10-Q

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 June 30, 2018

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, N.Y.	10007
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code:

(212) 553-0300

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post 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	☐  (Do not check if a smaller reporting company)	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:

Title of Each Class	Shares Outstanding at June 30, 2018
Common Stock, par value $0.01 per share	191.9 million

MOODY’S CORPORATION

INDEX TO FORM 10-Q

		Page(s)
	Glossary of Terms and Abbreviations		3-9
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June  30, 2018 and 2017		10
	Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Six Months Ended June  30, 2018 and 2017		11
	Consolidated Balance Sheets (Unaudited) at June 30, 2018 and December 31, 2017		12
	Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2018 and 2017		13
	Notes to Condensed Consolidated Financial Statements (Unaudited)		14-58
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
	The Company		59
	Critical Accounting Estimates		59
	Reportable Segments		60
	Results of Operations		61-74
	Liquidity and Capital Resources		74-80
	Recently Issued Accounting Standards		80
	Contingencies		80
	Regulation		80-81
	Forward-Looking Statements		81-82
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		82-83
Item 4.	Controls and Procedures		83
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		84
Item 1A.	Risk Factors		84
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		84
Item 5.	Other Information		84
Item 6.	Exhibits		85
SIGNATURES
Exhibits Filed Herewith
12	Statement of Computations of Ratio of Earnings to Fixed Charges
31.1	Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Chief Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.DEF	XBRL Definitions Linkbase Document
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

GLOSSARY OF TERMS AND ABBREVIATIONS

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

TERM	DEFINITION
Acquisition-Related Amortization	Amortization of definite-lived intangible assets acquired by the Company from all business combination transactions
Acquisition-Related Expenses	Consists of expenses incurred to complete and integrate the acquisition of Bureau van Dijk for which the integration will be a multi-year effort
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 depreciation and amortization
Adjusted Operating Margin	Adjusted Operating Income divided by revenue
Americas	Represents countries within North and South America, excluding the U.S.
AOCI	Accumulated other comprehensive income (loss); a separate component of shareholders’ equity (deficit)
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
ASC 605	The U.S. GAAP authoritative guidance for revenue accounting prior to the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (ASC Topic 606).
Asia-Pacific	Represents Australia and countries in Asia including but not limited to: China, India, Indonesia, Japan, Korea, Malaysia, Singapore, Sri Lanka and Thailand
ASU	The FASB Accounting Standards Update to the ASC. It also 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
Board	The board of directors of the Company
BPS	Basis points
Bureau van Dijk	Bureau van Dijk Electronic Publishing, B.V., a global provider of business intelligence and company information; acquired by the Company on August 10, 2017 via the acquisition of Yellow Maple I B.V., an indirect parent of Bureau van Dijk.

3

TERM	DEFINITION
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; the Company acquired a 49% interest in 2006; currently Moody’s owns 30% of CCXI.
CCXI Gain	In the first quarter of 2017 CCXI, as part of a strategic business realignment, issued additional capital to its majority shareholder in exchange for a ratings business wholly-owned by the majority shareholder and which has the right to rate a different class of debt instrument in the Chinese market. The capital issuance by CCXI in exchange for this ratings business diluted Moody’s ownership interest in CCXI to 30% of a larger business and resulted in a $59.7 million non-cash, non-taxable gain.
CFG	Corporate finance group; an LOB of MIS
CLO	Collateralized loan obligation
CMBS	Commercial mortgage-backed securities; part of the CREF asset class within SFG
Commission	European Commission
Common Stock	The Company’s common stock
Company	Moody’s Corporation and its subsidiaries; MCO; Moody’s
Council	Council of the European Union
CP	Commercial Paper
CP Notes	Unsecured commercial paper issued under the CP Program
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 2015 facility.
CRAs	Credit rating agencies
CRA3	Regulation (EU) No 462/2013 of the European Parliament and of the Council, which updated the regulatory regimes imposing additional procedural requirements on CRAs
CREF	Commercial real estate finance which includes REITs, commercial real estate CDOs and mortgage-backed securities; part of SFG
D&A	Depreciation and amortization
DBPPs	Defined benefit pension plans
Debt/EBITDA	Ratio of Total Debt to EBITDA

4

TERM	DEFINITION
EBITDA	Earnings before interest, taxes, depreciation and amortization
EMEA	Represents countries within Europe, the Middle East and Africa
EPS	Earnings per share
ERS	The Enterprise Risk Solutions LOB within MA, which offers risk management software solutions as well as related risk management advisory engagements services
ESA	Economics and Structured Analytics; part of the RD&A line of business within MA
ESMA	European Securities and Markets Authority
ETR	Effective tax rate
EU	European Union
EUR	Euros
EURIBOR	The Euro Interbank Offered Rate
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
FASB	Financial Accounting Standards Board
FIG	Financial institutions group; an LOB of MIS
Financial Reform Act	Dodd-Frank Wall Street Reform and Consumer Protection Act
Free Cash Flow	Net cash provided by operating activities less cash paid for capital additions
FSTC	Financial Services Training and Certifications; part of the PS LOB and a reporting unit within the MA reportable segment; consists of on-line and classroom-based training services and CSI Global Education, Inc.
FX	Foreign exchange
GAAP	U.S. Generally Accepted Accounting Principles
GBP	British pounds
ICRA	ICRA Limited; a leading provider of credit ratings and research in India. The Company previously held 28.5% equity ownership and in June 2014, increased that ownership stake to just over 50% through the acquisition of additional shares
IRS	Internal Revenue Service

5

TERM	DEFINITION
IT	Information technology
KIS	Korea Investors Service, Inc; a leading Korean rating agency and consolidated subsidiary of the Company
KIS Pricing	Korea Investors Service Pricing, Inc; a leading Korean provider of fixed income securities pricing and consolidated subsidiary of the Company
KIS Research	Korea Investors Service Research; a Korean provider of financial research and consolidated subsidiary of the Company
Korea	Republic of South Korea
LIBOR	London Interbank Offered Rate
LOB	Line of business
M&A	Mergers and acquisitions
MA	Moody’s Analytics a reportable segment of MCO which provides a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets; consists of three LOBs – RD&A, ERS and PS
Make Whole Amount	The prepayment penalty amount relating to the Series 2007-1 Notes, 2010 Senior Notes, 2012 Senior Notes, 2013 Senior Notes, 2014 Senior Notes (5-year), 2014 Senior Notes (30-year), 2015 Senior Notes, 2017 Senior Notes and 2018 Senior Notes which is a premium based on the excess, if any, of the discounted value of the remaining scheduled payments over the prepaid principal
MAKS	Moody’s Analytics Knowledge Services; formerly known as Copal Amba; provides offshore research and analytic services to the global financial and corporate sectors; part of the PS LOB and 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
MIS	Moody’s Investors Service – a reportable segment of MCO; consists of five LOBs – SFG, CFG, FIG, PPIF and MIS Other
MIS Other	Consists of non-ratings revenue from ICRA, KIS Pricing and KIS Research. These businesses are components of MIS; MIS Other is an LOB of MIS
Moody’s	Moody’s Corporation and its subsidiaries; MCO; the Company
Net Income	Net income attributable to Moody’s Corporation, which excludes net income from consolidated noncontrolling interests belonging to the minority interest holder
New Revenue Accounting Standard	Updates to the ASC pursuant to ASU No. 2014-09, “Revenue from Contracts with Customers (ASC Topic 606)”. This new accounting guidance significantly changes the accounting framework under U.S. GAAP relating to revenue recognition and to the accounting for the deferral of incremental costs of obtaining or fulfilling a contract with a customer

6

TERM	DEFINITION
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
OCI	Other comprehensive income (loss); includes gains and losses on cash flow and net investment hedges, unrealized gains and losses on available for sale securities (in periods prior to January 1, 2018), certain gains and losses relating to pension and other retirement benefit obligations and foreign currency translation adjustments
Other Retirement Plan	The U.S. retirement healthcare and U.S. retirement life insurance plans
PCS	Post-Contract Customer Support
PPIF	Public, project and infrastructure finance; an LOB of MIS
Profit Participation Plan	Defined contribution profit participation plan that covers substantially all U.S. employees of the Company
PS	Professional Services, an LOB within MA consisting of MAKS and FSTC that provides research and analytical services as well as financial training and certification programs
Purchase Price Hedge	Foreign currency collar and forward contracts entered into by the Company to economically hedge the Bureau van Dijk euro denominated purchase price
Purchase Price Hedge Gain	Gain on foreign currency collars to economically hedge the Bureau van Dijk euro denominated purchase price
RD&A	Research, Data and Analytics; an LOB within MA that distributes research and data developed by MIS as part of the ratings process, including in-depth research on major debt issuers, industry studies and commentary on topical credit-related events. Also, produces economic research and data and analytical tools such as quantitative credit risk scores as well as business intelligence and company information products.
Reform Act	Credit Rating Agency Reform Act of 2006
REIT	Real Estate Investment Trust
Relationship 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. For MA, represents subscription-based revenue and software maintenance revenue
Retirement Plans	Moody’s funded and unfunded pension plans, the healthcare plans and life insurance plans
SCDM	SCDM Financial, a leading provider of analytical tools for participants in securitization markets. Moody’s acquired SCDM’s structured finance data and analytics business in February 2017
SEC	U.S. Securities and Exchange Commission
Securities Act	Securities Act of 1933, as amended

7

TERM	DEFINITION
Series 2007-1 Notes	Principal amount of $300 million, 6.06% senior unsecured notes due in September 2017 pursuant to the 2007 Agreement; prepaid in March 2017
Settlement Charge	Charge of $863.8 million recorded in the fourth quarter of 2016 related to an agreement entered into on January 13, 2017 with the U.S. Department of Justice and the attorneys general of 21 U.S. states and the District of Columbia to resolve pending and potential civil claims related to credit ratings that MIS assigned to certain structured finance instruments in the financial crisis era
SFG	Structured finance group; an LOB of MIS
SG&A	Selling, general and administrative expenses
SSP	Standalone selling price
T&M	Time-and-Material
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 MIS, represents the initial rating of a new debt issuance as well as other one-time fees. For MIS Other, represents revenue from professional services as well as data services, research and analytical engagements. For MA, represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, training and certification services, and research and analytical engagements
U.K.	United Kingdom
U.S.	United States
USD	U.S. dollar
UTPs	Uncertain tax positions
VSOE	Vendor specific objective evidence; as defined in the ASC, evidence of selling price limited to either of the following: the price charged for a deliverable when it is sold separately, or for a deliverable not yet being sold separately, the price established by management having the relevant authority
2007 Agreement	Note purchase agreement dated September 7, 2007, relating to the Series 2007-1 Notes
2010 Indenture	Supplemental indenture and related agreements dated August 19, 2010, relating to the 2010 Senior Notes
2010 Senior Notes	Principal amount of $500 million, 5.50% senior unsecured notes due in September 2020 pursuant to the 2010 Indenture
2012 Indenture	Supplemental indenture and related agreements dated August 18, 2012, relating to the 2012 Senior Notes
2012 Senior Notes	Principal amount of $500 million, 4.50% senior unsecured notes due in September 2022 pursuant to the 2012 Indenture
2013 Indenture	Supplemental indenture and related agreements dated August 12, 2013, relating to the 2013 Senior Notes

8

TERM	DEFINITION
2013 Senior Notes	Principal amount of $500 million, 4.875% senior unsecured notes due in February 2024 pursuant to the 2013 Indenture
2014 Indenture	Supplemental indenture and related agreements dated July 16, 2014, relating to the 2014 Senior Notes
2014 Senior Notes (5-Year)	Principal amount of $450 million, 2.75% senior unsecured notes due in July 2019
2014 Senior Notes (30-Year)	Principal amount of $600 million, 5.25% senior unsecured notes due in July 2044
2015 Facility	Five-year unsecured revolving credit facility, with capacity to borrow up to $1 billion; backstops CP issued under the CP Program
2015 Indenture	Supplemental indenture and related agreements dated March 9, 2015, relating to the 2015 Senior Notes
2015 Senior Notes	Principal amount of €500 million, 1.75% senior unsecured notes issued March 9, 2015 and due in March 2027
2017 Floating Rate Senior Notes	Principal amount of $300 million, floating rate senior unsecured notes due in September 2018
2017 Indenture	Collectively the Supplemental indenture and related agreements dated March 2, 2017, relating to the 2017 Floating Rate Senior Notes and 2017 Notes Due 2023 and 2028, and the supplemental indenture and related agreements dated June 12, 2017, relating to the 2017 Notes Due 2023 and 2028
2017 Senior Notes Due 2023	Principal amount of $500 million, 2.625% senior unsecured notes due January 15, 2023
2017 Senior Notes Due 2028	Principal amount of $500 million, 3.250% senior unsecured notes due January 15, 2028
2017 Senior Notes Due 2021	Principal amount of $500 million, 2.75% senior unsecured notes due in December 2021
2017 Term Loan	$500 million, three-year term loan facility entered into on June 6, 2017 for which the Company drew down $500 million on August 8, 2017 to fund the acquisition of Bureau van Dijk
2018 Senior Notes	Principal amount of $300 million, 3.250% senior unsecured notes due June 7, 2021

9

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 June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenue	$	1,175.1		$	1,000.5		$	2,301.8		$	1,975.7
Expenses
Operating		320.2			284.8			635.1			560.1
Selling, general and administrative		270.5			216.1			541.6			436.8
Depreciation and amortization		48.4			32.9			97.5			65.4
Acquisition-Related Expenses		2.0			6.6			2.8			6.6
Total expenses		641.1			540.4			1,277.0			1,068.9
Operating income		534.0			460.1			1,024.8			906.8
Non-operating (expense) income, net
Interest expense, net		(53.4	)		(49.7	)		(104.1	)		(97.1	)
Other non-operating income, net		14.9			10.4			15.9			2.7
Purchase Price Hedge Gain		—			41.2			—			41.2
CCXI Gain		—			—			—			59.7
Total non-operating (expense) income, net		(38.5	)		1.9			(88.2	)		6.5
Income before provisions for income taxes		495.5			462.0			936.6			913.3
Provision for income taxes		117.6			148.4			181.9			253.8
Net income		377.9			313.6			754.7			659.5
Less: Net income attributable to noncontrolling interests		1.7			1.4			5.6			1.7
Net income attributable to Moody’s	$	376.2		$	312.2		$	749.1		$	657.8
Earnings per share attributable to Moody’s common shareholders
Basic	$	1.96		$	1.63		$	3.91		$	3.44
Diluted	$	1.94		$	1.61		$	3.85		$	3.39
Weighted average number of shares outstanding
Basic		191.9			191.0			191.6			191.1
Diluted		194.4			193.8			194.5			194.1
Dividends declared per share attributable to Moody’s common shareholders	$	0.44		$	0.38		$	0.88		$	0.38

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

10

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Amounts in millions)

	Three Months Ended June 30, 2018									Three Months Ended June 30, 2017
	Pre-tax amounts			Tax amounts			After-tax amounts			Pre-tax amounts			Tax amounts			After-tax amounts
Net Income							$	377.9								$	313.6
Other Comprehensive Income (loss):
Foreign Currency Adjustments:
Foreign currency translation adjustments, net	$	(250.3	)	$	(9.2	)		(259.5	)	$	35.1		$	15.4			50.5
Cash Flow Hedges:
Net realized and unrealized gain (loss) on cash flow hedges		—			—			—			5.1			(1.9	)		3.2
Reclassification of gains included in net income		(0.1	)		—			(0.1	)		(6.1	)		2.8			(3.3	)
Available for Sale Securities:
Net unrealized gains on available for sale securities		—			—			—			0.6			—			0.6
Pension and Other Retirement Benefits:
Amortization of actuarial losses and prior service costs included in net income		1.0			(0.3	)		0.7			1.9			(0.8	)		1.1
Net actuarial gains and prior service costs		1.6			(0.4	)		1.2			7.9			(3.0	)		4.9
Total Other Comprehensive (loss) income	$	(247.8	)	$	(9.9	)		(257.7	)	$	44.5		$	12.5			57.0
Comprehensive income								120.2									370.6
Less: comprehensive (loss) income attributable to noncontrolling interests								(3.2	)								10.8
Comprehensive Income Attributable to Moody’s							$	123.4								$	359.8
	Six Months Ended June 30, 2018									Six Months Ended June 30, 2017
	Pre-tax amounts			Tax amounts			After-tax amounts			Pre-tax amounts			Tax amounts			After-tax amounts
Net Income							$	754.7								$	659.5
Other Comprehensive Income (loss):
Foreign Currency Adjustments:
Foreign currency translation adjustments, net	$	(128.7	)	$	(5.6	)		(134.3	)	$	49.5		$	13.1			62.6
Cash Flow Hedges:
Net realized and unrealized gain (loss) on cash flow hedges		1.9			(0.4	)		1.5			4.8			(1.8	)		3.0
Reclassification of gains included in net income		(0.2	)		—			(0.2	)		(7.5	)		3.3			(4.2	)
Available for Sale Securities:
Net unrealized gains on available for sale securities		—			—			—			1.1			—			1.1
Pension and Other Retirement Benefits:
Amortization of actuarial losses and prior service costs included in net income		2.4			(0.7	)		1.7			4.3			(1.7	)		2.6
Net actuarial gains and prior service costs		1.6			(0.4	)		1.2			7.9			(3.0	)		4.9
Total other comprehensive (loss) income	$	(123.0	)	$	(7.1	)		(130.1	)	$	60.1		$	9.9			70.0
Comprehensive income								624.6									729.5
Less: comprehensive income attributable to noncontrolling interests								5.7									16.5
Comprehensive Income Attributable to Moody’s							$	618.9								$	713.0

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

11

MOODY’S CORPORATION

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

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

	June 30, 2018			December 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	1,314.5		$	1,071.5
Short-term investments		101.2			111.8
Accounts receivable, net of allowances of $36.3 in 2018 and $36.6 in 2017		1,137.1			1,147.2
Other current assets		286.9			250.1
Total current assets		2,839.7			2,580.6
Property and equipment, net of accumulated depreciation of $748.2 in 2018 and $706.0 in 2017		312.2			325.1
Goodwill		3,662.7			3,753.2
Intangible assets, net		1,541.4			1,631.6
Deferred tax assets, net		136.6			143.8
Other assets		259.0			159.9
Total assets	$	8,751.6		$	8,594.2
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued liabilities	$	593.6		$	750.3
Commercial paper		89.9			129.9
Current portion of long-term debt		299.9			299.5
Deferred revenue		860.5			883.6
Total current liabilities		1,843.9			2,063.3
Non-current portion of deferred revenue		126.0			140.0
Long-term debt		4,934.2			5,111.1
Deferred tax liabilities, net		363.2			341.6
Unrecognized tax benefits		398.3			389.1
Other liabilities		625.9			664.0
Total liabilities		8,291.5			8,709.1
Contingencies (Note 16)		—			—
Shareholders’ equity (deficit):
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding		—			—
Series common stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding		—			—
Common stock, par value $.01 per share; 1,000,000,000 shares authorized; 342,902,272 shares issued at June 30, 2018 and December 31, 2017, respectively.		3.4			3.4
Capital surplus		538.6			528.6
Retained earnings		8,204.6			7,465.4
Treasury stock, at cost; 151,012,009 and 151,932,157 shares of common stock at June 30, 2018 and December 31, 2017, respectively		(8,198.9	)		(8,152.9	)
Accumulated other comprehensive loss		(304.8	)		(172.2	)
Total Moody’s shareholders’ equity (deficit)		242.9			(327.7	)
Noncontrolling interests		217.2			212.8
Total shareholders’ equity (deficit)		460.1			(114.9	)
Total liabilities, noncontrolling interests and shareholders’ equity (deficit)	$	8,751.6		$	8,594.2

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

12

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in millions)

	Six Months Ended June 30
	2018			2017
Cash flows from operating activities
Net income	$	754.7		$	659.5
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization		97.5			65.4
Stock-based compensation		69.5			57.1
CCXI Gain		—			(59.7	)
Purchase Price Hedge Gain		—			(41.2	)
Deferred income taxes		(12.1	)		193.5
Changes in assets and liabilities:
Accounts receivable		17.8			(16.5	)
Other current assets		(10.2	)		(91.0	)
Other assets		(14.3	)		8.9
Accounts payable and accrued liabilities		(163.2	)		(877.4	)
Deferred revenue		55.3			43.9
Unrecognized tax benefits and other non-current tax liabilities		(33.6	)		8.4
Other liabilities		15.9			8.5
Net cash provided by (used in) operating activities		777.3			(40.6	)
Cash flows from investing activities
Capital additions		(37.9	)		(42.8	)
Purchases of investments		(92.2	)		(75.3	)
Sales and maturities of investments		79.1			161.6
Cash paid for acquisitions, net of cash acquired		—			(5.0	)
Receipts from settlements of net investment hedges		—			1.4
Cash received upon disposal of a subsidiary, net of cash transferred to purchaser		5.7			—
Net cash (used in) provided by investing activities		(45.3	)		39.9
Cash flows from financing activities
Issuance of notes		299.6			1,791.9
Repayment of notes		(450.0	)		(300.0	)
Issuance of commercial paper		359.4			703.7
Repayment of commercial paper		(399.4	)		(703.7	)
Proceeds from stock-based compensation plans		36.9			39.1
Repurchase of shares related to stock-based compensation		(61.5	)		(47.9	)
Treasury shares		(81.0	)		(134.5	)
Dividends		(168.6	)		(145.2	)
Dividends to noncontrolling interests		(1.3	)		(0.8	)
Payment for noncontrolling interest		—			(6.2	)
Debt issuance costs, extinguishment costs and related fees		(1.7	)		(25.9	)
Net cash (used in) provided by financing activities		(467.6	)		1,170.5
Effect of exchange rate changes on cash and cash equivalents		(21.4	)		59.6
Increase in cash and cash equivalents		243.0			1,229.4
Cash and cash equivalents, beginning of period		1,071.5			2,051.5
Cash and cash equivalents, end of period	$	1,314.5		$	3,280.9

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

13

MOODY’S CORPORATION

NOTES TO CONDENSED 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 provider of (i) credit ratings; (ii) credit, capital markets and economic research, data and analytical tools; (iii) software solutions that support financial risk management activities; (iv) quantitatively derived credit scores; (v) financial services training and certification services; (vi) offshore financial research and analytical services; and (vii) company information and business intelligence products. Moody’s reports in two reportable segments: MIS and MA.

MIS, the credit rating agency, publishes credit ratings on a wide range of debt obligations and the entities that issue such obligations in markets worldwide. Revenue is primarily derived from the originators and issuers of such transactions who use MIS ratings in the distribution of their debt issues to investors. Additionally, MIS earns revenue from certain non-ratings-related operations which consist primarily of financial instrument pricing services in the Asia-Pacific region as well as revenue from ICRA’s non-ratings operations. The revenue from these operations is included in the MIS Other LOB and is not material to the results of the MIS segment.

The MA segment develops a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets. Within its RD&A business, MA distributes research and data developed by MIS as part of its ratings process, including in-depth research on major debt issuers, industry studies and commentary on topical credit-related events. The RD&A business also produces economic research and data and analytical tools such as quantitative credit risk scores as well as business intelligence and company information products. Within its ERS business, MA provides software solutions as well as related risk management services. The PS business provides offshore analytical and research services along with financial training and certification programs.

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 2017 annual report on Form 10-K filed with the SEC on February 27, 2018. 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 accounting principles generally accepted in the United States of America.

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

Adoption of New Accounting Standards

On January 1, 2018, the Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers (ASC Topic 606)” using the modified retrospective approach which Moody’s has elected to apply only to those contracts which were not completed as of January 1, 2018. Additionally, the Company has not retrospectively restated contract positions for contract modifications made prior to the adoption. ASU No. 2014-09 also includes updates related to the accounting for the deferral of incremental costs of obtaining or fulfilling a contract with a customer (“ASC Subtopic 340-40”). Hereunder, discussion of the provisions of ASC Topic 606 and ASC Subtopic 340-40 are both individually and collectively referred to as the “New Revenue Accounting Standard.” Results for reporting periods beginning on January 1, 2018 are presented under the guidance set forth in the New Revenue Accounting Standard, while prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance.

14

The most significant impacts to the Company’s financial statements from adopting the New Revenue Accounting Standard are primarily related to: i) the accounting for certain installed software subscription revenue in MA whereby the license rights within the arrangement are recognized at the inception of the contract based on SSP with the remainder recognized over the subscription period (compared to ASC Topic 605 whereby all installed software subscription revenue was previously recognized over the subscription period); ii) the accounting for certain ERS and ESA revenue arrangements where VSOE was not available under ASC Topic 605 now results in the acceleration of revenue recognition (compared to ASC Topic 605 whereby revenue was deferred due to lack of VSOE until all elements without VSOE had been delivered); iii) sales commissions incurred in the MA segment will be capitalized and amortized over an extended period which is generally based upon the average economic life of products/services sold and incorporates anticipated subscription renewals (compared to previous accounting guidance whereby capitalized sales commissions were amortized over the committed subscription period only); iv) the immediate expensing of software implementation project costs to fulfill a contract for its ERS and ESA businesses which under previous accounting guidance were capitalized and expensed when related project revenue was recognized; v) the capitalization of work-in-process costs for in-progress MIS ratings at the end of each reporting period which under ASC Topic 605 were expensed as incurred; vi) the timing of when revenue for certain MIS ratings products is recognized; and vii) the estimation of variable consideration at contract inception whereas under ASC Topic 605 companies were not required to consider the amount of consideration for which it expected to be entitled.

The Company does not anticipate that applying the provisions of the New Revenue Accounting Standard will have a material impact to its 2018 consolidated Net Income. However, there could be quarterly fluctuations in the financial results of both MIS and MA, or there could be increases or decreases in revenues and expenses which would largely offset and not be material to total consolidated Net Income for the full year.

The table below provides detail relating to the adjustment to the Company’s retained earnings balance upon adoption of the New Revenue Accounting Standard:

Transition adjustment	Benefit to / (reduction of) January 1, 2018 Retained Earnings	Corresponding Balance Sheet Line Item
Recognition of MA deferred revenue / increase in MA unbilled receivables (1)	$108 million	Deferred revenue, Non-current portion of deferred revenue, Accounts receivable, Other assets
Increase to capitalized MA sales commissions (2)	$78 million	Other current assets, Other assets, Accounts payable and accrued liabilities
Capitalization of work-in-process for in-progress ratings	$9 million	Other current assets
Net impact of all other adjustments	$4 million	Various
Net increase in tax liability on the above	($43 million)	Deferred tax liabilities, net
Total post-tax adjustment	$156 million

⁽¹⁾  Represents deferred revenue as of December 31, 2017 as well as amounts then unbilled that would have been recognized as revenue in 2017 or earlier if the New Revenue Accounting Standard was then in effect. These amounts will not be recognized as revenue in future statements of operations. Conversely, revenue will be recorded to the Company’s statement of operations in 2018 under the New Revenue Accounting Standard, which otherwise would have been recognized in periods subsequent to 2018 if accounted for under ASC Topic 605.

⁽²⁾  Represents sales commissions that would have been capitalized as of December 31, 2017 if the New Revenue Accounting Standard was then in effect, but had previously been expensed by the Company under the previous accounting guidance. These sales commissions, as well as sales commissions incurred in 2018 related to new sales and renewals, will be amortized to expense in the statements of operations beginning in 2018 over an extended period generally based upon the average economic life of the products sold or over the period in which implementation and advisory services will be provided.

15

The table below presents the cumulative effect of the changes made to the Company’s consolidated balance sheet at January 1, 2018 for the adoption of the New Revenue Accounting Standard:

	As Reported December 31,  2017			Adjustment Due to New Revenue Accounting Standard			Balance at January 1, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	1,071.5		$	—		$	1,071.5
Short-term investments		111.8			—			111.8
Accounts receivable, net of allowances		1,147.2			16.8			1,164.0
Other current assets		250.1			32.9			283.0
Total current assets		2,580.6			49.7			2,630.3
Property and equipment, net		325.1			—			325.1
Goodwill		3,753.2			—			3,753.2
Intangible assets, net		1,631.6			—			1,631.6
Deferred tax assets, net		143.8			—			143.8
Other assets		159.9			71.3			231.2
Total assets	$	8,594.2		$	121.0		$	8,715.2
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS’ (DEFICIT)/EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	750.3		$	(0.8	)	$	749.5
Commercial paper		129.9			—			129.9
Current portion of long-term debt		299.5			—			299.5
Deferred revenue		883.6			(69.3	)		814.3
Total current liabilities		2,063.3			(70.1	)		1,993.2
Non-current portion of deferred revenue		140.0			(8.0	)		132.0
Long-term debt		5,111.1			—			5,111.1
Deferred tax liabilities, net		341.6			42.7			384.3
Unrecognized tax benefits		389.1			—			389.1
Other liabilities		664.0			0.3			664.3
Total liabilities		8,709.1			(35.1	)		8,674.0
Shareholders’ (deficit) equity:
Common stock		3.4			—			3.4
Capital surplus		528.6			—			528.6
Retained earnings		7,465.4			156.1			7,621.5
Treasury stock		(8,152.9	)		—			(8,152.9	)
Accumulated other comprehensive loss		(172.2	)		—			(172.2	)
Total Moody’s shareholders’ (deficit) equity		(327.7	)		156.1			(171.6	)
Noncontrolling interests		212.8			—			212.8
Total shareholders’ (deficit) equity		(114.9	)		156.1			41.2
Total liabilities, noncontrolling interests and shareholders’ (deficit) equity	$	8,594.2		$	121.0		$	8,715.2

16

The below table presents the impacts on the Company’s statement of operations for the current reporting period from applying the provisions of the New Revenue Accounting Standard compared to the accounting standard in effect before the change:

	For the Three Months Ended June 30, 2018
	As Reported			Under previous accounting guidance			Effect  of Change Higher/(Lower)
Revenue	$	1,175.1		$	1,169.9		$	5.2
Expenses
Operating		320.2			320.7			(0.5	)
Selling, general and administrative		270.5			272.5			(2.0	)
Depreciation and amortization		48.4			48.4			—
Acquisition-related expenses		2.0			2.0			—
Total expenses		641.1			643.6			(2.5	)
Operating income		534.0			526.3			7.7
Non-operating (expense) income, net
Interest expense, net		(53.4	)		(53.4	)		—
Other non-operating income, net		14.9			14.9			—
Total non-operating (expense) income, net		(38.5	)		(38.5	)		—
Income before provision for income taxes		495.5			487.8			7.7
Provision for income taxes		117.6			115.7			1.9
Net income		377.9			372.1			5.8
Less: Net income attributable to noncontrolling interests		1.7			1.7			—
Net income attributable to Moody’s	$	376.2		$	370.4		$	5.8
Earnings per share
Basic	$	1.96		$	1.93		$	0.03
Diluted	$	1.94		$	1.91		$	0.03
Weighted average shares outstanding
Basic		191.9			191.9
Diluted		194.4			194.4

17

	For the Six Months Ended June 30, 2018
	As Reported			Under previous accounting guidance			Effect  of Change Higher/(Lower)
Revenue	$	2,301.8		$	2,296.3		$	5.5
Expenses
Operating		635.1			636.2			(1.1	)
Selling, general and administrative		541.6			544.0			(2.4	)
Depreciation and amortization		97.5			97.5			—
Acquisition-related expenses		2.8			2.8			—
Total expenses		1,277.0			1,280.5			(3.5	)
Operating income		1,024.8			1,015.8			9.0
Non-operating (expense) income, net
Interest expense, net		(104.1	)		(104.1	)		—
Other non-operating income, net		15.9			15.9			—
Total non-operating (expense) income, net		(88.2	)		(88.2	)		—
Income before provision for income taxes		936.6			927.6			9.0
Provision for income taxes		181.9			179.2			2.7
Net income		754.7			748.4			6.3
Less: Net income attributable to noncontrolling interests		5.6			5.6			—
Net income attributable to Moody’s	$	749.1		$	742.8		$	6.3
Earnings per share
Basic	$	3.91		$	3.88		$	0.03
Diluted	$	3.85		$	3.82		$	0.03
Weighted average shares outstanding
Basic		191.6			191.6
Diluted		194.5			194.5

18

The below table presents the impacts on the Company’s consolidated balance sheet at the end of the current reporting period from applying the provisions of the New Revenue Accounting Standard compared to the accounting standard in effect before the change:

	As Reported June 30, 2018			Under previous accounting guidance June 30, 2018			Effect of Change Higher/(Lower)
ASSETS
Current assets:
Cash and cash equivalents	$	1,314.5		$	1,314.5		$	—
Short-term investments		101.2			101.2			—
Accounts receivable, net of allowances		1,137.1			1,122.9			14.2
Other current assets		286.9			264.2			22.7
Total current assets:		2,839.7			2,802.8			36.9
Property and equipment, net		312.2			312.2			—
Goodwill		3,662.7			3,662.7			—
Intangible assets, net		1,541.4			1,541.4			—
Deferred tax assets, net		136.6			136.5			0.1
Other assets		259.0			189.0			70.0
Total assets	$	8,751.6		$	8,644.6		$	107.0
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	593.6		$	593.4		$	0.2
Commercial paper		89.9			89.9			—
Current portion of long-term debt		299.9			299.9			—
Deferred revenue		860.5			930.8			(70.3	)
Total current liabilities		1,843.9			1,914.0			(70.1	)
Non-current portion of deferred revenue		126.0			133.6			(7.6	)
Long-term debt		4,934.2			4,934.2			—
Deferred tax liabilities, net		363.2			335.1			28.1
Unrecognized tax benefits		398.3			398.3			—
Other liabilities		625.9			625.6			0.3
Total liabilities		8,291.5			8,340.8			(49.3	)
Shareholders’ equity:
Common stock		3.4			3.4			—
Capital surplus		538.6			538.6			—
Retained earnings		8,204.6			8,048.3			156.3
Treasury stock		(8,198.9	)		(8,198.9	)		—
Accumulated other comprehensive loss		(304.8	)		(304.8	)		—
Total Moody’s shareholders’ equity		242.9			86.6			156.3
Noncontrolling interests		217.2			217.2			—
Total shareholders’ equity		460.1			303.8			156.3
Total liabilities, noncontrolling interests and shareholders’ equity	$	8,751.6		$	8,644.6		$	107.0

19

The below table presents the impacts on various line items within the operating cash flow within the Company’s statement of cash flows for the current reporting period from applying the provisions of the New Revenue Accounting Standard compared to the accounting standard in effect before the change.

	For the Six Months Ended June 30, 2018
	As Reported			Under previous accounting guidance			Effect of Change
Cash flows from operating activities
Net income	$	754.7		$	748.4		$	6.3
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization		97.5			97.5			—
Stock-based compensation		69.5			69.5			—
Deferred income taxes		(12.1	)		2.0			(14.1	)
Changes in assets and liabilities:
Accounts receivable		17.8			15.2			2.6
Other current assets		(10.2	)		(20.4	)		10.2
Other assets		(14.3	)		(21.0	)		6.7
Accounts payable and accrued liabilities		(163.2	)		(158.1	)		(5.1	)
Deferred revenue		55.3			55.9			(0.6	)
Unrecognized tax benefits and other non-current tax liabilities		(33.6	)		(33.6	)		—
Other liabilities		15.9			21.9			(6.0	)
Net cash provided by operating activities	$	777.3		$	777.3		$	—

The New Revenue Accounting Standard did not have any impact on individual line items within investing or financing cash flows in the Company’s consolidated statement of cash flows. In 2018, the adoption of the New Revenue Accounting Standard will likely result in higher cash taxes as the cumulative catch-up adjustment to retained earnings is taxable and there is expected to be acceleration of revenue recognition under the New Revenue Accounting Standard.

20

On January 1, 2018, the Company adopted ASU No. 2017-07, “Compensation—Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. As required by this ASU, the components of net periodic pension costs were disaggregated in the statement of operations on a retrospective basis. The Company has continued to reflect the service cost component in either Operating or SG&A expenses in Moody’s statement of operations. The other components of net benefit cost are presented within non-operating (expense) income, net, within the statement of operations. The adoption of this ASU has no impact on Net Income in the Company’s statements of operations. The impact to the Company’s statements of operations for the three and six months ended June 30, 2018 and 2017 related to the adoption of this ASU are set forth in the table below:

	For the Three Months Ended June 30, 2018									For the Three Months Ended June 30, 2017
	As Reported			Under previous accounting guidance			Effect  of Change Higher/(Lower)			As Adjusted			Under previous accounting guidance			Effect  of Change Higher/(Lower)
Operating expenses	$	320.2		$	321.0		$	(0.8	)	$	284.8		$	285.8		$	(1.0	)
Selling, general and administrative expenses		270.5			271.7			(1.2	)		216.1			217.7			(1.6	)
Operating income		534.0			532.0			2.0			460.1			457.5			2.6
Interest expense, net		(53.4	)		(48.5	)		(4.9	)		(49.7	)		(45.0	)		(4.7	)
Other non-operating income (expense), net		14.9			12.0			2.9			10.4			8.3			2.1
	For the Six Months Ended June 30, 2018									For the Six Months Ended June 30, 2017
	As Reported			Under previous accounting guidance			Effect of Change Higher/(Lower)			As Adjusted			Under previous accounting guidance			Effect of Change Higher/(Lower)
Operating expenses	$	635.1		$	637.4		$	(2.3	)	$	560.1		$	563.2		$	(3.1	)
Selling, general and administrative expenses		541.6			543.7			(2.1	)		436.8			439.6			(2.8	)
Operating income		1,024.8			1,020.4			4.4			906.8			900.9			5.9
Interest expense, net		(104.1	)		(94.5	)		(9.6	)		(97.1	)		(87.4	)		(9.7	)
Other non-operating income (expense), net		15.9			10.7			5.2			2.7			(1.1	)		3.8

On January 1, 2018, the Company adopted ASU No. 2016-01 “Financial Instruments—Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The amendments in this ASU update various aspects of recognition, measurement, presentation and disclosures relating to financial instruments. Upon adoption, the Company recorded a $2.3 million cumulative adjustment to reclassify net unrealized gains on investments in equity securities previously classified as available-for-sale under the previous guidance from AOCI to retained earnings. Beginning in the first quarter of 2018, the Company will measure equity investments with readily determinable fair values (except those accounted for under the equity method, those that result in consolidation of the investee and certain other investments) at fair value and recognize any changes in fair value in net income. The adoption of this ASU did not have material impact on the Company’s financial statements for the three and six months ended June 30, 2018.

21

In March 2018, the FASB issued ASU No. 2018-05, “Income Taxes (Topic 740)—Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”. This ASU adds SEC paragraphs to the codification pursuant to the SEC Staff Accounting Bulletin No. 118, which addresses the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to finalize the calculations for the 2017 income tax effects of the Tax Act. This ASU provides entities with a one year measurement period from the December 22, 2017 enactment date, in order to complete the accounting for the effects of the Tax Act. The Company has recorded a provisional estimate for the transition tax relating to the Tax Act which is more fully described in Note 5. This provisional estimate may be impacted by a number of additional considerations, including but not limited to the issuance of regulations and the Company’s ongoing analysis of the new law.

On January 1, 2018, the Company adopted ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)” on a retrospective basis. This ASU reduces diversity in practice in how certain transactions are reflected in the statement of cash flows. Pursuant to the adoption of this ASU, the Company reclassified $7.1 million in cash paid in the first half of 2017 relating to a Make-Whole provision upon the repayment of the Series 2007-1 Notes from cash flows used in operations to cash flows provided by financing activities.

During the second quarter of 2018, the Company early adopted ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”. This ASU fosters enhanced transparency relating to risk management activities and simplifies the application of hedge accounting in certain circumstances. The adoption of this ASU did not have an impact on the Company’s financial statements at the date of adoption. Refer to Note 9 for further discussion on the prospective impact of this ASU on the Company’s financial statements.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company adopted the New Revenue Accounting Standard on January 1, 2018 using the modified retrospective transition method. Below are the Company’s revised accounting policies reflecting the provisions of the New Revenue Accounting Standard; ASU 2016-01 (as codified under ASC Topic 321) relating to the accounting for financial instruments; and the amendments to ASC Topic 815 as a result of the Company’s second quarter adoption of ASU 2017-12 relating to derivative instruments and hedging activities. The Company’s adoption of these ASUs is further discussed in Note 1. All other significant accounting policies described in the Form 10-K for the year ended December 31, 2017 remain unchanged. Also, refer to Note 3 of the condensed consolidated financial statements for certain quantitative disclosures relating to the Company’s revenue from contracts with customers.

Revenue Recognition and Costs to Obtain or Fulfill a Contract with a Customer

Revenue recognition:

Revenue is recognized when control of promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

When contracts with customers contain multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to each distinct performance obligation on a relative SSP basis. The Company determines the SSP by using the price charged for a deliverable when sold separately or uses management’s best estimate of SSP for goods or services not sold separately based on the maximum number of observable data points, including: internal factors relevant to its pricing practices such as costs and margin objectives; standalone sales prices of similar products; percentage of the fee charged for a primary product or service relative to a related product or service; and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trends.

Sales, usage-based, value added and other taxes are excluded from revenues.

22

MIS Revenue

In the MIS segment, revenue arrangements are generally comprised of two distinct performance obligations, an initial rating and the related monitoring service. Revenue attributed to initial ratings of issued securities is generally recognized when the rating is delivered to the issuer. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of certain structured finance products, primarily CMBS, issuers can elect to pay all of the annual monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities.

MIS arrangements generally have standard contractual terms for which the stated payments are due at conclusion of the ratings process for initial ratings and either upfront or in arrears for monitoring services; and are signed by customers either on a per issue basis or at the beginning of the relationship with the customer. However, customer fee arrangements may be adjusted for which the Company accounts for as variable consideration at inception using the expected value method based on analysis of similar contracts in the same line of business, which is constrained based on the Company’s assessment of the realization of the adjustment amount.

The Company allocates the transaction price within arrangements that include both the initial rating and the related monitoring service based upon the relative SSP of each service. The Company generally uses management’s best estimate based on observable pricing points in determining SSP for its initial ratings as the Company rarely provides initial ratings separately without providing related monitoring services. The SSP for monitoring fees in these arrangements are generally based upon directly observable selling prices where the monitoring service is sold separately.

MA Revenue

In the MA segment, products and services offered by the Company include hosted research and data subscriptions, installed software subscriptions, perpetual installed software licenses and related maintenance, or PCS, and professional services. Subscription and PCS contracts are generally invoiced in advance of the contractual coverage period, which is principally one year, but can range from 3-5 years; while perpetual software licenses are generally invoiced upon delivery and professional services are invoiced as those services are provided. Payment terms and conditions vary by contract type, but primarily include a requirement of payment within 30 to 60 days.

Revenue from research, data and other hosted subscriptions is recognized ratably over the related subscription period. A large portion of these services are invoiced in the months of November, December and January.

Revenue from the sale of a software license, when considered distinct from the related software implementation services, is generally recognized at the time the product master or first copy is delivered or transferred to the customer. However, in instances where the software license (perpetual or subscription) and related implementation services are considered to be one combined performance obligation, revenue is recognized on a percentage-of-completion basis (input method) as implementation services are performed over time, which is consistent with the pattern of recognition for the software implementation services if considered to be a separate distinct performance obligation. The Company exercises judgment in determining the level of integration and interdependency between the promise to grant the software license and the promise to deliver the related implementation services. This determination influences whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the implementation services and recognized over time. PCS is generally recognized ratably over the contractual period commencing when the software license is fully delivered. Revenue from installed software subscriptions, which includes PCS, is bifurcated into a software license performance obligation and a PCS performance obligation, which follow the patterns of recognition described above.

For implementation services and other service projects within the ERS and ESA LOBs for which fees are fixed, the Company determined progress towards completion is most accurately measured on a percentage-of-completion basis (input method) as this approach utilizes the most directly observable data points and is therefore used to recognize the related revenue. For implementation services where price varies based on time expended, a time-based measure of progress towards completion of the performance obligation is utilized.

Revenue from professional services rendered within the PS LOB is generally recognized as the services are performed over time.

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Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where an arrangement contains multiple performance obligations, the Company accounts for the individual performance obligations separately if they are considered distinct. Revenue is generally allocated to all performance obligations based upon the relative SSP at contract inception. Judgment is often required to determine the SSP for each distinct performance obligation. Revenue is recognized for each performance obligation based upon the conditions for revenue recognition noted above.

In the MA segment, customers usually pay a fixed fee for the products and services based on signed contracts. However, accounting for variable consideration is applied mainly for: i) estimates for cancellation rights and price concessions and ii) T&M based services.

The Company estimates the variable consideration associated with cancellation rights and price concessions based on the expected amount to be provided to customers and reduces the amount of revenue to be recognized. T&M based contracts represent about half of MA’s service projects within the ERS and ESA LOBs. The Company provides agreed upon services at a contracted daily or hourly rate. The commitment represents a series of goods and services that are substantially the same and have the same pattern of transfer to the customer. As such, if T&M services are sold with other MA products, the Company allocates the variable consideration entirely to the T&M performance obligation if the services are sold at standard pricing or at a similar discount level compared to other performance obligations in the same revenue contract. If these criteria are not met, the Company estimates variable consideration for each performance obligation upfront.

Each form of variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal of any incremental revenue will not occur.

Costs to Obtain or Fulfill a Contract with a Customer:

Costs incurred to obtain customer contracts, such as sales commissions, are deferred and recorded within other current assets and other assets when such costs are determined to be incremental to obtaining a contract, would not have been incurred otherwise and the Company expects to recover those costs. These costs are amortized to expense consistent with the recognition pattern of the related revenue over time. Depending on the line of business to which the contract relates, this may be based upon the average economic life of the products sold or average period for which services are provided, inclusive of anticipated contract renewals. Determining the estimated economic life of the products sold requires judgment with respect to anticipated future technological changes. The Company had a balance of $92.2 million in such deferred costs as of June 30, 2018 and recognized $8.1 million and $16.7 million of related amortization during the three and six-month periods ended June 30, 2018, respectively, which is included within SG&A expenses in the consolidated statement of operations. Costs incurred to obtain customer contracts are only in the MA segment.

Costs incurred to fulfill customer contracts, are deferred and recorded within other current assets and other assets when such costs relate directly to a contract, generate or enhance resources of the Company that will be used in satisfying performance obligations in the future and the Company expects to recover those costs.

The Company capitalizes work-in-process costs for in-progress MIS ratings, which is recognized consistent with the rendering of the related services to the customers, as ratings are issued. The Company had a balance of $10.3 million in such deferred costs as of June 30, 2018 and recognized $10.1 million and $19.5 million of amortization of the costs during the three and six-month periods ended June 30, 2018, respectively, which is included within operating expenses in the consolidated statement of operations.

In addition, within the MA segment, the Company capitalizes royalty costs related to third-party information data providers associated with hosted company information and business intelligence products. These costs are amortized to expense consistent with the recognition pattern of the related revenue over time. The Company had a balance of $28.2 million in such deferred costs as of June 30, 2018 and recognized $14.1 million and $28.3 million of related amortization during the three and six-month periods ended June 30, 2018, respectively, which is included within operating expenses in the consolidated statement of operations.

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Fair Value of Financial Instruments

The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, all of which are short-term in nature and, accordingly, approximate fair value. Additionally, the Company invests in certain short-term investments consisting primarily of certificates of deposit that are carried at cost, which approximates fair value due to their short-term maturities.

The Company also has certain investments in closed-ended and open-ended mutual funds in India which are accounted for as equity securities with readily determinable fair values under ASC Topic 321. Beginning in the first quarter of 2018, the Company will measure these investments at fair value with both realized gains and losses and unrealized holding gains and losses for these investments included in net income.

Prior to January 1, 2018, the investments in closed-ended and open-ended mutual funds in India were designated as ‘available for sale’ under Topic 320 of the ASC. Accordingly, unrealized gains and losses on these investments were recorded to other comprehensive income and were reclassified out of accumulated other comprehensive income to the statement of operations when the investment matured or was sold using a specific identification method.

Also, the Company uses derivative instruments to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value on the Company’s consolidated balance sheets.

Fair value is defined by the ASC as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset.

The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows:

Level 1: quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement;

Level 2: inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;

Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities.

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Derivative Instruments and Hedging Activities

Based on the Company’s risk management policy, from time to time the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values. The changes in the value of derivatives that qualify as fair value hedges are recorded in the same income statement line item in earnings in which the corresponding adjustment to the carrying value of the hedged item is presented. The entire change in the fair value of derivatives that qualify as cash flow hedges is recorded to OCI and such amounts are reclassified from AOCI to the same income statement line in earnings in the same period or periods during which the hedged transaction affects income. Effective with the Company’s early adoption of ASC 2017-12, the Company changed the method by which it assesses effectiveness for net investment hedges from the forward-method to the spot-method. The Company considers the spot-method an improved method of assessing hedge effectiveness, as spot rate changes relating to the hedging instrument’s notional amount perfectly offset the currency translation adjustment on the hedged net investment in the Company’s foreign subsidiaries. The entire change in the fair value of derivatives that qualify as net investment hedges is initially recorded to OCI. Those changes in fair value attributable to components included in the assessment of hedge effectiveness in a net investment hedge are recorded in the currency translation adjustment component of OCI and remain in AOCI until the period in which the hedged item affects earnings. Those changes in fair value attributable to components excluded from the assessment of hedge effectiveness in a net investment hedge are recorded to OCI and amortized to earnings using a systematic and rational method over the duration of the hedge. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur. Refer to Note 9 for further information regarding the Company’s derivative financial instruments and hedging activities.

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NOTE 3. REVENUES

Revenue by Category

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017 (1)			2018			2017 (1)
MIS:
Corporate finance (CFG)
Investment-grade	$	67.3		$	84.6		$	148.4		$	156.7
High-yield		58.6			62.7			116.5			126.9
Bank loans		117.9			90.3			226.0			191.7
Other accounts (2)		133.8			118.2			264.4			233.3
Total CFG		377.6			355.8			755.3			708.6
Structured finance (SFG)
Asset-backed securities		27.9			24.1			56.1			46.8
Residential mortgage backed securities		26.8			22.4			51.1			42.8
Commercial real estate finance		31.6			29.9			64.8			59.2
Structured credit		54.5			42.2			97.9			69.6
Other accounts		0.8			0.6			1.4			1.0
Total SFG		141.6			119.2			271.3			219.4
Financial institutions (FIG)
Banking		77.3			70.4			154.3			149.5
Insurance		32.9			23.4			61.2			48.5
Managed investments		7.2			5.9			12.9			11.0
Other accounts		3.2			2.7			6.5			5.7
Total FIG		120.6			102.4			234.9			214.7
Public, project and infrastructure finance (PPIF)
Public finance / sovereign		51.7			53.2			98.6			106.2
Project and infrastructure		56.4			51.5			102.7			96.6
Total PPIF		108.1			104.7			201.3			202.8
Total ratings revenue		747.9			682.1			1,462.8			1,345.5
MIS Other		4.4			4.6			9.4			9.4
Total external revenue		752.3			686.7			1,472.2			1,354.9
Intersegment royalty		30.6			27.0			60.4			53.0
Total MIS		782.9			713.7			1,532.6			1,407.9
MA:
Research, data and analytics (RD&A)		279.9			180.9			549.1			356.3
Enterprise risk solutions (ERS)		105.5			97.3			205.6			193.2
Professional services (PS)		37.4			35.6			74.9			71.3
Total external revenue		422.8			313.8			829.6			620.8
Intersegment revenue		2.4			3.8			7.4			7.5
Total MA		425.2			317.6			837.0			628.3
Eliminations		(33.0	)		(30.8	)		(67.8	)		(60.5	)
Total MCO	$	1,175.1		$	1,000.5		$	2,301.8		$	1,975.7

⁽¹⁾   Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.

⁽²⁾  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.

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

	Three Months Ended June 30, 2018						Three Months Ended June 30, 2017 (1)
	United States		International		Total		United States		International		Total
MIS:
Corporate finance (CFG)	$	242.3	$	135.3	$	377.6	$	220.8	$	135.0	$	355.8
Structured finance (SFG)		93.3		48.3		141.6		81.6		37.6		119.2
Financial institutions (FIG)		54.4		66.2		120.6		43.9		58.5		102.4
Public, project and infrastructure finance (PPIF)		61.1		47.0		108.1		66.0		38.7		104.7
Total ratings revenue		451.1		296.8		747.9		412.3		269.8		682.1
MIS Other		0.1		4.3		4.4		0.1		4.5		4.6
Total MIS		451.2		301.1		752.3		412.4		274.3		686.7
MA:
Research, data and analytics (RD&A)		118.2		161.7		279.9		101.7		79.2		180.9
Enterprise risk solutions (ERS)		42.6		62.9		105.5		40.4		56.9		97.3
Professional services (PS)		13.4		24.0		37.4		13.3		22.3		35.6
Total MA		174.2		248.6		422.8		155.4		158.4		313.8
Total MCO	$	625.4	$	549.7	$	1,175.1	$	567.8	$	432.7	$	1,000.5
	Six Months Ended June 30, 2018						Six Months Ended June 30, 2017 (1)
	United States		International		Total		United States		International		Total
MIS:
Corporate finance (CFG)	$	489.0	$	266.3	$	755.3	$	464.6	$	244.0	$	708.6
Structured finance (SFG)		177.9		93.4		271.3		146.6		72.8		219.4
Financial institutions (FIG)		102.9		132.0		234.9		94.5		120.2		214.7
Public, project and infrastructure finance (PPIF)		114.5		86.8		201.3		129.0		73.8		202.8
Total ratings revenue		884.3		578.5		1,462.8		834.7		510.8		1,345.5
MIS Other		0.3		9.1		9.4		0.2		9.2		9.4
Total MIS		884.6		587.6		1,472.2		834.9		520.0		1,354.9
MA:
Research, data and analytics (RD&A)		230.8		318.3		549.1		203.1		153.2		356.3
Enterprise risk solutions (ERS)		81.1		124.5		205.6		80.6		112.6		193.2
Professional services (PS)		26.6		48.3		74.9		27.0		44.3		71.3
Total MA		338.5		491.1		829.6		310.7		310.1		620.8
Total MCO	$	1,223.1	$	1,078.7	$	2,301.8	$	1,145.6	$	830.1	$	1,975.7

⁽¹⁾  Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.

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The tables below summarize the split between transaction and relationship revenue. In the MIS segment, excluding MIS Other, transaction revenue represents the initial rating of a new debt issuance as well as other one-time fees while relationship revenue represents the 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. In MIS Other, transaction revenue represents revenue from professional services and outsourcing engagements and relationship revenue represents subscription-based revenues. In the MA segment, relationship revenue represents subscription-based revenues and software maintenance revenue. Transaction revenue in MA represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, training and certification services, and outsourced research and analytical engagements.

	Three Months Ended June 30,
	2018									2017 (2)
	Transaction			Relationship			Total			Transaction			Relationship			Total
Corporate Finance	$	274.3		$	103.3		$	377.6		$	262.5		$	93.3		$	355.8
		73	%		27	%		100	%		74	%		26	%		100	%
Structured Finance	$	95.3		$	46.3		$	141.6		$	75.2		$	44.0		$	119.2
		67	%		33	%		100	%		63	%		37	%		100	%
Financial Institutions	$	56.2		$	64.4		$	120.6		$	43.9		$	58.5		$	102.4
		47	%		53	%		100	%		43	%		57	%		100	%
Public, Project and Infrastructure Finance	$	69.7		$	38.4		$	108.1		$	67.2		$	37.5		$	104.7
		64	%		36	%		100	%		64	%		36	%		100	%
MIS Other	$	0.4		$	4.0		$	4.4		$	0.3		$	4.3		$	4.6
		9	%		91	%		100	%		7	%		93	%		100	%
Total MIS	$	495.9		$	256.4		$	752.3		$	449.1		$	237.6		$	686.7
		66	%		34	%		100	%		65	%		35	%		100	%
Moody’s Analytics	$	66.5	(1)	$	356.3		$	422.8		$	62.8		$	251.0		$	313.8
		16	%		84	%		100	%		20	%		80	%		100	%
Total Moody’s Corporation	$	562.4		$	612.7		$	1,175.1		$	511.9		$	488.6		$	1,000.5
		48	%		52	%		100	%		51	%		49	%		100	%
	Six Months Ended June 30,
	2018									2017 (2)
	Transaction			Relationship			Total			Transaction			Relationship			Total
Corporate Finance	$	549.2		$	206.1		$	755.3		$	523.1		$	185.5		$	708.6
		73	%		27	%		100	%		74	%		26	%		100	%
Structured Finance	$	178.4		$	92.9		$	271.3		$	132.7		$	86.7		$	219.4
		66	%		34	%		100	%		60	%		40	%		100	%
Financial Institutions	$	106.2		$	128.7		$	234.9		$	97.3		$	117.4		$	214.7
		45	%		55	%		100	%		45	%		55	%		100	%
Public, Project and Infrastructure Finance	$	124.1		$	77.2		$	201.3		$	126.4		$	76.4		$	202.8
		62	%		38	%		100	%		62	%		38	%		100	%
MIS Other	$	1.0		$	8.4		$	9.4		$	0.6		$	8.8		$	9.4
		11	%		89	%		100	%		6	%		94	%		100	%
Total MIS	$	958.9		$	513.3		$	1,472.2		$	880.1		$	474.8		$	1,354.9
		65	%		35	%		100	%		65	%		35	%		100	%
Moody’s Analytics	$	127.3	(1)	$	702.3		$	829.6		$	127.4		$	493.4		$	620.8
		15	%		85	%		100	%		21	%		79	%		100	%
Total Moody’s Corporation	$	1,086.2		$	1,215.6		$	2,301.8		$	1,007.5		$	968.2		$	1,975.7
		47	%		53	%		100	%		51	%		49	%		100	%

⁽¹⁾  Revenue from software implementation services and risk management advisory projects, while classified by management as transactional revenue, is recognized over time under the New Revenue Accounting Standard (please also refer to the table below).

