3) 53 — 53 Ending balance $ 5,620 $ (12) $ 5,608 $ 284 $ — $ 284 $ 5,904 $ (12) $ 5,892 Year Ended December 31, 2022 MA MIS Consolidated Gross goodwill Accumulated impairment charge Net goodwill Gross goodwill Accumulated impairment charge Net goodwill Gross goodwill Accumulated impairment charge Net goodwill Balance at beginning $ 5,615 $ (12) $ 5,603 $ 396 $ — $ 396 $ 6,011 $ (12) $ 5,999 Additions/ adjustments (2) 88 — 88 4 — 4 92 — 92 Foreign currency translation (229) — (229) (23) — (23) (252) — (252) Ending balance $ 5,474 $ (12) $ 5,462 $ 377 $ — $ 377 $ 5,851 $ (12) $ 5,839 (1) The 2023 additions/adjustments relate to a reallocation of goodwill pursuant to a realignment of certain components of the Company's ESG business in the first quarter of 2023. (2) The 2022 additions/adjustments for the MA segment in the table above primarily relate to the acquisition of kompany in the first quarter of 2022. |
Acquired Intangible Assets and Related Amortization | Acquired intangible assets and related amortization consisted of: March 31, December 31, Customer relationships $ 2,043 $ 2,024 Accumulated amortization (480) (453) Net customer relationships 1,563 1,571 Software/product technology 667 661 Accumulated amortization (305) (283) Net software/product technology 362 378 Database 178 178 Accumulated amortization (69) (64) Net database 109 114 Trade names 198 197 Accumulated amortization (62) (58) Net trade names 136 139 Other (1) 52 52 Accumulated amortization (45) (44) Net other 7 8 Total acquired intangible assets, net $ 2,177 $ 2,210 (1) Other intangible assets primarily consist of trade secrets, 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: Three Months Ended March 31, 2023 2022 Amortization expense $ 51 $ 51 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses Included in Consolidated Statements of Operations | The table below shows cumulative restructuring expense incurred through March 31, 2023 by reportable segment. MA MIS Total 2022 - 2023 Geolocation Restructuring Program $ 57 $ 70 $ 127 |
Changes to the Restructuring Liability | Changes to the restructuring liability for the aforementioned restructuring programs during the first three months of 2023 were as follows: Balance as of December 31, 2022 $ 65 2022 - 2023 Geolocation Restructuring Program: Cost incurred and adjustments $ 14 Cash payments and adjustments $ (42) Balance as of March 31, 2023 $ 37 Cumulative expense incurred through March 31, 2023 Employee Real Estate Related Other Costs Total 2022 - 2023 Geolocation Restructuring Program $ 98 $ 28 $ 1 $ 127 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Carried at Fair Value on Recurring Basis | The table below presents information about items that are carried at fair value at March 31, 2023 and December 31, 2022: Fair Value Measurement as of March 31, 2023 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 16 $ — $ 16 Mutual funds 83 83 — Total $ 99 $ 83 $ 16 Liabilities: Derivatives (1) $ 308 $ — $ 308 Total $ 308 $ — $ 308 Fair Value Measurement as of December 31, 2022 Description Balance Level 1 Level 2 Assets: Derivatives (1) $ 46 $ — $ 46 Mutual funds 71 71 — Total $ 117 $ 71 $ 46 Liabilities: Derivatives (1) $ 319 $ — $ 319 Total $ 319 $ — $ 319 (1) Represents FX forward contracts, interest rate swaps and cross-currency swaps as more fully described in Note 8 to the condensed consolidated financial statements. |
OTHER BALANCE SHEET AND STATE_2
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Balance Sheet And Statement Of Operations Information [Abstract] | |
Additional Details Related to Certain Balance Sheet Captions | The following tables contain additional detail related to certain balance sheet captions: March 31, 2023 December 31, 2022 Other current assets: Prepaid taxes $ 191 $ 235 Prepaid expenses 131 119 Capitalized costs to obtain and fulfill sales contracts 117 106 Foreign exchange forwards on certain assets and liabilities 4 19 Other 74 104 Total other current assets $ 517 $ 583 Other assets: Investments in non-consolidated affiliates $ 520 $ 517 Deposits for real-estate leases 15 15 Indemnification assets related to acquisitions 112 110 Mutual funds and fixed deposits 89 87 Company owned life insurance (at contract value) 44 40 Costs to obtain sales contracts 181 171 Derivative instruments designated as accounting hedges 12 27 Pension and other retirement employee benefits 41 40 Other 85 85 Total other assets $ 1,099 $ 1,092 Accounts payable and accrued liabilities: Salaries and benefits $ 135 $ 104 Incentive compensation 88 276 Customer credits, advanced payments and advanced billings 110 102 Dividends 4 6 Professional service fees 47 49 Accrued interest 85 144 Accounts payable 70 52 Income taxes 84 86 Pension and other retirement employee benefits 7 7 Accrued royalties 31 23 Foreign exchange forwards on certain assets and liabilities 1 2 Restructuring liability 37 65 Other 106 95 Total accounts payable and accrued liabilities $ 805 $ 1,011 Other liabilities: Pension and other retirement employee benefits $ 195 $ 189 Interest accrued on UTPs 28 47 MAKS indemnification provisions 19 23 Income tax liability - non-current portion 15 48 Derivative instruments designated as accounting hedges 307 317 Other 46 50 Total other liabilities $ 610 $ 674 |
Investments in and Advances to Affiliates | The following table provides additional detail regarding Moody's investments in non-consolidated affiliates, as included in other assets in the consolidated balance sheets: March 31, 2023 December 31, 2022 Equity method investments (1) $ 190 $ 187 Investments measured using the measurement alternative (2) 325 325 Other 5 5 Total investments in non-consolidated affiliates $ 520 $ 517 (1) Equity securities in which the Company has significant influence over the investee but does not have a controlling financial interest in accordance with ASC Topic 323. (2) Equity securities without readily determinable fair value for which the Company has elected to apply the measurement alternative in accordance with ASC Topic 321. |
Other Non-Operating | The following table summarizes the components of other non-operating income (expense), net: Three Months Ended March 31, 2023 2022 FX (loss) gain (1) $ (26) $ — Net periodic pension costs - other components 9 6 Income from investments in non-consolidated affiliates 2 2 Other (2) 15 (2) Total $ — $ 6 (1) The amount for the three months ended March 31, 2023 includes a $23 million loss recorded pursuant to an immaterial out-of-period adjustment relating to the 2022 fiscal year. (2) The amount for the three months ended March 31, 2023 reflects a benefit of $9 million related to the favorable resolutions of various tax matters and gains of $4 million on certain of the Company's investments. |
COMPREHENSIVE INCOME AND ACCU_2
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Reclassifications out of AOCI | |
Components of Accumulated Other Comprehensive Income | The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCL is as follows: Cumulative Gains/(Losses), net of tax March 31, 2023 December 31, 2022 Net investment hedges Cross currency swaps $ 79 $ 118 FX forwards 29 29 Long-term debt 20 38 Total net investment hedges $ 128 $ 185 Cash flow hedges Interest rate contracts $ (46) $ (47) Cross currency swaps 2 2 Total cash flow hedges (44) (45) Total net gain in AOCL $ 84 $ 140 The following tables show changes in AOCL by component (net of tax): Three Months Ended March 31, 2023 2022 Gains/(Losses) Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Pension and Other Retirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustments Net Investment Hedges Total Balance at December 31, $ (47) $ (45) $ (736) $ 185 $ (643) $ (49) $ (47) $ (335) $ 21 $ (410) Other comprehensive income/(loss) before reclassifications — — 110 (57) 53 (2) — (107) 47 (62) Amounts reclassified from AOCL — 1 — — 1 — 1 — — 1 Other comprehensive income/(loss) — 1 110 (57) 54 (2) 1 (107) 47 (61) Balance at March 31, $ (47) $ (44) $ (626) $ 128 $ (589) $ (51) $ (46) $ (442) $ 68 $ (471) |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Total Indebtedness | The following table summarizes total indebtedness: March 31, 2023 Notes Payable: Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value 4.875% 2013 Senior Notes, due 2024 $ 500 $ — $ — $ (1) $ 499 5.25% 2014 Senior Notes, due 2044 600 (37) 3 (4) 562 1.75% 2015 Senior Notes, due 2027 543 — — (2) 541 3.25% 2017 Senior Notes, due 2028 500 (31) (3) (2) 464 4.25% 2018 Senior Notes, due 2029 400 (34) (2) (2) 362 4.875% 2018 Senior Notes, due 