MOODYS CORP /DE/, 10-Q filed on 5/9/2017
Quarterly Report
Document and Entity Information
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Document Information [Line Items]
 
Document Type
10-Q 
Amendment Flag
false 
Document Period End Date
Mar. 31, 2017 
Document Fiscal Year Focus
2017 
Document Fiscal Period Focus
Q1 
Trading Symbol
MCO 
Entity Registrant Name
MOODYS CORP /DE/ 
Entity Central Index Key
0001059556 
Current Fiscal Year End Date
--12-31 
Entity Filer Category
Large Accelerated Filer 
Entity Common Stock, Shares Outstanding
191.3 
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Revenues
$ 975.2 
$ 816.1 
Expenses
 
 
Operating
277.4 
249.2 
Selling, general and administrative
221.9 
232.9 
Depreciation and amortization
32.5 
29.9 
Total expenses
531.8 
512.0 
Operating Income
443.4 
304.1 
Non-operating (expense) income, net
 
 
Interest income (expense), net
(42.4)
(34.1)
Other non-operating income (expense), net
(9.4)
5.6 
CCXI gains
59.7 
 
Total non-operating (expense) income, net
7.9 
(28.5)
Income before provisions for income taxes
451.3 
275.6 
Provision for income taxes
105.4 
89.0 
Net income
345.9 
186.6 
Less: Net income attributable to noncontrolling interests
0.3 
2.2 
Net income attributable to Moody's
$ 345.6 
$ 184.4 
Earnings per share attributable to Moody's common shareholders
 
 
Basic
$ 1.81 
$ 0.95 
Diluted
$ 1.78 
$ 0.93 
Weighted average number of shares outstanding
 
 
Basic
191.1 
195.0 
Diluted
194.3 
197.9 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Net income
$ 345.9 
$ 186.6 
Foreign currency translation:
 
 
Foreign currency translation adjustments - Pre Tax
14.4 
48.5 
Foreign currency translation adjustment - Tax
(2.3)
(12.5)
Foreign currency translation adjustments - Net of Tax
12.1 
36.0 
Cash flow hedges:
 
 
Net realized and unrealized gain (loss) on cash flow hedges - Pre Tax
(0.3)
2.0 
Net realized and unrealized gain (loss) on cash flow hedges - Tax Amount
0.1 
(0.8)
Net realized and unrealized gain (loss) on cash flow hedges - Net of Tax
(0.2)
1.2 
Reclassification of losses included in net income - Pre Tax
(1.4)
(2.2)
Reclassification of losses included in net income - Tax Amount
0.5 
0.8 
Reclassification of losses included in net income- Net of Tax
(0.9)
(1.4)
Available for sale securities:
 
 
Net unrealized gains on available for sale securities - Pre Tax
0.5 
0.6 
Net unrealized gains on available for sale securities - Net of Tax
0.5 
0.6 
Pension and Other Retirement Benefits:
 
 
Amortization of actuarial losses and prior service costs included in net income - Pre Tax
2.4 
2.6 
Amortization of actuarial losses and prior service costs included in net income - Tax
(0.9)
(1.0)
Amortization of actuarial losses and prior service costs included in net income - Net of Tax
1.5 
1.6 
Total other comprehensive income (loss) - Pre Tax
15.6 
51.5 
Total other comprehensive income (loss) - Tax
(2.6)
(13.5)
Total other comprehensive income (loss) - Net of Tax
13.0 
38.0 
Comprehensive income
358.9 
224.6 
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest
5.7 
2.2 
Comprehensive income attributable to Moody's
$ 353.2 
$ 222.4 
CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Current assets:
 
 
Cash and cash equivalents
$ 2,129.6 
$ 2,051.5 
Short-term investments
132.8 
173.4 
Accounts receivable, net of allowances of net of allowances of $25.1 in 2017 and $25.7 in 2016
953.5 
887.4 
Other current assets
269.6 
140.8 
Total current assets
3,485.5 
3,253.1 
Property and equipment, net of accumulated depreciation of $620.5 in 2017 and $595.5 in 2016
329.1 
325.9 
Goodwill
1,029.6 
1,023.6 
Intangible assets, net
289.8 
296.4 
Deferred tax assets, net
135.1 
316.1 
Other assets
166.8 
112.2 
Total assets
5,435.9 
5,327.3 
Current liabilities:
 
 
Accounts payable and accrued liabilities
392.6 
1,444.3 
Commercial paper
213.8 
 
Current portion of long-term debt
 
300.0 
Deferred revenue
817.4 
683.9 
Total current liabilities
1,423.8 
2,428.2 
Non-current portion of deferred revenue
132.5 
134.1 
Long-term debt
3,861.9 
3,063.0 
Deferred tax liabilities, net
105.0 
104.3 
Unrecognized tax benefits
202.7 
199.8 
Other liabilities
434.2 
425.2 
Total liabilities
6,160.1 
6,354.6 
Contingencies (Note 14)
   
   
Shareholders' (deficit) equity
 
 
Capital surplus
447.0 
477.2 
Retained earnings
7,031.0 
6,688.9 
Treasury stock, at cost; 151,594,546 and 152,208,231 shares of common stock at March 31, 2017 and December 31, 2016, respectively
(8,051.2)
(8,029.6)
Accumulated other comprehensive loss
(357.3)
(364.9)
Total Moody's shareholders' deficit
(927.1)
(1,225.0)
Noncontrolling interests
202.9 
197.7 
Total shareholders' deficit
(724.2)
(1,027.3)
Total liabilities and shareholders' (deficit) equity
5,435.9 
5,327.3 
Series common stock
 
