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RESTRUCTURING | 12 Months Ended
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Dec. 31, 2024
Restructuring and Related Activities [Abstract] |
RESTRUCTURING | RESTRUCTURING On December 19, 2024, the CEO of Moody’s approved the Strategic and Operational Efficiency Restructuring Program. The Company estimates that upon completion, the program will result in annualized savings of $250 million to $300 million. This program relates to the Company's strategy to realign its operations toward high priority growth areas and to consolidate certain functions to simplify the organization to enable improved operating efficiency and leverage. This program will primarily include a reduction in staff, the rationalization and exit of certain leased office spaces and the retirement of certain legacy software applications. The program includes $170 million to $200 million of expected pre-tax personnel-related restructuring charges, an amount that includes severance costs, expense related to the modification of equity awards and other related costs primarily determined under the Company’s existing severance plans. In addition, the program is expected to result in $10 million to $20 million of non-cash charges from the exit from certain leased office spaces and $20 million to $30 million of non-cash charges related to incremental amortization of internally developed software due to a reduction in the useful life of the software assets. The savings generated from the Strategic and Operational Efficiency Restructuring Program are expected to strengthen the Company's operating margin, with a portion being deployed to support strategic investments. The Strategic and Operational Efficiency Restructuring Program is expected to be substantially complete by the end of 2026. Cash outlays associated with this program are expected to be $170 million to $200 million, which are expected to be paid through 2027. On June 30, 2022, the CEO of Moody’s approved the 2022 - 2023 Geolocation Restructuring Program. This program related to the Company's post-COVID-19 geolocation strategy and other strategic initiatives and included the rationalization and exit of certain leased office spaces and a reduction in staff, including the relocation of certain job functions. Cumulative charges related to this program are shown in the table below. The savings generated from the 2022 - 2023 Geolocation Restructuring Program will 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 was substantially complete at the end of 2023. Total expenses included in the accompanying consolidated statements of operations related to the aforementioned restructuring programs are outlined below:
| Year ended December 31, |  |  | Cumulative expense incurred |
| 2024 |  | 2023 |  | 2022 |  |  |
2022 - 2023 Geolocation Restructuring Program |
Employee Termination Costs | $ | 14 |  |  | $ | 51 |  |  | $ | 85 |  |  |  | $ | 150 |  |
Real Estate Related Costs (1) | — |  |  | 36 |  |  | 27 |  |  |  | 63 |  |
Other Costs (2) | — |  |  | — |  |  | 1 |  |  |  | 1 |  |
Total 2022-2023 Geolocation Restructuring Program Costs | $ | 14 |  |  | $ | 87 |  |  | $ | 113 |  |  |  | $ | 214 |  |
Strategic and Operational Efficiency Restructuring Program |
Employee Termination Costs (3) | $ | 41 |  |  | $ | — |  |  | $ | — |  |  |  | $ | 41 |  |
Other Costs (2) | 4 |  |  | — |  |  | — |  |  |  | 4 |  |
Total Strategic and Operational Efficiency Restructuring Program Costs | $ | 45 |  |  | $ | — |  |  | $ | — |  |  |  | $ | 45 |  |
Total Restructuring | $ | 59 |  |  | $ | 87 |  |  | $ | 113 |  |  |  |  |
(1)For the year ended December 31, 2023, primarily includes ROU Asset impairment charges. For the year ended December 31, 2022, primarily includes ROU Asset and leasehold improvement impairment charges and the non-cash acceleration of amortization of abandoned ROU Assets and leasehold improvements. The fair value of the impaired assets in both periods was determined by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of those assets subsequent to the impairment for the year ended December 31, 2023 was $4 million and was categorized as Level 3 within the ASC Topic 820 fair value hierarchy. The fair value of those assets subsequent to the impairment for the year ended December 31, 2022 was $0. (2)Primarily includes professional service fees related to execution of the restructuring program. (3)Primarily includes severance costs and expense related to the modification of equity awards. Changes to the restructuring liability for the aforementioned restructuring programs were as follows:
| 2024 |  | 2023 |  | 2022
Balance as of January 1 | $ | 36 |  |  | $ | 64 |  |  | $ | — |
2022 - 2023 Geolocation Restructuring Program: |  |  |  |  |
Cost incurred and adjustments | 14 |  |  | 51 |  |  | 86 |
Cash payments | (42) |  |  | (79) |  |  | (22) |
Strategic and Operational Efficiency Restructuring Program: |  |  |  |  |
Cost incurred and adjustments | 44 |  |  | — |  |  | — |
Cash payments | (5) |  |  | — |  |  | — |
Balance as of December 31 (1) | $ | 47 |  |  | $ | 36 |  |  | $ | 64 |
(1)Restructuring liability is primarily comprised of employee termination costs and other severance-related charges. As of December 31, 2024, substantially all of the remaining $47 million restructuring liability is expected to be paid out in 2025.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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