UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark one)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

Or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-14037

____________________

Moody’s Corporation

(Exact name of registrant as specified in its charter)

Delaware	13-3998945
(State of Incorporation)	(I.R.S. Employer Identification No.)

7 World Trade Center at 250 Greenwich Street, New York, New York 10007

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code:

(212) 553-0300

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	MCO	New York Stock Exchange
1.75% Senior Notes Due 2027	MCO 27	New York Stock Exchange
0.950% Senior Notes Due 2030	MCO 30	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Shares Outstanding at March 31, 2024

182.6 million

1

	MOODY’S CORPORATION INDEX TO FORM 10-Q
		Page(s)
	Glossary of Terms and Abbreviations	3
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2024 and 2023	6
	Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2024 and 2023	7
	Consolidated Balance Sheets (Unaudited) at March 31, 2024 and December 31, 2023	8
	Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2024 and 2023	9
	Consolidated Statements of Shareholders’ Equity (Unaudited) for the Three Months Ended March 31, 2024 and 2023	10
	Notes to the Consolidated Financial Statements (Unaudited)	12
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	The Company	34
	Sustainability	34
	Current Matters Impacting Moody's Business	35
	Critical Accounting Estimates	35
	Reportable Segments	35
	Results of Operations	36
	Liquidity and Capital Resources	50
	Non-GAAP Financial Measures	52
	Recently Issued Accounting Standards	54
	Contingencies	54
	Forward-Looking Statements	55
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	56
Item 4.	Controls and Procedures	56
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	57
Item 1A.	Risk Factors	57
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	57
Item 5.	Other Information	57
Item 6.	Exhibits	58
SIGNATURES		59

2

GLOSSARY OF TERMS AND ABBREVIATIONS

The following terms, abbreviations and acronyms are used to identify frequently used terms in this report:

TERM	DEFINITION
ABS	Asset backed securities; a component of SFG
Acquisition-Related Intangible Amortization Expense	Amortization of definite-lived intangible assets acquired by the Company from all business combination transactions
Adjusted Diluted EPS	Diluted EPS excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures”
Adjusted Net Income	Net Income excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures”
Adjusted Operating Income	Operating income excluding the impact of certain items as detailed in the section entitled “Non-GAAP Financial Measures”
Adjusted Operating Margin	Adjusted Operating Income divided by revenue
Americas	Represents countries within North and South America, excluding the U.S.
ARR	Annualized Recurring Revenue; a supplemental performance metric to provide additional insight on the estimated value of MA's recurring revenue contracts at a given point in time, excluding the impact of FX and contracts related to acquisitions
ASC	The FASB Accounting Standards Codification; the sole source of authoritative GAAP as of July 1, 2009 except for rules and interpretive releases of the SEC, which are also sources of authoritative GAAP for SEC registrants
Asia-Pacific	Represents Australia and countries in Asia including but not limited to: China, India, Indonesia, Japan, Republic of South Korea, Malaysia, Singapore, Sri Lanka and Thailand
ASU	The FASB Accounting Standards Update to the ASC. Provides background information for accounting guidance and the bases for conclusions on the changes in the ASC. ASUs are not considered authoritative until codified into the ASC
AUD	Australian dollar
BitSight	A provider that helps global market participants understand cyber risk through ratings, analytics, and performance management tools
Board	The board of directors of the Company
BPS	Basis points
CAD	Canadian dollar
CCXI	China Cheng Xin International Credit Rating Co. Ltd.; China’s first and largest domestic credit rating agency approved by the People’s Bank of China; currently Moody’s owns 30% of CCXI
CDP	Carbon Disclosure Project; an international nonprofit organization that helps companies, cities, states and regions manage their environmental impact through a global disclosure system
CFG	Corporate finance group; an LOB of MIS
CMBS	Commercial mortgage-backed securities; an asset class within SFG
COLI	Corporate-Owned Life Insurance
Common Stock	The Company’s common stock
Company	Moody’s Corporation and its subsidiaries; MCO; Moody’s
CODM	Chief Operating Decision Maker
COVID-19	An outbreak of a novel strain of coronavirus resulting in an international public health crisis and a global pandemic
CP	Commercial Paper
CP Program	A program entered into on August 3, 2016 allowing the Company to privately place CP up to a maximum of $1 billion for which the maturity may not exceed 397 days from the date of issue, and which is backstopped by the 2021 Facility
CRAs	Credit rating agencies
CreditView	A product offering from MA that incorporates credit ratings, research and data from MIS plus research, data and content from MA
Data and Information (D&I)	LOB within MA which provides vast data sets on companies and securities via data feeds and data applications products

