OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION

9 Months Ended

Sep. 30, 2025

Other Balance Sheet And Statement Of Operations Information [Abstract]

OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION

The following tables contain additional detail related to certain balance sheet captions:


	September 30, 2025		December 31, 2024
Other current assets:
Prepaid taxes	$	112	$	81
Prepaid expenses	188		179
Capitalized costs to obtain and fulfill sales contracts	131		131
Foreign exchange forwards on certain assets and liabilities	2		—

Interest receivable on interest rate and cross currency swaps	59		77
Assets held-for-sale	32		—
Other	42		47
Total other current assets	$	566	$	515

Other assets:
Investments in non-consolidated affiliates	$	483	$	465
Deposits for real-estate leases	17		15
Indemnification assets related to acquisitions	116		109
Mutual funds, certificates of deposit and money market deposit accounts/funds	106		98
Company owned life insurance (at contract value)	50		48
Capitalized costs to obtain sales contracts	226		214
Derivative instruments designated as accounting hedges	—		58
Pension and other retirement employee benefits	62		60
Other	75		99
Total other assets	$	1,135	$	1,166

Accounts payable and accrued liabilities:
Salaries and benefits	$	135	$	133
Incentive compensation	263		452
Customer credits, advanced payments and advanced billings	129		142

Dividends	14		32
Professional service fees	40		38
Interest accrued on debt	51		92
Accounts payable	54		53
Income taxes	89		144
Pension and other retirement employee benefits	11		11
Accrued royalties	19		25
Foreign exchange forwards on certain assets and liabilities	4		21
Restructuring liability	36		46

Derivative instruments designated as accounting hedges	4		3
Interest payable on interest rate and cross currency swaps	53		60
Liabilities held-for-sale	32		—
Other	98		92
Total accounts payable and accrued liabilities	$	1,032	$	1,344


	September 30, 2025		December 31, 2024
Other liabilities:
Pension and other retirement employee benefits	$	208	$	195
Interest accrued on UTPs	63		47
MAKS indemnification provisions	19		19
Income tax liability - non-current portion	—		12
Derivative instruments designated as accounting hedges	570		192

Other	41		52
Total other liabilities	$	901	$	517

Assets and Liabilities Held-for-Sale

In August 2025, the Company entered into a definitive agreement to sell the MA Learning Solutions business. As of September 30, 2025, the assets and liabilities related to this business, which are not material, are classified as held-for-sale. The Company expects the transaction to close during the fourth quarter of 2025.

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:


	September 30, 2025		December 31, 2024
Equity method investments (1)	$	119	$	127
Investments measured using the measurement alternative (2)	350		328
Other	14		10
Total investments in non-consolidated affiliates	$	483	$	465
(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, net, are disclosed within the table below.

Other non-operating income, net:

The following table summarizes the components of other non-operating income, net:


	Three months ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
FX gains (losses)	$	(7)	$	—	$	(10)	$	(7)
Net periodic pension income - non-service and non-interest cost components	9		9		27		25
Income from investments in non-consolidated affiliates	4		8		18		10
Gain on previously held equity method investments (1)	—		7		—		7
Gain on investments	3		4		8		12
Other	(1)		(3)		(1)		(2)
Total	$	8	$	25	$	42	$	45

(1) The amounts for the three and nine months ended September 30, 2024 reflect non-cash gains relating to the step-acquisitions of Praedicat and GCR.

Charges related to asset abandonment:

During the three and nine months ended September 30, 2025, the Company recorded severance charges pursuant to a reduction in staff due to the Company's decision in 2024 to outsource the production of certain sustainability content utilized in our product offerings. During the three and nine months ended September 30, 2024, the Company incurred severance charges and

incremental amortization expense related to the change in estimated useful lives of certain internally developed software and amortizable intangible assets that are associated with the sustainability content offerings for which production is being outsourced. Cumulative charges relating to this action as of September 30, 2025 were $47 million