2048 400 (38) (6) (4) 352 0.950% 2019 Senior Notes, due 2030 815 — (2) (4) 809 3.75% 2020 Senior Notes, due 2025 700 (23) — (3) 674 3.25% 2020 Senior Notes, due 2050 300 — (4) (3) 293 2.55% 2020 Senior Notes, due 2060 300 — (2) (3) 295 2.00% 2021 Senior Notes, due 2031 600 — (7) (4) 589 2.75% 2021 Senior Notes, due 2041 600 — (13) (5) 582 3.10% 2021 Senior Notes, due 2061 500 — (7) (5) 488 3.75% 2022 Senior Notes, due 2052 500 (21) (8) (5) 466 4.25% 2022 Senior Notes, due 2032 500 (8) (2) (4) 486 Total debt $ 7,758 $ (192) $ (53) $ (51) $ 7,462 Current portion (499) Total long-term debt $ 6,963 December 31, 2022 Notes Payable: Principal Amount Fair Value of Interest Rate Swaps (1) Unamortized (Discount) Premium Unamortized Debt Issuance Costs Carrying Value 4.875% 2013 Senior Notes, due 2024 $ 500 $ — $ (1) $ (1) $ 498 5.25% 2014 Senior Notes, due 2044 600 (42) 3 (4) 557 1.75% 2015 Senior Notes, due 2027 534 — — (2) 532 3.25% 2017 Senior Notes, due 2028 500 (37) (3) (2) 458 4.25% 2018 Senior Notes, due 2029 400 (42) (2) (2) 354 4.875% 2018 Senior Notes, due 2048 400 (44) (6) (4) 346 0.950% 2019 Senior Notes, due 2030 800 — (2) (4) 794 3.75% 2020 Senior Notes, due 2025 700 (27) (1) (3) 669 3.25% 2020 Senior Notes, due 2050 300 — (4) (3) 293 2.55% 2020 Senior Notes, due 2060 300 — (2) (3) 295 2.00% 2021 Senior Notes, due 2031 600 — (7) (4) 589 2.75% 2021 Senior Notes, due 2041 600 — (13) (5) 582 3.10% 2021 Senior Notes, due 2061 500 — (7) (5) 488 3.75% 2022 Senior Notes, due 2052 500 (35) (8) (5) 452 4.25% 2022 Senior Notes, due 2032 500 (12) (2) (4) 482 Total long-term debt $ 7,734 $ (239) $ (55) $ (51) $ 7,389 (1) The fair value of interest rate swaps in the table above represents the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt. |
Principal Payments Due on Long-Term Borrowings | The repayment schedule for the Company’s borrowings is as follows: Year Ending December 31, Year Ending Total 2023 (After March 31,) $ — 2024 500 2025 700 2026 — 2027 543 Thereafter 6,015 Total $ 7,758 |
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 and the cash paid for interest: Three Months Ended March 31, 2023 2022 Income $ 10 $ 2 Expense on borrowings (70) (48) Income (expense) on UTPs and other tax related liabilities (1) 18 (3) Net periodic pension costs - interest component (6) (4) Interest expense, net $ (48) $ (53) Interest paid (2) $ 96 $ 78 (1) The amount for the three months ended March 31, 2023 reflects a $22 million reduction of tax-related interest expense primarily related to the resolutions of tax matters. (2) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 8. |
Fair Value and Carrying Value of Long-Term Debt | The fair value and carrying value of the Company’s debt as of March 31, 2023 and December 31, 2022 are as follows: March 31, 2023 December 31, 2022 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt $ 7,462 $ 6,744 $ 7,389 $ 6,564 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Cost | The following table presents the components of the Company’s lease cost: Three Months Ended March 31, 2023 2022 Operating lease cost $ 24 $ 27 Sublease income (2) (2) Variable lease cost 5 5 Total lease cost $ 27 $ 30 |
Schedule of Operating Leases Information | The following tables present other information related to the Company’s operating leases: Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 30 $ 31 Right-of-use assets obtained in exchange for new operating lease liabilities $ 5 $ 15 March 31, 2023 March 31, 2022 Weighted-average remaining lease term 4.8 years 5.5 years Weighted-average discount rate applied to operating leases 3.1 % 3.1 % |
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 March 31, 2023: Year Ending December 31, Operating Leases 2023 (After March 31,) $ 90 2024 113 2025 100 2026 81 2027 65 After 2027 41 Total lease payments (undiscounted) 490 Less: Interest 35 Present value of lease liabilities: $ 455 Lease liabilities - current $ 106 Lease liabilities - noncurrent $ 349 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | The table below shows revenue and Adjusted 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 2 for further details on the components of the Company’s revenue. Three Months Ended March 31, 2023 2022 MA MIS Eliminations Consolidated MA MIS Eliminations Consolidated Total external revenue $ 737 $ 733 $ — $ 1,470 $ 695 $ 827 $ — $ 1,522 Intersegment revenue 3 45 (48) — 2 43 (45) — Revenue 740 778 (48) 1,470 697 870 (45) 1,522 Operating, SG&A 526 336 (48) 814 473 360 (45) 788 Adjusted Operating Income $ 214 $ 442 $ — $ 656 $ 224 $ 510 $ — $ 734 Add: Depreciation and 70 18 — 88 60 18 — 78 Restructuring 8 6 — 14 — — — — Operating Income $ 554 $ 656 |
Company's Reportable Segment Revenues Disaggregated by Segment and Geographic Region | The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region: Three Months Ended March 31, 2023 2022 MA: U.S. $ 324 $ 310 Non-U.S.: EMEA 278 264 Asia-Pacific 80 67 Americas 55 54 Total Non-U.S. 413 385 Total MA 737 695 MIS: U.S. 446 513 Non-U.S.: EMEA 173 193 Asia-Pacific 71 74 Americas 43 47 Total Non-U.S. 287 314 Total MIS 733 827 Total MCO $ 1,470 $ 1,522 Three Months Ended March 31, 2023 2022 United States $ 770 $ 823 Non-U.S.: EMEA 451 457 Asia-Pacific 151 141 Americas 98 101 Total Non-U.S. 700 699 Total $ 1,470 $ 1,522 |
Restructuring Expenses Included in Consolidated Statements of Operations | The table below shows cumulative restructuring expense incurred through March 31, 2023 by reportable segment. MA MIS Total 2022 - 2023 Geolocation Restructuring Program $ 57 $ 70 $ 127 |
Description of Business and B_3
Description of Business and Basis of Presentation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Revenues - Revenue by Category
Revenues - Revenue by Category (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,470 | $ 1,522 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (48) | (45) |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 737 | 695 |
MA | Decision Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 354 | 334 |
MA | Research and Insights | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 195 | 183 |
MA | Data and Information | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 188 | 178 |
MA | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 740 | 697 |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 733 | 827 |
MIS | Corporate Finance (CFG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 356 | 417 |
MIS | Corporate Finance (CFG) | Investment-grade | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 115 | 114 |
MIS | Corporate Finance (CFG) | High-yield | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 32 | 39 |
MIS | Corporate Finance (CFG) | Bank loans | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 59 | 113 |
MIS | Corporate Finance (CFG) | Other accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 150 | 151 |
MIS | Structured Finance (SFG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 99 | 144 |
MIS | Structured Finance (SFG) | Other accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1 | 0 |
MIS | Structured Finance (SFG) | Asset-backed securities | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 27 | 32 |
MIS | Structured Finance (SFG) | RMBS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 25 | 35 |
MIS | Structured Finance (SFG) | CMBS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 14 | 38 |
MIS | Structured Finance (SFG) | Structured credit | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 32 | 39 |
MIS | Financial Institutions (FIG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 142 | 131 |
MIS | Financial Institutions (FIG) | Other accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3 | 3 |
MIS | Financial Institutions (FIG) | Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 100 | 89 |
MIS | Financial Institutions (FIG) | Insurance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 33 | 34 |
MIS | Financial Institutions (FIG) | Managed investments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6 | 5 |
MIS | Public, Project and Infrastructure Finance (PPIF) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 129 | 123 |
MIS | Public, Project and Infrastructure Finance (PPIF) | Public finance / sovereign | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 52 | 58 |
MIS | Public, Project and Infrastructure Finance (PPIF) | Project and infrastructure | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 77 | 65 |
MIS | Total ratings revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 726 | 815 |