⁽²⁾  Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.

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The following table presents the timing of revenue recognition:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018						2018
	MIS		MA		Total		MIS		MA		Total
Revenue recognized at a point in time	$	495.9	$	14.0	$	509.9	$	958.9	$	29.5	$	988.4
Revenue recognized over time		256.4		408.8		665.2		513.3		800.1		1,313.4
Total	$	752.3	$	422.8	$	1,175.1	$	1,472.2	$	829.6	$	2,301.8

Unbilled receivables, Deferred revenue and Remaining performance obligations

Unbilled receivables

At June 30, 2018, accounts receivable included approximately $336.7 million of unbilled receivables related to the MIS segment. Certain MIS arrangements contain contractual terms whereby the customers are billed in arrears for annual monitoring services, requiring revenue to be accrued as an unbilled receivable as such services are provided. Additionally, there are other instances in which the timing of when the Company has the unconditional right to consideration and recognizes revenue prior to invoicing the customer, for which an unbilled receivable is recorded.

In addition, for certain MA arrangements, the timing of when the Company has the unconditional right to consideration and recognizes revenue occurs prior to invoicing the customer. Consequently, at June 30, 2018, accounts receivable included approximately $34.1 million of unbilled receivables related to the MA segment.

Historically, the Company has not had material differences between the estimated revenue and the actual billings.

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Deferred revenue

The Company recognizes deferred revenue when a contract requires a customer to pay consideration to the Company in advance of when revenue related to that contract is recognized. This deferred revenue is relieved when the Company satisfies the related performance obligation and revenue is recognized.

Significant changes in the deferred revenue balances during the three and six months ended June 30, 2018 are as follows:

	Three Months Ended June 30, 2018
	MIS			MA			Total
Balance at March 31, 2018	$	397.5		$	729.0		$	1,126.5
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period		(127.2	)		(230.0	)		(357.2	)
Increases due to amounts billable excluding amounts recognized as revenue during the period		112.6			132.1			244.7
Effect of exchange rate changes		(5.4	)		(22.1	)		(27.5	)
Total changes in deferred revenue		(20.0	)		(120.0	)		(140.0	)
Balance at June 30, 2018	$	377.5		$	609.0		$	986.5
	Six Months Ended June 30, 2018
	MIS			MA			Total
Balance at January 1, 2018 (after New Revenue Accounting Standard transition adjustment)	$	334.7		$	611.6		$	946.3
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period		(165.4	)		(307.2	)		(472.6	)
Increases due to amounts billable excluding amounts recognized as revenue during the period		212.6			315.2			527.8
Effect of exchange rate changes		(4.4	)		(10.6	)		(15.0	)
Total changes in deferred revenue		42.8			(2.6	)		40.2
Balance at June 30, 2018	$	377.5		$	609.0		$	986.5
Deferred revenue - current	$	255.9		$	604.6		$	860.5
Deferred revenue - noncurrent	$	121.6		$	4.4		$	126.0

For the MIS segment, the changes in the deferred revenue balance during the three and six months ended June 30, 2018 were primarily related to the significant portion of contract renewals that occur during the first quarter of 2018 and are generally recognized over a one year period.

For the MA segment, the decrease in deferred revenue for the three months ended June 30, 2018 was primarily due to the recognition of annual subscription and maintenance billings in December 2017 and January 2018. For the six months ended June 30, 2018, the impact of the high concentration of January 2018 billings on the deferred revenue balance was mostly offset by the recognition of revenues related to the aforementioned December 2017 and January 2018 billings.

Remaining performance obligations

The following tables include the expected recognition period for the remaining performance obligations for each reportable segment as of June 30, 2018:

MIS
Total		Less than 1 year		1 - 5 years		6 - 10 Years		11 - 15 years		16-20 years		Over 20 Years
$	131.9	$	6.2	$	65.6	$	41.7	$	8.0	$	4.3	$	6.1

The balances in the MIS table above largely reflect deferred revenue related to monitoring fees for certain structured finance products, primarily CMBS, where the issuers can elect to pay the monitoring fees for the life of the security in advance. With respect to the remaining performance obligations for the MIS segment, the Company has applied a practical expedient set forth in ASC Topic 606 permitting the omission from the table above for unsatisfied performance obligations relating to contracts with an original expected length of one year or less.

31

MA
Total		Less than 1 Year		1 -2 Years		Over 2 Years
$	1,384.7	$	1,050.1	$	232.6	$	102.0

The balances in the MA table above include both amounts recorded as deferred revenue on the balance sheet as of June 30, 2018 as well as amounts not yet invoiced to customers as of June 30, 2018 largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription based products.

NOTE 4. STOCK-BASED COMPENSATION

Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Stock-based compensation cost	$	34.4	$	28.7	$	69.5	$	57.1
Tax benefit	$	7.3	$	9.4	$	14.5	$	18.5

During the first six months of 2018, the Company granted 0.2 million employee stock options, which had a weighted average grant date fair value of $45.87 per share based on the Black-Scholes option-pricing model. The Company also granted 0.7 million shares of restricted stock in the first six months of 2018, which had a weighted average grant date fair value of $167.48 per share. Both the employee stock options and restricted stock generally vest ratably over a four-year period. Additionally, the Company granted 0.1 million shares of performance-based awards whereby the number of shares that ultimately vest are based on the achievement of certain non-market based performance metrics of the Company over a three-year period. The weighted average grant date fair value of these awards was $162.42 per share.

The following weighted average assumptions were used in determining the fair value for options granted in 2018:

Expected dividend yield		1.05	%
Expected stock volatility		25.6	%
Risk-free interest rate		2.81	%
Expected holding period		6.2 years
Grant date fair value	$	45.87

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Unrecognized stock-based compensation expense at June 30, 2018 was $9.7 million and $191.4 million for stock options and unvested restricted stock, respectively, which is expected to be recognized over a weighted average period of 1.4 years and 1.7 years, respectively. Additionally, there was $37.5 million of unrecognized stock-based compensation expense relating to the aforementioned non-market based performance-based awards, which is expected to be recognized over a weighted average period of 1.0 years.

The following tables summarize information relating to stock option exercises and restricted stock vesting:

	Six Months Ended
	June 30,
Exercise of stock options:	2018		2017
Proceeds from stock option exercises	$	31.9	$	35.3
Aggregate intrinsic value	$	84.4	$	52.2
Tax benefit realized upon exercise	$	20.6	$	18.3
Number of shares exercised		0.7		0.8
	Six Months Ended
	June 30,
Vesting of restricted stock:	2018		2017
Fair value of shares vested	$	148.7	$	107.9
Tax benefit realized upon vesting	$	34.3	$	34.1
Number of shares vested		0.9		1.0
	Six Months Ended
	June 30,
Vesting of performance-based restricted stock:	2018		2017
Fair value of shares vested	$	23.0	$	19.5
Tax benefit realized upon vesting	$	5.5	$	6.9
Number of shares vested		0.1		0.2

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NOTE 5. INCOME TAXES

Moody’s effective tax rate was 23.7% and 32.1% for the three months ended June 30, 2018 and 2017, respectively, and 19.4% and 27.8% for the six month periods ended June 30, 2018 and 2017, respectively. The decline in the tax rate primarily reflects the impact of an enacted lower corporate tax rate in the U.S. pursuant to the Tax Act. Additionally, the ETR in the first half of 2018 includes an approximate $36 million benefit relating to Excess Tax Benefits on stock-based compensation as well as a net uncertain tax position benefit pursuant to statute of limitation lapses. The ETR in the first half of 2017 reflected the non-taxable CCXI gain and approximately $28 million in Excess Tax Benefits on stock-based compensation partially offset by tax on the Purchase Price Hedge Gain which was taxed in a higher tax jurisdiction.

On December 22, 2017, the Tax Act was signed into law which resulted in significant changes to U.S. corporate tax laws. The Tax Act includes a mandatory one-time deemed repatriation tax (“transition tax”) on previously untaxed accumulated earnings of foreign subsidiaries and beginning in 2018 reduces the statutory federal corporate income tax rate from 35% to 21%. Due to the complexities of the Tax Act, the SEC issued guidance requiring that companies provide a reasonable estimate of the impact of the Tax Act to the extent such reasonable estimate has been determined. Accordingly, as of December 31, 2017, the Company recorded a provisional estimate for the transition tax of $247.3 million, a portion of which will be payable over eight years, starting in 2018, and will not accrue interest. The above provisional estimate may be impacted by a number of additional considerations, including but not limited to the issuance of regulations and our ongoing analysis of the new law.

As a result of the Tax Act, all previously net undistributed foreign earnings have now been subject to U.S. tax. The Company continues to evaluate which entities it will indefinitely reinvest earnings outside the U.S. The Company has provided non-U.S. deferred taxes for those entities whose earnings are not considered permanently reinvested outside of the U.S.

The Company classifies interest related to UTPs in interest expense, net in its consolidated statements of operations. Penalties, if incurred, would be recognized in other non-operating (expense) income, net. The Company had a decrease in its UTPs of $92.6 million ($92.3 million net of federal tax) during the second quarter of 2018 and a net increase in its UTPs during the first six months of 2018 of $9.2 million ($7.5 million net of federal tax). The movement in UTPs was primarily related to balance sheet classifications regarding the transition tax under U.S. tax reform.

Moody’s Corporation and subsidiaries are subject to U.S. federal income tax as well as income tax in various state, local and foreign jurisdictions. The Company’s U.S. federal income tax returns for 2013 through 2016 remain open to examination. The Company’s New York State tax returns for 2011 through 2014 are currently under examination and the Company’s New York City tax return for 2014 is currently under examination. The Company’s U.K. tax return for 2012 is currently under examination and its returns for 2013 through 2016 remain open to examination.

For ongoing audits, it is possible the balance of UTPs could decrease in the next twelve months as a result of the settlement of these audits, which might involve the payment of additional taxes, the adjustment of certain deferred taxes and/or the recognition of tax benefits. It is also possible that new issues might be raised by tax authorities which could necessitate increases to the balance of UTPs. As the Company is unable to predict the timing or outcome of these audits, it is therefore unable to estimate the amount of changes to the balance of UTPs at this time. However, the Company believes that it has adequately provided for its financial exposure relating to all open tax years by tax jurisdiction in accordance with the applicable provisions of Topic 740 of the ASC regarding UTPs.

The following table shows the amount the Company paid for income taxes:

	Six Months Ended
	June 30,
	2018		2017
Income taxes paid	$	237.3	$	83.9

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NOTE 6. WEIGHTED AVERAGE SHARES OUTSTANDING

Below is a reconciliation of basic to diluted shares outstanding:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Basic		191.9		191.0		191.6		191.1
Dilutive effect of shares issuable under stock-based compensation plans		2.5		2.8		2.9		3.0
Diluted		194.4		193.8		194.5		194.1
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above		0.5		0.7		0.7		1.0

The calculation of diluted EPS requires certain assumptions regarding the use of both cash proceeds and assumed proceeds that would be received upon the exercise of stock options and vesting of restricted stock outstanding as of June 30, 2018 and 2017.

NOTE 7. CASH EQUIVALENTS AND INVESTMENTS

The table below provides additional information on the Company’s cash equivalents and investments:

	As of June 30, 2018
			Gross Unrealized Gains				Balance sheet location
	Cost				Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	35.6	$	—	$	35.6	$	35.6	$	—	$	—
Certificates of deposit and money market deposit accounts (1)	$	421.9	$	—	$	421.9	$	315.1	$	101.2	$	5.6
Fixed maturity and open ended mutual funds (2)	$	37.3	$	5.1	$	42.4	$	—	$	—	$	42.4
	As of December 31, 2017
							Balance sheet location
	Cost		Gross Unrealized Gains		Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	42.2	$	—	$	42.2	$	42.2	$	—	$	—
Certificates of deposit and money market deposit accounts (1)	$	351.4	$	—	$	351.4	$	238.6	$	111.8	$	1.0
Fixed maturity and open ended mutual funds (2)	$	16.8	$	4.3	$	21.1	$	—	$	—	$	21.1

⁽¹⁾  Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one to 12 months at both June 30, 2018 and December 31, 2017. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 to 42 months at June 30, 2018 and 15 to 48 months at December 31, 2017. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.

⁽²⁾  Consists of investments in fixed maturity mutual funds and open-ended mutual funds. The remaining contractual maturities for the fixed maturity instruments is one month at June 30, 2018 and range from six months to seven months at December 31, 2017.

As a result of the adoption of ASU 2016-01, as further discussed in Note 1 and Note 2, the money market mutual funds and the fixed maturity and open-ended mutual funds in the table above are deemed to be equity securities with readily determinable fair values with changes in the fair value recognized through net income under ASC Topic 321. The fair value of these instruments is determined using Level 1 inputs as defined in the ASC.

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NOTE 8. ACQUISITIONS

The business combinations described below are accounted for using the acquisition method of accounting whereby assets acquired and liabilities assumed were recognized at fair value on the date of the transaction. Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded to goodwill.

Bureau van Dijk

On August 10, 2017, a subsidiary of the Company acquired 100% of Yellow Maple I B.V., an indirect parent company of Bureau van Dijk Electronic Publishing B.V., a global provider of business intelligence and company information products. The cash payment of $3,542.0 million was funded with a combination of cash on hand, primarily offshore, and new debt financing. The acquisition extends Moody’s position as a leader in risk data and analytical insight.

Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition:

(Amounts in millions)
Current assets				$	158.4
Property and equipment, net					4.2
Intangible assets:
Customer relationships (23 year weighted average life)	$	998.7
Product technology (12 year weighted average life)		258.5
Trade name (18 year weighted average life)		82.3
Database (10 year weighted average life)		12.9
Total intangible assets (21 year weighted average life)					1,352.4
Goodwill					2,614.7
Other assets					5.9
Liabilities
Deferred revenue	$	(101.1	)
Accounts payable and accrued liabilities		(44.3	)
Deferred tax liabilities, net		(329.8	)
Other liabilities		(118.4	)
Total liabilities					(593.6	)
Net assets acquired				$	3,542.0

The Company has substantially completed the valuation analysis of the fair market value of assets and liabilities of the Bureau van Dijk business. The final allocation may include changes in allocations to acquired intangible assets as well as goodwill and other changes to assets and liabilities including reserves for uncertain tax positions and deferred tax liabilities. The determination of estimated useful lives of acquired intangibles assets is also substantially complete. Current assets in the table above include acquired cash of $36.0 million. Additionally, current assets include accounts receivable of approximately $88.0 million (net of an allowance for uncollectible accounts of $3.7 million).

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The acquired deferred revenue balance of approximately $154 million was reduced by $53 million as part of acquisition accounting to establish the fair value of deferred revenue. This will reduce reported revenue by $53 million over the remaining contractual period of in-progress customer arrangements assumed as of the acquisition date. This resulted in approximately $6 million and $16 million less in reported revenue for the three and six months ended June 30, 2018, respectively, with the remaining approximate $2 million to reduce revenue in subsequent quarterly periods during 2018. Amortization of acquired intangible assets was $18.0 million and $36.6 million for three months and six months ended June 30, 2018, respectively.

Goodwill

Under the acquisition method of accounting for business combinations, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill. Goodwill typically results through expected synergies from combining operations of an acquiree and an acquirer, anticipated new customer acquisition and products, as well as from intangible assets that do not qualify for separate recognition. The goodwill recognized as a result of this acquisition includes, among other things, the value of combining the complementary product portfolios of the Company and Bureau van Dijk, which is expected to extend the Company’s reach to new and evolving market segments as well as cost savings synergies, expected new customer acquisitions and products.

Goodwill, which has been assigned to the MA segment, is not deductible for tax purposes.

Bureau van Dijk is a separate reporting unit for purposes of the Company’s annual goodwill impairment assessment.

Other Liabilities Assumed

In connection with the acquisition, the Company assumed liabilities relating to UTPs as well as deferred tax liabilities which relate to acquired intangible assets. These items are included in other liabilities in the table above.

Supplementary Unaudited Pro Forma Information

Supplemental information on an unaudited pro forma basis is presented below for the six months ended June 30, 2017 as if the acquisition of Bureau van Dijk occurred on January 1, 2016. The pro forma financial information is presented for comparative purposes only and is based on certain estimates and assumptions, which the Company believes to be reasonable but not necessarily indicative of future results of operations or the results that would have been reported if the acquisition had been completed at January 1, 2016. The unaudited pro forma information includes amortization of acquired intangible assets based on the purchase price allocation and an estimate of useful lives reflected above, and incremental financing costs resulting from the acquisition, net of income tax, which was estimated using the weighted average statutory tax rates in effect in the jurisdiction for which the pro forma adjustment relates.

(Amounts in millions)	For six months ended June 30, 2017
Pro forma Revenue	$	2,115.3
Pro forma Net Income attributable to Moody’s	$	656.9

The unaudited pro forma results do not include any anticipated cost savings or other effects of the planned integration of Bureau van Dijk. Accordingly, the pro forma results above are not necessarily indicative of the results that would have been reported if the acquisition had occurred on the dates indicated, nor are the pro forma results indicative of results which may occur in the future. The Bureau van Dijk results included in the table above have been converted to U.S. GAAP from IFRS as issued by the IASB and have been translated to USD at rates in effect for the periods presented.

SCDM Financial

On February 13, 2017, a subsidiary of the Company acquired the structured finance data and analytics business of SCDM Financial. The aggregate purchase price was not material and the near term impact to the Company’s operations and cash flow is not expected to be material. This business unit operates in the MA reportable segment and goodwill related to this acquisition has been allocated to the RD&A reporting unit.

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NOTE 9. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes.

Derivatives and non-derivative instruments designated as accounting hedges:

Interest Rate Swaps

The Company has entered into interest rate swaps to convert the fixed interest rate on certain of its long-term debt to a floating interest rate based on the 3-month LIBOR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the long-term debt, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the debt. The changes in the fair value of the swaps and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest expense, net in the Company’s consolidated statement of operations.

The following table summarizes the Company’s interest rate swaps designated as fair value hedges:

Hedged Item	Nature of Swap	Notional Amount		Floating Interest Rate
		As of June 30, 2018	As of December 31, 2017
2010 Senior Notes due 2020	Pay Floating/Receive Fixed	$500.0	$500.0	3-month LIBOR
2017 Senior Notes due 2021	Pay Floating/Receive Fixed	$500.0	$   —	3-month LIBOR
2014 Senior Notes due 2019	Pay Floating/Receive Fixed	$450.0	$450.0	3-month LIBOR
2012 Senior Notes due 2022	Pay Floating/Receive Fixed	$  80.0	$  80.0	3-month LIBOR

Refer to Note 15 for information on the cumulative amount of fair value hedging adjustments included in the carrying amount of the above hedged items.

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The following table summarizes the impact to the statement of operations of the Company’s interest rate swaps designated as fair value hedges:

		Amount of income/(loss) recognized in the consolidated statements  of operations
		Three Months Ended June 30,						Six Months Ended June 30,
		2018			2017			2018			2017
Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded
Interest expense, net		$	(53.4	)	$	(49.7	)	$	(104.1	)	$	(97.1	)
Descriptions	Location on Statement of Operations
Net interest settlements and accruals on interest rate swaps	Interest expense, net	$	(0.4	)	$	1.8		$	(0.5	)	$	4.2
Fair value changes on interest rate swaps	Interest expense, net	$	(2.3	)	$	3.1		$	(11.5	)	$	0.1
Fair value changes on hedged debt	Interest expense, net	$	2.3		$	(3.1	)	$	11.5		$	(0.1	)

Cash flow hedges

In conjunction with the issuance of the 2015 Senior Notes, the Company entered into a cross-currency swap to exchange €100 million for U.S. dollars on the date of the settlement of the notes. The purpose of this cross-currency swap was to mitigate FX risk on the remaining principal balance on the 2015 Senior Notes that initially was not designated as a net investment hedge. Under the terms of the swap, the Company paid the counterparty interest on the $110.5 million received at 3.945% per annum and the counterparty paid the Company interest on the €100 million paid at 1.75% per annum. These interest payments were settled in March of each year, beginning in 2016, until early termination of the cross-currency swap in 2017 which was at the discretion of the Company. In March 2016, the Company designated these cross-currency swaps as cash flow hedges. Accordingly, changes in fair value subsequent to the date the swaps were designated as cash flow hedges were recognized in OCI. Gains and losses on the swaps initially recognized in OCI were reclassified to the statement of operations in the period in which changes in the underlying hedged item affects net income. On December 18, 2017, the Company terminated the cross-currency swap and designated the full €500 million principal of the 2015 Senior Notes as a net investment hedge as discussed below.

Net investment hedges

The Company has designated €500 million of the 2015 Senior Notes Due 2027 as a net investment hedge. This hedge is intended to mitigate FX exposure related to a portion of the Company’s euro net investment in certain foreign subsidiaries against changes in euro/USD exchange rates. This net investment hedge is designated as an accounting hedge under the applicable sections of Topic 815 of the ASC and will end upon the repayment of the notes in 2027 unless terminated earlier at the discretion of the Company.

In addition, during the second quarter of 2018 the Company entered into cross-currency swaps to exchange an aggregate amount of €490.1 million with corresponding interest based on the floating 3-month EURIBOR for an aggregate amount of $580.0 million with corresponding interest based on the floating 3-month U.S. LIBOR, which were designated as net investment hedges under ASC Topic 815. The purpose of these cross-currency swaps is to mitigate FX exposure related to a portion of the Company’s euro net investments in certain foreign subsidiaries against changes in euro/USD exchange rates. These hedges will expire and be settled in 2021 and 2022 for €422.5 million and €67.6 million of the total notional amount, respectively, unless terminated early at the discretion of the Company.

39

Beginning in 2018 with the Company’s initial application of ASU 2017-12, net periodic interest settlements and accruals on the cross currency swaps (which would include any cross-currency basis spread adjustment) are reported directly in interest expense, net. Changes in the fair value of the cross-currency swaps resulting from changes in the foreign exchange spot rate will continue to be recorded within the cumulative translation component of OCI.

The following table provides information on the gains/(losses) on the Company’s net investment and cash flow hedges:

	Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax					Amount of Gain/(Loss)  Reclassified from AOCI into Income, net of Tax					Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships	Three Months Ended June 30,					Three Months Ended June  30,					Three Months Ended June 30,
	2018		2017 (a)			2018		2017 (a)			2018 (c)		2017 (d)
Cross currency swaps	$	4.0	$	—		$	—	$	—		$	2.1	$	—
FX forwards		—		0.8			—		—			—		—
Long-term debt		23.4		(17.5	)		—		—			—		—
Total net investment hedges	$	27.4	$	(16.7	)	$	—	$	—		$	2.1	$	—
Derivatives in Cash Flow Hedging Relationships
Cross currency swap	$	—	$	3.6		$	0.1	$	4.3	(b)	$	—	$	0.4
Interest rate contracts		—		(0.4	)		—		(1.0	)		—		—
Total cash flow hedges	$	—	$	3.2		$	0.1	$	3.3		$	—	$	0.4
Total	$	27.4	$	(13.5	)	$	0.1	$	3.3		$	2.1	$	0.4
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships	Six Months Ended June 30,					Six Months Ended June  30,					Six Months Ended June 30,
	2018		2017 (a)			2018		2017 (a)			2018(c)		2017(d)
Cross currency swaps	$	4.0	$	—		$		$	—		$	2.1	$	—
FX forwards		—		0.8			—		—			—		—
Long-term debt		12.5		(21.1	)		—		—			—		—
Total net investment hedges	$	16.5	$	(20.3	)	$	—	$	—		$	2.1	$	—
Derivatives in Cash Flow Hedging Relationships
Cross currency swap	$	1.5	$	3.4		$	0.2	$	5.3	(b)	$	—	$	0.4
Interest rate contracts		—		(0.4	)		—		(1.1	)		—		—
Total cash flow hedges	$	1.5	$	3.0		$	0.2	$	4.2		$	—	$	0.4
Total	$	18.0	$	(17.3	)	$	0.2	$	4.2		$	2.1	$	0.4

(a) For the three and six months ended June 30, 2017, amount of gain or (loss) represents only the effective portion of the hedging relationship as this period was prior to the Company’s 2018 initial application of ASU 2017-12.

(b) For the three and six months ended June 30, 2017, reflects $7.1 million and $8.6 million, respectively in gains recorded in other non-operating income (expense), net and $2.8 million and $3.3 million relating to the tax effect of the aforementioned item.

(c) Effective with the adoption of ASU 2017-12, the Company has elected to assess the effectiveness of its net investment hedges based on changes in spot exchange rates. Accordingly, amounts recognized directly into Net Income during the three and six months ended June 30, 2018 related to its cross-currency swaps represent net periodic interest settlements and accruals which are recognized in interest expense, net.

(d) For the three and six months ended June 30, 2017, amount of gain or (loss) recognized directly into income represents the ineffective portion of the hedging relationship. No hedging instruments for which ineffectiveness was recognized directly into Net Income in 2017 or in years prior were outstanding at the date of adoption of ASU 2017-12.

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The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCI is as follows:

	Cumulative Gains/(Losses), net of tax
	June 30, 2018			December 31, 2017
Net investment hedges
Cross currency swaps	$	4.0		$	—
FX forwards		23.5			23.5
Long-term debt		(12.2	)		(24.7	)
Total net investment hedges	$	15.3		$	(1.2	)
Cash flow hedges
Interest rate contracts	$	(0.4	)	$	(0.4	)
Cross currency swap		2.6			1.3
Total cash flow hedges		2.2			0.9
Total net gain (loss) in AOCI	$	17.5		$	(0.3	)

Derivatives not designated as accounting hedges:

Foreign exchange forwards

The Company also enters into foreign exchange forwards to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than a subsidiary’s functional currency. These forward contracts are not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating (expense) income, net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through November 2018.

The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards:

	June 30,				December 31,
	2018				2017
	Sell		Buy		Sell		Buy
Notional amount of currency pair:
Contracts to sell USD for GBP	$	707.7	£	511.1	$	484.7	£	362.3
Contracts to sell USD for Japanese Yen	$	25.5	¥	2,700.0	$	24.3	¥	2,700.0
Contracts to sell USD for Canadian dollars	$	69.2	C$	89.0	$	51.7	C$	64.0
Contracts to sell USD for Singapore dollars	$	8.1	S$	11.0	$	39.2	S$	53.0
Contracts to sell USD for Euros	$	75.2	€	63.3	$	465.2	€	390.0

NOTE: € = Euro, £ = British pound, $ = U.S. dollar, ¥ = Japanese Yen, C$ = Canadian dollar, S$= Singapore dollars

Foreign Exchange Options

The Company entered into a foreign currency collar in 2017 consisting of option contracts to economically hedge the Bureau van Dijk euro denominated purchase price (as discussed further in Note 8 of the financial statements). These option contracts were not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. The foreign currency option contracts consisted of separate put and call options each in the aggregate notional amount of €2.7 billion. This collar was settled at the end of July 2017, in advance of the August 10, 2017 closing of the Bureau van Dijk acquisition.

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The following table summarizes the impact to the consolidated statements of operations relating to the net (losses) gains on the Company’s derivatives which are not designated as hedging instruments:

		Three Months Ended June 30,					Six Months Ended June 30,
Derivatives not designated as accounting hedges	Location on Statement of Operations	2018			2017		2018			2017
Foreign exchange forwards	Other non-operating income, net	$	(44.9	)	$	7.1	$	(17.3	)	$	4.8
FX collar relating to Bureau van Dijk acquisition	Purchase Price Hedge Gain		—			41.2		—			41.2
		$	(44.9	)	$	48.3	$	(17.3	)	$	46.0

The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instrument as well as the carrying value of its non-derivative debt instruments designated and qualifying as net investment hedges:

	Derivative and Non-Derivative Instruments
	Balance Sheet Location		June 30, 2018		December 31, 2017
Assets:
Derivatives designated as accounting hedges:
Cross-currency swaps designated as net investment hedges		Other assets	$	5.4	$	—
Interest rate swaps		Other assets		—		0.5
Total derivatives designated as accounting hedges				5.4		0.5
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities		Other current assets		0.4		12.5
Total assets			$	5.8	$	13.0
Liabilities:
Derivatives designated as accounting hedges:
Interest rate swaps		Other non-current liabilities	$	14.5	$	3.5
Total derivatives designated as accounting hedges				14.5		3.5
Non-derivative instrument designated as accounting hedge
Long-term debt designated as net investment hedge		Long-term debt		583.8		600.4
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities		Accounts payable and accrued liabilities		33.3		2.0
Total liabilities			$	631.6	$	605.9

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NOTE 10. GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

The following table summarizes the activity in goodwill for the periods indicated:

	Six Months Ended June 30, 2018
	MIS						MA									Consolidated
	Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill			Accumulated impairment charge			Net goodwill			Gross goodwill			Accumulated impairment charge			Net goodwill
Balance at beginning of year	$	285.2	$	—	$	285.2	$	3,480.2		$	(12.2	)	$	3,468.0		$	3,765.4		$	(12.2	)	$	3,753.2
Additions/adjustments		—		—		—		(4.3	)		—			(4.3	)		(4.3	)		—			(4.3	)
Foreign currency translation adjustments		—		—		—		(86.2	)		—			(86.2	)		(86.2	)		—			(86.2	)
Ending balance	$	285.2	$	—	$	285.2	$	3,389.7		$	(12.2	)	$	3,377.5		$	3,674.9		$	(12.2	)	$	3,662.7
	Year ended December 31, 2017
	MIS						MA									Consolidated
	Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill			Accumulated impairment charge			Net goodwill			Gross goodwill			Accumulated impairment charge			Net goodwill
Balance at beginning of year	$	277.0	$	—	$	277.0	$	758.8		$	(12.2	)	$	746.6		$	1,035.8		$	(12.2	)	$	1,023.6
Additions/adjustments		—		—		—		2,622.6			—			2,622.6			2,622.6			—			2,622.6
Foreign currency translation adjustments		8.2		—		8.2		98.8			—			98.8			107.0			—			107.0
Ending balance	$	285.2	$	—	$	285.2	$	3,480.2		$	(12.2	)	$	3,468.0		$	3,765.4		$	(12.2	)	$	3,753.2

The 2018 additions/adjustments for the MA segment in the table above relate to certain adjustments relating to Bureau van Dijk’s acquired accounts payable and accrued liabilities as of the acquisition date.

The 2017 additions/adjustments for the MA segment in the table above relate to the acquisition of Bureau van Dijk and structured finance data and analytics business of SCDM.

Acquired intangible assets and related amortization consisted of:

	June 30,			December 31,
	2018			2017
Customer relationships	$	1,312.7		$	1,345.1
Accumulated amortization		(186.9	)		(159.9	)
Net customer relationships		1,125.8			1,185.2
Trade secrets		29.9			30.2
Accumulated amortization		(28.1	)		(28.1	)
Net trade secrets		1.8			2.1
Software/product technology		349.0			358.6
Accumulated amortization		(89.8	)		(78.0	)
Net software/product technology		259.2			280.6
Trade names		158.8			161.6
Accumulated amortization		(31.0	)		(26.7	)
Net trade names		127.8			134.9
Other (1)		56.8			57.4
Accumulated amortization		(30.0	)		(28.6	)
Net other		26.8			28.8
Total acquired intangible assets, net	$	1,541.4		$	1,631.6

⁽¹⁾  Other intangible assets primarily consist of databases, covenants not to compete, and acquired ratings methodologies and models.

43

Amortization expense relating to acquired intangible assets is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Amortization expense	$	25.1	$	8.6	$	50.8	$	17.1

Estimated future amortization expense for acquired intangible assets subject to amortization is as follows:

Year Ending December 31,
2018 (after June 30)	$	49.2
2019		94.8
2020		92.4
2021		92.2
2022		91.5
Thereafter		1,121.3
Total estimated future amortization	$	1,541.4

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the estimated undiscounted future cash flows are lower than the carrying amount of the related asset, a loss is recognized for the difference between the carrying amount and the estimated fair value of the asset. There were no impairments to intangible assets during the six months ended June 30, 2018 and 2017.

44

NOTE 11. FAIR VALUE

The table below presents information about items that are carried at fair value at June 30, 2018 and December 31, 2017:

	Fair Value Measurement as of June 30, 2018
Description	Balance		Level 1		Level 2
Assets:
Derivatives (a)	$	5.8	$	—	$	5.8
Money market mutual funds		35.6		35.6		—
Fixed maturity and open ended mutual funds		42.4		42.4		—
Total	$	83.8	$	78.0	$	5.8
Liabilities:
Derivatives (a)	$	47.8	$	—	$	47.8
Total	$	47.8	$	—	$	47.8
	Fair Value Measurement as of December 31, 2017
Description	Balance		Level 1		Level 2
Assets:
Derivatives (a)	$	13.0	$	—	$	13.0
Money market mutual funds		42.2		42.2		—
Fixed maturity and open ended mutual funds		21.1		21.1		—
Total	$	76.3	$	63.3	$	13.0
Liabilities:
Derivatives (a)	$	5.5	$	—	$	5.5
Total	$	5.5	$	—	$	5.5

^(a) Represents FX forwards on certain assets and liabilities as well as interest rate swaps and cross-currency swaps as more fully described in Note 9 to the condensed consolidated financial statements.

The following are descriptions of the methodologies utilized by the Company to estimate the fair value of its derivative contracts, fixed maturity plans, and money market mutual funds:

Derivatives:

In determining the fair value of the derivative contracts in the table above, the Company utilizes industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using spot rates, forward points, currency volatilities, interest rates as well as the risk of non-performance of the Company and the counterparties with whom it has derivative contracts. The Company established strict counterparty credit guidelines and only enters into transactions with financial institutions that adhere to these guidelines. Accordingly, the risk of counterparty default is deemed to be minimal.

Fixed maturity and open-ended mutual funds:

As a result of the adoption of ASU 2016-01, as further discussed in Note 1 and Note 2, the fixed maturity and open-ended mutual funds in the table above are deemed to be equity securities with readily determinable fair values with changes in the fair value recognized through net income under ASC Topic 321. Prior to the Company’s adoption of ASU No. 2016-01, any unrealized gains and losses were recognized through OCI until the instruments matured or were sold. The fair value of these instruments is determined using Level 1 inputs as defined in the ASC.

Money market mutual funds:

Similar to fixed maturity and open-ended mutual funds, the money market mutual funds in the table above are deemed to be equity securities with readily determinable fair values with changes in the fair value recognized through net income under ASC Topic 321 as required by ASU 2016-01. The money market mutual funds represent publicly traded funds with a stable $1 net asset value.

45

NOTE 12. OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

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

	June 30,		December 31,
	2018		2017
Other current assets:
Prepaid taxes	$	114.7	$	94.9
Prepaid expenses		83.5		91.7
Capitalized costs to obtain and fulfill sales contracts (1)		38.0		15.9
Other		50.7		47.6
Total other current assets	$	286.9	$	250.1
	June 30,		December 31,
	2018		2017
Other assets:
Investments in joint ventures	$	107.2	$	99.1
Deposits for real-estate leases		11.9		12.3
Indemnification assets related to acquisitions		16.3		17.0
Mutual funds and fixed deposits		48.0		22.1
Costs to obtain sales contracts (1)		67.1		—
Other		8.5		9.4
Total other assets	$	259.0	$	159.9

⁽¹⁾ The 2018 amount reflects capitalized costs to obtain sales contracts (sales commissions) pursuant to the adoption of the New Revenue Accounting Standard, which are amortized over an average 7 year period as well as costs incurred and capitalized for in process ratings (current assets only).

46

	June 30,		December 31,
	2018		2017
Accounts payable and accrued liabilities:
Salaries and benefits	$	93.3	$	129.6
Incentive compensation		95.2		246.7
Customer credits, advanced payments and advanced billings		23.2		22.2
Self-insurance reserves		11.7		8.1
Dividends		4.4		6.2
Professional service fees		62.8		47.1
Interest accrued on debt		66.0		73.9
Accounts payable		22.5		21.8
Income taxes		85.1		79.2
Pension and other retirement employee benefits (see Note 14)		5.9		5.9
Accrued royalties		13.8		26.4
Foreign exchange forwards on certain assets and liabilities		33.3		2.0
Other		76.4		81.2
Total accounts payable and accrued liabilities	$	593.6	$	750.3
	June 30,		December 31,
	2018		2017
Other liabilities:
Pension and other retirement employee benefits (see Note 14)	$	260.4	$	244.5
Deferred rent - non-current portion		98.6		103.1
Interest accrued on UTPs		55.4		54.7
Other tax matters		1.3		1.3
Income tax liability - non-current (2)		173.2		232.2
Interest rate swaps		14.5		3.5
Other		22.5		24.7
Total other liabilities	$	625.9	$	664.0

⁽²⁾  Primarily reflects the transition tax pursuant to the Tax Act, which was enacted into law in December 2017.

Changes in the Company’s self-insurance reserves for claims insured by the Company’s wholly-owned insurance subsidiary, which primarily relate to legal defense costs for claims from prior years, are as follows:

	Six Months Ended			Year Ended
	June 30, 2018			December 31, 2017
Balance January 1,	$	8.1		$	11.1
Accruals (reversals), net		4.2			9.6
Payments		(0.6	)		(12.6	)
Balance	$	11.7		$	8.1

47

Other Non-Operating Income (Expense):

The following table summarizes the components of other non-operating income (expense):

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
FX gain/(loss)	$	6.2	$	3.8	$	0.3	$	(5.8	)
Net periodic pension costs - other components (1)		2.9		2.1		5.2		3.8
Joint venture income		4.6		4.0		5.9		5.0
Other		1.2		0.5		4.5		(0.3	)
Total	$	14.9	$	10.4	$	15.9	$	2.7

⁽¹⁾ The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in other non-operating income. The service cost component continues to be reported as an operating expense.

Noncontrolling Interests:

The following table summarizes the changes in the Company’s noncontrolling interests:

	Noncontrolling Interests
Balance at December 31, 2016	$	197.7
Net income		7.1
Dividends		(3.3	)
Purchase of noncontrolling interest		(1.0	)
Non-controlling interests portion of foreign currency translation adjustments		13.0
Net realized and unrealized gain on available for sale securities		(0.7	)
Balance at December 31, 2017	$	212.8
Net income		5.6
Dividends		(1.3	)
Non-controlling interests portion of foreign currency translation adjustments		0.1
Balance at June 30, 2018	$	217.2

48

NOTE 13. COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table provides details about the reclassifications out of AOCI:

	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018			Affected line in the consolidated statement of operations
Gains on cash flow hedges
Cross-currency swap	$	0.1		$	0.2			Interest expense, net
Income tax effect of items above		—			—			Provision for income taxes
Total net gains on cash flow hedges		0.1			0.2
Pension and other retirement benefits
Amortization of actuarial losses and prior service costs included in net income		(0.7	)		(1.6	)		Operating expense
Amortization of actuarial losses and prior service costs included in net income		(0.3	)		(0.8	)		SG&A expense
Total before income taxes		(1.0	)		(2.4	)
Income tax effect of item above		0.3			0.7			Provision for income taxes
Total pension and other retirement benefits		(0.7	)		(1.7	)
Total losses included in Net Income attributable to reclassifications out of AOCI	$	(0.6	)	$	(1.5	)
	Three Months Ended June 30, 2017			Six Months Ended June 30, 2017			Affected line in the consolidated statement of operations
Gains on cash flow hedges
Cross-currency swap	$	7.1		$	8.6			Other non-operating expense, net
Treasury rate lock		(1.0	)		(1.1	)		Interest expense, net net
Total before income taxes		6.1			7.5
Income tax effect of item above		(2.8	)		(3.3	)		Provision for income taxes
Total net gains on cash flow hedges		3.3			4.2
Pension and other retirement benefits
Amortization of actuarial losses and prior service costs included in net income		(1.2	)		(2.7	)		Operating expense
Amortization of actuarial losses and prior service costs included in net income		(0.7	)		(1.6	)		SG&A expense
Total before income taxes		(1.9	)		(4.3	)
Income tax effect of item above		0.8			1.7			Provision for income taxes
Total pension and other retirement benefits		(1.1	)		(2.6	)
Total net gains included in Net Income attributable to reclassifications out of AOCI	$	2.2		$	1.6

49

The following table shows changes in AOCI by component (net of tax):

	Three Months Ended
	June 30, 2018															June 30, 2017
Gains/(Losses)	Pension and Other Retirement Benefits			Gains/ (Losses) on Cash Flow Hedges			Foreign Currency Translation Adjustments			Gains on Available for Sale Securities			Total			Pension and Other Retirement Benefits			Gains/ (Losses) on Cash Flow Hedges			Foreign Currency Translation Adjustments			Gains on Available for Sale Securities		Total
Balance March 31,	$	(60.5	)	$	2.3		$	6.3		$	—		$	(51.9	)	$	(78.0	)	$	0.6		$	(283.3	)	$	3.4	$	(357.3	)
Other comprehensive income/(loss) before reclassifications		1.2			—			(254.7	)		—			(253.5	)		4.9			3.2			41.5			0.2		49.8
Amounts reclassified from AOCI		0.7			(0.1	)		—			—			0.6			1.1			(3.3	)		—			—		(2.2	)
Other comprehensive income/(loss)		1.9			(0.1	)		(254.7	)		—			(252.9	)		6.0			(0.1	)		41.5			0.2		47.6
Balance June 30,	$	(58.6	)	$	2.2		$	(248.4	)	$	—		$	(304.8	)	$	(72.0	)	$	0.5		$	(241.8	)	$	3.6	$	(309.7	)
	Six Months Ended
	June 30, 2018															June 30, 2017
Gains/(Losses)	Pension and Other Retirement Benefits			Gains/ (Losses) on Cash Flow Hedges			Foreign Currency Translation Adjustments			Gains on Available for Sale Securities			Total			Pension and Other Retirement Benefits			Gains/ (Losses) on Cash Flow Hedges			Foreign Currency Translation Adjustments			Gains on Available for Sale Securities		Total
Balance December 31,	$	(61.5	)	$	0.9		$	(113.9	)	$	2.3		$	(172.2	)	$	(79.5	)	$	1.7		$	(290.2	)	$	3.1	$	(364.9	)
Adoption of ASU 2016-01 (Refer to Note 1 and Note 2)		—			—			—			(2.3	)		(2.3	)		—			—			—			—		—
Other comprehensive income/(loss) before reclassifications		1.2			1.5			(134.5	)		—			(131.8	)		4.9			3.0			48.4			0.5		56.8
Amounts reclassified from AOCI		1.7			(0.2	)		—			—			1.5			2.6			(4.2	)		—			—		(1.6	)
Other comprehensive income/(loss)		2.9			1.3			(134.5	)		(2.3	)		(132.6	)		7.5			(1.2	)		48.4			0.5		55.2
Balance June 30,	$	(58.6	)	$	2.2		$	(248.4	)	$	—		$	(304.8	)	$	(72.0	)	$	0.5		$	(241.8	)	$	3.6	$	(309.7	)

50

NOTE 14. PENSION AND OTHER RETIREMENT BENEFITS

Moody’s maintains funded and unfunded noncontributory Defined Benefit Pension Plans. The U.S. plans provide defined benefits using a cash balance formula based on years of service and career average salary for its employees or final average pay for selected executives. The Company also provides certain healthcare and life insurance benefits for retired U.S. employees. The retirement healthcare plans are contributory; the life insurance plans are noncontributory. Moody’s funded and unfunded U.S. pension plans, the U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Retirement Plans”. The U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Other Retirement Plans”. The non-U.S. defined benefit pension plans are immaterial.

Effective January 1, 2008, the Company no longer offers DBPPs to U.S. employees hired or rehired on or after January 1, 2008. New U.S. employees will instead receive a retirement contribution of similar benefit value under the Company’s Profit Participation Plan. Current participants of the Company’s DBPPs continue to accrue benefits based on existing plan formulas.

The components of net periodic benefit expense related to the Retirement Plans are as follows:

	Three Months Ended June 30,
	Pension Plans						Other Retirement Plans
	2018			2017			2018			2017
Components of net periodic expense
Service cost	$	4.6		$	4.3		$	0.8		$	0.6
Interest cost		4.4			4.5			0.2			0.3
Expected return on plan assets		(3.8	)		(4.2	)		—			—
Amortization of net actuarial loss from earlier periods		1.5			2.1			—			—
Amortization of net prior service costs from earlier periods		(0.1	)		—			—			—
Net periodic expense	$	6.6		$	6.7		$	1.0		$	0.9
	Six Months Ended June 30,
	Pension Plans						Other Retirement Plans
	2018			2017			2018			2017
Components of net periodic expense
Service cost	$	9.4		$	9.2		$	1.5		$	1.2
Interest cost		8.8			9.2			0.5			0.6
Expected return on plan assets		(7.6	)		(8.3	)		—			—
Amortization of net actuarial loss from earlier periods		3.1			4.5			—			—
Amortization of net prior service costs from earlier periods		(0.2	)		—			(0.1	)		(0.1	)
Net periodic expense	$	13.5		$	14.6		$	1.9		$	1.7

The Company made payments of $2.2 million related to its unfunded U.S. DBPPs and $0.2 million to its U.S. other retirement plans during the six months ended June 30, 2018. The Company anticipates making a contribution of approximately $16 million to its funded pension plan in the second half of 2018. Additionally, the Company anticipates making payments of $3.1 million and $0.7 million to its unfunded U.S. DBPPs and U.S. other retirement plans, respectively, during the remainder of 2018.

51

NOTE 15. INDEBTEDNESS

The following table summarizes total indebtedness:

	June 30, 2018
	Principal Amount		Fair Value of Interest Rate Swaps (1)			Unamortized (Discount) Premium			Unamortized Debt Issuance Costs			Carrying Value
Notes Payable:
5.50% 2010 Senior Notes, due 2020	$	500.0	$	(7.3	)	$	(0.8	)	$	(0.9	)	$	491.0
4.50% 2012 Senior Notes, due 2022		500.0		(2.8	)		(1.8	)		(1.6	)		493.8
4.875% 2013 Senior Notes, due 2024		500.0		—			(1.7	)		(2.2	)		496.1
2.75% 2014 Senior Notes (5-Year), due 2019		450.0		(4.4	)		(0.2	)		(0.7	)		444.7
5.25% 2014 Senior Notes (30-Year), due 2044		600.0		—			3.3			(5.6	)		597.7
1.75% 2015 Senior Notes, due 2027		583.8		—			—			(3.3	)		580.5
2.75% 2017 Senior Notes, due 2021		500.0		—			(1.1	)		(2.9	)		496.0
2017 Floating Rate Senior Notes, due 2018		300.0		—			—			(0.1	)		299.9
2.625% 2017 Senior Notes, due 2023		500.0		—			(1.0	)		(3.2	)		495.8
3.25% 2017 Senior Notes, due 2028		500.0		—			(5.0	)		(3.8	)		491.2
3.25% 2018 Senior Notes, due 2021		300.0		—			(0.4	)		(1.7	)		297.9
2017 Term Loan Facility, due 2020		50.0		—			—			(0.5	)		49.5
Commercial Paper		90.0		—			(0.1	)		—			89.9
Total debt	$	5,373.8	$	(14.5	)	$	(8.8	)	$	(26.5	)	$	5,324.0
Current portion													(389.8	)
Total long-term debt												$	4,934.2
	December 31, 2017
	Principal Amount		Fair Value of Interest Rate Swaps (1)			Unamortized (Discount) Premium			Unamortized Debt Issuance Costs			Carrying Value
Notes Payable:
5.50% 2010 Senior Notes, due 2020	$	500.0	$	—		$	(1.0	)	$	(1.2	)	$	497.8
4.50% 2012 Senior Notes, due 2022		500.0		(0.8	)		(2.0	)		(1.7	)		495.5
4.875% 2013 Senior Notes, due 2024		500.0		—			(1.8	)		(2.4	)		495.8
2.75% 2014 Senior Notes (5-Year), due 2019		450.0		(2.2	)		(0.2	)		(1.1	)		446.5
5.25% 2014 Senior Notes (30-Year), due 2044		600.0		—			3.3			(5.7	)		597.6
1.75% 2015 Senior Notes, due 2027		600.4		—			—			(3.6	)		596.8
2.75% 2017 Senior Notes, due 2021		500.0		—			(1.3	)		(3.2	)		495.5
2017 Floating Rate Senior Notes, due 2018		300.0		—			—			(0.5	)		299.5
2.625% 2017 Senior Notes, due 2023		500.0		—			(1.1	)		(3.5	)		495.4
3.25% 2017 Senior Notes, due 2028		500.0		—			(5.2	)		(3.9	)		490.9
2017 Term Loan Facility, due 2020		500.0		—			—			(0.7	)		499.3
Commercial Paper		130.0		—			(0.1	)		—			129.9
Total debt	$	5,580.4	$	(3.0	)	$	(9.4	)	$	(27.5	)	$	5,540.5
Current portion													(429.4	)
Total long-term debt												$	5,111.1

⁽¹⁾  The Company has entered into interest rate swaps on the 2010 Senior Notes, the 2012 Senior Notes, the 2014 Senior Notes (5-Year) and the 2017 Senior Notes due 2021 which are more fully discussed in Note 9 above. These amounts represent the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt.

52

Term Loan Facility

In the second quarter of 2018, the Company repaid $450 million of the 2017 Term Loan Facility. As of June 30, 2018, the Company has $50 million outstanding under the 2017 Term Loan Facility.

Commercial Paper

As of June 30, 2018, the Company has CP borrowings outstanding of $90 million with a weighted average maturity date at the time of issuance of 33 days. At June 30, 2018, the weighted average remaining maturity and interest rate on CP outstanding was 11 days and 2.35% respectively.

Notes Payable

On June 1, 2018, the Company issued $300 million aggregate principal amount of senior unsecured notes in a public offering. The 2018 Senior Notes bear interest at the annual fixed rate of 3.250% and mature on June 7, 2021. Interest on the notes will be due semi-annually on June 7 and December 7 of each year, commencing December 7, 2018. The Company may redeem, in whole or in part, the notes at any time, at a price equal to the greater of (i) 100% of the principal amount being prepaid, plus accrued and unpaid interest, and (ii) the make-whole redemption price set forth in the notes, plus accrued and unpaid interest. Notwithstanding the preceding sentence, the Company may redeem all or a portion of the notes at its option at any time on or after May 7, 2021 (one month prior to their maturity), at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.    

Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon the occurrence of a Change of Control Triggering Event (as defined in the Indenture) at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any Indebtedness (as defined in the Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the indenture, the notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

At June 30, 2018, the Company was in compliance with all covenants contained within all of its debt agreements. All the debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of June 30, 2018, there were no such cross defaults.

The repayment schedule for the Company’s borrowings is as follows:

Year Ending December 31,	2010 Senior Notes due 2020		2012 Senior Notes due 2022		2013 Senior Notes due 2024		2014 Senior Notes (5-year) due 2019		2014 Senior Notes (30-year) due 2044		2015 Senior Notes due 2027		2017 Term Loan Facility due 2020		2017 Floating Rate Senior Notes due 2018		2017 Senior Notes due 2021		2017 Notes due 2023		2017 Notes due 2028		2018 Notes due 2021		Commercial Paper		Total
2018 (after June 30,)	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	300.0	$	—	$	—	$	—	$	—	$	90.0	$	390.0
2019		—		—		—		450.0		—		—		—		—		—		—		—		—		—		450.0
2020		500.0		—		—		—		—		—		50.0		—		—		—		—		—		—		550.0
2021		—		—		—		—		—		—		—		—		500.0		—		—		300.0		—		800.0
2022		—		500.0		—		—		—		—		—		—		—		—		—		—		—		500.0
Thereafter		—		—		500.0		—		600.0		583.8		—		—		—		500.0		500.0		—		—		2,683.8
Total	$	500.0	$	500.0	$	500.0	$	450.0	$	600.0	$	583.8	$	50.0	$	300.0	$	500.0	$	500.0	$	500.0	$	300.0	$	90.0	$	5,373.8

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Interest expense, net

The following table summarizes the components of interest as presented in the consolidated statements of operations:

	Three Months Ended June  30,						Six Months Ended June 30,
	2018			2017			2018			2017
Income	$	3.4		$	4.6		$	6.6		$	8.7
Expense on borrowings		(49.4	)		(46.4	)		(100.7	)		(91.1	)
UTPs and other tax related liabilities		(2.8	)		(3.4	)		(1.0	)		(5.5	)
Net periodic pension costs - interest component (1)		(4.9	)		(4.7	)		(9.6	)		(9.7	)
Capitalized		0.3			0.2			0.6			0.5
Total	$	(53.4	)	$	(49.7	)	$	(104.1	)	$	(97.1	)

⁽¹⁾ The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in other non-operating income. The service cost component continues to be reported as an operating expense.

The following table shows the cash paid for interest:

	Six Months Ended June  30,
	2018		2017
Interest paid	$	102.5	$	88.5

The Company’s debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for the 2010 Senior Notes, the 2014 Senior Notes (5-Year), the 2012 Senior Notes and the 2017 Senior Notes due 2021 which are recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge the fair value of the note.

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The fair value and carrying value of the Company’s debt (excluding Commercial Paper) as of June 30, 2018 and December 31, 2017 are as follows:

	June 30, 2018				December 31, 2017
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
2010 Senior Notes	$	491.0	$	522.9	$	497.8	$	537.9
2012 Senior Notes		493.8		516.8		495.5		535.6
2013 Senior Notes		496.1		525.6		495.8		547.8
2014 Senior Notes (5-Year)		444.7		448.9		446.5		452.8
2014 Senior Notes (30-Year)		597.7		675.5		597.6		722.4
2015 Senior Notes		580.5		601.9		596.8		617.7
2.75% 2017 Senior Notes, due 2021		496.0		488.6		495.5		500.0
2017 Floating Rate Senior Notes		299.9		300.1		299.5		300.2
2.65% 2017 Senior Notes, due 2023		495.8		478.7		495.4		494.8
3.25% 2017 Senior Notes, due 2028		491.2		472.2		490.9		493.6
2017 Term Loan Facility, due 2020		49.5		49.5		499.3		499.3
3.25% 2018 Senior Notes, due 2021		297.9		299.5		—		—
Total	$	5,234.1	$	5,380.2	$	5,410.6	$	5,702.1

The fair value of the Company’s long-term debt is estimated based on quoted market prices for similar instruments. Accordingly, the inputs used to estimate the fair value of the Company’s long-term debt are classified as Level 2 inputs within the fair value hierarchy.

NOTE 16. CONTINGENCIES

Given the nature of their activities, Moody’s and its subsidiaries are subject to legal and tax proceedings, governmental, regulatory and legislative investigations, subpoenas and other inquiries, and claims and litigation by governmental and private parties that are based on ratings assigned by MIS or that are otherwise incidental to the Company’s business. Moody’s and MIS also are subject to periodic reviews, inspections, examinations and investigations by regulators in the U.S. and other jurisdictions, any of which may result in claims, legal proceedings, assessments, fines, penalties or restrictions on business activities. Moody’s also is subject to ongoing tax audits as addressed in Note 5 to the financial statements.

Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, the Company records liabilities in the consolidated financial statements when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In instances when a loss is reasonably possible but uncertainties exist related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if material. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. Moody’s also discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate.

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In view of the inherent difficulty of assessing the potential outcome of legal proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation and similar matters and contingencies, particularly when the claimants seek large or indeterminate damages or assert novel legal theories or the matters involve a large number of parties, the Company often cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also may be unable to predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition and to accrue for and disclose such matters as and when required. However, because such matters are inherently unpredictable and unfavorable developments or resolutions can occur, the ultimate outcome of such matters, including the amount of any loss, may differ from those estimates.

NOTE 17. SEGMENT INFORMATION

The Company is organized into two operating segments: MIS and MA and accordingly, the Company reports in two reportable segments: MIS and MA.

The MIS segment consists of five LOBs. The CFG, SFG, FIG and PPIF LOBs generate revenue principally from fees for the assignment and ongoing monitoring of credit ratings on debt obligations and the entities that issue such obligations in markets worldwide. The MIS Other LOB primarily consists of financial instruments pricing services in the Asia-Pacific region as well as ICRA non-ratings revenue.

The MA segment develops a wide range of products and services that support the risk management activities of institutional participants in global financial markets. The MA segment consists of three LOBs—RD&A, ERS and PS.

In August 2017, a subsidiary of the Company acquired Yellow Maple I B.V., an indirect parent of Bureau van Dijk. Bureau van Dijk is part of the MA reportable segment and its revenue is included in the RD&A LOB. Refer to Note 8 for further discussion on the acquisition.

Revenue for MIS and expenses for MA include an intersegment royalty charged to MA for the rights to use and distribute content, data and products developed by MIS. The royalty rate charged by MIS approximates the fair value of the aforementioned content, data and products and is generally based on comparable market transactions. Also, 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. These fees charged by MA are generally equal to the costs incurred by MA to produce these products and services. Additionally, overhead costs and corporate expenses of the Company that exclusively benefit only one segment are fully charged to that segment. Overhead costs and corporate expenses of the Company that benefit both segments are allocated to each segment based on a revenue-split methodology. Accordingly, a reportable segment’s share of these costs will increase as its proportion of revenue relative to Moody’s total revenue increases. Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and information technology. “Eliminations” in the table below represent intersegment revenue/expense. Moody’s does not report the Company’s assets by reportable segment, as this metric is not used by the chief operating decision maker to allocate resources to the segments. Consequently, it is not practical to show assets by reportable segment.

