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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2025
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 generally allocated to each segment based on historical/budgeted 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 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, 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 used in our budgeting and forecasting process, enabling the allocation of capital resources across the Company's strategic initiatives.
Three Months Ended September 30,
20252024
MA
MIS
Eliminations
Consolidated
MA
MIS
Eliminations
Consolidated
Total external revenue$909 $1,098 $— $2,007 $831 $982 $— $1,813 
Intersegment revenue3 50 (53)— 3 48 (51)— 
Revenue912 1,148 (53)2,007 834 1,030 (51)1,813 
Compensation expense
352 283 — 635 350 318 — 668 
Non-compensation expense
197 113 — 310 183 95 — 278 
Intersegment expense
50 3 (53)— 48 3 (51)— 
Operating, SG&A599 399 (53)945 581 416 (51)946 
Adjusted Operating Income$313 $749 $— $1,062 $253 $614 $— $867 
Less:

Depreciation and
amortization		101 22 — 123 88 20 — 108 
Restructuring15 6 — 21 4 2 — 6 
Charges related to asset abandonment1 — — 1 15 — — 15 
Operating Income$917 $738 
Non-operating (expense) income, net
$(50)$(35)
Income before provision for income taxes
$867 $703 
Nine Months Ended September 30,
20252024
MA
MIS
Eliminations
Consolidated
MA
MIS
Eliminations
Consolidated
Total external revenue$2,656 $3,173 $— $5,829 $2,432 $2,984 $— $5,416 
Intersegment revenue9 149 (158)— 10 144 (154)— 
Revenue2,665 3,322 (158)5,829 2,442 3,128 (154)5,416 
Compensation expense
1,069 843 — 1,912 1,023 867 — 1,890 
Non-compensation expense
589 306 — 895 554 297 — 851 
Intersegment expense
149 9 (158)— 144 10 (154)— 
Operating, SG&A1,807 1,158 (158)2,807 1,721 1,174 (154)2,741 
Adjusted Operating Income$858 $2,164 $— $3,022 $721 $1,954 $— $2,675 
Less:

Depreciation and
amortization		292 64 — 356 260 58 — 318 
Restructuring59 22 — 81 7 6 — 13 
Charges related to asset abandonment4 — — 4 30 — — 30 
Operating Income$2,581 $2,314 
Non-operating (expense) income, net
$(138)$(140)
Income before provision for income taxes
$2,443 $2,174 

The table below shows cumulative restructuring expense incurred through September 30, 2025 by reportable segment.
MAMISTotal
Strategic and Operational Efficiency Restructuring Program
$93 $33 $126 
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. This restructuring program is more fully discussed in Note 10.
Consolidated Revenue Information by Geographic Area
Three Months Ended September 30,
Nine Months Ended September 30,
2025202420252024
United States$1,118 $999 $3,175 $2,942 
Non-U.S.:
EMEA594 546 1,776 1,654 
Asia-Pacific180 157 521 476 
Americas115 111 357 344 
Total Non-U.S.889 814 2,654 2,474 
Total$2,007 $1,813 $5,829 $5,416