3

TERM	DEFINITION
Decision Solutions (DS)	LOB within MA that provides SaaS solutions supporting banking, insurance, and KYC workflows. This LOB utilizes components from the Data & Information and Research & Insights LOBs to provide risk assessment solutions
EMEA	Represents countries within Europe, the Middle East and Africa
EPS	Earnings per share
ESG	Environmental, Social and Governance
ESTR	Euro Short-Term Rate
ETR	Effective tax rate
EU	European Union
EUR	euros
Excess Tax Benefits	The difference between the tax benefit realized at exercise of an option or delivery of a restricted share and the tax benefit recorded at the time the option or restricted share is expensed under GAAP
Exchange Act	The Securities Exchange Act of 1934, as amended
External Revenue	Revenue excluding any intersegment amounts
FASB	Financial Accounting Standards Board
FIG	Financial institutions group; an LOB of MIS
Free Cash Flow	Net cash provided by operating activities less cash paid for capital additions
FX	Foreign exchange
GAAP	U.S. Generally Accepted Accounting Principles
GBP	British pounds
GDP	Gross domestic product
GLoBE	Global Anti-Base Erosion, also known as "Pillar Two"; tax model issued by the OECD in 2023
ICRA	ICRA Limited; a provider of credit ratings and research in India
INR	Indian rupee
JPY	Japanese yen
KYC	Know-your-customer
LOB	Line of business
MA	Moody’s Analytics - a reportable segment of MCO; a global provider of: i) data and information; ii) research and insights; and iii) decision solutions, which help companies make better and faster decisions. MA leverages its industry expertise across multiple risks such as credit, market, financial crime, supply chain, catastrophe and climate to deliver integrated risk assessment solutions that enable business leaders to identify, measure and manage the implications of interrelated risks and opportunities
MAKS	Moody’s Analytics Knowledge Services; formerly known as Copal Amba; provided offshore research and analytic services to the global financial and corporate sectors; business was divested in the fourth quarter of 2019 and was formerly a reporting unit within the MA reportable segment
MCO	Moody’s Corporation and its subsidiaries; the Company; Moody’s
MD&A	Management’s Discussion and Analysis of Financial Condition and Results of Operations
M&A	Mergers and acquisitions
MIS	Moody’s Investors Service - a reportable segment of MCO; MIS publishes credit ratings and provides assessment services on a wide range of debt obligations, programs and facilities, and the entities that issue such obligations in markets worldwide, including various corporate, financial institution and governmental obligations, and structured finance securities; consists of five LOBs - SFG; CFG; FIG; PPIF; and MIS Other
MIS Other	Consists of financial instruments pricing services in the Asia-Pacific region, ICRA non-ratings revenue, and revenue from professional services. These businesses are components of MIS; MIS Other is an LOB of MIS
Moody’s	Moody’s Corporation and its subsidiaries; MCO; the Company
MSS	Moody's Shared Services; primarily consists of information technology and support staff such as finance, human resources and legal that support both MA and MIS