 
Shareholders' (deficit) equity
 
 
Common stock
   
   
Common Stock
 
 
Shareholders' (deficit) equity
 
 
Common stock
$ 3.4 
$ 3.4 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Accounts receivable, allowances
$ 25.1 
$ 25.7 
Property and equipment, accumulated depreciation
$ 620.5 
$ 595.5 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
10,000,000.0 
10,000,000.0 
Treasury stock, shares
151,594,546.0 
152,208,231.0 
Series common stock
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
10,000,000.0 
10,000,000.0 
Common Stock
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
1,000,000,000.0 
1,000,000,000.0 
Common stock, shares issued
342,902,272.0 
342,902,272.0 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities
 
 
Net income
$ 345.9 
$ 186.6 
Reconciliation of net income to net cash provided by operating activities:
 
 
Depreciation and amortization
32.5 
29.9 
Stock-based compensation expense
28.4 
25.4 
CCXI gains
(59.7)
 
Deferred income taxes
185.0 
11.3 
Changes in assets and liabilities:
 
 
Accounts receivable
(61.9)
(45.5)
Other current assets
(128.3)
13.6 
Other assets
(3.2)
1.5 
Accounts payable and accrued liabilities
(988.6)
(99.0)
Deferred revenue
125.9 
122.6 
Unrecognized tax benefits and other non-current tax liabilities
0.9 
5.3 
Other liabilities
10.7 
1.9 
Net cash provided by operating activities
(512.4)
253.6 
Cash flows from investing activities
 
 
Capital additions
(18.7)
(26.3)
Purchases of investments
(34.5)
(134.6)
Sales and maturities of short-term investments
76.8 
126.1 
Cash paid for acquisitions, net of cash acquired and equity investments
(5.0)
(75.9)
Receipts from settlements of net investment hedges
 
2.3 
Net cash used in investing activities
18.6 
(108.4)
Cash flows from financing activities
 
 
Issuance of notes
798.5 
 
Repayments of notes
(300.0)
 
Issuance of commercial paper
653.7 
 
Repayments of commercial paper
(440.4)
 
Proceeds from stock-based compensation plans
22.1 
24.3 
Repurchase of shares related to stock-based compensation
(47.5)
(42.7)
Cost of treasury shares repurchased
(55.0)
(262.1)
Dividends
(72.6)
(72.1)
Dividends to noncontrolling interests
(0.2)
(2.9)
Debt issuance costs and related fees
(4.9)
 
