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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2024
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. 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 CODM 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 CODM 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 September 30,
| 2024 |  | 2023
| MA |  | MIS |  | Eliminations |  | Consolidated |  | MA |  | MIS |  | Eliminations |  | Consolidated
Total external revenue | $ | 831 |  |  | $ | 982 |  |  | $ | — |  |  | $ | 1,813 |  |  | $ | 776 |  |  | $ | 696 |  |  | $ | — |  |  | $ | 1,472 |
Intersegment revenue | 3 |  |  | 48 |  |  | (51) |  |  | — |  |  | 3 |  |  | 47 |  |  | (50) |  |  | — |
Revenue | 834 |  |  | 1,030 |  |  | (51) |  |  | 1,813 |  |  | 779 |  |  | 743 |  |  | (50) |  |  | 1,472 |
Operating, SG&A | 581 |  |  | 416 |  |  | (51) |  |  | 946 |  |  | 517 |  |  | 348 |  |  | (50) |  |  | 815 |
Adjusted Operating Income | $ | 253 |  |  | $ | 614 |  |  | $ | — |  |  | $ | 867 |  |  | $ | 262 |  |  | $ | 395 |  |  | $ | — |  |  | $ | 657 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization | 88 |  |  | 20 |  |  | — |  |  | 108 |  |  | 76 |  |  | 19 |  |  | — |  |  | 95 |
Restructuring | 4 |  |  | 2 |  |  | — |  |  | 6 |  |  | 22 |  |  | 5 |  |  | — |  |  | 27 |
Charges related to asset abandonment | 15 |  |  | — |  |  | — |  |  | 15 |  |  | — |  |  | — |  |  | — |  |  | — |
Operating Income |  |  |  |  |  |  | $ | 738 |  |  |  |  |  |  |  |  | $ | 535 |
| Nine Months Ended September 30,
| 2024 |  | 2023
| MA |  | MIS |  | Eliminations |  | Consolidated |  | MA |  | MIS |  | Eliminations |  | Consolidated
Total external revenue | $ | 2,432 |  |  | $ | 2,984 |  |  | $ | — |  |  | $ | 5,416 |  |  | $ | 2,260 |  |  | $ | 2,176 |  |  | $ | — |  |  | $ | 4,436 |
Intersegment revenue | 10 |  |  | 144 |  |  | (154) |  |  | — |  |  | 10 |  |  | 138 |  |  | (148) |  |  | — |
Revenue | 2,442 |  |  | 3,128 |  |  | (154) |  |  | 5,416 |  |  | 2,270 |  |  | 2,314 |  |  | (148) |  |  | 4,436 |
Operating, SG&A | 1,721 |  |  | 1,174 |  |  | (154) |  |  | 2,741 |  |  | 1,584 |  |  | 1,034 |  |  | (148) |  |  | 2,470 |
Adjusted Operating Income | $ | 721 |  |  | $ | 1,954 |  |  | $ | — |  |  | $ | 2,675 |  |  | $ | 686 |  |  | $ | 1,280 |  |  | $ | — |  |  | $ | 1,966 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization | 260 |  |  | 58 |  |  | — |  |  | 318 |  |  | 220 |  |  | 56 |  |  | — |  |  | 276 |
Restructuring | 7 |  |  | 6 |  |  | — |  |  | 13 |  |  | 38 |  |  | 13 |  |  | — |  |  | 51 |
Charges related to asset abandonment | 30 |  |  | — |  |  | — |  |  | 30 |  |  | — |  |  | — |  |  | — |  |  | — |
Operating Income |  |  |  |  |  |  | $ | 2,314 |  |  |  |  |  |  |  |  | $ | 1,639 |
The table below shows cumulative restructuring expense incurred through September 30, 2024 by reportable segment.
| MA |  | MIS |  | Total
2022 - 2023 Geolocation Restructuring Program | $ | 115 |  |  | $ | 98 |  |  | $ | 213 |
The 2022 - 2023 Geolocation Restructuring Program is more fully discussed in Note 9. Consolidated Revenue Information by Geographic Area
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
United States | $ | 999 |  |  | $ | 762 |  |  | $ | 2,942 |  |  | $ | 2,300 |
Non-U.S.: |  |  |  |  |  |  |
EMEA | 546 |  |  | 465 |  |  | 1,654 |  |  | 1,404 |
Asia-Pacific | 157 |  |  | 143 |  |  | 476 |  |  | 437 |
Americas | 111 |  |  | 102 |  |  | 344 |  |  | 295 |
Total Non-U.S. | 814 |  |  | 710 |  |  | 2,474 |  |  | 2,136 |
Total | $ | 1,813 |  |  | $ | 1,472 |  |  | $ | 5,416 |  |  | $ | 4,436 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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