4

TERM	DEFINITION
Net Income	Net income attributable to Moody’s Corporation, which excludes net income from consolidated noncontrolling interests belonging to the minority interest holder
NM	Percentage change is not meaningful
Non-GAAP	A financial measure not in accordance with GAAP; these measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s performance, facilitate comparisons to competitors’ operating results and to provide greater transparency to investors of supplemental information used by management in its financial and operational decision making
NRSRO	Nationally Recognized Statistical Rating Organization, which is a credit rating agency registered with the SEC
OECD	Organization for Economic Co-operation and Development; an international organization that promotes policies that improve economic and social well-being around the world
Operating segment	Term defined in the ASC relating to segment reporting; the ASC defines an operating segment as a component of a business entity that has each of the three following characteristics: i) the component engages in business activities from which it may recognize revenue and incur expenses; ii) the operating results of the component are regularly reviewed by the entity’s CODM; and iii) discrete financial information about the component is available
Pillar Two	Tax model issued by the OECD in 2023; also referred to as the "Global Anti-Base Erosion" or "GLoBE" rules
PPIF	Public, project and infrastructure finance; an LOB of MIS
Recurring Revenue	For MA, represents subscription-based revenue and software maintenance revenue. For MIS, represents recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations, as well as revenue from programs such as commercial paper, medium-term notes and shelf registrations. For MIS Other, represents subscription-based revenue
Reporting unit	The level at which Moody’s evaluates its goodwill for impairment under GAAP; defined as an operating segment or one level below an operating segment
Research and Insights (R&I)	LOB within MA that provides models, scores, expert insights and commentary. This LOB includes credit research; credit models and analytics; economics data and models; and structured finance solutions
RMBS	Residential mortgage-backed securities; an asset class within SFG
RMS	Risk Management Solutions, Inc., a global provider of climate and natural disaster risk modeling and analytics; acquired by the Company in September 2021
SaaS	Software-as-a-Service
SEC	U.S. Securities and Exchange Commission
SFG	Structured finance group; an LOB of MIS
SG&A	Selling, general and administrative expenses
SGD	Singapore dollar
SOFR	Secured Overnight Financing Rate
Tax Act	The “Tax Cuts and Jobs Act” enacted into U.S. law on December 22, 2017 which significantly amends the tax code in the U.S.
Total Debt	All indebtedness of the Company as reflected on the consolidated balance sheets
Transaction Revenue	For MA, represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, and training and certification services. For MIS (excluding MIS Other), represents the initial rating of a new debt issuance as well as other one-time fees. For MIS Other, represents revenue from professional services.
U.K.	United Kingdom
U.S.	United States
USD	U.S. dollar
UTPs	Uncertain tax positions
2022 - 2023 Geolocation Restructuring Program	Restructuring program approved by the chief executive officer of Moody’s on June 30, 2022 relating to the Company's post-COVID-19 geolocation strategy

5

PART I. FINANCIAL INFORMATION

Item 1.         Financial Statements

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Amounts in millions, except per share data)

	Three Months Ended March 31,
	2024		2023
Revenue	$	1,786	$	1,470
Expenses
Operating	467		428
Selling, general, and administrative	413		386
Depreciation and amortization	100		88
Restructuring	5		14
Total expenses	985		916
Operating income	801		554
Non-operating (expense) income, net
Interest expense, net	(62)		(48)
Other non-operating income, net	13		—
Total non-operating (expense) income, net	(49)		(48)
Income before provision for income taxes	752		506
Provision for income taxes	175		5
Net income attributable to Moody's	$	577	$	501
Earnings per share attributable to Moody's common shareholders
Basic	$	3.16	$	2.73
Diluted	$	3.15	$	2.72
Weighted average number of shares outstanding
Basic	182.6		183.3
Diluted	183.4		184.1

The accompanying notes are an integral part of the consolidated financial statements.

6

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Amounts in millions)

	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
	Pre-tax amounts		Tax amounts		After-tax amounts		Pre-tax amounts		Tax amounts		After-tax amounts
Net Income					$	577					$	501
Other Comprehensive Income (Loss):
Foreign Currency Adjustments:
Foreign currency translation adjustments, net	$	(115)	$	—	(115)		$	109	$	(2)	107
Net gains (losses) on net investment hedges	101		(27)		74		(76)		19		(57)
Cash Flow Hedges:
Reclassification of losses included in net income	1		—		1		1		—		1
Pension and Other Retirement Benefits:
Net actuarial losses	(1)		—		(1)		—		—		—
Total other comprehensive (loss) income	$	(14)	$	(27)	$	(41)	$	34	$	17	$	51
Comprehensive income					536						552
Less: comprehensive loss attributable to noncontrolling interests					—						(3)
Comprehensive Income Attributable to Moody's					$	536					$	555

The accompanying notes are an integral part of the consolidated financial statements.

7

MOODY’S CORPORATION

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Amounts in millions, except share and per share data)

	March 31, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	2,476	$	2,130
Short-term investments	58		63
Accounts receivable, net of allowance for credit losses of $35 in 2024 and $35 in 2023	1,835		1,659
Other current assets	437		489
Total current assets	4,806		4,341
Property and equipment, net of accumulated depreciation of $1,320 in 2024 and $1,272 in 2023	613		603
Operating lease right-of-use assets	260		277
Goodwill	5,909		5,956
Intangible assets, net	1,983		2,049
Deferred tax assets, net	270		258
Other assets	1,170		1,138
Total assets	$	15,011	$	14,622
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	976	$	1,076
Current portion of operating lease liabilities	109		108
Current portion of long-term debt	685		—
Deferred revenue	1,612		1,316
Total current liabilities	3,382		2,500
Non-current portion of deferred revenue	61		65
Long-term debt	6,259		7,001
Deferred tax liabilities, net	458		402
Uncertain tax positions	201		196
Operating lease liabilities	280		306
Other liabilities	635		676
Total liabilities	11,276		11,146
Contingencies (Note 15)
Shareholders' equity:
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding	—		—
Series common stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding	—		—
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 342,902,272 shares issued at March 31, 2024 and December 31, 2023, respectively	3		3
Capital surplus	1,252		1,228
Retained earnings	15,081		14,659
Treasury stock, at cost; 160,292,910 and 160,430,754 shares of common stock at March 31, 2024 and December 31, 2023, respectively	(12,153)		(12,005)
Accumulated other comprehensive loss	(608)		(567)
Total Moody's shareholders' equity	3,575		3,318
Noncontrolling interests	160		158
Total shareholders' equity	3,735		3,476
Total liabilities, noncontrolling interests, and shareholders' equity	$	15,011	$	14,622

The accompanying notes are an integral part of the consolidated financial statements.

8

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in millions)

	Three Months Ended March 31,
	2024		2023
Cash flows from operating activities
Net income	$	577	$	501
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	100		88
Stock-based compensation	53		47
Deferred income taxes	25		—
Provision for credit losses on accounts receivable	4		3
Changes in assets and liabilities:
Accounts receivable	(197)		(54)
Other current assets	49		74
Other assets	(19)		(21)
Lease obligations	(7)		(5)
Accounts payable and accrued liabilities	(110)		(178)
Deferred revenue	308		296
Uncertain tax positions and other non-current tax liabilities	6		(119)
Other liabilities	(14)		(24)
Net cash provided by operating activities	775		608
Cash flows from investing activities
Capital additions	(78)		(73)
Purchases of investments	(50)		(45)
Sales and maturities of investments	46		55
Purchases of investments in non-consolidated affiliates	(2)		—
Cash paid for acquisitions, net of cash acquired	(12)		—
Net cash used in investing activities	(96)		(63)
Cash flows from financing activities
Proceeds from stock-based compensation plans	20		11
Treasury shares	(120)		(41)
Repurchase of shares related to stock-based compensation	(53)		(45)
Dividends	(155)		(141)
Net cash used in financing activities	(308)		(216)
Effect of exchange rate changes on cash and cash equivalents	(25)		21
Increase in cash and cash equivalents	346		350
Cash and cash equivalents, beginning of period	2,130		1,769
Cash and cash equivalents, end of period	$	2,476	$	2,119

The accompanying notes are an integral part of the consolidated financial statements.

9

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)

(Amounts in millions, except per share data)

Shareholders of Moody's Corporation
	Common Stock			Capital Surplus		Retained Earnings		Treasury Stock			Accumulated Other Comprehensive Loss		Total Moody's Shareholders' Equity		Non- Controlling Interests		Total Shareholders' Equity
	Shares	Amount						Shares	Amount
Balance at December 31, 2022	342.9	$	3	$	1,054	$	13,618	(159.7)	$	(11,513)	$	(643)	$	2,519	$	170	$	2,689
Net income						501							501		—		501
Dividends ($0.77 per share)						(140)							(140)		—		(140)
Stock-based compensation				47									47				47
Shares issued for stock-based compensation plans at average cost, net				(33)				0.4	(15)				(48)				(48)
Treasury shares repurchased, inclusive of excise tax				—				(0.1)	(42)				(42)				(42)
Currency translation adjustment, net of net investment hedge activity (net of tax of $17 million)											53		53		(3)		50
Amortization of losses on cash flow hedges											1		1				1
Balance at March 31, 2023	342.9	$	3	$	1,068	$	13,979	(159.4)	$	(11,570)	$	(589)	$	2,891	$	167	$	3,058

The accompanying notes are an integral part of the consolidated financial statements.

