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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 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.
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 - DS, R&I, and D&I.
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 generally allocated to each segment based on historical revenue amounts.
“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.
Financial Information by Segment
The table below presents revenue, significant expenses regularly provided to the CODM and Adjusted Operating Income by reportable segment. The CODM, identified as the Company's CEO, utilizes the Adjusted Operating Income measure to assess the profitability of the Company and each of its reportable segments each quarter. Adjusted Operating Income is also used in our budgeting and forecasting processes, enabling the allocation of capital resources across the Company's strategic initiatives.
Year Ended December 31,
20242023
MA
MIS
EliminationsConsolidated
MA
MIS
EliminationsConsolidated
Total external revenue$3,295 $3,793 $— $7,088 $3,056 $2,860 $— $5,916 
Intersegment revenue13 193 (206)— 13 186 (199)— 
Revenue3,308 3,986 (206)7,088 3,069 3,046 (199)5,916 
Compensation expense
1,370 1,169 — 2,539 1,238 1,003 — 2,241 
Non-compensation expense
731 410 — 1,141 708 370 — 1,078 
Intersegment expense
193 13 (206)— 186 13 (199)— 
Operating, SG&A2,294 1,592 (206)3,680 2,132 1,386 (199)3,319 
Adjusted Operating Income1,014 2,394 — 3,408 937 1,660 — 2,597 
Add:
Depreciation and amortization353 78 — 431 298 75 — 373 
Restructuring42 17 — 59 59 28 — 87 
Charges related to asset abandonment43 — — 43 — — — — 
Operating Income$2,875 $2,137 
Non-operating (expense) income, net$(176)$(202)
Income before provision for income taxes$2,699 $1,935 
Year Ended December 31, 2022
MAMISEliminationsConsolidated
Total external revenue$2,769 $2,699 $— $5,468 
Intersegment revenue8 174 (182)— 
Revenue2,777 2,873 (182)5,468 
Compensation expense1,116 940 — 2,056 
Non-compensation expense647 437 — 1,084 
Intersegment expense174 8 (182)— 
Operating, SG&A1,937 1,385 (182)3,140 
Adjusted Operating Income840 1,488 — 2,328 
Add:
Depreciation and amortization250 81 — 331 
Restructuring49 65 — 114 
Operating income$1,883 
Non-operating (expense) income, net$(123)
Income before provision for income taxes$1,760 
The table below shows cumulative restructuring expense incurred through December 31, 2024 by reportable segment.
MAMISTotal
2022 - 2023 Geolocation Restructuring Program$116 $98 $214 
Strategic and Operational Efficiency Restructuring Program
$34 $11 $45 
The costs expected to be incurred related to the Strategic and Operational Efficiency Restructuring Program are $125 million to $155 million for the MA segment and $75 million to $95 million for the MIS segment, which include allocations of charges associated with corporate functions.
The restructuring programs are more fully discussed in Note 9.
CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA
Year Ended December 31,
202420232022
Revenue:
U.S.$3,836 $3,071 $2,865 
Non-U.S.:
EMEA2,174 1,886 1,708 
Asia-Pacific629 570 539 
Americas449 389 356 
Total Non-U.S.3,252 2,845 2,603 
Total$7,088 $5,916 $5,468 
Long-lived assets at December 31:
U.S.$4,395 $4,323 $4,408 
Non-U.S.4,361 4,562 4,489 
Total$8,756 $8,885 $8,897