XML 194 R40.htm IDEA: XBRL DOCUMENT v3.25.0.1

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2024

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:

												Notional Amount
Hedged Item						Nature of Swap						As of  December 31, 2024						As of  December 31, 2023						Floating  Interest Rate
2014 Senior Notes due 2044						Pay Floating/Receive Fixed						$	300					$	300					SOFR
2017 Senior Notes due 2028						Pay Floating/Receive Fixed						500						500						SOFR
2018 Senior Notes due 2029						Pay Floating/Receive Fixed						400						400						SOFR
2018 Senior Notes due 2048						Pay Floating/Receive Fixed						300						300						SOFR
2020 Senior Notes due 2025						Pay Floating/Receive Fixed						300						300						SOFR
2022 Senior Notes due 2052						Pay Floating/Receive Fixed						500						500						SOFR
2022 Senior Notes due 2032						Pay Floating/Receive Fixed						250						250						SOFR
Total												$	2,550					$	2,550

The following tables provide information on the cross-currency swaps designated as net investment hedges under ASC Topic 815:

December 31, 2024
						Pay												Receive
Nature of Swap						Notional Amount						Weighted Average Interest Rate						Notional Amount						Weighted Average Interest Rate
Pay Fixed/Receive Fixed						€	965					2.91%						$	1,014					4.41%
Pay Floating/Receive Floating						2,138						Based on ESTR						2,250						Based on SOFR
Total						€	3,103											$	3,264

December 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

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 (expense) recognized in the Consolidated Statements of Operations
												Year Ended December 31,
												2024						2023						2022
Interest expense, net												$	(237)					$	(251)					$	(231)
Description						Location on consolidated Statements of Operations
Net interest settlements and accruals on interest rate swaps						Interest expense, net						$	(96)					$	(89)					$	(8)
Fair value changes on interest rate swaps						Interest expense, net						$	14					$	56					$	(228)
Fair value changes on hedged debt						Interest expense, net						$	(14)					$	(56)					$	228

Schedule of Net Investment Hedges, Notional Amount That Will Be Settled At Expiry

As of December 31, 2024, these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company:

Year Ending December 31,						Notional Amount (Pay)						Notional Amount (Receive)
2026						€	450					$	500
2027						531						550
2028						588						600
2029						573						614
2031						481						500
2032						480						500
Total						€	3,103					$	3,264

Amount of Gain/(Loss) Recognized in AOCI on Derivative Net Investment Hedging Relationships

The following table provides information on the gains (losses) on the Company’s net investment and cash flow hedges:

			Amount of Gain (Loss) Recognized in AOCL on Derivative, net of Tax																		Amount of Gain (Loss) Reclassified from AOCL into Income, net of tax																		Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships			Year Ended December 31,																		Year Ended December 31,																		Year Ended December 31,
			2024						2023						2022						2024						2023						2022						2024						2023						2022
Cross currency swaps			$	157					$	(97)					$	99					$	—					$	—					$	—					$	47					$	54					$	56
Long-term debt			65						(35)						65						—						—						—						—						—						—
Total net investment hedges			$	222					$	(132)					$	164					$	—					$	—					$	—					$	47					$	54					$	56
Derivatives in Cash Flow Hedging Relationships
Cross currency swaps			$	—					$	—					$	—					$	—					$	1					$	—					$	—					$	—					$	—
Interest rate contracts			—						—						—						(2)						(2)						(2)						—						—						—
Total cash flow hedges			$	—					$	—					$	—					$	(2)					$	(1)					$	(2)					$	—					$	—					$	—
Total			$	222					$	(132)					$	164					$	(2)					$	(1)					$	(2)					$	47					$	54					$	56

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
			December 31, 2024						December 31, 2023
Net investment hedges
Cross currency swaps			$	178					$	21
FX forwards			29						29
Long-term debt			68						3
Total net investment hedges			275						53
Cash flow hedges
Interest rate contracts			(43)						(45)
Cross currency swaps			1						1
Total cash flow hedges			(42)						(44)
Total net gain in AOCL			$	233					$	9

The following tables show changes in AOCL by component (net of tax):

			Year Ended December 31, 2024
			Pension and  Other Retirement Benefits						Gains (Losses) on Cash Flow Hedges						Foreign  Currency Translation Adjustments						Net Investment Hedges												Total
Balance at December 31, 2023			$	(56)					$	(44)					$	(520)					$	53											$	(567)
Other comprehensive income (loss) before reclassifications			19						—						(312)						222												(71)
Amounts reclassified from AOCL			(2)						2						—						—												—
Other comprehensive income (loss)			17						2						(312)						222												(71)
Balance at December 31, 2024			$	(39)					$	(42)					$	(832)					$	275											$	(638)

