MOODYS CORP /DE/ Goodwill & Intangibles Disclosure
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | 5,626 | $ | (12) | $ | 5,614 | $ | 380 | $ | — | $ | 380 | $ | 6,006 | $ | (12) | $ | 5,994 | ||||||||||||||||||||||||||||||||||||||
Additions/ adjustments (1) | 135 | — | 135 | 8 | — | 8 | 143 | — | 143 | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | 334 | — | 334 | (5) | — | (5) | 329 | — | 329 | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification to assets held-for-sale (2) | (89) | — | (89) | — | — | — | (89) | — | (89) | |||||||||||||||||||||||||||||||||||||||||||||||
Divestiture of business (3) | (9) | — | (9) | — | — | — | (9) | — | (9) | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending Balance | $ | 5,997 | $ | (12) | $ | 5,985 | $ | 383 | $ | — | $ | 383 | $ | 6,380 | $ | (12) | $ | 6,368 | ||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 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 (4) | 112 | — | 112 | 97 | — | 97 | 209 | — | 209 | ||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | (167) | — | (167) | (4) | — | (4) | (171) | — | (171) | ||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 5,626 | $ | (12) | $ | 5,614 | $ | 380 | $ | — | $ | 380 | $ | 6,006 | $ | (12) | $ | 5,994 | |||||||||||||||||||||||||||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Customer relationships | $ | 2,165 | $ | 2,035 | |||||||
| Accumulated amortization | (724) | (631) | |||||||||
| Net customer relationships | 1,441 | 1,404 | |||||||||
| Software/product technology | 774 | 695 | |||||||||
| Accumulated amortization | (526) | (419) | |||||||||
| Net software/product technology | 248 | 276 | |||||||||
| Database | 164 | 166 | |||||||||
| Accumulated amortization | (103) | (89) | |||||||||
| Net database | 61 | 77 | |||||||||
| Trade names | 201 | 199 | |||||||||
| Accumulated amortization | (96) | (83) | |||||||||
| Net trade names | 105 | 116 | |||||||||
Other (1) | 64 | 67 | |||||||||
| Accumulated amortization | (53) | (50) | |||||||||
| Net other | 11 | 17 | |||||||||
| Total | $ | 1,866 | $ | 1,890 | |||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Amortization expense (1) | $ | 215 | $ | 198 | $ | 198 | |||||||||||
| Year Ending December 31, | ||||||||
| 2026 | $ | 207 | ||||||
| 2027 | 195 | |||||||
| 2028 | 182 | |||||||
| 2029 | 150 | |||||||
| 2030 | 126 | |||||||
| Thereafter | 1,006 | |||||||
| Total estimated future amortization | $ | 1,866 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 25, 2019 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.