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Financial Information by Segment

The table below shows revenue, Adjusted Operating Income and operating income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Refer to Note 3 for further details on the components of the Company’s revenue.

	Three Months Ended June 30,
	2018									2017
	MIS		MA		Eliminations			Consolidated		MIS		MA		Eliminations			Consolidated*
Revenue	$	782.9	$	425.2	$	(33.0	)	$	1,175.1	$	713.7	$	317.6	$	(30.8	)	$	1,000.5
Operating, SG&A		303.6		320.1		(33.0	)		590.7		289.7		242.0		(30.8	)		500.9
Adjusted Operating Income		479.3		105.1		—			584.4		424.0		75.6		—			499.6
Less:
Depreciation and amortization		16.7		31.7		—			48.4		18.9		14.0		—			32.9
Acquisition-Related Expenses		—		2.0		—			2.0		—		6.6		—			6.6
Operating income	$	462.6	$	71.4	$	—		$	534.0	$	405.1	$	55.0	$	—		$	460.1
	Six Months Ended June 30,
	2018									2017
	MIS		MA		Eliminations			Consolidated		MIS		MA		Eliminations			Consolidated*
Revenue	$	1,532.6	$	837.0	$	(67.8	)	$	2,301.8	$	1,407.9	$	628.3	$	(60.5	)	$	1,975.7
Operating, SG&A		614.0		630.5		(67.8	)		1,176.7		575.9		481.5		(60.5	)		996.9
Adjusted Operating Income		918.6		206.5		—			1,125.1		832.0		146.8		—			978.8
Less:
Depreciation and amortization		33.5		64.0		—			97.5		37.8		27.6		—			65.4
Acquisition-Related Expenses		—		2.8		—			2.8		—		6.6		—			6.6
Operating income	$	885.1	$	139.7	$	—		$	1,024.8	$	794.2	$	112.6	$	—		$	906.8

* Pursuant to the adoption of a new accounting standard relating to pension accounting as more fully discussed in Note 1, only the service cost component of net periodic pension expense will be classified within operating and SG&A expenses with the remaining components being classified as non-operating expenses. Prior period segment results have been restated to reflect this reclassification. Accordingly, operating and SG&A expenses for MIS and MA for the three months ended June 30, 2017 were reduced by $1.7 million and $0.9 million. For the six months ended June 30, 2017 operating and SG&A expenses for MIS and MA were reduced by $3.8 million and $2.1 million, respectively.

CONSOLIDATED REVENUE INFORMATION BY GEOGRAPHIC AREA

Consolidated Revenue Information by Geographic Area:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
United States	$	625.4	$	567.8	$	1,223.1	$	1,145.6
International:
EMEA		356.1		252.0		703.4		488.3
Asia-Pacific		123.7		118.0		243.9		217.4
Americas		69.9		62.7		131.4		124.4
Total International		549.7		432.7		1,078.7		830.1
Total	$	1,175.1	$	1,000.5	$	2,301.8	$	1,975.7

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NOTE 18. RECENTLY ISSUED ACCOUNTING STANDARDS

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” requiring lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows will depend on classification as either a finance or operating lease. During July 2018, the FASB issued additional updates to the new lease accounting standard. ASU No. 2018-10, “Codification Improvements to Topic 842, Leases” clarifies certain aspects of the new lease accounting standard. In addition, ASU No. 2018-11, “Leases (Topic 842), Targeted Improvements” provides companies with the option to apply the provisions of the new lease accounting standard on the date of adoption (effective date of January 1, 2019 for Moody’s), and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, without adjusting the comparative periods presented as initially required. The Company is currently evaluating the impact of these ASUs on the Company’s financial statements and believes that the most notable impact to its financial statements upon the adoption of the new lease accounting standard will be the recognition of a material right-of-use asset and lease liability for its real estate leases.

At June 30, 2018, the Company is progressing in its assessment and documentation of key judgmental areas relating to the adoption of the new lease accounting standard and the accumulation and evaluation of all necessary information required to properly apply the new guidance. Additionally, the Company is in the process of implementing a software solution to support the accounting set forth in the new standard and is also in the process of assessing the impact that the new standard will have on its processes and internal controls.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. The amendments in this ASU require the use of an “expected credit loss” impairment model for most financial assets reported at amortized cost which will require entities to estimate expected credit losses over the lifetime of the instrument. This may result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, an allowance for credit losses will be recognized as a contra account to the amortized cost carrying value of the asset rather than a direct reduction to the carrying value, with changes in the allowance impacting earnings. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted in annual and interim reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company is currently evaluating the impact of this ASU on its financial statements. Currently, the Company believes that the most notable impact of this ASU will relate to its processes around the assessment of the adequacy of its allowance for doubtful accounts on accounts receivable.

In February 2018, FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. Under current GAAP, adjustments to deferred tax assets and liabilities related to a change in tax laws or rates are included in income from continuing operations, even in situations where the related items were originally recognized in OCI (commonly referred to as a “stranded tax effect”). The provisions of this ASU permit the reclassification of the stranded tax effect related to the Tax Act from AOCI to retained earnings. This ASU is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this ASU is to be applied either in the period of adoption or retrospectively to each period in which the effect of the Tax Act were recognized. The Company is currently in the process of quantifying the amount of the reclassification from AOCI to retained earnings relating to the aforementioned stranded tax effect of the Tax Act.

In June 2018, the FASB issued ASU No. 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that ASC Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The ASU is effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company does not expect that the adoption of this ASU will have a significant impact on the Company’s consolidated financial statements.

NOTE 19. SUBSEQUENT EVENT

On July 9, 2018, the Board approved the declaration of a quarterly dividend of $0.44 per share of Moody’s common stock, payable on September 10, 2018 to shareholders of record at the close of business on August 20, 2018.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion and analysis of financial condition and results of operations should be read in conjunction with the Moody’s Corporation condensed consolidated financial statements and notes thereto included elsewhere in this quarterly report on Form 10-Q.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains Forward-Looking Statements. See “Forward-Looking Statements” commencing on page 81 for a discussion of uncertainties, risks and other factors associated with these statements.

The Company

Moody’s is a provider of (i) credit ratings; (ii) credit, capital markets and economic research, data and analytical tools; (iii) software solutions that support financial risk management activities; (iv) quantitatively derived credit scores; (v) financial services training and certification services; (vi) offshore financial research and analytical services; and (vii) company information and business intelligence products. Moody’s reports in two reportable segments: MIS and MA.

MIS, the credit rating agency, publishes credit ratings on a wide range of debt obligations and the entities that issue such obligations in markets worldwide. Revenue is primarily derived from the originators and issuers of such transactions who use MIS ratings in the distribution of their debt issues to investors. Additionally, MIS earns revenue from certain non-ratings-related operations which consist primarily of financial instruments pricing services in the Asia-Pacific region as well as revenue from ICRA’s non-ratings operations. The revenue from these operations is included in the MIS Other LOB and is not material to the results of the MIS segment.

The MA segment develops a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets. Within its RD&A business, MA distributes research and data developed by MIS as part of its ratings process, including in-depth research on major debt issuers, industry studies and commentary on topical credit-related events. The RD&A business also produces economic research and data and analytical tools such as quantitative credit risk scores as well as business intelligence and company information products. Within its ERS business, MA provides software solutions as well as related risk management services. The PS business provides offshore research and analytical services and financial training and certification programs.

Critical Accounting Estimates

Moody’s discussion and analysis of its financial condition and results of operations are based on the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires Moody’s to make estimates and judgments that affect reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the dates of the financial statements and revenue and expenses during the reporting periods. These estimates are based on historical experience and on other assumptions that are believed to be reasonable under the circumstances. On an ongoing basis, Moody’s evaluates its estimates, including those related to revenue recognition, accounts receivable allowances, contingencies, restructuring, goodwill and acquired intangible assets, pension and other retirement benefits, stock-based compensation, and income taxes. Actual results may differ from these estimates under different assumptions or conditions. Item 7, MD&A, in the Company’s annual report on Form 10-K for the year ended December 31, 2017, includes descriptions of some of the judgments that Moody’s makes in applying its accounting estimates in these areas. Since the date of the annual report on Form 10-K, there have been no material changes to the Company’s critical accounting estimates other than certain updates reported in the Company’s Form 10-Q for the three months ended March 31, 2018 relating to the critical accounting estimate disclosures for revenue recognition due to the adoption of the New Revenue Accounting Standard and goodwill and other acquired intangible assets pursuant to a reallocation of goodwill among certain of the Company’s reporting units resulting from the Bureau van Dijk acquisition.

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Reportable Segments

The Company is organized into two reportable segments at June 30, 2018: MIS and MA, which are more fully described in the section entitled “The Company” above.

The following is a discussion of the results of operations of the Company and its reportable segments. Total MIS revenue and total MA expenses include the intersegment royalty revenue for MIS and expense charged to MA for the rights to use and distribute content, data and products developed by MIS. The royalty rate charged by MIS approximates the fair value of the aforementioned content, data and products developed by MIS. Total MA revenue and total MIS expenses include intersegment fees charged to MIS from MA for the use of certain MA products and services in MIS’s ratings process. These fees charged by MA are generally equal to the costs incurred by MA to provide these products and services. Overhead charges and corporate expenses that exclusively benefit one segment are fully charged to that segment. Additionally, overhead costs and corporate expenses of the Company that benefit both segments are generally allocated to each segment based on a revenue-split methodology. Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and information technology.

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RESULTS OF OPERATIONS

Three months ended June 30, 2018 compared with three months ended June 30, 2017

Executive Summary

• Moody’s completed the acquisition of Bureau van Dijk on August 10, 2017. Moody’s results of operations include Bureau van Dijk’s operating results beginning as of August 10, 2017.

• Moody’s revenue in the second quarter of 2018 totaled $1,175.1 million, an increase of $174.6 million, or 17%, compared to 2017 reflecting growth in both segments.

• MIS revenue was 10% higher compared to the prior year with the main drivers of the growth reflecting strength in bank loan issuance coupled with continued strength in CLO issuance. Partially offsetting these increases were declines in non-U.S. investment-grade corporate debt revenue.

• MA revenue grew 35% compared to the prior year reflecting growth across all LOBs and included approximately $80 million in revenue (net of an approximate $6 million reduction relating to a deferred revenue adjustment required as part of acquisition accounting as further described in Note 8 to the financial statements), or approximately 26 percentage points of the growth, from Bureau van Dijk.

• Total operating expenses excluding D&A increased $85.2 million, or 17% compared to 2017, primarily driven by approximately $47 million in Bureau van Dijk operating expenses, or nine percentage points of the growth, $15 million due to higher salaries and employee benefit costs relating to annual compensation increases and headcount growth, as well as higher legal accruals and the unfavorable impact of foreign exchange.

• D&A increased $15.5 million primarily due to amortization of intangible assets acquired as part of the Bureau van Dijk acquisition.

• Operating margin was 45.4% compared to 46.0% in the prior year. Adjusted Operating Margin was 49.7% compared to 49.9% in the prior year period.

• The change in total non-operating (expense) income, net compared to the prior year is primarily due to the $41.2 million Purchase Price Hedge Gain in 2017.

• The ETR in the second quarter of 2018 was 23.7%, down from 32.1% for the prior-year period. The decline in the tax rate primarily reflects the impact of an enacted lower corporate tax rate in the U.S. pursuant to the Tax Act. Additionally, the ETR in 2018 includes an approximate $5 million benefit relating to Excess Tax Benefits on stock-based compensation compared to approximately $9 million in 2017.

• Diluted EPS of $1.94 increased $0.33 compared to 2017. Adjusted Diluted EPS of $2.04 increased $0.49 (refer to the section entitled “Non-GAAP Financial Measures” of this MD&A for items excluded in the derivation of Adjusted EPS).

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Moody’s Corporation

	Three Months Ended June 30,						% Change Favorable (Unfavorable)
	2018			2017
Revenue:
United States	$	625.4		$	567.8			10	%
International:
EMEA		356.1			252.0			41	%
Asia-Pacific		123.7			118.0			5	%
Americas		69.9			62.7			11	%
Total International		549.7			432.7			27	%
Total		1,175.1			1,000.5			17	%
Expenses:
Operating		320.2			284.8			(12	%)
SG&A		270.5			216.1			(25	%)
Depreciation and amortization		48.4			32.9			(47	%)
Acquisition-Related Expenses		2.0			6.6			70	%
Total		641.1			540.4			(19	%)
Operating income	$	534.0		$	460.1			16	%
Adjusted Operating Income (1)	$	584.4		$	499.6			17	%
Interest expense, net	$	(53.4	)	$	(49.7	)		(7	%)
Other non-operating income, net		14.9			10.4			43	%
Purchase Price Hedge Gain		—			41.2			NM
Non-operating (expense) income, net		(38.5	)		1.9			NM
Net income attributable to Moody’s	$	376.2		$	312.2			20	%
Diluted weighted average shares outstanding		194.4			193.8			—
Diluted EPS attributable to Moody’s common shareholders	$	1.94		$	1.61			20	%
Adjusted Diluted EPS (1)	$	2.04		$	1.55			32	%
Operating margin		45.4	%		46.0	%
Adjusted Operating Margin (1)		49.7	%		49.9	%

⁽¹⁾  Adjusted Operating Income, Adjusted Operating Margin and Adjusted Diluted EPS are non-GAAP financial measures. Refer to the section entitled “Non-GAAP Financial Measures” of this Management Discussion and Analysis for further information regarding these measures.

The table below shows Moody’s global staffing by geographic area:

	June 30,					% Change
	2018			2017
United States		3,594			3,404		6	%
International		8,682			7,214		20	%
Total		12,276	*		10,618		16	%
* Includes approximately 900 employees from the acquisition of Bureau van Djik

Global revenue of $1,175.1 million in the second quarter of 2018 increased $174.6 million, or 17%, compared to 2017 reflecting growth in both MIS and MA.

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Transaction revenue accounted for 48% of global MCO revenue in the second quarter of 2018 compared to 51% in the prior year.

U.S. revenue of $625.4 million in the second quarter of 2018 increased $57.6 million compared to the prior year, reflecting growth in both MIS and MA.

Non-U.S. revenue of $549.7 million increased $117.0 million compared to the second quarter of 2017 reflecting growth across all regions in both reportable segments, and included approximately $70 million in revenue from Bureau van Dijk.

Operating expenses were $320.2 million in the second quarter of 2018, or 12% higher compared to 2017, primarily due to approximately $25 million of Bureau van Dijk expenses and approximately $10 million in higher salaries and employee benefit expense which includes the impact of annual compensation increases and headcount growth.

SG&A expenses of $270.5 million in the second quarter of 2018 increased $54.4 million from the prior year period reflecting approximately $22 million of Bureau van Dijk expenses and an approximate $10 million increase in salaries and employee benefit expenses which includes the impact of annual compensation increases. Additionally, the increase reflected the unfavorable impact of foreign exchange translation and higher legal accruals.

D&A increased $15.5 million primarily due to amortization of intangible assets acquired as part of the Bureau van Dijk acquisition.

Operating income of $534.0 million in the second quarter of 2018 increased $73.9 million compared to 2017, resulting in an operating margin of 45.4%, compared to 46.0% in the prior year. Adjusted Operating Income of $584.4 million in the second quarter of 2018 increased $84.8 million compared to 2017, resulting in an Adjusted Operating Margin of 49.7% compared to 49.9% in the prior year period.

Interest expense, net in the second quarter of 2018 was ($53.4) million, a $3.7 million increase in expense compared to 2017 due to interest and fees on additional debt issued in 2017 to fund the acquisition of Bureau van Dijk and the 2018 Senior Notes issued in the second quarter of 2018, all of which are more fully discussed in Note 15 to the condensed consolidated financial statements. Refer to the section entitled “Liquidity and Capital Resources” of this MD&A for further discussion regarding cash flows relating to the Company’s indebtedness. These increases were partially offset by benefits realized from cross-currency swaps executed in the second quarter of 2018, which are more fully discussed in Note 9 to the financial statements.

Other non-operating income, net was $14.9 million in the second quarter of 2018, a $4.5 million increase compared to 2017 which included FX gains of approximately $6 million in 2018 compared to FX gains of approximately $4 million in the prior year.

The Purchase Price Hedge Gain in 2017 for $41.2 million reflected unrealized gains on FX collars executed by the Company to economically hedge the euro denominated purchase price of the Bureau van Dijk acquisition.

The ETR of 23.7% in the second quarter of 2018 was 840BPS lower than the second quarter of 2017 reflecting a lower enacted corporate tax rate in the U.S. pursuant to the Tax Act. Additionally, the second quarter of 2018 ETR includes an approximate $5 million benefit relating to Excess Tax Benefits on stock-based compensation compared to approximately $9 million in the second quarter of 2017.

Diluted EPS of $1.94 in the second quarter of 2018 increased $0.33 from 2017. Excluding Acquisition-Related Amortization and Acquisition-Related Expenses in both 2018 and 2017 and the Purchase Price Hedge Gain in 2017, Adjusted Diluted EPS of $2.04 in 2018 increased $0.49. Diluted EPS in 2018 and 2017 included $0.02 and $0.05, respectively, relating to Excess Tax Benefits on stock-based compensation.

63

Segment Results

Moody’s Investors Service

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

	Three Months Ended June 30,						% Change Favorable (Unfavorable)
	2018			2017
Revenue:
Corporate finance (CFG)	$	377.6		$	355.8			6	%
Structured finance (SFG)		141.6			119.2			19	%
Financial institutions (FIG)		120.6			102.4			18	%
Public, project and infrastructure finance (PPIF)		108.1			104.7			3	%
Total ratings revenue		747.9			682.1			10	%
MIS Other		4.4			4.6			(4	%)
Total external revenue		752.3			686.7			10	%
Intersegment royalty		30.6			27.0			13	%
Total		782.9			713.7			10	%
Expenses:
Operating and SG&A (external)		301.2			285.9			(5	%)
Operating and SG&A (intersegment)		2.4			3.8			37	%
Adjusted Operating Income		479.3			424.0			13	%
Depreciation and amortization		16.7			18.9			12	%
Operating income	$	462.6		$	405.1			14	%
Adjusted Operating Margin		61.2	%		59.4	%
Operating margin		59.1	%		56.8	%

The following is a discussion of external MIS revenue and operating expenses:

Global MIS revenue of $752.3 million in the second quarter of 2018 increased 10% compared to 2017, reflecting growth across all ratings LOBs. Also contributing to the growth was the favorable impact of changes in the mix of fee type and pricing increases in all LOBs.

Transaction revenue for MIS was 66% in the second quarter of 2018 compared to 65% in the second quarter of 2017.

In the U.S., revenue was $451.2 million in the second quarter of 2018, an increase of $38.8 million compared to 2017 reflecting growth in CFG, SFG and FIG, partially offset by declines in PPIF.

Non-U.S. revenue was $301.1 million in the second quarter of 2018, an increase of $26.8 million, or 10%, compared to 2017 reflecting strong growth in all ratings LOBs excluding CFG, where revenue was in line with the prior year.

64

Global CFG revenue of $377.6 million in the second quarter of 2018 increased 6% compared to 2017 reflecting higher bank loan revenue in the U.S. and EMEA resulting from increased M&A financing activity and strong investor demand for floating rate debt instruments. Additionally, the increase reflects growth in new ratings mandates, benefits from changes in the mix of fee type and pricing increases, as well as growth in recurring revenue resulting from an increase in monitored credits. These increases were partially offset by a decline in investment-grade revenue across all regions primarily due to rising benchmark interest rates in the U.S. and a less favorable issuance mix compared to the prior year in this sector. Transaction revenue represented 73% and 74% of total CFG revenue in the second quarter of 2018 and 2017, respectively. In the U.S., revenue was $242.3 million, $21.5 million higher than the prior year. Internationally, revenue of $135.3 million was flat compared to the prior year.

Global SFG revenue of $141.6 million in the second quarter of 2018 increased $22.4 million, or 19%, compared to 2017. Revenue in the U.S. of $93.3 million increased $11.7 million over 2017 primarily due to elevated new CLO formation associated with an increase in the supply of collateral and strong investor demand. Non-U.S. revenue in the second quarter of 2018 of $48.3 million increased $10.7 million compared to the prior year primarily reflecting growth across most asset classes in the EMEA region, most notably in structured credit which has benefited from increased bank loan issuance in the region. Transaction revenue was 67% of total SFG revenue in the second quarter of 2018 compared to 63% in the prior year.

Global FIG revenue of $120.6 million in the second quarter of 2018 increased 18% compared to 2017 primarily due to growth in the insurance sector reflecting refinancing activity and issuance to fund M&A activity coupled with benefits from changes in the mix of fee type and pricing increases. Additionally, the growth reflects higher banking revenue in the U.S. and Asia-Pacific. In the U.S., revenue was $54.4 million, $10.5 million higher compared to 2017. Internationally, revenue was $66.2 million, or $7.7 million higher compared to 2017. Transaction revenue was 47% of total FIG revenue in the second quarter of 2018 compared to 43% in the same period in 2017.

Global PPIF revenue was $108.1 million in the second quarter of 2018, an increase of $3.4 million, or 3%, compared to 2017. Non-U.S. PPIF revenue was $47.0 million and increased $8.3 million, or 21% compared to 2017 primarily reflecting a favorable issuance mix in EMEA public and infrastructure finance coupled with strong rated issuance volume growth in infrastructure finance in Latin America. PPIF revenue in the U.S. of $61.1 million was down $4.9 million compared to 2017 primarily due to lower PFG rated issuance volumes following the enactment of the Tax Act, which disallowed certain tax exemptions for advance refunding transactions. Transaction revenue was 64% in both second quarter of 2018 and 2017.

Operating and SG&A expenses in the second quarter of 2018 increased $15.3 million compared to 2017 primarily due to higher salaries and employee benefits costs reflecting annual compensation increases and headcount growth partially offset by lower incentive compensation accruals. Additionally, the increase reflects the unfavorable impact of foreign currency translation and higher legal accruals.

Adjusted Operating Income and operating income in the second quarter of 2018, which includes intersegment royalty revenue and intersegment expenses, were $479.3 million and $462.6 million, respectively, up 13% and 14%, respectively, compared to 2017. Adjusted Operating Margin was 61.2%, or 180BPS higher than 2017. Operating margin was 59.1%, or 230BPS higher compared to the second quarter of 2017.

65

Moody’s Analytics

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

	Three months ended June 30,						% Change Favorable (Unfavorable)
	2018			2017
Revenue:
Research, data and analytics (RD&A)	$	279.9		$	180.9			55	%
Enterprise risk solutions (ERS)		105.5			97.3			8	%
Professional services (PS)		37.4			35.6			5	%
Total external revenue		422.8			313.8			35	%
Intersegment revenue		2.4			3.8			(37	%)
Total MA Revenue		425.2			317.6			34	%
Expenses:
Operating and SG&A (external)		289.5			215.0			(35	%)
Operating and SG&A (intersegment)		30.6			27.0			(13	%)
Adjusted Operating Income		105.1			75.6			39	%
Acquisition-Related Expenses		2.0			6.6			70	%
Depreciation and amortization		31.7			14.0			(126	%)
Operating income	$	71.4		$	55.0			30	%
Adjusted Operating Margin		24.7	%		23.8	%
Operating margin		16.8	%		17.3	%

The following is a discussion of external MA revenue and operating expenses:

Global MA revenue increased $109.0 million, or 35%, compared to the second quarter of 2017 reflecting growth in all LOBs. The most notable growth was in RD&A, which included approximately $80 million in revenue (net of an approximate $6 million reduction relating to a deferred revenue adjustment required as part of acquisition accounting as further described in Note 8 to the financial statements), or 26 percentage points of the growth, from the Bureau van Dijk acquisition. Additionally, the growth over the prior year reflects benefits from higher fees within MA’s recurring revenue base due to enhanced content and continued alignment of usage and licensing parameters. Recurring revenue comprised 84% and 80% of total MA revenue in the second quarter of 2018 and 2017, respectively. Favorable changes in FX rates contributed two percentage points to MA revenue growth in the second quarter of 2018.

In the U.S., revenue of $174.2 million in the second quarter of 2018 increased $18.8 million, and primarily reflected growth in RD&A.

Non-U.S. revenue of $248.6 million in the second quarter of 2018 was $90.2 million higher than in 2017 reflecting growth in RD&A (which includes approximately $70 million in non-U.S. revenue from Bureau van Dijk) coupled with growth in ERS.

Global RD&A revenue of $279.9 million, which comprised 66% of total external MA revenue in the second quarter of 2018, increased $99.0 million, or 55%, over the prior year period. U.S. revenue of $118.2 million and non-U.S. revenue of $161.7 million increased 16% and 104%, respectively, over the prior year, predominantly due to the impact of the aforementioned Bureau van Dijk acquisition. RD&A revenue included approximately $80 million in revenue, or 44 percentage points of the growth, from the Bureau van Dijk acquisition (net of an approximate $6 million reduction relating to a deferred revenue adjustment required as part of acquisition accounting as further described in Note 8 to the financial statements). RD&A revenue growth also reflects strong results in the credit research and rating data feeds product lines, where enhanced content and continued alignment of usage and licensing parameters have generated higher fees. Favorable changes in FX rates contributed two percentage points to RD&A revenue growth in the second quarter of 2018.

66

Global ERS revenue in the second quarter of 2018 of $105.5 million increased $8.2 million compared to 2017 driven by continued strong demand for subscription-based products, particularly in the risk analytics and insurance product verticals. These increases were partially offset by a revenue decline for perpetual software licenses. Additionally, the increase over prior year reflects benefits from pricing increases within ERS’s recurring revenue base. Revenue in ERS is subject to quarterly volatility resulting from the variable nature of project timing and the concentration of software implementation and license revenue in a relatively small number of engagements. In the U.S., revenue of $42.6 million increased 5% compared to 2017. Non-U.S. revenue of $62.9 million increased 11% compared to the prior year.

Global PS revenue of $37.4 million in the second quarter of 2018 increased $1.8 million compared to 2017 primarily reflecting growth in the non-U.S. analytical and research services business which benefited from strong new sales and improved customer retention. In the U.S., revenue of $13.4 million was up 1% compared to the prior year. Non-U.S. revenue of $24.0 million increased 8% compared to the prior year.

Operating and SG&A expenses in the second quarter of 2018 increased $74.5 million compared to 2017. The expense growth includes approximately $47 million in Bureau van Dijk expenses coupled with higher compensation costs primarily reflecting annual salary increases and headcount growth.

Depreciation and amortization increased $17.7 million primarily due to amortization of Bureau van Dijk’s intangible assets.

Additionally, there were $2.0 million in Acquisition-Related Expenses relating to the Bureau van Dijk acquisition.

Adjusted Operating Income was $105.1 million in the second quarter of 2018 and increased $29.5 million compared to the same period in 2017. Operating income of $71.4 million in the second quarter of 2018 increased $16.4 million compared to the prior year. Adjusted Operating Margin for the second quarter of 2018 was 24.7%, compared to 23.8% in 2017. Operating margin was 16.8% compared to 17.3% in the prior year and included the aforementioned Acquisition-Related Expenses and amortization of Bureau van Dijk’s intangible assets. Adjusted Operating Income and operating income both include intersegment revenue and expense.

67

RESULTS OF OPERATIONS

Six months ended June 30, 2018 compared with six months ended June 30, 2017

Executive Summary

• Moody’s completed the acquisition of Bureau van Dijk on August 10, 2017. Moody’s results of operations include Bureau van Dijk’s operating results beginning as of August 10, 2017.

• Moody’s revenue in the first six months of 2018 totaled $2,301.8 million, an increase of $326.1 million, or 17%, compared to 2017 reflecting growth in both segments.

• MIS revenue was 9% higher compared to the prior year with the main driver of the increase reflecting strong growth in bank loans coupled with robust structured credit activity, primarily in the CLO asset class. Additionally, the growth reflected benefits from changes in the mix of fee type and pricing increases coupled with favorable changes in FX rates.

• MA revenue grew 34% compared to the prior year reflecting growth across all LOBs and included approximately $154 million in revenue (net of an approximate $16 million reduction relating to a deferred revenue adjustment required as part of acquisition accounting as further described in Note 8 to the financial statements), or approximately 25 percentage points of the growth, from Bureau van Dijk. Favorable changes in FX rates also contributed to the growth.

• Total operating expenses excluding D&A increased $176.0 million, or 18% compared to 2017, primarily driven by approximately $90 million in Bureau van Dijk operating expenses, or nine percentage points of the growth, approximately $27 million due to higher salaries and employee benefit costs relating to annual compensation increases and headcount growth, as well as the unfavorable impact of foreign exchange and higher legal accruals.

• D&A increased $32.1 million primarily due to amortization of intangible assets acquired as part of the Bureau van Dijk acquisition.

• Operating margin was 44.5% in the first half of 2018, compared to 45.9% in the prior year. Adjusted Operating Margin was 48.9% in the first half of 2018 compared to 49.5% in the prior year.

• The change in total non-operating (expense) income, net compared to the prior year is primarily due to the $59.7 million CCXI Gain and $41.2 million Purchase Price Hedge Gain in 2017.

• The ETR in the first half of 2018 was 19.4%, down from 27.8% for the prior-year period. The decline in the tax rate primarily reflects the impact of an enacted lower corporate tax rate in the U.S. pursuant to the Tax Act as well as net uncertain tax position benefits mainly resulting from statute of limitations lapses. Additionally, the ETR in 2018 includes an approximate $36 million benefit relating to Excess Tax Benefits on stock-based compensation compared to approximately $28 million in 2017.

• Diluted EPS of $3.85 increased $0.46 compared to 2017, which included both the $0.31 CCXI Gain and the $0.13 Purchase Price Hedge Gain. Adjusted Diluted EPS of $4.06 in the first half of 2018 increased $1.01 (refer to the section entitled “Non-GAAP Financial Measures” of this MD&A for items excluded in the derivation of Adjusted EPS).

68

Moody’s Corporation

	Six months ended June 30,						% Change Favorable (Unfavorable)
	2018			2017
Revenue:
United States	$	1,223.1		$	1,145.6			7	%
International:
EMEA		703.4			488.3			44	%
Asia-Pacific		243.9			217.4			12	%
Americas		131.4			124.4			6	%
Total International		1,078.7			830.1			30	%
Total		2,301.8			1,975.7			17	%
Expenses:
Operating		635.1			560.1			(13	%)
SG&A		541.6			436.8			(24	%)
Depreciation and amortization		97.5			65.4			(49	%)
Acquisition-Related Expenses		2.8			6.6			58	%
Total		1,277.0			1,068.9			(19	%)
Operating income	$	1,024.8		$	906.8			13	%
Adjusted Operating Income (1)	$	1,125.1		$	978.8			15	%
Interest expense, net	$	(104.1	)	$	(97.1	)		(7	%)
Other non-operating income, net		15.9			2.7			NM
Purchase Price Hedge Gain		—			41.2			NM
CCXI Gain		—			59.7			NM
Non-operating (expense) income, net	$	(88.2	)	$	6.5			NM
Net income attributable to Moody’s	$	749.1		$	657.8			14	%
Diluted weighted average shares outstanding		194.5			194.1			—
Diluted EPS attributable to Moody’s common shareholders	$	3.85		$	3.39			14	%
Adjusted Diluted EPS (1)	$	4.06		$	3.05			33	%
Operating margin		44.5	%		45.9	%
Adjusted Operating Margin (1)		48.9	%		49.5	%

⁽¹⁾  Adjusted Operating Income, Adjusted Operating Margin and Adjusted Diluted EPS attributable to Moody’s common shareholders are non-GAAP financial measures. Refer to the section entitled “Non-GAAP Financial Measures” of this Management Discussion and Analysis for further information regarding these measures.

Global revenue of $2,301.8 million in the first half of 2018 increased $326.1 million, or 17%, compared to 2017 and reflected growth in both MIS and MA.

Transaction revenue accounted for 47% of global MCO revenue in the first half of 2018 compared to 51% in the prior year.

U.S. revenue of $1,223.1 million in 2018 increased $77.5 million over the prior year, reflecting growth in both reportable segments.

Non-U.S. revenue of $1,078.7 million increased $248.6 million from 2017 reflecting growth in both reportable segments, and included approximately $135 million of revenue from Bureau van Dijk.

Operating expenses were $635.1 million in the first six months of 2018, up $75.0 million from 2017, primarily due to approximately $50 million of Bureau van Dijk expenses and an approximate $18 million increase in salaries and employee benefits expenses which includes the impact of annual compensation increases and headcount growth. Additionally, the growth over the prior year includes the negative impact of foreign exchange translation.

69

SG&A expenses of $541.6 million in the first six months of 2018 increased $104.8 million from the prior year period primarily due to approximately $40 million of Bureau van Dijk expenses and an approximate $22 million increase in salaries and employee benefit expenses which includes the impact of annual compensation increases. Additionally, the increase reflected the unfavorable impact of foreign exchange translation and higher legal accruals.

D&A increased $32.1 million primarily due to amortization of intangible assets acquired as part of the Bureau van Dijk acquisition.

Operating income of $1,024.8 million in the first half of 2018 increased $118.0 million compared to 2017 and resulted in an operating margin of 44.5%, compared to 45.9% in the prior year. Adjusted Operating Income of $1,125.1 million in 2018 increased $146.3 million compared to 2017, resulting in an Adjusted Operating Margin of 48.9% compared to 49.5% in the prior year.

Interest expense, net in the first six months of 2018 was ($104.1) million, a $7.0 million increase in expense compared to 2017 primarily due to interest and fees on additional debt issued in 2017 to fund the acquisition of Bureau van Dijk and the issuance of the 2018 Senior Notes in the second quarter of 2018, both of which are more fully discussed in Note 15 to the condensed consolidated financial statements. Refer to the section entitled “Liquidity and Capital Resources” of this MD&A for further discussion regarding cash flows relating to the Company’s indebtedness. This increase was partially offset by lower tax-related interest due to a statute of limitations lapse in the first half of 2018 relating to an international tax matter coupled with benefits from cross-currency swaps executed in the first half of 2018, which are more fully discussed in Note 9 to the financial statements. Additionally, interest expense in 2017 included approximately $7 million due to the Make Whole Amount on the prepayment of the Series 2007-1 Notes.

Other non-operating income, net was $15.9 million in the first six months of 2018, a $13.2 million increase compared to 2017 primarily reflecting FX losses of approximately $6 million in 2017 compared to immaterial gains in 2018 coupled with a reversal of accrued penalties resulting from statute of limitations lapses relating to UTPs.

Additionally, Moody’s recognized the $59.7 million CCXI Gain and the $41.2 million Purchase Price Hedge Gain in the first half of 2017.

The ETR of 19.4% in the first half of 2018 includes the impact of an enacted lower corporate tax rate in the U.S. pursuant to the Tax Act. Additionally, the first half of 2018 ETR includes an approximate $36 million benefit relating to Excess Tax Benefits on stock-based compensation as well as net uncertain tax position benefits pursuant to statute of limitations lapses. The ETR in the first half of 2017 of 27.8% reflected the non-taxable CCXI Gain and approximately $28 million in Excess Tax Benefits on stock-based compensation, partially offset by tax on the Purchase Price Hedge Gain which was taxed in a higher tax jurisdiction.

Diluted EPS of $3.85 increased $0.46 compared to 2017, which included the $0.31 CCXI Gain and $0.13 Purchase Price Hedge Gain. Excluding Acquisition-Related Amortization and Acquisition-Related Expenses in both 2018 and 2017 and the CCXI Gain and Purchase Price Hedge Gain in 2017, Adjusted Diluted EPS of $4.06 in the first half of 2018 increased $1.01 compared to the prior year. Diluted EPS in 2018 and 2017 included $0.18 and $0.15, respectively, relating to Excess Tax Benefits on stock-based compensation.

70

Segment Results

Moody’s Investors Service

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

	Six Months Ended June 30,						% Change Favorable (Unfavorable)
	2018			2017
Revenue:
Corporate finance (CFG)	$	755.3		$	708.6			7	%
Structured finance (SFG)		271.3			219.4			24	%
Financial institutions (FIG)		234.9			214.7			9	%
Public, project and infrastructure finance (PPIF)		201.3			202.8			(1	%)
Total ratings revenue		1,462.8			1,345.5			9	%
MIS Other		9.4			9.4			—
Total external revenue		1,472.2			1,354.9			9	%
Intersegment royalty		60.4			53.0			14	%
Total		1,532.6			1,407.9			9	%
Expenses:
Operating and SG&A (external)		606.6			568.4			(7	%)
Operating and SG&A (intersegment)		7.4			7.5			1	%
Adjusted Operating Income		918.6			832.0			10	%
Depreciation and amortization		33.5			37.8			11	%
Operating income	$	885.1		$	794.2			11	%
Adjusted Operating Margin		59.9	%		59.1	%
Operating margin		57.8	%		56.4	%

The following is a discussion of external MIS revenue and operating expenses:

Global MIS revenue of $1,472.2 million in the first half of 2018 was up 9% compared to 2017, most notably from growth in the SFG and CFG LOBs. Also contributing to the growth was the favorable impact of changes in the mix of fee type and pricing increases in all LOBs. Favorable changes in FX rates contributed two percentage points to the MIS growth in the first half of 2018.

Transaction revenue for MIS was 65% in the first half of 2018, consistent with the first half of 2017.

In the U.S., revenue was $884.6 million in the first half of 2018, an increase of $49.7 million or 6%, compared to 2017 reflecting growth in SFG, CFG and FIG being partially offset by modest declines in PPIF.

Non-U.S. revenue was $587.6 million in the first half of 2018, an increase of $67.6 million or 13%, compared to 2017 reflecting growth across all ratings LOBs.

71

Global CFG revenue of $755.3 million in the first half of 2018 was up 7% compared to 2017 reflecting higher bank loan revenue in the U.S. and EMEA resulting from M&A financing activity, strong investor demand for floating rate debt instruments and a favorable issuance mix. Additionally, the growth reflects changes in the mix of fee type and pricing increases across various other sectors within CFG and growth in new ratings mandates as well as growth in monitoring fees in all regions. These increases were partially offset by lower U.S. speculative-grade corporate debt and investment-grade corporate debt revenue in EMEA due to rising benchmark interest rates in the U.S. and a broader widening of credit spreads as well as a less favorable issuance mix compared to the prior year. Transaction revenue represented 73% and 74% of total CFG revenue in the first half of 2018 and 2017, respectively. In the U.S., revenue was $489.0 million, or 5% higher compared to the prior year. Internationally, revenue of $266.3 million increased 9% compared to the prior year. Favorable changes in FX rates contributed two percentage points to the CFG growth in the first half of 2018.

Global SFG revenue of $271.3 million in the first half of 2018 increased $51.9 million, or 24%, compared to 2017. In the U.S., revenue of $177.9 million increased $31.3 million over 2017 primarily due to continued strength in CLO issuance reflecting an increase in the supply of collateral and favorable market conditions which facilitated both new securitizations and ongoing refinancing activity. Additionally, the growth in the U.S. reflects higher CMBS activity compared to the first half of 2017 when issuance was suppressed by the introduction of risk-retention regulations. Non-U.S. revenue in the first half of 2018 of $93.4 million increased $20.6 million compared to the prior year primarily reflecting growth across most asset classes in the EMEA region, most notably in structured credit which has benefited from increased bank loan issuance. Transaction revenue was 66% of total SFG revenue in the first half of 2018 compared to 60% in the prior year. Favorable changes in FX rates contributed three percentage points to the SFG growth in the first half of 2018.

Global FIG revenue of $234.9 million in the first half of 2018 increased $20.2 million, or 9%, compared to 2017 primarily due to growth in the insurance sector reflecting refinancing activity and issuance to fund M&A activity as well as benefits from changes in the mix of fee type and pricing increases. Additionally, the growth reflects higher banking rated issuance volumes in EMEA. In the U.S., revenue of $102.9 million increased 9% compared to the prior year. Internationally, revenue was $132.0 million in the first half of 2018, up 10% compared to 2017. Transaction revenue was 45% of total FIG revenue in the first half of 2018, consistent with the same period in 2017. Favorable changes in FX rates contributed three percentage points to the FIG growth in the first half of 2018.

Global PPIF revenue was $201.3 million in the first half of 2018 and decreased 1% compared to 2017. In the U.S., revenue in the first half of 2018 was $114.5 million, a decrease of $14.5 million compared to 2017 primarily due to lower PFG rated issuance volumes following the enactment of the Tax Act, which disallowed certain tax exemptions for advance refunding transactions. These decreases were partially offset by benefits from changes in the mix of fee type and pricing increases. Outside the U.S., PPIF revenue was $86.8 million and increased $13.0 million compared to 2017 primarily reflecting a favorable issuance mix in EMEA infrastructure and sovereign finance coupled with strong rated issuance volume growth in infrastructure finance in Latin America. Transaction revenue was 62% in the first half of 2018, consistent with the first half of 2017. Favorable changes in FX rates contributed two percentage points to the PPIF growth in the first half of 2018.

Operating and SG&A expenses in the first half of 2018 increased $38.2 million compared to 2017 primarily due to $24 million of higher salaries and employee benefits costs reflecting annual compensation increases and headcount growth partially offset by lower incentive compensation accruals. Additionally, the increase reflects the unfavorable impact of foreign currency translation and higher legal accruals.

Adjusted Operating Income and operating income in the first half of 2018, which includes intersegment royalty revenue and intersegment expenses, were $918.6 million and $885.1 million, respectively, and increased $86.6 million and $90.9 million, respectively, compared to 2017. Adjusted Operating Margin was 59.9% or 80BPS higher than the prior year. Operating margin was 57.8% in the first half of 2018 compared to 56.4% in the prior year.

72

Moody’s Analytics

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

	Six Months Ended June 30,						% Change Favorable (Unfavorable)
	2018			2017
Revenue:
Research, data and analytics (RD&A)	$	549.1		$	356.3			54	%
Enterprise risk solutions (ERS)		205.6			193.2			6	%
Professional services (PS)		74.9			71.3			5	%
Total external revenue		829.6			620.8			34	%
Intersegment revenue		7.4			7.5			(1	%)
Total MA Revenue		837.0			628.3			33	%
Expenses:
Operating and SG&A (external)		570.1			428.5			(33	%)
Operating and SG&A (intersegment)		60.4			53.0			(14	%)
Adjusted Operating Income		206.5			146.8			41	%
Acquisition-Related Expenses		2.8			6.6			58	%
Depreciation and amortization		64.0			27.6			(132	%)
Operating income	$	139.7		$	112.6			24	%
Adjusted Operating Margin		24.7	%		23.4	%
Operating margin		16.7	%		17.9	%

The following is a discussion of external MA revenue and operating expenses:

Global MA revenue increased $208.8 million, or 34%, compared to the first half of 2017 primarily due to growth in RD&A which included approximately $154 million in revenue (net of an approximate $16 million reduction relating to a deferred revenue adjustment required as part of acquisition accounting as further described in Note 8 to the financial statements), or 25 percentage points of the growth, from the Bureau van Dijk acquisition. Additionally, the growth over the prior year reflects benefits from higher fees within MA’s recurring revenue base due to enhanced content and continued alignment of usage and licensing parameters. Recurring revenue comprised 85% and 79% of total MA revenue in the first half 2018 and 2017, respectively. Favorable changes in FX rates contributed three percentage points to MA revenue growth in the first half of 2018.

In the U.S., revenue of $338.5 million in the first half of 2018 increased $27.8 million, mainly reflecting growth in RD&A.

Non-U.S. revenue of $491.1 million in the first half of 2018 was $181.0 million higher than in 2017 primarily reflecting growth in RD&A, which included approximately $135 million in non-U.S. Bureau van Dijk revenue. Favorable changes in FX rates contributed six percentage points to international MA revenue growth in the first half of 2018.

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Global RD&A revenue of $549.1 million, which comprised 66% and 57% of total external MA revenue in the first half of 2018 and 2017, respectively, increased $192.8 million, or 54%, over the prior year period. U.S. revenue of $230.8 million and non-U.S. revenue of $318.3 million increased 14% and 108%, respectively, compared to 2017, predominantly due to the impact of the aforementioned Bureau van Dijk acquisition. RD&A revenue in the first half of 2018 included approximately $154 million in revenue, or 43 percentage points of the growth, from the Bureau van Dijk acquisition (net of an approximate $16 million reduction relating to a deferred revenue adjustment required as part of acquisition accounting as further described in Note 8 to the financial statements). RD&A revenue growth also reflects strong results in the credit research and rating data feeds product lines, where enhanced content and continued alignment of usage and licensing parameters have generated higher fees. Favorable changes in FX rates contributed three percentage points to RD&A revenue growth in the first half of 2018.

Global ERS revenue of $205.6 million in the first half of 2018 increased $12.4 million, or 6%, over 2017 primarily reflecting continued strong demand for subscription-based products, particularly in the risk analytics and insurance product verticals. These increases were partially offset by a decline in perpetual software licenses. Additionally, the increase over the prior year reflects benefits from pricing increases within ERS’s recurring revenue base. Revenue in ERS is subject to quarterly volatility resulting from the variable nature of project timing and the concentration of software implementation and license revenue in a relatively small number of engagements. In the U.S., revenue of $81.1 million increased 1% compared to the prior year. Non-U.S. revenue of $124.5 million increased 11% compared to the prior year. Favorable changes in FX rates contributed three percentage points to ERS revenue growth in the first half of 2018.

Global PS revenue of $74.9 million in the first half of 2018 increased $3.6 million compared to 2017 reflecting higher revenue from analytical and research services in EMEA, which benefited from strong new sales and improved customer retention. In the U.S., revenue in the first half of 2018 was $26.6 million, down 1% compared to 2017. International revenue was $48.3 million, up 9% compared to 2017 with roughly half of the growth due to favorable changes in FX rates.

Operating and SG&A expenses in the first half of 2018 increased $141.6 million compared to 2017. The expense growth includes approximately $90 million in Bureau van Dijk expenses coupled with higher compensation costs primarily reflecting annual salary increases and headcount growth.

Depreciation and amortization increased $36.4 million primarily due to the amortization of Bureau van Dijk’s intangible assets.

Adjusted Operating Income was $206.5 million in the first half of 2018 and increased $59.7 million compared to the same period in 2017. Operating income of $139.7 million in the first half of 2018 increased $27.1 million compared to the same period in 2017. Adjusted Operating Margin in 2018 was 24.7%, up 130BPS from 2017. Operating margin was 16.7% in 2018, down 120BPS from the prior year reflecting the aforementioned higher D&A primarily relating to Bureau van Dijk’s intangible assets. Adjusted Operating Income and operating income both include intersegment revenue and expense.

Liquidity and Capital Resources

Cash Flow

The Company is currently financing its operations, capital expenditures and share repurchases from cash flow from operating and financing activities. The following is a summary of the changes in the Company’s cash flows followed by a brief discussion of these changes:

	Six months ended June 30,						$ Change Favorable (Unfavorable)
	2018			2017
Net cash provided by (used in) operating activities	$	777.3		$	(40.6	)	$	817.9
Net cash (used in) provided by investing activities	$	(45.3	)	$	39.9		$	(85.2	)
Net cash (used in) provided by financing activities	$	(467.6	)	$	1,170.5		$	(1,638.1	)
Free Cash Flow*	$	739.4		$	(83.4	)	$	822.8

* Free Cash Flow is an adjusted financial measure. Refer to the section “Non-GAAP Financial Measures” of this MD&A for further information on this financial measure.

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Net cash provided by (used in) operating activities

Net cash flows from operating activities increased $817.9 million compared to the prior year primarily due to the approximate $864 million payment for the Settlement Charge in 2017 and higher operating income in the first half of 2018 partially offset by higher incentive compensation payouts in 2018 compared to 2017.

Net cash (used in) provided by investing activities

The $85.2 million increase in cash flows used in investing activities compared to 2017 primarily reflects higher net purchases of investments in the first half of 2018.

Net cash (used in) provided by financing activities

The $1,638.1 million increase in cash used in financing activities was primarily attributed to:

• Proceeds of $1.0 billion from notes issued to fund the acquisition of Bureau van Dijk and $0.8 billion issued in the first half of 2017 to fund the Settlement Charge partially offset by the early repayment of the 2007-1 Notes in 2017;

• net repayments of approximately $150 million in the first half of 2018 relating to the partial repayment of the Company’s 2017 Term Loan partially offset by the issuance of the 2018 Senior Notes;

• net repayments of $40 million relating to the Company’s CP Program in the first half of 2018.

Cash and short-term investments held in non-U.S. jurisdictions

The Company’s aggregate cash and cash equivalents and short-term investments of $1,415.7 million at June 30, 2018 consisted of approximately $1.1 billion located outside of the U.S. Approximately 30% of the Company’s aggregate cash and cash equivalents and short-term investments is denominated in euros and British pounds. The Company manages both its U.S. and international cash flow to maintain sufficient liquidity in all regions to effectively meet its operating needs.

Following the enactment of the Tax Act in the fourth quarter of 2017 and the recognition of the transition tax more fully described in Note 5 to the financial statements, the Company reversed its assertion relating to certain undistributed earnings which were previously deemed to be indefinitely reinvested in the Company’s non-U.S. operations for certain of its subsidiaries. Accordingly, the Company has commenced repatriating a portion of its non-U.S. cash in these subsidiaries and will continue to repatriate certain of its offshore cash in a manner that addresses compliance with local statutory requirements, sufficient offshore working capital and any other factors that may be relevant in certain jurisdictions. Notwithstanding the Tax Act, which generally eliminated federal income tax on future cash repatriation to the U.S., cash repatriation may be subject to state and local taxes or withholding or similar taxes.

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Indebtedness

At June 30, 2018, Moody’s had $5.3 billion of outstanding debt and approximately $910 million of additional borrowing capacity available under the Company’s CP program, which is backstopped by the 2015 Facility as more fully discussed in Note 15 to the consolidated financial statements. At June 30, 2018, the Company was in compliance with all covenants contained within all of the debt agreements. All of the Company’s long-term debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. At June 30, 2018, there were no such cross defaults.

In the second quarter of 2018, the Company issued $300 million aggregate principal amount of senior unsecured rate notes in a public offering, the terms of which are more fully discussed in Note 15, and repaid $450 million on the 2017 Term Loan. The Company remains committed to deleveraging its balance sheet following additional financing obtained in 2017 to partially fund the acquisition of Bureau van Dijk.

The repayment schedule for the Company’s borrowings outstanding at June 30, 2018 is as follows:

Year Ending December 31,	2010 Senior Notes due 2020		2012 Senior Notes due 2022		2013 Senior Notes due 2024		2014 Senior Notes (5-year) due 2019		2014 Senior Notes (30-year) due 2044		2015 Senior Notes due 2027		Term Loan Facility due 2020		2017 Floating Rate Senior Notes due 2018		2017 Senior Notes due 2021		2017 Notes due 2023		2017 Notes due 2028		2018 Notes due 2021		Commercial Paper		Total
2018 (after June 30,)	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	300.0	$	—	$	—	$	—	$	—	$	90.0	$	390.0
2019		—		—		—		450.0		—		—		—		—		—		—		—		—		—		450.0
2020		500.0		—		—		—		—		—		50.0		—		—		—		—		—		—		550.0
2021		—		—		—		—		—		—		—		—		500.0		—		—		300.0		—		800.0
2022		—		500.0		—		—		—		—		—		—		—		—		—		—		—		500.0
Thereafter		—		—		500.0		—		600.0		583.8		—		—		—		500.0		500.0		—		—		2,683.8
Total	$	500.0	$	500.0	$	500.0	$	450.0	$	600.0	$	583.8	$	50.0	$	300.0	$	500.0	$	500.0	$	500.0	$	300.0	$	90.0	$	5,373.8

Management may consider pursuing additional long-term financing when it is appropriate in light of cash requirements for operations, share repurchases and other strategic opportunities, which would result in higher financing costs.

Other Material Future Cash Requirements

The Company believes that it has the financial resources needed to meet its cash requirements and expects to have positive operating cash flow for the next twelve months. Cash requirements for periods beyond the next twelve months will depend, among other things, on the Company’s profitability and its ability to manage working capital requirements. The Company may also borrow from various sources.

The Company remains committed to using its strong cash flow to create value for shareholders by investing in growing areas of the business, reinvesting in ratings quality initiatives, making selective acquisitions, repurchasing stock and paying dividends, all in a manner consistent with maintaining sufficient liquidity after giving effect to any additional indebtedness that may be incurred.

In July 2018, the Board of Directors of the Company declared a quarterly dividend of $0.44 per share of Moody’s common stock, payable September 10, 2018 to shareholders of record at the close of business on August 20, 2018. The continued payment of dividends at this rate, or at all, is subject to the discretion of the Board. In December 2015, the Board authorized $1.0 billion of share repurchase authority, which had a remaining repurchase authority of approximately $446 million at June 30, 2018. Full-year 2018 total share repurchases are expected to be approximately $200 million, subject to available cash, market conditions and other ongoing capital allocation decisions.

The Company anticipates making approximately $16 million in contributions to its funded U.S. pension plan in the second half of 2018.

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The Company has future cash requirements, including operating leases and debt service and payments as noted in the tables that follow as well as future payments related to the transition tax under the Tax Act.

Off-Balance Sheet Arrangements

At June 30, 2018, Moody’s did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as special purpose or variable interest entities where Moody’s is the primary beneficiary, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As such, Moody’s is not exposed to any financing, liquidity market or credit risk that could arise if it had engaged in such relationships.

Contractual Obligations

The following table presents payments due under the Company’s contractual obligations as of June 30, 2018:

			Payments Due by Period
(in millions)	Total		Less Than 1 Year		1 -3 Years		3 -5 Years		Over 5 Years
Indebtedness(1)	$	7,002.2	$	564.8	$	2,327.1	$	1,685.0	$	2,425.3
Operating lease obligations		681.9		104.2		172.7		150.3		254.7
Purchase obligations		130.7		77.6		52.7		0.4		—
Pension obligations(2)		133.3		5.1		39.9		18.0		70.3
Total(3)	$	7,948.1	$	751.7	$	2,592.4	$	1,853.7	$	2,750.3

⁽¹⁾   Reflects principal payments, related interest and applicable fees due on all indebtedness outstanding as described in Note 15 to the consolidated financial statements.

⁽²⁾  Reflects projected benefit payments relating to the Company’s U.S. unfunded DBPPs and Retirement and Other Plans described in Note 14 to the consolidated financial statements.

⁽³⁾  The table above does not include the Company’s net long-term tax liabilities of $398.3 million relating to UTPs, since the expected cash outflow of such amounts by period cannot be reasonably estimated. Additionally, the table above does not include approximately $237 million relating to the remaining unpaid deemed repatriation liability resulting from the Tax Act enacted into law in the U.S. in December 2017.

Non-GAAP Financial Measures:

In addition to its reported results, Moody’s has included in this MD&A certain adjusted results that the SEC defines as “non-GAAP financial measures.” Management believes that such adjusted financial 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 can provide greater transparency to investors of supplemental information used by management in its financial and operational decision-making. These adjusted measures, as defined by the Company, are not necessarily comparable to similarly defined measures of other companies. Furthermore, these adjusted measures should not be viewed in isolation or used as a substitute for other GAAP measures in assessing the operating performance or cash flows of the Company. Below are brief descriptions of the Company’s adjusted financial measures accompanied by a reconciliation of the adjusted measure to its most directly comparable GAAP measure:

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Adjusted Operating Income and Adjusted Operating Margin:

The Company presents Adjusted Operating Income because management deems this metric to be a useful measure of assessing the operating performance of Moody’s. Adjusted Operating Income excludes depreciation and amortization and Acquisition-Related Expenses. Depreciation and amortization are excluded because companies utilize productive assets of different ages and use different methods of acquiring and depreciating productive assets. Acquisition-Related Expenses consist of expenses incurred to complete and integrate the acquisition of Bureau van Dijk and are excluded due to the material nature of these expenses on an annual basis which are not expected to recur at this dollar magnitude subsequent to the completion of the multi-year integration effort. Acquisition-Related Expenses from previous acquisitions were not material. Management believes that the exclusion of depreciation and amortization and Acquisition-Related Expenses, as detailed in the reconciliation below, allows for an additional perspective on the Company’s operating results from period to period and across companies. The Company defines Adjusted Operating Margin as Adjusted Operating Income divided by revenue.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Operating income	$	534.0		$	460.1		$	1,024.8		$	906.8
Adjustments:
Depreciation and amortization		48.4			32.9			97.5			65.4
Acquisition-Related Expenses		2.0			6.6			2.8			6.6
Adjusted Operating Income	$	584.4		$	499.6		$	1,125.1		$	978.8
Operating margin		45.4	%		46.0	%		44.5	%		45.9	%
Adjusted Operating Margin		49.7	%		49.9	%		48.9	%		49.5	%

Adjusted Net Income and Adjusted Diluted EPS attributable to Moody’s common shareholders:

Beginning in the third quarter of 2017, the Company modified this adjusted measure to exclude the impact of amortization of acquired intangible assets as companies utilize intangible assets with different ages and have different methods of acquiring and amortizing intangible assets. Furthermore, the timing and magnitude of business combination transactions are not predictable and the purchase price allocated to amortizable intangible assets and the related amortization period are unique to each acquisition and can vary significantly from period to period and across companies. Also, management believes that excluding acquisition-related amortization expense provides additional perspective when comparing operating results from period to period, and with both acquisitive and nonacquisitive peer companies.