			Year Ended December 31, 2023
			Pension and  Other Retirement Benefits						Gains (Losses) on Cash Flow Hedges						Foreign  Currency Translation Adjustments						Net Investment Hedges												Total
Balance at December 31, 2022			$	(47)					$	(45)					$	(736)					$	185											$	(643)
Other comprehensive income (loss) before reclassifications			(6)						—						216						(132)												78
Amounts reclassified from AOCL			(3)						1						—						—												(2)
Other comprehensive income (loss)			(9)						1						216						(132)												76
Balance at December 31, 2023			$	(56)					$	(44)					$	(520)					$	53											$	(567)

			Year Ended December 31, 2022
			Pension and  Other Retirement Benefits						Gains (Losses) on Cash Flow Hedges						Foreign  Currency Translation Adjustments						Net Investment Hedges												Total
Balance at December 31, 2021			$	(49)					$	(47)					$	(335)					$	21											$	(410)
Other comprehensive income (loss) before reclassifications			—						—						(421)						164												(257)
Amounts reclassified from AOCL			2						2						20						—												24
Other comprehensive income (loss)			2						2						(401)						164												(233)
Balance at December 31, 2022			$	(47)					$	(45)					$	(736)					$	185											$	(643)

Summary of Notional Amounts of Outstanding Derivative Positions

The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards:

			December 31, 2024															December 31, 2023
Notional amount of currency pair(1):			Sell						Buy									Sell						Buy
Contracts to sell USD for GBP			$	604					£			470						$	513					£			407
Contracts to sell USD for JPY			$	29					¥			4,000						$	14					¥			2,000
Contracts to sell USD for CAD			$	35					C$			50						$	147					C$			200
Contracts to sell USD for SGD			$	45					S$			59						$	50					S$			67
Contracts to sell USD for EUR			$	—					€			—						$	60					€			55
Contracts to sell USD for INR			$	23					₹			1,900						$	23					₹			1,900
Contracts to sell EUR for USD			€	12					$			12						€	—					$			—
Contracts to sell USD for AUD			$	—					A$			—						$	5					A$			8
Contracts to sell CAD for USD			C$	—					$			—						C$	25					$			19

(1) € = euro, £ = British pound, S$ = Singapore dollar, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar, ₹= Indian rupee, A$ = Australian dollar

Gains and Losses Recognized in Consolidated Statement of Operations on Derivatives Not Designated as Hedging instruments

The following table summarizes the impact to the consolidated statements of operations relating to the gains (losses) on the Company’s derivatives which are not designated as hedging instruments:

												Year Ended December 31,
Derivatives not designated as accounting hedges						Location on Consolidated Statements of Operations						2024						2023						2022
FX forwards						Other non-operating income, net						$	(24)					$	15					$	(72)
Total return swaps						Operating expense						$	5					$	2					$	—
Total return swaps						SG&A expense						$	1					$	1					$	—

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 instruments as well as the carrying value of its non-derivative debt instruments designated and qualifying as net investment hedges:

			Derivative and Non-derivative Instruments
			Consolidated Balance Sheet Location						December 31, 2024						December 31, 2023
Assets:
Derivatives designated as accounting hedges:
Cross currency swaps designated as net investment hedges			Other assets						$	58					$	3
Total derivatives designated as accounting hedges									58						3
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities			Other current assets						—						13
Total assets									$	58					$	16
Liabilities:
Derivatives designated as accounting hedges:
Interest rate swaps designated as fair value hedges			Accounts payable and accrued liabilities						$	3					$	—
Cross currency swaps designated as net investment hedges			Other liabilities						26						183
Interest rate swaps designated as fair value hedges			Other liabilities						166						183
Total derivatives designated as accounting hedges									195						366
Non-derivatives designated as accounting hedges:
Long-term debt designated as net investment hedge			Long-term debt						1,294						1,381
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities			Accounts payable and accrued liabilities						21						—
Total liabilities									$	1,510					$	1,747

X

- Definition

Schedule of Net Investment Hedges, Notional Amount That Will Be Settled At Expiry

+ References

No definition available.

+ Details

Name:	mco_ScheduleOfNetInvestmentHedgesNotionalAmountThatWillBeSettledAtExpiryTableTextBlock
Namespace Prefix:	mco_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of accumulated other comprehensive income (loss).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482790/220-10-45-14A

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 830
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481674/830-30-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 830
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 20
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481694/830-30-45-20

+ Details

Name:	us-gaap_ScheduleOfAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4E

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4C

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4A

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4B

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-SubTopic 10
-Topic 815
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-1B

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-8

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4B

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-1

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-5

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4C

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the effective portion of gains and losses on derivative instruments (and nonderivative instruments) designated and qualifying in net investment hedges recorded in accumulated other comprehensive income (loss) during the term of the hedging relationship and reclassified into earnings during the current period.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4CCC
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4CCC

+ Details

Name:	us-gaap_ScheduleOfNetInvestmentHedgesInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the notional amounts of outstanding derivative positions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A

+ Details

Name:	us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4C

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 4CC
-SubTopic 10
-Topic 815
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4CC

+ Details

Name:	us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration