Item 1. Financial Statements

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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,
	2024		2023		2024		2023
Revenue	$	1,817	$	1,494	$	3,603	$	2,964
Expenses
Operating	469		426		936		854
Selling, general, and administrative	446		415		859		801
Depreciation and amortization	110		93		210		181
Restructuring	2		10		7		24
Charges related to asset abandonment	15		—		15		—

Total expenses	1,042		944		2,027		1,860
Operating income	775		550		1,576		1,104
Non-operating (expense) income, net
Interest expense, net	(63)		(71)		(125)		(119)
Other non-operating income, net	7		13		20		13
Total non-operating (expense) income, net	(56)		(58)		(105)		(106)
Income before provision for income taxes	719		492		1,471		998
Provision for income taxes	166		115		341		120
Net income	553		377		1,130		878
Less: Net income attributable to noncontrolling interests	1		—		1		—
Net income attributable to Moody's	$	552	$	377	$	1,129	$	878
Earnings per share attributable to Moody's common shareholders
Basic	$	3.03	$	2.05	$	6.19	$	4.79
Diluted	$	3.02	$	2.05	$	6.16	$	4.77
Weighted average number of shares outstanding
Basic	182.3		183.5		182.5		183.4
Diluted	183.0		184.1		183.2		184.1

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

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Amounts in millions)



	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
	Pre-tax amounts		Tax amounts		After-tax amounts		Pre-tax amounts		Tax amounts		After-tax amounts
Net Income					$	553					$	377
Other Comprehensive Income (Loss):
Foreign Currency Adjustments:
Foreign currency translation adjustments, net	$	(39)	$	—	(39)		$	51	$	—	51

Net gains (losses) on net investment hedges	43		(11)		32		(37)		9		(28)

Cash Flow Hedges:

Reclassification of gains (losses) included in net income	—		—		—		—		(1)		(1)
Pension and Other Retirement Benefits:
Amortization of actuarial gains and prior service credits included in net income	(1)		—		(1)		(2)		1		(1)
Net actuarial losses	(2)		1		(1)		—		—		—
Total other comprehensive (loss) income	$	1	$	(10)	$	(9)	$	12	$	9	$	21
Comprehensive income					544						398
Less: comprehensive income attributable to noncontrolling interests					—						2
Comprehensive Income Attributable to Moody's					$	544					$	396


	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023

	Pre-tax amounts		Tax amounts		After-tax amounts		Pre-tax amounts		Tax amounts		After-tax amounts
Net Income					$	1,130					$	878
Other Comprehensive Income (Loss):
Foreign Currency Adjustments:
Foreign currency translation adjustments, net	$	(154)	$	—	(154)		$	160	$	(2)	158

Net gains (losses) on net investment hedges	144		(38)		106		(113)		28		(85)

Cash Flow Hedges:

Reclassification of losses included in net income	1		—		1		1		(1)		—
Pension and Other Retirement Benefits:
Amortization of actuarial gains and prior service credits included in net income	(1)		—		(1)		(2)		1		(1)
Net actuarial losses	(3)		1		(2)		—		—		—
Total other comprehensive (loss) income	$	(13)	$	(37)	$	(50)	$	46	$	26	$	72
Comprehensive income					1,080						950
Less: comprehensive loss attributable to noncontrolling interests					—						(1)
Comprehensive Income Attributable to Moody's					$	1,080					$	951

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

MOODY’S CORPORATION

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

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


	June 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	2,635	$	2,130
Short-term investments	63		63
Accounts receivable, net of allowance for credit losses of $35 in 2024 and $35 in 2023	1,694		1,659
Other current assets	489		489

Total current assets	4,881		4,341
Property and equipment, net of accumulated depreciation of $1,378 in 2024 and $1,272 in 2023	652		603
Operating lease right-of-use assets	242		277
Goodwill	5,891		5,956
Intangible assets, net	1,930		2,049
Deferred tax assets, net	267		258
Other assets	1,150		1,138
Total assets	$	15,013	$	14,622
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	1,000	$	1,076
Current portion of operating lease liabilities	108		108

Current portion of long-term debt	688		—
Deferred revenue	1,423		1,316

Total current liabilities	3,219		2,500
Non-current portion of deferred revenue	59		65
Long-term debt	6,253		7,001
Deferred tax liabilities, net	465		402
Uncertain tax positions	207		196
Operating lease liabilities	254		306
Other liabilities	618		676
Total liabilities	11,075		11,146
Contingencies (Note 15)
Shareholders' equity:
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding	—		—
Series common stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding	—		—
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 342,902,272 shares issued at June 30, 2024 and December 31, 2023, respectively	3		3
Capital surplus	1,324		1,228
Retained earnings	15,478		14,659
Treasury stock, at cost; 160,818,154 and 160,430,754 shares of common stock at June 30, 2024 and December 31, 2023, respectively	(12,410)		(12,005)
Accumulated other comprehensive loss	(617)		(567)
Total Moody's shareholders' equity	3,778		3,318
Noncontrolling interests	160		158
Total shareholders' equity	3,938		3,476
Total liabilities, noncontrolling interests, and shareholders' equity	$	15,013	$	14,622

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

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in millions)


	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities
Net income	$	1,130	$	878
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	210		181
Stock-based compensation	109		97
Deferred income taxes	25		21



Provision for credit losses on accounts receivable	10		9
Changes in assets and liabilities:
Accounts receivable	(64)		112
Other current assets	(6)		78

Other assets	(1)		(24)
Lease obligations	(15)		(9)

Accounts payable and accrued liabilities	(82)		(86)
Deferred revenue	120		97
Uncertain tax positions and other non-current tax liabilities	12		(120)
Other liabilities	13		(22)
Net cash provided by operating activities	1,461		1,212
Cash flows from investing activities
Capital additions	(171)		(127)
Purchases of investments	(87)		(53)
Sales and maturities of investments	81		81
Purchases of investments in non-consolidated affiliates	(2)		(2)
Sales of investments in non-consolidated affiliates	—		1

Cash paid for acquisitions, net of cash acquired	(12)		(3)

Net cash used in investing activities	(191)		(103)
Cash flows from financing activities
Repayment of notes	—		(200)



Proceeds from stock-based compensation plans	45		31
Treasury shares	(384)		(108)

Repurchase of shares related to stock-based compensation	(82)		(64)
Dividends	(309)		(283)
Dividends to noncontrolling interests	(1)		—



Net cash used in financing activities	(731)		(624)

Effect of exchange rate changes on cash and cash equivalents	(34)		24
Increase in cash and cash equivalents	505		509
Cash and cash equivalents, beginning of period	2,130		1,769
Cash and cash equivalents, end of period	$	2,635	$	2,278

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

MOODY’S CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)

(Amounts in millions, except per share data)


Shareholders of Moody's Corporation
	Common Stock			Capital Surplus			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Loss		Total Moody's Shareholders' Equity		Non- Controlling Interests		Total Shareholders' Equity
	Shares	Amount				Shares			Amount
Balance at March 31, 2023	342.9	$	3	$	1,068		$	13,979		(159.4)	$	(11,570)	$	(589)	$	2,891	$	167	$	3,058
Net income							377								377		—		377
Dividends ($0.77 per share)							(143)								(143)		(1)		(144)
Stock-based compensation				50											50				50
Shares issued for stock-based compensation plans at average cost, net				6						0.3	11				17				17


Treasury shares repurchased, inclusive of excise tax				—						(0.3)	(67)				(67)				(67)

