v3.23.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATIONThe Company has five operating segments: Index, Analytics, ESG and Climate, Real Assets and The Burgiss Group, LLC (“Burgiss”), which are presented as the following four reportable segments: Index, Analytics, ESG and Climate and All Other – Private Assets.
The Index operating segment offers equity and fixed income indexes. The indexes are used in many areas of the investment process, including for developing indexed financial products (e.g., Exchange Traded Funds (“ETFs”), mutual funds, annuities, futures, options, structured products and over-the-counter derivatives), performance benchmarking, portfolio construction and rebalancing, and asset allocation.
The Analytics operating segment offers risk management, performance attribution and portfolio management content, applications and services that provide clients with an integrated view of risk and return and tools for analyzing market, credit, liquidity, counterparty and climate risk across all major asset classes, spanning short-, medium- and long-term time horizons. Clients access Analytics tools and content through MSCI’s proprietary applications and application programming interfaces, third-party applications or directly through their own platforms. Additionally, the Analytics operating segment also provides various managed services to help clients operate more efficiently, including consolidation of client portfolio data from various sources, review and reconciliation of input data and results, and customized reporting.
The ESG and Climate operating segment offers products and services that help institutional investors understand how ESG and climate considerations can impact the long-term risk and return of their portfolio and individual security-level investments. In addition, the ESG and Climate operating segment provides data, ratings, research and tools to help investors navigate increasing regulation, meet new client demands and better integrate ESG and climate elements into their investment processes.
The Real Assets operating segment offers data, benchmarks, return-analytics, climate assessments and market insights for tangible assets such as real estate and infrastructure. In addition, Real Assets performance and risk analytics range from enterprise-wide to property-specific analysis. The Real Assets operating segment also provides business intelligence products to real estate owners, managers, developers and brokers worldwide.
The Burgiss operating segment represents the Company’s equity method investment in Burgiss, a global provider of investment decision support tools for private capital.
The Chief Operating Decision Maker (“CODM”) measures and evaluates reportable segments based on segment operating revenues as well as Adjusted EBITDA and other measures. The Company excludes the following items from segment Adjusted EBITDA: provision for income taxes, other expense (income), net, depreciation and amortization of property, equipment and leasehold improvements, amortization of intangible assets and, at times, certain other transactions or adjustments, including certain non-recurring acquisition-related integration and transaction costs, that the CODM does not consider for the purposes of making decisions to allocate resources among segments or to assess segment performance. Although these amounts are excluded from segment Adjusted EBITDA, they are included in reported consolidated net income and are included in the reconciliation that follows.
The following table presents operating revenues by reportable segment for the periods indicated:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2023202220232022
Operating revenues
Index$362,316 $320,949 $701,698 $651,708 
Analytics149,881 141,684 296,951 281,481 
ESG and Climate71,219 55,128 138,277 107,157 
All Other - Private Assets37,741 34,045 76,449 71,405 
Total$621,157 $551,806 $1,213,375 $1,111,751 
The following table presents segment profitability and a reconciliation to net income for the periods indicated:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2023202220232022
Index Adjusted EBITDA$277,070 $245,170 $530,752 $491,045 
Analytics Adjusted EBITDA65,149 62,961 125,929 113,850 
ESG and Climate Adjusted EBITDA22,798 14,332 40,674 26,424 
All Other - Private Assets Adjusted EBITDA12,289 8,681 24,680 18,369 
Total operating segment profitability377,306 331,144 722,035 649,688 
Amortization of intangible assets26,154 22,179 50,821 43,899 
Depreciation and amortization of property, equipment and leasehold improvements5,199 6,765 10,659 13,299 
Acquisition-related integration and transaction costs(1)
— 1,819 — 3,131 
Operating income345,953 300,381 660,555 589,359 
Other expense (income), net38,795 40,349 77,025 80,384 
Provision for income taxes60,333 49,445 97,977 69,965 
Net income$246,825 $210,587 $485,553 $439,010 
___________________________
(1)Incremental and non-recurring costs attributable to acquisitions directly related to the execution of the transaction and integration of the acquired business that have occurred no later than 12 months after the close of the transaction.
Operating revenues by geography are primarily based on the shipping address of the ultimate customer utilizing the product. The following table presents operating revenues by geographic area for the periods indicated:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2023202220232022
Operating revenues
Americas:
United States$256,434 $229,732 $494,850 $463,088 
Other27,574 23,642 55,110 46,109 
Total Americas284,008 253,374 549,960 509,197 
Europe, the Middle East and Africa ("EMEA"):
United Kingdom99,692 89,187 191,352 176,173 
Other139,851 122,515 278,170 254,088 
Total EMEA239,543 211,702 469,522 430,261 
Asia & Australia:    
Japan24,285 22,843 50,302 46,033 
Other73,321 63,887 143,591 126,260 
Total Asia & Australia97,606 86,730 193,893 172,293 
Total$621,157 $551,806 $1,213,375 $1,111,751 
Long-lived assets consist of property, equipment and leasehold improvements, right of use assets and internally developed capitalized software, net of accumulated depreciation and amortization. The following table presents long-lived assets by geographic area on the dates indicated:
As of
June 30,December 31,
(in thousands)20232022
Long-lived assets
Americas:
United States$198,657 $179,453 
Other12,170 11,971 
Total Americas210,827 191,424 
EMEA:
United Kingdom19,248 19,674 
Other23,678 23,099 
Total EMEA42,926 42,773 
Asia & Australia:
Japan1,403 652 
Other34,362 32,962 
Total Asia & Australia35,765 33,614 
Total$289,518 $267,811