Net cash provided (used in) by financing activities
553.7 
(355.5)
Effect of exchange rate changes on cash and cash equivalents
18.2 
29.0 
Net increase (decrease) in cash and cash equivalents
78.1 
(181.3)
Cash and cash equivalents, beginning of the period
2,051.5 
1,757.4 
Cash and cash equivalents, end of the period
$ 2,129.6 
$ 1,576.1 
GLOSSARY OF TERMS AND ABBREVIATIONS
GLOSSARY OF TERMS AND ABBREVIATIONS
GLOSSARY OF TERMS AND ABBREVIATIONS
The following terms, abbreviations and acronyms are used to identify frequently used terms in this report:
TERMDEFINITION
Adjusted Free Cash FlowFree Cash Flow minus payments for Settlement Charge
Adjusted Operating Income Operating income excluding depreciation and amortization
Adjusted Operating Margin Adjusted Operating Income divided by revenue
AmericasRepresents countries within North and South America, excluding the U.S.
AOCIAccumulated other comprehensive income (loss); a separate component of shareholders’ (deficit) equity
ASCThe FASB Accounting Standards Codification; the sole source of authoritative GAAP as of July 1, 2009 except for rules and interpretive releases of the SEC, which are also sources of authoritative GAAP for SEC registrants
Asia-PacificRepresents countries in Asia including but not limited to: Australia, China, India, Indonesia, Japan, Korea, Malaysia, Singapore, Sri Lanka and Thailand
ASUThe FASB Accounting Standards Update to the ASC. It also provides background information for accounting guidance and the bases for conclusions on the changes in the ASC. ASUs are not considered authoritative until codified into the ASC
BoardThe board of directors of the Company
BPSBasis points
CCXCMChina Cheng Xin Credit Management Co. Ltd.; the majority shareholder of CCXI
CCXI China Cheng Xin International Credit Rating Co. Ltd.; China’s first and largest domestic credit rating agency approved by the People's Bank of China; the Company acquired a 49% interest in 2006; currently Moody’s owns 30% of CCXI.
CCXI GainIn the first quarter of 2017, CCXI, as part of a strategic business realignment, issued additional capital to CCXCM in exchange for the entire CCXR business owned 100% by CCXCM. CCXR is a Chinese credit rating agency licensed in China to rate certain financial instruments. The capital issuance in exchange for CCXR business diluted Moody’s ownership interest in CCXI to 30%. This resulted in a $59.7 million non-cash gain which is not taxable.  
CLOCollateralized loan obligation
CMBSCommercial mortgage-backed securities; part of the CREF asset class within SFG
CommissionEuropean Commission
Common StockThe Company’s common stock
CompanyMoody’s Corporation and its subsidiaries; MCO; Moody’s
CopalCopal Partners; an acquisition completed in November 2011; part of the MA segment; leading provider of research and analytical services to institutional investors
Copal AmbaOperating segment (rebranded as MAKS in 2016) created in January 2014 that consists of all operations from Copal and Amba. Part of the PS LOB within the MA reportable segment. Also a reporting unit.
CouncilCouncil of the European Union
CPCommercial Paper
CP NotesUnsecured commercial paper issued under the CP Program
CP ProgramA program entered into on August 3, 2016 allowing the Company to privately place CP up to a maximum of $1 billion for which the maturity may not exceed 397 from the date of issue
CRAsCredit rating agencies
CRA3Regulation (EU) No 462/2013 of the European Parliament and of the Council, which updated the regulatory regimes imposing additional procedural requirements on CRAs
CREFCommercial real estate finance which includes REITs, commercial real estate CDOs and mortgage-backed securities; part of SFG
D&ADepreciation and amortization
D&B BusinessOld D&B’s Dun & Bradstreet operating company
DBPPDefined benefit pension plans
Debt/EBITDARatio of Total Debt to EBITDA
EBITDAEarnings before interest, taxes, depreciation and amortization
EMEARepresents countries within Europe, the Middle East and Africa
EPSEarnings per share
ERSThe enterprise risk solutions LOB within MA, which offers risk management software products as well as software implementation services and related risk management advisory engagements
ESMAEuropean Securities and Markets Authority
ETREffective tax rate
EUEuropean Union
EUREuros
Excess Tax BenefitsThe difference between the tax benefit realized at exercise of an option or delivery of a restricted share and the tax benefit recorded at the time the option or restricted share is expensed under GAAP
Exchange ActThe Securities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
FIGFinancial institutions group; an LOB of MIS
Financial Reform ActDodd-Frank Wall Street Reform and Consumer Protection Act
Free Cash FlowNet cash provided by operating activities less cash paid for capital additions
FSTCFinancial Services Training and Certifications; part of the PS LOB and a reporting unit within the MA reportable segment; consists of on-line and classroom-based training services and CSI Global Education, Inc.
FXForeign exchange
GAAPU.S. Generally Accepted Accounting Principles
GBPBritish pounds
GGYGilliland Gold Young; a leading provider of advanced actuarial software for the global insurance industry. The Company acquired GGY on March 1, 2016; part of the ERS LOB and reporting unit within the MA reportable segment
ICRAICRA Limited; a leading provider of credit ratings and research in India. The Company previously held 28.5% equity ownership and in June 2014, increased that ownership stake to just over 50% through the acquisition of additional shares
ICTEASICRA Techno Analytics; formerly a wholly-owned subsidiary of ICRA; divested by ICRA in the fourth quarter of 2016
IRSInternal Revenue Service
ITInformation technology
KISKorea Investors Service, Inc; a leading Korean rating agency and consolidated subsidiary of the Company
KIS PricingKorea Investors Service Pricing, Inc; a leading Korean provider of fixed income securities pricing and consolidated subsidiary of the Company
Legacy Tax Matter(s)Exposures to certain potential tax liabilities assumed in connection with the Company’s spin-off from Dun & Bradstreet in 2000
LIBORLondon Interbank Offered Rate
LOBLine of business
M&AMergers and acquisitions
MAMoody’s Analytics – a reportable segment of MCO formed in January 2008 which provides a wide range of products and services that support financial analysis and risk management activities of institutional participants in global financial markets; consists of three LOBs – RD&A, ERS and PS
Make Whole AmountThe prepayment penalty amount relating to the Series 2007-1 Notes, 2010 Senior Notes, 2012 Senior Notes, 2013 Senior Notes, 2014 Senior Notes (5-year), 2014 Senior Notes (30-year) and 2015 Senior Notes which is a premium based on the excess, if any, of the discounted value of the remaining scheduled payments over the prepaid principal
