v3.24.3
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company has five operating segments: Index, Analytics, ESG and Climate, Real Assets and Private Capital Solutions, which are presented as the following four reportable segments: Index, Analytics, ESG and Climate and All Other – Private Assets. During the year ended December 31, 2023, the Company renamed the Burgiss operating segment to Private Capital Solutions. The operating segments of Real Assets and Private Capital Solutions do not individually meet the segment reporting thresholds and have been combined and presented as part of All Other – Private Assets reportable segment.
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.
Prior to the step acquisition of Burgiss on October 2, 2023, the Company’s ownership interest in Burgiss was classified as an equity-method investment. Therefore, prior to the acquisition of Burgiss, the All Other – Private Assets segment did not include the Company’s proportionate share of operating revenues and Adjusted EBITDA related to Burgiss. The Company’s proportionate share of the income or loss from its equity-method investment in Burgiss was not a component of Adjusted EBITDA as it was reported as a component of other (expense) income, net. Following the acquisition, the consolidated results of Burgiss were included in the Company’s Private Capital Solutions operating segment.
The Private Capital Solutions operating segment offers a suite of tools to help private asset investors across mission-critical workflows, such as sourcing terms and conditions, evaluating operating performance of underlying portfolio companies, managing risk and other activities supporting private capital investing.
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 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
September 30,		Nine Months Ended
September 30,
(in thousands)2024202320242023
Operating revenues
Index$404,882 $362,122 $1,175,946 $1,063,820 
Analytics172,376 154,268 502,337 451,219 
ESG and Climate83,643 73,038 241,382 211,315 
All Other - Private Assets63,804 36,011 192,954 112,460 
Total$724,705 $625,439 $2,112,619 $1,838,814 
The following table presents segment profitability and a reconciliation to net income for the periods indicated:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2024202320242023
Index Adjusted EBITDA$314,148 $277,672 $898,898 $808,424 
Analytics Adjusted EBITDA90,287 71,781 244,171 197,710 
ESG and Climate Adjusted EBITDA29,989 25,440 75,010 66,114 
All Other - Private Assets Adjusted EBITDA16,278 11,396 46,151 36,076 
Total reportable segment profitability
450,702 386,289 1,264,230 1,108,324 
Amortization of intangible assets41,939 26,722 121,316 77,543 
Depreciation and amortization of property, equipment and leasehold improvements4,332 5,252 12,639 15,911 
Acquisition-related integration and transaction costs(1)
3,097 1,006 6,951 1,006 
Operating income401,334 353,309 1,123,324 1,013,864 
Other expense (income), net44,398 35,653 130,501 112,678 
Provision for income taxes76,035 57,997 189,210 155,974 
Net income$280,901 $259,659 $803,613 $745,212 
___________________________
(1)Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition.
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
September 30,		Nine Months Ended
September 30,
(in thousands)2024202320242023
Operating revenues
Americas:
United States$297,577 $246,089 $868,695 $740,939 
Other32,631 28,243 95,976 83,353 
Total Americas330,208 274,332 964,671 824,292 
Europe, the Middle East and Africa ("EMEA"):
United Kingdom122,384 105,036 351,922 296,388 
Other157,739 142,826 466,701 420,996 
Total EMEA280,123 247,862 818,623 717,384 
Asia & Australia:    
Japan28,833 24,956 84,377 75,258 
Other85,541 78,289 244,948 221,880 
Total Asia & Australia114,374 103,245 329,325 297,138 
Total$724,705 $625,439 $2,112,619 $1,838,814 
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
September 30,December 31,
(in thousands)20242023
Long-lived assets
Americas:
United States$241,336 $204,238 
Other8,484 11,585 
Total Americas249,820 215,823 
EMEA:
United Kingdom18,033 18,403 
Other20,955 22,072 
Total EMEA38,988 40,475 
Asia & Australia:
Japan1,004 1,321 
Other28,943 31,507 
Total Asia & Australia29,947 32,828 
Total$318,755 $289,126