In addition to excluding acquisition-related amortization expense, adjusted net income and adjusted diluted earnings per share exclude the CCXI Gain, the Purchase Price Hedge Gain and Acquisition-Related Expenses. The Company excludes these items to provide additional perspective on the Company’s operating results from period to period and across companies as the frequency and magnitude of similar transactions may vary widely across periods. Additionally, the Acquisition-Related Expenses are excluded due to the material nature of these expenses on an annual basis which are not expected to recur at this dollar magnitude subsequent to the completion of the multi-year integration effort relating to Bureau van Dijk. Acquisition-Related Expenses from previous acquisitions were not material.

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Below is a reconciliation of this measure to its most directly comparable U.S. GAAP amount:

	Three months ended June 30,											Six months ended June 30,
Amounts in millions	2018					2017						2018					2017
Net income attributable to Moody’s common shareholders				$	376.2				$	312.2					$	749.1				$	657.8
CCXI Gain					—					—						—					(59.7	)
Pre-Tax Purchase Price Hedge Gain	$	—				$	(41.2	)				$	—				$	(41.2	)
Tax on Purchase Price Hedge Gain		—					15.9						—					15.9
Net Purchase Price Hedge Gain					—					(25.3	)					—					(25.3	)
Pre-Tax Acquisition-Related Expenses	$	2.0				$	6.6					$	2.8				$	6.6
Tax on Acquisition-Related Expenses		(0.4	)				—						(0.6	)				—
Net Acquisition-Related Expenses (1)					1.6					6.6						2.2					6.6
Pre-Tax Acquisition-Related Intangible Amortization Expenses	$	25.1				$	8.6					$	50.8				$	17.1
Tax on Acquisition-Related Intangible Amortization Expenses		(5.6	)				(2.4	)					(11.5	)				(4.7	)
Net Acquisition-Related Intangible Amortization Expenses					19.5					6.2						39.3					12.4
Adjusted Net Income				$	397.3				$	299.7					$	790.6				$	591.8
	Three months ended June 30,											Six months ended June 30,
	2018					2017						2018					2017
Earnings per share attributable to Moody’s common shareholders				$	1.94				$	1.61					$	3.85				$	3.39
CCXI Gain					—					—						—					(0.31	)
Pre-Tax Purchase Price Hedge Gain	$	—				$	(0.21	)				$	—				$	(0.21	)
Tax on Purchase Price Hedge Gain		—					0.08						—					0.08
Net Purchase Price Hedge Gain					—					(0.13	)					—					(0.13	)
Pre-Tax Acquisition-Related Expenses	$	0.01				$	0.03					$	0.01				$	0.04
Tax on Acquisition-Related Expenses		—					—						—					—
Net Acquisition-Related Expenses (1)					0.01					0.03						0.01					0.04
Pre-Tax Acquisition-Related Intangible Amortization Expenses	$	0.13				$	0.04					$	0.26				$	0.09
Tax on Acquisition-Related Intangible Amortization Expenses		(0.04	)				—						(0.06	)				(0.03	)
Net Acquisition-Related Intangible Amortization Expenses					0.09					0.04						0.20					0.06
Adjusted Diluted EPS				$	2.04				$	1.55					$	4.06				$	3.05

⁽¹⁾   Certain of these Acquisition-Related Expenses are not deductible for tax

Note: the tax impacts in the table above were calculated using tax rates in effect in the jurisdiction for which the item relates.

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Free Cash Flow:

The Company defines Free Cash Flow as net cash provided by operating activities minus payments for capital additions. Management believes that Free Cash Flow is a useful metric in assessing the Company’s cash flows to service debt, pay dividends and to fund acquisitions and share repurchases. Management deems capital expenditures essential to the Company’s product and service innovations and maintenance of Moody’s operational capabilities. Accordingly, capital expenditures are deemed to be a recurring use of Moody’s cash flow. Below is a reconciliation of the Company’s net cash flows from operating activities to Free Cash Flow:

	Six Months Ended June 30,
	2018			2017
Net cash flows provided by (used in) operating activities	$	777.3		$	(40.6	)
Capital additions		(37.9	)		(42.8	)
Free Cash Flow	$	739.4		$	(83.4	)
Net cash flows (used in) provided by investing activities	$	(45.3	)	$	39.9
Net cash flows (used in) provided by financing activities	$	(467.6	)	$	1,170.5

Recently Issued Accounting Standards

Refer to Note 18 to the condensed consolidated financial statements located in Part I on this Form 10-Q for a discussion on the impact to the Company relating to recently issued accounting pronouncements.

Contingencies

Legal proceedings in which the Company is involved also may impact Moody’s liquidity or operating results. No assurance can be provided as to the outcome of such proceedings. In addition, litigation inherently involves significant costs. For information regarding legal proceedings, see Item 1 - “Financial Statements”, Note 16 “Contingencies.”

Regulation

MIS and many of the securities that it rates are subject to extensive regulation in both the U.S. and in other countries (including by state and local authorities). Thus, existing and proposed laws and regulations can impact the Company’s operations and the markets for securities that it rates. Additional laws and regulations have been adopted but not yet implemented or have been proposed or are being considered. Each of the existing, adopted, proposed and potential laws and regulations can increase the costs and legal risk associated with the issuance of credit ratings and may negatively impact Moody’s operations or profitability, the Company’s ability to compete, or result in changes in the demand for credit ratings, in the manner in which ratings are utilized and in the manner in which Moody’s operates.

The regulatory landscape has changed rapidly in recent years, and continues to evolve. In the EU, the CRA industry is registered and supervised through a pan-European regulatory framework. The European Securities and Markets Authority has direct supervisory responsibility for the registered CRA industry throughout the EU. MIS is a registered entity and is subject to formal regulation and periodic inspection. Applicable rules include procedural requirements with respect to ratings of sovereign issuers, liability for intentional or grossly negligent failure to abide by applicable regulations, mandatory rotation requirements of CRAs hired by issuers of securities for ratings of resecuritizations, restrictions on CRAs or their shareholders if certain ownership thresholds are crossed, reporting requirements to ESMA regarding fees, and additional procedural and substantive requirements on the pricing of services. In 2016, the Commission published a report concluding that no new European legislation was needed for the industry at that time, but that it would continue to monitor the credit rating industry and analyze approaches that may strengthen existing regulation. In addition, from time to time, ESMA publishes interpretive guidance, or thematic reports regarding various aspects of the regulation. Recently, two such reports have been published. The first report provides further guidance from ESMA regarding the endorsement mechanism that CRAs will need to employ for those ratings that are produced outside of the EU but are used inside the EU by EU-regulated entities. The second report discusses ESMA’s observations on CRAs fee practices. In March 2018, ESMA published a consultation report seeking feedback on the extent to which EU regulation should be applied to CRAs operating outside of the EU to make their ratings eligible for regulatory use in the EU. In the third quarter of 2018, ESMA is expected to publish final guidance on the applicability of EU regulation to endorsed ratings, with an expected effective date of January 1, 2019.

Separately, on June 23, 2016, the U.K. voted through a referendum to exit the EU. The UK officially launched the exit process by submitting its Article 50 letter to the EU, informing it of the UK’s intention to exit. The submission of this letter started the clock on the negotiation of the terms of exit which is expected to take up to two years.

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The longer-term impacts of the decision to leave the EU on the overall regulatory framework for the U.K. will depend, in part, on the relationship that the U.K. negotiates with the EU in the future. In the interim, however, the U.K.’s markets regulator (the Financial Conduct Authority) has said that all EU financial regulations will stay in place and that firms must continue to abide by their existing obligations. As a consequence, at this point in time, there is no change to the regulatory framework under which MIS operates and ESMA remains MIS’s regulator both in the EU and in the U.K.

In the U.S., CRAs are subject to extensive regulation primarily pursuant to the Reform Act and the Financial Reform Act. The SEC is required by these legislative acts to publish two annual reports to Congress on NRSROs. The Financial Reform Act requires the SEC to examine each NRSRO once a year and issue an annual report summarizing the examination findings, among other requirements. The annual report required by the Reform Act details the SEC’s views on the state of competition, transparency and conflicts of interests among NRSROs, among other requirements. The SEC voted in August 2014 to adopt its final rules for NRSROs as required by the Financial Reform Act. The Company has made and continues to make substantial IT and other investments, and has implemented the relevant compliance obligations.

In light of the regulations that have gone into effect in both the EU and the U.S. (as well as many other countries), periodically and as a matter of course pursuant to their enabling legislation these regulatory authorities have and will continue to publish reports that describe their oversight activities over the industry. In addition, other legislation and/or interpretation of existing regulation relating to credit rating and research services is being considered by local, national and multinational bodies and this type of activity is likely to continue in the future. Finally, in certain countries, governments may provide financial or other support to locally-based rating agencies. For example, governments may from time to time establish official rating agencies or credit ratings criteria or procedures for evaluating local issuers. If enacted, any such legislation and regulation could change the competitive landscape in which MIS operates. The legal status of rating agencies has been addressed by courts in various decisions and is likely to be considered and addressed in legal proceedings from time to time in the future. Management of the Company cannot predict whether these or any other proposals will be enacted, the outcome of any pending or possible future legal proceedings, or regulatory or legislative actions, or the ultimate impact of any such matters on the competitive position, financial position or results of operations of Moody’s.

Forward-Looking Statements

Certain statements contained in this quarterly report on Form 10-Q are forward-looking statements and are based on future expectations, plans and prospects for the Company’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements. Those statements appear at various places throughout this quarterly report on Form 10-Q, including in the sections entitled “Contingencies” under Item 2 “MD&A”, commencing on page 59 of this quarterly report on Form 10-Q, under “Legal Proceedings” in Part II, Item 1 of this Form 10-Q, and elsewhere in the context of statements containing the words “believe”, “expect”, “anticipate”, “intend”, “plan”, “will”, “predict”, “potential”, “continue”, “strategy”, “aspire”, “target”, “forecast”, “project”, “estimate”, “should”, “could”, “may” and similar expressions or words and variations thereof relating to the Company’s views on future events, trends and contingencies. Stockholders and investors are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements and other information are made as of the date of this quarterly report on Form 10-Q, and the Company undertakes no obligation (nor does it intend) to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company is identifying examples of factors, risks and uncertainties that could cause actual results to differ, perhaps materially, from those indicated by these forward-looking statements.

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Those factors, risks and uncertainties include, but are not limited to, credit market disruptions or economic slowdowns, which could affect the volume of debt and other securities issued in domestic and/or global capital markets; other matters that could affect the volume of debt and other securities issued in domestic and/or global capital markets, including regulation, credit quality concerns, changes in interest rates and other volatility in the financial markets such as that due to the U.K.’s referendum vote whereby the U.K. citizens voted to withdraw from the EU; the level of merger and acquisition activity in the U.S. and abroad; the uncertain effectiveness and possible collateral consequences of U.S. and foreign government actions affecting credit markets, international trade and economic policy; concerns in the marketplace affecting our credibility or otherwise affecting market perceptions of the integrity or utility of independent credit agency ratings; the introduction of competing products or technologies by other companies; pricing pressure from competitors and/or customers; the level of success of new product development and global expansion; the impact of regulation as an NRSRO, the potential for new U.S., state and local legislation and regulations, including provisions in the Financial Reform Act and regulations resulting from that Act; the potential for increased competition and regulation in the EU and other foreign jurisdictions; exposure to litigation related to our rating opinions, as well as any other litigation, government and regulatory proceedings, investigations and inquires to which the Company may be subject from time to time; provisions in the Financial Reform Act legislation modifying the pleading standards, and EU regulations modifying the liability standards, applicable to credit rating agencies in a manner adverse to credit rating agencies; provisions of EU regulations imposing additional procedural and substantive requirements on the pricing of services and the expansion of supervisory remit to include non-EU ratings used for regulatory purposes; the possible loss of key employees; failures or malfunctions of our operations and infrastructure; any vulnerabilities to cyber threats or other cybersecurity concerns; the outcome of any review by controlling tax authorities of the Company’s global tax planning initiatives; exposure to potential criminal sanctions or civil remedies if the Company fails to comply with foreign and U.S. laws and regulations that are applicable in the jurisdictions in which the Company operates, including data protection and privacy laws, sanctions laws, anti-corruption laws, and local laws prohibiting corrupt payments to government officials; the impact of mergers, acquisitions or other business combinations and the ability of the Company to successfully integrate acquired businesses; currency and foreign exchange volatility; the level of future cash flows; the levels of capital investments; and a decline in the demand for credit risk management tools by financial institutions. Other factors, risks and uncertainties relating to our acquisition of Bureau van Dijk could cause our actual results to differ, perhaps materially, from those indicated by these forward-looking statements, including risks relating to the integration of Bureau van Dijk’s operations, products and employees into Moody’s and the possibility that anticipated synergies and other benefits of the acquisition will not be realized in the amounts anticipated or will not be realized within the expected timeframe; risks that the acquisition could have an adverse effect on the business of Bureau van Dijk or its prospects, including, without limitation, on relationships with vendors, suppliers or customers; claims made, from time to time, by vendors, suppliers or customers; changes in the European or global marketplaces that have an adverse effect on the business of Bureau van Dijk. These factors, risks and uncertainties as well as other risks and uncertainties that could cause Moody’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements are described in greater detail under “Risk Factors” in Part I, Item 1A of the Company’s annual report on Form 10-K for the year ended December 31, 2017, and in other filings made by the Company from time to time with the SEC or in materials incorporated herein or therein. Stockholders and investors are cautioned that the occurrence of any of these factors, risks and uncertainties may cause the Company’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements, which could have a material and adverse effect on the Company’s business, results of operations and financial condition. New factors may emerge from time to time, and it is not possible for the Company to predict new factors, nor can the Company assess the potential effect of any new factors on it.

82

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The following discussion outlines changes in Moody’s derivative instrument portfolio subsequent to the filing of the Company’s Form 10-K for the year ended December 31, 2017:

Cross-currency swap designated as a net investment hedge:

During the second quarter of 2018 the Company entered into cross-currency swaps to exchange an aggregate amount of €490.1 million with corresponding interest based on the floating 3-month EURIBOR for an aggregate amount of $580.0 million with corresponding interest based on the floating 3-month U.S. LIBOR, which were designated as net investment hedges under ASC Topic 815. The purpose of these cross-currency swaps is to mitigate FX exposure related to a portion of the Company’s euro net investments in certain foreign subsidiaries against changes in euro/USD exchange rates. If the euro were to strengthen 10% relative to the U.S. dollar, there would be an approximate $57 million unfavorable impact to the fair value of the cross-currency swap recognized in OCI which would be offset by favorable currency translation gains on the Company’s euro net investment in foreign subsidiaries.

Interest rate swaps designated as a fair value hedge:

Furthermore, in the second quarter of 2018, the Company entered into interest rate swaps with a notional amount of $500 million to convert the fixed rate of interest on the 2017 Senior Notes due 2021 to a floating interest rate based on the 3-month LIBOR. A hypothetical change of 100 BPS in the LIBOR-based swap rate would result in an approximate $17 million change to the fair value of the swap, which would be offset by the change in fair value of the hedged item.

Refer to Note 9 to the condensed consolidated financial statements in this Form 10-Q and Item 7A. “Quantitative and Qualitative Disclosures about Market Risk”, contained in the Company’s annual report on Form 10-K for the year ended December 31, 2017 for further discussion on the Company’s derivative financial instruments.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures: The Company carried out an evaluation, as required by Rule 13a-15(b) under the Exchange Act, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act, as of the end of the period covered by this report (the “Evaluation Date”). Based on such evaluation, such officers have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the communication to the Company’s management, including the Company’s Chief Executive Officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Except as described below, the Company’s management, including the Company’s Chief Executive Officer and principal financial officer, has determined that there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, these internal controls over financial reporting during the period covered by the report.

During the fiscal year ended December 31, 2017, the Company acquired Bureau van Dijk, and during the six months ended June 30, 2018, we further integrated the acquired entity into the Company’s financial reporting processes and procedures and internal control over financial reporting. Additionally, during the first half of 2018, the Company implemented internal controls relating to the New Revenue Accounting Standard which was adopted by Moody’s on January 1, 2018.

83

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

For information regarding legal proceedings, see Item 1 – “Financial Statements – Notes to Condensed Consolidated Financial Statements (Unaudited),” Note 16 “Contingencies” in this Form 10-Q.

Item 1A. Risk Factors

There have been no material changes since December 31, 2017 to the significant risk factors and uncertainties known to the Company that, if they were to occur, could materially adversely affect the Company’s business, financial condition, operating results and/or cash flow. For a discussion of the Company’s risk factors, refer to Item 1A. “Risk Factors”, contained in the Company’s annual report on Form 10-K for the year ended December 31, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

MOODY’S PURCHASES OF EQUITY SECURITIES

For the Three Months Ended June 30, 2018

Period	Total Number of Shares Purchased (1)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly  Announced Program		Approximate Dollar Value of Shares That May Yet be Purchased  Under the Program (2)
April 1 - 30		106,239	$	162.40		103,438	$	466.7 million
May 1 - 31		69,280	$	168.58		68,722	$	455.1 million
June 1 - 30		53,272	$	174.16		52,808	$	445.9 million
Total		228,791	$	167.05		224,968

(1) Includes surrender to the Company of 2,801, 558 and 464 shares of common stock in April, May and June, respectively, to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees.

(2) As of the last day of each of the months. On December 15, 2015, the Board authorized a $1 billion share repurchase program. There is no established expiration date for the remaining authorization.

During the second quarter of 2018, Moody’s issued 0.2 million shares under employee stock-based compensation plans.

Item 5. Other Information

Not applicable

84

Item 6. Exhibits

Exhibit   No.	Description
3	ARTICLES OF INCORPORATION AND BY-LAWS
.1	Restated Certificate of Incorporation of Moody’s Corporation dated April  17, 2013 (incorporated by reference to Exhibit 3.4 to the Report on Form 8-K of the Registrant file number 1-14037, filed April 22, 2013.
.2	Amended and Restated By-laws of Moody’s Corporation, effective April 17, 2013 (incorporated by reference to Exhibit 3.2 to the Report on Form 8-K of the Registrant, file number 1-14037, filed April 22, 2013).
4	INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES
.1	Eighth Supplemental Indenture, dated as of June  7, 2018, between the Company and Wells Fargo, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed June 7, 2018).
.2	Form of 3.250% Senior Note due 2021 (incorporated by reference to Exhibit 4.1 to the Report on Form 8-K of the Registrant, file number 1-14037, filed June 7, 2018)
12*	Statement of Computation of Ratios of Earnings to Fixed Charges
31	CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
.1*	Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
.2*	Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
.1*	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section  906 of the Sarbanes-Oxley Act of 2002. The Company has furnished this certification and does not intend for it to be considered filed under the Securities Exchange Act of 1934 or incorporated by reference into future filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.
.2*	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section  906 of the Sarbanes-Oxley Act of 2002. The Company has furnished this certification and does not intend for it to be considered filed under the Securities Exchange Act of 1934 or incorporated by reference into future filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.
101	XBRL
101.DEF*	XBRL Definitions Linkbase Document
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

85

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MOODY’S CORPORATION
By:	/ S / David Hogan
	David Hogan
	Managing Director – Assistant Controller (principal accounting officer)

Date: August 1, 2018

86

EX-12

Exhibit 12

STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

	Six Months Ended June 30,				Year Ended December 31,
amounts in millions, except fixed charges ratios	2018		2017		2017		2016		2015		2014		2013
Earnings:
Income before income taxes and noncontrolling interests	$	936.6	$	913.3	$	1,786.8	$	558.0	$	1,379.6	$	1,461.0	$	1,169.3
Add:
Fixed charges (see below)		119.4		113.0		238.7		182.3		155.5		152.2		125.6
Amortization of capitalized interest		0.3		0.5		1.0		1.1		1.1		0.8		0.8
Less:
Capitalized interest		0.6		0.5		1.0		0.8		0.4		—		—
Total earnings for computation of ratio	$	1,055.7	$	1,026.3	$	2,025.5	$	740.6	$	1,535.8	$	1,614.0	$	1,295.7
Fixed charges:
Interest expense on borrowings (1)	$	100.7	$	91.1	$	190.1	$	141.9	$	120.6	$	118.4	$	92.3
Interest expense, net on unrecognized tax benefits and other tax-related liabilities (2)		1.0		5.5		15.3		7.8		5.3		5.8		8.6
Interest capitalized		0.6		0.5		1.0		0.8		0.4		—		—
Estimated interest portion of rental expense (3)		17.1		15.9		32.3		31.8		29.2		28.0		24.7
Total fixed charges	$	119.4	$	113.0	$	238.7	$	182.3	$	155.5	$	152.2	$	125.6
Ratio of earnings to fixed charges		8.8		9.1		8.5		4.1		9.9		10.6		10.3

(1) Amounts are net of gains and losses on certain interest rate swaps that the Company utilizes to mitigate interest rate risk on its borrowings.

(2) Represents net interest expense related to unrecognized tax benefits and other tax-related liabilities. There may be periods whereby interest expense may be wholly or partially offset by reductions in accrued interest due to the completion of tax audits or updates to the Company’s tax positions which could result in the reversal of accrued interest.

(3) Represents one third of rent expense which is the estimate of the interest component of rent expense.

EX-31.1

Exhibit 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Raymond W. McDaniel, Jr., President and Chief Executive Officer of Moody’s Corporation, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Moody’s Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/ S /    RAYMOND W. MCDANIEL, JR.

Raymond W. McDaniel, Jr.

President and Chief Executive Officer

August 1, 2018

EX-31.2

Exhibit 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Jeffrey Hare, Senior Vice President – Corporate Planning and Risk of Moody’s Corporation, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Moody’s Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/ S /    JEFFREY HARE                

Senior Vice President – Corporate Planning and Risk

(principal financial officer)

August 1, 2018

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Moody’s Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Raymond W. McDaniel, Jr., President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/ S /    RAYMOND W. MCDANIEL, JR.

Raymond W. McDaniel, Jr.

President and Chief Executive Officer

August 1, 2018

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Moody’s Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffrey Hare, Senior Vice President – Corporate Planning and Risk of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/ S /    JEFFREY HARE                

Senior Vice President – Corporate Planning
and Risk

(principal financial officer)

August 1, 2018

XML

Document and Entity Information shares in Millions	6 Months Ended
	Jun. 30, 2018 shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Trading Symbol	MCO
Entity Registrant Name	MOODYS CORP /DE/
Entity Central Index Key	0001059556
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	191.9

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenues	$ 1,175.1	$ 1,000.5	$ 2,301.8	$ 1,975.7
Expenses
Operating	320.2	284.8	635.1	560.1
Selling, general and administrative	270.5	216.1	541.6	436.8
Depreciation and amortization	48.4	32.9	97.5	65.4
Acquisition-Related Expenses	2.0	6.6	2.8	6.6
Total expenses	641.1	540.4	1,277.0	1,068.9
Operating Income	534.0	460.1	1,024.8	906.8
Non-operating (expense) income, net
Interest expense, net	(53.4)	(49.7)	(104.1)	(97.1)
Other non-operating income, net	14.9	10.4	15.9	2.7
Purchase price hedge gain		41.2		41.2
CCXI gains				59.7
Total non-operating (expense) income, net	(38.5)	1.9	(88.2)	6.5
Income before provisions for income taxes	495.5	462.0	936.6	913.3
Provision for income taxes	117.6	148.4	181.9	253.8
Net income	377.9	313.6	754.7	659.5
Less: Net income attributable to noncontrolling interests	1.7	1.4	5.6	1.7
Net income attributable to Moody's	$ 376.2	$ 312.2	$ 749.1	$ 657.8
Earnings per share attributable to Moody's common shareholders
Basic	$ 1.96	$ 1.63	$ 3.91	$ 3.44
Diluted	$ 1.94	$ 1.61	$ 3.85	$ 3.39
Weighted average number of shares outstanding
Basic	191.9	191.0	191.6	191.1
Diluted	194.4	193.8	194.5	194.1
Dividends declared per share attributable to Moody's common shareholders	$ 0.44	$ 0.38	$ 0.88	$ 0.38

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments Gain Loss [Line Items]
Net income	$ 377.9	$ 313.6	$ 754.7	$ 659.5
Foreign currency translation:
Foreign currency translation adjustments - Pre Tax	(250.3)	35.1	(128.7)	49.5
Foreign currency translation adjustment - Tax	(9.2)	15.4	(5.6)	13.1
Foreign currency translation adjustments - Net of Tax	(259.5)	50.5	(134.3)	62.6
Cash flow hedges:
Net realized and unrealized gain (loss) on cash flow hedges - Net of Tax	27.4	(13.5)	18.0	(17.3)
Reclassification of losses included in net income - Pre Tax	(0.1)	(6.1)	(0.2)	(7.5)
Reclassification of losses included in net income - Tax Amount		2.8		3.3
Reclassification of losses included in net income- Net of Tax	(0.1)	(3.3)	(0.2)	(4.2)
Available for sale securities:
Net unrealized gains on available for sale securities - Pre Tax		0.6		1.1
Net unrealized gains on available for sale securities - Net of Tax		0.6		1.1
Pension and Other Retirement Benefits:
Amortization of actuarial losses and prior service costs included in net income - Pre Tax	1.0	1.9	2.4	4.3
Amortization of actuarial losses and prior service costs included in net income - Tax	(0.3)	(0.8)	(0.7)	(1.7)
Amortization of actuarial losses and prior service costs included in net income - Net of Tax	0.7	1.1	1.7	2.6
Net actuarial losses and prior service costs - Pre Tax	1.6	7.9	1.6	7.9
Net actuarial losses and prior service costs - Tax	(0.4)	(3.0)	(0.4)	(3.0)
Net actuarial losses and prior service costs - Net of Tax	1.2	4.9	1.2	4.9
Total other comprehensive (loss) income - Pre Tax	(247.8)	44.5	(123.0)	60.1
Total other comprehensive (loss)income - Tax	(9.9)	12.5	(7.1)	9.9
Total other comprehensive (loss) income - Net of Tax	(257.7)	57.0	(130.1)	70.0
Comprehensive income	120.2	370.6	624.6	729.5
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest	(3.2)	10.8	5.7	16.5
Comprehensive income attributable to Moody's	123.4	359.8	618.9	713.0
Cash Flow Hedging [Member]
Cash flow hedges:
Net realized and unrealized gain (loss) on cash flow hedges - Pre Tax		5.1	1.9	4.8
Net realized and unrealized gain (loss) on cash flow hedges - Tax Amount		(1.9)	(0.4)	(1.8)
Net realized and unrealized gain (loss) on cash flow hedges - Net of Tax		3.2	1.5	3.0
Reclassification of losses included in net income- Net of Tax	$ (0.1)	$ (3.3)	$ (0.2)	$ (4.2)

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 1,314.5	$ 1,071.5
Short-term investments	101.2	111.8
Accounts receivable, net of allowances of $36.3 in 2018 and $36.6 in 2017	1,137.1	1,147.2
Other current assets	286.9	250.1
Total current assets	2,839.7	2,580.6
Property and equipment, net of accumulated depreciation of $748.2 in 2018 and $706.0 in 2017	312.2	325.1
Goodwill	3,662.7	3,753.2
Intangible assets, net	1,541.4	1,631.6
Deferred tax assets, net	136.6	143.8
Other assets	259.0	159.9
Total assets	8,751.6	8,594.2
Current liabilities:
Accounts payable and accrued liabilities	593.6	750.3
Commercial paper	89.9	129.9
Current portion of long-term debt	299.9	299.5
Deferred revenue	860.5	883.6
Total current liabilities	1,843.9	2,063.3
Non-current portion of deferred revenue	126.0	140.0
Long-term debt	4,934.2	5,111.1
Deferred tax liabilities, net	363.2	341.6
Unrecognized tax benefits	398.3	389.1
Other liabilities	625.9	664.0
Total liabilities	8,291.5	8,709.1
Contingencies (Note 14)
Shareholders' (deficit) equity
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding
Common stock	3.4	3.4
Capital surplus	538.6	528.6
Retained earnings	8,204.6	7,465.4
Treasury stock, at cost; 151,012,009 and 151,932,157 shares of common stock at June 30, 2018 and December 31, 2017, respectively	(8,198.9)	(8,152.9)
Accumulated other comprehensive loss	(304.8)	(172.2)
Total Moody's shareholders' deficit	242.9	(327.7)
Noncontrolling interests	217.2	212.8
Total shareholders' deficit	460.1	(114.9)
Total liabilities and shareholders' (deficit) equity	8,751.6	8,594.2
Series common stock
Shareholders' (deficit) equity
Common stock

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Accounts receivable, allowances	$ 36.3	$ 36.6
Property and equipment, accumulated depreciation	$ 748.2	$ 706.0
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	342,902,272	342,902,272
Treasury stock, shares	151,012,009	151,932,157
Series common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income	$ 754.7	$ 659.5
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	97.5	65.4
Stock-based compensation expense	69.5	57.1
Purchase price hedge gain		(41.2)
CCXI gains		(59.7)
Deferred income taxes	(12.1)	193.5
Changes in assets and liabilities:
Accounts receivable	17.8	(16.5)
Other current assets	(10.2)	(91.0)
Other assets	(14.3)	8.9
Accounts payable and accrued liabilities	(163.2)	(877.4)
Deferred revenue	55.3	43.9
Unrecognized tax benefits and other non-current tax liabilities	(33.6)	8.4
Other liabilities	15.9	8.5
Net cash provided by (used in) operating activities	777.3	(40.6)
Cash flows from investing activities
Capital additions	(37.9)	(42.8)
Purchases of investments	(92.2)	(75.3)
Sales and maturities of short-term investments	79.1	161.6
Cash paid for acquisitions, net of cash acquired and equity investments		(5.0)
Receipts from settlements of net investment hedges		1.4
Cash received upon diposal of a subsidiary, net of cash transferred to purchaser	5.7
Net cash used in investing activities	(45.3)	39.9
Cash flows from financing activities
Issuance of notes	299.6	1,791.9
Repayments of notes	(450.0)	(300.0)
Issuance of commercial paper	359.4	703.7
Repayments of commercial paper	(399.4)	(703.7)
Proceeds from stock-based compensation plans	36.9	39.1
Repurchase of shares related to stock-based compensation	(61.5)	(47.9)
Cost of treasury shares repurchased	(81.0)	(134.5)
Dividends	(168.6)	(145.2)
Dividends to noncontrolling interests	(1.3)	(0.8)
Payment for noncontrolling interest		(6.2)
Debt issuance costs, extinguishment costs and related fees	(1.7)	(25.9)
Net cash provided (used in) by financing activities	(467.6)	1,170.5
Effect of exchange rate changes on cash and cash equivalents	(21.4)	59.6
Net increase (decrease) in cash and cash equivalents	243.0	1,229.4
Cash and cash equivalents, beginning of the period	1,071.5	2,051.5
Cash and cash equivalents, end of the period	$ 1,314.5	$ 3,280.9

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GLOSSARY OF TERMS AND ABBREVIATIONS

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

GLOSSARY OF TERMS AND ABBREVIATIONS

GLOSSARY OF TERMS AND ABBREVIATIONS
The following terms, abbreviations and acronyms are used to identify frequently used terms in this report:
TERM	DEFINITION
Acquisition-Related Amortization	Amortization of definite-lived intangible assets acquired by the Company from all business combination transactions
Acquisition-Related Expenses	Consists of expenses incurred to complete and integrate the acquisition of Bureau van Dijk for which the integration will be a multi-year effort
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 depreciation and amortization
Adjusted Operating Margin	Adjusted Operating Income divided by revenue
Americas	Represents countries within North and South America, excluding the U.S.
AOCI	Accumulated other comprehensive income (loss); a separate component of shareholders’ equity (deficit)
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
ASC 605	The U.S. GAAP authoritative guidance for revenue accounting prior to the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (ASC Topic 606).
Asia-Pacific	Represents Australia and countries in Asia including but not limited to: China, India, Indonesia, Japan, Korea, Malaysia, Singapore, Sri Lanka and Thailand
ASU	The FASB Accounting Standards Update to the ASC. It also 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
Board	The board of directors of the Company
BPS	Basis points
Bureau van Dijk	Bureau van Dijk Electronic Publishing, B.V., a global provider of business intelligence and company information; acquired by the Company on August 10, 2017 via the acquisition of Yellow Maple I B.V., an indirect parent of Bureau van Dijk.
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; the Company acquired a 49% interest in 2006; currently Moody’s owns 30% of CCXI.
CCXI Gain	In the first quarter of 2017 CCXI, as part of a strategic business realignment, issued additional capital to its majority shareholder in exchange for a ratings business wholly-owned by the majority shareholder and which has the right to rate a different class of debt instrument in the Chinese market. The capital issuance by CCXI in exchange for this ratings business diluted Moody’s ownership interest in CCXI to 30% of a larger business and resulted in a $59.7 million non-cash, non-taxable gain.
CFG	Corporate finance group; an LOB of MIS
CLO	Collateralized loan obligation
CMBS	Commercial mortgage-backed securities; part of the CREF asset class within SFG
Commission	European Commission
Common Stock	The Company’s common stock
Company	Moody’s Corporation and its subsidiaries; MCO; Moody’s
Council	Council of the European Union
CP	Commercial Paper
CP Notes	Unsecured commercial paper issued under the CP Program
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 2015 facility.
CRAs	Credit rating agencies
CRA3	Regulation (EU) No 462/2013 of the European Parliament and of the Council, which updated the regulatory regimes imposing additional procedural requirements on CRAs
CREF	Commercial real estate finance which includes REITs, commercial real estate CDOs and mortgage-backed securities; part of SFG
D&A	Depreciation and amortization
DBPPs	Defined benefit pension plans
Debt/EBITDA	Ratio of Total Debt to EBITDA
EBITDA	Earnings before interest, taxes, depreciation and amortization
EMEA	Represents countries within Europe, the Middle East and Africa
EPS	Earnings per share
ERS	The Enterprise Risk Solutions LOB within MA, which offers risk management software solutions as well as related risk management advisory engagements services
ESA	Economics and Structured Analytics; part of the RD&A line of business within MA
ESMA	European Securities and Markets Authority
ETR	Effective tax rate
EU	European Union
EUR	Euros
EURIBOR	The Euro Interbank Offered Rate
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
FASB	Financial Accounting Standards Board
FIG	Financial institutions group; an LOB of MIS
Financial Reform Act	Dodd-Frank Wall Street Reform and Consumer Protection Act
Free Cash Flow	Net cash provided by operating activities less cash paid for capital additions
FSTC	Financial Services Training and Certifications; part of the PS LOB and a reporting unit within the MA reportable segment; consists of on-line and classroom-based training services and CSI Global Education, Inc.
FX	Foreign exchange
GAAP	U.S. Generally Accepted Accounting Principles
GBP	British pounds
ICRA	ICRA Limited; a leading provider of credit ratings and research in India. The Company previously held 28.5% equity ownership and in June 2014, increased that ownership stake to just over 50% through the acquisition of additional shares
IRS	Internal Revenue Service
IT	Information technology
KIS	Korea Investors Service, Inc; a leading Korean rating agency and consolidated subsidiary of the Company
KIS Pricing	Korea Investors Service Pricing, Inc; a leading Korean provider of fixed income securities pricing and consolidated subsidiary of the Company
KIS Research	Korea Investors Service Research; a Korean provider of financial research and consolidated subsidiary of the Company
Korea	Republic of South Korea
LIBOR	London Interbank Offered Rate
LOB	Line of business
M&A	Mergers and acquisitions
MA	Moody’s Analytics a reportable segment of MCO which provides a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets; consists of three LOBs – RD&A, ERS and PS
Make Whole Amount	The prepayment penalty amount relating to the Series 2007-1 Notes, 2010 Senior Notes, 2012 Senior Notes, 2013 Senior Notes, 2014 Senior Notes (5-year), 2014 Senior Notes (30-year), 2015 Senior Notes, 2017 Senior Notes and 2018 Senior Notes which is a premium based on the excess, if any, of the discounted value of the remaining scheduled payments over the prepaid principal
MAKS	Moody’s Analytics Knowledge Services; formerly known as Copal Amba; provides offshore research and analytic services to the global financial and corporate sectors; part of the PS LOB and 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
MIS	Moody’s Investors Service – a reportable segment of MCO; consists of five LOBs – SFG, CFG, FIG, PPIF and MIS Other
MIS Other	Consists of non-ratings revenue from ICRA, KIS Pricing and KIS Research. These businesses are components of MIS; MIS Other is an LOB of MIS
Moody’s	Moody’s Corporation and its subsidiaries; MCO; the Company
Net Income	Net income attributable to Moody’s Corporation, which excludes net income from consolidated noncontrolling interests belonging to the minority interest holder
New Revenue Accounting Standard	Updates to the ASC pursuant to ASU No. 2014-09, “Revenue from Contracts with Customers (ASC Topic 606)”. This new accounting guidance significantly changes the accounting framework under U.S. GAAP relating to revenue recognition and to the accounting for the deferral of incremental costs of obtaining or fulfilling a contract with a customer
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
OCI	Other comprehensive income (loss); includes gains and losses on cash flow and net investment hedges, unrealized gains and losses on available for sale securities (in periods prior to January 1, 2018), certain gains and losses relating to pension and other retirement benefit obligations and foreign currency translation adjustments
Other Retirement Plan	The U.S. retirement healthcare and U.S. retirement life insurance plans
PCS	Post-Contract Customer Support
PPIF	Public, project and infrastructure finance; an LOB of MIS
Profit Participation Plan	Defined contribution profit participation plan that covers substantially all U.S. employees of the Company
PS	Professional Services, an LOB within MA consisting of MAKS and FSTC that provides research and analytical services as well as financial training and certification programs
Purchase Price Hedge	Foreign currency collar and forward contracts entered into by the Company to economically hedge the Bureau van Dijk euro denominated purchase price
Purchase Price Hedge Gain	Gain on foreign currency collars to economically hedge the Bureau van Dijk euro denominated purchase price
RD&A	Research, Data and Analytics; an LOB within MA that distributes research and data developed by MIS as part of the ratings process, including in-depth research on major debt issuers, industry studies and commentary on topical credit-related events. Also, produces economic research and data and analytical tools such as quantitative credit risk scores as well as business intelligence and company information products.
Reform Act	Credit Rating Agency Reform Act of 2006
REIT	Real Estate Investment Trust
Relationship 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. For MA, represents subscription-based revenue and software maintenance revenue
Retirement Plans	Moody’s funded and unfunded pension plans, the healthcare plans and life insurance plans
SCDM	SCDM Financial, a leading provider of analytical tools for participants in securitization markets. Moody’s acquired SCDM’s structured finance data and analytics business in February 2017
SEC	U.S. Securities and Exchange Commission
Securities Act	Securities Act of 1933, as amended
Series 2007-1 Notes	Principal amount of $300 million, 6.06% senior unsecured notes due in September 2017 pursuant to the 2007 Agreement; prepaid in March 2017
Settlement Charge	Charge of $863.8 million recorded in the fourth quarter of 2016 related to an agreement entered into on January 13, 2017 with the U.S. Department of Justice and the attorneys general of 21 U.S. states and the District of Columbia to resolve pending and potential civil claims related to credit ratings that MIS assigned to certain structured finance instruments in the financial crisis era
SFG	Structured finance group; an LOB of MIS
SG&A	Selling, general and administrative expenses
SSP	Standalone selling price
T&M	Time-and-Material
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 MIS, represents the initial rating of a new debt issuance as well as other one-time fees. For MIS Other, represents revenue from professional services as well as data services, research and analytical engagements. For MA, represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, training and certification services, and research and analytical engagements
U.K.	United Kingdom
U.S.	United States
USD	U.S. dollar
UTPs	Uncertain tax positions
VSOE	Vendor specific objective evidence; as defined in the ASC, evidence of selling price limited to either of the following: the price charged for a deliverable when it is sold separately, or for a deliverable not yet being sold separately, the price established by management having the relevant authority
2007 Agreement	Note purchase agreement dated September 7, 2007, relating to the Series 2007-1 Notes
2010 Indenture	Supplemental indenture and related agreements dated August 19, 2010, relating to the 2010 Senior Notes
2010 Senior Notes	Principal amount of $500 million, 5.50% senior unsecured notes due in September 2020 pursuant to the 2010 Indenture
2012 Indenture	Supplemental indenture and related agreements dated August 18, 2012, relating to the 2012 Senior Notes
2012 Senior Notes	Principal amount of $500 million, 4.50% senior unsecured notes due in September 2022 pursuant to the 2012 Indenture
2013 Indenture	Supplemental indenture and related agreements dated August 12, 2013, relating to the 2013 Senior Notes
2013 Senior Notes	Principal amount of the $500 million, 4.875% senior unsecured notes due in February 2024 pursuant to the 2013 Indenture
2014 Indenture	Supplemental indenture and related agreements dated July 16, 2014, relating to the 2014 Senior Notes
2014 Senior Notes (5-Year)	Principal amount of $450 million, 2.75% senior unsecured notes due in July 2019
2014 Senior Notes (30-Year)	Principal amount of $600 million, 5.25% senior unsecured notes due in July 2044
2015 Facility	Five-year unsecured revolving credit facility, with capacity to borrow up to $1 billion; backstops CP issued under the CP Program
2015 Indenture	Supplemental indenture and related agreements dated March 9, 2015, relating to the 2015 Senior Notes
2015 Senior Notes	Principal amount of €500 million, 1.75% senior unsecured notes issued March 9, 2015 and due in March 2027
2017 Floating Rate Senior Notes	Principal amount of $300 million, floating rate senior unsecured notes due in September 2018
2017 Indenture	Collectively the Supplemental indenture and related agreements dated March 2, 2017, relating to the 2017 Floating Rate Senior Notes and 2017 Notes Due 2023 and 2028, and the supplemental indenture and related agreements dated June 12, 2017, relating to the 2017 Notes Due 2023 and 2028
2017 Senior Notes Due 2023	Principal amount of $500 million, 2.625% senior unsecured notes due January 15, 2023
2017 Senior Notes Due 2028	Principal amount of $500 million, 3.250% senior unsecured notes due January 15, 2028
2017 Senior Notes Due 2021	Principal amount of $500 million, 2.75% senior unsecured notes due in December 2021
2017 Term Loan	$500 million, three-year term loan facility entered into on June6, 2017 for which the Company drew down $500 million on August 8, 2017 to fund the acquisition of Bureau van Dijk
2018 Senior Notes	Principal amount of $300 million, 3.250% senior unsecured notes due June 7, 2021

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DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Moody’s is a provider of (i) credit ratings; (ii) credit, capital markets and economic research, data and analytical tools; (iii) software solutions that support financial risk management activities; (iv) quantitatively derived credit scores; (v) financial services training and certification services; (vi) offshore financial research and analytical services; and (vii) company information and business intelligence products. Moody’s reports in two reportable segments: MIS and MA.

MIS, the credit rating agency, publishes credit ratings on a wide range of debt obligations and the entities that issue such obligations in markets worldwide. Revenue is primarily derived from the originators and issuers of such transactions who use MIS ratings in the distribution of their debt issues to investors. Additionally, MIS earns revenue from certain non-ratings-related operations which consist primarily of financial instrument pricing services in the Asia-Pacific region as well as revenue from ICRA’s non-ratings operations. The revenue from these operations is included in the MIS Other LOB and is not material to the results of the MIS segment.

The MA segment develops a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets. Within its RD&A business, MA distributes research and data developed by MIS as part of its ratings process, including in-depth research on major debt issuers, industry studies and commentary on topical credit-related events. The RD&A business also produces economic research and data and analytical tools such as quantitative credit risk scores as well as business intelligence and company information products. Within its ERS business, MA provides software solutions as well as related risk management services. The PS business provides offshore analytical and research services along with financial training and certification programs.

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 2017 annual report on Form 10-K filed with the SEC on February 27, 2018. 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 accounting principles generally accepted in the United States of America.

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

Adoption of New Accounting Standards

On January 1, 2018, the Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers (ASC Topic 606)” using the modified retrospective approach which Moody’s has elected to apply only to those contracts which were not completed as of January 1, 2018. Additionally, the Company has not retrospectively restated contract positions for contract modifications made prior to the adoption. ASU No. 2014-09 also includes updates related to the accounting for the deferral of incremental costs of obtaining or fulfilling a contract with a customer (“ASC Subtopic 340-40”). Hereunder, discussion of the provisions of ASC Topic 606 and ASC Subtopic 340-40 are both individually and collectively referred to as the “New Revenue Accounting Standard.” Results for reporting periods beginning on January 1, 2018 are presented under the guidance set forth in the New Revenue Accounting Standard, while prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance.

The most significant impacts to the Company’s financial statements from adopting the New Revenue Accounting Standard are primarily related to: i) the accounting for certain installed software subscription revenue in MA whereby the license rights within the arrangement are recognized at the inception of the contract based on SSP with the remainder recognized over the subscription period (compared to ASC Topic 605 whereby all installed software subscription revenue was previously recognized over the subscription period); ii) the accounting for certain ERS and ESA revenue arrangements where VSOE was not available under ASC Topic 605 now results in the acceleration of revenue recognition (compared to ASC Topic 605 whereby revenue was deferred due to lack of VSOE until all elements without VSOE had been delivered); iii) sales commissions incurred in the MA segment will be capitalized and amortized over an extended period which is generally based upon the average economic life of products/services sold and incorporates anticipated subscription renewals (compared toprevious accounting guidance whereby capitalized sales commissions were amortized over the committed subscription period only); iv) the immediate expensing of software implementation project costs to fulfill a contract for its ERS and ESA businesses which under previous accounting guidance were capitalized and expensed when related project revenue was recognized; v) the capitalization of work-in-process costs for in-progress MIS ratings at the end of each reporting periodwhich under ASC Topic 605 were expensed as incurred; vi) the timing of when revenue for certain MIS ratings products is recognized; and vii) the estimation of variable consideration at contract inception whereas under ASC Topic 605companieswere not required to consider the amount of consideration for which it expected to be entitled.

The Company does not anticipate that applying the provisions of the New Revenue Accounting Standard will have a material impact to its 2018 consolidated Net Income. However, there could be quarterly fluctuations in the financial results of both MIS and MA, or there could be increases or decreases in revenues and expenses which would largely offset and not be material to totalconsolidated Net Income for the full year.

The table below provides detail relating to the adjustment to the Company’s retained earnings balance upon adoption of the New Revenue Accounting Standard:

Transition adjustment	Benefit to / (reduction of) January 1, 2018 Retained Earnings	Corresponding Balance Sheet Line Item
Recognition of MA deferred revenue / increase in MA unbilled receivables (1)	$108 million	Deferred revenue, Non-current portion of deferred revenue, Accounts receivable, Other assets
Increase to capitalized MA sales commissions (2)	$78 million	Other current assets, Other assets, Accounts payable and accrued liabilities
Capitalization of work-in-process for in-progress ratings	$9 million	Other current assets
Net impact of all other adjustments	$4 million	Various
Net increase in tax liability on the above	($43 million)	Deferred tax liabilities, net
Total post-tax adjustment	$156 million
(1) Represents deferred revenue as of December 31, 2017 as well as amounts then unbilled that would have been recognized as revenue in 2017 or earlier if the New Revenue Accounting Standard was then in effect. These amounts will not be recognized as revenue in future statements of operations. Conversely, revenue will be recorded to the Company's statement of operations in 2018 under the New Revenue Accounting Standard, which otherwise would have been recognized in periods subsequent to 2018 if accounted for under ASC Topic 605.
(2) Represents sales commissions that would have been capitalized as of December 31, 2017 if the New Revenue Accounting Standard was then in effect, but had previously been expensed by the Company under the previous accounting guidance. These sales commissions, as well as sales commissions incurred in 2018 related to new sales and renewals, will be amortized to expense in the statements of operations beginning in 2018 over an extended period generally based upon the average economic life of the products sold or over the period in which implementation and advisory services will be provided.

The table below presents the cumulative effect of the changes made to the Company’s consolidated balance sheet at January 1, 2018 for the adoption of the New Revenue Accounting Standard:

			As Reported December 31, 2017		Adjustment Due to New Revenue Accounting Standard		Balance at January 1, 2018
ASSETS
Current assets:
	Cash and cash equivalents		$	1,071.5	$	-	$	1,071.5
	Short-term investments			111.8		-		111.8
	Accounts receivable, net of allowances			1,147.2		16.8		1,164.0
	Other current assets			250.1		32.9		283.0
		Total current assets		2,580.6		49.7		2,630.3
Property and equipment, net				325.1		-		325.1
Goodwill				3,753.2		-		3,753.2
Intangible assets, net				1,631.6		-		1,631.6
Deferred tax assets, net				143.8		-		143.8
Other assets				159.9		71.3		231.2
		Total assets	$	8,594.2	$	121.0	$	8,715.2
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' (DEFICIT)/EQUITY
Current liabilities:
	Accounts payable and accrued liabilities		$	750.3	$	(0.8)	$	749.5
	Commercial paper			129.9		-		129.9
	Current portion of long-term debt			299.5		-		299.5
	Deferred revenue			883.6		(69.3)		814.3
		Total current liabilities		2,063.3		(70.1)		1,993.2
Non-current portion of deferred revenue				140.0		(8.0)		132.0
Long-term debt				5,111.1		-		5,111.1
Deferred tax liabilities, net				341.6		42.7		384.3
Unrecognized tax benefits				389.1		-		389.1
Other liabilities				664.0		0.3		664.3
		Total liabilities		8,709.1		(35.1)		8,674.0
Shareholders' (deficit) equity:
	Common stock			3.4		-		3.4
	Capital surplus			528.6		-		528.6
	Retained earnings			7,465.4		156.1		7,621.5
	Treasury stock			(8,152.9)		-		(8,152.9)
	Accumulated other comprehensive loss			(172.2)		-		(172.2)
		Total Moody's shareholders' (deficit) equity		(327.7)		156.1		(171.6)
	Noncontrolling interests			212.8		-		212.8
		Total shareholders' (deficit) equity		(114.9)		156.1		41.2
		Total liabilities, noncontrolling interests and shareholders' (deficit) equity	$	8,594.2	$	121.0	$	8,715.2

The below table presents the impacts on the Company’s statement of operations for the current reporting period from applying the provisions of the New Revenue Accounting Standard compared to the accounting standard in effect before the change:

			For the Three Months Ended June 30, 2018
			As Reported		Under previous accounting guidance		Effect ofChangeHigher/(Lower)
Revenue			$	1,175.1	$	1,169.9	$	5.2
Expenses
	Operating			320.2		320.7		(0.5)
	Selling, general and administrative			270.5		272.5		(2.0)
	Depreciation and amortization			48.4		48.4		-
	Acquisition-related expenses			2.0		2.0		-
		Total expenses		641.1		643.6		(2.5)
Operating income				534.0		526.3		7.7
Non-operating (expense) income, net
	Interest expense, net			(53.4)		(53.4)		-
	Other non-operating income, net			14.9		14.9		-
		Total non-operating (expense) income, net		(38.5)		(38.5)		-
Income before provision for income taxes				495.5		487.8		7.7
	Provision for income taxes			117.6		115.7		1.9
Net income				377.9		372.1		5.8
	Less: Net income attributable to noncontrolling interests			1.7		1.7		-
Net income attributable to Moody's			$	376.2	$	370.4	$	5.8
Earnings per share
	Basic		$	1.96	$	1.93	$	0.03
	Diluted		$	1.94	$	1.91	$	0.03
Weighted average shares outstanding
	Basic			191.9		191.9
	Diluted			194.4		194.4
			For the Six Months Ended June 30, 2018
			As Reported		Under previous accounting guidance		Effect ofChangeHigher/(Lower)
Revenue			$	2,301.8	$	2,296.3	$	5.5
Expenses
	Operating			635.1		636.2		(1.1)
	Selling, general and administrative			541.6		544.0		(2.4)
	Depreciation and amortization			97.5		97.5		-
	Acquisition-related expenses			2.8		2.8		-
		Total expenses		1,277.0		1,280.5		(3.5)
Operating income				1,024.8		1,015.8		9.0
Non-operating (expense) income, net
	Interest expense, net			(104.1)		(104.1)		-
	Other non-operating income, net			15.9		15.9		-
		Total non-operating (expense) income, net		(88.2)		(88.2)		-
Income before provision for income taxes				936.6		927.6		9.0
	Provision for income taxes			181.9		179.2		2.7
Net income				754.7		748.4		6.3
	Less: Net income attributable to noncontrolling interests			5.6		5.6		-
Net income attributable to Moody's			$	749.1	$	742.8	$	6.3
Earnings per share
	Basic		$	3.91	$	3.88	$	0.03
	Diluted		$	3.85	$	3.82	$	0.03
Weighted average shares outstanding
	Basic			191.6		191.6
	Diluted			194.5		194.5

	As Reported June 30, 2018		Under previous accounting guidance June 30, 2018		Effect of Change Higher/(Lower)
ASSETS
Current assets:
Cash and cash equivalents	$	1,314.5	$	1,314.5	$	-
Short-term investments		101.2		101.2		-
Accounts receivable, net of allowances		1,137.1		1,122.9		14.2
Other current assets		286.9		264.2		22.7
Total current assets:		2,839.7		2,802.8		36.9
Property and equipment, net		312.2		312.2		-
Goodwill		3,662.7		3,662.7		-
Intangible assets, net		1,541.4		1,541.4		-
Deferred tax assets, net		136.6		136.5		0.1
Other assets		259.0		189.0		70.0
Total assets	$	8,751.6	$	8,644.6	$	107.0
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY
Accounts payable and accrued liabilities	$	593.6	$	593.4	$	0.2
Commercial paper		89.9		89.9		-
Current portion of long-term debt		299.9		299.9		-
Deferred revenue		860.5		930.8		(70.3)
Total current liabilities		1,843.9		1,914.0		(70.1)
Non-current portion of deferred revenue		126.0		133.6		(7.6)
Long-term debt		4,934.2		4,934.2		-
Deferred tax liabilities, net		363.2		335.1		28.1
Unrecognized tax benefits		398.3		398.3		-
Other liabilities		625.9		625.6		0.3
Total liabilities		8,291.5		8,340.8		(49.3)
Shareholders' equity:
Common stock		3.4		3.4		-
Capital surplus		538.6		538.6		-
Retained earnings		8,204.6		8,048.3		156.3
Treasury stock		(8,198.9)		(8,198.9)		-
Accumulated other comprehensive loss		(304.8)		(304.8)		-
Total Moody's shareholders' equity		242.9		86.6		156.3
Noncontrolling interests		217.2		217.2		-
Total shareholders' equity		460.1		303.8		156.3
Total liabilities, noncontrolling interests and shareholders' equity	$	8,751.6	$	8,644.6	$	107.0

The below table presents the impacts on various line items within the operating cash flow within the Company’s statement of cash flows for the current reporting period from applying the provisions of the New Revenue Accounting Standard compared to the accounting standard in effect before the change.

				For the Six Months Ended June 30, 2018
				As Reported		Under previous accounting guidance		Effect of Change
Cash flows from operating activities
	Net income			$	754.7	$	748.4	$	6.3
	Reconciliation of net income to net cash provided by operating activities:
		Depreciation and amortization			97.5		97.5		-
		Stock-based compensation			69.5		69.5		-
		Deferred income taxes			(12.1)		2.0		(14.1)
		Changes in assets and liabilities:
			Accounts receivable		17.8		15.2		2.6
			Other current assets		(10.2)		(20.4)		10.2
			Other assets		(14.3)		(21.0)		6.7
			Accounts payable and accrued liabilities		(163.2)		(158.1)		(5.1)
			Deferred revenue		55.3		55.9		(0.6)
			Unrecognized tax benefits and other non-current tax liabilities		(33.6)		(33.6)		-
			Other liabilities		15.9		21.9		(6.0)
	Net cash provided by operating activities			$	777.3	$	777.3	$	-

The New Revenue Accounting Standard did not have any impact on individual line items within investing or financing cash flows in the Company’s consolidated statement of cash flows. In 2018, the adoption of the New Revenue Accounting Standard will likely result in higher cash taxes as the cumulative catch-up adjustment to retained earnings is taxable and there is expected to be acceleration of revenue recognition under the New Revenue Accounting Standard.

On January 1, 2018, the Company adopted ASU No. 2017-07, “Compensation—Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. As required by this ASU, the components of net periodic pension costs were disaggregated in the statement of operations on a retrospective basis. The Company has continued to reflect the service cost component in either Operating or SG&A expenses in Moody’s statement of operations. The other components of net benefit cost are presented within non-operating (expense) income, net, within the statement of operations. The adoption of this ASU has no impact on Net Income in the Company’s statements of operations. The impact to the Company’s statements of operations for the threeand sixmonths ended June 30, 2018 and 2017 related to the adoption of this ASU are set forth in the table below:

	For the Three Months Ended June 30, 2018						For the Three Months Ended June 30, 2017
	As Reported		Under previous accounting guidance		Effect of ChangeHigher/(Lower)		As Adjusted		Under previous accounting guidance		Effect of ChangeHigher/(Lower)
Operating expenses	$	320.2	$	321.0	$	(0.8)	$	284.8	$	285.8	$	(1.0)
Selling, general and administrative expenses		270.5		271.7		(1.2)		216.1		217.7		(1.6)
Operating income		534.0		532.0		2.0		460.1		457.5		2.6
Interest expense, net		(53.4)		(48.5)		(4.9)		(49.7)		(45.0)		(4.7)
Other non-operating income (expense), net		14.9		12.0		2.9		10.4		8.3		2.1
	For the Six Months Ended June 30, 2018						For the Six Months Ended June 30, 2017
	As Reported		Under previous accounting guidance		Effect of ChangeHigher/(Lower)		As Adjusted		Under previous accounting guidance		Effect of ChangeHigher/(Lower)
Operating expenses	$	635.1	$	637.4	$	(2.3)	$	560.1	$	563.2	$	(3.1)
Selling, general and administrative expenses		541.6		543.7		(2.1)		436.8		439.6		(2.8)
Operating income		1,024.8		1,020.4		4.4		906.8		900.9		5.9
Interest expense, net		(104.1)		(94.5)		(9.6)		(97.1)		(87.4)		(9.7)
Other non-operating income (expense), net		15.9		10.7		5.2		2.7		(1.1)		3.8

On January 1, 2018, the Company adopted ASU No. 2016-01 “Financial Instruments—Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The amendments in this ASU update various aspects of recognition, measurement, presentation and disclosures relating to financial instruments. Upon adoption, the Company recorded a $2.3 million cumulative adjustment to reclassify net unrealized gains on investments in equity securities previously classified as available-for-sale under the previous guidance from AOCI to retained earnings. Beginning in the first quarter of 2018, the Company will measure equity investments with readily determinable fair values (except those accounted for under the equity method, those that result in consolidation of the investee and certain other investments) at fair value and recognize any changes in fair value in net income. The adoption of this ASU did not have material impact on the Company’s financial statements for the three and six months ended June 30, 2018.