MAKSMoody’s Analytics Knowledge Services; operating segment and reporting unit formerly known as Copal Amba; provides offshore research and analytic services to the global financial and corporate sectors; part of the PS LOB and a reporting unit within the MA reportable segment
MCOMoody’s Corporation and its subsidiaries; the Company; Moody’s
MD&AManagement’s Discussion and Analysis of Financial Condition and Results of Operations
MISMoody’s Investors Service – a reportable segment of MCO; consists of five LOBs – SFG, CFG, FIG, PPIF and MIS Other
MIS OtherConsists of non-ratings revenue from ICRA, KIS Pricing and KIS Research. These businesses are components of MIS; MIS Other is an LOB of MIS
Moody’sMoody’s Corporation and its subsidiaries; MCO; the Company
Net IncomeNet income attributable to Moody’s Corporation, which excludes net income from consolidated noncontrolling interests belonging to the minority interest holder
NMPercentage change is not meaningful
Non-GAAPA financial measure not in accordance with GAAP; these measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s performance, facilitate comparisons to competitors’ operating results and to provide greater transparency to investors of supplemental information used by management in its financial and operational decision making
NRSRONationally Recognized Statistical Rating Organization
OCIOther comprehensive income (loss); includes gains and losses on cash flow and net investment hedges, unrealized gains and losses on available for sale securities, certain gains and losses relating to pension and other retirement benefit obligations and foreign currency translation adjustments
Other Retirement PlanThe U.S. retirement healthcare and U.S. retirement life insurance plans
PPIFPublic, project and infrastructure finance; an LOB of MIS
Profit Participation PlanDefined contribution profit participation plan that covers substantially all U.S. employees of the Company
PSProfessional Services, an LOB within MA consisting of MAKS and FSTC that provides research and analytical services as well as financial training and certification programs
RD&AResearch, Data and Analytics; an LOB within MA that produces, sells and distributes research, data and related content. Includes products generated by MIS, such as analyses on major debt issuers, industry studies, and commentary on topical credit events, as well as economic research, data, quantitative risk scores, and other analytical tools that are produced within MA
Reform ActCredit Rating Agency Reform Act of 2006
REITReal Estate Investment Trust
Relationship RevenueFor MIS represents monitoring of a rated debt obligation and/or entities that issue such obligations, as well as revenue from programs such as commercial paper, medium-term notes and shelf registrations. For MIS Other represents subscription-based revenue. For MA, represents subscription-based license and maintenance revenue
Retirement PlansMoody’s funded and unfunded pension plans, the healthcare plans and life insurance plans
SCDMSCDM Financial, a leading provider of analytical tools for participants in securitization markets. Moody’s acquired SCDM’s structured finance data and analytics business in February 2017
U.S. Securities and Exchange Commission
SEC
Securities ActSecurities Act of 1933, as amended
Series 2007-1 NotesPrincipal amount of $300 million, 6.06% senior unsecured notes due in September 2017 pursuant to the 2007 Agreement; prepaid in March 2017
SFGStructured finance group; an LOB of MIS
SG&ASelling, general and administrative expenses
Total DebtAll indebtedness of the Company as reflected on the consolidated balance sheets
Transaction RevenueFor MIS, represents the initial rating of a new debt issuance as well as other one-time fees. For MIS Other, represents revenue from professional services as well as data services, research and analytical engagements. For MA, represents software license fees and revenue from risk management advisory projects, training and certification services, and research and analytical engagements
U.K.United Kingdom
U.S.United States
USDU.S. dollar
UTBsUnrecognized tax benefits
UTPsUncertain tax positions
VSOEVendor specific objective evidence; as defined in the ASC, evidence of selling price limited to either of the following: the price charged for a deliverable when it is sold separately, or for a deliverable not yet being sold separately, the price established by management having the relevant authority
2000 DistributionThe distribution by Old D&B to its shareholders of all the outstanding shares of New D&B common stock on September 30, 2000
2007 AgreementNote purchase agreement dated September 7, 2007, relating to the Series 2007-1 Notes
2010 IndentureSupplemental indenture and related agreements dated August 19, 2010, relating to the 2010 Senior Notes
2010 Senior NotesPrincipal amount of $500 million, 5.50% senior unsecured notes due in September 2020 pursuant to the 2010 Indenture
2012 FacilityRevolving credit facility of $1 billion entered into on April 18,2012; was replaced with the 2015 Facility
2012 IndentureSupplemental indenture and related agreements dated August 18, 2012, relating to the 2012 Senior Notes
2012 Senior NotesPrincipal amount of $500 million, 4.50% senior unsecured notes due in September 2022 pursuant to the 2012 Indenture
2013 IndentureSupplemental indenture and related agreements dated August 12, 2013, relating to the 2013 Senior Notes
2013 Senior NotesPrincipal amount of the $500 million, 4.875% senior unsecured notes due in February 2024 pursuant to the 2013 Indenture
2014 IndentureSupplemental indenture and related agreements dated July 16, 2014, relating to the 2014 Senior Notes
2017 IndentureSupplemental indenture and related agreements dated March 2, 2017, relating to the 2017 Floating Rate Senior Notes and 2017 Senior Notes
2014 Senior Notes (5-Year)Principal amount of $450 million, 2.75% senior unsecured notes due in July 2019
2014 Senior Notes (30-Year)Principal amount of $600 million, 5.25% senior unsecured notes due in July 2044
2015 FacilityFive-year unsecured revolving credit facility, with capacity to borrow up to $1 billion; replaces the 2012 Facility
2015 IndentureSupplemental indenture and related agreements dated March 9, 2015, relating to the 2015 Senior Notes
2015 Senior NotesPrincipal amount €500 million, 1.75% senior unsecured notes issued March 9, 2015 and due in March 2027
2017 Floating Rate Senior Notes Principal amount of $300 million, floating rate senior unsecured notes due in September 2018
2017 Senior Notes Principal amount of $500 million, 2.75% senior unsecured notes due in December 2021
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Moody’s is a provider of (i) credit ratings, (ii) credit, capital markets and economic research, data and analytical tools, (iii) software solutions and related risk management services, (iv) quantitative credit risk measures, financial services training and certification services and (v) research and analytical services. Moody’s has two reportable segments: MIS and MA.

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

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

These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the Company’s consolidated financial statements and related notes in the Company’s 2016 annual report on Form 10-K filed with the SEC on February 24, 2017. The results of interim periods are not necessarily indicative of results for the full year or any subsequent period. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the periods presented have been included. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

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

Adoption of New Accounting Standard

In the first quarter of 2017, the Company adopted ASU No. 2016-09 “Improvements to Employee Share-Based Payment Accounting”. As required by ASU 2016-09, Excess Tax Benefits or shortfalls recognized on stock-based compensation expense are reflected in the consolidated statement of operations as a component of the provision for income taxes on a prospective basis. Prior to the adoption of this ASU, Excess Tax Benefits and shortfalls were recorded to capital surplus within shareholders’ deficit. The impact of this adoption was a $19.0 million benefit to the provision for income taxes for the three months ended March 31, 2017.

Additionally, in accordance with this ASU, Excess Tax Benefits or shortfalls recognized on stock-based compensation are classified as operating cash flows in the consolidated statement of cash flows, and the Company has applied this provision on a retrospective basis. Under previous accounting guidance, the Excess Tax Benefits or shortfalls were shown as a reduction to operating activity and an increase to financing activity. Furthermore, the Company has elected to continue to estimate the number of stock-based awards expected to vest, rather than accounting for award forfeitures as they occur, to determine the amount of stock-based compensation cost recognized in each period. The impact to the Company’s statement of cash flows for the three months ended March 31, 2016 relating to the adoption of this provision of the ASU is set forth in the table below:

(amounts in millions)As reported Three Months Ended March 31, 2016Adoption AdjustmentThree Months Ended March 31, 2016 As adjusted
Net cash provided by operating activities$ 237.3 $ 16.3 $ 253.6
Net cash used in financing activities$ (339.2)$ (16.3)$ (355.5)
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Tables)
Schedule of Change in Balance Sheets Item Due to Adoption of Debt Issuance Costs Policy
(amounts in millions)As reported Three Months Ended March 31, 2016Adoption AdjustmentThree Months Ended March 31, 2016 As adjusted
Net cash provided by operating activities$ 237.3 $ 16.3 $ 253.6
Net cash used in financing activities$ (339.2)$ (16.3)$ (355.5)
Change in Financial Statement due to adoption of Policy (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Item Effected [Line Items]
 
 
Net cash provided by operating activities
$ (512.4)
$ 253.6 
Net cash provided by financing activities
553.7 
(355.5)
As Previously Reported [Member]
 
 
Item Effected [Line Items]
 
 
Net cash provided by operating activities
 
237.3 
Net cash provided by financing activities
 
$ (339.2)
Description of Business and Basis of Presentation - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Segment Reporting Information [Line Items]
 
Effect of Adoption Adjustment on Provision for income taxes
$ 19.0 
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

NOTE 2. 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
March 31,
20172016
Stock-based compensation expense$28.4$25.4
Tax benefit$9.1$8.4

During the first three months of 2017, the Company granted 0.2 million employee stock options, which had a weighted average grant date fair value of $29.88 per share based on the Black-Scholes option-pricing model. The Company also granted 1.0 million shares of restricted stock in the first three months of 2017, which had a weighted average grant date fair value of $113.32 per share. Both the employee stock options and restricted stock generally vest ratably over a four-year period. 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 three-year period. The weighted average grant date fair value of these awards was $108.88 per share.

The following weighted average assumptions were used in determining the fair value for options granted in 2017:

Expected dividend yield1.34%
Expected stock volatility26.8%
Risk-free interest rate2.19%
Expected holding period6.5 years
Grant date fair value$29.88

Unrecognized stock-based compensation expense at March 31, 2017 was $12.1 million and $200.7 million for stock options and unvested restricted stock, respectively, which is expected to be recognized over a weighted average period of 1.5 years and 1.8 years, respectively. Additionally, there was $27.7 million of unrecognized stock-based compensation expense relating to the aforementioned non-market based performance-based awards, which is expected to be recognized over a weighted average period of 1.2 years.

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

Three Months Ended
March 31,
Exercise of stock options:20172016
Proceeds from stock option exercises$20.6$22.8
Aggregate intrinsic value$21.6$11.0
Tax benefit realized upon exercise$7.9$3.9
Number of shares exercised0.40.4
Three Months Ended
March 31,
Vesting of restricted stock:20172016
Fair value of shares vested$106.8$89.3
Tax benefit realized upon vesting$33.7$29.5
Number of shares vested0.91.0
Three Months Ended
March 31,
Vesting of performance-based restricted stock:20172016
Fair value of shares vested$19.5$23.6
Tax benefit realized upon vesting$6.9$8.4
Number of shares vested0.20.2
STOCK-BASED COMPENSATION (Tables)
Three Months Ended
March 31,
20172016
Stock-based compensation expense$28.4$25.4
Tax benefit$9.1$8.4
Expected dividend yield1.34%
Expected stock volatility26.8%
Risk-free interest rate2.19%
Expected holding period6.5 years
Grant date fair value$29.88
Three Months Ended
March 31,
Exercise of stock options:20172016
Proceeds from stock option exercises$20.6$22.8
Aggregate intrinsic value$21.6$11.0
Tax benefit realized upon exercise$7.9$3.9
Number of shares exercised0.40.4
Three Months Ended
March 31,
Vesting of restricted stock:20172016
Fair value of shares vested$106.8$89.3
Tax benefit realized upon vesting$33.7$29.5
Number of shares vested0.91.0
Three Months Ended
March 31,
Vesting of performance-based restricted stock:20172016
Fair value of shares vested$19.5$23.6
Tax benefit realized upon vesting$6.9$8.4
Number of shares vested0.20.2
Stock-Based Compensation Cost and Associated Tax Benefit (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Compensation Related Costs Share Based Payments Disclosure [Line Items]
 
 
Stock-based compensation expense
$ 28.4 
$ 25.4 
Tax benefit
$ 9.1 
$ 8.4 
Weighted Average Assumptions used in Determining Fair Value for Options Granted (Detail)
3 Months Ended
Mar. 31, 2017
Schedule Of Weighted Average Assumptions For Fair Values Of Stock Options [Line Items]
 
Expected dividend yield
1.34% 
Expected stock volatility
26.80% 
Risk-free interest rate
2.19% 
Expected holding period
6 years 6 months 
Grant date fair value
$ 29.88 
Stock Option Exercises and Restricted Stock Vesting (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Employee Stock Options [Member]
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Proceeds from stock option exercises
$ 20.6 
$ 22.8 
Aggregate intrinsic value
21.6 
11.0 
Tax benefit realized upon exercise/vesting
7.9 
3.9 
Number of shares exercised
0.4 
0.4 
Restricted Stock [Member]
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Fair value of shares vested
106.8 
89.3 
Tax benefit realized upon exercise/vesting
33.7 
29.5 
Number of shares vested
0.2 
1.0 
Vesting of Performance Based Restricted Stock [Member]
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
Fair value of shares vested
19.5 
23.6 
Tax benefit realized upon exercise/vesting
$ 6.9 
$ 8.4 
Number of shares vested
0.2 
0.2 
Stock-Based Compensation - Additional Information (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
Employee stock options, weighted average grant date fair value
$ 29.88 
Employee Stock Options [Member]
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
Employee stock options, granted
0.2 
Employee stock options, weighted average grant date fair value
$ 29.88 
Other than options, award vesting period (in years)
4 years 
Unrecognized compensation expense
$ 12.1 
Weighted average period to recognize expense
1 year 6 months 
Restricted Stock [Member]
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
Other than options, Shares granted
1.0 
Other than options, weighted average grant date fair value
$ 113.32 
Other than options, award vesting period (in years)
4 years 
Unrecognized compensation expense
200.7 
Weighted average period to recognize expense
1 year 10 months 24 days 
Performance Based Restricted Stock [Member]
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
Other than options, Shares granted
0.2 
Other than options, weighted average grant date fair value
$ 108.88 
Other than options, award vesting period (in years)
3 years 
Unrecognized compensation expense
$ 27.7 
Weighted average period to recognize expense
1 year 1 month 6 days 
INCOME TAXES
INCOME TAXES