10

MOODY'S CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)

(Amounts in millions, except per share data)

Shareholders of Moody's Corporation
	Common Stock			Capital Surplus		Retained Earnings		Treasury Stock			Accumulated Other Comprehensive Loss		Total Moody's Shareholders' Equity		Non- Controlling Interests		Total Shareholders' Equity
	Shares	Amount						Shares	Amount
Balance at December 31, 2023	342.9	$	3	$	1,228	$	14,659	(160.4)	$	(12,005)	$	(567)	$	3,318	$	158	$	3,476
Net income						577							577		—		577
Dividends ($0.85 per share)						(155)							(155)		—		(155)
Stock-based compensation				54									54				54
Shares issued for stock-based compensation plans at average cost, net				(30)				0.4	(29)				(59)				(59)
Purchase of noncontrolling interest													—		2		2
Treasury shares repurchased, inclusive of excise tax				—				(0.3)	(119)				(119)				(119)
Currency translation adjustment, net of net investment hedge activity (net of tax of $27 million)											(41)		(41)		—		(41)
Net actuarial losses											(1)		(1)				(1)
Amortization of losses on cash flow hedges											1		1				1
Balance at March 31, 2024	342.9	$	3	$	1,252	$	15,081	(160.3)	$	(12,153)	$	(608)	$	3,575	$	160	$	3,735

The accompanying notes are an integral part of the consolidated financial statements.

11

MOODY’S CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(tabular dollar and share amounts in millions, except per share data)

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Moody’s is a global integrated risk assessment firm that empowers organizations to anticipate, adapt and thrive in a new era of exponential risk. Our data, analytical solutions and insights help decision-makers identify opportunities and manage the risks of doing business with others. Moody’s reports in two reportable segments: MA and MIS.

MA is a global provider of: i) data and information; ii) research and insights; and iii) decision solutions, which help companies make better and faster decisions. MA leverages its industry expertise across multiple risks such as credit, market, financial crime, supply chain, catastrophe and climate to deliver integrated risk assessment solutions that enable business leaders to identify, measure and manage the implications of interrelated risks and opportunities.

MIS publishes credit ratings and provides assessment services on a wide range of debt obligations, programs and facilities, and the entities that issue such obligations in markets worldwide, including various corporate, financial institution and governmental obligations, and structured finance securities.

These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the Company’s consolidated financial statements and related notes in the Company’s 2023 annual report on Form 10-K filed with the SEC on February 14, 2024. The results of interim periods are not necessarily indicative of results for the full year or any subsequent period. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the periods presented have been included. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.

Certain reclassifications have been made to prior period amounts to conform to the current presentation.

Recently Issued Accounting Standards

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU No. 2023-07"), which expands segment disclosure requirements for public entities. ASU No. 2023-07 will require entities to disclose significant segment expenses by reportable segment if they are regularly provided to the CODM and included in each reported measure of segment profit or loss. In addition, this ASU permits entities to disclose more than one measure of segment profit or loss used by the CODM. Additionally, disclosure of the CODM’s title and position will be required on an annual basis, as well as an explanation of how the CODM uses the reported measure(s). Furthermore, all existing annual disclosures about segment profit or loss and assets must be provided on an interim basis in addition to disclosure of significant segment expenses and other segment items. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU No. 2023-09"), which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU No. 2023-09 require entities to disclose additional income tax information, primarily related to greater disaggregation of the entity's ETR reconciliation and income taxes paid by jurisdiction disclosures. This ASU is effective for annual periods beginning after December 15, 2024, and should be applied on a prospective basis; however, retrospective application is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

Reclassification of Previously Reported Revenue by LOB

In the second quarter of 2023, the Company expanded its disaggregation of revenue disclosures for MA's Decision Solutions LOB to enhance insight and transparency into this business. In conjunction with this new presentation, the Company reclassified certain revenue relating to structured finance solutions from the Decision Solutions LOB to the Research & Insights LOB. Additionally, in the first quarter of 2024, pursuant to the integration of RMS into the Company's order-to-cash systems, the Company reclassified certain prior year revenue by geography disclosures. The impact of the aforementioned reclassifications was not material and prior year revenue disclosures have been reclassified to conform to this new presentation, which is disclosed in Note 2.