In March 2018, the FASB issued ASU No. 2018-05, "Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118". This ASU adds SEC paragraphs to the codification pursuant to the SEC Staff Accounting Bulletin No. 118, which addresses the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to finalize the calculations for the 2017 income tax effects of the Tax Act. This ASU provides entities with a one year measurement period from the December 22, 2017 enactment date, in order to complete the accounting for the effects of the Tax Act. The Company has recorded a provisional estimate for the transition tax relating to the Tax Act which is more fully described in Note 5. This provisional estimate may be impacted by a number of additional considerations, including but not limited to the issuance of regulations and the Company’s ongoing analysis of the new law.

On January 1, 2018, the Company adopted ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)” on a retrospective basis. This ASU reduces diversity in practice in how certain transactions are reflected in the statement of cash flows. Pursuant to the adoption of this ASU, the Company reclassified $7.1 million in cash paid in the first half of 2017 relating to a Make-Whole provision upon the repayment of the Series 2007-1 Notes from cash flows used in operations to cash flows provided by financing activities.

During the second quarter of 2018, the Company early adopted ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”. This ASU fosters enhanced transparency relating to risk management activities and simplifies the application of hedge accounting in certain circumstances. The adoption of this ASU did not have an impact on the Company’s financial statements at the date of adoption. Refer to Note 9 for further discussion on the prospective impact of this ASU on the Company’s financial statements.

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DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Cumulative Adjustment to Retained earnings due to prospective adoption of new revenue guidance

Transition adjustment	Benefit to / (reduction of) January 1, 2018 Retained Earnings	Corresponding Balance Sheet Line Item
Recognition of MA deferred revenue / increase in MA unbilled receivables (1)	$108 million	Deferred revenue, Non-current portion of deferred revenue, Accounts receivable, Other assets
Increase to capitalized MA sales commissions (2)	$78 million	Other current assets, Other assets, Accounts payable and accrued liabilities
Capitalization of work-in-process for in-progress ratings	$9 million	Other current assets
Net impact of all other adjustments	$4 million	Various
Net increase in tax liability on the above	($43 million)	Deferred tax liabilities, net
Total post-tax adjustment	$156 million
(1) Represents deferred revenue as of December 31, 2017 as well as amounts then unbilled that would have been recognized as revenue in 2017 or earlier if the New Revenue Accounting Standard was then in effect. These amounts will not be recognized as revenue in future statements of operations. Conversely, revenue will be recorded to the Company's statement of operations in 2018 under the New Revenue Accounting Standard, which otherwise would have been recognized in periods subsequent to 2018 if accounted for under ASC Topic 605.
(2) Represents sales commissions that would have been capitalized as of December 31, 2017 if the New Revenue Accounting Standard was then in effect, but had previously been expensed by the Company under the previous accounting guidance. These sales commissions, as well as sales commissions incurred in 2018 related to new sales and renewals, will be amortized to expense in the statements of operations beginning in 2018 over an extended period generally based upon the average economic life of the products sold or over the period in which implementation and advisory services will be provided.

New Revenue Accounting Standard [Member] | Balance Sheets [Member]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

	As Reported June 30, 2018		Under previous accounting guidance June 30, 2018		Effect of Change Higher/(Lower)
ASSETS
Current assets:
Cash and cash equivalents	$	1,314.5	$	1,314.5	$	-
Short-term investments		101.2		101.2		-
Accounts receivable, net of allowances		1,137.1		1,122.9		14.2
Other current assets		286.9		264.2		22.7
Total current assets:		2,839.7		2,802.8		36.9
Property and equipment, net		312.2		312.2		-
Goodwill		3,662.7		3,662.7		-
Intangible assets, net		1,541.4		1,541.4		-
Deferred tax assets, net		136.6		136.5		0.1
Other assets		259.0		189.0		70.0
Total assets	$	8,751.6	$	8,644.6	$	107.0
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY
Accounts payable and accrued liabilities	$	593.6	$	593.4	$	0.2
Commercial paper		89.9		89.9		-
Current portion of long-term debt		299.9		299.9		-
Deferred revenue		860.5		930.8		(70.3)
Total current liabilities		1,843.9		1,914.0		(70.1)
Non-current portion of deferred revenue		126.0		133.6		(7.6)
Long-term debt		4,934.2		4,934.2		-
Deferred tax liabilities, net		363.2		335.1		28.1
Unrecognized tax benefits		398.3		398.3		-
Other liabilities		625.9		625.6		0.3
Total liabilities		8,291.5		8,340.8		(49.3)
Shareholders' equity:
Common stock		3.4		3.4		-
Capital surplus		538.6		538.6		-
Retained earnings		8,204.6		8,048.3		156.3
Treasury stock		(8,198.9)		(8,198.9)		-
Accumulated other comprehensive loss		(304.8)		(304.8)		-
Total Moody's shareholders' equity		242.9		86.6		156.3
Noncontrolling interests		217.2		217.2		-
Total shareholders' equity		460.1		303.8		156.3
Total liabilities, noncontrolling interests and shareholders' equity	$	8,751.6	$	8,644.6	$	107.0

New Revenue Accounting Standard [Member] | Income Statement [Member]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

			For the Three Months Ended June 30, 2018
			As Reported		Under previous accounting guidance		Effect ofChangeHigher/(Lower)
Revenue			$	1,175.1	$	1,169.9	$	5.2
Expenses
	Operating			320.2		320.7		(0.5)
	Selling, general and administrative			270.5		272.5		(2.0)
	Depreciation and amortization			48.4		48.4		-
	Acquisition-related expenses			2.0		2.0		-
		Total expenses		641.1		643.6		(2.5)
Operating income				534.0		526.3		7.7
Non-operating (expense) income, net
	Interest expense, net			(53.4)		(53.4)		-
	Other non-operating income, net			14.9		14.9		-
		Total non-operating (expense) income, net		(38.5)		(38.5)		-
Income before provision for income taxes				495.5		487.8		7.7
	Provision for income taxes			117.6		115.7		1.9
Net income				377.9		372.1		5.8
	Less: Net income attributable to noncontrolling interests			1.7		1.7		-
Net income attributable to Moody's			$	376.2	$	370.4	$	5.8
Earnings per share
	Basic		$	1.96	$	1.93	$	0.03
	Diluted		$	1.94	$	1.91	$	0.03
Weighted average shares outstanding
	Basic			191.9		191.9
	Diluted			194.4		194.4
			For the Six Months Ended June 30, 2018
			As Reported		Under previous accounting guidance		Effect ofChangeHigher/(Lower)
Revenue			$	2,301.8	$	2,296.3	$	5.5
Expenses
	Operating			635.1		636.2		(1.1)
	Selling, general and administrative			541.6		544.0		(2.4)
	Depreciation and amortization			97.5		97.5		-
	Acquisition-related expenses			2.8		2.8		-
		Total expenses		1,277.0		1,280.5		(3.5)
Operating income				1,024.8		1,015.8		9.0
Non-operating (expense) income, net
	Interest expense, net			(104.1)		(104.1)		-
	Other non-operating income, net			15.9		15.9		-
		Total non-operating (expense) income, net		(88.2)		(88.2)		-
Income before provision for income taxes				936.6		927.6		9.0
	Provision for income taxes			181.9		179.2		2.7
Net income				754.7		748.4		6.3
	Less: Net income attributable to noncontrolling interests			5.6		5.6		-
Net income attributable to Moody's			$	749.1	$	742.8	$	6.3
Earnings per share
	Basic		$	3.91	$	3.88	$	0.03
	Diluted		$	3.85	$	3.82	$	0.03
Weighted average shares outstanding
	Basic			191.6		191.6
	Diluted			194.5		194.5

New Revenue Accounting Standard [Member] | Cash Flow [Member]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

				For the Six Months Ended June 30, 2018
				As Reported		Under previous accounting guidance		Effect of Change
Cash flows from operating activities
	Net income			$	754.7	$	748.4	$	6.3
	Reconciliation of net income to net cash provided by operating activities:
		Depreciation and amortization			97.5		97.5		-
		Stock-based compensation			69.5		69.5		-
		Deferred income taxes			(12.1)		2.0		(14.1)
		Changes in assets and liabilities:
			Accounts receivable		17.8		15.2		2.6
			Other current assets		(10.2)		(20.4)		10.2
			Other assets		(14.3)		(21.0)		6.7
			Accounts payable and accrued liabilities		(163.2)		(158.1)		(5.1)
			Deferred revenue		55.3		55.9		(0.6)
			Unrecognized tax benefits and other non-current tax liabilities		(33.6)		(33.6)		-
			Other liabilities		15.9		21.9		(6.0)
	Net cash provided by operating activities			$	777.3	$	777.3	$	-

Cumulative Effect on Start Period [Member] | New Revenue Accounting Standard [Member] | Balance Sheets [Member]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

			As Reported December 31, 2017		Adjustment Due to New Revenue Accounting Standard		Balance at January 1, 2018
ASSETS
Current assets:
	Cash and cash equivalents		$	1,071.5	$	-	$	1,071.5
	Short-term investments			111.8		-		111.8
	Accounts receivable, net of allowances			1,147.2		16.8		1,164.0
	Other current assets			250.1		32.9		283.0
		Total current assets		2,580.6		49.7		2,630.3
Property and equipment, net				325.1		-		325.1
Goodwill				3,753.2		-		3,753.2
Intangible assets, net				1,631.6		-		1,631.6
Deferred tax assets, net				143.8		-		143.8
Other assets				159.9		71.3		231.2
		Total assets	$	8,594.2	$	121.0	$	8,715.2
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' (DEFICIT)/EQUITY
Current liabilities:
	Accounts payable and accrued liabilities		$	750.3	$	(0.8)	$	749.5
	Commercial paper			129.9		-		129.9
	Current portion of long-term debt			299.5		-		299.5
	Deferred revenue			883.6		(69.3)		814.3
		Total current liabilities		2,063.3		(70.1)		1,993.2
Non-current portion of deferred revenue				140.0		(8.0)		132.0
Long-term debt				5,111.1		-		5,111.1
Deferred tax liabilities, net				341.6		42.7		384.3
Unrecognized tax benefits				389.1		-		389.1
Other liabilities				664.0		0.3		664.3
		Total liabilities		8,709.1		(35.1)		8,674.0
Shareholders' (deficit) equity:
	Common stock			3.4		-		3.4
	Capital surplus			528.6		-		528.6
	Retained earnings			7,465.4		156.1		7,621.5
	Treasury stock			(8,152.9)		-		(8,152.9)
	Accumulated other comprehensive loss			(172.2)		-		(172.2)
		Total Moody's shareholders' (deficit) equity		(327.7)		156.1		(171.6)
	Noncontrolling interests			212.8		-		212.8
		Total shareholders' (deficit) equity		(114.9)		156.1		41.2
		Total liabilities, noncontrolling interests and shareholders' (deficit) equity	$	8,594.2	$	121.0	$	8,715.2

Cumulative Effect on Start Period [Member] | Compensation-Retirement Benefits Accounting Standard [Member] | Income Statement [Member]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

	For the Three Months Ended June 30, 2018						For the Three Months Ended June 30, 2017
	As Reported		Under previous accounting guidance		Effect of ChangeHigher/(Lower)		As Adjusted		Under previous accounting guidance		Effect of ChangeHigher/(Lower)
Operating expenses	$	320.2	$	321.0	$	(0.8)	$	284.8	$	285.8	$	(1.0)
Selling, general and administrative expenses		270.5		271.7		(1.2)		216.1		217.7		(1.6)
Operating income		534.0		532.0		2.0		460.1		457.5		2.6
Interest expense, net		(53.4)		(48.5)		(4.9)		(49.7)		(45.0)		(4.7)
Other non-operating income (expense), net		14.9		12.0		2.9		10.4		8.3		2.1
	For the Six Months Ended June 30, 2018						For the Six Months Ended June 30, 2017
	As Reported		Under previous accounting guidance		Effect of ChangeHigher/(Lower)		As Adjusted		Under previous accounting guidance		Effect of ChangeHigher/(Lower)
Operating expenses	$	635.1	$	637.4	$	(2.3)	$	560.1	$	563.2	$	(3.1)
Selling, general and administrative expenses		541.6		543.7		(2.1)		436.8		439.6		(2.8)
Operating income		1,024.8		1,020.4		4.4		906.8		900.9		5.9
Interest expense, net		(104.1)		(94.5)		(9.6)		(97.1)		(87.4)		(9.7)
Other non-operating income (expense), net		15.9		10.7		5.2		2.7		(1.1)		3.8

XML

Adjustment to Retained Earnings (Detail) - Retained Earnings [Member] - New Revenue Accounting Standard [Member] $ in Millions	Jun. 30, 2018 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Effect of adoption adjustment Reduction to retained earnings	$ 156.0
Capitalization of Work-In-Process for In-Progress Ratings [Member] | Other Current Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Effect of adoption adjustment Reduction to retained earnings	9.0
Other Adjustments [Member] | Various Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Effect of adoption adjustment Reduction to retained earnings	4.0
Increase in Tax Liability [Member] | Deferred Tax Liabilities [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Effect of adoption adjustment Reduction to retained earnings	(43.0)
MA [Member] | Recognition of Deferred Revenue / Increase in Unbilled Receivables [Member] | Deferred Revenue Accounts Receivable and Other Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Effect of adoption adjustment Reduction to retained earnings	108.0
MA [Member] | Increase to Capitalized Sales Commissions [Member] | Other current assets, Other assets, Accounts Payable and Accrued Liabilities [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Effect of adoption adjustment Reduction to retained earnings	$ 78.0

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Cumulative Effect of the Change in Beginning Financial Position for the adoption of Revenue Accounting Standard (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,314.5			$ 1,071.5	$ 3,280.9		$ 2,051.5
Short-term investments	101.2			111.8
Accounts receivable, net of allowances	1,137.1			1,147.2
Other current assets	286.9			250.1
Assets Current	2,839.7			2,580.6
Property and equipment, net	312.2			325.1
Goodwill	3,662.7			3,753.2			1,023.6
Intangible assets, net	1,541.4			1,631.6
Deferred tax assets, net	136.6			143.8
Other assets	259.0			159.9
Total Assets	8,751.6			8,594.2
Current liabilities:
Accounts payable and accrued liabilities	593.6			750.3
Commercial paper	89.9			129.9
Current portion of long-term debt	299.9			299.5
Deferred revenue	860.5			883.6
Total current liabilities	1,843.9			2,063.3
Non-current portion of deferred revenue	126.0			140.0
Long-term debt	4,934.2			5,111.1
Deferred tax liabilities, net	363.2			341.6
Unrecognized tax benefits	398.3			389.1
Other liabilities	625.9			664.0
Total liabilities	8,291.5			8,709.1
Shareholders' (deficit) equity
Common stock	3.4			3.4
Capital surplus	538.6			528.6
Retained earnings	8,204.6			7,465.4
Treasury stock, value	(8,198.9)			(8,152.9)
Accumulated other comprehensive loss	(304.8)	$ (51.9)		(172.2)	$ (309.7)	$ (357.3)	(364.9)
Total Moody's shareholders' deficit	242.9			(327.7)
Noncontrolling interests	217.2			212.8			$ 197.7
Total shareholders' deficit	460.1			(114.9)
Total liabilities and shareholders' (deficit) equity	8,751.6			$ 8,594.2
New Revenue Accounting Standard [Member]
Current assets:
Cash and cash equivalents			$ 1,071.5
Short-term investments			111.8
Accounts receivable, net of allowances			1,164.0
Other current assets			283.0
Assets Current			2,630.3
Property and equipment, net			325.1
Goodwill			3,753.2
Intangible assets, net			1,631.6
Deferred tax assets, net			143.8
Other assets			231.2
Total Assets			8,715.2
Current liabilities:
Accounts payable and accrued liabilities			749.5
Commercial paper			129.9
Current portion of long-term debt			299.5
Deferred revenue			814.3
Total current liabilities			1,993.2
Non-current portion of deferred revenue			132.0
Long-term debt			5,111.1
Deferred tax liabilities, net			384.3
Unrecognized tax benefits			389.1
Other liabilities			664.3
Total liabilities			8,674.0
Shareholders' (deficit) equity
Common stock			3.4
Capital surplus			528.6
Retained earnings			7,621.5
Treasury stock, value			(8,152.9)
Accumulated other comprehensive loss			(172.2)
Total Moody's shareholders' deficit			(171.6)
Noncontrolling interests			212.8
Total shareholders' deficit			41.2
Total liabilities and shareholders' (deficit) equity			8,715.2
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | New Revenue Accounting Standard [Member]
Current assets:
Accounts receivable, net of allowances	14.2		16.8
Other current assets	22.7		32.9
Assets Current	36.9		49.7
Deferred tax assets, net	0.1
Other assets	70.0		71.3
Total Assets	107.0		121.0
Current liabilities:
Accounts payable and accrued liabilities	0.2		(0.8)
Deferred revenue	(70.3)		(69.3)
Total current liabilities	(70.1)		(70.1)
Non-current portion of deferred revenue	(7.6)		(8.0)
Deferred tax liabilities, net	28.1		42.7
Other liabilities	0.3		0.3
Total liabilities	(49.3)		(35.1)
Shareholders' (deficit) equity
Retained earnings	156.3		156.1
Total Moody's shareholders' deficit	156.3		156.1
Total shareholders' deficit	156.3		156.1
Total liabilities and shareholders' (deficit) equity	$ 107.0		$ 121.0

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Effect of Change in Income Statement due to adoption of Revenue Accounting Standard (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 1,175.1	$ 1,000.5	$ 2,301.8	$ 1,975.7
Expenses
Operating	320.2	284.8	635.1	560.1
Selling, general and administrative	270.5	216.1	541.6	436.8
Depreciation and amortization	48.4	32.9	97.5	65.4
Acquisition-Related Expenses	2.0	6.6	2.8	6.6
Total expenses	641.1	540.4	1,277.0	1,068.9
Operating income	534.0	460.1	1,024.8	906.8
Non-operating (expense) income, net
Interest income (expense), net	(53.4)	(49.7)	(104.1)	(97.1)
Other non-operating income (expense), net	14.9	10.4	15.9	2.7
Total non-operating (expense) income, net	(38.5)	1.9	(88.2)	6.5
Income before provisions for income taxes	495.5	462.0	936.6	913.3
Provision for income taxes	117.6	148.4	181.9	253.8
Net income	377.9	313.6	754.7	659.5
Less: Net income attributable to noncontrolling interests	1.7	1.4	5.6	1.7
Net income attributable to Moody's	$ 376.2	$ 312.2	$ 749.1	$ 657.8
Earnings per share attributable to Moody's common shareholders
Basic	$ 1.96	$ 1.63	$ 3.91	$ 3.44
Diluted	$ 1.94	$ 1.61	$ 3.85	$ 3.39
Weighted average number of shares outstanding
Basic	191.9	191.0	191.6	191.1
Diluted	194.4	193.8	194.5	194.1
Under Previous Accounting Guidance [Member] | New Revenue Accounting Standard [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 1,169.9		$ 2,296.3
Expenses
Operating	320.7		636.2
Selling, general and administrative	272.5		544.0
Depreciation and amortization	48.4		97.5
Acquisition-Related Expenses	2.0		2.8
Total expenses	643.6		1,280.5
Operating income	526.3		1,015.8
Non-operating (expense) income, net
Interest income (expense), net	(53.4)		(104.1)
Other non-operating income (expense), net	14.9		15.9
Total non-operating (expense) income, net	(38.5)		(88.2)
Income before provisions for income taxes	487.8		927.6
Provision for income taxes	115.7		179.2
Net income	372.1		748.4
Less: Net income attributable to noncontrolling interests	1.7		5.6
Net income attributable to Moody's	$ 370.4		$ 742.8
Earnings per share attributable to Moody's common shareholders
Basic	$ 1.93		$ 3.88
Diluted	$ 1.91		$ 3.82
Weighted average number of shares outstanding
Basic	191.9		191.6
Diluted	194.4		194.5
Effect of Change [Member] | New Revenue Accounting Standard [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 5.2		$ 5.5
Expenses
Operating	(0.5)		(1.1)
Selling, general and administrative	(2.0)		(2.4)
Total expenses	(2.5)		(3.5)
Operating income	7.7		9.0
Non-operating (expense) income, net
Income before provisions for income taxes	7.7		9.0
Provision for income taxes	1.9		2.7
Net income	5.8		6.3
Net income attributable to Moody's	$ 5.8		$ 6.3
Earnings per share attributable to Moody's common shareholders
Basic	$ 0.03		$ 0.03
Diluted	$ 0.03		$ 0.03

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Effect of Change in Balance Sheets from applying the Provision of the Revenue Accounting Standard (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,314.5			$ 1,071.5	$ 3,280.9		$ 2,051.5
Short-term investments	101.2			111.8
Accounts receivable, net of allowances	1,137.1			1,147.2
Other current assets	286.9			250.1
Total current assets	2,839.7			2,580.6
Property and equipment, net	312.2			325.1
Goodwill	3,662.7			3,753.2			1,023.6
Intangible assets, net	1,541.4			1,631.6
Deferred tax assets, net	136.6			143.8
Other assets	259.0			159.9
Total Assets	8,751.6			8,594.2
Current liabilities:
Accounts payable and accrued liabilities	593.6			750.3
Commercial Paper	89.9			129.9
Current portion of long-term debt	299.9			299.5
Deferred revenue	860.5			883.6
Liabilities Current	1,843.9			2,063.3
Non-current portion of deferred revenue	126.0			140.0
Long-term debt	4,934.2			5,111.1
Deferred tax liabilities, net	363.2			341.6
Unrecognized tax benefits	398.3			389.1
Other liabilities	625.9			664.0
Total liabilities	8,291.5			8,709.1
Shareholders' (deficit) equity
Common stock	3.4			3.4
Capital surplus	538.6			528.6
Retained earnings	8,204.6			7,465.4
Treasury stock, value	(8,198.9)			(8,152.9)
Accumulated other comprehensive loss	(304.8)	$ (51.9)		(172.2)	$ (309.7)	$ (357.3)	(364.9)
Total Moody's shareholders' deficit	242.9			(327.7)
Noncontrolling interests	217.2			212.8			$ 197.7
Total shareholders' deficit	460.1			(114.9)
Total liabilities and shareholders' (deficit) equity	8,751.6			$ 8,594.2
New Revenue Accounting Standard [Member]
Current assets:
Cash and cash equivalents			$ 1,071.5
Short-term investments			111.8
Accounts receivable, net of allowances			1,164.0
Other current assets			283.0
Total current assets			2,630.3
Property and equipment, net			325.1
Goodwill			3,753.2
Intangible assets, net			1,631.6
Deferred tax assets, net			143.8
Other assets			231.2
Total Assets			8,715.2
Current liabilities:
Accounts payable and accrued liabilities			749.5
Commercial Paper			129.9
Current portion of long-term debt			299.5
Deferred revenue			814.3
Liabilities Current			1,993.2
Non-current portion of deferred revenue			132.0
Long-term debt			5,111.1
Deferred tax liabilities, net			384.3
Unrecognized tax benefits			389.1
Other liabilities			664.3
Total liabilities			8,674.0
Shareholders' (deficit) equity
Common stock			3.4
Capital surplus			528.6
Retained earnings			7,621.5
Treasury stock, value			(8,152.9)
Accumulated other comprehensive loss			(172.2)
Total Moody's shareholders' deficit			(171.6)
Noncontrolling interests			212.8
Total shareholders' deficit			41.2
Total liabilities and shareholders' (deficit) equity			8,715.2
Under Previous Accounting Guidance [Member] | New Revenue Accounting Standard [Member]
Current assets:
Cash and cash equivalents	1,314.5
Short-term investments	101.2
Accounts receivable, net of allowances	1,122.9
Other current assets	264.2
Total current assets	2,802.8
Property and equipment, net	312.2
Goodwill	3,662.7
Intangible assets, net	1,541.4
Deferred tax assets, net	136.5
Other assets	189.0
Total Assets	8,644.6
Current liabilities:
Accounts payable and accrued liabilities	593.4
Commercial Paper	89.9
Current portion of long-term debt	299.9
Deferred revenue	930.8
Liabilities Current	1,914.0
Non-current portion of deferred revenue	133.6
Long-term debt	4,934.2
Deferred tax liabilities, net	335.1
Unrecognized tax benefits	398.3
Other liabilities	625.6
Total liabilities	8,340.8
Shareholders' (deficit) equity
Common stock	3.4
Capital surplus	538.6
Retained earnings	8,048.3
Treasury stock, value	8,198.9
Accumulated other comprehensive loss	(304.8)
Total Moody's shareholders' deficit	86.6
Noncontrolling interests	217.2
Total shareholders' deficit	303.8
Total liabilities and shareholders' (deficit) equity	8,644.6
Effect of Change [Member] | New Revenue Accounting Standard [Member]
Current assets:
Accounts receivable, net of allowances	14.2		16.8
Other current assets	22.7		32.9
Total current assets	36.9		49.7
Deferred tax assets, net	0.1
Other assets	70.0		71.3
Total Assets	107.0		121.0
Current liabilities:
Accounts payable and accrued liabilities	0.2		(0.8)
Deferred revenue	(70.3)		(69.3)
Liabilities Current	(70.1)		(70.1)
Non-current portion of deferred revenue	(7.6)		(8.0)
Deferred tax liabilities, net	28.1		42.7
Other liabilities	0.3		0.3
Total liabilities	(49.3)		(35.1)
Shareholders' (deficit) equity
Retained earnings	156.3		156.1
Total Moody's shareholders' deficit	156.3		156.1
Total shareholders' deficit	156.3		156.1
Total liabilities and shareholders' (deficit) equity	$ 107.0		$ 121.0

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Effect of Change within Cash Flow from applying the Provision of the Revenue Accounting Standard (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income	$ 377.9	$ 313.6	$ 754.7	$ 659.5
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	48.4	32.9	97.5	65.4
Stock-based compensation expense	34.4	$ 28.7	69.5	57.1
Deferred income taxes			(12.1)	193.5
Changes in assets and liabilities:
Accounts receivable			17.8	(16.5)
Other current assets			(10.2)	(91.0)
Other assets			(14.3)	8.9
Accounts payable and accrued liabilities			(163.2)	(877.4)
Deferred revenue			55.3	43.9
Unrecognized tax benefits and other non-current tax liabilities			(33.6)	8.4
Other liabilities			15.9	8.5
Net cash provided by (used in) operating activities			777.3	$ (40.6)
Under Previous Accounting Guidance [Member] | New Revenue Accounting Standard [Member]
Cash flows from operating activities
Net income	372.1		748.4
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	48.4		97.5
Stock-based compensation expense			69.5
Deferred income taxes			2.0
Changes in assets and liabilities:
Accounts receivable			15.2
Other current assets			(20.4)
Other assets			(21.0)
Accounts payable and accrued liabilities			(158.1)
Deferred revenue			55.9
Unrecognized tax benefits and other non-current tax liabilities			(33.6)
Other liabilities			21.9
Net cash provided by (used in) operating activities			777.3
Effect of Change [Member] | New Revenue Accounting Standard [Member]
Cash flows from operating activities
Net income	$ 5.8		6.3
Reconciliation of net income to net cash provided by operating activities:
Deferred income taxes			(14.1)
Changes in assets and liabilities:
Accounts receivable			2.6
Other current assets			10.2
Other assets			6.7
Accounts payable and accrued liabilities			(5.1)
Deferred revenue			(0.6)
Other liabilities			$ (6.0)

XML

Effect of Change within Income Statement related to the Adoption of New Compensation - Retirement Benefit Policy (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Operating expenses	$ 320.2	$ 284.8	$ 635.1	$ 560.1
Selling, general and administrative	270.5	216.1	541.6	436.8
Operating income	534.0	460.1	1,024.8	906.8
Interest expense, net	(53.4)	(49.7)	(104.1)	(97.1)
Other non-operating income (expense), net	14.9	10.4	15.9	2.7
Compensation-Retirement Benefits Accounting Standard [Member] | Previous Accounting Guidance [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Operating expenses	321.0	285.8	637.4	563.2
Selling, general and administrative	271.7	217.7	543.7	439.6
Operating income	532.0	457.5	1,020.4	900.9
Interest expense, net	(48.5)	(45.0)	(94.5)	(87.4)
Other non-operating income (expense), net	12.0	8.3	10.7	(1.1)
Compensation-Retirement Benefits Accounting Standard [Member] | Effect of Change [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Operating expenses	(0.8)	(1.0)	(2.3)	(3.1)
Selling, general and administrative	(1.2)	(1.6)	(2.1)	(2.8)
Operating income	2.0	2.6	4.4	5.9
Interest expense, net	(4.9)	(4.7)	(9.6)	(9.7)
Other non-operating income (expense), net	$ 2.9	$ 2.1	$ 5.2	$ 3.8

XML

Description of Business and Basis of Presentation - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Number of reportable segments	2
Accounting Standards Update 2016-01 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Amount reclassified from AOCI, Available fo Sale Securities - Net of Tax	$ (2.3)
Accounting Standards Update 2016-01 [Member] | Series 2007-1 Notes [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Item]
Prepayment penalities of notes		$ 7.1

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company adopted the New Revenue Accounting Standard on January 1, 2018 using the modified retrospective transition method. Below are the Company’s revised accounting policies reflecting the provisions of the New Revenue Accounting Standard; ASU 2016-01 (as codified under ASC Topic 321) relating to the accounting for financial instruments; andthe amendments to ASC Topic 815 as a result of the Company’s second quarter adoption of ASU 2017-12 relating to derivative instruments and hedging activities. The Company’s adoption of these ASUs is further discussed in Note 1. All other significant accounting policies described in the Form 10-K for the year ended December 31, 2017 remain unchanged. Also refer to Note 3 of the condensed consolidated financial statements for certain quantitative disclosures relating to the Company’s revenue from contracts with customers.

Revenue Recognition and Costs to Obtain or Fulfill a Contract with a Customer

Revenue recognition:

Revenue is recognized when control of promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

When contracts with customers contain multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to each distinct performance obligation on a relative SSP basis. The Company determines the SSP by using the price charged for a deliverable when sold separately or uses management’s best estimate of SSP for goods or services not sold separately based on the maximum number of observable data points, including: internal factors relevant to its pricing practices such as costs and margin objectives; standalone sales prices of similar products; percentage of the fee charged for a primary product or service relative to a related product or service; and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trends.

Sales, usage-based, value added and other taxes are excluded from revenues.

MIS Revenue

In the MIS segment, revenue arrangements are generally comprised of two distinct performance obligations, an initial rating and the related monitoring service. Revenue attributed to initial ratings of issued securities is generally recognized when the rating is delivered to the issuer. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of certain structured finance products, primarily CMBS, issuers can elect to pay all of the annual monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities.

MIS arrangements generally have standard contractual terms for which the stated payments are due at conclusion of the ratings process for initial ratings and either upfront or in arrears for monitoring services; and are signed by customers either on a per issue basis or at the beginning of the relationship with the customer. However, customer fee arrangements may be adjusted for which the Company accounts for as variable consideration at inception using the expected value method based on analysis of similar contracts in the same line of business, which is constrainedbased on the Company’s assessment of the realization of the adjustment amount.

The Company allocates the transaction price within arrangements that include both the initial rating and the related monitoring service based upon the relative SSP of each service. The Company generally uses management’s best estimate based on observable pricing points in determining SSP for its initial ratings as the Company rarely provides initial ratings separately without providing related monitoring services. The SSP for monitoring fees in these arrangements are generally based upon directly observable selling prices where the monitoring service is sold separately.

MA Revenue

In the MA segment, products and services offered by the Company include hosted research and data subscriptions, installed software subscriptions, perpetual installed software licenses and related maintenance, or PCS, and professional services. Subscription and PCS contracts are generally invoiced in advance of the contractual coverage period, which is principally one year, but can range from 3-5 years; while perpetual software licenses are generally invoiced upon delivery and professional services are invoiced as those services are provided. Payment terms and conditions vary by contract type, but primarily include a requirement of payment within 30 to 60 days.

Revenue from research, data and other hosted subscriptions is recognized ratably over the related subscription period. A large portion of these services are invoiced in the months of November, December and January.

Revenue from the sale of a software license, when considered distinct from the related software implementation services, is generally recognized at the time the product master or first copy is delivered or transferred to the customer. However, in instances where the software license (perpetual or subscription) and related implementation services are considered to be one combined performance obligation, revenue is recognized on a percentage-of-completion basis (input method) as implementation services are performed over time, which is consistent with the pattern of recognition for the software implementation services if considered to be a separate distinct performance obligation. The Company exercises judgment in determining the level of integration and interdependency between the promise to grant the software license and the promise to deliver the related implementation services. This determination influences whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the implementation services and recognized over time. PCS is generally recognized ratably over the contractual period commencing when the software license is fully delivered. Revenue from installed software subscriptions, which includes PCS, is bifurcated into a software license performance obligation and a PCS performance obligation, which follow the patterns of recognition described above.

For implementation services and other service projects within the ERS and ESA LOBs for which fees are fixed, the Company determined progress towards completion is most accurately measured on a percentage-of-completion basis (input method) as this approach utilizes the most directly observable data points and is therefore used to recognize the related revenue. For implementation services where price varies based on time expended, a time-based measure of progress towards completion of the performance obligation is utilized.

Revenue from professional services rendered within the PS LOB is generally recognized as the services are performed over time.

Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where an arrangement contains multiple performance obligations, the Company accounts for the individual performance obligations separately if they are considered distinct. Revenue is generally allocated to all performance obligations based upon the relative SSP at contract inception. Judgment is often required to determine the SSP for each distinct performance obligation. Revenue is recognized for each performance obligation based upon the conditions for revenue recognition noted above.

In the MA segment, customers usually pay a fixed fee for the products and services based on signed contracts. However, accounting for variable consideration is applied mainly for: i) estimates for cancellation rights and price concessions and ii) T&M based services.

The Company estimates the variable consideration associated with cancellation rights and price concessions based on the expected amount to be provided to customers and reduces the amount of revenue to be recognized. T&M based contracts represent about half of MA’s service projects within the ERS and ESA LOBs. The Company provides agreed upon services at a contracted daily or hourly rate. The commitment represents a series of goods and services that are substantially the same and have the same pattern of transfer to the customer. As such, if T&M services are sold with other MA products, the Company allocates the variable consideration entirely to the T&M performance obligation if the services are sold at standard pricing or at a similar discount level compared to other performance obligations in the same revenue contract. If these criteria are not met, the Company estimates variable consideration for each performance obligation upfront.

Each form of variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal of any incremental revenue will not occur.

Costs to Obtain or Fulfill a Contract with a Customer:

Costs incurred to obtain customer contracts, such as sales commissions, are deferred and recorded within other current assets and other assets when such costs are determined to be incremental to obtaining a contract, would not have been incurred otherwise and the Company expects to recover those costs. These costs are amortized to expense consistent with the recognition pattern of the related revenue over time. Depending on the line of business to which the contract relates, this may be based upon the average economic life of the products sold or average period for which services are provided, inclusive of anticipated contract renewals. Determining the estimated economic life of the products sold requires judgment with respect to anticipated future technological changes. The Company had a balance of $92.2 million in such deferred costs as of June 30, 2018 and recognized $8.1million and $16.7 million of related amortization during the three and six-month periods ended June 30, 2018, respectively, which is included within SG&A expenses in the consolidated statement of operations. Costs incurred to obtain customer contracts are only in the MA segment.

Costs incurred to fulfill customer contracts, are deferred and recorded within other current assets and other assets when such costs relate directly to a contract, generate or enhanceresources of the Company that will be used in satisfying performance obligations in the futureand the Company expects to recover those costs.

The Company capitalizes work-in-process costs for in-progress MIS ratings, which is recognized consistent with the rendering of the related services to the customers, as ratings are issued. The Company had a balance of $10.3 million in such deferred costs as of June 30, 2018 and recognized $10.1 million and $19.5 million of amortization of the costs during the three and six-month periods ended June 30, 2018, respectively, which is included within operating expenses in the consolidated statement of operations.

In addition, within the MA segment, the Company capitalizes royalty costs related to third-party information data providers associated with hosted company information and business intelligence products. These costs are amortized to expense consistent with the recognition pattern of the related revenue over time. The Company had abalance of $28.2 million in such deferred costsas of June 30, 2018 and recognized $14.1million and $28.3 million of related amortization during the three and six-month periods ended June 30, 2018, respectively, which is included within operating expenses in the consolidated statement of operations.

Fair Value of Financial Instruments

The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, all of which are short-term in nature and, accordingly, approximate fair value. Additionally, the Company invests in certain short-term investments consisting primarily of certificates of deposit that are carried at cost, which approximates fair value due to their short-term maturities.

The Company also has certain investments in closed-ended and open-ended mutual funds in India which are accounted for as equity securities with readily determinable fair values under ASC Topic 321. Beginning in the first quarter of 2018, the Company will measure these investments at fair value with both realized gains and losses and unrealized holding gains and losses for these investments included in net income.

Prior to January 1, 2018, the investments in closed-ended and open-ended mutual funds in India were designated as ‘available for sale’ under Topic 320 of the ASC. Accordingly, unrealized gains and losses on these investments were recorded to other comprehensive income and were reclassified out of accumulated other comprehensive income to the statement of operations when the investment matured or was sold using a specific identification method.

Also, the Company uses derivative instruments to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value on the Company’s consolidated balance sheets.

Fair value is defined by the ASC as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset.

The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows:

Level 1: quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement;

Level 2: inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;

Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities.

Derivative Instruments and Hedging Activities

Based on the Company’s risk management policy, from time to time the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values. The changes in the value of derivatives that qualify as fair value hedges are recorded in the same income statement line item in earnings in which the corresponding adjustment to the carrying value of the hedged item is presented. The entire change in the fair value of derivatives that qualify as cash flow hedges is recorded to OCI and such amounts are reclassified from AOCI to the same income statement line in earnings in the same period or periods during which the hedged transaction affects income. Effective with the Company early adoption of ASC 2017-12, the Company changed the method by which it assesses effectiveness for net investment hedges from the forward-method to the spot-method. The Company considers the spot-method an improved method of assessing hedge effectiveness, as spot rate changes relating to the hedging instrument’s notional amount perfectly offset the currency translation adjustment on the hedged net investment in the Company’s foreign subsidiaries. The entire change in the fair value of derivatives that qualify as net investment hedges is initially recorded to OCI. Those changes in fair value attributable to components included in the assessment of hedge effectiveness in a net investment hedge are recorded in the currency translation adjustment component of OCI and remain in AOCI until the period in which the hedged item affects earnings. Those changes in fair value attributable to components excluded from the assessment of hedge effectiveness in a net investment hedge are recorded to OCI and amortized to earnings using a systematic and rational method over the duration of the hedge. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur. Refer to Note 9 for further information regarding the Company’s derivative financial instruments and hedging activities.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Revenue Recognition and Costs to Obtain or Fulfill a Contract with a Customer

Revenue recognition:

Revenue is recognized when control of promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

When contracts with customers contain multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to each distinct performance obligation on a relative SSP basis. The Company determines the SSP by using the price charged for a deliverable when sold separately or uses management’s best estimate of SSP for goods or services not sold separately based on the maximum number of observable data points, including: internal factors relevant to its pricing practices such as costs and margin objectives; standalone sales prices of similar products; percentage of the fee charged for a primary product or service relative to a related product or service; and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trends.

Sales, usage-based, value added and other taxes are excluded from revenues.

MIS Revenue

In the MIS segment, revenue arrangements are generally comprised of two distinct performance obligations, an initial rating and the related monitoring service. Revenue attributed to initial ratings of issued securities is generally recognized when the rating is delivered to the issuer. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of certain structured finance products, primarily CMBS, issuers can elect to pay all of the annual monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities.

MIS arrangements generally have standard contractual terms for which the stated payments are due at conclusion of the ratings process for initial ratings and either upfront or in arrears for monitoring services; and are signed by customers either on a per issue basis or at the beginning of the relationship with the customer. However, customer fee arrangements may be adjusted for which the Company accounts for as variable consideration at inception using the expected value method based on analysis of similar contracts in the same line of business, which is constrainedbased on the Company’s assessment of the realization of the adjustment amount.

The Company allocates the transaction price within arrangements that include both the initial rating and the related monitoring service based upon the relative SSP of each service. The Company generally uses management’s best estimate based on observable pricing points in determining SSP for its initial ratings as the Company rarely provides initial ratings separately without providing related monitoring services. The SSP for monitoring fees in these arrangements are generally based upon directly observable selling prices where the monitoring service is sold separately.

MA Revenue

In the MA segment, products and services offered by the Company include hosted research and data subscriptions, installed software subscriptions, perpetual installed software licenses and related maintenance, or PCS, and professional services. Subscription and PCS contracts are generally invoiced in advance of the contractual coverage period, which is principally one year, but can range from 3-5 years; while perpetual software licenses are generally invoiced upon delivery and professional services are invoiced as those services are provided. Payment terms and conditions vary by contract type, but primarily include a requirement of payment within 30 to 60 days.

Revenue from research, data and other hosted subscriptions is recognized ratably over the related subscription period. A large portion of these services are invoiced in the months of November, December and January.

Revenue from the sale of a software license, when considered distinct from the related software implementation services, is generally recognized at the time the product master or first copy is delivered or transferred to the customer. However, in instances where the software license (perpetual or subscription) and related implementation services are considered to be one combined performance obligation, revenue is recognized on a percentage-of-completion basis (input method) as implementation services are performed over time, which is consistent with the pattern of recognition for the software implementation services if considered to be a separate distinct performance obligation. The Company exercises judgment in determining the level of integration and interdependency between the promise to grant the software license and the promise to deliver the related implementation services. This determination influences whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the implementation services and recognized over time. PCS is generally recognized ratably over the contractual period commencing when the software license is fully delivered. Revenue from installed software subscriptions, which includes PCS, is bifurcated into a software license performance obligation and a PCS performance obligation, which follow the patterns of recognition described above.

For implementation services and other service projects within the ERS and ESA LOBs for which fees are fixed, the Company determined progress towards completion is most accurately measured on a percentage-of-completion basis (input method) as this approach utilizes the most directly observable data points and is therefore used to recognize the related revenue. For implementation services where price varies based on time expended, a time-based measure of progress towards completion of the performance obligation is utilized.

Revenue from professional services rendered within the PS LOB is generally recognized as the services are performed over time.

Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where an arrangement contains multiple performance obligations, the Company accounts for the individual performance obligations separately if they are considered distinct. Revenue is generally allocated to all performance obligations based upon the relative SSP at contract inception. Judgment is often required to determine the SSP for each distinct performance obligation. Revenue is recognized for each performance obligation based upon the conditions for revenue recognition noted above.

In the MA segment, customers usually pay a fixed fee for the products and services based on signed contracts. However, accounting for variable consideration is applied mainly for: i) estimates for cancellation rights and price concessions and ii) T&M based services.

The Company estimates the variable consideration associated with cancellation rights and price concessions based on the expected amount to be provided to customers and reduces the amount of revenue to be recognized. T&M based contracts represent about half of MA’s service projects within the ERS and ESA LOBs. The Company provides agreed upon services at a contracted daily or hourly rate. The commitment represents a series of goods and services that are substantially the same and have the same pattern of transfer to the customer. As such, if T&M services are sold with other MA products, the Company allocates the variable consideration entirely to the T&M performance obligation if the services are sold at standard pricing or at a similar discount level compared to other performance obligations in the same revenue contract. If these criteria are not met, the Company estimates variable consideration for each performance obligation upfront.

Each form of variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal of any incremental revenue will not occur.

Costs to Obtain or Fulfill a Contract with a Customer:

Costs incurred to obtain customer contracts, such as sales commissions, are deferred and recorded within other current assets and other assets when such costs are determined to be incremental to obtaining a contract, would not have been incurred otherwise and the Company expects to recover those costs. These costs are amortized to expense consistent with the recognition pattern of the related revenue over time. Depending on the line of business to which the contract relates, this may be based upon the average economic life of the products sold or average period for which services are provided, inclusive of anticipated contract renewals. Determining the estimated economic life of the products sold requires judgment with respect to anticipated future technological changes. The Company had a balance of $92.2 million in such deferred costs as of June 30, 2018 and recognized $8.1million and $16.7 million of related amortization during the three and six-month periods ended June 30, 2018, respectively, which is included within SG&A expenses in the consolidated statement of operations. Costs incurred to obtain customer contracts are only in the MA segment.

Costs incurred to fulfill customer contracts, are deferred and recorded within other current assets and other assets when such costs relate directly to a contract, generate or enhanceresources of the Company that will be used in satisfying performance obligations in the futureand the Company expects to recover those costs.

The Company capitalizes work-in-process costs for in-progress MIS ratings, which is recognized consistent with the rendering of the related services to the customers, as ratings are issued. The Company had a balance of $10.3 million in such deferred costs as of June 30, 2018 and recognized $10.1 million and $19.5 million of amortization of the costs during the three and six-month periods ended June 30, 2018, respectively, which is included within operating expenses in the consolidated statement of operations.

In addition, within the MA segment, the Company capitalizes royalty costs related to third-party information data providers associated with hosted company information and business intelligence products. These costs are amortized to expense consistent with the recognition pattern of the related revenue over time. The Company had abalance of $28.2 million in such deferred costsas of June 30, 2018 and recognized $14.1million and $28.3 million of related amortization during the three and six-month periods ended June 30, 2018, respectively, which is included within operating expenses in the consolidated statement of operations.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, all of which are short-term in nature and, accordingly, approximate fair value. Additionally, the Company invests in certain short-term investments consisting primarily of certificates of deposit that are carried at cost, which approximates fair value due to their short-term maturities.

The Company also has certain investments in closed-ended and open-ended mutual funds in India which are accounted for as equity securities with readily determinable fair values under ASC Topic 321. Beginning in the first quarter of 2018, the Company will measure these investments at fair value with both realized gains and losses and unrealized holding gains and losses for these investments included in net income.

Prior to January 1, 2018, the investments in closed-ended and open-ended mutual funds in India were designated as ‘available for sale’ under Topic 320 of the ASC. Accordingly, unrealized gains and losses on these investments were recorded to other comprehensive income and were reclassified out of accumulated other comprehensive income to the statement of operations when the investment matured or was sold using a specific identification method.

Also, the Company uses derivative instruments to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value on the Company’s consolidated balance sheets.

Fair value is defined by the ASC as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset.

The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows:

Level 1: quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement;

Level 2: inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;

Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities.

Derivatives and Hedging Policy

Derivative Instruments and Hedging Activities

XML

Summary Of Significant Accounting Policies - Additional Information (Detail) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)
MA [Member] | Subscription and Maintenance Contracts [Member] | Advance Payment [Member]
Capitalized Contract Cost [Line Items]
Contractual Coverage Period		1 year
MA [Member] | Minimum [Member]
Capitalized Contract Cost [Line Items]
Payment Terms		30 days
MA [Member] | Minimum [Member] | Subscription and Maintenance Contracts [Member]
Capitalized Contract Cost [Line Items]
Contractual Coverage Period		3 years
MA [Member] | Maximum [Member]
Capitalized Contract Cost [Line Items]
Payment Terms		60 days
MA [Member] | Maximum [Member] | Subscription and Maintenance Contracts [Member]
Capitalized Contract Cost [Line Items]
Contractual Coverage Period		5 years
MA [Member] | SG&A Expense [Member]
Capitalized Contract Cost [Line Items]
Deferred Cost Balance	$ 92.2	$ 92.2
Contract Cost Amortization	8.1	16.7
MA [Member] | Royalty Cost [Member] | Operating Expense [Member]
Capitalized Contract Cost [Line Items]
Deferred Cost Balance	28.2	28.2
Contract Cost Amortization	14.1	$ 28.3
MIS [Member] | Monitoring of Issuers or Issued Securities [Member]
Capitalized Contract Cost [Line Items]
Contractual Coverage Period		1 year
MIS [Member] | Capitalization of Work-In-Process for In-Progress Ratings [Member] | Operating Expense [Member]
Capitalized Contract Cost [Line Items]
Deferred Cost Balance	10.3	$ 10.3
Contract Cost Amortization	$ 10.1	$ 19.5

XML

REVENUES

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

REVENUES

NOTE 3. REVENUES

Revenue by Category

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

		Three Months Ended June 30,				Six Months Ended June 30,
		2018		2017 (1)		2018		2017 (1)
MIS:
Corporate finance (CFG)
	Investment-grade	$	67.3	$	84.6	$	148.4	$	156.7
	High-yield		58.6		62.7		116.5		126.9
	Bank loans		117.9		90.3		226.0		191.7
	Other accounts (2)		133.8		118.2		264.4		233.3
Total CFG			377.6		355.8		755.3		708.6
Structured finance (SFG)
	Asset-backed securities		27.9		24.1		56.1		46.8
	Residential mortgage backed securities		26.8		22.4		51.1		42.8
	Commercial real estate finance		31.6		29.9		64.8		59.2
	Structured credit		54.5		42.2		97.9		69.6
	Other accounts		0.8		0.6		1.4		1.0
Total SFG			141.6		119.2		271.3		219.4
Financial institutions (FIG)
	Banking		77.3		70.4		154.3		149.5
	Insurance		32.9		23.4		61.2		48.5
	Managed investments		7.2		5.9		12.9		11.0
	Other accounts		3.2		2.7		6.5		5.7
Total FIG			120.6		102.4		234.9		214.7
Public, project and infrastructure finance (PPIF)
	Public finance / sovereign		51.7		53.2		98.6		106.2
	Project and infrastructure		56.4		51.5		102.7		96.6
Total PPIF			108.1		104.7		201.3		202.8
	Total ratings revenue		747.9		682.1		1,462.8		1,345.5
MIS Other			4.4		4.6		9.4		9.4
	Total external revenue		752.3		686.7		1,472.2		1,354.9
Intersegment royalty			30.6		27.0		60.4		53.0
	Total MIS		782.9		713.7		1,532.6		1,407.9
MA:
Research, data and analytics (RD&A)			279.9		180.9		549.1		356.3
Enterprise risk solutions (ERS)			105.5		97.3		205.6		193.2
Professional services (PS)			37.4		35.6		74.9		71.3
	Total external revenue		422.8		313.8		829.6		620.8
Intersegment revenue			2.4		3.8		7.4		7.5
	Total MA		425.2		317.6		837.0		628.3
Eliminations			(33.0)		(30.8)		(67.8)		(60.5)
Total MCO		$	1,175.1	$	1,000.5	$	2,301.8	$	1,975.7
(1) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.
(2) 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.

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

		Three Months Ended June 30, 2018						Three Months Ended June 30, 2017 (1)
		United States		International		Total		United States		International		Total
MIS:
Corporate finance (CFG)		$	242.3	$	135.3	$	377.6	$	220.8	$	135.0	$	355.8
Structured finance (SFG)			93.3		48.3		141.6		81.6		37.6		119.2
Financial institutions (FIG)			54.4		66.2		120.6		43.9		58.5		102.4
Public, project and infrastructure finance (PPIF)			61.1		47.0		108.1		66.0		38.7		104.7
	Total ratings revenue		451.1		296.8		747.9		412.3		269.8		682.1
MIS Other			0.1		4.3		4.4		0.1		4.5		4.6
	Total MIS		451.2		301.1		752.3		412.4		274.3		686.7
MA:
Research, data and analytics (RD&A)			118.2		161.7		279.9		101.7		79.2		180.9
Enterprise risk solutions (ERS)			42.6		62.9		105.5		40.4		56.9		97.3
Professional services (PS)			13.4		24.0		37.4		13.3		22.3		35.6
	Total MA		174.2		248.6		422.8		155.4		158.4		313.8
Total MCO		$	625.4	$	549.7	$	1,175.1	$	567.8	$	432.7	$	1,000.5
		Six Months Ended June 30, 2018						Six Months Ended June 30, 2017 (1)
		United States		International		Total		United States		International		Total
MIS:
Corporate finance (CFG)		$	489.0	$	266.3	$	755.3	$	464.6	$	244.0	$	708.6
Structured finance (SFG)			177.9		93.4		271.3		146.6		72.8		219.4
Financial institutions (FIG)			102.9		132.0		234.9		94.5		120.2		214.7
Public, project and infrastructure finance (PPIF)			114.5		86.8		201.3		129.0		73.8		202.8
	Total ratings revenue		884.3		578.5		1,462.8		834.7		510.8		1,345.5
MIS Other			0.3		9.1		9.4		0.2		9.2		9.4
	Total MIS		884.6		587.6		1,472.2		834.9		520.0		1,354.9
MA:
Research, data and analytics (RD&A)			230.8		318.3		549.1		203.1		153.2		356.3
Enterprise risk solutions (ERS)			81.1		124.5		205.6		80.6		112.6		193.2
Professional services (PS)			26.6		48.3		74.9		27.0		44.3		71.3
	Total MA		338.5		491.1		829.6		310.7		310.1		620.8
Total MCO		$	1,223.1	$	1,078.7	$	2,301.8	$	1,145.6	$	830.1	$	1,975.7
(1) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.

The tables below summarize the split between transaction and relationship revenue. In the MIS segment, excluding MIS Other, transaction revenue represents the initial rating of a new debt issuance as well as other one-time fees while relationship revenue represents the 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. In MIS Other, transaction revenue represents revenue from professional services and outsourcing engagements and relationship revenue represents subscription-based revenues. In the MA segment, relationship revenue represents subscription-based revenues and software maintenance revenue. Transaction revenue in MA represents perpetual software license fees and revenue from software implementation services, risk management advisory projects, training and certification services, and outsourced research and analytical engagements.

	Three Months Ended June 30,
	2018							2017 (2)
	Transaction			Relationship		Total		Transaction		Relationship		Total
Corporate Finance	$	274.3		$	103.3	$	377.6	$	262.5	$	93.3	$	355.8
		73%			27%		100%		74%		26%		100%
Structured Finance	$	95.3		$	46.3	$	141.6	$	75.2	$	44.0	$	119.2
		67%			33%		100%		63%		37%		100%
Financial Institutions	$	56.2		$	64.4	$	120.6	$	43.9	$	58.5	$	102.4
		47%			53%		100%		43%		57%		100%
Public, Project and Infrastructure Finance	$	69.7		$	38.4	$	108.1	$	67.2	$	37.5	$	104.7
		64%			36%		100%		64%		36%		100%
MIS Other	$	0.4		$	4.0	$	4.4	$	0.3	$	4.3	$	4.6
		9%			91%		100%		7%		93%		100%
Total MIS	$	495.9		$	256.4	$	752.3	$	449.1	$	237.6	$	686.7
		66%			34%		100%		65%		35%		100%
Moody's Analytics	$	66.5	(1)	$	356.3	$	422.8	$	62.8	$	251.0	$	313.8
		16%			84%		100%		20%		80%		100%
Total Moody's Corporation	$	562.4		$	612.7	$	1,175.1	$	511.9	$	488.6	$	1,000.5
		48%			52%		100%		51%		49%		100%
	Six Months Ended June 30,
	2018							2017 (2)
	Transaction			Relationship		Total		Transaction		Relationship		Total
Corporate Finance	$	549.2		$	206.1	$	755.3	$	523.1	$	185.5	$	708.6
		73%			27%		100%		74%		26%		100%
Structured Finance	$	178.4		$	92.9	$	271.3	$	132.7	$	86.7	$	219.4
		66%			34%		100%		60%		40%		100%
Financial Institutions	$	106.2		$	128.7	$	234.9	$	97.3	$	117.4	$	214.7
		45%			55%		100%		45%		55%		100%
Public, Project and Infrastructure Finance	$	124.1		$	77.2	$	201.3	$	126.4	$	76.4	$	202.8
		62%			38%		100%		62%		38%		100%
MIS Other	$	1.0		$	8.4	$	9.4	$	0.6	$	8.8	$	9.4
		11%			89%		100%		6%		94%		100%
Total MIS	$	958.9		$	513.3	$	1,472.2	$	880.1	$	474.8	$	1,354.9
		65%			35%		100%		65%		35%		100%
Moody's Analytics	$	127.3	(1)	$	702.3	$	829.6	$	127.4	$	493.4	$	620.8
		15%			85%		100%		21%		79%		100%
Total Moody's Corporation	$	1,086.2		$	1,215.6	$	2,301.8	$	1,007.5	$	968.2	$	1,975.7
		47%			53%		100%		51%		49%		100%
(1) Revenue from software implementation services and risk management advisory projects, while classified by management as transactional revenue, is recognized over time under the New Revenue Accounting Standard (please also refer to the table below).
(2) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.