NOTE 3. INCOME TAXES

Moody’s effective tax rate was 23.4% and 32.3% for the three months ended March 31, 2017 and 2016, respectively. The decrease in the ETR was primarily due to the impact of a benefit related to the adoption of ASU 2016-09, as further discussed in Note 1 above and the non-taxable CCXI Gain as discussed in Note 10 below.

The Company classifies interest related to UTBs in interest expense, net in its consolidated statements of operations. Penalties, if incurred, would be recognized in other non-operating (expense) income, net. The Company had an increase in its UTBs of $2.9 million ($3.7 million net of federal tax) during the first quarter of 2017.

Moody’s Corporation and subsidiaries are subject to U.S. federal income tax as well as income tax in various state, local and foreign jurisdictions. The Company’s U.S. federal income tax returns for the years 2011 and 2012 are under examination and its returns for 2013, 2014 and 2015 remain open to examination. The Company’s New York State tax returns for 2011 through 2014 are currently under examination and the Company’s New York City tax return for 2014 is currently under examination. The Company’s U.K. tax return for 2012 is currently under examination and its returns for 2013, 2014 and 2015 remain open to examination.

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

On March 30, 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share Based Payment Accounting as more fully discussed in Note 1 to the condensed consolidated financial statements. The Company has adopted the new guidance as of the first quarter of 2017 and expects the adoption to result in a benefit to the provision for income taxes of approximately $30 million for the full year of 2017, or $0.15 per diluted shares.

In the first quarter of 2017, the Company adopted ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. Under previous guidance, the tax effects of intra-entity asset transfers (intercompany sales) were deferred until the transferred asset was sold to a third party or otherwise recovered through use. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. Upon adoption, a cumulative-effect adjustment is recorded in retained earnings as of the beginning of the period of adoption. The net impact upon adoption is a reduction to retained earnings of $4.6 million. The Company does not expect any material impact on its future operations as a result of the adoption of this guidance.

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

Three Months Ended
March 31,
20172016
Income taxes paid$23.4$22.0
INCOME TAXES (Tables)
Income Taxes Paid
Three Months Ended
March 31,
20172016
Income taxes paid$23.4$22.0
Income Taxes - Additional Information (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Income Tax Contingency [Line Items]
 
 
Effective tax rate
23.40% 
32.30% 
Overall increase (decrease) in unrecognized tax benefits (UTPs)
$ 0.9 
$ 5.3 
Expected Benefit to Provision for income taxes for full-year 2017 due to change in accounting principle
30.0 
 
Expected Change to the Per diluted shares for full-year 2017 due to change in accounting principle
$ 0.15 
 
Gross [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Overall increase (decrease) in unrecognized tax benefits (UTPs)
2.9 
 
Net of federal tax benefit [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Overall increase (decrease) in unrecognized tax benefits (UTPs)
3.7 
 
Retained Earnings [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Effect of adoption adjustment Reduction to retained earnings
$ 4.6 
 
WEIGHTED AVERAGE SHARES OUTSTANDING
WEIGHTED AVERAGE SHARES OUTSTANDING

NOTE 4. WEIGHTED AVERAGE SHARES OUTSTANDING

Below is a reconciliation of basic to diluted shares outstanding:

Three Months Ended
March 31,
20172016
Basic191.1195.0
Dilutive effect of shares issuable under stock-based compensation plans3.22.9
Diluted194.3197.9
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock excluded from the table above1.01.5

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 March 31, 2017 and 2016. The assumed proceeds in 2017 do not include Excess Tax Benefits pursuant to the prospective adoption of ASU 2016-09 in the first quarter of 2017. The assumed proceeds in 2016 include Excess Tax Benefits.

The decrease in the diluted shares outstanding primarily reflects treasury share repurchases under the Company’s Board authorized share repurchase program.

WEIGHTED AVERAGE SHARES OUTSTANDING (Tables)
Reconciliation of Basic to Diluted Shares Outstanding
Three Months Ended
March 31,
20172016
Basic191.1195.0
Dilutive effect of shares issuable under stock-based compensation plans3.22.9
Diluted194.3197.9
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock excluded from the table above1.01.5
Reconciliation of Basic to Diluted Shares Outstanding (Detail)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Schedule Of Earnings Per Share Basic And Diluted By Common Class [Line Items]
 
 
Basic
191.1 
195.0 
Dilutive effect of shares issuable under stock-based compensation plans
3.2 
2.9 
Diluted
194.3 
197.9 
Anti-dilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above
1.0 
1.5 
CASH EQUIVALENT AND INVESTMENTS
CASH EQUIVALENT AND INVESTMENT