MIS | MIS Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 7 | 12 |
MIS | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 778 | $ 870 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Line of Business and Geographical Area (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,470 | $ 1,522 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 770 | 823 |
Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 700 | 699 |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 737 | 695 |
MA | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 324 | 310 |
MA | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 413 | 385 |
MA | Decision Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 354 | 334 |
MA | Decision Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 152 | 147 |
MA | Decision Solutions | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 202 | 187 |
MA | Research and Insights | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 195 | 183 |
MA | Research and Insights | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 105 | 103 |
MA | Research and Insights | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 90 | 80 |
MA | Data and Information | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 188 | 178 |
MA | Data and Information | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 67 | 60 |
MA | Data and Information | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 121 | 118 |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 733 | 827 |
MIS | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 446 | 513 |
MIS | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 287 | 314 |
MIS | Corporate Finance (CFG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 356 | 417 |
MIS | Corporate Finance (CFG) | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 246 | 275 |
MIS | Corporate Finance (CFG) | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 110 | 142 |
MIS | Structured Finance (SFG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 99 | 144 |
MIS | Structured Finance (SFG) | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 61 | 97 |
MIS | Structured Finance (SFG) | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 38 | 47 |
MIS | Financial Institutions (FIG) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 142 | 131 |
MIS | Financial Institutions (FIG) | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 63 | 65 |
MIS | Financial Institutions (FIG) | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 79 | 66 |
MIS | Public, Project and Infrastructure Finance (PPIF) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 129 | 123 |
MIS | Public, Project and Infrastructure Finance (PPIF) | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 76 | 75 |
MIS | Public, Project and Infrastructure Finance (PPIF) | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 53 | 48 |
MIS | Total ratings revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 726 | 815 |
MIS | Total ratings revenue | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 446 | 512 |
MIS | Total ratings revenue | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 280 | 303 |
MIS | MIS Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 7 | 12 |
MIS | MIS Other | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 1 |
MIS | MIS Other | Non-U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 7 | $ 11 |
Revenues - Consolidated Revenue
Revenues - Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,470 | $ 1,522 |
MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 737 | 695 |
MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 733 | 827 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 770 | 823 |
United States | MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 324 | 310 |
United States | MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 446 | 513 |
Non-U.S. | ||
Segment Reporting Information [Line Items] | ||
Revenue | 700 | 699 |
Non-U.S. | MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 413 | 385 |
Non-U.S. | MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 287 | 314 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 451 | 457 |
EMEA | MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 278 | 264 |
EMEA | MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 173 | 193 |
Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Revenue | 151 | 141 |
Asia-Pacific | MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 80 | 67 |
Asia-Pacific | MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 71 | 74 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Revenue | 98 | 101 |
Americas | MA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 55 | 54 |
Americas | MIS | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 43 | $ 47 |
Revenues - Transaction and Rela
Revenues - Transaction and Relationship Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,470 | $ 1,522 |
Percentage of Revenues | 100% | 100% |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 737 | $ 695 |
Percentage of Revenues | 100% | 100% |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 733 | $ 827 |
Percentage of Revenues | 100% | 100% |
Decision Solutions | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 354 | $ 334 |
Percentage of Revenues | 100% | 100% |
Research and Insights | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 195 | $ 183 |
Percentage of Revenues | 100% | 100% |
Data and Information | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 188 | $ 178 |
Percentage of Revenues | 100% | 100% |
Corporate Finance (CFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 356 | $ 417 |
Percentage of Revenues | 100% | 100% |
Structured Finance (SFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 99 | $ 144 |
Percentage of Revenues | 100% | 100% |
Financial Institutions (FIG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 142 | $ 131 |
Percentage of Revenues | 100% | 100% |
Public, Project and Infrastructure Finance (PPIF) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 129 | $ 123 |
Percentage of Revenues | 100% | 100% |
MIS Other | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 7 | $ 12 |
Percentage of Revenues | 100% | 100% |
Transaction Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 476 | $ 573 |
Percentage of Revenues | 32% | 38% |
Transaction Revenue | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 45 | $ 44 |
Percentage of Revenues | 6% | 6% |
Transaction Revenue | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 431 | $ 529 |
Percentage of Revenues | 59% | 64% |
Transaction Revenue | Decision Solutions | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 43 | $ 43 |
Percentage of Revenues | 12% | 13% |
Transaction Revenue | Research and Insights | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2 | $ 1 |
Percentage of Revenues | 1% | 1% |
Transaction Revenue | Data and Information | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 0 | $ 0 |
Percentage of Revenues | 0% | 0% |
Transaction Revenue | Corporate Finance (CFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 230 | $ 293 |
Percentage of Revenues | 65% | 70% |
Transaction Revenue | Structured Finance (SFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 45 | $ 93 |
Percentage of Revenues | 45% | 65% |
Transaction Revenue | Financial Institutions (FIG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 70 | $ 61 |
Percentage of Revenues | 49% | 47% |
Transaction Revenue | Public, Project and Infrastructure Finance (PPIF) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 86 | $ 79 |
Percentage of Revenues | 67% | 64% |
Transaction Revenue | MIS Other | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 0 | $ 3 |
Percentage of Revenues | 0% | 25% |
Recurring Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 994 | $ 949 |
Percentage of Revenues | 68% | 62% |
Recurring Revenue | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 692 | $ 651 |
Percentage of Revenues | 94% | 94% |
Recurring Revenue | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 302 | $ 298 |
Percentage of Revenues | 41% | 36% |
Recurring Revenue | Decision Solutions | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 311 | $ 291 |
Percentage of Revenues | 88% | 87% |
Recurring Revenue | Research and Insights | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 193 | $ 182 |
Percentage of Revenues | 99% | 99% |
Recurring Revenue | Data and Information | MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 188 | $ 178 |
Percentage of Revenues | 100% | 100% |
Recurring Revenue | Corporate Finance (CFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 126 | $ 124 |
Percentage of Revenues | 35% | 30% |
Recurring Revenue | Structured Finance (SFG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 54 | $ 51 |
Percentage of Revenues | 55% | 35% |
Recurring Revenue | Financial Institutions (FIG) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 72 | $ 70 |
Percentage of Revenues | 51% | 53% |
Recurring Revenue | Public, Project and Infrastructure Finance (PPIF) | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 43 | $ 44 |
Percentage of Revenues | 33% | 36% |
Recurring Revenue | MIS Other | MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 7 | $ 9 |
Percentage of Revenues | 100% | 75% |
Revenues - Revenue Recognition
Revenues - Revenue Recognition Timing (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 1,470 | $ 1,522 |
At Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 458 | 570 |
Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 1,012 | 952 |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 737 | 695 |
MA | At Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 27 | 41 |
MA | Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 710 | 654 |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 733 | 827 |
MIS | At Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 431 | 529 |
MIS | Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 302 | $ 298 |
Revenues - Unbilled Receivables
Revenues - Unbilled Receivables (Detail) - Accounts Receivable - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
MA | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled Receivables | $ 114 | $ 148 |
MIS | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled Receivables | $ 439 | $ 385 |
Revenues - Schedule of Changes
Revenues - Schedule of Changes in the Deferred Revenue Balances (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Change in Contract with Customer, Liability [Abstract] | |||
Beginning Balance | $ 1,333 | $ 1,335 | |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (569) | (526) | |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 867 | 814 | |
Increases due to acquisitions during the period | 0 | 1 | |
Effect of exchange rate changes | 17 | (13) | |
Total changes in deferred revenue | 315 | 276 | |
Ending Balance | 1,648 | 1,611 | |
Deferred revenue | 1,578 | 1,525 | $ 1,258 |
Non-current portion of deferred revenue | 70 | 86 | $ 75 |
MA | |||
Change in Contract with Customer, Liability [Abstract] | |||
Beginning Balance | 1,055 | 1,039 | |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (471) | (431) | |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 688 | 636 | |
Increases due to acquisitions during the period | 0 | 1 | |
Effect of exchange rate changes | 16 | (11) | |
Total changes in deferred revenue | 233 | 195 | |
Ending Balance | 1,288 | 1,234 | |
Deferred revenue | 1,287 | 1,231 | |
Non-current portion of deferred revenue | 1 | 3 | |
MIS | |||
Change in Contract with Customer, Liability [Abstract] | |||
Beginning Balance | 278 | 296 | |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (98) | (95) | |
Increases due to amounts billable excluding amounts recognized as revenue during the period | 179 | 178 | |
Increases due to acquisitions during the period | 0 | 0 | |
Effect of exchange rate changes | 1 | (2) | |
Total changes in deferred revenue | 82 | 81 | |
Ending Balance | 360 | 377 | |
Deferred revenue | 291 | 294 | |
Non-current portion of deferred revenue | $ 69 | $ 83 |
Revenues - Expected Recognition
Revenues - Expected Recognition Period for Remaining Performance Obligations (Detail) $ in Millions | Mar. 31, 2023 USD ($) |
MA | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 3,300 |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 65% |
Revenue, remaining performance obligation, period | 1 year |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 25% |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
MA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 2 years |
MIS | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 98 |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 25% |
Revenue, remaining performance obligation, period | 1 year |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 4 years |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 50% |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
MIS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 5 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Cost and Associated Tax Benefit (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | ||
Stock-based compensation cost | $ 47 | $ 46 |
Tax benefit | $ 10 | $ 11 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee stock options, granted (in shares) | shares | 0.1 |
Employee stock options, weighted average grant date fair value (in usd per share) | $ / shares | $ 94.67 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Other than options, shares granted (in shares) | shares | 0.6 |
Other than options, weighted average grant date fair value (in usd per share) | $ / shares | $ 295.53 |
Award vesting period | 4 years |
Unrecognized compensation expense | $ | $ 354 |
Weighted average period to recognize expense | 2 years 9 months 18 days |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Unrecognized compensation expense | $ | $ 20 |
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] | |
Other than options, shares granted (in shares) | shares | 0.1 |
Other than options, weighted average grant date fair value (in usd per share) | $ / shares | $ 286.04 |
Award vesting period | 3 years |
Unrecognized compensation expense | $ | $ 43 |
Weighted average period to recognize expense | 2 years 4 months 24 days |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions used in Determining Fair Value for Options Granted (Detail) | 3 Months Ended |
Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Expected dividend yield | 1.04% |
Expected stock volatility | 29% |
Risk-free interest rate | 4.18% |
Expected holding period | 5 years 9 months 18 days |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Exercises and Restricted Stock Vesting (Detail) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Proceeds from stock option exercises | $ 7 | $ 3 | |
Aggregate intrinsic value | 15 | 4 | |
Tax benefit realized upon exercise | $ 4 | $ 1 | |
Number of shares exercised (shares) | 100 | 0 | 20 |
Restricted Stock | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Fair value of shares vested | $ 140 | $ 166 | |
Tax benefit realized upon vesting | $ 33 | $ 39 | |
Number of shares vested (shares) | 500 | 500 | |
Performance Based Restricted Stock | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Fair value of shares vested | $ 24 | $ 50 | |
Tax benefit realized upon vesting | $ 3 | $ 7 | |
Number of shares vested (shares) | 100 | 200 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (percent) | 1% | 18.20% |
Decrease in effective income tax due to resolution of uncertain tax positions | 17.20% | |
Excess tax benefits from stock compensation | $ 6 | |
Reduction resulting from lapse of applicable statute of limitations and settlement | $ 117 | |
Income tax examination, description | 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 2019 through 2020 are currently under examination and 2021 remains open to examination. The Company’s New York City tax returns for 2015 through 2019 are currently under examination. The Company’s U.K. tax returns for 2017 through 2021 remain open to examination. | |
Inflation reduction act impact on ETR | In August 2022, the U.S. Congress passed the Inflation Reduction Act, which included a corporate minimum tax on book earnings of 15%, an excise tax on corporate share repurchases of 1%, and certain climate change and energy tax credit incentives. The adoption of a corporate minimum tax of 15% is not expected to impact Moody’s ETR. The excise tax of 1% on corporate share buybacks will not have an impact on the Company’s ETR for 2023. |
Income Taxes - Income Taxes Pai
Income Taxes - Income Taxes Paid (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income taxes paid | $ 66 | $ 70 |
Reconciliation of Weighted Av_3
Reconciliation of Weighted Average Shares Outstanding - Reconciliation of Basic to Diluted Shares Outstanding (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Basic (in shares) | 183.3 | 185.1 |
Dilutive effect of shares issuable under stock-based compensation plans (in shares) | 0.8 | 1 |
Diluted (in shares) | 184.1 | 186.1 |
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) | 0.7 | 0.3 |
Accelerated Share Repurchase _2
Accelerated Share Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 2 Months Ended | |
Mar. 01, 2022 | Apr. 30, 2022 | Apr. 30, 2022 | |
Accelerated Share Repurchases [Line Items] | |||
Accelerated share repurchases, final price paid per share (in usd per share) | $ 324.20 | ||
Accelerated Share Repurchases | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury shares repurchased (in shares) | 1.5 | ||
March 1, 2022 | |||
Accelerated Share Repurchases [Line Items] | |||
Accelerated share repurchases, total Value committed to repurchase | $ 500,000,000 | ||
Accelerated share repurchase payment | $ 500,000,000 | ||
March 1, 2022 | Accelerated Share Repurchases | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury shares repurchased (in shares) | 1.2 | ||
April 25, 2022 | Accelerated Share Repurchases | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury shares repurchased (in shares) | 0.3 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 2,119 | $ 1,769 |
Short-term investments | 78 | 90 |
Other assets | 1,099 | 1,092 |
Certificates of deposit and money market deposit accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 729 | 914 |
Gains/(Losses) | 0 | 0 |
Fair Value | 729 | 914 |
Cash and cash equivalents | 645 | 808 |
Short-term investments | 78 | 90 |
Other assets | 6 | 16 |
Mutual funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cost | 80 | 71 |
Gains/(Losses) | 3 | 0 |
Fair Value | 83 | 71 |
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Other assets | $ 83 | $ 71 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments (Footnote) (Detail) - Certificates of deposit and money market deposit accounts | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Short-term Investments | Minimum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 1 month | |
Short-term Investments | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 12 months | |
Other assets | Minimum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 13 months | 13 months |
Other assets | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 21 months | 24 months |
Cash and Cash Equivalents | Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Securities maturity period | 90 days |
Cash Equivalents and Investme_5
Cash Equivalents and Investments (Narrative) (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Company owned life insurance (at contract value) | $ 44 | $ 40 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Notional Amount | $ 2,550 | $ 2,550 |
2017 Senior Notes due 2028 | ||
Derivative [Line Items] | ||
Notional Amount | $ 500 | $ 500 |
Floating Interest Rate | SOFR | 3-month LIBOR |
2020 Senior Notes due 2025 | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | $ 300 |
Floating Interest Rate | SOFR | 6-month LIBOR |
2014 Senior Notes due 2044 | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | $ 300 |
Floating Interest Rate | SOFR | 3-month LIBOR |
2018 Senior Notes due 2048 | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | $ 300 |
Floating Interest Rate | SOFR | 3-month LIBOR |
2018 Senior Notes due 2029 | ||
Derivative [Line Items] | ||
Notional Amount | $ 400 | $ 400 |
Floating Interest Rate | SOFR | SOFR |
2022 Senior Notes due 2052 | ||
Derivative [Line Items] | ||
Notional Amount | $ 500 | $ 500 |
Floating Interest Rate | SOFR | SOFR |
2022 Senior Notes due 2032 | ||
Derivative [Line Items] | ||
Notional Amount | $ 250 | $ 250 |
Floating Interest Rate | SOFR | SOFR |
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 | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest expense, net | $ (48) | $ (53) |
Designated as Hedging Instrument | Interest Rate Swap | Fair Value hedge Net Interest Settlements and Accruals | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net interest settlements and accruals on interest rate swaps | (18) | 6 |
Designated as Hedging Instrument | Interest Rate Swap | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value changes on interest rate swaps | 46 | (85) |
Fair value changes on hedged debt | $ (46) | $ 85 |
Derivative Instruments And He_5
Derivative Instruments And Hedging Activities - Additional Information (Detail) € in Millions, $ in Millions | Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) |
Derivative [Line Items] | |||
Cumulative loss | $ 589 | $ 643 | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Cumulative loss | (84) | (140) | |
Net Investment Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Cumulative loss | (128) | (185) | |
Net Investment Hedging | Designated as Hedging Instrument | Currency Swap | |||
Derivative [Line Items] | |||
Notional Amount | € | € 2,903 | ||
Cumulative loss | (79) | (118) | |
Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Cumulative loss | 44 | 45 | |
Cash Flow Hedging | Designated as Hedging Instrument | Currency Swap | |||
Derivative [Line Items] | |||
Cumulative loss | $ (2) | $ (2) | |
1.75% 2015 Senior Notes, due 2027 | |||
Derivative [Line Items] | |||
Notes payable, interest rate | 1.75% | 1.75% | 1.75% |
1.75% 2015 Senior Notes, due 2027 | Net Investment Hedging | Designated as Hedging Instrument | Currency Swap | |||
Derivative [Line Items] | |||
Notional Amount | € | € 500 | ||
2019 Senior Notes Due 2030 | Net Investment Hedging | Designated as Hedging Instrument | Currency Swap | |||
Derivative [Line Items] | |||
Notional Amount | € | € 750 | ||
3.25% 2020 Senior Notes, due 2050 | |||
Derivative [Line Items] | |||
Notes payable, interest rate | 3.25% | 3.25% | 3.25% |
Derivative Instruments And He_6
Derivative Instruments And Hedging Activities - Summary of Notional Amounts of Outstanding Cross Currency Swap (Detail) - Currency Swap - Net Investment Hedging € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 | Dec. 31, 2022 USD ($) | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | |
Currency Paid | |||||
Derivative [Line Items] | |||||
Notional Amount | € | € 2,903 | € 2,903 | |||
Currency Paid | 3.67% | |||||
Derivative [Line Items] | |||||
Notional Amount | € | € 765 | € 765 | |||
Weighted Average Fixed Interest Rate | 3.67% | 3.67% | 3.67% | 3.67% | |
Currency Paid | 3-month EURIBOR One | |||||
Derivative [Line Items] | |||||
Notional Amount | € | € 450 | ||||
Floating Interest Rate | Based on 3-month EURIBOR | ||||
Currency Paid | Based on ESTR | |||||
Derivative [Line Items] | |||||
Notional Amount | € | € 2,138 | € 1,688 | |||
Floating Interest Rate | Based on ESTR | Based on ESTR | |||
Currency Received | |||||
Derivative [Line Items] | |||||
Notional Amount | $ | $ 3,050 | $ 3,050 | |||
Currency Received | 5.25% | |||||
Derivative [Line Items] | |||||
Notional Amount | $ | $ 800 | $ 800 | |||
Weighted Average Fixed Interest Rate | 5.25% | 5.25% | 5.25% | 5.25% | |
Currency Received | 3-month U.S. LIBOR | |||||
Derivative [Line Items] | |||||
Notional Amount | $ | $ 500 | ||||
Floating Interest Rate | Based on 3-month USD LIBOR | ||||
Currency Received | Based on SOFR | |||||
Derivative [Line Items] | |||||
Notional Amount | $ | $ 2,250 | $ 1,750 | |||
Floating Interest Rate | Based on SOFR | Based on SOFR |
Derivative Instruments And He_7
Derivative Instruments And Hedging Activities - Schedule of Notional Amount of Net Investment Hedges (Detail) - Designated as Hedging Instrument - Currency Swap € in Millions | Mar. 31, 2023 EUR (€) |
Net Investment Hedging | |
Derivative [Line Items] | |
Notional Amount | € 2,903 |
2026 | |
Derivative [Line Items] | |
Notional Amount | 450 |
2027 | |
Derivative [Line Items] | |
Notional Amount | 531 |
2028 | |
Derivative [Line Items] | |
Notional Amount | 588 |
2029 | |
Derivative [Line Items] | |
Notional Amount | 373 |
2031 | |
Derivative [Line Items] | |
Notional Amount | 481 |
2032 | |
Derivative [Line Items] | |
Notional Amount | € 480 |
Derivative Instruments And He_8
Derivative Instruments And Hedging Activities - Gains (Losses) Recognized in AOCI and Reclassified from AOCI on Derivatives (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total, Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax | $ (57) | $ 47 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | (1) | (1) |
Total, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | (1) | (1) |
Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 16 | 10 |
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 | (57) | 47 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 0 |
Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 16 | 10 |