Currency translation adjustment, net of net investment hedge activity (net of tax of $9 million)													21		21		2		23
Amortization of actuarial gains and prior service credits (net of tax of $1 million)													(1)		(1)				(1)
Net realized and unrealized gain on cash flow hedges (net of tax of $1 million)													(1)		(1)				(1)

Balance at June 30, 2023	342.9	$	3	$	1,124		$	14,213		(159.4)	$	(11,626)	$	(570)	$	3,144	$	168	$	3,312

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

MOODY'S CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)

(Amounts in millions, except per share data)


Shareholders of Moody's Corporation
	Common Stock			Capital Surplus			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Loss		Total Moody's Shareholders' Equity		Non- Controlling Interests		Total Shareholders' Equity
	Shares	Amount				Shares			Amount
Balance at December 31, 2022	342.9	$	3	$	1,054		$	13,618		(159.7)	$	(11,513)	$	(643)	$	2,519	$	170	$	2,689
Net income							878								878		—		878
Dividends ($1.54 per share)							(283)								(283)		(1)		(284)
Stock-based compensation				97											97				97
Shares issued for stock-based compensation plans at average cost, net				(27)						0.7	(4)				(31)				(31)



Treasury shares repurchased, inclusive of excise tax				—						(0.4)	(109)				(109)				(109)

Currency translation adjustment, net of net investment hedge activity (net of tax of $26 million)													74		74		(1)		73

Amortization of actuarial gains and prior service credits (net of tax of $1 million)													(1)		(1)				(1)

Balance at June 30, 2023	342.9	$	3	$	1,124		$	14,213		(159.4)	$	(11,626)	$	(570)	$	3,144	$	168	$	3,312

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

MOODY'S CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)

(Amounts in millions, except per share data)


Shareholders of Moody's Corporation
	Common Stock			Capital Surplus			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Loss		Total Moody's Shareholders' Equity		Non- Controlling Interests		Total Shareholders' Equity
	Shares	Amount				Shares			Amount
Balance at March 31, 2024	342.9	$	3	$	1,252		$	15,081		(160.3)	$	(12,153)	$	(608)	$	3,575	$	160	$	3,735
Net income							552								552		1		553
Dividends ($0.85 per share)							(155)								(155)		(1)		(156)
Stock-based compensation				57											57				57
Shares issued for stock-based compensation plans at average cost, net				15						0.2	7				22				22


Treasury shares repurchased, inclusive of excise tax										(0.7)	(264)				(264)				(264)
Currency translation adjustment, net of net investment hedge activity (net of tax of $11 million)													(7)		(7)		—		(7)
Net actuarial losses (net of tax of $1 million)													(1)		(1)				(1)
Amortization of actuarial gains and prior service credits													(1)		(1)				(1)

Balance at June 30, 2024	342.9	$	3	$	1,324		$	15,478		(160.8)	$	(12,410)	$	(617)	$	3,778	$	160	$	3,938

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

MOODY'S CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)

(Amounts in millions, except per share data)


Shareholders of Moody's Corporation
	Common Stock			Capital Surplus			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Loss		Total Moody's Shareholders' Equity		Non- Controlling Interests		Total Shareholders' Equity
	Shares	Amount				Shares			Amount
Balance at December 31, 2023	342.9	$	3	$	1,228		$	14,659		(160.4)	$	(12,005)	$	(567)	$	3,318	$	158	$	3,476
Net income							1,129								1,129		1		1,130
Dividends ($1.70 per share)							(310)								(310)		(1)		(311)

Stock-based compensation				111											111				111
Shares issued for stock-based compensation plans at average cost, net				(15)						0.6	(22)				(37)				(37)

Noncontrolling interest resulting from majority acquisition															—		2		2

Treasury shares repurchased, inclusive of excise tax				—						(1.0)	(383)				(383)				(383)

Currency translation adjustment, net of net investment hedge activity (net of tax of $38 million)													(48)		(48)		—		(48)
Net actuarial losses (net of tax of $1 million)													(2)		(2)				(2)
Amortization of actuarial gains and prior service credits													(1)		(1)				(1)
Amortization of losses on cash flow hedges													1		1				1
Balance at June 30, 2024	342.9	$	3	$	1,324		$	15,478		(160.8)	$	(12,410)	$	(617)	$	3,778	$	160	$	3,938

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

MOODY’S CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

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

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

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

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

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

Recently Issued Accounting Standards

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

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

Reclassification of Previously Reported Revenue by LOB

In the first quarter of 2024, pursuant to the integration of RMS into the Company's order-to-cash systems, the Company reclassified certain prior year revenue by geography disclosures. The impact of the reclassification was not material and prior year revenue disclosures have been reclassified to conform to this new presentation, which is disclosed in Note 2.

NOTE 2. 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,
	2024		2023		2024		2023
MA:
Decision Solutions (DS)
Banking	$	131	$	123	$	265	$	254
Insurance	147		133		291		266
KYC	88		78		175		148
Total DS	366		334		731		668
Research and Insights (R&I)	226		217		448		432
Data and Information (D&I)	210		196		422		384
Total external revenue	802		747		1,601		1,484
Intersegment revenue	4		4		7		7
Total MA	806		751		1,608		1,491
MIS:
Corporate Finance (CFG)
Investment-grade	120		94		267		209
High-yield	85		46		152		78
Bank loans	147		68		302		127
Other accounts (1)	173		157		333		307
Total CFG	525		365		1,054		721
Structured Finance (SFG)
Asset-backed securities	34		32		67		59
RMBS	25		25		49		50
CMBS	22		14		39		28
Structured credit	50		31		89		63
Other accounts	—		—		1		1
Total SFG	131		102		245		201
Financial Institutions (FIG)
Banking	115		97		236		197
Insurance	61		35		120		68
Managed investments	15		10		27		16
Other accounts	4		3		7		6
Total FIG	195		145		390		287
Public, Project and Infrastructure Finance (PPIF)
Public finance / sovereign	67		54		126		106
Project and infrastructure	87		73		169		150
Total PPIF	154		127		295		256
Total ratings revenue	1,005		739		1,984		1,465
MIS Other	10		8		18		15
Total external revenue	1,015		747		2,002		1,480
Intersegment revenue	49		46		96		91
Total MIS	1,064		793		2,098		1,571
Eliminations	(53)		(50)		(103)		(98)
Total MCO	$	1,817	$	1,494	$	3,603	$	2,964

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

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


	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
	U.S.		Non-U.S		Total		U.S.		Non-U.S		Total
MA:
Decision Solutions	$	138	$	228	$	366	$	133	$	201	$	334
Research and Insights	124		102		226		119		98		217
Data and Information	76		134		210		68		128		196
Total MA	338		464		802		320		427		747
MIS:
Corporate Finance	342		183		525		239		126		365
Structured Finance	92		39		131		60		42		102
Financial Institutions	104		91		195		73		72		145
Public, Project and Infrastructure Finance	98		56		154		83		44		127
Total ratings revenue	636		369		1,005		455		284		739
MIS Other	—		10		10		—		8		8
Total MIS	636		379		1,015		455		292		747
Total MCO	$	974	$	843	$	1,817	$	775	$	719	$	1,494


	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
	U.S.		Non-U.S		Total		U.S.		Non-U.S		Total
MA:
Decision Solutions	$	276	$	455	$	731	$	265	$	403	$	668
Research and Insights	246		202		448		237		195		432
Data and Information	153		269		422		135		249		384
Total MA	675		926		1,601		637		847		1,484
MIS:
Corporate Finance	714		340		1,054		485		236		721
Structured Finance	168		77		245		121		80		201
Financial Institutions	202		188		390		136		151		287
Public, Project and Infrastructure Finance	184		111		295		159		97		256
Total ratings revenue	1,268		716		1,984		901		564		1,465
MIS Other	—		18		18		—		15		15
Total MIS	1,268		734		2,002		901		579		1,480
Total MCO	$	1,943	$	1,660	$	3,603	$	1,538	$	1,426	$	2,964

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
MA:
U.S.	$	338	$	320	$	675	$	637
Non-U.S.:
EMEA	319		298		635		585
Asia-Pacific	82		70		167		148
Americas	63		59		124		114
Total Non-U.S.	464		427		926		847
Total MA	802		747		1,601		1,484
MIS:
U.S.	636		455		1,268		901
Non-U.S.:
EMEA	247		181		473		354
Asia-Pacific	82		75		152		146
Americas	50		36		109		79
Total Non-U.S.	379		292		734		579
Total MIS	1,015		747		2,002		1,480
Total MCO	$	1,817	$	1,494	$	3,603	$	2,964

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


	Three Months Ended June 30,
	2024									2023
	Transaction			Recurring			Total			Transaction			Recurring			Total
Decision Solutions	$	35		$	331		$	366		$	43		$	291		$	334
	10		%	90		%	100		%	13		%	87		%	100		%
Research and Insights	$	3		$	223		$	226		$	3		$	214		$	217
	1		%	99		%	100		%	1		%	99		%	100		%
Data and Information	$	1		$	209		$	210		$	1		$	195		$	196
	—		%	100		%	100		%	1		%	99		%	100		%
Total MA (1)	$	39		$	763		$	802		$	47		$	700		$	747
	5		%	95		%	100		%	6		%	94		%	100		%
Corporate Finance	$	388		$	137		$	525		$	236		$	129		$	365
	74		%	26		%	100		%	65		%	35		%	100		%
Structured Finance	$	76		$	55		$	131		$	48		$	54		$	102
	58		%	42		%	100		%	47		%	53		%	100		%
Financial Institutions	$	115		$	80		$	195		$	73		$	72		$	145
	59		%	41		%	100		%	50		%	50		%	100		%
Public, Project and Infrastructure Finance	$	110		$	44		$	154		$	84		$	43		$	127
	71		%	29		%	100		%	66		%	34		%	100		%
MIS Other	$	3		$	7		$	10		$	2		$	6		$	8
	30		%	70		%	100		%	25		%	75		%	100		%
Total MIS	$	692		$	323		$	1,015		$	443		$	304		$	747
	68		%	32		%	100		%	59		%	41		%	100		%
Total Moody's Corporation	$	731		$	1,086		$	1,817		$	490		$	1,004		$	1,494
	40		%	60		%	100		%	33		%	67		%	100		%



	Six Months Ended June 30,
	2024									2023
	Transaction			Recurring			Total			Transaction			Recurring			Total
Decision Solutions	$	72		$	659		$	731		$	83		$	585		$	668
	10		%	90		%	100		%	12		%	88		%	100		%
Research and Insights	$	7		$	441		$	448		$	8		$	424		$	432
	2		%	98		%	100		%	2		%	98		%	100		%
Data and Information	$	2		$	420		$	422		$	1		$	383		$	384
	—		%	100		%	100		%	—		%	100		%	100		%
Total MA (1)	$	81		$	1,520		$	1,601		$	92		$	1,392		$	1,484
	5		%	95		%	100		%	6		%	94		%	100		%
Corporate Finance	$	787		$	267		$	1,054		$	466		$	255		$	721
	75		%	25		%	100		%	65		%	35		%	100		%
Structured Finance	$	135		$	110		$	245		$	94		$	107		$	201
	55		%	45		%	100		%	47		%	53		%	100		%
Financial Institutions	$	237		$	153		$	390		$	143		$	144		$	287
	61		%	39		%	100		%	50		%	50		%	100		%
Public, Project and Infrastructure Finance	$	206		$	89		$	295		$	169		$	87		$	256
	70		%	30		%	100		%	66		%	34		%	100		%
MIS Other	$	4		$	14		$	18		$	3		$	12		$	15
	22		%	78		%	100		%	20		%	80		%	100		%
Total MIS	$	1,369		$	633		$	2,002		$	875		$	605		$	1,480
	68		%	32		%	100		%	59		%	41		%	100		%
Total Moody's Corporation	$	1,450		$	2,153		$	3,603		$	967		$	1,997		$	2,964
	40		%	60		%	100		%	33		%	67		%	100		%

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

The following table presents the timing of revenue recognition:


	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
	MA		MIS		Total		MA		MIS		Total
Revenue recognized at a point in time	$	18	$	692	$	710	$	39	$	1,369	$	1,408
Revenue recognized over time	784		323		1,107		1,562		633		2,195
Total	$	802	$	1,015	$	1,817	$	1,601	$	2,002	$	3,603



	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	MA		MIS		Total		MA		MIS		Total
Revenue recognized at a point in time	$	22	$	443	$	465	$	49	$	875	$	924
Revenue recognized over time	725		304		1,029		1,435		605		2,040
Total	$	747	$	747	$	1,494	$	1,484	$	1,480	$	2,964

Unbilled receivables, deferred revenue and remaining performance obligations

Unbilled receivables

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. In addition, 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.

The following table presents the Company's unbilled receivables, which are included within accounts receivable, net, at June 30, 2024 and December 31, 2023:


	As of June 30, 2024				As of December 31, 2023
	MA		MIS		MA		MIS
Unbilled Receivables	$	139	$	466	$	119	$	415

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, 2024 and 2023 are as follows:



	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
	MA		MIS		Total		MA		MIS		Total
Balance at March 31,	$	1,312	$	361	$	1,673	$	1,288	$	360	$	1,648
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(529)		(117)		(646)		(592)		(116)		(708)
Increases due to amounts billable excluding amounts recognized as revenue during the period	365		93		458		417		91		508

Effect of exchange rate changes	(2)		(1)		(3)		3		1		4
Total changes in deferred revenue	(166)		(25)		(191)		(172)		(24)		(196)
Balance at June 30,	$	1,146	$	336	$	1,482	$	1,116	$	336	$	1,452



	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
	MA		MIS		Total		MA		MIS		Total
Balance at December 31,	$	1,111	$	270	$	1,381	$	1,055	$	278	$	1,333
Changes in deferred revenue
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(752)		(155)		(907)		(788)		(160)		(948)
Increases due to amounts billable excluding amounts recognized as revenue during the period	803		224		1,027		830		216		1,046

Effect of exchange rate changes	(16)		(3)		(19)		19		2		21
Total changes in deferred revenue	35		66		101		61		58		119
Balance at June 30,	$	1,146	$	336	$	1,482	$	1,116	$	336	$	1,452
Deferred revenue - current	$	1,145	$	278	$	1,423	$	1,115	$	270	$	1,385
Deferred revenue - non-current	$	1	$	58	$	59	$	1	$	66	$	67

For the MA segment, the decrease in deferred revenue for the three months ended June 30, 2024 and 2023 was primarily due to the recognition of annual subscription and maintenance billings from December and January. For the six months ended June 30, 2024 and 2023, the increase in deferred revenue is primarily attributable to the high concentration of billings in the first quarter.

For the MIS segment, the change in the deferred revenue balance for all periods presented was primarily related to the significant portion of contract renewals that occur during the first quarter and are generally recognized over a one year period.

Remaining performance obligations

Remaining performance obligations in the MA segment include both amounts recorded as deferred revenue on the balance sheet as of June 30, 2024 as well as amounts not yet invoiced to customers as of June 30, 2024, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products. As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $3.6 billion. The Company expects to recognize into revenue approximately 60% of this balance within one year, approximately 25% of this balance between one to two years and the remaining amount thereafter.

Remaining performance obligations in the MIS segment 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. As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $91 million. The Company expects to recognize into revenue approximately 25% of this balance within one year, approximately 50% of this balance between one to five years and the remaining amount thereafter. 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 of unsatisfied performance obligations relating to contracts with an original expected length of one year or less.

NOTE 3. 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,
	2024		2023		2024		2023
Stock-based compensation cost	$	56	$	50	$	109	$	97
Tax benefit	$	12	$	12	$	24	$	22

During the first half of 2024, the Company granted 0.2 million employee stock options, which had a weighted average grant date fair value of $120.42 per share. The Company also granted 0.5 million shares of restricted stock in the first half of 2024, which had a weighted average grant date fair value of $372.33 per share. Both the employee stock options and restricted stock generally vest ratably over four years. Additionally, the Company granted 0.2 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 period of two to four years. The weighted average grant date fair value of these awards was $361.83 per share.

The following weighted average assumptions were used in determining the fair value using the Black-Scholes option-pricing model for options granted in 2024:


Expected dividend yield	0.91	%
Expected stock volatility	28	%
Risk-free interest rate	4.34	%
Expected holding period	5.9 years

Unrecognized stock-based compensation expense at June 30, 2024 was $21 million and $328 million for unvested stock options and restricted stock, respectively, which is expected to be recognized over a weighted average period of 1.9 years and 2.7 years, respectively. Additionally, there was $66 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 2.5 years.

The following table summarizes information relating to stock option exercises and restricted stock vesting:


	Six Months Ended June 30,
	2024		2023
Exercise of stock options:
Proceeds from stock option exercises	$	34	$	21
Aggregate intrinsic value	$	43	$	44
Tax benefit realized upon exercise	$	7	$	10
Number of shares exercised	0.2		0.2
Vesting of restricted stock:
Fair value of shares vested	$	176	$	147
Tax benefit realized upon vesting	$	43	$	34
Number of shares vested	0.5		0.5
Vesting of performance-based restricted stock:
Fair value of shares vested	$	40	$	24
Tax benefit realized upon vesting	$	9	$	3
Number of shares vested	0.1		0.1

NOTE 4. INCOME TAXES

Moody’s ETR was 23.1% and 23.4% for the three months ended June 30, 2024 and 2023, respectively. Moody’s ETR for the six months ended June 30, 2024 and 2023 was 23.2% and 12.0%, respectively. The increase in the ETR for the six months ended June 30, 2024 compared to the same period in the prior year was primarily due to tax benefits recognized in the first quarter of 2023, which reflect the resolution of uncertain tax positions in various U.S. and non-U.S. tax jurisdictions and will not recur in 2024. The Company’s year-to-date provision for income taxes differs from the tax computed by applying its estimated annual ETR to the pre-tax earnings primarily due to the excess tax benefits from stock-based compensation of $19 million.

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 income, net. The Company had a net increase in its UTP reserves of $5 million, net of federal tax, during the second quarter of 2024 and an increase in its UTPs of $11 million, net of federal tax, during the first six months of 2024.

Moody’s is 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 2019 through 2020 are currently under examination and 2021 through 2022 remain open to examination. The Company’s New York City tax returns for 2018 through 2022 are currently under examination. The Company’s U.K. tax returns for 2017 through 2022 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 such 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 will 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 unable to estimate the amount of future 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 ASC Topic 740 regarding UTPs.

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


	Six Months Ended June 30,
	2024		2023
Income taxes paid	$	276	$	122

Effective in 2024, multiple foreign jurisdictions in which the Company operates have enacted legislation to adopt a minimum tax rate described in the Global Anti-Base Erosion tax model rules (referred to as GloBE or Pillar II) issued by the OECD. A minimum ETR of 15% applies to multinational companies with consolidated revenue above €750 million. Under the GloBE rules, a company is required to determine a combined ETR for all entities located in a jurisdiction. If the jurisdictional effective tax rate is less than 15%, an additional tax generally will be due to bring the jurisdictional ETR up to 15%. We have evaluated the impact of the Pillar II global minimum tax rules on our consolidated financial statements and related disclosures. As of June 30, 2024, the Pillar II minimum tax requirement is not expected to have a material impact upon our full-year results of operations or financial position.

NOTE 5. RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING

Below is a reconciliation of basic to diluted shares outstanding:


	Three Months Ended June 30,		Six Months Ended June 30,

	2024	2023	2024	2023
Basic	182.3	183.5	182.5	183.4
Dilutive effect of shares issuable under stock-based compensation plans	0.7	0.6	0.7	0.7
Diluted	183.0	184.1	183.2	184.1
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above	0.4	0.4	0.4	0.5

The calculation of basic shares outstanding is based on the weighted average number of shares of common stock outstanding during the reporting period. 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, 2024 and 2023.

NOTE 6. CASH EQUIVALENTS AND INVESTMENTS

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


	As of June 30, 2024
							Balance sheet location
	Cost		Gains/(Losses)		Fair Value		Cash and cash equivalents		Short-term investments		Other assets
Certificates of deposit and money market deposit accounts/funds (1)	$	1,597	$	—	$	1,597	$	1,533	$	63	$	1
Mutual funds	$	97	$	10	$	107	$	—	$	—	$	107


	As of December 31, 2023
							Balance sheet location
	Cost		Gains/(Losses)		Fair Value		Cash and cash equivalents		Short-term investments		Other assets

Certificates of deposit and money market deposit accounts/funds (1)	$	1,178	$	—	$	1,178	$	1,112	$	63	$	3
Mutual funds	$	91	$	6	$	97	$	—	$	—	$	97

(1) Consists of time deposits, money market deposit accounts and money market funds. The remaining contractual maturities for the certificates of deposits classified as short-term investments are one month to 12 months at both June 30, 2024 and December 31, 2023. The remaining contractual maturities for the certificates of deposits classified in other assets are 14 months at both June 30, 2024 and December 31, 2023. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.

In addition, the Company invested in COLI. As of June 30, 2024 and December 31, 2023, the contract value of the COLI was $48 million and $47 million, respectively.

NOTE 7. 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 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:

Fair Value 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 SOFR. 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 statements of operations.

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


		Notional Amount
Hedged Item	Nature of Swap	As of June 30, 2024		As of December 31, 2023		Floating Interest Rate
2017 Senior Notes due 2028	Pay Floating/Receive Fixed	$	500	$	500	SOFR
2020 Senior Notes due 2025	Pay Floating/Receive Fixed	300		300		SOFR
2014 Senior Notes due 2044	Pay Floating/Receive Fixed	300		300		SOFR
2018 Senior Notes due 2048	Pay Floating/Receive Fixed	300		300		SOFR
2018 Senior Notes due 2029	Pay Floating/Receive Fixed	400		400		SOFR
2022 Senior Notes due 2052	Pay Floating/Receive Fixed	500		500		SOFR
2022 Senior Notes due 2032	Pay Floating/Receive Fixed	250		250		SOFR
Total		$	2,550	$	2,550

Refer to Note 13 for information on the cumulative amount of fair value hedging adjustments included in the carrying amount of the above hedged items.

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


Total amounts of financial statement line item presented in the statements of operations in which the effects of fair value hedges are recorded				Amount of income/(loss) recognized in the consolidated statements of operations
	Three Months Ended June 30,					Six Months Ended June 30,
	2024		2023			2024			2023
Interest expense, net				$	(63)		$	(71)		$	(125)	$	(119)

Description		Location on Consolidated Statements of Operations
Net interest settlements and accruals on interest rate swaps		Interest expense, net		$	(24)		$	(21)		$	(49)	$	(39)
Fair value changes on interest rate swaps		Interest expense, net		$	7		$	(46)		$	(22)	$	—
Fair value changes on hedged debt		Interest expense, net		$	(7)		$	46		$	22	$	—

Net investment hedges

Debt designated as net investment hedges

The Company has designated €500 million of the 2015 Senior Notes Due 2027 and €750 million of the 2019 Senior Notes due 2030 as net investment hedges 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. These hedges are designated as accounting hedges under the applicable sections of ASC Topic 815 and will end upon the repayment of the notes in 2027 and 2030, respectively, unless terminated early at the discretion of the Company.

Cross currency swaps designated as net investment hedges

The Company enters into cross-currency swaps 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. The following tables provide information on the cross-currency swaps designated as net investment hedges under ASC Topic 815:


June 30, 2024
	Pay			Receive
Nature of Swap	Notional Amount		Weighted Average Interest Rate	Notional Amount		Weighted Average Interest Rate
Pay Fixed/Receive Fixed	€	965	2.91%	$	1,014	4.41%
Pay Floating/Receive Floating	2,138		Based on ESTR	2,250		Based on SOFR
Total	€	3,103		$	3,264


December 31, 2023
	Pay			Receive
Nature of Swap	Notional Amount		Weighted Average Interest Rate	Notional Amount		Weighted Average Interest Rate
Pay Fixed/Receive Fixed	€	765	3.67%	$	800	5.25%
Pay Floating/Receive Floating	2,138		Based on ESTR	2,250		Based on SOFR
Total	€	2,903		$	3,050

As of June 30, 2024 these hedges will expire and the notional amounts will be settled as follows unless terminated early at the discretion of the Company:


Years Ending December 31,	Notional Amount (Pay)		Notional Amount (Receive)
2026	€	450	$	500
2027	531		550
2028	588		600
2029	573		614
2031	481		500
2032	480		500
Total	€	3,103	$	3,264

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


Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships		Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax						Amount of Loss Reclassified from AOCL into Income, net of Tax						Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
	Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,
	2024			2023			2024			2023			2024			2023

Cross currency swaps		$	24		$	(24)		$	—		$	—		$	11		$	14
Long-term debt		8			(4)			—			—			—			—
Total net investment hedges		$	32		$	(28)		$	—		$	—		$	11		$	14
Derivatives in Cash Flow Hedging Relationships
Cross currency swap		$	—		$	—		$	—		$	1		$	—		$	—
Interest rate contracts		—			—			—			—			—			—
Total cash flow hedges		$	—		$	—		$	—		$	1		$	—		$	—
Total		$	32		$	(28)		$	—		$	1		$	11		$	14


Derivative and Non-Derivative Instruments in Net Investment Hedging Relationships		Amount of Gain/(Loss) Recognized in AOCL on Derivative, net of Tax					Amount of Loss Reclassified from AOCL into Income, net of Tax					Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
	Six Months Ended June 30,					Six Months Ended June 30,					Six Months Ended June 30,
		2024		2023			2024		2023			2024		2023

Cross currency swaps		$	75	$	(63)		$	—	$	—		$	22	$	30
Long-term debt		31		(22)			—		—			—		—
Total net investment hedges		$	106	$	(85)		$	—	$	—		$	22	$	30
Derivatives in Cash Flow Hedging Relationships
Cross currency swaps		$	—	$	—		$	—	$	1		$	—	$	—
Interest rate contracts		—		—			(1)		(1)			—		—
Total cash flow hedges		$	—	$	—		$	(1)	$	—		$	—	$	—
Total		$	106	$	(85)		$	(1)	$	—		$	22	$	30

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


	Cumulative Gains/(Losses), net of tax
	June 30, 2024		December 31, 2023
Net investment hedges
Cross currency swaps	$	96	$	21
FX forwards	29		29
Long-term debt	34		3
Total net investment hedges	$	159	$	53
Cash flow hedges
Interest rate contracts	$	(44)	$	(45)
Cross currency swaps	1		1
Total cash flow hedges	(43)		(44)
Total net gain in AOCL	$	116	$	9

Derivatives not designated as accounting hedges:

Foreign exchange forwards

The Company also enters into foreign exchange forward contracts 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 ASC Topic 815. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating 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 October 2024.

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


	June 30, 2024				December 31, 2023
Notional amount of currency pair(1):	Sell		Buy		Sell		Buy
Contracts to sell USD for GBP	$	544	£	428	$	513	£	407
Contracts to sell USD for JPY	$	25	¥	4,000	$	14	¥	2,000
Contracts to sell USD for CAD	$	48	C$	65	$	147	C$	200
Contracts to sell USD for SGD	$	82	S$	110	$	50	S$	67
Contracts to sell USD for EUR	$	—	€	—	$	60	€	55

Contracts to sell USD for INR	$	23	₹	1,900	$	23	₹	1,900


Contracts to sell USD for AUD	$	—	A$	—	$	5	A$	8
Contracts to sell CAD for USD	C$	—	$	—	C$	25	$	19


(1) € = euro, £ = British pound, S$ = Singapore dollar, $ = U.S. dollar, ¥ = Japanese yen, C$ = Canadian dollar, ₹= Indian Rupee, A$ = Australian dollar

Total Return Swaps

The Company has entered into total return swaps to mitigate market-driven changes in the value of certain liabilities associated with the Company's deferred compensation plans. The fair value of these swaps at June 30, 2024 and related gains in the three and six months ended June 30, 2024 were not material. The notional amount of the total return swaps as of June 30, 2024 and December 31, 2023 was $62 million and $58 million, respectively.

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


Derivatives not designated as accounting hedges	Location on Consolidated Statements of Operations		Three Months Ended June 30,				Six Months Ended June 30,
		2024	2023		2024		2023
FX forwards	Other non-operating income, net		$	(5)	$	10	$	(18)	$	15
Total return swaps	Operating expense		$	1	$	—	$	4	$	—
Total return swaps	SG&A expense		$	—	$	—	$	1	$	—

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, 2024		December 31, 2023
Assets:
Derivatives designated as accounting hedges:

Cross-currency swaps designated as net investment hedges	Other assets	$	18	$	3



Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Other current assets	—		13

Total assets		$	18	$	16
Liabilities:
Derivatives designated as accounting hedges:

Interest rate swaps designated as fair value hedges	Accounts payable and accrued liabilities	$	11	$	—
Cross-currency swaps designated as net investment hedges	Other liabilities	97		183
Interest rate swaps designated as fair value hedges	Other liabilities	194		183
Total derivatives designated as accounting hedges		302		366
Non-derivatives designated as accounting hedges:
Long-term debt designated as net investment hedge	Long-term debt	1,339		1,381
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Accounts payable and accrued liabilities	5		—
Total liabilities		$	1,646	$	1,747

NOTE 8. GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

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


	Six Months Ended June 30, 2024
	MA						MIS						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	$	5,681	$	(12)	$	5,669	$	287	$	—	$	287	$	5,968	$	(12)	$	5,956
Additions/ adjustments (1)	14		—		14		2		—		2		16		—		16
Foreign currency translation adjustments	(79)		—		(79)		(2)		—		(2)		(81)		—		(81)

Ending balance	$	5,616	$	(12)	$	5,604	$	287	$	—	$	287	$	5,903	$	(12)	$	5,891


	Year Ended December 31, 2023
	MA						MIS						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	$	5,474	$	(12)	$	5,462	$	377	$	—	$	377	$	5,851	$	(12)	$	5,839
Additions/ adjustments (2)	90		—		90		(87)		—		(87)		3		—		3
Foreign currency translation adjustments	117		—		117		(3)		—		(3)		114		—		114

Ending balance	$	5,681	$	(12)	$	5,669	$	287	$	—	$	287	$	5,968	$	(12)	$	5,956

(1) The 2024 additions/adjustments primarily relate to certain immaterial acquisitions which were completed in the first quarter of 2024.

(2) The 2023 additions/adjustments primarily relate to a reallocation of goodwill pursuant to a realignment of certain components of the Company's ESG business in the first quarter of 2023.

Acquired intangible assets and related amortization consisted of:


	June 30, 2024		December 31, 2023
Customer relationships	$	2,038	$	2,065
Accumulated amortization	(594)		(556)
Net customer relationships	1,444		1,509
Software/product technology	665		674
Accumulated amortization	(392)		(364)
Net software/product technology	273		310
Database	178		179
Accumulated amortization	(90)		(82)
Net database	88		97
Trade names	197		199
Accumulated amortization	(78)		(72)
Net trade names	119		127
Other (1)	52		52
Accumulated amortization	(46)		(46)
Net other	6		6
Total acquired intangible assets, net	$	1,930	$	2,049

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

Amortization expense relating to acquired intangible assets is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Amortization expense	$	48	$	50	$	97	$	101

NOTE 9. RESTRUCTURING

On June 30, 2022, the chief executive officer of Moody’s approved the 2022 - 2023 Geolocation Restructuring Program. The Company estimates that the program will result in annualized savings of $145 million to $165 million per year. This program related to the Company's post-COVID-19 geolocation strategy and other strategic initiatives and included the rationalization and exit of certain leased office spaces and a reduction in staff, including the relocation of certain job functions. Cumulative charges related to this program are shown in the table below. The savings generated from the 2022 - 2023 Geolocation Restructuring Program are expected to strengthen the Company's operating margin, with a portion being deployed to support strategic investments, including the Company's workplace of the future program and employee retention initiatives. The 2022 - 2023 Geolocation Restructuring Program was substantially completed at the end of 2023. Cash outlays associated with this program, which primarily relate to personnel-related costs, are expected to be $130 million to $140 million, substantially all of which are expected to be paid by the end of 2024.

Total expense included in the accompanying consolidated statements of operations relating to the aforementioned restructuring program is below:


2022 - 2023 Geolocation Restructuring Program	Three months ended June 30,						Six months ended June 30,					Cumulative expense incurred
2024			2023			2024			2023
Employee Termination Costs	$	2		$	9		$	7		$	22	$	143
Real Estate Related Costs	—			1			—			2		63
Other Costs	—			—			—			—		1
Total Restructuring	$	2		$	10		$	7		$	24	$	207

Changes to the restructuring liability during the first half of 2024 were as follows:



Balance as of December 31, 2023	$	36









2022 - 2023 Geolocation Restructuring Program:
Cost incurred and adjustments	7
Cash payments	(29)
Balance as of June 30, 2024	$	14

The restructuring liability is primarily comprised of employee termination costs, with an immaterial amount of real estate-related and other costs. As of June 30, 2024, substantially all of the remaining $14 million restructuring liability is expected to be paid out in 2024.

NOTE 10. FAIR VALUE

The tables below present information about items that are carried at fair value at June 30, 2024 and December 31, 2023:


	Fair Value Measurement as of June 30, 2024
Description	Balance		Level 1		Level 2
Assets:
Derivatives (1)	$	18	$	—	$	18
Money market funds/mutual funds	117		117		—
Total	$	135	$	117	$	18
Liabilities:
Derivatives (1)	$	307	$	—	$	307
Total	$	307	$	—	$	307


	Fair Value Measurement as of December 31, 2023
Description	Balance		Level 1		Level 2
Assets:
Derivatives (1)	$	16	$	—	$	16
Money market funds/mutual funds	107		107		—
Total	$	123	$	107	$	16
Liabilities:
Derivatives (1)	$	366	$	—	$	366
Total	$	366	$	—	$	366

(1) Represents fair value of certain derivative contracts as more fully described in Note 7 to the consolidated financial statements.

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

Money market funds and mutual funds:

The 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 Topic 820.

NOTE 11. OTHER BALANCE SHEET AND STATEMENTS OF OPERATIONS INFORMATION

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


	June 30, 2024		December 31, 2023
Other current assets:
Prepaid taxes	$	83	$	115
Prepaid expenses	162		133
Capitalized costs to obtain and fulfill sales contracts	119		116
Foreign exchange forwards on certain assets and liabilities	—		13

Interest receivable on interest rate and cross currency swaps	79		79
Other	46		33
Total other current assets	$	489	$	489

Other assets:
Investments in non-consolidated affiliates	$	523	$	521
Deposits for real-estate leases	15		16
Indemnification assets related to acquisitions	115		111
Mutual funds, certificates of deposit and money market deposit accounts/funds	108		100
Company owned life insurance (at contract value)	48		47
Capitalized costs to obtain sales contracts	198		196
Derivative instruments designated as accounting hedges	18		3
Pension and other retirement employee benefits	40		41
Other	85		103
Total other assets	$	1,150	$	1,138

Accounts payable and accrued liabilities:
Salaries and benefits	$	140	$	130
Incentive compensation	196		345
Customer credits, advanced payments and advanced billings	137		105

Dividends	6		7
Professional service fees	77		46
Interest accrued on debt	74		83
Accounts payable	57		23
Income taxes	104		108
Pension and other retirement employee benefits	15		15
Accrued royalties	20		24
Foreign exchange forwards on certain assets and liabilities	5		—
Restructuring liability	14		35

Derivative instruments designated as accounting hedges	11		—
Interest payable on interest rate and cross currency swaps	66		67
Other	78		88
Total accounts payable and accrued liabilities	$	1,000	$	1,076






































	June 30, 2024		December 31, 2023
Other liabilities:
Pension and other retirement employee benefits	$	191	$	190

Interest accrued on UTPs	42		36
MAKS indemnification provisions	19		19
Income tax liability - non-current portion	12		15
Derivative instruments designated as accounting hedges	291		366

Other	63		50
Total other liabilities	$	618	$	676

Investments in non-consolidated affiliates:

The following table provides additional detail regarding Moody's investments in non-consolidated affiliates, as included in other assets in the consolidated balance sheets:


	June 30, 2024		December 31, 2023
Equity method investments (1)	$	187	$	186
Investments measured using the measurement alternative (2)	327		327
Other	9		8
Total investments in non-consolidated affiliates	$	523	$	521
(1) Equity securities in which the Company has significant influence over the investee but does not have a controlling financial interest in accordance with ASC Topic 323.
(2) Equity securities without readily determinable fair value for which the Company has elected to apply the measurement alternative in accordance with ASC Topic 321.

Moody's holds various investments accounted for under the equity method, the most significant of which is the Company's minority investment in CCXI. Moody's also holds various investments measured using the measurement alternative, the most significant of which is the Company's minority interest in BitSight.

Earnings from non-consolidated affiliates, which are included within other non-operating income, net, are disclosed within the table below.

Other non-operating income, net:

The following table summarizes the components of other non-operating income, net:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
FX loss (1)	$	(4)	$	(5)	$	(7)	$	(31)
Net periodic pension income - non-service and non-interest cost components	8		9		16		18
Income from investments in non-consolidated affiliates	2		1		2		3
Gain on investments	5		5		8		11
Other (2)	(4)		3		1		12
Total	$	7	$	13	$	20	$	13

(1) The amount for the six months ended June 30, 2023 includes a $23 million loss recorded pursuant to an immaterial out-of-period adjustment relating to the 2022 fiscal year.

(2) The amount for the six months ended June 30, 2023 reflects a benefit of $9 million related to the favorable resolutions of various tax matters.

Charges related to asset abandonment:

Costs of $15 million recorded in the second quarter of 2024 relate to severance incurred pursuant to a reduction in staff due to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings. Additionally, the Company has reduced the estimated useful lives of certain internally developed software and amortizable intangible assets that are associated with the sustainability content offerings for which production is being outsourced. The Company expects to incur approximately $30 million in incremental amortization expense related to the change in estimated useful lives of these assets in the second half of 2024.

NOTE 12. COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables show changes in AOCL by component (net of tax):



	Three Months Ended June 30,
	2024										2023
Gains/(Losses)	Pension and Other Retirement Benefits		Cash Flow Hedges		Foreign Currency Translation Adjustments		Net Investment Hedges		Total		Pension and Other Retirement Benefits		Cash Flow Hedges		Foreign Currency Translation Adjustments		Net Investment Hedges		Total
Balance at March 31,	$	(57)	$	(43)	$	(635)	$	127	$	(608)	$	(47)	$	(44)	$	(626)	$	128	$	(589)
Other comprehensive income/(loss) before reclassifications	(1)		—		(39)		32		(8)		—		—		49		(28)		21
Amounts reclassified from AOCL	(1)		—		—		—		(1)		(1)		(1)		—		—		(2)
Other comprehensive income/(loss)	(2)		—		(39)		32		(9)		(1)		(1)		49		(28)		19
Balance at June 30,	$	(59)	$	(43)	$	(674)	$	159	$	(617)	$	(48)	$	(45)	$	(577)	$	100	$	(570)


	Six Months Ended June 30,
	2024										2023
Gains/(Losses)	Pension and Other Retirement Benefits		Cash Flow Hedges		Foreign Currency Translation Adjustments		Net Investment Hedges		Total		Pension and Other Retirement Benefits		Cash Flow Hedges		Foreign Currency Translation Adjustments		Net Investment Hedges		Total
Balance at December 31,	$	(56)	$	(44)	$	(520)	$	53	$	(567)	$	(47)	$	(45)	$	(736)	$	185	$	(643)
Other comprehensive (loss)/income before reclassifications	(2)		—		(154)		106		(50)		—		—		159		(85)		74
Amounts reclassified from AOCL	(1)		1		—		—		—		(1)		—		—		—		(1)

Other comprehensive (loss)/income	(3)		1		(154)		106		(50)		(1)		—		159		(85)		73
Balance at June 30,	$	(59)	$	(43)	$	(674)	$	159	$	(617)	$	(48)	$	(45)	$	(577)	$	100	$	(570)

NOTE 13. INDEBTEDNESS

The Company’s debt is recorded at its carrying value, which represents the issuance amount plus or minus any issuance premium or discount, except for certain debt as depicted in the table below, which is recorded at the carrying value adjusted for the fair value of an interest rate swap used to hedge the fair value of the note.

The following table summarizes total indebtedness:


June 30, 2024
Notes Payable:	Principal Amount		Fair Value of Interest Rate Swaps (1)		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
5.25% 2014 Senior Notes, due 2044	$	600	$	(37)	$	3	$	(4)	$	562
1.75% 2015 Senior Notes, due 2027	536		—		—		(1)		535

3.25% 2017 Senior Notes, due 2028	500		(25)		(2)		(1)		472
4.25% 2018 Senior Notes, due 2029	400		(39)		(1)		(2)		358
4.875% 2018 Senior Notes, due 2048	400		(39)		(6)		(3)		352
0.950% 2019 Senior Notes, due 2030	803		—		(2)		(3)		798
3.75% 2020 Senior Notes, due 2025	700		(11)		—		(1)		688
3.25% 2020 Senior Notes, due 2050	300		—		(4)		(3)		293
2.55% 2020 Senior Notes, due 2060	300		—		(2)		(3)		295
2.00% 2021 Senior Notes, due 2031	600		—		(6)		(4)		590
2.75% 2021 Senior Notes, due 2041	600		—		(12)		(5)		583
3.10% 2021 Senior Notes, due 2061	500		—		(7)		(5)		488
3.75% 2022 Senior Notes, due 2052	500		(42)		(8)		(5)		445
4.25% 2022 Senior Notes, due 2032	500		(12)		(2)		(4)		482
Total debt	$	7,239	$	(205)	$	(49)	$	(44)	$	6,941
Current portion									(688)
Total long-term debt									$	6,253


December 31, 2023
Notes Payable:	Principal Amount		Fair Value of Interest Rate Swaps (1)		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
5.25% 2014 Senior Notes, due 2044	$	600	$	(34)	$	3	$	(4)	$	565
1.75% 2015 Senior Notes, due 2027	552		—		—		(1)		551

3.25% 2017 Senior Notes, due 2028	500		(26)		(2)		(2)		470
4.25% 2018 Senior Notes, due 2029	400		(34)		(2)		(2)		362
4.875% 2018 Senior Notes, due 2048	400		(36)		(6)		(3)		355
0.950% 2019 Senior Notes, due 2030	829		—		(2)		(4)		823
3.75% 2020 Senior Notes, due 2025	700		(16)		(1)		(1)		682
3.25% 2020 Senior Notes, due 2050	300		—		(4)		(3)		293
2.55% 2020 Senior Notes, due 2060	300		—		(2)		(3)		295
2.00% 2021 Senior Notes, due 2031	600		—		(6)		(4)		590
2.75% 2021 Senior Notes, due 2041	600		—		(12)		(5)		583
3.10% 2021 Senior Notes, due 2061	500		—		(7)		(5)		488
3.75% 2022 Senior Notes, due 2052	500		(29)		(8)		(5)		458
4.25% 2022 Senior Notes, due 2032	500		(8)		(2)		(4)		486
Total long-term debt	$	7,281	$	(183)	$	(51)	$	(46)	$	7,001

(1) The fair value of interest rate swaps in the tables above represents the cumulative amount of fair value hedging adjustments included in the carrying value of the hedged debt.

Credit Facility

On May 6, 2024, the Company entered into a five-year senior, unsecured revolving credit facility with the capacity to borrow up to $1.25 billion, which expires in May 2029. The 2024 Credit Facility replaces the Company's $1.25 billion 2021 Credit Facility that was scheduled to mature in December 2026. Further information on the key terms of these revolving credit facilities is below:


					June 30, 2024				December 31, 2023
	Issue Date	Capacity		Maturity	Drawn		Undrawn		Drawn		Undrawn
2021 Credit Facility	December 17, 2021	$	1,250	December 17, 2026 (Terminated in 2024)	$	—	$	—	$	—	$	1,250
2024 Credit Facility	May 6, 2024	$	1,250	May 6, 2029	$	—	$	1,250	$	—	$	—

Interest on borrowings under the 2024 Credit Facility is payable at rates that are based on an adjusted term SOFR Rate plus a premium that can range from 80.5 BPS to 122.5 BPS, depending on the Company’s index debt ratings, as set forth in the 2024 Credit Facility. The Company also has the option to choose other rates, such as those based on adjusted Daily Simple SOFR or an alternate base rate, as set forth in the 2024 Credit Facility. Regardless of borrowing activity under the 2024 Credit Facility, the Company pays quarterly fees for the 2024 Credit Facility that can range from 7 BPS of the 2024 Credit Facility amount to 15 BPS, depending on the Company’s index debt ratings. The 2024 Credit Facility contains certain customary covenants and also contains a financial covenant that requires the Company to maintain a total debt to EBITDA Ratio of (i) not more than 4 to 1 at the end of any fiscal quarter or (ii) not more than 4.5 to 1 as of the end of the first three consecutive quarters immediately following any acquisition with consideration in excess of $500 million, subject to certain conditions as set forth in the 2024 Credit Facility.