NOTE 5. CASH EQUIVALENTS AND INVESTMENTS

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

As of March 31, 2017
Balance sheet location
CostGross Unrealized GainsFair ValueCash and cash equivalentsShort-term investmentsOther assets
Money market mutual funds$240.8$-$240.8$240.8$-$-
Certificates of deposit and money market deposit accounts (1)$1,111.5$-$1,111.5$977.9$132.8$0.8
Fixed maturity and open ended mutual funds (2)$26.5$6.0$32.5$-$-$32.5
As of December 31, 2016
Balance sheet location
CostGross Unrealized GainsFair ValueCash and cash equivalentsShort-term investmentsOther assets
Money market mutual funds$189.0$-$189.0$189.0$-$-
Certificates of deposit and money market deposit accounts (1)$1,190.5$-$1,190.5$1,017.0$173.4$0.1
Fixed maturity and open ended mutual funds (2)$27.0$5.6$32.6$-$-$32.6

  • Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one month to 12 months at March 31, 2017 and at December 31, 2016. The remaining contractual maturities for the certificates of deposits classified in other assets are 23 months at March 31, 2017 and 13 months to 15 months at December 31, 2016. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.
  • Consists of investments in fixed maturity mutual funds and open-ended mutual funds. The remaining contractual maturities for the fixed maturity instruments range from three months to 16 months and six months to 19 months at March 31, 2017 and December 31,2016 respectively.

The money market mutual funds as well as the fixed maturity and open ended mutual funds in the table above are deemed to be available for sale under ASC Topic 320 and the fair value of these instruments is determined using Level 1 inputs as defined in the ASC.

CASH EQUIVALENT AND INVESTMENTS (Tables)
Schedule of Available For Sale Securities
As of March 31, 2017
Balance sheet location
CostGross Unrealized GainsFair ValueCash and cash equivalentsShort-term investmentsOther assets
Money market mutual funds$240.8$-$240.8$240.8$-$-
Certificates of deposit and money market deposit accounts (1)$1,111.5$-$1,111.5$977.9$132.8$0.8
Fixed maturity and open ended mutual funds (2)$26.5$6.0$32.5$-$-$32.5
As of December 31, 2016
Balance sheet location
CostGross Unrealized GainsFair ValueCash and cash equivalentsShort-term investmentsOther assets
Money market mutual funds$189.0$-$189.0$189.0$-$-
Certificates of deposit and money market deposit accounts (1)$1,190.5$-$1,190.5$1,017.0$173.4$0.1
Fixed maturity and open ended mutual funds (2)$27.0$5.6$32.6$-$-$32.6

  • Consists of time deposits and money market deposit accounts. The remaining contractual maturities for the certificates of deposits classified as short-term investments were one month to 12 months at March 31, 2017 and at December 31, 2016. The remaining contractual maturities for the certificates of deposits classified in other assets are 23 months at March 31, 2017 and 13 months to 15 months at December 31, 2016. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.
  • Consists of investments in fixed maturity mutual funds and open-ended mutual funds. The remaining contractual maturities for the fixed maturity instruments range from three months to 16 months and six months to 19 months at March 31, 2017 and December 31,2016 respectively.

Cash Equivalent and Investments (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2017
Money Market [Member]
Dec. 31, 2016
Money Market [Member]
Mar. 31, 2017
Certificates Of Deposit [Member]
Dec. 31, 2016
Certificates Of Deposit [Member]
Mar. 31, 2017
Fixed Maturity and Mutual Funds [Member]
Dec. 31, 2016
Fixed Maturity and Mutual Funds [Member]
Schedule Of Available For Sale Securities [Line Items]
 
 
 
 
 
 
 
 
 
 
Cost
 
 
 
 
$ 240.8 
$ 189.0 
$ 1,111.5 
$ 1,190.5 
$ 26.5 
$ 27.0 
Gross unrealized gain
 
 
 
 
 
 
 
 
6.0 
5.6 
Fair value
32.5 
32.6 
 
 
240.8 
189.0 
1,111.5 
1,190.5 
32.5 
32.6 
Cash and cash equivalents
2,129.6 
2,051.5 
1,576.1 
1,757.4 
240.8 
189.0 
977.9 
1,017.0 
 
 
Short-term investments
132.8 
173.4 
 
 
 
 
132.8 
173.4 
 
 
Other assets
 
 
 
 
 
 
$ 0.8 
$ 0.1 
$ 32.5 
$ 32.6 
Cash Equivalent and Investments (Parenthetical) (Detail)
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Certificates Of Deposit [Member] |
Other Assets [Member]
 
 
Schedule Of Investments [Line Items]
 
 
Securities Maturity period
23 months 
 
Minimum [Member] |
Certificates Of Deposit [Member] |
Short Term Investments [Member]
 
 
Schedule Of Investments [Line Items]
 
 
Securities Maturity period
1 month 
1 month 
Minimum [Member] |
Certificates Of Deposit [Member] |
Other Assets [Member]
 
 
Schedule Of Investments [Line Items]
 
 
Securities Maturity period
 
13 months 
Minimum [Member] |
Fixed Maturity and Mutual Funds [Member]
 
 
Schedule Of Investments [Line Items]
 
 
Securities Maturity period
3 months 
6 months 
Maximum [Member] |
Certificates Of Deposit [Member] |
Short Term Investments [Member]
 
 
Schedule Of Investments [Line Items]
 
 
Securities Maturity period
12 months 
12 months 
Maximum [Member] |
Certificates Of Deposit [Member] |
Cash And Cash Equivalents [Member]
 
 
Schedule Of Investments [Line Items]
 
 
Securities Maturity period
90 days 
 
Maximum [Member] |
Certificates Of Deposit [Member] |
Other Assets [Member]
 
 
Schedule Of Investments [Line Items]
 
 
Securities Maturity period
 
15 months 
Maximum [Member] |
Fixed Maturity and Mutual Funds [Member]
 
 
Schedule Of Investments [Line Items]
 
 
Securities Maturity period
16 months 
19 months 
ACQUISITIONS
ACQUISITIONS

NOTE 6. ACQUISITIONS

The business combinations described below are accounted for using the acquisition method of accounting whereby assets acquired and liabilities assumed were recognized at fair value on the date of the transaction. Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded to goodwill. The Company has not presented proforma combined results because the impact on previously reported statements of operations would not have been material. Additionally, the near term impact to the Company’s operations and cash flows is not material.