The following table presents the timing of revenue recognition:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018						2018
	MIS		MA			Total	MIS		MA			Total
Revenue recognized at a point in time	$	495.9	$	14.0	$	509.9	$	958.9	$	29.5	$	988.4
Revenue recognized over time		256.4		408.8		665.2		513.3		800.1		1,313.4
Total	$	752.3	$	422.8	$	1,175.1	$	1,472.2	$	829.6	$	2,301.8

Unbilled receivables, Deferred revenue and Remaining performance obligations

Unbilled receivables

At June 30, 2018, accounts receivable included approximately $336.7 million of unbilled receivables related to the MIS segment. Certain MIS arrangements contain contractual terms whereby the customers are billed in arrears for annual monitoring services, requiring revenue to be accrued as an unbilled receivable as such services are provided. Additionally, there are other instances in which the timing of when the Company has the unconditional right to consideration and recognizes revenue prior to invoicing the customer, for which an unbilled receivable is recorded. 

In addition, for certain MA arrangements, the timing of when the Company has the unconditional right to consideration and recognizes revenue occurs prior to invoicing the customer. Consequently, at June 30, 2018, accounts receivable included approximately $34.1 million of unbilled receivables related to the MA segment.

Historically, the Company has not had material differences between the estimated revenue and the actual billings.

Deferred revenue

The Company recognizes deferred revenue when a contract requires a customer to pay consideration to the Company in advance of when revenue related to that contract is recognized. This deferred revenue is relieved when the Company satisfies the related performance obligation and revenue is recognized.

Significant changes in the deferred revenue balances during the three and six months ended June 30, 2018 are as follows:

	Three Months Ended June 30, 2018
	MIS		MA		Total
Balance at March 31, 2018	$	397.5	$	729.0	$	1,126.5
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period		(127.2)		(230.0)		(357.2)
Increases due to amounts billable excluding amounts recognized as revenue during the period		112.6		132.1		244.7
Effect of exchange rate changes		(5.4)		(22.1)		(27.5)
Total changes in deferred revenue		(20.0)		(120.0)		(140.0)
Balance at June 30, 2018	$	377.5	$	609.0	$	986.5
	Six Months Ended June 30, 2018
	MIS		MA		Total
Balance at January 1, 2018 (after New Revenue Accounting Standard transition adjustment)	$	334.7	$	611.6	$	946.3
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period		(165.4)		(307.2)		(472.6)
Increases due to amounts billable excluding amounts recognized as revenue during the period		212.6		315.2		527.8
Effect of exchange rate changes		(4.4)		(10.6)		(15.0)
Total changes in deferred revenue		42.8		(2.6)		40.2
Balance at June 30, 2018	$	377.5	$	609.0	$	986.5
Deferred revenue - current	$	255.9	$	604.6	$	860.5
Deferred revenue - noncurrent	$	121.6	$	4.4	$	126.0

For the MIS segment, the changes in the deferred revenue balance during the three and six months ended June 30, 2018 were primarily related to the significant portion of contract renewals that occur during the first quarter of 2018 and are generally recognized over a one year period.

For the MA segment, the decrease in deferred revenue for the three months ended June 30, 2018 was primarily due to the recognition of annual subscription and maintenance billings in December 2017 and January 2018. For the six months ended June 30, 2018, the impact of the high concentration of January 2018 billings on the deferred revenue balance was mostly offset by the recognition of revenues related to the aforementioned December 2017 and January 2018 billings.

Remaining performance obligations

The following tables include the expected recognition period for the remaining performance obligationsfor each reportable segment as of June 30, 2018:

MIS
Total			Less than 1 year	1 - 5 years		6 - 10 Years		11 - 15 years		16-20 years		Over 20 Years
$	131.9	$	6.2	$	65.6	$	41.7	$	8.0	$	4.3	$	6.1

The balances in the MIS table above largely reflect deferred revenue related to monitoring fees for certain structured finance products, primarily CMBS, where the issuers can elect to pay the monitoring fees for the life of the security in advance. With respect to the remaining performance obligations for the MIS segment, the Company has applied a practical expedient set forth in ASC Topic 606 permitting the omission from the table above for unsatisfied performance obligations relating to contracts with an original expected length of one year or less.

MA
Total		Less than 1 Year		1 - 2 Years		Over 2 Years
$	1,384.7	$	1,050.1	$	232.6	$	102.0

The balances in the MA table above include both amounts recorded as deferred revenue on the balance sheet as of June 30, 2018 as well as amounts not yet invoiced to customers as of June 30, 2018 largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription based products.

XML

REVENUES (Tables)

6 Months Ended

Jun. 30, 2018

Disaggregation of Revenue [Line Items]

Revenue by Category

		Three Months Ended June 30,				Six Months Ended June 30,
		2018		2017 (1)		2018		2017 (1)
MIS:
Corporate finance (CFG)
	Investment-grade	$	67.3	$	84.6	$	148.4	$	156.7
	High-yield		58.6		62.7		116.5		126.9
	Bank loans		117.9		90.3		226.0		191.7
	Other accounts (2)		133.8		118.2		264.4		233.3
Total CFG			377.6		355.8		755.3		708.6
Structured finance (SFG)
	Asset-backed securities		27.9		24.1		56.1		46.8
	Residential mortgage backed securities		26.8		22.4		51.1		42.8
	Commercial real estate finance		31.6		29.9		64.8		59.2
	Structured credit		54.5		42.2		97.9		69.6
	Other accounts		0.8		0.6		1.4		1.0
Total SFG			141.6		119.2		271.3		219.4
Financial institutions (FIG)
	Banking		77.3		70.4		154.3		149.5
	Insurance		32.9		23.4		61.2		48.5
	Managed investments		7.2		5.9		12.9		11.0
	Other accounts		3.2		2.7		6.5		5.7
Total FIG			120.6		102.4		234.9		214.7
Public, project and infrastructure finance (PPIF)
	Public finance / sovereign		51.7		53.2		98.6		106.2
	Project and infrastructure		56.4		51.5		102.7		96.6
Total PPIF			108.1		104.7		201.3		202.8
	Total ratings revenue		747.9		682.1		1,462.8		1,345.5
MIS Other			4.4		4.6		9.4		9.4
	Total external revenue		752.3		686.7		1,472.2		1,354.9
Intersegment royalty			30.6		27.0		60.4		53.0
	Total MIS		782.9		713.7		1,532.6		1,407.9
MA:
Research, data and analytics (RD&A)			279.9		180.9		549.1		356.3
Enterprise risk solutions (ERS)			105.5		97.3		205.6		193.2
Professional services (PS)			37.4		35.6		74.9		71.3
	Total external revenue		422.8		313.8		829.6		620.8
Intersegment revenue			2.4		3.8		7.4		7.5
	Total MA		425.2		317.6		837.0		628.3
Eliminations			(33.0)		(30.8)		(67.8)		(60.5)
Total MCO		$	1,175.1	$	1,000.5	$	2,301.8	$	1,975.7
(1) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.
(2) 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.

Revenue by Line of Business within Each Geographical Segment

		Three Months Ended June 30, 2018						Three Months Ended June 30, 2017 (1)
		United States		International		Total		United States		International		Total
MIS:
Corporate finance (CFG)		$	242.3	$	135.3	$	377.6	$	220.8	$	135.0	$	355.8
Structured finance (SFG)			93.3		48.3		141.6		81.6		37.6		119.2
Financial institutions (FIG)			54.4		66.2		120.6		43.9		58.5		102.4
Public, project and infrastructure finance (PPIF)			61.1		47.0		108.1		66.0		38.7		104.7
	Total ratings revenue		451.1		296.8		747.9		412.3		269.8		682.1
MIS Other			0.1		4.3		4.4		0.1		4.5		4.6
	Total MIS		451.2		301.1		752.3		412.4		274.3		686.7
MA:
Research, data and analytics (RD&A)			118.2		161.7		279.9		101.7		79.2		180.9
Enterprise risk solutions (ERS)			42.6		62.9		105.5		40.4		56.9		97.3
Professional services (PS)			13.4		24.0		37.4		13.3		22.3		35.6
	Total MA		174.2		248.6		422.8		155.4		158.4		313.8
Total MCO		$	625.4	$	549.7	$	1,175.1	$	567.8	$	432.7	$	1,000.5
		Six Months Ended June 30, 2018						Six Months Ended June 30, 2017 (1)
		United States		International		Total		United States		International		Total
MIS:
Corporate finance (CFG)		$	489.0	$	266.3	$	755.3	$	464.6	$	244.0	$	708.6
Structured finance (SFG)			177.9		93.4		271.3		146.6		72.8		219.4
Financial institutions (FIG)			102.9		132.0		234.9		94.5		120.2		214.7
Public, project and infrastructure finance (PPIF)			114.5		86.8		201.3		129.0		73.8		202.8
	Total ratings revenue		884.3		578.5		1,462.8		834.7		510.8		1,345.5
MIS Other			0.3		9.1		9.4		0.2		9.2		9.4
	Total MIS		884.6		587.6		1,472.2		834.9		520.0		1,354.9
MA:
Research, data and analytics (RD&A)			230.8		318.3		549.1		203.1		153.2		356.3
Enterprise risk solutions (ERS)			81.1		124.5		205.6		80.6		112.6		193.2
Professional services (PS)			26.6		48.3		74.9		27.0		44.3		71.3
	Total MA		338.5		491.1		829.6		310.7		310.1		620.8
Total MCO		$	1,223.1	$	1,078.7	$	2,301.8	$	1,145.6	$	830.1	$	1,975.7
(1) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.

Transaction and Relationship Revenue

	Three Months Ended June 30,
	2018							2017 (2)
	Transaction			Relationship		Total		Transaction		Relationship		Total
Corporate Finance	$	274.3		$	103.3	$	377.6	$	262.5	$	93.3	$	355.8
		73%			27%		100%		74%		26%		100%
Structured Finance	$	95.3		$	46.3	$	141.6	$	75.2	$	44.0	$	119.2
		67%			33%		100%		63%		37%		100%
Financial Institutions	$	56.2		$	64.4	$	120.6	$	43.9	$	58.5	$	102.4
		47%			53%		100%		43%		57%		100%
Public, Project and Infrastructure Finance	$	69.7		$	38.4	$	108.1	$	67.2	$	37.5	$	104.7
		64%			36%		100%		64%		36%		100%
MIS Other	$	0.4		$	4.0	$	4.4	$	0.3	$	4.3	$	4.6
		9%			91%		100%		7%		93%		100%
Total MIS	$	495.9		$	256.4	$	752.3	$	449.1	$	237.6	$	686.7
		66%			34%		100%		65%		35%		100%
Moody's Analytics	$	66.5	(1)	$	356.3	$	422.8	$	62.8	$	251.0	$	313.8
		16%			84%		100%		20%		80%		100%
Total Moody's Corporation	$	562.4		$	612.7	$	1,175.1	$	511.9	$	488.6	$	1,000.5
		48%			52%		100%		51%		49%		100%
	Six Months Ended June 30,
	2018							2017 (2)
	Transaction			Relationship		Total		Transaction		Relationship		Total
Corporate Finance	$	549.2		$	206.1	$	755.3	$	523.1	$	185.5	$	708.6
		73%			27%		100%		74%		26%		100%
Structured Finance	$	178.4		$	92.9	$	271.3	$	132.7	$	86.7	$	219.4
		66%			34%		100%		60%		40%		100%
Financial Institutions	$	106.2		$	128.7	$	234.9	$	97.3	$	117.4	$	214.7
		45%			55%		100%		45%		55%		100%
Public, Project and Infrastructure Finance	$	124.1		$	77.2	$	201.3	$	126.4	$	76.4	$	202.8
		62%			38%		100%		62%		38%		100%
MIS Other	$	1.0		$	8.4	$	9.4	$	0.6	$	8.8	$	9.4
		11%			89%		100%		6%		94%		100%
Total MIS	$	958.9		$	513.3	$	1,472.2	$	880.1	$	474.8	$	1,354.9
		65%			35%		100%		65%		35%		100%
Moody's Analytics	$	127.3	(1)	$	702.3	$	829.6	$	127.4	$	493.4	$	620.8
		15%			85%		100%		21%		79%		100%
Total Moody's Corporation	$	1,086.2		$	1,215.6	$	2,301.8	$	1,007.5	$	968.2	$	1,975.7
		47%			53%		100%		51%		49%		100%
(1) Revenue from software implementation services and risk management advisory projects, while classified by management as transactional revenue, is recognized over time under the New Revenue Accounting Standard (please also refer to the table below).
(2) Prior period amounts have not been adjusted under the modified retrospective method of adoption for the New Revenue Accounting Standard.

Schedule of Revenue Recognition Timing

	Three Months Ended June 30,						Six Months Ended June 30,
	2018						2018
	MIS		MA			Total	MIS		MA			Total
Revenue recognized at a point in time	$	495.9	$	14.0	$	509.9	$	958.9	$	29.5	$	988.4
Revenue recognized over time		256.4		408.8		665.2		513.3		800.1		1,313.4
Total	$	752.3	$	422.8	$	1,175.1	$	1,472.2	$	829.6	$	2,301.8

Schedule of Changes in the Deferred Revenue Balances

	Three Months Ended June 30, 2018
	MIS		MA		Total
Balance at March 31, 2018	$	397.5	$	729.0	$	1,126.5
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period		(127.2)		(230.0)		(357.2)
Increases due to amounts billable excluding amounts recognized as revenue during the period		112.6		132.1		244.7
Effect of exchange rate changes		(5.4)		(22.1)		(27.5)
Total changes in deferred revenue		(20.0)		(120.0)		(140.0)
Balance at June 30, 2018	$	377.5	$	609.0	$	986.5
	Six Months Ended June 30, 2018
	MIS		MA		Total
Balance at January 1, 2018 (after New Revenue Accounting Standard transition adjustment)	$	334.7	$	611.6	$	946.3
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period		(165.4)		(307.2)		(472.6)
Increases due to amounts billable excluding amounts recognized as revenue during the period		212.6		315.2		527.8
Effect of exchange rate changes		(4.4)		(10.6)		(15.0)
Total changes in deferred revenue		42.8		(2.6)		40.2
Balance at June 30, 2018	$	377.5	$	609.0	$	986.5
Deferred revenue - current	$	255.9	$	604.6	$	860.5
Deferred revenue - noncurrent	$	121.6	$	4.4	$	126.0

MIS [Member]

Disaggregation of Revenue [Line Items]

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]

MIS
Total			Less than 1 year	1 - 5 years		6 - 10 Years		11 - 15 years		16-20 years		Over 20 Years
$	131.9	$	6.2	$	65.6	$	41.7	$	8.0	$	4.3	$	6.1

MA [Member]

Disaggregation of Revenue [Line Items]

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]

MA
Total		Less than 1 Year		1 - 2 Years		Over 2 Years
$	1,384.7	$	1,050.1	$	232.6	$	102.0

XML

Revenue by Category (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 1,175.1	$ 1,000.5	$ 2,301.8	$ 1,975.7
MIS [Member]
Disaggregation of Revenue [Line Items]
Revenues	782.9	713.7	1,532.6	1,407.9
MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	752.3	686.7	1,472.2	1,354.9
MIS [Member] | Intersegment Royalty [Member]
Disaggregation of Revenue [Line Items]
Revenues	30.6	27.0	60.4	53.0
MIS [Member] | Corporate finance (CFG) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	377.6	355.8	755.3	708.6
MIS [Member] | Corporate finance (CFG) [Member] | External Revenues [Member] | Investment-grade [Member]
Disaggregation of Revenue [Line Items]
Revenues	67.3	84.6	148.4	156.7
MIS [Member] | Corporate finance (CFG) [Member] | External Revenues [Member] | High-yield [Member]
Disaggregation of Revenue [Line Items]
Revenues	58.6	62.7	116.5	126.9
MIS [Member] | Corporate finance (CFG) [Member] | External Revenues [Member] | Bank loans [Member]
Disaggregation of Revenue [Line Items]
Revenues	117.9	90.3	226.0	191.7
MIS [Member] | Corporate finance (CFG) [Member] | External Revenues [Member] | Other product lines [Member]
Disaggregation of Revenue [Line Items]
Revenues	133.8	118.2	264.4	233.3
MIS [Member] | Structured Finance (SFG) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	141.6	119.2	271.3	219.4
MIS [Member] | Structured Finance (SFG) [Member] | External Revenues [Member] | Assets Backed Securities [Member]
Disaggregation of Revenue [Line Items]
Revenues	27.9	24.1	56.1	46.8
MIS [Member] | Structured Finance (SFG) [Member] | External Revenues [Member] | Residential Mortgage Backed Securities Product [Member]
Disaggregation of Revenue [Line Items]
Revenues	26.8	22.4	51.1	42.8
MIS [Member] | Structured Finance (SFG) [Member] | External Revenues [Member] | Commercial real estate finance [Member]
Disaggregation of Revenue [Line Items]
Revenues	31.6	29.9	64.8	59.2
MIS [Member] | Structured Finance (SFG) [Member] | External Revenues [Member] | Structured credit [Member]
Disaggregation of Revenue [Line Items]
Revenues	54.5	42.2	97.9	69.6
MIS [Member] | Structured Finance (SFG) [Member] | External Revenues [Member] | Other product lines [Member]
Disaggregation of Revenue [Line Items]
Revenues	0.8	0.6	1.4	1.0
MIS [Member] | Financial institutions (FIG) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	120.6	102.4	234.9	214.7
MIS [Member] | Financial institutions (FIG) [Member] | External Revenues [Member] | Banking [Member]
Disaggregation of Revenue [Line Items]
Revenues	77.3	70.4	154.3	149.5
MIS [Member] | Financial institutions (FIG) [Member] | External Revenues [Member] | Insurance [Member]
Disaggregation of Revenue [Line Items]
Revenues	32.9	23.4	61.2	48.5
MIS [Member] | Financial institutions (FIG) [Member] | External Revenues [Member] | Managed investments [Member]
Disaggregation of Revenue [Line Items]
Revenues	7.2	5.9	12.9	11.0
MIS [Member] | Financial institutions (FIG) [Member] | External Revenues [Member] | Other product lines [Member]
Disaggregation of Revenue [Line Items]
Revenues	3.2	2.7	6.5	5.7
MIS [Member] | Public, Project And Infrastructure Finance (PPIF) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	108.1	104.7	201.3	202.8
MIS [Member] | Public, Project And Infrastructure Finance (PPIF) [Member] | External Revenues [Member] | Public finance / sovereign [Member]
Disaggregation of Revenue [Line Items]
Revenues	51.7	53.2	98.6	106.2
MIS [Member] | Public, Project And Infrastructure Finance (PPIF) [Member] | External Revenues [Member] | Project and infrastructure [Member]
Disaggregation of Revenue [Line Items]
Revenues	56.4	51.5	102.7	96.6
MIS [Member] | Rating Revenue [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	747.9	682.1	1,462.8	1,345.5
MIS [Member] | MIS Other [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	4.4	4.6	9.4	9.4
MA [Member]
Disaggregation of Revenue [Line Items]
Revenues	425.2	317.6	837.0	628.3
MA [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	422.8	313.8	829.6	620.8
MA [Member] | Intersegment Royalty [Member]
Disaggregation of Revenue [Line Items]
Revenues	2.4	3.8	7.4	7.5
MA [Member] | Research, Data And Analytics (RD&A) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	279.9	180.9	549.1	356.3
MA [Member] | Enterprise Risk Solutions (ERS) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	105.5	97.3	205.6	193.2
MA [Member] | Professional Services (PS) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	37.4	35.6	74.9	71.3
Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ (33.0)	$ (30.8)	$ (67.8)	$ (60.5)

XML

Revenues disaggregated by Line of Business and Geographical Area (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 1,175.1	$ 1,000.5	$ 2,301.8	$ 1,975.7
U S
Disaggregation of Revenue [Line Items]
Revenues	625.4	567.8	1,223.1	1,145.6
International [Member]
Disaggregation of Revenue [Line Items]
Revenues	549.7	432.7	1,078.7	830.1
MIS [Member]
Disaggregation of Revenue [Line Items]
Revenues	782.9	713.7	1,532.6	1,407.9
MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	752.3	686.7	1,472.2	1,354.9
MIS [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	451.2	412.4	884.6	834.9
MIS [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	301.1	274.3	587.6	520.0
MIS [Member] | Corporate finance (CFG) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	377.6	355.8	755.3	708.6
MIS [Member] | Corporate finance (CFG) [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	242.3	220.8	489.0	464.6
MIS [Member] | Corporate finance (CFG) [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	135.3	135.0	266.3	244.0
MIS [Member] | Structured Finance (SFG) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	141.6	119.2	271.3	219.4
MIS [Member] | Structured Finance (SFG) [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	93.3	81.6	177.9	146.6
MIS [Member] | Structured Finance (SFG) [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	48.3	37.6	93.4	72.8
MIS [Member] | Financial institutions (FIG) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	120.6	102.4	234.9	214.7
MIS [Member] | Financial institutions (FIG) [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	54.4	43.9	102.9	94.5
MIS [Member] | Financial institutions (FIG) [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	66.2	58.5	132.0	120.2
MIS [Member] | Public, Project And Infrastructure Finance (PPIF) [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	108.1	104.7	201.3	202.8
MIS [Member] | Public, Project And Infrastructure Finance (PPIF) [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	61.1	66.0	114.5	129.0
MIS [Member] | Public, Project And Infrastructure Finance (PPIF) [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	47.0	38.7	86.8	73.8
MIS [Member] | Rating Revenue [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	747.9	682.1	1,462.8	1,345.5
MIS [Member] | Rating Revenue [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	451.1	412.3	884.3	834.7
MIS [Member] | Rating Revenue [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	296.8	269.8	578.5	510.8
MIS [Member] | MIS Other [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	4.4	4.6	9.4	9.4
MIS [Member] | MIS Other [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	0.1	0.1	0.3	0.2
MIS [Member] | MIS Other [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	4.3	4.5	9.1	9.2
MA [Member]
Disaggregation of Revenue [Line Items]
Revenues	425.2	317.6	837.0	628.3
MA [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	422.8	313.8	829.6	620.8
MA [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	174.2	155.4	338.5	310.7
MA [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	248.6	158.4	491.1	310.1
MA [Member] | Research Data And Analytics [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	279.9	180.9	549.1	356.3
MA [Member] | Research Data And Analytics [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	118.2	101.7	230.8	203.1
MA [Member] | Research Data And Analytics [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	161.7	79.2	318.3	153.2
MA [Member] | Enterprise Risk Solutions [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	105.5	97.3	205.6	193.2
MA [Member] | Enterprise Risk Solutions [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	42.6	40.4	81.1	80.6
MA [Member] | Enterprise Risk Solutions [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	62.9	56.9	124.5	112.6
MA [Member] | Professional Services [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	37.4	35.6	74.9	71.3
MA [Member] | Professional Services [Member] | U S | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	13.4	13.3	26.6	27.0
MA [Member] | Professional Services [Member] | International [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 24.0	$ 22.3	$ 48.3	$ 44.3

XML

Transaction and Relationship Revenue (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 1,175.1	$ 1,000.5	$ 2,301.8	$ 1,975.7
Percentage of Revenues	100.00%	100.00%	100.00%	100.00%
MIS [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 782.9	$ 713.7	$ 1,532.6	$ 1,407.9
MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 752.3	$ 686.7	$ 1,472.2	$ 1,354.9
Percentage of Revenues	100.00%	100.00%	100.00%	100.00%
MA [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 425.2	$ 317.6	$ 837.0	$ 628.3
MA [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 422.8	$ 313.8	$ 829.6	$ 620.8
Percentage of Revenues	100.00%	100.00%	100.00%	100.00%
Corporate finance (CFG) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 377.6	$ 355.8	$ 755.3	$ 708.6
Percentage of Revenues	100.00%	100.00%	100.00%	100.00%
Structured Finance (SFG) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 141.6	$ 119.2	$ 271.3	$ 219.4
Percentage of Revenues	100.00%	100.00%	100.00%	100.00%
Financial institutions (FIG) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 120.6	$ 102.4	$ 234.9	$ 214.7
Percentage of Revenues	100.00%	100.00%	100.00%	100.00%
Public, Project And Infrastructure Finance (PPIF) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 108.1	$ 104.7	$ 201.3	$ 202.8
Percentage of Revenues	100.00%	100.00%	100.00%	100.00%
MIS Other [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 4.4	$ 4.6	$ 9.4	$ 9.4
Percentage of Revenues	100.00%	100.00%	100.00%	100.00%
Transaction Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 562.4	$ 511.9	$ 1,086.2	$ 1,007.5
Percentage of Revenues	48.00%	51.00%	47.00%	51.00%
Transaction Revenue [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 495.9	$ 449.1	$ 958.9	$ 880.1
Percentage of Revenues	66.00%	65.00%	65.00%	65.00%
Transaction Revenue [Member] | MA [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 66.5	$ 62.8	$ 127.3	$ 127.4
Percentage of Revenues	16.00%	20.00%	15.00%	21.00%
Transaction Revenue [Member] | Corporate finance (CFG) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 274.3	$ 262.5	$ 549.2	$ 523.1
Percentage of Revenues	73.00%	74.00%	73.00%	74.00%
Transaction Revenue [Member] | Structured Finance (SFG) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 95.3	$ 75.2	$ 178.4	$ 132.7
Percentage of Revenues	67.00%	63.00%	66.00%	60.00%
Transaction Revenue [Member] | Financial institutions (FIG) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 56.2	$ 43.9	$ 106.2	$ 97.3
Percentage of Revenues	47.00%	43.00%	45.00%	45.00%
Transaction Revenue [Member] | Public, Project And Infrastructure Finance (PPIF) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 69.7	$ 67.2	$ 124.1	$ 126.4
Percentage of Revenues	64.00%	64.00%	62.00%	62.00%
Transaction Revenue [Member] | MIS Other [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 0.4	$ 0.3	$ 1.0	$ 0.6
Percentage of Revenues	9.00%	7.00%	11.00%	6.00%
Relationship Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 612.7	$ 488.6	$ 1,215.6	$ 968.2
Percentage of Revenues	52.00%	49.00%	53.00%	49.00%
Relationship Revenue [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 256.4	$ 237.6	$ 513.3	$ 474.8
Percentage of Revenues	34.00%	35.00%	35.00%	35.00%
Relationship Revenue [Member] | MA [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 356.3	$ 251.0	$ 702.3	$ 493.4
Percentage of Revenues	84.00%	80.00%	85.00%	79.00%
Relationship Revenue [Member] | Corporate finance (CFG) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 103.3	$ 93.3	$ 206.1	$ 185.5
Percentage of Revenues	27.00%	26.00%	27.00%	26.00%
Relationship Revenue [Member] | Structured Finance (SFG) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 46.3	$ 44.0	$ 92.9	$ 86.7
Percentage of Revenues	33.00%	37.00%	34.00%	40.00%
Relationship Revenue [Member] | Financial institutions (FIG) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 64.4	$ 58.5	$ 128.7	$ 117.4
Percentage of Revenues	53.00%	57.00%	55.00%	55.00%
Relationship Revenue [Member] | Public, Project And Infrastructure Finance (PPIF) [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 38.4	$ 37.5	$ 77.2	$ 76.4
Percentage of Revenues	36.00%	36.00%	38.00%	38.00%
Relationship Revenue [Member] | MIS Other [Member] | MIS [Member] | External Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 4.0	$ 4.3	$ 8.4	$ 8.8
Percentage of Revenues	91.00%	93.00%	89.00%	94.00%

XML

Revenue Recognition Timing (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue Recognized	$ 1,175.1	$ 2,301.8
At Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenue Recognized	509.9	988.4
Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue Recognized	665.2	1,313.4
Moodys Investors Service [Member]
Disaggregation of Revenue [Line Items]
Revenue Recognized	752.3	1,472.2
Moodys Investors Service [Member] | At Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenue Recognized	495.9	958.9
Moodys Investors Service [Member] | Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue Recognized	256.4	513.3
Moodys Analytics [Member]
Disaggregation of Revenue [Line Items]
Revenue Recognized	422.8	829.6
Moodys Analytics [Member] | At Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenue Recognized	14.0	29.5
Moodys Analytics [Member] | Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue Recognized	$ 408.8	$ 800.1

XML

Schedule of Changes in the Deferred Revenue Balances (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Deferred revenue - current	$ 860.5	$ 860.5	$ 883.6
Deferred revenue - noncurrent	126.0	126.0	$ 140.0
Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Beginning Balance	1,126.5	946.3
Revenue recognized that was included in the contract liability balance at the beginning of the period	(357.2)	(472.6)
Increases due to billings excluding amounts recognized as revenue during the period	244.7	527.8
Effect of exchange rate changes	(27.5)	(15.0)
Total Changes in deferred revenue	(140.0)	40.2
Ending Balance	986.5	986.5
MIS [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue - current	255.9	255.9
Deferred revenue - noncurrent	121.6	121.6
MIS [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Beginning Balance	397.5	334.7
Revenue recognized that was included in the contract liability balance at the beginning of the period	(127.2)	(165.4)
Increases due to billings excluding amounts recognized as revenue during the period	112.6	212.6
Effect of exchange rate changes	(5.4)	(4.4)
Total Changes in deferred revenue	(20.0)	42.8
Ending Balance	377.5	377.5
MA [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue - current	604.6	604.6
Deferred revenue - noncurrent	4.4	4.4
MA [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Beginning Balance	729.0	611.6
Revenue recognized that was included in the contract liability balance at the beginning of the period	(230.0)	(307.2)
Increases due to billings excluding amounts recognized as revenue during the period	132.1	315.2
Effect of exchange rate changes	(22.1)	(10.6)
Total Changes in deferred revenue	(120.0)	(2.6)
Ending Balance	$ 609.0	$ 609.0

XML

Expected Recognition Period for Remaining Performance Obligations (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
MIS [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 131.9
MIS [Member] | Less Than One Year [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 6.2
MIS [Member] | Less Than One Year [Member] | Maximum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
MIS [Member] | 1 - 5 years [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 65.6
MIS [Member] | 1 - 5 years [Member] | Minimum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
MIS [Member] | 1 - 5 years [Member] | Maximum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	5 years
MIS [Member] | 6 - 10 Years [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 41.7
MIS [Member] | 6 - 10 Years [Member] | Minimum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 years
MIS [Member] | 6 - 10 Years [Member] | Maximum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	10 years
MIS [Member] | 11 - 15 years [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 8.0
MIS [Member] | 11 - 15 years [Member] | Minimum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	11 years
MIS [Member] | 11 - 15 years [Member] | Maximum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	15 years
MIS [Member] | 16-20 years [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 4.3
MIS [Member] | 16-20 years [Member] | Minimum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	16 years
MIS [Member] | 16-20 years [Member] | Maximum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	20 years
MIS [Member] | Over 20 Years [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 6.1
MIS [Member] | Over 20 Years [Member] | Minimum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	20 years
MA [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 1,384.7
MA [Member] | Less Than One Year [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 1,050.1
MA [Member] | Less Than One Year [Member] | Maximum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
MA [Member] | 1 - 2 Years [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 232.6
MA [Member] | 1 - 2 Years [Member] | Minimum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
MA [Member] | 1 - 2 Years [Member] | Maximum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	2 years
MA [Member] | Over 2 Years [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation	$ 102.0
MA [Member] | Over 2 Years [Member] | Minimum [Member]
Disaggregation of Revenue [Line Items]
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	2 years

XML

Revenues - Additional Information (Detail) $ in Millions	Jun. 30, 2018 USD ($)
MIS [Member]
Disaggregation of Revenue [Line Items]
Unbilled Receivables	$ 336.7
MA [Member]
Disaggregation of Revenue [Line Items]
Unbilled Receivables	$ 34.1

XML

STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

STOCK-BASED COMPENSATION

NOTE 4. STOCK-BASED COMPENSATION

Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Stock-based compensation cost	$	34.4	$	28.7	$	69.5	$	57.1
Tax benefit	$	7.3	$	9.4	$	14.5	$	18.5

During the first six months of 2018, the Company granted 0.2million employee stock options, which had a weighted average grant date fair value of $45.87per share based on the Black-Scholes option-pricing model. The Company also granted 0.7million shares of restricted stock in the first six months of 2018, which had a weighted average grant date fair value of $167.48per share. Both the employee stock options and restricted stock generally vest ratably over a four-year period. Additionally, the Company granted 0.1million shares of performance-based awards whereby the number of shares that ultimately vest are based on the achievement of certain non-market based performance metrics of the Company over a three-year period. The weighted average grant date fair value of these awards was $162.42 per share.

The following weighted average assumptions were used in determining the fair value for options granted in 2018:

Expected dividend yield	1.05%
Expected stock volatility	25.6%
Risk-free interest rate	2.81%
Expected holding period	6.2 years
Grant date fair value	$45.87

Unrecognized stock-based compensation expense at June 30,2018 was $9.7 million and $191.4million for stock options and unvested restricted stock, respectively, which is expected to be recognized over a weighted average period of 1.4 years and 1.7years, respectively. Additionally, there was $37.5 million of unrecognized stock-based compensation expense relating to the aforementioned non-market based performance-based awards, which is expected to be recognized over a weighted average period of 1.0 years.

The following tables summarize information relating to stock option exercises and restricted stock vesting:

	Six Months Ended
	June 30,
Exercise of stock options:	2018		2017
Proceeds from stock option exercises	$	31.9	$	35.3
Aggregate intrinsic value	$	84.4	$	52.2
Tax benefit realized upon exercise	$	20.6	$	18.3
Number of shares exercised		0.7		0.8
	Six Months Ended
	June 30,
Vesting of restricted stock:	2018		2017
Fair value of shares vested	$	148.7	$	107.9
Tax benefit realized upon vesting	$	34.3	$	34.1
Number of shares vested		0.9		1.0
	Six Months Ended
	June 30,
Vesting of performance-based restricted stock:	2018		2017
Fair value of shares vested	$	23.0	$	19.5
Tax benefit realized upon vesting	$	5.5	$	6.9
Number of shares vested		0.1		0.2

XML

STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Stock-Based Compensation Cost and Associated Tax Benefit

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Stock-based compensation cost	$	34.4	$	28.7	$	69.5	$	57.1
Tax benefit	$	7.3	$	9.4	$	14.5	$	18.5

Weighted Average Assumptions used in Determining Fair Value for Options Granted

Expected dividend yield	1.05%
Expected stock volatility	25.6%
Risk-free interest rate	2.81%
Expected holding period	6.2 years
Grant date fair value	$45.87

Stock Option Exercises and Restricted Stock Vesting

	Six Months Ended
	June 30,
Exercise of stock options:	2018		2017
Proceeds from stock option exercises	$	31.9	$	35.3
Aggregate intrinsic value	$	84.4	$	52.2
Tax benefit realized upon exercise	$	20.6	$	18.3
Number of shares exercised		0.7		0.8
	Six Months Ended
	June 30,
Vesting of restricted stock:	2018		2017
Fair value of shares vested	$	148.7	$	107.9
Tax benefit realized upon vesting	$	34.3	$	34.1
Number of shares vested		0.9		1.0
	Six Months Ended
	June 30,
Vesting of performance-based restricted stock:	2018		2017
Fair value of shares vested	$	23.0	$	19.5
Tax benefit realized upon vesting	$	5.5	$	6.9
Number of shares vested		0.1		0.2

XML

Stock-Based Compensation Cost and Associated Tax Benefit (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Stock-based compensation expense	$ 34.4	$ 28.7	$ 69.5	$ 57.1
Tax benefit	$ 7.3	$ 9.4	$ 14.5	$ 18.5

XML

Weighted Average Assumptions used in Determining Fair Value for Options Granted (Detail)	6 Months Ended
	Jun. 30, 2018 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected dividend yield	1.05%
Expected stock volatility	25.60%
Risk-free interest rate	2.81%
Expected holding period	6 years 2 months 12 days
Grant date fair value	$ 45.87

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Stock Option Exercises and Restricted Stock Vesting (Detail) - USD ($) shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Employee Stock Options [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Proceeds from stock option exercises	$ 31.9	$ 35.3
Aggregate intrinsic value	84.4	52.2
Tax benefit realized upon exercise	$ 20.6	$ 18.3
Number of shares exercised	0.7	0.8
Restricted Stock [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Fair value of shares vested	$ 148.7	$ 107.9
Tax benefit realized upon vesting	$ 34.3	$ 34.1
Number of shares vested	0.9	1.0
Vesting of Performance Based Restricted Stock [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Fair value of shares vested	$ 23.0	$ 19.5
Tax benefit realized upon vesting	$ 5.5	$ 6.9
Number of shares vested	0.1	0.2

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Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Employee stock options, granted | shares	0.2
Employee stock options, weighted average grant date fair value | $ / shares	$ 45.87
Employee Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Other than options, award vesting period (in years)	1 year 4 months 26 days
Unrecognized compensation expense | $	$ 9.7
Weighted average period to recognize expense	4 years
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Other than options, Shares granted | shares	0.7
Other than options, weighted average grant date fair value | $ / shares	$ 167.48
Other than options, award vesting period (in years)	1 year 8 months 12 days
Unrecognized compensation expense | $	$ 191.4
Weighted average period to recognize expense	4 years
Performance Based Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Other than options, Shares granted | shares	0.1
Other than options, weighted average grant date fair value | $ / shares	$ 162.42
Other than options, award vesting period (in years)	1 year
Unrecognized compensation expense | $	$ 37.5
Weighted average period to recognize expense	3 years

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INCOME TAXES

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

INCOME TAXES

NOTE 5. INCOME TAXES

Moody’s effective tax rate was 23.7% and 32.1% for the three months ended June 30, 2018 and 2017, respectively, and 19.4% and 27.8% for the six month periods ended June 30, 2018 and 2017, respectively. The decline in the tax rate primarily reflects the impact of an enacted lower corporate tax rate in the U.S. pursuant to the Tax Act. Additionally, the ETR in the first half of 2018 includes an approximate $36 million benefit relating to Excess Tax Benefits on stock-based compensation as well as a net uncertain tax position benefit pursuant to statute of limitation lapses. The ETR in the first half of 2017 reflected the non-taxable CCXI gain as well as approximately $28 million in Excess Tax Benefits on stock-based compensation partially offset by tax on the Purchase Price Hedge Gain which was taxed in a higher tax jurisdiction.

On December 22, 2017, the Tax Act was signed into law which resulted in significant changes to U.S. corporate tax laws. The Tax Act includes a mandatory one-time deemed repatriation tax (“transition tax”) on previously untaxed accumulated earnings of foreign subsidiaries and beginning in 2018 reduces the statutory federal corporate income tax rate from 35% to 21%. Due to the complexities of the Tax Act, the SEC issued guidance requiring that companies provide a reasonable estimate of the impact of the Tax Act to the extent such reasonable estimate has been determined. Accordingly,  as of December 31, 2017 the Company recorded a provisional estimate for the transition tax of $247.3 million, a portion of which will be payable over eight years, starting in 2018, and will not accrue interest. The above provisional estimate may be impacted by a number of additional considerations, including but not limited to the issuance of regulations and our ongoing analysis of the new law.

As a result of the Tax Act, all previously net undistributed foreign earnings have now been subject to U.S. tax. The Company continues to evaluate which entities it will indefinitely reinvest earnings outside the U.S. The Company has provided non-U.S. deferred taxes for those entities whose earnings are not considered permanently reinvested outside of the U.S.

The Company classifies interest related to UTBs in interest expense, net in its consolidated statements of operations. Penalties, if incurred, would be recognized in other non-operating (expense) income, net. The Company had a decrease in its UTBs of $92.6 million ($92.3 million net of federal tax) during the second quarter of 2018 and a net increase in its UTBs during the first six months of 2018 of $9.2 million ($7.5 million net of federal tax).  The movement in UTBs was primarily related to the transition tax under U.S. tax reform.

Moody’s Corporation and subsidiaries are subject to U.S. federal income tax as well as income tax in various state, local and foreign jurisdictions. The Company’s U.S. federal income tax returns for 2013 through 2016 remain open to examination. The Company’s New York State tax returns for 2011 through 2014 are currently under examination and the Company’s New York City tax return for 2014 is currently under examination. The Company’s U.K. tax return for 2012 is currently under examination and its returns for 2013 through 2016 remain open to examination.

For ongoing audits, it is possible the balance of UTBs could decrease in the next twelve months as a result of the settlement of these audits, which might involve the payment of additional taxes, the adjustment of certain deferred taxes and/or the recognition of tax benefits. It is also possible that new issues might be raised by tax authorities which could necessitate increases to the balance of UTBs. As the Company is unable to predict the timing or outcome of these audits, it is therefore unable to estimate the amount of changes to the balance of UTBs at this time. However, the Company believes that it has adequately provided for its financial exposure relating to all open tax years by tax jurisdiction in accordance with the applicable provisions of Topic 740 of the ASC regarding UTBs.

The following table shows the amount the Company paid for income taxes:

	Six Months Ended
	June 30,
	2018		2017
Income taxes paid	$	237.3	$	83.9

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INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Income Taxes Paid

	Six Months Ended
	June 30,
	2018		2017
Income taxes paid	$	237.3	$	83.9

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Income Taxes Paid (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Income Taxes Paid, Net [Abstract]
Income Taxes Paid	$ 237.3	$ 83.9

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 22, 2017
Income Tax Contingency [Line Items]
Effective tax rate	23.70%	32.10%	19.40%	27.80%
Overall increase (decrease) in unrecognized tax benefits (UTPs)	$ 92.6		$ 9.2
Excess Tax Benefit from Share Based Compensation			36.0	$ 28.0
Estimated Repatriation Tax Liability Resulting from Tax Reform Legislation						$ 247.3
U.S. Statutory Tax Rate					35.00%
Net of federal tax benefit [Member]
Income Tax Contingency [Line Items]
Overall increase (decrease) in unrecognized tax benefits (UTPs)	$ 92.3		$ 7.5
Tax Reform [Member]
Income Tax Contingency [Line Items]
U.S. Statutory Tax Rate					21.00%

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WEIGHTED AVERAGE SHARES OUTSTANDING

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

WEIGHTED AVERAGE SHARES OUTSTANDING

NOTE 6. WEIGHTED AVERAGE SHARES OUTSTANDING

Below is a reconciliation of basic to diluted shares outstanding:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2018		2017		2018		2017
Basic			191.9		191.0		191.6		191.1
	Dilutive effect of shares issuable under stock-based compensation plans		2.5		2.8		2.9		3.0
Diluted			194.4		193.8		194.5		194.1
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above			0.5		0.7		0.7		1.0

The calculation of diluted EPS requires certain assumptions regarding the use of both cash proceeds and assumed proceeds that would be received upon the exercise of stock options and vesting of restricted stock outstanding as of June 30, 2018 and 2017.

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WEIGHTED AVERAGE SHARES OUTSTANDING (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Reconciliation of Basic to Diluted Shares Outstanding

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2018		2017		2018		2017
Basic			191.9		191.0		191.6		191.1
	Dilutive effect of shares issuable under stock-based compensation plans		2.5		2.8		2.9		3.0
Diluted			194.4		193.8		194.5		194.1
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above			0.5		0.7		0.7		1.0

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Reconciliation of Basic to Diluted Shares Outstanding (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Basic	191.9	191.0	191.6	191.1
Dilutive effect of shares issuable under stock-based compensation plans	2.5	2.8	2.9	3.0
Diluted	194.4	193.8	194.5	194.1
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above	0.5	0.7	0.7	1.0

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CASH EQUIVALENT AND INVESTMENTS

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

CASH EQUIVALENT AND INVESTMENT

NOTE 7. CASH EQUIVALENTS AND INVESTMENTS

The table below provides additional information on the Company’s cash equivalents and investments:

	As of June 30, 2018
							Balance sheet location
	Cost		Gross Unrealized Gains		Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	35.6	$	-	$	35.6	$	35.6	$	-	$	-
Certificates of deposit and money market deposit accounts (1)	$	421.9	$	-	$	421.9	$	315.1	$	101.2	$	5.6
Fixed maturity and open ended mutual funds (2)	$	37.3	$	5.1	$	42.4	$	-	$	-	$	42.4
	As of December 31, 2017
							Balance sheet location
	Cost		Gross Unrealized Gains		Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	42.2	$	-	$	42.2	$	42.2	$	-	$	-
Certificates of deposit and money market deposit accounts (1)	$	351.4	$	-	$	351.4	$	238.6	$	111.8	$	1.0
Fixed maturity and open ended mutual funds (2)	$	16.8	$	4.3	$	21.1	$	-	$	-	$	21.1
(1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one to 12 months at both June 30, 2018 and December 31, 2017. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 to 42 months at June 30, 2018 and 15 to 48 months at December 31, 2017. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.
(2) Consists of investments in fixed maturity mutual funds and open-ended mutual funds. The remaining contractual maturities for the fixed maturity instruments is one month at June 30, 2018 and range from six months to seven months at December 31, 2017.

As a result of the adoption of ASU 2016-01, as further discussed in Note 1 and Note 2, the money market mutual funds and the fixed maturity and open-ended mutual funds in the table above are deemed to be equity securities with readily determinable fair values with changes in the fairvalue recognized through net incomeunder ASC Topic 321. The fair value of these instruments is determined using Level 1 inputs as defined in the ASC.

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CASH EQUIVALENT AND INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Schedule of Cash and Cash Equivalents

	As of June 30, 2018
							Balance sheet location
	Cost		Gross Unrealized Gains		Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	35.6	$	-	$	35.6	$	35.6	$	-	$	-
Certificates of deposit and money market deposit accounts (1)	$	421.9	$	-	$	421.9	$	315.1	$	101.2	$	5.6
Fixed maturity and open ended mutual funds (2)	$	37.3	$	5.1	$	42.4	$	-	$	-	$	42.4
	As of December 31, 2017
							Balance sheet location
	Cost		Gross Unrealized Gains		Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Money market mutual funds	$	42.2	$	-	$	42.2	$	42.2	$	-	$	-
Certificates of deposit and money market deposit accounts (1)	$	351.4	$	-	$	351.4	$	238.6	$	111.8	$	1.0
Fixed maturity and open ended mutual funds (2)	$	16.8	$	4.3	$	21.1	$	-	$	-	$	21.1
(1) Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one to 12 months at both June 30, 2018 and December 31, 2017. The remaining contractual maturities for the certificates of deposits classified in other assets are 13 to 42 months at June 30, 2018 and 15 to 48 months at December 31, 2017. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.
(2) Consists of investments in fixed maturity mutual funds and open-ended mutual funds. The remaining contractual maturities for the fixed maturity instruments is one month at June 30, 2018 and range from six months to seven months at December 31, 2017.

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Cash Equivalent and Investments (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Line Items]
Fair value	$ 42.4	$ 21.1
Cash and cash equivalents	1,314.5	1,071.5	$ 3,280.9	$ 2,051.5
Short-term investments	101.2	111.8
Money Market [Member]
Cash and Cash Equivalents [Line Items]
Cost	35.6	42.2
Fair value	35.6	42.2
Cash and cash equivalents	35.6	42.2
Certificates Of Deposit [Member]
Cash and Cash Equivalents [Line Items]
Cost	421.9	351.4
Fair value	421.9	351.4
Cash and cash equivalents	315.1	238.6
Short-term investments	101.2	111.8
Other assets	5.6	1.0
Fixed Maturity and Mutual Funds [Member]
Cash and Cash Equivalents [Line Items]
Cost	37.3	16.8
Gross unrealized gain	5.1	4.3
Fair value	42.4	21.1
Other assets	$ 42.4	$ 21.1

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Cash Equivalent and Investments (Parenthetical) (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Fixed Maturity and Mutual Funds [Member]
Schedule Of Investments [Line Items]
Securities Maturity period	1 month
Minimum [Member] | Certificates Of Deposit [Member] | Short Term Investments [Member]
Schedule Of Investments [Line Items]
Securities Maturity period	1 month	1 month
Minimum [Member] | Certificates Of Deposit [Member] | Other Assets [Member]
Schedule Of Investments [Line Items]
Securities Maturity period	13 months	15 months
Minimum [Member] | Fixed Maturity and Mutual Funds [Member]
Schedule Of Investments [Line Items]
Securities Maturity period		6 months
Maximum [Member] | Certificates Of Deposit [Member] | Short Term Investments [Member]
Schedule Of Investments [Line Items]
Securities Maturity period	12 months	12 months
Maximum [Member] | Certificates Of Deposit [Member] | Cash And Cash Equivalents [Member]
Schedule Of Investments [Line Items]
Securities Maturity period	90 days
Maximum [Member] | Certificates Of Deposit [Member] | Other Assets [Member]
Schedule Of Investments [Line Items]
Securities Maturity period	42 months	48 months
Maximum [Member] | Fixed Maturity and Mutual Funds [Member]
Schedule Of Investments [Line Items]
Securities Maturity period		7 months

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ACQUISITIONS

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

ACQUISITIONS

NOTE 8. ACQUISITIONS

The business combinations described below are accounted for using the acquisition method of accounting whereby assets acquired and liabilities assumed were recognized at fair value on the date of the transaction. Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded to goodwill.

Bureau van Dijk

On August 10, 2017, a subsidiary of the Company acquired 100% of Yellow Maple I B.V., an indirect parent company of Bureau van Dijk Electronic Publishing B.V., a global provider of business intelligence and company information products. The cash payment of $3,542.0 million was funded with a combination of cash on hand, primarily offshore, and new debt financing. The acquisition extends Moody’s position as a leader in risk data and analytical insight.

Shown below is the purchase price allocation, which summarizes the fair value of the assets and liabilities assumed, at the date of acquisition:

(Amounts in millions)
Current assets				$	158.4
Property and equipment, net					4.2
Intangible assets:
	Customer relationships (23 year weighted average life)	$	998.7
	Product technology (12 year weighted average life)		258.5
	Trade name (18 year weighted average life)		82.3
	Database (10 year weighted average life)		12.9
	Total intangible assets (21 year weighted average life)				1,352.4
Goodwill					2,614.7
Other assets					5.9
Liabilities
	Deferred revenue	$	(101.1)
	Accounts payable and accrued liabilities		(44.3)
	Deferred tax liabilities, net		(329.8)
	Other liabilities		(118.4)
	Total liabilities				(593.6)
Net assets acquired				$	3,542.0

The Company has substantially completed the valuation analysis of the fair market value of assets and liabilities of the Bureau van Dijk business. The final allocation may include changes in allocations to acquired intangible assets as well as goodwill and other changes to assets and liabilities including reserves for uncertain tax positions and deferred tax liabilities. The determination of estimated useful lives of acquired intangibles assets are also substantially complete.Current assets in the table above include acquired cash of $36.0 million. Additionally, current assets include accounts receivable of approximately $88.0 million (net of an allowance for uncollectible accounts of 3.7 million).

The acquired deferred revenue balance of approximately $154 million was reduced by $53 million as part of acquisition accounting to establish the fair value of deferred revenue.This will reduce reported revenue by $53 million over the remaining contractual period of in-progress customer arrangements assumed as of the acquisition date.This resulted in approximately $6 million and $16 million less in reported revenue for the three and six months ended June 30, 2018, respectively, with the remaining approximate $2 million to reduce revenue in subsequent quarterly periods during 2018. Amortization of acquired intangible assets was $18.0 million and $36.6 million for three months andsix months ended June 30, 2018, respectively.

Goodwill

Under the acquisition method of accounting for business combinations, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill. Goodwill typically results through expected synergies from combining operations of an acquiree and an acquirer, anticipated new customer acquisition and products, as well as from intangible assets that do not qualify for separate recognition. The goodwill recognized as a result of this acquisition includes, among other things, the value of combining the complementary product portfolios of the Company and Bureau van Dijk, which is expected to extend the Company’s reach to new and evolving market segments as well as cost savings synergies, expected new customer acquisitions and products.

Goodwill, which has been assigned to the MA segment, is not deductible for tax purposes.

Bureau van Dijkis a separate reporting unit for purposes of the Company’s annual goodwill impairment assessment.

Other Liabilities Assumed

In connection with the acquisition, the Company assumed liabilities relating to UTPs as well as deferred tax liabilities which relate to acquired intangible assets. These items are included in other liabilities in the table above.

Supplementary Unaudited Pro Forma Information

Supplemental information on an unaudited pro forma basis is presented below for the six months ended June 30, 2017 as if the acquisition of Bureau van Dijk occurred on January 1, 2016. The pro forma financial information is presented for comparative purposes only and is based on certain estimates and assumptions, which the Company believes to be reasonable but not necessarily indicative of future results of operations or the results that would have been reported if the acquisition had been completed at January 1, 2016. The unaudited pro forma information includes amortization of acquired intangible assets based on the purchase price allocation and an estimate of useful lives reflected above, and incremental financing costs resulting from the acquisition, net of income tax, which was estimated using the weighted average statutory tax rates in effect in the jurisdiction for which the pro forma adjustment relates.

(Amounts in millions)	For six months ended June 30, 2017
Pro forma Revenue	$	2,115.3
Pro forma Net Income attributable to Moody's	$	656.9

The unaudited pro forma results do not include any anticipated cost savings or other effects of the planned integration of Bureau van Dijk. Accordingly, the pro forma results above are not necessarily indicative of the results that would have been reported if the acquisition had occurred on the dates indicated, nor are the pro forma results indicative of results which may occur in the future. The Bureau van Dijk results included in the table above have been converted to U.S. GAAP from IFRS as issued by the IASB and have been translated to USD at rates in effect for the periods presented.

SCDM Financial

On February 13, 2017, a subsidiary of the Company acquired the structured finance data and analytics business of SCDM Financial. The aggregate purchase price was not material and the near term impact to the Company’s operations and cash flow is not expected to be material. This business unit operates in the MA reportable segment and goodwill related to this acquisition has been allocated to the RD&A reporting unit.

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ACQUISITIONS (Tables) - Bureau van Dijk (BvD) [Member]

6 Months Ended

Jun. 30, 2018

Summary of Fair Values of Assets Acquired and Liabilities Assumed

(Amounts in millions)
Current assets				$	158.4
Property and equipment, net					4.2
Intangible assets:
	Customer relationships (23 year weighted average life)	$	998.7
	Product technology (12 year weighted average life)		258.5
	Trade name (18 year weighted average life)		82.3
	Database (10 year weighted average life)		12.9
	Total intangible assets (21 year weighted average life)				1,352.4
Goodwill					2,614.7
Other assets					5.9
Liabilities
	Deferred revenue	$	(101.1)
	Accounts payable and accrued liabilities		(44.3)
	Deferred tax liabilities, net		(329.8)
	Other liabilities		(118.4)
	Total liabilities				(593.6)
Net assets acquired				$	3,542.0

BvD Pro Forma Information

(Amounts in millions)	For six months ended June 30, 2017
Pro forma Revenue	$	2,115.3
Pro forma Net Income attributable to Moody's	$	656.9

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Purchase Price Allocation (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Aug. 10, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Indemnification asset	$ 16.3	$ 17.0
Goodwill	$ 3,662.7	$ 3,753.2		$ 1,023.6
Bureau van Dijk (BvD) [Member]
Business Acquisition [Line Items]
Current assets			$ 158.4
Property and equipment, net			4.2
Total intangible assets			1,352.4
Goodwill			2,614.7
Other assets			5.9
Deferred revenue			(101.1)
Accounts payable and accrued liabilities			(44.3)
Deferred tax liabilities, net			(329.8)
Other liabilities			(118.4)
Liabilities assumed			(593.6)
Net assets acquired			3,542.0
Bureau van Dijk (BvD) [Member] | Trade Names [Member]
Business Acquisition [Line Items]
Total intangible assets			82.3
Bureau van Dijk (BvD) [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Total intangible assets			998.7
Bureau van Dijk (BvD) [Member] | Databases [Member]
Business Acquisition [Line Items]
Total intangible assets			12.9
Bureau van Dijk (BvD) [Member] | Product Technology [Member]
Business Acquisition [Line Items]
Total intangible assets			$ 258.5

XML

Purchase Price Allocation (Parenthetical) (Detail) - Bureau van Dijk (BvD) [Member]	Aug. 10, 2017
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)	21 years
Trade Names [Member]
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)	18 years
Customer Relationships [Member]
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)	23 years
Databases [Member]
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)	10 years
Product Technology [Member]
Business Acquisition [Line Items]
Weighted average life of intangible assets acquired (in years)	12 years

XML

BvD Pro Forma Information (Detail) - Bureau van Dijk (BvD) [Member] $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Business Acquisition [Line Items]
Proforma revenue	$ 2,115.3
Proforma net income from continuing operations	$ 656.9

XML

Acquisitions - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Aug. 10, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Acquisition-Related Expenses		$ 2.0	$ 6.6	$ 2.8	$ 6.6
Amortization expense		25.1	$ 8.6	50.8	$ 17.1
Bureau van Dijk (BvD) [Member]
Business Acquisition [Line Items]
Business acquisition interests acquired	100.00%
Acquired cash included in current assets	$ 36.0
Account receivables gross included in current assets	88.0
Cash paid for acquisitions, net of cash required	3,542.0
Reduction in Deferred Revenue to establish the fair value	53.0	6.0		16.0
Allowance for Uncollectible Accounts	3.7
Amortization expense		$ 18.0		36.6
Remaining Reduction in Deferred Revenue to establish the fair value				$ 2.0
Acquired Deferred Revenue	$ 154.0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 9. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes.

Derivatives and non-derivative instruments designated as accounting hedges:

Interest Rate Swaps

The Company has entered into interest rate swaps to convert the fixed interest rate on certain of its long-term debt to a floating interest rate based on the 3-month LIBOR. The purpose of these hedges is to mitigate the risk associated with changes in the fair value of the long-term debt, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the debt. The changes in the fair value of the swaps and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest expense, net in the Company’s consolidated statement of operations.