12

NOTE 2. REVENUES

Revenue by Category

The following table presents the Company’s revenues disaggregated by LOB:

	Three Months Ended March 31,
	2024		2023
MA:
Decision Solutions (DS)
Banking	$	134	$	131
Insurance	144		133
KYC	87		70
Total DS	365		334
Research and Insights (R&I)	222		215
Data and Information (D&I)	212		188
Total external revenue	799		737
Intersegment revenue	3		3
Total MA	802		740
MIS:
Corporate Finance (CFG)
Investment-grade	147		115
High-yield	67		32
Bank loans	155		59
Other accounts (1)	160		150
Total CFG	529		356
Structured Finance (SFG)
Asset-backed securities	33		27
RMBS	24		25
CMBS	17		14
Structured credit	39		32
Other accounts	1		1
Total SFG	114		99
Financial Institutions (FIG)
Banking	121		100
Insurance	59		33
Managed investments	12		6
Other accounts	3		3
Total FIG	195		142
Public, Project and Infrastructure Finance (PPIF)
Public finance / sovereign	59		52
Project and infrastructure	82		77
Total PPIF	141		129
Total ratings revenue	979		726
MIS Other	8		7
Total external revenue	987		733
Intersegment revenue	47		45
Total MIS	1,034		778
Eliminations	(50)		(48)
Total MCO	$	1,786	$	1,470

(1) Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue.

13

The following table presents the Company’s revenues disaggregated by LOB and geographic area:

	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
	U.S.		Non-U.S		Total		U.S.		Non-U.S		Total
MA:
Decision Solutions	$	138	$	227	$	365	$	132	$	202	$	334
Research and Insights	122		100		222		118		97		215
Data and Information	77		135		212		67		121		188
Total MA	337		462		799		317		420		737
MIS:
Corporate Finance	372		157		529		246		110		356
Structured Finance	76		38		114		61		38		99
Financial Institutions	98		97		195		63		79		142
Public, Project and Infrastructure Finance	86		55		141		76		53		129
Total ratings revenue	632		347		979		446		280		726
MIS Other	—		8		8		—		7		7
Total MIS	632		355		987		446		287		733
Total MCO	$	969	$	817	$	1,786	$	763	$	707	$	1,470

The following table presents the Company’s reportable segment revenues disaggregated by segment and geographic region:

	Three Months Ended March 31,
	2024		2023
MA:
U.S.	$	337	$	317
Non-U.S.:
EMEA	316		287
Asia-Pacific	85		78
Americas	61		55
Total Non-U.S.	462		420
Total MA	799		737
MIS:
U.S.	632		446
Non-U.S.:
EMEA	226		173
Asia-Pacific	70		71
Americas	59		43
Total Non-U.S.	355		287
Total MIS	987		733
Total MCO	$	1,786	$	1,470

    

14

The following table summarizes the split between Transaction Revenue and Recurring Revenue.

	Three Months Ended March 31,
	2024									2023
	Transaction			Recurring			Total			Transaction			Recurring			Total
Decision Solutions	$	37		$	328		$	365		$	40		$	294		$	334
	10		%	90		%	100		%	12		%	88		%	100		%
Research and Insights	$	4		$	218		$	222		$	5		$	210		$	215
	2		%	98		%	100		%	2		%	98		%	100		%
Data and Information	$	1		$	211		$	212		$	—		$	188		$	188
	—		%	100		%	100		%	—		%	100		%	100		%
Total MA (1)	$	42		$	757		$	799		$	45		$	692		$	737
	5		%	95		%	100		%	6		%	94		%	100		%
Corporate Finance	$	399		$	130		$	529		$	230		$	126		$	356
	75		%	25		%	100		%	65		%	35		%	100		%
Structured Finance	$	59		$	55		$	114		$	45		$	54		$	99
	52		%	48		%	100		%	45		%	55		%	100		%
Financial Institutions	$	122		$	73		$	195		$	70		$	72		$	142
	63		%	37		%	100		%	49		%	51		%	100		%
Public, Project and Infrastructure Finance	$	96		$	45		$	141		$	86		$	43		$	129
	68		%	32		%	100		%	67		%	33		%	100		%
MIS Other	$	1		$	7		$	8		$	—		$	7		$	7
	12		%	88		%	100		%	—		%	100		%	100		%
Total MIS	$	677		$	310		$	987		$	431		$	302		$	733
	69		%	31		%	100		%	59		%	41		%	100		%
Total Moody's Corporation	$	719		$	1,067		$	1,786		$	476		$	994		$	1,470
	40		%	60		%	100		%	32		%	68		%	100		%