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 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | (1) | (1) |
Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 |
Currency Swap | 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 | (39) | 24 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 0 |
Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 16 | 10 |
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 | (18) | 23 |
Net investment hedges - reclassification of gains included in net income - Net of Tax | 0 | 0 |
Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 0 | 0 |
Interest rate contracts | 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 |
Cash Flow Hedging Relationships, Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax | (1) | (1) |
Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | $ 0 | $ 0 |
Derivative Instruments And He_9
Derivative Instruments And Hedging Activities - Cumulative Amount of Unrecognized Hedge Losses Recorded in AOCI (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | $ (589) | $ (643) |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 84 | 140 |
Net Investment Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 128 | 185 |
Net Investment Hedging | Cross currency swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 79 | 118 |
Net Investment Hedging | FX forwards | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 29 | 29 |
Net Investment Hedging | Long-term debt | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 20 | 38 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | (44) | (45) |
Cash Flow Hedging | Cross currency swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | 2 | 2 |
Cash Flow Hedging | Interest rate contracts | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Cumulative Gains/(Losses), net of tax | $ (46) | $ (47) |
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, $ in Millions | Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Mar. 31, 2023 GBP (£) | Mar. 31, 2023 JPY (¥) | Mar. 31, 2023 CAD ($) | Mar. 31, 2023 SGD ($) | Mar. 31, 2023 INR (₨) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 JPY (¥) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 SGD ($) | Dec. 31, 2022 INR (₨) |
Contracts to sell USD for GBP | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional Amount | $ 295 | £ 241 | $ 170 | £ 146 | ||||||||||
Contracts to sell USD for Japanese yen | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional Amount | 15 | ¥ 2,000 | 24 | ¥ 3,500 | ||||||||||
Contracts to sell USD for Canadian dollars | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional Amount | 78 | $ 105 | 87 | $ 120 | ||||||||||
Contracts to sell USD for Singapore dollars | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional Amount | 52 | $ 70 | 50 | $ 70 | ||||||||||
Contracts to sell USD for euros | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional Amount | 160 | € 148 | 116 | € 115 | ||||||||||
Contracts to sell USD for Indian rupee | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional Amount | 23 | ₨ 1,900 | 19 | ₨ 1,600 | ||||||||||
Contracts to sell euros for USD | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional Amount | $ 27 | € 25 | $ 89 | € 85 |
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 | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other non-operating income, net | Not Designated as Accounting Hedges | FX forwards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign exchange forwards amount of gain (loss) recognized in income | $ 5 | $ (19) |
Derivative Instruments And H_12
Derivative Instruments And Hedging Activities - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 16 | $ 46 |
Liabilities | 1,666 | 1,653 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 307 | 317 |
Designated as Hedging Instrument | Long-term debt | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 1,358 | 1,334 |
Designated as Hedging Instrument | Currency Swap | Other assets | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 12 | 27 |
Designated as Hedging Instrument | Currency Swap | Other liabilities | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 115 | 78 |
Designated as Hedging Instrument | Interest Rate Swap | Other liabilities | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 192 | 239 |
Not Designated as Accounting Hedges | FX forwards | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 4 | 19 |
Not Designated as Accounting Hedges | FX forwards | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ 1 | $ 2 |
Goodwill And Other Acquired I_3
Goodwill And Other Acquired Intangible Assets - Activity in Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance, goodwill gross | $ 5,851 | $ 6,011 |
Beginning balance, Accumulated impairment charge | (12) | (12) |
Beginning balance, goodwill net | 5,839 | 5,999 |
Additions/ adjustments | 0 | 92 |
Foreign currency translation adjustments | 53 | (252) |
Ending balance, goodwill gross | 5,904 | 5,851 |
Ending balance, Accumulated impairment charge | (12) | (12) |
Ending balance, goodwill net | 5,892 | 5,839 |
MA | ||
Goodwill [Roll Forward] | ||
Beginning balance, goodwill gross | 5,474 | 5,615 |
Beginning balance, Accumulated impairment charge | (12) | (12) |
Beginning balance, goodwill net | 5,462 | 5,603 |
Additions/ adjustments | 90 | 88 |
Foreign currency translation adjustments | 56 | (229) |
Ending balance, goodwill gross | 5,620 | 5,474 |
Ending balance, Accumulated impairment charge | (12) | (12) |
Ending balance, goodwill net | 5,608 | 5,462 |
MIS | ||
Goodwill [Roll Forward] | ||
Beginning balance, goodwill gross | 377 | 396 |
Beginning balance, Accumulated impairment charge | 0 | 0 |
Beginning balance, goodwill net | 377 | 396 |
Additions/ adjustments | (90) | 4 |
Foreign currency translation adjustments | (3) | (23) |
Ending balance, goodwill gross | 284 | 377 |
Ending balance, Accumulated impairment charge | 0 | 0 |
Ending balance, goodwill net | $ 284 | $ 377 |
Goodwill And Other Acquired I_4
Goodwill And Other Acquired Intangible Assets - Acquired Intangible Assets and Related Amortization (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, net | $ 2,177 | $ 2,210 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 2,043 | 2,024 |
Accumulated amortization | (480) | (453) |
Acquired intangible assets, net | 1,563 | 1,571 |
Software/product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 667 | 661 |
Accumulated amortization | (305) | (283) |
Acquired intangible assets, net | 362 | 378 |
Database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 178 | 178 |
Accumulated amortization | (69) | (64) |
Acquired intangible assets, net | 109 | 114 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 198 | 197 |
Accumulated amortization | (62) | (58) |
Acquired intangible assets, net | 136 | 139 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 52 | 52 |
Accumulated amortization | (45) | (44) |
Acquired intangible assets, net | $ 7 | $ 8 |
Goodwill And Other Acquired I_5
Goodwill And Other Acquired Intangible Assets - Amortization Expense Relating to Acquired Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 51 | $ 51 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - 2022-2023 Geolocation Restructuring Program - USD ($) $ in Millions | 3 Months Ended | 27 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2024 | |
Restructuring Cost and Reserve [Line Items] | |||
Payments for restructuring | $ 42 | ||
Cost incurred to date | 127 | ||
Minimum | Forecast | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments for restructuring | $ 105 | ||
Maximum | Forecast | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments for restructuring | $ 120 | ||
Estimated Annual Savings | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Effect on future earnings, amount | $ 120 | ||
Estimated Annual Savings | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Effect on future earnings, amount | $ 140 | ||
Termination or Sublease of Affected Real Estate Leases | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expected cost | 50 | ||
Termination or Sublease of Affected Real Estate Leases | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expected cost | 70 | ||
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Cost incurred to date | 98 | ||
Employee Severance | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expected cost | 105 | ||
Employee Severance | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expected cost | $ 120 |
Restructuring - Restructuring E
Restructuring - Restructuring Expenses Included in Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 14 | $ 0 |