The following table summarizes the Company’s interest rate swaps designated as fair value hedges:

Hedged Item	Nature of Swap	Notional Amount				Floating Interest Rate
			As of June 30, 2018		As of December 31, 2017
2010 Senior Notes due 2020	Pay Floating/Receive Fixed	$	500.0	$	500.0	3-month LIBOR
2017 Senior Notes due 2021	Pay Floating/Receive Fixed	$	500.0	$	-	3-month LIBOR
2014 Senior Notes due 2019	Pay Floating/Receive Fixed	$	450.0	$	450.0	3-month LIBOR
2012 Senior Notes due 2022	Pay Floating/Receive Fixed	$	80.0	$	80.0	3-month LIBOR

Refer to Note 15 for information on the cumulative amount of fair value hedging adjustmentsincluded in the carrying amount of the above hedged items.

The following table summarizes the impact to the statement of operations of the Company’s interest rate swaps designated as fair value hedges:

			Amount of income/(loss) recognized in the consolidated statements of operations
			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2018		2017		2018		2017
Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded
Interest expense, net		$	(53.4)	$	(49.7)	$	(104.1)	$	(97.1)
Descriptions	Location on Statement of Operations
Net interest settlements and accruals on interest rate swaps	Interest expense, net	$	(0.4)	$	1.8	$	(0.5)	$	4.2
Fair value changes on interest rate swaps	Interest expense, net	$	(2.3)	$	3.1	$	(11.5)	$	0.1
Fair value changes on hedged debt	Interest expense, net	$	2.3	$	(3.1)	$	11.5	$	(0.1)

Cash flow hedges

In conjunction with the issuance of the 2015 Senior Notes, the Company entered into a cross-currency swap to exchange €100 million for U.S. dollars on the date of the settlement of the notes. The purpose of this cross-currency swap was to mitigate FX risk on the remaining principal balance on the 2015 Senior Notes that initially was not designated as a net investment hedge. Under the terms of the swap, the Company paid the counterparty interest on the $110.5 million received at 3.945% per annum and the counterparty paid the Company interest on the €100 million paid at 1.75% per annum. These interest payments were settled in March of each year, beginning in 2016, until early termination of the cross-currency swap in 2017 which was at the discretion of the Company. In March 2016, the Company designated these cross-currency swaps as cash flow hedges. Accordingly, changes in fair value subsequent to the date the swaps were designated as cash flow hedges were recognized in OCI. Gains and losses on the swaps initially recognized in OCI were reclassified to the statement of operations in the period in which changes in the underlying hedged item affects net income. On December 18, 2017, when the Company terminated the cross-currency swap, it designated the full €500 million principal of the 2015 Senior Notes as a net investment hedge as discussed below.

Net investment hedges

The Company has designated €500million of the 2015 Senior Notes Due 2027 as a net investment hedge. This hedge is intended to mitigate FX exposure related to a portion of the Company’s euro net investment in certain foreign subsidiaries against changes in euro/USD exchange rates. This net investment hedge is designated as an accounting hedge under the applicable sections of Topic 815 of the ASC and will end upon the repayment of the notes in 2027 unless terminated earlier at the discretion of the Company.

In addition, during the second quarter of 2018 the Company entered into cross-currency swaps to exchange an aggregate amount of €490.1 million with corresponding interest based on the floating 3-month EURIBOR for an aggregate amount of $580.0 million with corresponding interest based on the floating 3-month U.S. LIBOR, which were designated as net investment hedges under ASC Topic 815. The purpose of these cross-currency swaps is to mitigate FX exposure related to a portion of the Company’s euro net investments in certain foreign subsidiaries against changes in euro/USD exchange rates. These hedges will expire and be settled in 2021 and 2022 for €422.5 million and €67.6 million of the total notional amount, respectively, unless terminated early at the discretion of the Company.

Beginning in 2018 with the Company’s initial application of ASU 2017-12, net periodic interest settlements and accruals on the cross currency swaps (which would include any cross-currency basis spread adjustment) are reported directly in interest expense, net. Changes in the fair value of the cross-currency swaps resulting from changes in the foreign exchange spot rate will continue to be recorded within the cumulative translation component of OCI.

The following table provides information on the gains/(losses) on the Company’s net investment and cash flow hedges:

		Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax				Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax					Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships		Three Months Ended				Three Months Ended					Three Months Ended
		June 30,				June 30,					June 30,
		2018		2017 (a)		2018		2017 (a)			2018 (c)		2017 (d)
	Cross currency swaps	$	4.0	$	-	$	-	$	-		$	2.1	$	-
	FX forwards		-		0.8		-		-			-		-
	Long-term debt		23.4		(17.5)		-		-			-		-
	Total net investment hedges	$	27.4	$	(16.7)	$	-	$	-		$	2.1	$	-
Derivatives in Cash Flow Hedging Relationships
	Cross currency swap	$	-	$	3.6	$	0.1	$	4.3	(b)	$	-	$	0.4
	Interest rate contracts		-		(0.4)		-		(1.0)			-		-
	Total cash flow hedges	$	-	$	3.2	$	0.1	$	3.3		$	-	$	0.4
Total		$	27.4	$	(13.5)	$	0.1	$	3.3		$	2.1	$	0.4
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships		Six Months Ended				Six Months Ended					Six Months Ended
		June 30,				June 30,					June 30,
		2018		2017 (a)		2018		2017 (a)			2018 (c)		2017 (d)
	Cross currency swaps	$	4.0	$	-	$		$	-		$	2.1	$	-
	FX forwards		-		0.8		-		-			-		-
	Long-term debt		12.5		(21.1)		-		-			-		-
	Total net investment hedges	$	16.5	$	(20.3)	$	-	$	-		$	2.1	$	-
Derivatives in Cash Flow Hedging Relationships
	Cross currency swap	$	1.5	$	3.4	$	0.2	$	5.3	(b)	$	-	$	0.4
	Interest rate contracts		-		(0.4)		-		(1.1)			-		-
	Total cash flow hedges	$	1.5	$	3.0	$	0.2	$	4.2		$	-	$	0.4
Total		$	18.0	$	(17.3)	$	0.2	$	4.2		$	2.1	$	0.4
	(a) For the three and six months ended June 30, 2017, amount of gain or (loss) represents only the effective portion of the hedging relationship as this period was prior to the Company’s 2018 initial application of ASU 2017-12.
	(b) For the three and six months ended June 30, 2017, reflects $7.1 million and $8.6 million, respectively in gains recorded in other non-operating income (expense), net and $2.8 million and $3.3 million relating to the tax effect of the aforementioned item.
	(c) Effective with the adoption of ASU 2017-12, the Company has elected to assess the effectiveness of its net investment hedges based on changes in spot exchange rates. Accordingly, amounts recognized directly into Net Income during the three and six months ended June 30, 2018 related to its cross-currency swaps represent net periodic interest settlements and accruals which are recognized in interest expense, net.
	(d) For the three and six months ended June 30, 2017, amount of gain or (loss) recognized directly into income represents the ineffective portion of the hedging relationship. No hedging instruments for which ineffectiveness was recognized directly into Net Income in 2017 or in years prior were outstanding at the date of adoption of ASU 2017-12.

The cumulative amount of net investment hedge and cash flow hedge gains (losses) remaining in AOCI is as follows:

		Cumulative Gains/(Losses), net of tax
		June 30,		December 31,
		2018		2017
Net investment hedges
Cross currency swaps		$	4.0	$	-
FX forwards			23.5		23.5
Long-term debt			(12.2)		(24.7)
	Total net investment hedges	$	15.3	$	(1.2)
Cash flow hedges
Interest rate contracts		$	(0.4)	$	(0.4)
Cross currency swap			2.6		1.3
	Total cash flow hedges		2.2		0.9
Total net gain (loss) in AOCI		$	17.5	$	(0.3)

Derivatives not designated as accounting hedges:

Foreign exchange forwards

The Company also enters into foreign exchange forwards to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than a subsidiary’s functional currency. These forward contracts are not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating (expense) income, net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through November 2018.

The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards:

	June 30,				December 31,
	2018				2017
Notional amount of currency pair:		Sell		Buy		Sell		Buy
Contracts sell USD for GBP	$	707.7	£	511.1	$	484.7	£	362.3
Contracts to sell USD for Japanese Yen	$	25.5	¥	2,700.0	$	24.3	¥	2,700.0
Contracts to sell USD for Canadian dollars	$	69.2	C$	89.0	$	51.7	C$	64.0
Contracts to sell USD for Singapore dollars	$	8.1	S$	11.0	$	39.2	S$	53.0
Contracts to sell USD for Euros	$	75.2	€	63.3	$	465.2	€	390.0
NOTE: € = Euro, £ = British pound, $ = U.S. dollar, ¥ = Japanese Yen, C$ = Canadian dollar, S$= Singapore dollars

Foreign Exchange Options

The Company entered into a foreign currency collar in 2017 consisting of option contracts to economically hedge the Bureau van Dijk euro denominated purchase price (as discussed further in Note 8 of the financial statements). These option contracts were not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. The foreign currency option contracts consisted of separate put and call options each in the aggregate notional amount of €2.7 billion.This collar was settled at the end of July 2017, in advance of the August 10, 2017 closing of the Bureau van Dijk acquisition.

The following table summarizes the impact to the consolidated statements of operations relating to the net (losses) gains on the Company’s derivatives which are not designated as hedging instruments:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
Derivatives not designated as accounting hedges	Location on Statement of Operations	2018		2017		2018		2017
Foreign exchange forwards	Other non-operating income, net	$	(44.9)	$	7.1	$	(17.3)	$	4.8
FX collar relating to Bureau van Dijk acquisition	Purchase Price Hedge Gain		-		41.2		-		41.2
		$	(44.9)	$	48.3	$	(17.3)	$	46.0

The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instrument as well as the carrying value of its non-derivative debt instruments designated and qualifying as net investment hedges:

		Derivative and Non-Derivative Instruments
		Balance Sheet Location	June 30, 2018		December 31, 2017
Assets:
Derivatives designated as accounting hedges:
	Cross-currency swaps designated as net investment hedges	Other assets	$	5.4	$	-
	Interest rate swaps	Other assets		-		0.5
	Total derivatives designated as accounting hedges			5.4		0.5
Derivatives not designated as accounting hedges:
	FX forwards on certain assets and liabilities	Other current assets		0.4		12.5
Total assets			$	5.8	$	13.0
Liabilities:
Derivatives designated as accounting hedges:
	Interest rate swaps	Other non-current liabilities	$	14.5	$	3.5
	Total derivatives designated as accounting hedges			14.5		3.5
Non-derivative instrument designated as accounting hedge
	Long-term debt designated as net investment hedge	Long-term debt		583.8		600.4
Derivatives not designated as accounting hedges:
	FX forwards on certain assets and liabilities	Accounts payable and accrued liabilities		33.3		2.0
Total liabilities			$	631.6	$	605.9

XML

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Interest Rate Swap

Hedged Item	Nature of Swap	Notional Amount				Floating Interest Rate
			As of June 30, 2018		As of December 31, 2017
2010 Senior Notes due 2020	Pay Floating/Receive Fixed	$	500.0	$	500.0	3-month LIBOR
2017 Senior Notes due 2021	Pay Floating/Receive Fixed	$	500.0	$	-	3-month LIBOR
2014 Senior Notes due 2019	Pay Floating/Receive Fixed	$	450.0	$	450.0	3-month LIBOR
2012 Senior Notes due 2022	Pay Floating/Receive Fixed	$	80.0	$	80.0	3-month LIBOR

Gains and Losses on Derivatives Designated as Hedging Instruments

			Amount of income/(loss) recognized in the consolidated statements of operations
			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2018		2017		2018		2017
Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded
Interest expense, net		$	(53.4)	$	(49.7)	$	(104.1)	$	(97.1)
Descriptions	Location on Statement of Operations
Net interest settlements and accruals on interest rate swaps	Interest expense, net	$	(0.4)	$	1.8	$	(0.5)	$	4.2
Fair value changes on interest rate swaps	Interest expense, net	$	(2.3)	$	3.1	$	(11.5)	$	0.1
Fair value changes on hedged debt	Interest expense, net	$	2.3	$	(3.1)	$	11.5	$	(0.1)

Summary of Notional Amounts of Outstanding Foreign Exchange Forwards

	June 30,				December 31,
	2018				2017
Notional amount of currency pair:		Sell		Buy		Sell		Buy
Contracts sell USD for GBP	$	707.7	£	511.1	$	484.7	£	362.3
Contracts to sell USD for Japanese Yen	$	25.5	¥	2,700.0	$	24.3	¥	2,700.0
Contracts to sell USD for Canadian dollars	$	69.2	C$	89.0	$	51.7	C$	64.0
Contracts to sell USD for Singapore dollars	$	8.1	S$	11.0	$	39.2	S$	53.0
Contracts to sell USD for Euros	$	75.2	€	63.3	$	465.2	€	390.0
NOTE: € = Euro, £ = British pound, $ = U.S. dollar, ¥ = Japanese Yen, C$ = Canadian dollar, S$= Singapore dollars

Amount of Gain/(Loss) Recognized in AOCI on Derivative Net Investment Hedging Relationships (Effectiveness Portion)

		Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax				Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax					Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships		Three Months Ended				Three Months Ended					Three Months Ended
		June 30,				June 30,					June 30,
		2018		2017 (a)		2018		2017 (a)			2018 (c)		2017 (d)
	Cross currency swaps	$	4.0	$	-	$	-	$	-		$	2.1	$	-
	FX forwards		-		0.8		-		-			-		-
	Long-term debt		23.4		(17.5)		-		-			-		-
	Total net investment hedges	$	27.4	$	(16.7)	$	-	$	-		$	2.1	$	-
Derivatives in Cash Flow Hedging Relationships
	Cross currency swap	$	-	$	3.6	$	0.1	$	4.3	(b)	$	-	$	0.4
	Interest rate contracts		-		(0.4)		-		(1.0)			-		-
	Total cash flow hedges	$	-	$	3.2	$	0.1	$	3.3		$	-	$	0.4
Total		$	27.4	$	(13.5)	$	0.1	$	3.3		$	2.1	$	0.4
Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships		Six Months Ended				Six Months Ended					Six Months Ended
		June 30,				June 30,					June 30,
		2018		2017 (a)		2018		2017 (a)			2018 (c)		2017 (d)
	Cross currency swaps	$	4.0	$	-	$		$	-		$	2.1	$	-
	FX forwards		-		0.8		-		-			-		-
	Long-term debt		12.5		(21.1)		-		-			-		-
	Total net investment hedges	$	16.5	$	(20.3)	$	-	$	-		$	2.1	$	-
Derivatives in Cash Flow Hedging Relationships
	Cross currency swap	$	1.5	$	3.4	$	0.2	$	5.3	(b)	$	-	$	0.4
	Interest rate contracts		-		(0.4)		-		(1.1)			-		-
	Total cash flow hedges	$	1.5	$	3.0	$	0.2	$	4.2		$	-	$	0.4
Total		$	18.0	$	(17.3)	$	0.2	$	4.2		$	2.1	$	0.4
	(a) For the three and six months ended June 30, 2017, amount of gain or (loss) represents only the effective portion of the hedging relationship as this period was prior to the Company’s 2018 initial application of ASU 2017-12.
	(b) For the three and six months ended June 30, 2017, reflects $7.1 million and $8.6 million, respectively in gains recorded in other non-operating income (expense), net and $2.8 million and $3.3 million relating to the tax effect of the aforementioned item.
	(c) Effective with the adoption of ASU 2017-12, the Company has elected to assess the effectiveness of its net investment hedges based on changes in spot exchange rates. Accordingly, amounts recognized directly into Net Income during the three and six months ended June 30, 2018 related to its cross-currency swaps represent net periodic interest settlements and accruals which are recognized in interest expense, net.
	(d) For the three and six months ended June 30, 2017, amount of gain or (loss) recognized directly into income represents the ineffective portion of the hedging relationship. No hedging instruments for which ineffectiveness was recognized directly into Net Income in 2017 or in years prior were outstanding at the date of adoption of ASU 2017-12.

Cumulative Amount of Unrecognized Hedge Losses Recorded in Accumulated Other Comprehensive Income

		Cumulative Gains/(Losses), net of tax
		June 30,		December 31,
		2018		2017
Net investment hedges
Cross currency swaps		$	4.0	$	-
FX forwards			23.5		23.5
Long-term debt			(12.2)		(24.7)
	Total net investment hedges	$	15.3	$	(1.2)
Cash flow hedges
Interest rate contracts		$	(0.4)	$	(0.4)
Cross currency swap			2.6		1.3
	Total cash flow hedges		2.2		0.9
Total net gain (loss) in AOCI		$	17.5	$	(0.3)

Gains and Losses Recognized in Consolidated Statement of Operations on Derivatives Not Designated as Hedging instruments

		Three Months Ended				Six Months Ended
		June 30,				June 30,
Derivatives not designated as accounting hedges	Location on Statement of Operations	2018		2017		2018		2017
Foreign exchange forwards	Other non-operating income, net	$	(44.9)	$	7.1	$	(17.3)	$	4.8
FX collar relating to Bureau van Dijk acquisition	Purchase Price Hedge Gain		-		41.2		-		41.2
		$	(44.9)	$	48.3	$	(17.3)	$	46.0

Fair Value of Derivative Instruments

		Derivative and Non-Derivative Instruments
		Balance Sheet Location	June 30, 2018		December 31, 2017
Assets:
Derivatives designated as accounting hedges:
	Cross-currency swaps designated as net investment hedges	Other assets	$	5.4	$	-
	Interest rate swaps	Other assets		-		0.5
	Total derivatives designated as accounting hedges			5.4		0.5
Derivatives not designated as accounting hedges:
	FX forwards on certain assets and liabilities	Other current assets		0.4		12.5
Total assets			$	5.8	$	13.0
Liabilities:
Derivatives designated as accounting hedges:
	Interest rate swaps	Other non-current liabilities	$	14.5	$	3.5
	Total derivatives designated as accounting hedges			14.5		3.5
Non-derivative instrument designated as accounting hedge
	Long-term debt designated as net investment hedge	Long-term debt		583.8		600.4
Derivatives not designated as accounting hedges:
	FX forwards on certain assets and liabilities	Accounts payable and accrued liabilities		33.3		2.0
Total liabilities			$	631.6	$	605.9

XML

Schedule of Interest Rate Swap (Details) - Interest Rate Swap (3-month LIBOR) [Member] - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
2010 Senior Notes [Member]
Derivative [Line Items]
Hedged Item	2010 Senior Notes due 2020	2010 Senior Notes due 2020
Nature of Swap	Pay Floating/Receive Fixed	Pay Floating/Receive Fixed
Notional amount	$ 500.0	$ 500.0
Floating Interest Rate	3-month LIBOR	3-month LIBOR
2.75% 2017 Senior Notes, due 2021 [Member]
Derivative [Line Items]
Hedged Item	2017 Senior Notes due 2021
Nature of Swap	Pay Floating/Receive Fixed
Notional amount	$ 500.0
Floating Interest Rate	3-month LIBOR
2014 Senior Notes (5-Year) [Member]
Derivative [Line Items]
Hedged Item	2014 Senior Notes due 2019	2014 Senior Notes due 2019
Nature of Swap	Pay Floating/Receive Fixed	Pay Floating/Receive Fixed
Notional amount	$ 450.0	$ 450.0
Floating Interest Rate	3-month LIBOR	3-month LIBOR
2012 Senior Notes [Member]
Derivative [Line Items]
Hedged Item	2012 Senior Notes due 2022	2012 Senior Notes due 2022
Nature of Swap	Pay Floating/Receive Fixed	Pay Floating/Receive Fixed
Notional amount	$ 80.0	$ 80.0
Floating Interest Rate	3-month LIBOR	3-month LIBOR

XML

Summary of Net Gain (Loss) on Interest Rate Swaps Designated as Fair Value Hedges (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments Gain Loss [Line Items]
Interest expense, net	$ (53.4)	$ (49.7)	$ (104.1)	$ (97.1)
Designated As Hedging Instrument [Member] | Interest Rate Swap [Member] | Interest Expense [Member]
Derivative Instruments Gain Loss [Line Items]
Fair value changes on interest rate swaps	(2.3)	3.1	(11.5)	0.1
Fair value changes on hedged debt	2.3	(3.1)	11.5	(0.1)
Designated As Hedging Instrument [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | Fair Value hedge Net Interest Settlements and Accruals [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of gain (loss) recognized in income	$ (0.4)	$ 1.8	$ (0.5)	$ 4.2

XML

Gains (Losses) Recognized in AOCI and Reclassified from AOCI on Derivatives (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax	$ 27.4	$ (13.5)	$ 18.0	$ (17.3)
Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax	0.1	3.3	0.2	4.2
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)	2.1	0.4	2.1	0.4
Net Investment Hedging [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax	27.4	(16.7)	16.5	(20.3)
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)	2.1		2.1
Net Investment Hedging [Member] | Foreign Exchange Forward [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax		0.8		0.8
Net Investment Hedging [Member] | Long Term Debt [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax	23.4	(17.5)	12.5	(21.1)
Net Investment Hedging [Member] | Cross-Currency Swap [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax	4.0		4.0
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)	2.1		2.1
Cash Flow Hedging [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax		3.2	1.5	3.0
Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax	0.1	3.3	0.2	4.2
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)		0.4		0.4
Cash Flow Hedging [Member] | Cross-Currency Swap [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax		3.6	1.5	3.4
Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax	$ 0.1	4.3	$ 0.2	5.3
Gain/(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)		0.4		0.4
Cash Flow Hedging [Member] | Interest Rate Contract [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/(Loss) Recognized in AOCI on Derivative, net of Tax		(0.4)		(0.4)
Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax		$ (1.0)		$ (1.1)

XML

Gains (Losses) Recognized in AOCI and Reclassified from AOCI on Derivatives (Effective Portion) (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments Gain Loss [Line Items]
Gains on cash flow hedges - Pre Tax	$ 0.1	$ 6.1	$ 0.2	$ 7.5
Other Comprehensive Income Loss Reclassification Adjustment From AOCI On Derivatives Tax		(2.8)		(3.3)
Currency Swap [Member] | Other Nonoperating Income (Expense) [Member]
Derivative Instruments Gain Loss [Line Items]
Gains on cash flow hedges - Pre Tax		7.1		8.6
Cash Flow Hedging [Member] | Currency Swap [Member] | Other Nonoperating Income (Expense) [Member]
Derivative Instruments Gain Loss [Line Items]
Gains on cash flow hedges - Pre Tax		7.1		8.6
Other Comprehensive Income Loss Reclassification Adjustment From AOCI On Derivatives Tax		$ 2.8		$ 3.3

XML

Summary of Net Gain (Loss) on Foreign Exchange Forwards Not Designated as Hedging Instruments (Detail) - Not Designated as Accounting Hedges [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments Gain Loss [Line Items]
Amount of gain (loss) recognized in income	$ (44.9)	$ 48.3	$ (17.3)	$ 46.0
Foreign Exchange Forward [Member] | Other Nonoperating (Expense) Income [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of gain (loss) recognized in income	$ (44.9)	7.1	$ (17.3)	4.8
Foreign Exchange Collar [Member] | Bureau van Dijk (BvD) [Member] | Purchase Price Hedge [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of gain (loss) recognized in income		$ 41.2		$ 41.2

XML

Cumulative Amount of Unrecognized Hedge Losses Recorded in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Derivative [Line Items]
Cumulative amount of unrecognized hedge losses recorded in AOCI	$ 17.5	$ (0.3)
Net Investment Hedging [Member]
Derivative [Line Items]
Cumulative amount of unrecognized hedge losses recorded in AOCI	15.3	(1.2)
Net Investment Hedging [Member] | Foreign Exchange Forward [Member]
Derivative [Line Items]
Cumulative amount of unrecognized hedge losses recorded in AOCI	23.5	23.5
Net Investment Hedging [Member] | Long-Term Debt [Member]
Derivative [Line Items]
Cumulative amount of unrecognized hedge losses recorded in AOCI	(12.2)	(24.7)
Net Investment Hedging [Member] | Cross-Currency Swap [Member]
Derivative [Line Items]
Cumulative amount of unrecognized hedge losses recorded in AOCI	4.0
Cash Flow Hedging [Member]
Derivative [Line Items]
Cumulative amount of unrecognized hedge losses recorded in AOCI	2.2	0.9
Cash Flow Hedging [Member] | Interest Rate Contract [Member]
Derivative [Line Items]
Cumulative amount of unrecognized hedge losses recorded in AOCI	(0.4)	(0.4)
Cash Flow Hedging [Member] | Cross-Currency Swap [Member]
Derivative [Line Items]
Cumulative amount of unrecognized hedge losses recorded in AOCI	$ 2.6	$ 1.3

XML

Summary of Notional Amounts of Outstanding Foreign Exchange Forwards, Cash Flow Hedging (Detail) € in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions	Jun. 30, 2018 CAD ($)	Jun. 30, 2018 EUR (€)	Jun. 30, 2018 GBP (£)	Jun. 30, 2018 JPY (¥)	Jun. 30, 2018 SGD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2017 CAD ($)	Dec. 31, 2017 EUR (€)	Dec. 31, 2017 GBP (£)	Dec. 31, 2017 JPY (¥)	Dec. 31, 2017 SGD ($)	Dec. 31, 2017 USD ($)
Contracts to Sell US Dollars for GBP [Member] | Sell [Member]
Derivative [Line Items]
Derivative Notional Amount						$ 707.7						$ 484.7
Contracts to Sell US Dollars for GBP [Member] | Buy [Member]
Derivative [Line Items]
Derivative Notional Amount | £			£ 511.1						£ 362.3
Contracts to Sell USD for JPY [Member] | Sell [Member]
Derivative [Line Items]
Derivative Notional Amount						25.5						24.3
Contracts to Sell USD for JPY [Member] | Buy [Member]
Derivative [Line Items]
Derivative Notional Amount | ¥				¥ 2,700.0						¥ 2,700.0
Contracts to Sell USD for CAD [Member] | Sell [Member]
Derivative [Line Items]
Derivative Notional Amount						69.2						51.7
Contracts to Sell USD for CAD [Member] | Buy [Member]
Derivative [Line Items]
Derivative Notional Amount	$ 89.0						$ 64.0
Contracts to Sell US Dollars for Singapore dollars [Member] | Sell [Member]
Derivative [Line Items]
Derivative Notional Amount						8.1						39.2
Contracts to Sell US Dollars for Singapore dollars [Member] | Buy [Member]
Derivative [Line Items]
Derivative Notional Amount					$ 11.0						$ 53.0
Contracts to Sell USD for Euros [Member] | Sell [Member]
Derivative [Line Items]
Derivative Notional Amount						$ 75.2						$ 465.2
Contracts to Sell USD for Euros [Member] | Buy [Member]
Derivative [Line Items]
Derivative Notional Amount | €		€ 63.3						€ 390.0

XML

Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Derivatives Fair Value [Line Items]
Derivatives assets	$ 5.8	$ 13.0
Derivatives liabilities	631.6	605.9
Derivatives Designated as Accounting Hedges [Member]
Derivatives Fair Value [Line Items]
Derivatives assets	5.4	0.5
Derivatives Designated as Accounting Hedges [Member] | Interest Rate Swap [Member] | Other Assets [Member]
Derivatives Fair Value [Line Items]
Derivatives assets		0.5
Derivatives Designated as Accounting Hedges [Member] | Cross-Currency Swap [Member] | Other Assets [Member] | Net Investment Hedging [Member]
Derivatives Fair Value [Line Items]
Derivatives assets	5.4
Not Designated as Accounting Hedges [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member]
Derivatives Fair Value [Line Items]
Derivatives assets	0.4	12.5
Not Designated as Accounting Hedges [Member] | Foreign Exchange Forward [Member] | Accounts Payable And Accrued Liabilities [Member]
Derivatives Fair Value [Line Items]
Derivatives liabilities	$ 33.3	$ 2.0

XML

Derivative Instruments And Hedging Activities - Additional Information (Detail) € in Millions, $ in Millions	Jun. 30, 2018 EUR (€)	Jun. 30, 2018 USD ($)	Aug. 10, 2017 EUR (€)
Foreign Exchange Option [Member] | Cross-Currency Received [Member] | Bureau Van Dijk [Member] | Call Option [Member]
Derivative [Line Items]
Notional amount			€ 2,700.0
Foreign Exchange Option [Member] | Cross-Currency Received [Member] | Bureau Van Dijk [Member] | Put Option [Member]
Derivative [Line Items]
Notional amount			€ 2,700.0
Derivatives Designated as Accounting Hedges [Member] | Cross-Currency Swap [Member] | Cross-Currency Paid [Member] | 2015 Senior Notes [Member]
Derivative [Line Items]
Notional amount | $		$ 110.5
Derivative, swaption interest rate	3.945%	3.945%
Derivatives Designated as Accounting Hedges [Member] | Cross-Currency Swap [Member] | Cross-Currency Received [Member] | 2015 Senior Notes [Member]
Derivative [Line Items]
Notional amount	€ 100.0
Derivative, swaption interest rate	1.75%	1.75%
Net Investment Hedging [Member] | Derivatives Designated as Accounting Hedges [Member] | Cross-Currency Swap [Member] | Cross-Currency Paid [Member]
Derivative [Line Items]
Notional amount | $		$ 580.0
Net Investment Hedging [Member] | Derivatives Designated as Accounting Hedges [Member] | Cross-Currency Swap [Member] | Cross-Currency Paid [Member] | 2015 Senior Notes [Member]
Derivative [Line Items]
Notional amount	€ 500.0
Net Investment Hedging [Member] | Derivatives Designated as Accounting Hedges [Member] | Cross-Currency Swap [Member] | Cross-Currency Received [Member]
Derivative [Line Items]
Notional amount	490.1
Net Investment Hedging [Member] | Derivatives Designated as Accounting Hedges [Member] | Cross-Currency Swap [Member] | Cross-Currency Received [Member] | 2021 [Member]
Derivative [Line Items]
Notional amount	422.5
Net Investment Hedging [Member] | Derivatives Designated as Accounting Hedges [Member] | Cross-Currency Swap [Member] | Cross-Currency Received [Member] | 2022 [Member]
Derivative [Line Items]
Notional amount	€ 67.6

XML

GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

NOTE 10. GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

The following table summarizes the activity in goodwill for the periods indicated:

	Six Months Ended June 30, 2018
	MIS						MA						Consolidated
	Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill
Balance at beginning of year	$	285.2	$	-	$	285.2	$	3,480.2	$	(12.2)	$	3,468.0	$	3,765.4	$	(12.2)	$	3,753.2
Additions/adjustments		-		-		-		(4.3)		-		(4.3)		(4.3)		-		(4.3)
Foreign currency translation adjustments		-		-		-		(86.2)		-		(86.2)		(86.2)		-		(86.2)
Ending balance	$	285.2	$	-	$	285.2	$	3,389.7	$	(12.2)	$	3,377.5	$	3,674.9	$	(12.2)	$	3,662.7
	Year ended December 31, 2017
	MIS						MA						Consolidated
	Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill
Balance at beginning of year	$	277.0	$	-	$	277.0	$	758.8	$	(12.2)	$	746.6	$	1,035.8	$	(12.2)	$	1,023.6
Additions/adjustments		-		-		-		2,622.6		-		2,622.6		2,622.6		-		2,622.6
Foreign currency translation adjustments		8.2		-		8.2		98.8		-		98.8		107.0		-		107.0
Ending balance	$	285.2	$	-	$	285.2	$	3,480.2	$	(12.2)	$	3,468.0	$	3,765.4	$	(12.2)	$	3,753.2

The 2018 additions/adjustments for the MA segment in the table above relate to certain adjustments relating to Bureau van Dijk’s acquired accounts payable and accrued liabilities as of the acquisition date.

The 2017 additions/adjustments for the MA segment in the table above relate to the acquisition of Bureau van Dijk and structured finance data and analytics business of SCDM.

Acquired intangible assets and related amortization consisted of:

		June 30,		December 31,
		2018		2017
Customer relationships		$	1,312.7	$	1,345.1
Accumulated amortization			(186.9)		(159.9)
	Net customer relationships		1,125.8		1,185.2
Trade secrets			29.9		30.2
Accumulated amortization			(28.1)		(28.1)
	Net trade secrets		1.8		2.1
Software/product technology			349.0		358.6
Accumulated amortization			(89.8)		(78.0)
	Net software/product technology		259.2		280.6
Trade names			158.8		161.6
Accumulated amortization			(31.0)		(26.7)
	Net trade names		127.8		134.9
Other (1)			56.8		57.4
Accumulated amortization			(30.0)		(28.6)
	Net other		26.8		28.8
Total acquired intangible assets, net		$	1,541.4	$	1,631.6
(1) Other intangible assets primarily consist of databases, covenants not to compete, and acquired ratings methodologies and models.

Amortization expense relating to acquired intangible assets is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Amortization expense	$	25.1	$	8.6	$	50.8	$	17.1

Estimated future amortization expense for acquired intangible assets subject to amortization is as follows:

Year Ending December 31,
2018 (after June 30)	$	49.2
2019		94.8
2020		92.4
2021		92.2
2022		91.5
Thereafter		1,121.3
Total estimated future amortization	$	1,541.4

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the estimated undiscounted future cash flows are lower than the carrying amount of the related asset, a loss is recognized for the difference between the carrying amount and the estimated fair value of the asset. There were no impairments to intangible assets during the six months ended June 30, 2018 and 2017.

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GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2018

Activity in Goodwill

	Six Months Ended June 30, 2018
	MIS						MA						Consolidated
	Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill
Balance at beginning of year	$	285.2	$	-	$	285.2	$	3,480.2	$	(12.2)	$	3,468.0	$	3,765.4	$	(12.2)	$	3,753.2
Additions/adjustments		-		-		-		(4.3)		-		(4.3)		(4.3)		-		(4.3)
Foreign currency translation adjustments		-		-		-		(86.2)		-		(86.2)		(86.2)		-		(86.2)
Ending balance	$	285.2	$	-	$	285.2	$	3,389.7	$	(12.2)	$	3,377.5	$	3,674.9	$	(12.2)	$	3,662.7
	Year ended December 31, 2017
	MIS						MA						Consolidated
	Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill
Balance at beginning of year	$	277.0	$	-	$	277.0	$	758.8	$	(12.2)	$	746.6	$	1,035.8	$	(12.2)	$	1,023.6
Additions/adjustments		-		-		-		2,622.6		-		2,622.6		2,622.6		-		2,622.6
Foreign currency translation adjustments		8.2		-		8.2		98.8		-		98.8		107.0		-		107.0
Ending balance	$	285.2	$	-	$	285.2	$	3,480.2	$	(12.2)	$	3,468.0	$	3,765.4	$	(12.2)	$	3,753.2

Acquired Intangible Assets and Related Amortization

		June 30,		December 31,
		2018		2017
Customer relationships		$	1,312.7	$	1,345.1
Accumulated amortization			(186.9)		(159.9)
	Net customer relationships		1,125.8		1,185.2
Trade secrets			29.9		30.2
Accumulated amortization			(28.1)		(28.1)
	Net trade secrets		1.8		2.1
Software/product technology			349.0		358.6
Accumulated amortization			(89.8)		(78.0)
	Net software/product technology		259.2		280.6
Trade names			158.8		161.6
Accumulated amortization			(31.0)		(26.7)
	Net trade names		127.8		134.9
Other (1)			56.8		57.4
Accumulated amortization			(30.0)		(28.6)
	Net other		26.8		28.8
Total acquired intangible assets, net		$	1,541.4	$	1,631.6
(1) Other intangible assets primarily consist of databases, covenants not to compete, and acquired ratings methodologies and models.

Amortization Expense Relating to Acquired Intangible Assets

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Amortization expense	$	25.1	$	8.6	$	50.8	$	17.1

Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization

Year Ending December 31,
2018 (after June 30)	$	49.2
2019		94.8
2020		92.4
2021		92.2
2022		91.5
Thereafter		1,121.3
Total estimated future amortization	$	1,541.4

XML

Activity in Goodwill (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Goodwill [Line Items]
Beginning balance, Goodwill gross	$ 3,765.4	$ 1,035.8
Additions/adjustments, gross	(4.3)	2,622.6
Foreign currency translation adjustments, gross	(86.2)	107.0
Ending balance, Goodwill gross	3,674.9	3,765.4
Beginning balance, Accumulated impairment charge	(12.2)	(12.2)
Ending balance, Accumulated impairment charge	(12.2)	(12.2)
Beginning balance, goodwill net	3,753.2	1,023.6
Additions/adjustments	(4.3)	2,622.6
Foreign currency translation adjustments	(86.2)	107.0
Ending balance, goodwill net	3,662.7	3,753.2
MIS [Member]
Goodwill [Line Items]
Beginning balance, Goodwill gross	285.2	277.0
Foreign currency translation adjustments, gross		8.2
Ending balance, Goodwill gross	285.2	285.2
Beginning balance, goodwill net	285.2	277.0
Foreign currency translation adjustments		8.2
Ending balance, goodwill net	285.2	285.2
MA [Member]
Goodwill [Line Items]
Beginning balance, Goodwill gross	3,480.2	758.8
Additions/adjustments, gross	(4.3)	2,622.6
Foreign currency translation adjustments, gross	(86.2)	98.8
Ending balance, Goodwill gross	3,389.7	3,480.2
Beginning balance, Accumulated impairment charge	(12.2)	(12.2)
Ending balance, Accumulated impairment charge	(12.2)	(12.2)
Beginning balance, goodwill net	3,468.0	746.6
Additions/adjustments	(4.3)	2,622.6
Foreign currency translation adjustments	(86.2)	98.8
Ending balance, goodwill net	$ 3,377.5	$ 3,468.0

XML

Acquired Intangible Assets and Related Amortization (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, net	$ 1,541.4	$ 1,631.6
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	1,312.7	1,345.1
Accumulated amortization	(186.9)	(159.9)
Acquired intangible assets, net	1,125.8	1,185.2
Trade Secrets [Member]
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	29.9	30.2
Accumulated amortization	(28.1)	(28.1)
Acquired intangible assets, net	1.8	2.1
Computer Software Intangible Asset [Member]
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	349.0	358.6
Accumulated amortization	(89.8)	(78.0)
Acquired intangible assets, net	259.2	280.6
Trade Names [Member]
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	158.8	161.6
Accumulated amortization	(31.0)	(26.7)
Acquired intangible assets, net	127.8	134.9
Other Intangible Assets [Member]
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	56.8	57.4
Accumulated amortization	(30.0)	(28.6)
Acquired intangible assets, net	$ 26.8	$ 28.8

XML

Amortization Expense Relating to Acquired Intangible Assets (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Finite Lived Intangible Assets [Line Items]
Amortization expense	$ 25.1	$ 8.6	$ 50.8	$ 17.1

XML

Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization (Detail) $ in Millions	Jun. 30, 2018 USD ($)
Schedule Of Actual And Estimated Amortization Expense [Line Items]
2018 (after June 30)	$ 49.2
2019	94.8
2020	92.4
2021	92.2
2022	91.5
Thereafter	1,121.3
Total estimated future amortization	$ 1,541.4

XML

Goodwill And Other Acquired Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Goodwill [Line Items]
Impairments to intangible assets	$ 0.0	$ 0.0

XML

FAIR VALUE

6 Months Ended

Jun. 30, 2018

FAIR VALUE

NOTE 11. FAIR VALUE

The table below presents information about items that are carried at fair value at June 30,2018 and December 31, 2017:

		Fair Value Measurement as of June 30, 2018
Description		Balance		Level 1		Level 2
Assets:
	Derivatives (a)	$	5.8	$	-	$	5.8
	Money market mutual funds		35.6		35.6		-
	Fixed maturity and open ended mutual funds		42.4		42.4		-
	Total	$	83.8	$	78.0	$	5.8
Liabilities:
	Derivatives (a)	$	47.8	$	-	$	47.8
	Total	$	47.8	$	-	$	47.8
		Fair Value Measurement as of December 31, 2017
Description		Balance		Level 1		Level 2
Assets:
	Derivatives (a)	$	13.0	$	-	$	13.0
	Money market mutual funds		42.2		42.2		-
	Fixed maturity and open ended mutual funds		21.1		21.1		-
	Total	$	76.3	$	63.3	$	13.0
Liabilities:
	Derivatives (a)	$	5.5	$	-	$	5.5
	Total	$	5.5	$	-	$	5.5
(a) Represents FX forwards on certain assets and liabilities as well as interest rate swaps and cross-currency swaps as more fully described in Note 9 to the condensed consolidated financial statements.

The following are descriptions of the methodologies utilized by the Company to estimate the fair value of its derivative contracts, fixed maturity plans, and money market mutual funds:

Derivatives:

In determining the fair value of the derivative contracts in the table above, the Company utilizes industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using spot rates, forward points, currency volatilities, interest rates as well as the risk of non-performance of the Company and the counterparties with whom it has derivative contracts. The Company established strict counterparty credit guidelines and only enters into transactions with financial institutions that adhere to these guidelines. Accordingly, the risk of counterparty default is deemed to be minimal.

Fixed maturity and open-ended mutual funds:

As a result of the adoption of ASU 2016-01, as further discussed in Note 1 and Note 2, the fixed maturity and open-ended mutual funds in the table above are deemed to be equity securities with readily determinable fair values with changes in the fair value recognized through net income under ASC Topic 321. Prior to the Company’s adoption of ASU No. 2016-01, any unrealized gains and losses were recognized through OCI until the instruments matured or were sold.The fair value of these instruments is determined using Level 1 inputs as defined in the ASC.

Money market mutual funds:

Similar to fixed maturity and open-ended mutual funds, the money market mutual funds in the table above are deemed to be equity securities with readily determinable fair values with changes in the fair value recognized through net income under ASC Topic 321 as required by ASU 2016-01. The money market mutual funds represent publicly traded funds with a stable $1 net asset value.

XML

FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Financial Instruments Carried at Fair Value on Recurring Basis

		Fair Value Measurement as of June 30, 2018
Description		Balance		Level 1		Level 2
Assets:
	Derivatives (a)	$	5.8	$	-	$	5.8
	Money market mutual funds		35.6		35.6		-
	Fixed maturity and open ended mutual funds		42.4		42.4		-
	Total	$	83.8	$	78.0	$	5.8
Liabilities:
	Derivatives (a)	$	47.8	$	-	$	47.8
	Total	$	47.8	$	-	$	47.8
		Fair Value Measurement as of December 31, 2017
Description		Balance		Level 1		Level 2
Assets:
	Derivatives (a)	$	13.0	$	-	$	13.0
	Money market mutual funds		42.2		42.2		-
	Fixed maturity and open ended mutual funds		21.1		21.1		-
	Total	$	76.3	$	63.3	$	13.0
Liabilities:
	Derivatives (a)	$	5.5	$	-	$	5.5
	Total	$	5.5	$	-	$	5.5
(a) Represents FX forwards on certain assets and liabilities as well as interest rate swaps and cross-currency swaps as more fully described in Note 9 to the condensed consolidated financial statements.

XML

Financial Instruments Carried at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative Contracts	$ 5.8	$ 13.0
Money market funds	35.6	42.2
Fixed maturity and open ended mutual funds	42.4	21.1
Total, Assets	83.8	76.3
Derivatives, Liabilities	47.8	5.5
Total, Liabilities	47.8	5.5
Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	35.6	42.2
Fixed maturity and open ended mutual funds	42.4	21.1
Total, Assets	78.0	63.3
Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative Contracts	5.8	13.0
Total, Assets	5.8	13.0
Derivatives, Liabilities	47.8	5.5
Total, Liabilities	$ 47.8	$ 5.5

XML

Fair Value - Additional Information (Detail)	Jun. 30, 2018 USD ($)
Fair Value Inputs [Abstract]
Net asset stable value for public traded funds	$ 1

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OTHER BALANCE SHEET INFORMATION

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

NOTE 12. OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

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

		June 30,		December 31,
		2018		2017
Other current assets:
	Prepaid taxes	$	114.7	$	94.9
	Prepaid expenses		83.5		91.7
	Capitalized costs to obtain and fulfill sales contracts (1)		38.0		15.9
	Other		50.7		47.6
Total other current assets		$	286.9	$	250.1
		June 30,		December 31,
		2018		2017
Other assets:
	Investments in joint ventures	$	107.2	$	99.1
	Deposits for real-estate leases		11.9		12.3
	Indemnification assets related to acquisitions		16.3		17.0
	Mutual funds and fixed deposits		48.0		22.1
	Costs to obtain sales contracts (1)		67.1		-
	Other		8.5		9.4
Total other assets		$	259.0	$	159.9
(1) The 2018 amount reflects capitalized costs to obtain sales contracts (sales commissions) pursuant to the adoption of the New Revenue Accounting Standard, which are amortized over an average 7 year period as well as costs incurred and capitalized for in process ratings (current assets only).
		June 30,		December 31,
		2018		2017
Accounts payable and accrued liabilities:
	Salaries and benefits	$	93.3	$	129.6
	Incentive compensation		95.2		246.7
	Customer credits, advanced payments and advanced billings		23.2		22.2
	Self-insurance reserves		11.7		8.1
	Dividends		4.4		6.2
	Professional service fees		62.8		47.1
	Interest accrued on debt		66.0		73.9
	Accounts payable		22.5		21.8
	Income taxes		85.1		79.2
	Pension and other retirement employee benefits (see Note 14)		5.9		5.9
	Accrued royalties		13.8		26.4
	Foreign exchange forwards on certain assets and liabilities		33.3		2.0
	Other		76.4		81.2
Total accounts payable and accrued liabilities		$	593.6	$	750.3
		June 30,		December 31,
		2018		2017
Other liabilities:
	Pension and other retirement employee benefits (see Note 14)	$	260.4	$	244.5
	Deferred rent - non-current portion		98.6		103.1
	Interest accrued on UTPs		55.4		54.7
	Other tax matters		1.3		1.3
	Income tax liability - non-current (2)		173.2		232.2
	Interest rate swaps		14.5		3.5
	Other		22.5		24.7
Total other liabilities		$	625.9	$	664.0
(2) Primarily reflects the transition tax pursuant to the Tax Act, which was enacted into law in December 2017.

Changes in the Company’s self-insurance reserves for claims insured by the Company’s wholly-owned insurance subsidiary, which primarily relate to legal defense costs for claims from prior years, are as follows:

		Six Months Ended		Year Ended
		June 30,		December 31,
		2018		2017
Balance January 1,		$	8.1	$	11.1
	Accruals (reversals), net		4.2		9.6
	Payments		(0.6)		(12.6)
Balance		$	11.7	$	8.1

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
FX gain/(loss)	$	6.2	$	3.8	$	0.3	$	(5.8)
Net periodic pension costs - other components (1)		2.9		2.1		5.2		3.8
Joint venture income		4.6		4.0		5.9		5.0
Other		1.2		0.5		4.5		(0.3)
Total	$	14.9	$	10.4		15.9	$	2.7
(1) The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in other non-operating income. The service cost component continues to be reported as an operating expense.

Noncontrolling Interests:

The following table summarizes the changesin the Company’snoncontrolling interests:

		Non-Controlling Interests
Balance at December 31, 2016		$	197.7
	Net income		7.1
	Dividends		(3.3)
	Purchase of noncontrolling interest		(1.0)
	Non-controlling interests portion of foreign currency translation adjustments		13.0
	Net realized and unrealized gain on available for sale securities		(0.7)
Balance at December 31, 2017		$	212.8
	Net income		5.6
	Dividends		(1.3)
	Non-controlling interests portion of foreign currency translation adjustments		0.1
Balance at June 30, 2018		$	217.2

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OTHER BALANCE SHEET INFORMATION (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Additional Details Related to Certain Balance Sheet Captions

		June 30,		December 31,
		2018		2017
Other current assets:
	Prepaid taxes	$	114.7	$	94.9
	Prepaid expenses		83.5		91.7
	Capitalized costs to obtain and fulfill sales contracts (1)		38.0		15.9
	Other		50.7		47.6
Total other current assets		$	286.9	$	250.1
		June 30,		December 31,
		2018		2017
Other assets:
	Investments in joint ventures	$	107.2	$	99.1
	Deposits for real-estate leases		11.9		12.3
	Indemnification assets related to acquisitions		16.3		17.0
	Mutual funds and fixed deposits		48.0		22.1
	Costs to obtain sales contracts (1)		67.1		-
	Other		8.5		9.4
Total other assets		$	259.0	$	159.9
(1) The 2018 amount reflects capitalized costs to obtain sales contracts (sales commissions) pursuant to the adoption of the New Revenue Accounting Standard, which are amortized over an average 7 year period as well as costs incurred and capitalized for in process ratings (current assets only).
		June 30,		December 31,
		2018		2017
Accounts payable and accrued liabilities:
	Salaries and benefits	$	93.3	$	129.6
	Incentive compensation		95.2		246.7
	Customer credits, advanced payments and advanced billings		23.2		22.2
	Self-insurance reserves		11.7		8.1
	Dividends		4.4		6.2
	Professional service fees		62.8		47.1
	Interest accrued on debt		66.0		73.9
	Accounts payable		22.5		21.8
	Income taxes		85.1		79.2
	Pension and other retirement employee benefits (see Note 14)		5.9		5.9
	Accrued royalties		13.8		26.4
	Foreign exchange forwards on certain assets and liabilities		33.3		2.0
	Other		76.4		81.2
Total accounts payable and accrued liabilities		$	593.6	$	750.3
		June 30,		December 31,
		2018		2017
Other liabilities:
	Pension and other retirement employee benefits (see Note 14)	$	260.4	$	244.5
	Deferred rent - non-current portion		98.6		103.1
	Interest accrued on UTPs		55.4		54.7
	Other tax matters		1.3		1.3
	Income tax liability - non-current (2)		173.2		232.2
	Interest rate swaps		14.5		3.5
	Other		22.5		24.7
Total other liabilities		$	625.9	$	664.0
(2) Primarily reflects the transition tax pursuant to the Tax Act, which was enacted into law in December 2017.

Self Insurance Reserves

		Six Months Ended		Year Ended
		June 30,		December 31,
		2018		2017
Balance January 1,		$	8.1	$	11.1
	Accruals (reversals), net		4.2		9.6
	Payments		(0.6)		(12.6)
Balance		$	11.7	$	8.1

Other Non-Operating

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
FX gain/(loss)	$	6.2	$	3.8	$	0.3	$	(5.8)
Net periodic pension costs - other components (1)		2.9		2.1		5.2		3.8
Joint venture income		4.6		4.0		5.9		5.0
Other		1.2		0.5		4.5		(0.3)
Total	$	14.9	$	10.4		15.9	$	2.7
(1) The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in other non-operating income. The service cost component continues to be reported as an operating expense.

