The Company’s selected consolidated financial data should be read in conjunction with Item 7. “MD&A” and the Moody’s Corporation consolidated financial statements and notes thereto.
Year Ended December 31,
amounts in millions, except per share data
2018
2017
2016
2015
2014
Results of operations
Revenue
$
4,442.7
$
4,204.1
$
3,604.2
$
3,484.5
$
3,334.3
Expenses
Operating and SG&A Expenses (1)
2,325.6
2,202.5
1,950.8
1,880.3
1,788.9
Restructuring
48.7
—
12.0
—
—
Depreciation and amortization
191.9
158.3
126.7
113.5
95.6
Acquisition-Related Expenses
8.3
22.5
—
—
—
Settlement Charge
—
—
863.8
—
—
Total Expenses
2,574.5
2,383.3
2,953.3
1,993.8
1,884.5
Operating income(2)
1,868.2
1,820.8
650.9
1,490.7
1,449.8
Non-operating (expense) income, net (3)(1)
(197.2
)
(34.0
)
(92.9
)
(111.1
)
11.2
Income before provision for income taxes (2)
1,671.0
1,786.8
558.0
1,379.6
1,461.0
Provision for income taxes (4)
351.6
779.1
282.2
430.0
455.0
Net income (2)
1,319.4
1,007.7
275.8
949.6
1,006.0
Less: Net income attributable to noncontrolling interests
9.8
7.1
9.2
8.3
17.3
Net income attributable to Moody’s (2)(5)
$
1,309.6
$
1,000.6
$
266.6
$
941.3
$
988.7
Earnings per share
Basic (2)
$
6.84
$
5.24
$
1.38
$
4.70
$
4.69
Diluted (2)
$
6.74
$
5.15
$
1.36
$
4.63
$
4.61
Weighted average shares outstanding
Basic
191.6
191.1
192.7
200.1
210.7
Diluted
194.4
194.2
195.4
203.4
214.7
Dividends declared per share
$
1.76
$
1.14
$
1.49
$
1.39
$
1.18
Operating margin (2)
42.1
%
43.3
%
18.1
%
42.8
%
43.5
%
Operating Cash Flow (6)
$
1,461.1
$
754.6
$
1,259.2
$
1,198.1
$
1,077.3
December 31,
2018
2017
2016
2015
2014
Balance sheet data
Total assets
$
9,526.2
$
8,594.2
$
5,327.3
$
5,103.0
$
4,653.8
Long-term debt
$
5,226.1
$
5,111.1
$
3,063.0
$
3,380.6
$
2,532.1
Total shareholders’ equity (deficit)
$
656.5
$
(114.9
)
$
(1,027.3
)
$
(333.0
)
$
42.9
(1)
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 expense is classified within operating and SG&A expenses with the remaining components being classified as non-operating (expenses) income. Prior period results have been restated to reflect this classification.
(2)
The significant decrease in 2016 is primarily driven by the 2016 $863.8 million Settlement Charge ($700.7 million, net of tax, or $3.59 per diluted share).
(3)
The 2017 amount includes a $111.1 million Purchase Price Hedge Gain as well as the $59.7 million CCXI Gain. The 2016 amount includes a $34.8 million FX gain relating to the substantial liquidation of a subsidiary. The 2015 and 2014 amounts include benefits of $7.1 million each, related to the favorable resolution of certain Legacy Tax Matters. The 2014 amount also includes the ICRA Gain of $102.8 million.
(4)
Provision for income taxes in the year ended December 31, 2018 includes a charge of $63.9 million relating to an increase in non-U.S. UTPs, partially offset by a $59.0 million benefit from potential realization of foreign tax credits and other adjustments to previous estimates relating to the Tax Act. Provision for income taxes in the year ended December 31, 2017 includes a net charge of $245.6 million related to the impact of U.S. tax reform and a statutory tax rate reduction in Belgium as more fully discussed in Note 16 to the consolidated financial statements in Item 8 of this Form 10-K.
The 2018 amount includes: i) a $59.0 million ($0.30 per share) benefit related to the impact of U.S. tax reform, ii) a $63.9 million ($0.33 per share) charge related to an increase to non-U.S UTPs; and iii) $36.8 million ($0.19 per share) net restructuring charge. The 2017 amount includes: i) a $245.6 million ($1.27 per share) charge related to the impact of U.S. tax reform and a statutory tax rate reduction in Belgium; ii) a $72.3 million ($0.37 per share) Purchase Price Hedge Gain; and iii) the $59.7 million ($0.31 per share) CCXI Gain. The 2016 amount includes: i) a $700.7 million ($3.59 per share) Settlement Charge; ii) an $8.1 million ($0.04 per share) restructuring charge; and iii) a $34.8 million ($0.18 per share) FX gain relating to the substantial liquidation of a subsidiary. The 2015 and 2014 amounts include benefits of $6.4 million ($0.03 per share) each related to the resolution of certain Legacy Tax Matters. Also, the 2014 amount includes the ICRA Gain of $78.5 million ($0.37 per share).
(6)
The decline in operating cash flow in 2017 is primarily due to payments made relating to the Settlement Charge. Additionally, in the first quarter of 2017, the Company adopted ASU No. 2016-09 “Improvements to Employee Share-Based Payment Accounting”. As required by ASU 2016-09, Excess Tax Benefits or shortfalls relating to employee stock-based compensation are reflected in operating cash flow and the Company has applied this provision on a retrospective basis. Under previous accounting guidance, Excess Tax Benefits or shortfalls were shown as a reduction to operating cash flow and an increase to financing cash flow.
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