Restructuring - Changes in Rest
Restructuring - Changes in Restructuring Liability (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability, Beginning Balance | $ 65 |
Restructuring liability, Ending Balance | $ 37 |
Restructuring, incurred cost, statement of income or comprehensive income | Restructuring Charges |
2022-2023 Geolocation Restructuring Program | |
Restructuring Reserve [Roll Forward] | |
Cost incurred and adjustments | $ 14 |
Cash payments and adjustments | (42) |
Cost incurred to date | 127 |
2022-2023 Geolocation Restructuring Program | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Cost incurred to date | 98 |
2022-2023 Geolocation Restructuring Program | Real Estate | |
Restructuring Reserve [Roll Forward] | |
Cost incurred to date | 28 |
2022-2023 Geolocation Restructuring Program | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Cost incurred to date | $ 1 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Carried at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Derivatives | $ 16 | $ 46 |
Total | 99 | 117 |
Liabilities: | ||
Derivatives | 308 | 319 |
Total | 308 | 319 |
Mutual Funds | ||
Assets: | ||
Mutual funds | 83 | 71 |
Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Total | 83 | 71 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total | 0 | 0 |
Level 1 | Mutual Funds | ||
Assets: | ||
Mutual funds | 83 | 71 |
Level 2 | ||
Assets: | ||
Derivatives | 16 | 46 |
Total | 16 | 46 |
Liabilities: | ||
Derivatives | 308 | 319 |
Total | 308 | 319 |
Level 2 | Mutual Funds | ||
Assets: | ||
Mutual funds | $ 0 | $ 0 |
OTHER BALANCE SHEET AND STATE_3
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION - Additional Details Related to Certain Balance Sheet Captions (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Other current assets: | ||
Prepaid taxes | $ 191 | $ 235 |
Prepaid expenses | 131 | 119 |
Capitalized costs to obtain and fulfill sales contracts | 117 | 106 |
Foreign exchange forwards on certain assets and liabilities | 4 | 19 |
Other | 74 | 104 |
Total other current assets | 517 | 583 |
Other assets: | ||
Investments in non-consolidated affiliates | 520 | 517 |
Deposits for real-estate leases | 15 | 15 |
Indemnification assets related to acquisitions | 112 | 110 |
Mutual funds and fixed deposits | 89 | 87 |
Company owned life insurance (at contract value) | 44 | 40 |
Costs to obtain sales contracts | 181 | 171 |
Derivative instruments designated as accounting hedges | 12 | 27 |
Pension and other retirement employee benefits | 41 | 40 |
Other | 85 | 85 |
Total other assets | 1,099 | 1,092 |
Accounts payable and accrued liabilities: | ||
Salaries and benefits | 135 | 104 |
Incentive compensation | 88 | 276 |
Customer credits, advanced payments and advanced billings | 110 | 102 |
Dividends | 4 | 6 |
Professional service fees | 47 | 49 |
Accrued interest | 85 | 144 |
Accounts payable | 70 | 52 |
Income taxes | 84 | 86 |
Pension and other retirement employee benefits | 7 | 7 |
Accrued royalties | 31 | 23 |
Foreign exchange forwards on certain assets and liabilities | 1 | 2 |
Restructuring liability | 37 | 65 |
Other | 106 | 95 |
Total accounts payable and accrued liabilities | 805 | 1,011 |
Other liabilities: | ||
Pension and other retirement employee benefits | 195 | 189 |
Interest accrued on UTPs | 28 | 47 |
MAKS indemnification provisions | 19 | 23 |
Income tax liability - non-current portion | 15 | 48 |
Derivative instruments designated as accounting hedges | 307 | 317 |
Other | 46 | 50 |
Total other liabilities | $ 610 | $ 674 |
OTHER BALANCE SHEET AND STATE_4
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION - Investments in Non-Consolidated Affiliates (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Other Balance Sheet And Statement Of Operations Information [Abstract] | ||
Equity method investments | $ 190 | $ 187 |
Investments measured using the measurement alternative | 325 | 325 |
Other | 5 | 5 |
Total investments in non-consolidated affiliates | $ 520 | $ 517 |
OTHER BALANCE SHEET AND STATE_5
OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION - Other Non-Operating Interest (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Balance Sheet And Statement Of Operations Information [Abstract] | ||
FX gain (loss) | $ (26) | $ 0 |
Net periodic pension costs - other components | 9 | 6 |
Income from investments in non-consolidated affiliates | 2 | 2 |
Other | 15 | (2) |
Total | 0 | $ 6 |
Foreign currency transaction loss, out-of-period adjustment, before tax | 23 | |
Other non operating income (expense) other, favorable resolutions of various tax matters | 9 | |
Gain (loss) on investments | $ 4 |
Comprehensive Income And Accu_3
Comprehensive Income And Accumulated Other Comprehensive Loss - Changes in Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,519 | |
Ending balance | 2,891 | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (643) | $ (410) |
Other comprehensive income/(loss) before reclassifications | 53 | (62) |
Amounts reclassified from AOCL | 1 | 1 |
Other comprehensive income/(loss) | 54 | (61) |
Ending balance | (589) | (471) |
Pension and Other Retirement Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (47) | (49) |
Other comprehensive income/(loss) before reclassifications | 0 | (2) |
Amounts reclassified from AOCL | 0 | 0 |
Other comprehensive income/(loss) | 0 | (2) |
Ending balance | (47) | (51) |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (45) | (47) |
Other comprehensive income/(loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCL | 1 | 1 |
Other comprehensive income/(loss) | 1 | 1 |
Ending balance | (44) | (46) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (736) | (335) |
Other comprehensive income/(loss) before reclassifications | 110 | (107) |
Amounts reclassified from AOCL | 0 | 0 |
Other comprehensive income/(loss) | 110 | (107) |
Ending balance | (626) | (442) |
Net Investment Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 185 | 21 |
Other comprehensive income/(loss) before reclassifications | (57) | 47 |
Amounts reclassified from AOCL | 0 | 0 |
Other comprehensive income/(loss) | (57) | 47 |
Ending balance | $ 128 | $ 68 |
Indebtedness - Summary of Total
Indebtedness - Summary of Total Indebtedness (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal Amount | $ 7,758 | $ 7,734 |
Fair Value of Interest Rate Swap | (192) | (239) |
Unamortized (Discount) Premium | (53) | (55) |
Unamortized Debt Issuance Costs | (51) | (51) |
Carrying Amount | 7,462 | 7,389 |
Current portion | (499) | 0 |
Long-term debt | $ 6,963 | $ 7,389 |
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 | 0 | (1) |
Unamortized Debt Issuance Costs | (1) | (1) |
Carrying Amount | $ 499 | $ 498 |
5.25% 2014 Senior Notes, due 2044 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 5.25% | 5.25% |
Principal Amount | $ 600 | $ 600 |
Fair Value of Interest Rate Swap | (37) | (42) |
Unamortized (Discount) Premium | 3 | 3 |
Unamortized Debt Issuance Costs | (4) | (4) |
Carrying Amount | $ 562 | $ 557 |
1.75% 2015 Senior Notes, due 2027 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 1.75% | 1.75% |
Principal Amount | $ 543 | $ 534 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | 0 | 0 |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 541 | $ 532 |
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 | (31) | (37) |
Unamortized (Discount) Premium | (3) | (3) |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 464 | $ 458 |
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 | (34) | (42) |
Unamortized (Discount) Premium | (2) | (2) |
Unamortized Debt Issuance Costs | (2) | (2) |
Carrying Amount | $ 362 | $ 354 |
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 | (38) | (44) |
Unamortized (Discount) Premium | (6) | (6) |
Unamortized Debt Issuance Costs | (4) | (4) |
Carrying Amount | $ 352 | $ 346 |
0.950% Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 0.95% | 0.95% |
Principal Amount | $ 815 | $ 800 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (2) | (2) |
Unamortized Debt Issuance Costs | (4) | (4) |
Carrying Amount | $ 809 | $ 794 |
3.75% 2020 Senior Notes, due 2025 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.75% | 3.75% |
Principal Amount | $ 700 | $ 700 |
Fair Value of Interest Rate Swap | (23) | (27) |
Unamortized (Discount) Premium | 0 | (1) |
Unamortized Debt Issuance Costs | (3) | (3) |
Carrying Amount | $ 674 | $ 669 |
3.25% 2020 Senior Notes, due 2050 | ||
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 | (4) | (4) |