Schedule of Minority Interest

		Non-Controlling Interests
Balance at December 31, 2016		$	197.7
	Net income		7.1
	Dividends		(3.3)
	Purchase of noncontrolling interest		(1.0)
	Non-controlling interests portion of foreign currency translation adjustments		13.0
	Net realized and unrealized gain on available for sale securities		(0.7)
Balance at December 31, 2017		$	212.8
	Net income		5.6
	Dividends		(1.3)
	Non-controlling interests portion of foreign currency translation adjustments		0.1
Balance at June 30, 2018		$	217.2

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Additional Details Related to Certain Balance Sheet Captions (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Other current assets:
Prepaid taxes	$ 114.7	$ 94.9
Prepaid expenses	83.5	91.7
Other	50.7	47.6
Total other current assets	286.9	250.1
Other assets
Investments in joint ventures	107.2	99.1
Deposits for real-estate leases	11.9	12.3
Indemnification assets related to acquisitions	16.3	17.0
Mutual funds and fixed deposits	48.0	22.1
Other	8.5	9.4
Total other assets	259.0	159.9
Accounts payable and accrued liabilities
Salaries and benefits	93.3	129.6
Incentive compensation	95.2	246.7
Customer credits, advanced payments and advanced billings	23.2	22.2
Self-insurance reserves	11.7	8.1
Dividends	4.4	6.2
Professional service fees	62.8	47.1
Interest accrued on debt	66.0	73.9
Accounts payable	22.5	21.8
Income taxes	85.1	79.2
Pension and other post retirement employee benefits	5.9	5.9
Accrued royalties	13.8	26.4
Derivatives liabilities	631.6	605.9
Other	76.4	81.2
Total accounts payable and accrued liabilities	593.6	750.3
Other liabilities
Pension and other post retirement employee benefits	260.4	244.5
Deferred rent-non-current portion	98.6	103.1
Interest accrued on UTPs	55.4	54.7
Other tax matters	1.3	1.3
Income tax liability - non-current	173.2	232.2
Interest rate swaps	14.5	3.5
Other	22.5	24.7
Total other liabilities	625.9	664.0
Other Current Assets [Member]
Other current assets:
Capitalized costs to obtain and fulfill sales contracts	38.0	15.9
Other Assets [Member]
Other current assets:
Capitalized costs to obtain and fulfill sales contracts	67.1
Accounts Payable And Accrued Liabilities [Member] | Foreign Exchange Forward [Member] | Not Designated as Accounting Hedges [Member]
Accounts payable and accrued liabilities
Derivatives liabilities	$ 33.3	$ 2.0

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Additional Details Related to Certain Balance Sheet Captions (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2018
Disclosure Additional Details Related To Certain Balance Sheet Captions [Abstract]
Capitalized Contract Cost Amortization Period	7 years

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Changes in Self Insurance Reserves (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Disclosure Changes in Self Insurance Reserves [Abstract]
Self-insurance reserves, beginning balance	$ 8.1	$ 11.1
Accruals (reversals), net	4.2	9.6
Payments	(0.6)	(12.6)
Self-insurance reserves, ending balance	$ 11.7	$ 8.1

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Other Non-Operating Interest (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Nonoperating Income (Expense) [Abstract]
FX gain/(loss)	$ 6.2	$ 3.8	$ 0.3	$ (5.8)
Pension Expense	2.9	2.1	5.2	3.8
Joint venture income	4.6	4.0	5.9	5.0
Other	1.2	0.5	4.5	(0.3)
Total	$ 14.9	$ 10.4	$ 15.9	$ 2.7

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Schedule of Minority Interest (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Non-Controlling Interest [Abstract]
Beginning Balance	$ 212.8	$ 197.7
Net income	5.6	7.1
Dividends	(1.3)	(3.3)
Purchase of noncontrolling interest		(1.0)
Non-controlling interests portion of foreign currency translation adjustments	0.1	13.0
Net realized and unrealized gain on available for sale securities		(0.7)
Ending Balance	$ 217.2	$ 212.8

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COMPREHENSIVE INCOME RECLASSIFICATION

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

NOTE 13. COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table provides details about the reclassifications out of AOCI:

		Three Months Ended June 30, 2018		Six Months Ended June 30, 2018		Affected line in the consolidated statement of operations
Gains on cash flow hedges
	Cross-currency swap	$	0.1	$	0.2	Interest expense, net
	Income tax effect of items above		-		-	Provision for income taxes
Total net gains on cash flow hedges			0.1		0.2
Pension and other retirement benefits
	Amortization of actuarial losses and prior service costs included in net income		(0.7)		(1.6)	Operating expense
	Amortization of actuarial losses and prior service costs included in net income		(0.3)		(0.8)	SG&A expense
	Total before income taxes		(1.0)		(2.4)
	Income tax effect of item above		0.3		0.7	Provision for income taxes
Total pension and other retirement benefits			(0.7)		(1.7)
Total losses included in Net Income attributable to reclassifications out of AOCI		$	(0.6)	$	(1.5)
		Three Months Ended June 30, 2017		Six Months Ended June 30, 2017		Affected line in the consolidated statement of operations
Gains on cash flow hedges
	Cross-currency swap	$	7.1	$	8.6	Other non-operating expense, net
	Treasury rate lock		(1.0)		(1.1)	Interest expense, netnet
	Total before income taxes		6.1		7.5
	Income tax effect of item above		(2.8)		(3.3)	Provision for income taxes
Total net gains on cash flow hedges			3.3		4.2
Pension and other retirement benefits
	Amortization of actuarial losses and prior service costs included in net income		(1.2)		(2.7)	Operating expense
	Amortization of actuarial losses and prior service costs included in net income		(0.7)		(1.6)	SG&A expense
Total before income taxes			(1.9)		(4.3)
	Income tax effect of item above		0.8		1.7	Provision for income taxes
Total pension and other retirement benefits			(1.1)		(2.6)
Total net gains included in Net Income attributable to reclassifications out of AOCI		$	2.2	$	1.6

The following table shows changes in AOCI by component (net of tax):

		Three Months Ended
		June 30, 2018												June 30, 2017
Gains/(Losses)		Pension and Other Retirement Benefits		Gains/ (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total		Pension and Other Retirement Benefits		Gains/ (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total
Balance March 31,		$	(60.5)	$	2.3	$	6.3	$	-	$	(51.9)	$	(78.0)	$	0.6	$	(283.3)	$	3.4	$	(357.3)
	Other comprehensive income/(loss) before reclassifications		1.2		-		(254.7)		-		(253.5)		4.9		3.2		41.5		0.2		49.8
	Amounts reclassified from AOCI		0.7		(0.1)		-		-		0.6		1.1		(3.3)		-		-		(2.2)
Other comprehensive income/(loss)			1.9		(0.1)		(254.7)		-		(252.9)		6.0		(0.1)		41.5		0.2		47.6
Balance June 30,		$	(58.6)	$	2.2	$	(248.4)	$	-	$	(304.8)	$	(72.0)	$	0.5	$	(241.8)	$	3.6	$	(309.7)
		Six Months Ended
		June 30, 2018												June 30, 2017
Gains/(Losses)		Pension and Other Retirement Benefits		Gains/ (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total		Pension and Other Retirement Benefits		Gains/ (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total
Balance December 31,		$	(61.5)	$	0.9	$	(113.9)	$	2.3	$	(172.2)	$	(79.5)	$	1.7	$	(290.2)	$	3.1	$	(364.9)
	Adoption of ASU 2016-01 (Refer to Note 1 and Note 2)		-		-		-		(2.3)		(2.3)
	Other comprehensive income/(loss) before reclassifications		1.2		1.5		(134.5)		-		(131.8)		4.9		3.0		48.4		0.5		56.8
	Amounts reclassified from AOCI		1.7		(0.2)		-		-		1.5		2.6		(4.2)		-		-		(1.6)
Other comprehensive income/(loss)			2.9		1.3		(134.5)		(2.3)		(132.6)		7.5		(1.2)		48.4		0.5		55.2
Balance June 30,		$	(58.6)	$	2.2	$	(248.4)	$	-	$	(304.8)	$	(72.0)	$	0.5	$	(241.8)	$	3.6	$	(309.7)

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COMPREHENSIVE INCOME RECLASSIFICATIONS (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Reclassifications out of AOCI

		Three Months Ended June 30, 2018		Six Months Ended June 30, 2018		Affected line in the consolidated statement of operations
Gains on cash flow hedges
	Cross-currency swap	$	0.1	$	0.2	Interest expense, net
	Income tax effect of items above		-		-	Provision for income taxes
Total net gains on cash flow hedges			0.1		0.2
Pension and other retirement benefits
	Amortization of actuarial losses and prior service costs included in net income		(0.7)		(1.6)	Operating expense
	Amortization of actuarial losses and prior service costs included in net income		(0.3)		(0.8)	SG&A expense
	Total before income taxes		(1.0)		(2.4)
	Income tax effect of item above		0.3		0.7	Provision for income taxes
Total pension and other retirement benefits			(0.7)		(1.7)
Total losses included in Net Income attributable to reclassifications out of AOCI		$	(0.6)	$	(1.5)
		Three Months Ended June 30, 2017		Six Months Ended June 30, 2017		Affected line in the consolidated statement of operations
Gains on cash flow hedges
	Cross-currency swap	$	7.1	$	8.6	Other non-operating expense, net
	Treasury rate lock		(1.0)		(1.1)	Interest expense, netnet
	Total before income taxes		6.1		7.5
	Income tax effect of item above		(2.8)		(3.3)	Provision for income taxes
Total net gains on cash flow hedges			3.3		4.2
Pension and other retirement benefits
	Amortization of actuarial losses and prior service costs included in net income		(1.2)		(2.7)	Operating expense
	Amortization of actuarial losses and prior service costs included in net income		(0.7)		(1.6)	SG&A expense
Total before income taxes			(1.9)		(4.3)
	Income tax effect of item above		0.8		1.7	Provision for income taxes
Total pension and other retirement benefits			(1.1)		(2.6)
Total net gains included in Net Income attributable to reclassifications out of AOCI		$	2.2	$	1.6

Components of Accumulated Other Comprehensive Income

		Three Months Ended
		June 30, 2018												June 30, 2017
Gains/(Losses)		Pension and Other Retirement Benefits		Gains/ (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total		Pension and Other Retirement Benefits		Gains/ (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total
Balance March 31,		$	(60.5)	$	2.3	$	6.3	$	-	$	(51.9)	$	(78.0)	$	0.6	$	(283.3)	$	3.4	$	(357.3)
	Other comprehensive income/(loss) before reclassifications		1.2		-		(254.7)		-		(253.5)		4.9		3.2		41.5		0.2		49.8
	Amounts reclassified from AOCI		0.7		(0.1)		-		-		0.6		1.1		(3.3)		-		-		(2.2)
Other comprehensive income/(loss)			1.9		(0.1)		(254.7)		-		(252.9)		6.0		(0.1)		41.5		0.2		47.6
Balance June 30,		$	(58.6)	$	2.2	$	(248.4)	$	-	$	(304.8)	$	(72.0)	$	0.5	$	(241.8)	$	3.6	$	(309.7)
		Six Months Ended
		June 30, 2018												June 30, 2017
Gains/(Losses)		Pension and Other Retirement Benefits		Gains/ (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total		Pension and Other Retirement Benefits		Gains/ (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Gains on Available for Sale Securities		Total
Balance December 31,		$	(61.5)	$	0.9	$	(113.9)	$	2.3	$	(172.2)	$	(79.5)	$	1.7	$	(290.2)	$	3.1	$	(364.9)
	Adoption of ASU 2016-01 (Refer to Note 1 and Note 2)		-		-		-		(2.3)		(2.3)
	Other comprehensive income/(loss) before reclassifications		1.2		1.5		(134.5)		-		(131.8)		4.9		3.0		48.4		0.5		56.8
	Amounts reclassified from AOCI		1.7		(0.2)		-		-		1.5		2.6		(4.2)		-		-		(1.6)
Other comprehensive income/(loss)			2.9		1.3		(134.5)		(2.3)		(132.6)		7.5		(1.2)		48.4		0.5		55.2
Balance June 30,		$	(58.6)	$	2.2	$	(248.4)	$	-	$	(304.8)	$	(72.0)	$	0.5	$	(241.8)	$	3.6	$	(309.7)

XML

Reclassification out of AOCI (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cash Flow Hedges, net of tax:
Gains on cash flow hedges - Pre Tax	$ 0.1	$ 6.1	$ 0.2	$ 7.5
Gains on cash flow hedges - Tax		(2.8)		(3.3)
Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax	0.1	3.3	0.2	4.2
Pension and Other Post-Retirement Benefits, net of tax:
Amortization of actuarial losses and prior service costs included in net income - Pre Tax	(1.0)	(1.9)	(2.4)	(4.3)
Amortization of actuarial losses and prior service costs included in net income - Tax	0.3	0.8	0.7	1.7
Amortization of actuarial losses and prior service costs included in net income - Net of Tax	(0.7)	(1.1)	(1.7)	(2.6)
(Losses) Income Attributable to Reclassification Out Of AOCI Net Of Tax	(0.6)	2.2	(1.5)	1.6
Operating Expense [Member]
Pension and Other Post-Retirement Benefits, net of tax:
Amortization of actuarial losses and prior service costs included in net income - Pre Tax	(0.7)	(1.2)	(1.6)	(2.7)
SG&A Expense [Member]
Pension and Other Post-Retirement Benefits, net of tax:
Amortization of actuarial losses and prior service costs included in net income - Pre Tax	(0.3)	(0.7)	(0.8)	(1.6)
Currency Swap [Member] | Interest Expense [Member]
Cash Flow Hedges, net of tax:
Gains on cash flow hedges - Pre Tax	$ 0.1		$ 0.2
Currency Swap [Member] | Other Nonoperating Income (Expense) [Member]
Cash Flow Hedges, net of tax:
Gains on cash flow hedges - Pre Tax		7.1		8.6
Treasury Rate Lock [Member] | Interest Expense [Member]
Cash Flow Hedges, net of tax:
Gains on cash flow hedges - Pre Tax		$ (1.0)		$ (1.1)

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Changes in Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Beginning Balance	$ (51.9)	$ (357.3)	$ (172.2)	$ (364.9)
Pension and other retirement benefit plans before reclassification - Net of Tax	1.2	4.9	1.2	4.9
Reclassification adjustment from AOCI, Pension and Other Postretirement Benefit Plans - Net of Tax	0.7	1.1	1.7	2.6
Pension and other retirement benefit - Net of Tax	1.9	6.0	2.9	7.5
Net unrealized gain (losses) on cash flow - Net of Tax	27.4	(13.5)	18.0	(17.3)
Amount of Gain/(Loss) Reclassified from AOCI into Income, net of Tax	(0.1)	(3.3)	(0.2)	(4.2)
Gains/(Losses) on cash flow hedges - Net of Tax	(0.1)	(0.1)	1.3	(1.2)
Foreign currency translation adjustments before reclassification - Net of Tax	(259.5)	50.5	(134.3)	62.6
Available for sale securities before reclassification - Net of Tax		0.6		1.1
Gains on Available for sale securities - Net of Tax			(2.3)
Amounts reclassified from AOCI	0.6	(2.2)	1.5	(1.6)
Total other comprehensive (loss) income - Net of Tax	(257.7)	57.0	(130.1)	70.0
Ending Balance	(304.8)	(309.7)	(304.8)	(309.7)
Parent [Member]
Foreign currency translation adjustments before reclassification - Net of Tax	(254.7)	41.5	(134.5)	48.4
Foreign currency translation adjustments - Net of Tax	(254.7)	41.5	(134.5)	48.4
Available for sale securities before reclassification - Net of Tax		0.2		0.5
Gains on Available for sale securities - Net of Tax		0.2		0.5
Other comprehensive income/(loss) before reclassifications	(253.5)	49.8	(131.8)	56.8
Total other comprehensive (loss) income - Net of Tax	(252.9)	47.6	(132.6)	55.2
Financial Instruments - Overall (ASU 2016-01) [Member]
Available for sale securities before reclassification - Net of Tax			(2.3)
Amount reclassified from AOCI, Available fo Sale Securities - Net of Tax			(2.3)
Other comprehensive income/(loss) before reclassifications			(2.3)
Gains (Losses) on Cash Flow Hedges [Member]
Beginning Balance	2.3	0.6	0.9	1.7
Net unrealized gain (losses) on cash flow - Net of Tax		3.2	1.5	3.0
Ending Balance	2.2	0.5	2.2	0.5
Pension and Other Retirement Benefits [Member]
Beginning Balance	(60.5)	(78.0)	(61.5)	(79.5)
Ending Balance	(58.6)	(72.0)	(58.6)	(72.0)
Foreign Currency Translation Adjustments [Member]
Beginning Balance	6.3	(283.3)	(113.9)	(290.2)
Ending Balance	$ (248.4)	(241.8)	(248.4)	(241.8)
Gains on Available for Sale Securities [Member]
Beginning Balance		3.4	$ 2.3	3.1
Ending Balance		$ 3.6		$ 3.6

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PENSION AND OTHER POST-RETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

PENSION AND OTHER RETIREMENT BENEFITS

NOTE 14. PENSION AND OTHER RETIREMENT BENEFITS

Moody’s maintains funded and unfunded noncontributory Defined Benefit Pension Plans. The U.S. plans provide defined benefits using a cash balance formula based on years of service and career average salary for its employees or final average pay for selected executives. The Company also provides certain healthcare and life insurance benefits for retired U.S. employees. The retirement healthcare plans are contributory; the life insurance plans are noncontributory. Moody’s funded and unfunded U.S. pension plans, the U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Retirement Plans”. The U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Other Retirement Plans”. The non-U.S. defined benefit pension plan are immaterial.

Effective January 1, 2008, the Company no longer offers DBPPs to U.S. employees hired or rehired on or after January 1, 2008. New U.S. employees will instead receive a retirement contribution of similar benefit value under the Company’s Profit Participation Plan. Current participants of the Company’s DBPPs continue to accrue benefits based on existing plan formulas.

The components of net periodic benefit expense related to the Retirement Plans are as follows:

			Three Months Ended June 30,
		Pension Plans				Other Retirement Plans
		2018		2017		2018		2017
Components of net periodic expense
	Service cost	$	4.6	$	4.3	$	0.8	$	0.6
	Interest cost		4.4		4.5		0.2		0.3
	Expected return on plan assets		(3.8)		(4.2)		-		-
	Amortization of net actuarial loss from earlier periods		1.5		2.1		-		-
	Amortization of net prior service costs from earlier periods		(0.1)		-		-		-
Net periodic expense		$	6.6	$	6.7	$	1.0	$	0.9
			Six Months Ended June 30,
		Pension Plans				Other Retirement Plans
		2018		2017		2018		2017
Components of net periodic expense
	Service cost	$	9.4	$	9.2	$	1.5	$	1.2
	Interest cost		8.8		9.2		0.5		0.6
	Expected return on plan assets		(7.6)		(8.3)		-		-
	Amortization of net actuarial loss from earlier periods		3.1		4.5		-		-
	Amortization of net prior service costs from earlier periods		(0.2)		-		(0.1)		(0.1)
Net periodic expense		$	13.5	$	14.6	$	1.9	$	1.7

The Company made payments of $2.2 million related to its unfunded U.S. DBPPs and $0.2 million to its U.S. other retirement plans during the six months ended June 30, 2018. The Company anticipates making a contribution of approximately $16 million to its funded pension plan in the second half of 2018. Additionally, the Company anticipates makingpayments of $3.1 million and $0.7 million to its unfunded U.S. DBPPs and U.S. other retirement plans, respectively, during the remainder of 2018.

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PENSION AND OTHER POST-RETIREMENT BENEFITS (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Components of Net Periodic Benefit Expense Related to Post-Retirement Plans

			Three Months Ended June 30,
		Pension Plans				Other Retirement Plans
		2018		2017		2018		2017
Components of net periodic expense
	Service cost	$	4.6	$	4.3	$	0.8	$	0.6
	Interest cost		4.4		4.5		0.2		0.3
	Expected return on plan assets		(3.8)		(4.2)		-		-
	Amortization of net actuarial loss from earlier periods		1.5		2.1		-		-
	Amortization of net prior service costs from earlier periods		(0.1)		-		-		-
Net periodic expense		$	6.6	$	6.7	$	1.0	$	0.9
			Six Months Ended June 30,
		Pension Plans				Other Retirement Plans
		2018		2017		2018		2017
Components of net periodic expense
	Service cost	$	9.4	$	9.2	$	1.5	$	1.2
	Interest cost		8.8		9.2		0.5		0.6
	Expected return on plan assets		(7.6)		(8.3)		-		-
	Amortization of net actuarial loss from earlier periods		3.1		4.5		-		-
	Amortization of net prior service costs from earlier periods		(0.2)		-		(0.1)		(0.1)
Net periodic expense		$	13.5	$	14.6	$	1.9	$	1.7

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Components of Net Periodic Benefit Expense Related to Post-Retirement Plans (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 4.9	$ 4.7	$ 9.6	$ 9.7
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	4.6	4.3	9.4	9.2
Interest cost	4.4	4.5	8.8	9.2
Expected return on plan assets	(3.8)	(4.2)	(7.6)	(8.3)
Amortization of net actuarial loss from earlier periods	1.5	2.1	3.1	4.5
Amortization of net prior service costs from earlier periods	(0.1)		(0.2)
Net periodic expense	6.6	6.7	13.5	14.6
Other Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.8	0.6	1.5	1.2
Interest cost	0.2	0.3	0.5	0.6
Amortization of net prior service costs from earlier periods			(0.1)	(0.1)
Net periodic expense	$ 1.0	$ 0.9	$ 1.9	$ 1.7

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Pension and Other Post-Retirement Benefits - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Funded Pension Plans [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Estimated additional payments in 2018	$ 15.0
Unfunded Pension Plans [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit payment amount	2.2
Estimated additional payments in 2018	3.1
Other Postretirement Benefit Plans Defined Benefit [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit payment amount	0.2
Estimated additional payments in 2018	$ 0.7

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INDEBTEDNESS

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

INDEBTEDNESS

NOTE 15. INDEBTEDNESS

The following table summarizes total indebtedness:

		June 30, 2018
		Principal Amount		Fair Value of Interest Rate Swaps (1)		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
Notes Payable:
	5.50% 2010 Senior Notes, due 2020	$	500.0	$	(7.3)	$	(0.8)	$	(0.9)	$	491.0
	4.50% 2012 Senior Notes, due 2022		500.0		(2.8)		(1.8)		(1.6)		493.8
	4.875% 2013 Senior Notes, due 2024		500.0		-		(1.7)		(2.2)		496.1
	2.75% 2014 Senior Notes (5-Year), due 2019		450.0		(4.4)		(0.2)		(0.7)		444.7
	5.25% 2014 Senior Notes (30-Year), due 2044		600.0		-		3.3		(5.6)		597.7
	1.75% 2015 Senior Notes, due 2027		583.8		-		-		(3.3)		580.5
	2.75% 2017 Senior Notes, due 2021		500.0		-		(1.1)		(2.9)		496.0
	2017 Floating Rate Senior Notes, due 2018		300.0		-		-		(0.1)		299.9
	2.625% 2017 Senior Notes, due 2023		500.0		-		(1.0)		(3.2)		495.8
	3.25% 2017 Senior Notes, due 2028		500.0		-		(5.0)		(3.8)		491.2
	3.25% 2018 Senior Notes, due 2021		300.0		-		(0.4)		(1.7)		297.9
	2017 Term Loan Facility, due 2020		50.0		-		-		(0.5)		49.5
	Commercial Paper		90.0		-		(0.1)		-		89.9
Total debt		$	5,373.8	$	(14.5)	$	(8.8)	$	(26.5)	$	5,324.0
Current portion											(389.8)
Total long-term debt										$	4,934.2
		December 31, 2017
		Principal Amount		Fair Value of Interest Rate Swaps (1)		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
Notes Payable:
	5.50% 2010 Senior Notes, due 2020	$	500.0	$	-	$	(1.0)	$	(1.2)	$	497.8
	4.50% 2012 Senior Notes, due 2022		500.0		(0.8)		(2.0)		(1.7)		495.5
	4.875% 2013 Senior Notes, due 2024		500.0		-		(1.8)		(2.4)		495.8
	2.75% 2014 Senior Notes (5-Year), due 2019		450.0		(2.2)		(0.2)		(1.1)		446.5
	5.25% 2014 Senior Notes (30-Year), due 2044		600.0		-		3.3		(5.7)		597.6
	1.75% 2015 Senior Notes, due 2027		600.4		-		-		(3.6)		596.8
	2.75% 2017 Senior Notes, due 2021		500.0		-		(1.3)		(3.2)		495.5
	2017 Floating Rate Senior Notes, due 2018		300.0		-		-		(0.5)		299.5
	2.625% 2017 Senior Notes, due 2023		500.0		-		(1.1)		(3.5)		495.4
	3.25% 2017 Senior Notes, due 2028		500.0		-		(5.2)		(3.9)		490.9
	2017 Term Loan Facility, due 2020		500.0		-		-		(0.7)		499.3
	Commercial Paper		130.0		-		(0.1)		-		129.9
Total debt		$	5,580.4	$	(3.0)	$	(9.4)	$	(27.5)	$	5,540.5
Current portion											(429.4)
Total long-term debt										$	5,111.1
(1) The Company has entered into interest rate swaps on the 2010 Senior Notes, the 2012 Senior Notes, the 2014 Senior Notes (5-Year) and the 2017 Senior Notes due 2021 which are more fully discussed in Note 9 above. These amounts represent the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt.

Term Loan Facility

In the second quarter of 2018, the Company repaid $450 million of the 2017 Term Loan Facility. As of June 30, 2018, the Company has $50 million outstanding under the 2017 Term Loan Facility.

Commercial Paper

As of June 30, 2018, the Company has CP borrowings outstanding of $90 million with a weighted average maturity date at the time of issuance of 33 days. At June 30, 2018, the weighted average remaining maturity and interest rate on CP outstanding was 11 days and 2.35% respectively.

Notes Payable

On June 1, 2018, the Company issued $300 million aggregate principal amount of senior unsecured notes in a public offering. The 2018 Senior Notes bear interest at the annual fixed rate of 3.250% and mature on June 7, 2021. Interest on the notes will be due semi-annually on June 7 and December 7 of each year, commencing December 7, 2018. The Company may redeem, in whole or in part, the notes at any time, at a price equal to the greater of (i) 100% of the principal amount being prepaid, plus accrued and unpaid interest, and (ii) the make-whole redemption price set forth in the notes, plus accrued and unpaid interest. Notwithstanding the preceding sentence, the Company may redeem all or a portion of the notes at its option at any time on or after May 7, 2021 (one month prior to their maturity), at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

Additionally, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon the occurrence of a Change of Control Triggering Event (as defined in the Indenture) at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any Indebtedness (as defined in the Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the indenture, the notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

At June 30, 2018, the Company was in compliance with all covenants contained within all of its debt agreements. All the debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of June 30, 2018, there were no such cross defaults.

Year Ending December 31,	2010 Senior Notes due 2020		2012 Senior Notes due 2022		2013 Senior Notes due 2024		2014 Senior Notes (5-year) due 2019		2014 Senior Notes (30-year) due 2044		2015 Senior Notes due 2027		2017 Term Loan Facility due 2020		2017 Floating Rate Senior Notes due 2018		2017 Senior Notes due 2021		2017 Notes due 2023		2017 Notes due 2028		2018 Notes due 2021		Commercial Paper		Total
2018 (after June 30,)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	300.0	$	-	$	-	$	-	$	-	$	90.0	$	390.0
2019		-		-		-		450.0		-		-		-		-		-		-		-		-		-		450.0
2020		500.0		-		-		-		-		-		50.0		-		-		-		-		-		-		550.0
2021		-		-		-		-		-		-		-		-		500.0		-		-		300.0		-		800.0
2022		-		500.0		-		-		-		-		-		-		-		-		-		-		-		500.0
Thereafter		-		-		500.0		-		600.0		583.8		-		-		-		500.0		500.0		-		-		2,683.8
Total	$	500.0	$	500.0	$	500.0	$	450.0	$	600.0	$	583.8	$	50.0	$	300.0	$	500.0	$	500.0	$	500.0	$	300.0	$	90.0	$	5,373.8

Interest expense, net

The following table summarizes the components of interest as presented in the consolidated statements of operations:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Income	$	3.4	$	4.6	$	6.6	$	8.7
Expense on borrowings		(49.4)		(46.4)		(100.7)		(91.1)
UTPs and other tax related liabilities		(2.8)		(3.4)		(1.0)		(5.5)
Net periodic pension costs - interest component (1)		(4.9)		(4.7)		(9.6)		(9.7)
Capitalized		0.3		0.2		0.6		0.5
Total	$	(53.4)	$	(49.7)	$	(104.1)	$	(97.1)
(1) The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in other non-operating income. The service cost component continues to be reported as an operating expense.

The following table shows the cash paid for interest:

	Six Months Ended
	June 30,
	2018		2017
Interest paid	$	102.5	$	88.5

The Company’s debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for the 2010 Senior Notes, the 2014 Senior Notes (5-Year), the 2012 Senior Notes and the 2017 Senior Notes Due 2021 which are recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge thefair value of the note.

The fair value and carrying value of the Company’s debt (excluding Commercial Paper) as of June 30, 2018and December 31, 2017 are as follows:

	June 30, 2018				December 31, 2017
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
2010 Senior Notes	$	491.0	$	522.9	$	497.8	$	537.9
2012 Senior Notes		493.8		516.8		495.5		535.6
2013 Senior Notes		496.1		525.6		495.8		547.8
2014 Senior Notes (5-Year)		444.7		448.9		446.5		452.8
2014 Senior Notes (30-Year)		597.7		675.5		597.6		722.4
2015 Senior Notes		580.5		601.9		596.8		617.7
2.75% 2017 Senior Notes, due 2021		496.0		488.6		495.5		500.0
2017 Floating Rate Senior Notes		299.9		300.1		299.5		300.2
2.65% 2017 Senior Notes, due 2023		495.8		478.7		495.4		494.8
3.25% 2017 Senior Notes, due 2028		491.2		472.2		490.9		493.6
2017 Term Loan Facility, due 2020		49.5		49.5		499.3		499.3
3.25% 2018 Senior Notes, due 2021		297.9		299.5		-		-
Total	$	5,234.1	$	5,380.2	$	5,410.6	$	5,702.1

The fair value of the Company’s long-term debt is estimated based on quoted market prices for similar instruments. Accordingly, the inputs used to estimate the fair value of the Company’s long-term debt are classified as Level 2 inputs within the fair value hierarchy.

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INDEBTEDNESS (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Summary of Total Indebtedness

		June 30, 2018
		Principal Amount		Fair Value of Interest Rate Swaps (1)		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
Notes Payable:
	5.50% 2010 Senior Notes, due 2020	$	500.0	$	(7.3)	$	(0.8)	$	(0.9)	$	491.0
	4.50% 2012 Senior Notes, due 2022		500.0		(2.8)		(1.8)		(1.6)		493.8
	4.875% 2013 Senior Notes, due 2024		500.0		-		(1.7)		(2.2)		496.1
	2.75% 2014 Senior Notes (5-Year), due 2019		450.0		(4.4)		(0.2)		(0.7)		444.7
	5.25% 2014 Senior Notes (30-Year), due 2044		600.0		-		3.3		(5.6)		597.7
	1.75% 2015 Senior Notes, due 2027		583.8		-		-		(3.3)		580.5
	2.75% 2017 Senior Notes, due 2021		500.0		-		(1.1)		(2.9)		496.0
	2017 Floating Rate Senior Notes, due 2018		300.0		-		-		(0.1)		299.9
	2.625% 2017 Senior Notes, due 2023		500.0		-		(1.0)		(3.2)		495.8
	3.25% 2017 Senior Notes, due 2028		500.0		-		(5.0)		(3.8)		491.2
	3.25% 2018 Senior Notes, due 2021		300.0		-		(0.4)		(1.7)		297.9
	2017 Term Loan Facility, due 2020		50.0		-		-		(0.5)		49.5
	Commercial Paper		90.0		-		(0.1)		-		89.9
Total debt		$	5,373.8	$	(14.5)	$	(8.8)	$	(26.5)	$	5,324.0
Current portion											(389.8)
Total long-term debt										$	4,934.2
		December 31, 2017
		Principal Amount		Fair Value of Interest Rate Swaps (1)		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
Notes Payable:
	5.50% 2010 Senior Notes, due 2020	$	500.0	$	-	$	(1.0)	$	(1.2)	$	497.8
	4.50% 2012 Senior Notes, due 2022		500.0		(0.8)		(2.0)		(1.7)		495.5
	4.875% 2013 Senior Notes, due 2024		500.0		-		(1.8)		(2.4)		495.8
	2.75% 2014 Senior Notes (5-Year), due 2019		450.0		(2.2)		(0.2)		(1.1)		446.5
	5.25% 2014 Senior Notes (30-Year), due 2044		600.0		-		3.3		(5.7)		597.6
	1.75% 2015 Senior Notes, due 2027		600.4		-		-		(3.6)		596.8
	2.75% 2017 Senior Notes, due 2021		500.0		-		(1.3)		(3.2)		495.5
	2017 Floating Rate Senior Notes, due 2018		300.0		-		-		(0.5)		299.5
	2.625% 2017 Senior Notes, due 2023		500.0		-		(1.1)		(3.5)		495.4
	3.25% 2017 Senior Notes, due 2028		500.0		-		(5.2)		(3.9)		490.9
	2017 Term Loan Facility, due 2020		500.0		-		-		(0.7)		499.3
	Commercial Paper		130.0		-		(0.1)		-		129.9
Total debt		$	5,580.4	$	(3.0)	$	(9.4)	$	(27.5)	$	5,540.5
Current portion											(429.4)
Total long-term debt										$	5,111.1
(1) The Company has entered into interest rate swaps on the 2010 Senior Notes, the 2012 Senior Notes, the 2014 Senior Notes (5-Year) and the 2017 Senior Notes due 2021 which are more fully discussed in Note 9 above. These amounts represent the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt.

Principal Payments Due on Long-Term Borrowings

Year Ending December 31,	2010 Senior Notes due 2020		2012 Senior Notes due 2022		2013 Senior Notes due 2024		2014 Senior Notes (5-year) due 2019		2014 Senior Notes (30-year) due 2044		2015 Senior Notes due 2027		2017 Term Loan Facility due 2020		2017 Floating Rate Senior Notes due 2018		2017 Senior Notes due 2021		2017 Notes due 2023		2017 Notes due 2028		2018 Notes due 2021		Commercial Paper		Total
2018 (after June 30,)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	300.0	$	-	$	-	$	-	$	-	$	90.0	$	390.0
2019		-		-		-		450.0		-		-		-		-		-		-		-		-		-		450.0
2020		500.0		-		-		-		-		-		50.0		-		-		-		-		-		-		550.0
2021		-		-		-		-		-		-		-		-		500.0		-		-		300.0		-		800.0
2022		-		500.0		-		-		-		-		-		-		-		-		-		-		-		500.0
Thereafter		-		-		500.0		-		600.0		583.8		-		-		-		500.0		500.0		-		-		2,683.8
Total	$	500.0	$	500.0	$	500.0	$	450.0	$	600.0	$	583.8	$	50.0	$	300.0	$	500.0	$	500.0	$	500.0	$	300.0	$	90.0	$	5,373.8

Summary of Components of Interest as Presented in Consolidated Statements of Operations

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Income	$	3.4	$	4.6	$	6.6	$	8.7
Expense on borrowings		(49.4)		(46.4)		(100.7)		(91.1)
UTPs and other tax related liabilities		(2.8)		(3.4)		(1.0)		(5.5)
Net periodic pension costs - interest component (1)		(4.9)		(4.7)		(9.6)		(9.7)
Capitalized		0.3		0.2		0.6		0.5
Total	$	(53.4)	$	(49.7)	$	(104.1)	$	(97.1)
(1) The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in other non-operating income. The service cost component continues to be reported as an operating expense.

Interest Paid

	Six Months Ended
	June 30,
	2018		2017
Interest paid	$	102.5	$	88.5

Fair Value and Carrying Value of Long-Term Debt

	June 30, 2018				December 31, 2017
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
2010 Senior Notes	$	491.0	$	522.9	$	497.8	$	537.9
2012 Senior Notes		493.8		516.8		495.5		535.6
2013 Senior Notes		496.1		525.6		495.8		547.8
2014 Senior Notes (5-Year)		444.7		448.9		446.5		452.8
2014 Senior Notes (30-Year)		597.7		675.5		597.6		722.4
2015 Senior Notes		580.5		601.9		596.8		617.7
2.75% 2017 Senior Notes, due 2021		496.0		488.6		495.5		500.0
2017 Floating Rate Senior Notes		299.9		300.1		299.5		300.2
2.65% 2017 Senior Notes, due 2023		495.8		478.7		495.4		494.8
3.25% 2017 Senior Notes, due 2028		491.2		472.2		490.9		493.6
2017 Term Loan Facility, due 2020		49.5		49.5		499.3		499.3
3.25% 2018 Senior Notes, due 2021		297.9		299.5		-		-
Total	$	5,234.1	$	5,380.2	$	5,410.6	$	5,702.1

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Summary of Total Indebtedness (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Principal Amount	$ 5,373.8	$ 5,580.4
Fair Value of Interest Rate Swap	(14.5)	(3.0)
Unamortized (Discount) Premium	(8.8)	(9.4)
Unamortized Debt Issuance Costs	(26.5)	(27.5)
Total Debt	5,324.0	5,540.5
Current portion	(389.8)	(429.4)
Carrying Amount	5,234.1	5,410.6
Current portion of long-term debt	(299.9)	(299.5)
Total long-term debt, non-current	4,934.2	5,111.1
Commercial Paper [Member]
Debt Instrument [Line Items]
Principal Amount	90.0	130.0
Unamortized (Discount) Premium	(0.1)	(0.1)
Total Debt	89.9	129.9
5.50% 2010 Senior Notes, due 2020 [Member]
Debt Instrument [Line Items]
Principal Amount	500.0	500.0
Fair Value of Interest Rate Swap	(7.3)
Unamortized (Discount) Premium	(0.8)	(1.0)
Unamortized Debt Issuance Costs	(0.9)	(1.2)
Carrying Amount	491.0	497.8
4.50% 2012 Senior Notes, due 2022 [Member]
Debt Instrument [Line Items]
Principal Amount	500.0	500.0
Fair Value of Interest Rate Swap	(2.8)	(0.8)
Unamortized (Discount) Premium	(1.8)	(2.0)
Unamortized Debt Issuance Costs	(1.6)	(1.7)
Carrying Amount	493.8	495.5
4.875% 2013 Senior Notes, due 2024 [Member]
Debt Instrument [Line Items]
Principal Amount	500.0	500.0
Unamortized (Discount) Premium	(1.7)	(1.8)
Unamortized Debt Issuance Costs	(2.2)	(2.4)
Carrying Amount	496.1	495.8
2.75% 2014 Senior Notes (5-Year), due 2019 [Member]
Debt Instrument [Line Items]
Principal Amount	450.0	450.0
Fair Value of Interest Rate Swap	(4.4)	(2.2)
Unamortized (Discount) Premium	(0.2)	(0.2)
Unamortized Debt Issuance Costs	(0.7)	(1.1)
Carrying Amount	444.7	446.5
5.25% 2014 Senior Notes (30-Year), due 2044 [Member]
Debt Instrument [Line Items]
Principal Amount	600.0	600.0
Unamortized (Discount) Premium	3.3	3.3
Unamortized Debt Issuance Costs	(5.6)	(5.7)
Carrying Amount	597.7	597.6
1.75% 2015 Senior Notes, due 2027 [Member]
Debt Instrument [Line Items]
Principal Amount	583.8	600.4
Unamortized Debt Issuance Costs	(3.3)	(3.6)
Carrying Amount	580.5	596.8
2.75% 2017 Senior Notes, due 2021 [Member]
Debt Instrument [Line Items]
Principal Amount	500.0	500.0
Unamortized (Discount) Premium	(1.1)	(1.3)
Unamortized Debt Issuance Costs	(2.9)	(3.2)
Carrying Amount	496.0	495.5
2017 Floating Rate Senior Notes [Member]
Debt Instrument [Line Items]
Principal Amount	300.0	300.0
Unamortized Debt Issuance Costs	(0.1)	(0.5)
Carrying Amount	299.9	299.5
2.625% 2017 Notes, due 2023 [Member]
Debt Instrument [Line Items]
Principal Amount	500.0	500.0
Unamortized (Discount) Premium	(1.0)	(1.1)
Unamortized Debt Issuance Costs	(3.2)	(3.5)
Carrying Amount	495.8	495.4
3.25% 2017 Notes, due 2028 [Member]
Debt Instrument [Line Items]
Principal Amount	500.0	500.0
Unamortized (Discount) Premium	(5.0)	(5.2)
Unamortized Debt Issuance Costs	(3.8)	(3.9)
Carrying Amount	491.2	490.9
2017 Term Loan Facility, due 2020 [Member]
Debt Instrument [Line Items]
Principal Amount	50.0	500.0
Unamortized Debt Issuance Costs	(0.5)	(0.7)
Carrying Amount	49.5	$ 499.3
3.25% 2018 Notes, due 2021 [Member]
Debt Instrument [Line Items]
Principal Amount	300.0
Unamortized (Discount) Premium	(0.4)
Unamortized Debt Issuance Costs	(1.7)
Carrying Amount	$ 297.9

XML

Summary of Total Indebtedness (Parenthetical) (Detail)	Jun. 30, 2018	Dec. 31, 2017
5.50% 2010 Senior Notes, due 2020 [Member]
Debt Instrument [Line Items]
Notes Payable, interest rate	5.50%	5.50%
4.50% 2012 Senior Notes, due 2022 [Member]
Debt Instrument [Line Items]
Notes Payable, interest rate	4.50%	4.50%
4.875% 2013 Senior Notes, due 2024 [Member]
Debt Instrument [Line Items]
Notes Payable, interest rate	4.875%	4.875%
2.75% 2014 Senior Notes (5-Year), due 2019 [Member]
Debt Instrument [Line Items]
Notes Payable, interest rate	2.75%	2.75%
5.25% 2014 Senior Notes (30-Year), due 2044 [Member]
Debt Instrument [Line Items]
Notes Payable, interest rate	5.25%	5.25%
1.75% 2015 Senior Notes, due 2027 [Member]
Debt Instrument [Line Items]
Notes Payable, interest rate	1.75%	1.75%
2.75% 2017 Senior Notes, due 2021 [Member]
Debt Instrument [Line Items]
Notes Payable, interest rate	2.75%	2.75%
2.625% 2017 Notes, due 2023 [Member]
Debt Instrument [Line Items]
Notes Payable, interest rate	2.65%	2.65%
3.25% 2017 Notes, due 2028 [Member]
Debt Instrument [Line Items]
Notes Payable, interest rate	3.25%	3.25%
3.25% 2018 Notes, due 2021 [Member]
Debt Instrument [Line Items]
Notes Payable, interest rate	3.25%

XML

Principal Payments Due on Long-Term Borrowings (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
2018 (after June 30,)	$ 390.0
2019	450.0
2020	550.0
2021	800.0
2022	500.0
Thereafter	2,683.8
Total principal payment	5,373.8	$ 5,580.4
Commercial Paper [Member]
Debt Instrument [Line Items]
2018 (after June 30,)	90.0
Total principal payment	90.0	130.0
2010 Senior Notes [Member]
Debt Instrument [Line Items]
2020	500.0
Total principal payment	500.0	500.0
2012 Senior Notes [Member]
Debt Instrument [Line Items]
2022	500.0
Total principal payment	500.0	500.0
2013 Senior Notes [Member]
Debt Instrument [Line Items]
Thereafter	500.0
Total principal payment	500.0	500.0
2014 Senior Notes (5-Year) [Member]
Debt Instrument [Line Items]
2019	450.0
Total principal payment	450.0	450.0
2014 Senior Notes (30-Year) [Member]
Debt Instrument [Line Items]
Thereafter	600.0
Total principal payment	600.0	600.0
2015 Senior Notes [Member]
Debt Instrument [Line Items]
Thereafter	583.8
Total principal payment	583.8	600.4
2017 Floating Rate Senior Notes [Member]
Debt Instrument [Line Items]
2018 (after June 30,)	300.0
Total principal payment	300.0	300.0
2.75% 2017 Senior Notes, due 2021 [Member]
Debt Instrument [Line Items]
2021	500.0
Total principal payment	500.0	500.0
2.625% 2017 Notes, due 2023 [Member]
Debt Instrument [Line Items]
Thereafter	500.0
Total principal payment	500.0	500.0
3.25% 2017 Notes, due 2028 [Member]
Debt Instrument [Line Items]
Thereafter	500.0
Total principal payment	500.0	500.0
2017 Term Loan Facility, due 2020 [Member]
Debt Instrument [Line Items]
2020	50.0
Total principal payment	50.0	$ 500.0
3.25% 2018 Notes, due 2021 [Member]
Debt Instrument [Line Items]
2021	300.0
Total principal payment	$ 300.0

XML

Summary of Components of Interest as Presented in Consolidated Statements of Operations (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
Income	$ 3.4	$ 4.6	$ 6.6	$ 8.7
Expense on borrowings	(49.4)	(46.4)	(100.7)	(91.1)
Income (expense) on UTPs and other tax related liabilities	(2.8)	(3.4)	(1.0)	(5.5)
Net periodic pension costs - interest component	(4.9)	(4.7)	(9.6)	(9.7)
Capitalized	0.3	0.2	0.6	0.5
Total	$ (53.4)	$ (49.7)	$ (104.1)	$ (97.1)

XML

Interest Paid (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
Interest paid	$ 102.5	$ 88.5

XML

Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Long term debt	$ 5,234.1	$ 5,410.6
Estimated Fair Value	5,380.2	5,702.1
2010 Senior Notes [Member]
Debt Instrument [Line Items]
Long term debt	491.0	497.8
Estimated Fair Value	522.9	537.9
2012 Senior Notes [Member]
Debt Instrument [Line Items]
Long term debt	493.8	495.5
Estimated Fair Value	516.8	535.6
2013 Senior Notes [Member]
Debt Instrument [Line Items]
Long term debt	496.1	495.8
Estimated Fair Value	525.6	547.8
2014 Senior Notes (5-Year) [Member]
Debt Instrument [Line Items]
Long term debt	444.7	446.5
Estimated Fair Value	448.9	452.8
2014 Senior Notes (30-Year) [Member]
Debt Instrument [Line Items]
Long term debt	597.7	597.6
Estimated Fair Value	675.5	722.4
2015 Senior Notes [Member]
Debt Instrument [Line Items]
Long term debt	580.5	596.8
Estimated Fair Value	601.9	617.7
2.75% 2017 Senior Notes, due 2021 [Member]
Debt Instrument [Line Items]
Long term debt	496.0	495.5
Estimated Fair Value	488.6	500.0
2017 Floating Rate Senior Notes [Member]
Debt Instrument [Line Items]
Long term debt	299.9	299.5
Estimated Fair Value	300.1	300.2
2.625% 2017 Notes, due 2023 [Member]
Debt Instrument [Line Items]
Long term debt	495.8	495.4
Estimated Fair Value	478.7	494.8
3.25% 2017 Notes, due 2028 [Member]
Debt Instrument [Line Items]
Long term debt	491.2	490.9
Estimated Fair Value	472.2	493.6
2017 Term Loan Facility, due 2020 [Member]
Debt Instrument [Line Items]
Long term debt	49.5	499.3
Estimated Fair Value	49.5	$ 499.3
3.25% 2018 Notes, due 2021 [Member]
Debt Instrument [Line Items]
Long term debt	297.9
Estimated Fair Value	$ 299.5

XML

Indebtedness - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Debt, aggregate principal amount	$ 5,373.8	$ 5,580.4
Commercial Paper [Member]
Debt Instrument [Line Items]
Debt, aggregate principal amount	$ 90.0
Commercial paper, interest rate	2.35%
Maturity Date	11 days
Commercial Paper [Member] | Date of Issuance [Member]
Debt Instrument [Line Items]
Maturity Date	33 days
3.25% 2018 Notes, due 2021 [Member]
Debt Instrument [Line Items]
Debt, aggregate principal amount	$ 300.0
Issuance Date of Debt	Jun. 01, 2018
Percentage of Principal Amount Being Prepaid Plus Accrued and Unpaid Interest	100.00%
Minimum Payment Percentage of Aggregate Principal Amount	25.00%
Minimum Aggregate Amount to be Paid on Maturity that Trips the Cross Default	$ 50.0
Notes Payable, interest rate	3.25%
Percentage of Principal Amount Plus Accrued and Unpaid Interest to the Date of Purchase	101.00%
Maturity date of Senior Unsecured Notes	Jun. 07, 2021
3.25% 2018 Notes, due 2021 [Member] | One Month Prior Maturity [Member]
Debt Instrument [Line Items]
Maturity date of Senior Unsecured Notes	May 07, 2021
2017 Term Loan Facility [Member]
Debt Instrument [Line Items]
Debt, aggregate principal amount	$ 50.0
Repayments of Debt	$ 450.0

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CONTINGENCIES

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

CONTINGENCIES

NOTE 16. CONTINGENCIES

Given the nature of their activities, Moody’s and its subsidiaries are subject to legal and tax proceedings, governmental, regulatory and legislative investigations, subpoenas and other inquiries, and claims and litigation by governmental and private parties that are based on ratings assigned by MIS or that are otherwise incidental to the Company’s business. Moody’s and MIS also are subject to periodic reviews, inspections, examinations and investigations by regulators in the U.S. and other jurisdictions, any of which may result in claims, legal proceedings, assessments, fines, penalties or restrictions on business activities. Moody’s also is subject to ongoing tax audits as addressed in Note 5 to the financial statements.

Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. For claims, litigation and proceedings and governmental investigations and inquiries not related to income taxes, the Company records liabilities in the consolidated financial statements when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated and periodically adjusts these as appropriate. When the reasonable estimate of the loss is within a range of amounts, the minimum amount of the range is accrued unless some higher amount within the range is a better estimate than another amount within the range. In instances when a loss is reasonably possible but uncertainties exist related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if material. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. Moody’s also discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate.

In view of the inherent difficulty of assessing the potential outcome of legal proceedings, governmental, regulatory and legislative investigations and inquiries, claims and litigation and similar matters and contingencies, particularly when the claimants seek large or indeterminate damages or assert novel legal theories or the matters involve a large number of parties, the Company often cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also may be unable to predict the impact (if any) that any such matters may have on how its business is conducted, on its competitive position or on its financial position, results of operations or cash flows. As the process to resolve any pending matters progresses, management will continue to review the latest information available and assess its ability to predict the outcome of such matters and the effects, if any, on its operations and financial condition and to accrue for and disclose such matters as and when required. However, because such matters are inherently unpredictable and unfavorable developments or resolutions can occur, the ultimate outcome of such matters, including the amount of any loss, may differ from those estimates.

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

SEGMENT INFORMATION

NOTE 17. SEGMENT INFORMATION

The Company is organized into two operating segments: MIS and MA and accordingly, the Company reports in two reportable segments: MIS and MA.

The MIS segment consists of five LOBs. The CFG, SFG, FIG and PPIF LOBs generate revenue principally from fees for the assignment and ongoing monitoring of credit ratings on debt obligations and the entities that issue such obligations in markets worldwide. The MIS Other LOB primarily consists of financial instruments pricing services in the Asia-Pacific region as well as ICRA non-ratings revenue.

The MA segment develops a wide range of products and services that support the risk management activities of institutional participants in global financial markets. The MA segment consists of three LOBs - RD&A, ERS and PS.

In August 2017, a subsidiary of the Company acquired Yellow Maple I B.V., an indirect parent of Bureau van Dijk. Bureau van Dijk is part of the MA reportable segment and its revenue is included in the RD&A LOB. Refer to Note 8 for further discussion on the acquisition.

Revenue for MIS and expenses for MA include an intersegment royalty charged to MA for the rights to use and distribute content, data and products developed by MIS. The royalty rate charged by MIS approximates the fair value of the aforementioned content, data and products and is generally based on comparable market transactions. Also, 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. These fees charged by MA are generally equal to the costs incurred by MA to produce these products and services. Additionally, overhead costs and corporate expenses of the Company that exclusively benefit only one segment are fully charged to that segment. Overhead costs and corporate expenses of the Company that benefit both segments are allocated to each segment based on a revenue-split methodology. Accordingly, a reportable segment’s share of these costs will increase as its proportion of revenue relative to Moody’s total revenue increases. Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and information technology. “Eliminations” in the table below represent intersegment revenue/expense. Moody’s does not report the Company’s assets by reportable segment, as this metric is not used by the chief operating decision maker 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, Adjusted Operating Income and operating income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Refer to Note 3 for further details on the components of the Company’s revenue.

	Three Months Ended June 30,
	2018								2017
	MIS		MA		Eliminations		Consolidated		MIS		MA		Eliminations		Consolidated*
Revenue	$	782.9	$	425.2	$	(33.0)	$	1,175.1	$	713.7	$	317.6	$	(30.8)	$	1,000.5
Operating, SG&A		303.6		320.1		(33.0)		590.7		289.7		242.0		(30.8)		500.9
Adjusted Operating Income		479.3		105.1		-		584.4		424.0		75.6		-		499.6
Less:
Depreciation and amortization		16.7		31.7		-		48.4		18.9		14.0		-		32.9
Acquisition-Related Expenses		-		2.0		-		2.0		-		6.6		-		6.6
Operating income	$	462.6	$	71.4	$	-	$	534.0	$	405.1	$	55.0	$	-	$	460.1
	Six Months Ended June 30,
	2018								2017
	MIS		MA		Eliminations		Consolidated		MIS		MA		Eliminations		Consolidated*
Revenue	$	1,532.6	$	837.0	$	(67.8)	$	2,301.8	$	1,407.9	$	628.3	$	(60.5)	$	1,975.7
Operating, SG&A		614.0		630.5		(67.8)		1,176.7		575.9		481.5		(60.5)		996.9
Adjusted Operating Income		918.6		206.5		-		1,125.1		832.0		146.8		-		978.8
Less:
Depreciation and amortization		33.5		64.0		-		97.5		37.8		27.6		-		65.4
Acquisition-Related Expenses		-		2.8		-		2.8		-		6.6		-		6.6
Operating income	$	885.1	$	139.7	$	-	$	1,024.8	$	794.2	$	112.6	$	-	$	906.8
*Pursuant to the adoption of a new accounting standard relating to pension accounting as more fully discussed in Note 1, only the service cost component of net periodic pension expense will be classified within operating and SG&A expenses with the remaining components being classified as non-operating expenses. Prior period segment results have been restated to reflect this reclassification. Accordingly, operating and SG&A expenses for MIS and MA for the three months ended June 30, 2017 were reduced by $1.7 million and $0.9 million. For the six months ended June 30, 2017 operating and SG&A expenses for MIS and MA were reduced by $3.8 million and $2.1 million, respectively.

CONSOLIDATED REVENUE INFORMATION BY GEOGRAPHIC AREA

Consolidated Revenue Information by Geographic Area:
		Three Months Ended June 30,				Six Months Ended June 30,
		2018		2017		2018		2017
United States		$	625.4	$	567.8	$	1,223.1	$	1,145.6
International:
	EMEA		356.1		252.0		703.4		488.3
	Asia-Pacific		123.7		118.0		243.9		217.4
	Americas		69.9		62.7		131.4		124.4
Total International			549.7		432.7		1,078.7		830.1
Total		$	1,175.1	$	1,000.5	$	2,301.8	$	1,975.7

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Financial Information by Segment

	Three Months Ended June 30,
	2018								2017
	MIS		MA		Eliminations		Consolidated		MIS		MA		Eliminations		Consolidated*
Revenue	$	782.9	$	425.2	$	(33.0)	$	1,175.1	$	713.7	$	317.6	$	(30.8)	$	1,000.5
Operating, SG&A		303.6		320.1		(33.0)		590.7		289.7		242.0		(30.8)		500.9
Adjusted Operating Income		479.3		105.1		-		584.4		424.0		75.6		-		499.6
Less:
Depreciation and amortization		16.7		31.7		-		48.4		18.9		14.0		-		32.9
Acquisition-Related Expenses		-		2.0		-		2.0		-		6.6		-		6.6
Operating income	$	462.6	$	71.4	$	-	$	534.0	$	405.1	$	55.0	$	-	$	460.1
	Six Months Ended June 30,
	2018								2017
	MIS		MA		Eliminations		Consolidated		MIS		MA		Eliminations		Consolidated*
Revenue	$	1,532.6	$	837.0	$	(67.8)	$	2,301.8	$	1,407.9	$	628.3	$	(60.5)	$	1,975.7
Operating, SG&A		614.0		630.5		(67.8)		1,176.7		575.9		481.5		(60.5)		996.9
Adjusted Operating Income		918.6		206.5		-		1,125.1		832.0		146.8		-		978.8
Less:
Depreciation and amortization		33.5		64.0		-		97.5		37.8		27.6		-		65.4
Acquisition-Related Expenses		-		2.8		-		2.8		-		6.6		-		6.6
Operating income	$	885.1	$	139.7	$	-	$	1,024.8	$	794.2	$	112.6	$	-	$	906.8
*Pursuant to the adoption of a new accounting standard relating to pension accounting as more fully discussed in Note 1, only the service cost component of net periodic pension expense will be classified within operating and SG&A expenses with the remaining components being classified as non-operating expenses. Prior period segment results have been restated to reflect this reclassification. Accordingly, operating and SG&A expenses for MIS and MA for the three months ended June 30, 2017 were reduced by $1.7 million and $0.9 million. For the six months ended June 30, 2017 operating and SG&A expenses for MIS and MA were reduced by $3.8 million and $2.1 million, respectively.

Consolidated Revenue Information by Geographic Area

Consolidated Revenue Information by Geographic Area:
		Three Months Ended June 30,				Six Months Ended June 30,
		2018		2017		2018		2017
United States		$	625.4	$	567.8	$	1,223.1	$	1,145.6
International:
	EMEA		356.1		252.0		703.4		488.3
	Asia-Pacific		123.7		118.0		243.9		217.4
	Americas		69.9		62.7		131.4		124.4
Total International			549.7		432.7		1,078.7		830.1
Total		$	1,175.1	$	1,000.5	$	2,301.8	$	1,975.7

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Financial Information by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Revenues	$ 1,175.1	$ 1,000.5	$ 2,301.8	$ 1,975.7
Operating, SG&A	590.7	500.9	1,176.7	996.9
Adjusted Operating Income	584.4	499.6	1,125.1	978.8
Depreciation and amortization	48.4	32.9	97.5	65.4
Acquisition-Related Expenses	2.0	6.6	2.8	6.6
Operating Income	534.0	460.1	1,024.8	906.8
MIS [Member]
Segment Reporting Information [Line Items]
Revenues	782.9	713.7	1,532.6	1,407.9
Operating, SG&A	303.6	289.7	614.0	575.9
Adjusted Operating Income	479.3	424.0	918.6	832.0
Depreciation and amortization	16.7	18.9	33.5	37.8
Operating Income	462.6	405.1	885.1	794.2
MA [Member]
Segment Reporting Information [Line Items]
Revenues	425.2	317.6	837.0	628.3
Operating, SG&A	320.1	242.0	630.5	481.5
Adjusted Operating Income	105.1	75.6	206.5	146.8
Depreciation and amortization	31.7	14.0	64.0	27.6
Acquisition-Related Expenses	2.0	6.6	2.8	6.6
Operating Income	71.4	55.0	139.7	112.6
Eliminations [Member]
Segment Reporting Information [Line Items]
Revenues	(33.0)	(30.8)	(67.8)	(60.5)
Operating, SG&A	$ (33.0)	$ (30.8)	$ (67.8)	$ (60.5)

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Financial Information by Segment (Parenthetical) (Detail) - Compensation-Retirement Benefits Accounting Standard [Member] - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Moodys Investors Service [Member]
Segment Reporting Information [Line Items]
Reduction in Operating, SG&A	$ 1.7	$ 3.8
Moodys Analytics [Member]
Segment Reporting Information [Line Items]
Reduction in Operating, SG&A	$ 0.9	$ 2.1

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Consolidated Revenue Information by Geographic Area (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Revenues	$ 1,175.1	$ 1,000.5	$ 2,301.8	$ 1,975.7
U S
Segment Reporting Information [Line Items]
Revenues	625.4	567.8	1,223.1	1,145.6
International Regions [Member]
Segment Reporting Information [Line Items]
Revenues	549.7	432.7	1,078.7	830.1
International Regions [Member] | Europe Middle East And Africa [Member]
Segment Reporting Information [Line Items]
Revenues	356.1	252.0	703.4	488.3
International Regions [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenues	123.7	118.0	243.9	217.4
International Regions [Member] | Americas [Member]
Segment Reporting Information [Line Items]
Revenues	$ 69.9	$ 62.7	$ 131.4	$ 124.4

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RECENTLY ISSUED ACCOUNTING STANDARDS

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

RECENTLY ISSUED ACCOUNTING STANDARDS

NOTE 18. RECENTLY ISSUED ACCOUNTING STANDARDS

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” requiring lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows will depend on classification as either a finance or operating lease. During July 2018, the FASB issued additional updates to the new lease accounting standard. ASU No. 2018-10, “Codification Improvements to Topic 842, Leases” clarifies certain aspects of the new lease accounting standard. In addition, ASU No. 2018-11, “Leases (Topic 842), Targeted Improvements” provides companies with the option to apply the provisions of the new lease accounting standard on the date of adoption (effective date of January 1, 2019 for Moody’s), and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, without adjusting the comparative periods presented as initially required. The Company is currently evaluating the impact of these ASUs on the Company’s financial statements and believes that the most notable impact to its financial statements upon the adoption of the new lease accounting standard will be the recognition of a material right-of-use asset and lease liability for its real estate leases.

At June 30, 2018, the Company is progressing in its assessment and documentation of key judgmental areas relating to the adoption of the new lease accounting standard and the accumulation and evaluation of all necessary information required to properly apply the new guidance. Additionally, the Company is in the process of implementing a software solution to support the accounting set forth in the new standard and is also in the process of assessing the impact that the new standard will have on its processes and internal controls.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. The amendments in this ASU require the use of an “expected credit loss” impairment model for most financial assets reported at amortized cost which will require entities to estimate expected credit losses over the lifetime of the instrument. This may result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, an allowance for credit losses will be recognized as a contra account to the amortized cost carrying value of the asset rather than a direct reduction to the carrying value, with changes in the allowance impacting earnings. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted in annual and interim reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company is currently evaluating the impact of this ASU on its financial statements. Currently, the Company believes that the most notable impact of this ASU will relate to its processes around the assessment of the adequacy of its allowance for doubtful accounts on accounts receivable.

In February 2018, FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. Under current GAAP, adjustments to deferred tax assets and liabilities related to a change in tax laws or rates are included in income from continuing operations, even in situations where the related items were originally recognized in OCI (commonly referred to as a “stranded tax effect”). The provisions of this ASU permit the reclassification of the stranded tax effect related to the Tax Act from AOCI to retained earnings. This ASU is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this ASU is to be applied either in the period of adoption or retrospectively to each period in which the effect of the Tax Act were recognized. The Company is currently in the process of quantifying the amount of the reclassification from AOCI to retained earnings relating to the aforementioned stranded tax effect of the Tax Act.

In June 2018, the FASB issued ASU No. 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that ASC Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The ASU is effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company does not expect that the adoption of this ASU will have a significant impact on the Company’s consolidated financial statements.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

SUBSEQUENT EVENTS

NOTE 19. SUBSEQUENT EVENT

On July 9, 2018, the Board approved the declaration of a quarterly dividend of $0.44 per share of Moody’s common stock, payable on September 10, 2018 to shareholders of record at the close of business on August 20, 2018.

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Subsequent Events - Additional Information (Detail) - Subsequent Event [Member]	Jul. 09, 2018 $ / shares
Dividends Payable [Line Items]
Dividend declared, per share	$ 0.44
Dividend declared, declaration date	Jul. 09, 2018
Dividend declared, payable date	Sep. 10, 2018
Dividend declared, record date	Aug. 20, 2018