MOODYS CORP /DE/MCO
MOODYS CORP /DE/ Segments Disclosure
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.
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 - DS, R&I, and D&I.
The MIS segment consists of five LOBs. The CFG, FIG, PPIF and SFG 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, ICRA non-ratings revenue and revenue from providing professional services.
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 generally allocated to each segment based on historical and forecasted current year revenue amounts.
“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 chief operating decision maker to allocate resources to the segments.
Financial Information by Segment
The table below presents revenue, significant expenses regularly provided to the CODM and Adjusted Operating Income by reportable segment. The CODM, identified as the Company's CEO, utilizes the Adjusted Operating Income measure to assess the profitability of the Company and each of its reportable segments each quarter. Adjusted Operating Income is also used in our budgeting and forecasting processes, enabling the allocation of capital resources across the Company's strategic initiatives.
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| MA | MIS | Eliminations | Consolidated | MA | MIS | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||||||
| Total external revenue | $ | 3,599 | $ | 4,119 | $ | — | $ | 7,718 | $ | 3,295 | $ | 3,793 | $ | — | $ | 7,088 | |||||||||||||||||||||||||||||||
| Intersegment revenue | 12 | 198 | (210) | — | 13 | 193 | (206) | — | |||||||||||||||||||||||||||||||||||||||
| Revenue | 3,611 | 4,317 | (210) | 7,718 | 3,308 | 3,986 | (206) | 7,088 | |||||||||||||||||||||||||||||||||||||||
Compensation expense | 1,438 | 1,136 | — | 2,574 | 1,370 | 1,169 | — | 2,539 | |||||||||||||||||||||||||||||||||||||||
Non-compensation expense | 779 | 423 | — | 1,202 | 731 | 410 | — | 1,141 | |||||||||||||||||||||||||||||||||||||||
Intersegment expense | 198 | 12 | (210) | — | 193 | 13 | (206) | — | |||||||||||||||||||||||||||||||||||||||
| Operating, SG&A | 2,415 | 1,571 | (210) | 3,776 | 2,294 | 1,592 | (206) | 3,680 | |||||||||||||||||||||||||||||||||||||||
| Adjusted Operating Income | 1,196 | 2,746 | — | 3,942 | 1,014 | 2,394 | — | 3,408 | |||||||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 393 | 87 | — | 480 | 353 | 78 | — | 431 | |||||||||||||||||||||||||||||||||||||||
| Restructuring | 77 | 31 | — | 108 | 42 | 17 | — | 59 | |||||||||||||||||||||||||||||||||||||||
| Charges related to asset abandonment | 3 | — | — | 3 | 43 | — | — | 43 | |||||||||||||||||||||||||||||||||||||||
| Operating Income | $ | 3,351 | $ | 2,875 | |||||||||||||||||||||||||||||||||||||||||||
Non-operating expense, net | $ | (221) | $ | (176) | |||||||||||||||||||||||||||||||||||||||||||
| Income before provision for income taxes | $ | 3,130 | $ | 2,699 | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| MA | MIS | Eliminations | Consolidated | ||||||||||||||||||||
| Total external revenue | $ | 3,056 | $ | 2,860 | $ | — | $ | 5,916 | |||||||||||||||
| Intersegment revenue | 13 | 186 | (199) | — | |||||||||||||||||||
| Revenue | 3,069 | 3,046 | (199) | 5,916 | |||||||||||||||||||
| Compensation expense | 1,238 | 1,003 | — | 2,241 | |||||||||||||||||||
| Non-compensation expense | 708 | 370 | — | 1,078 | |||||||||||||||||||
| Intersegment expense | 186 | 13 | (199) | — | |||||||||||||||||||
| Operating, SG&A | 2,132 | 1,386 | (199) | 3,319 | |||||||||||||||||||
| Adjusted Operating Income | 937 | 1,660 | — | 2,597 | |||||||||||||||||||
| Add: | |||||||||||||||||||||||
| Depreciation and amortization | 298 | 75 | — | 373 | |||||||||||||||||||
| Restructuring | 59 | 28 | — | 87 | |||||||||||||||||||
| Operating income | $ | 2,137 | |||||||||||||||||||||
Non-operating expense, net | $ | (202) | |||||||||||||||||||||
| Income before provision for income taxes | $ | 1,935 | |||||||||||||||||||||
The table below shows cumulative restructuring expense incurred through December 31, 2025 by reportable segment.
| MA | MIS | Total | |||||||||||||||
| 2022 - 2023 Geolocation Restructuring Program | $ | 116 | $ | 98 | $ | 214 | |||||||||||
Strategic and Operational Efficiency Restructuring Program | $ | 111 | $ | 42 | $ | 153 | |||||||||||
The total costs expected to be incurred related to the Strategic and Operational Efficiency Restructuring Program are $150 million to $165 million for the MA segment and $75 million to $85 million for the MIS segment, which include allocations of charges associated with corporate functions.
The restructuring programs are more fully discussed in Note 9.
CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenue: | |||||||||||||||||
| U.S. | $ | 4,171 | $ | 3,836 | $ | 3,071 | |||||||||||
| Non-U.S.: | |||||||||||||||||
| EMEA | 2,376 | 2,174 | 1,886 | ||||||||||||||
| Asia-Pacific | 699 | 629 | 570 | ||||||||||||||
| Americas | 472 | 449 | 389 | ||||||||||||||
| Total Non-U.S. | 3,547 | 3,252 | 2,845 | ||||||||||||||
| Total | $ | 7,718 | $ | 7,088 | $ | 5,916 | |||||||||||
| Long-lived assets at December 31: | |||||||||||||||||
| U.S. | $ | 4,516 | $ | 4,395 | $ | 4,323 | |||||||||||
| Non-U.S. | 4,722 | 4,361 | 4,562 | ||||||||||||||
| Total | $ | 9,238 | $ | 8,756 | $ | 8,885 | |||||||||||
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.