Unamortized Debt Issuance Costs | (3) | (3) |
Carrying Amount | $ 293 | $ 293 |
2.55% 2020 Senior Notes, due 2060 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.55% | 2.55% |
Principal Amount | $ 300 | $ 300 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (2) | (2) |
Unamortized Debt Issuance Costs | (3) | (3) |
Carrying Amount | $ 295 | $ 295 |
2.00% 2021 Senior Notes, due 2031 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2% | 2% |
Principal Amount | $ 600 | $ 600 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (7) | (7) |
Unamortized Debt Issuance Costs | (4) | (4) |
Carrying Amount | $ 589 | $ 589 |
2.75% 2021 Senior Notes, due 2041 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 2.75% | 2.75% |
Principal Amount | $ 600 | $ 600 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (13) | (13) |
Unamortized Debt Issuance Costs | (5) | (5) |
Carrying Amount | $ 582 | $ 582 |
3.10% 2021 Senior Notes, due 2061 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.10% | 3.10% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | 0 | 0 |
Unamortized (Discount) Premium | (7) | (7) |
Unamortized Debt Issuance Costs | (5) | (5) |
Carrying Amount | $ 488 | $ 488 |
3.75% 2022 Senior Notes, due 2052 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 3.75% | 3.75% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | (21) | (35) |
Unamortized (Discount) Premium | (8) | (8) |
Unamortized Debt Issuance Costs | (5) | (5) |
Carrying Amount | $ 466 | $ 452 |
4.25% 2022 Senior Notes, due 2032 | ||
Debt Instrument [Line Items] | ||
Notes payable, interest rate | 4.25% | 4.25% |
Principal Amount | $ 500 | $ 500 |
Fair Value of Interest Rate Swap | (8) | (12) |
Unamortized (Discount) Premium | (2) | (2) |
Unamortized Debt Issuance Costs | (4) | (4) |
Carrying Amount | $ 486 | $ 482 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt instrument, covenant compliance | At March 31, 2023, 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 March 31, 2023, there were no such cross defaults. |
Indebtedness - Principal Paymen
Indebtedness - Principal Payments Due on Long-Term Borrowings (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2023 (After March 31,) | $ 0 | |
2024 | 500 | |
2025 | 700 | |
2026 | 0 | |
2027 | 543 | |
Thereafter | 6,015 | |
Total principal payment | $ 7,758 | $ 7,734 |
Indebtedness - Summary of Compo
Indebtedness - Summary of Components of Interest as Presented in Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Income | $ 10 | $ 2 |
Expense on borrowings | (70) | (48) |
Income (expense) on UTPs and other tax related liabilities | 18 | (3) |
Net periodic pension costs - interest component | (6) | (4) |
Interest expense, net | (48) | (53) |
Interest paid | 96 | $ 78 |
Unrecognized tax benefits, income tax penalties and interest expense, reduction of tax-related interest expense related to resolution of tax matters | $ 22 |
Indebtedness - Fair Value and C
Indebtedness - Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Carrying Amount | $ 7,462 | $ 7,389 |
Estimated Fair Value | $ 6,744 | $ 6,564 |
Leases - Additional Information
Leases - Additional Information (Detail) | Mar. 31, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term (years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term (years) | 20 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 24 | $ 27 |
Sublease income | (2) | (2) |
Variable lease cost | 5 | 5 |
Total lease cost | $ 27 | $ 30 |
Leases - Operating Leases Infor
Leases - Operating Leases Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 30 | $ 31 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 5 | $ 15 |
Weighted-average remaining lease term (years) | 4 years 9 months 18 days | 5 years 6 months |
Weighted-average discount rate applied to operating leases (percent) | 3.10% | 3.10% |
Leases - Operating Leases, Futu
Leases - Operating Leases, Future Minimum Payment (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 (After March 31,) | $ 90 | |
2024 | 113 | |
2025 | 100 | |
2026 | 81 | |
2027 | 65 | |
After 2026 | 41 | |
Total lease payments (undiscounted) | 490 | |
Less: Interest | 35 | |
Present value of lease liabilities: | 455 | |
Lease liabilities - current | 106 | $ 106 |
Lease liabilities - noncurrent | $ 349 | $ 368 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) segment lineOfBusiness | |
Segment Reporting Information [Line Items] | |
Number of operating segments (segment) | segment | 2 |
Number of reportable segments | segment | 2 |
2022-2023 Geolocation Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cost incurred to date | $ 127 |
Employee Severance | 2022-2023 Geolocation Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cost incurred to date | 98 |
Employee Severance | 2022-2023 Geolocation Restructuring Program | Minimum | |
Segment Reporting Information [Line Items] | |
Restructuring expected cost | 105 |
Employee Severance | 2022-2023 Geolocation Restructuring Program | Maximum | |
Segment Reporting Information [Line Items] | |
Restructuring expected cost | 120 |
2022-2023 Geolocation Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cost incurred to date | $ 127 |
MA | |
Segment Reporting Information [Line Items] | |
Number of lines of businesses | lineOfBusiness | 3 |
MA | 2022-2023 Geolocation Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cost incurred to date | $ 57 |
MA | 2022-2023 Geolocation Restructuring Program | Minimum | |
Segment Reporting Information [Line Items] | |
Restructuring expected cost | 75 |
MA | 2022-2023 Geolocation Restructuring Program | Maximum | |
Segment Reporting Information [Line Items] | |
Restructuring expected cost | $ 100 |
MIS | |
Segment Reporting Information [Line Items] | |
Number of lines of businesses | lineOfBusiness | 5 |
MIS | 2022-2023 Geolocation Restructuring Program | |
Segment Reporting Information [Line Items] | |
Cost incurred to date | $ 70 |
MIS | 2022-2023 Geolocation Restructuring Program | Minimum | |
Segment Reporting Information [Line Items] | |
Restructuring expected cost | 80 |
MIS | 2022-2023 Geolocation Restructuring Program | Maximum | |
Segment Reporting Information [Line Items] | |
Restructuring expected cost | $ 90 |
Segment Information - Financial
Segment Information - Financial Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | $ 1,470 | $ 1,522 |
Operating, SG&A | 814 | 788 |
Adjusted Operating Income | 656 | 734 |
Depreciation and amortization | 88 | 78 |
Restructuring | 14 | 0 |
Operating income | 554 | 656 |
Eliminations | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | (48) | (45) |
Operating, SG&A | (48) | (45) |
Adjusted Operating Income | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Restructuring | 0 | 0 |
MIS | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | 733 | 827 |
MIS | Operating Segments | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | 778 | 870 |
Operating, SG&A | 336 | 360 |
Adjusted Operating Income | 442 | 510 |
Depreciation and amortization | 18 | 18 |
Restructuring | 6 | 0 |
MIS | Eliminations | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | 45 | 43 |
MA | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | 737 | 695 |
MA | Operating Segments | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | 740 | 697 |
Operating, SG&A | 526 | 473 |
Adjusted Operating Income | 214 | 224 |
Depreciation and amortization | 70 | 60 |
Restructuring | 8 | 0 |
MA | Eliminations | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
Revenue | $ 3 | $ 2 |
Segment Information - Cumulativ
Segment Information - Cumulative Restructuring Expense (Details) - 2022-2023 Geolocation Restructuring Program $ in Millions | Mar. 31, 2023 USD ($) |
Segment Reporting Information [Line Items] | |
Cost incurred to date | $ 127 |
MA | |
Segment Reporting Information [Line Items] | |
Cost incurred to date | 57 |
MIS | |
Segment Reporting Information [Line Items] | |
Cost incurred to date | $ 70 |
Segment Information - Consolida
Segment Information - Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,470 | $ 1,522 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 770 | 823 |
Non-U.S. | ||
Segment Reporting Information [Line Items] | ||
Revenue | 700 | 699 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 451 | 457 |
Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Revenue | 151 | 141 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 98 | $ 101 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | Apr. 24, 2023 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividend declared, per share (in USD per share) | $ 0.77 |