Notes Payable

At June 30, 2024, the Company was in compliance with all covenants contained within all of the debt agreements. All of 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, 2024, there were no such cross defaults.

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


Year Ending December 31,	Year Ending Total
2024 (After June 30,)	$	—
2025	700
2026	—
2027	536
2028	500
Thereafter	5,503
Total	$	7,239

Interest expense, net

The following table summarizes the components of interest as presented in the consolidated statements of operations and the cash paid for interest:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Income	$	23	$	15	$	45	$	25
Expense on borrowings(1)	(74)		(75)		(148)		(145)
(Expense) income on UTPs and other tax related liabilities(2)	(5)		(4)		(9)		14
Net periodic pension costs - interest component	(7)		(7)		(13)		(13)
Interest expense, net	$	(63)	$	(71)	$	(125)	$	(119)
Interest paid(3)	$	51	$	47	$	151	$	143

(1) Expense on borrowings includes interest on long-term debt, as well as realized gains/losses related to interest rate swaps and cross currency swaps, which are more fully discussed in Note 7.

(2) The amount for the six months ended June 30, 2023 reflects a $22 million reduction of tax-related interest expense primarily related to the resolutions of tax matters.

(3) Interest paid includes net settlements on interest rate swaps, which are more fully discussed in Note 7.

The fair value and carrying value of the Company’s debt as of June 30, 2024 and December 31, 2023 are as follows:


	June 30, 2024				December 31, 2023
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
















Total debt	$	6,941	$	6,121	$	7,001	$	6,402

The fair value of the Company’s debt is estimated based on quoted prices in active markets as of the reporting date, which are considered Level 1 inputs within the fair value hierarchy.

NOTE 14. LEASES

The Company has operating leases, substantially all of which relate to the lease of office space. The Company’s leases which are classified as finance leases are not material to the consolidated financial statements. Certain of the Company’s leases include options to renew, with renewal terms that can extend the lease term from one year to 20 years at the Company’s discretion.

The following table presents the components of the Company’s lease cost:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Operating lease cost	$	21	$	23	$	43	$	47
Sublease income	(2)		(2)		(4)		(4)
Variable lease cost	6		5		11		10
Total lease cost	$	25	$	26	$	50	$	53

The following tables present other information related to the Company’s operating leases:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	29	$	30	$	59	$	60
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1	$	19	$	5	$	24


	June 30, 2024		June 30, 2023
Weighted-average remaining lease term	4.1 years		4.8 years
Weighted-average discount rate applied to operating leases	3.2	%	3.2	%

The following table presents a maturity analysis of the future minimum lease payments included within the Company’s operating lease liabilities at June 30, 2024:


Year Ending December 31,	Operating Leases
2024 (After June 30,)	$	60
2025	108
2026	89
2027	71
2028	20
After 2028	36
Total lease payments (undiscounted)	384
Less: Interest	22
Present value of lease liabilities:	$	362
Lease liabilities - current	$	108
Lease liabilities - noncurrent	$	254

NOTE 15. CONTINGENCIES

Given the nature of the Company's 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. MIS is responding to SEC requests for documents and information in connection with an investigation of MIS’s compliance with record preservation requirements relating to certain business communications sent over electronic messaging channels that have not been approved by MIS. The SEC has been conducting similar investigations of the record preservation practices of other NRSROs and other registrants subject to record preservation requirements. MIS has reached an agreement in principle with the SEC Division of Enforcement to resolve the investigation. The agreement, which remains subject to final SEC approval, includes the payment of a $20 million civil monetary penalty. The Company has accrued that amount in its consolidated financial statements. Moody’s also is subject to ongoing tax audits as addressed in Note 4 to the consolidated 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.

NOTE 16. SEGMENT INFORMATION

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

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. Additionally, revenue for MIS and expenses for MA include intersegment fees charged to MA for the rights to use and distribute content, data and products developed by MIS. These intersegment fees are generally based on the market value of the products and services being transferred between the segments.

Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and legal. Such costs and corporate expenses that exclusively benefit one segment are fully charged to that segment.

For overhead costs and corporate expenses that benefit both segments, costs are allocated to each segment based on the segment’s share of full-year 2018 actual revenue which comprises a “Baseline Pool” established in 2019, which will remain fixed over time. In subsequent periods, incremental overhead costs (or reductions thereof) will be allocated to each segment based on the prevailing shares of total revenue represented by each segment.

“Eliminations” in the following table represent intersegment revenue/expense. Moody’s does not report the Company’s assets by reportable segment, as this metric is not used by the CODM 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 and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s CODM to assess the profitability of each reportable segment. Refer to Note 2 for further details on the components of the Company’s revenue.


	Three Months Ended June 30,
	2024								2023
	MA		MIS		Eliminations		Consolidated		MA		MIS		Eliminations		Consolidated
Total external revenue	$	802	$	1,015	$	—	$	1,817	$	747	$	747	$	—	$	1,494
Intersegment revenue	4		49		(53)		—		4		46		(50)		—
Revenue	806		1,064		(53)		1,817		751		793		(50)		1,494
Operating, SG&A	576		392		(53)		915		541		350		(50)		841
Adjusted Operating Income	$	230	$	672	$	—	$	902	$	210	$	443	$	—	$	653
Add:
Depreciation and amortization	90		20		—		110		74		19		—		93

Restructuring	1		1		—		2		8		2		—		10
Charges related to asset abandonment	15		—		—		15		—		—		—		—


Operating Income							$	775							$	550



	Six Months Ended June 30,
	2024								2023
	MA		MIS		Eliminations		Consolidated		MA		MIS		Eliminations		Consolidated
Total external revenue	$	1,601	$	2,002	$	—	$	3,603	$	1,484	$	1,480	$	—	$	2,964
Intersegment revenue	7		96		(103)		—		7		91		(98)		—
Revenue	1,608		2,098		(103)		3,603		1,491		1,571		(98)		2,964
Operating, SG&A	1,140		758		(103)		1,795		1,067		686		(98)		1,655
Adjusted Operating Income	$	468	$	1,340	$	—	$	1,808	$	424	$	885	$	—	$	1,309
Add:
Depreciation and amortization	172		38		—		210		144		37		—		181
Restructuring	3		4		—		7		16		8		—		24
Charges related to asset abandonment	15		—		—		15		—		—		—		—



Operating Income							$	1,576							$	1,104

The table below shows cumulative restructuring expense incurred through June 30, 2024 by reportable segment.


	MA		MIS		Total



2022 - 2023 Geolocation Restructuring Program	$	111	$	96	$	207

The 2022 - 2023 Geolocation Restructuring Program is more fully discussed in Note 9.

Consolidated Revenue Information by Geographic Area


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
United States	$	974	$	775	$	1,943	$	1,538
Non-U.S.:
EMEA	566		479		1,108		939
Asia-Pacific	164		145		319		294
Americas	113		95		233		193
Total Non-U.S.	843		719		1,660		1,426
Total	$	1,817	$	1,494	$	3,603	$	2,964

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