SCDM Financial

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

Korea Investor Service (KIS)

In July 2016, a subsidiary of the Company acquired the non-controlling interest of KIS and additional shares of KIS Pricing. The aggregate purchase price was not material and the near term impact to the Company’s operations and cash flow is not expected to be material. KIS and KIS Pricing are a part of the MIS segment.

Gilliland Gold Young (GGY)

On March 1, 2016, subsidiaries of the Company acquired 100% of GGY, a leading provider of advanced actuarial software for the life insurance industry. The cash payments noted in the table below were funded with cash on hand. The acquisition of GGY will allow MA to provide an industry-leading enterprise risk offering for global life insurers and reinsurers.

The table below details the total consideration relating to the acquisition:

Cash paid at closing$83.4
Additional consideration paid to sellers in the third quarter of 2016(1)3.1
Total consideration $86.5
(1) Represents additional consideration paid to the sellers for amounts withheld at closing pending the completion of certain administrative matters

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

Current assets$11.7
Property and equipment, net2.0
Indemnification assets1.5
Intangible assets:
Trade name (19 year weighted average life)$3.7
Client relationships (21 year weighted average life)13.8
Software (7 year weighted average life)16.6
Total intangible assets (14 year weighted average life)34.1
Goodwill59.4
Liabilities(22.2)
Net assets acquired$86.5

Current assets in the table above include acquired cash of $7.5 million. Additionally, current assets include accounts receivable of $2.9 million. Goodwill, which has been assigned to the MA segment, is not deductible for tax.

In connection with the acquisition, the Company assumed liabilities relating to UTPs and certain other tax exposures which are included in the liabilities assumed in the table above. The sellers have contractually indemnified the Company against any potential payments that may have to be made regarding these amounts. Accordingly, the Company carries an indemnification asset on its consolidated balance sheet at March 31, 2017 and December 31, 2016.

The Company incurred $0.9 million of costs directly related to the GGY acquisition of which $0.6 million was incurred in 2015 and $0.3 million was incurred in the first quarter of 2016. These costs are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

GGY is part of the ERS reporting unit for purposes of the Company’s annual goodwill impairment assessment.

ACQUISITIONS (Tables) (Gilliland Gold Young (GGY) [Member])
Cash paid at closing$83.4
Additional consideration paid to sellers in the third quarter of 2016(1)3.1
Total consideration $86.5
(1) Represents additional consideration paid to the sellers for amounts withheld at closing pending the completion of certain administrative matters
Current assets$11.7
Property and equipment, net2.0
Indemnification assets1.5
Intangible assets:
Trade name (19 year weighted average life)$3.7
Client relationships (21 year weighted average life)13.8
Software (7 year weighted average life)16.6
Total intangible assets (14 year weighted average life)34.1
Goodwill59.4
Liabilities(22.2)
Net assets acquired$86.5
Total Consideration Transferred to Sellers (Detail) (Gilliland Gold Young (GGY) [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended
Mar. 1, 2016
Gilliland Gold Young (GGY) [Member]
 
Business Acquisition [Line Items]
 
Cash paid
$ 83.4 
Additional consideration to be paid to seller in 2016
3.1 
Total consideration
$ 86.5 
Purchase Price Allocation (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Mar. 1, 2016
Gilliland Gold Young (GGY) [Member]
Mar. 1, 2016
Gilliland Gold Young (GGY) [Member]
Trade Names [Member]
Mar. 1, 2016
Gilliland Gold Young (GGY) [Member]
Customer Relationships [Member]
Mar. 1, 2016
Gilliland Gold Young (GGY) [Member]
Software [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Current assets
 
 
 
$ 11.7 
 
 
 
Property and equipment, net
 
 
 
2.0 
 
 
 
Indemnification asset
16.8 
16.5 
 
1.5 
 
 
 
Total intangible assets
 
 
 
34.1 
3.7 
13.8 
16.6 
Goodwill
1,029.6 
1,023.6 
976.3 
59.4 
 
 
 
Liabilities assumed
 
 
 
(22.2)
 
 
 
Net assets acquired
 
 
 
$ 86.5 
 
 
 
Purchase Price Allocation (Parenthetical) (Detail) (Gilliland Gold Young (GGY) [Member])
0 Months Ended
Mar. 1, 2016
Business Acquisition [Line Items]
 
Weighted average life of intangible assets acquired (in years)
14 years 
Trade Names [Member]
 
Business Acquisition [Line Items]
 
Weighted average life of intangible assets acquired (in years)
19 years 
Customer Relationships [Member]
 
Business Acquisition [Line Items]
 
Weighted average life of intangible assets acquired (in years)
21 years 
Software [Member]
 
Business Acquisition [Line Items]
 
Weighted average life of intangible assets acquired (in years)
7 years 
Acquisitions - Additional Information (Detail) (Gilliland Gold Young [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended
Mar. 1, 2016
Mar. 31, 2016
Dec. 31, 2015
Gilliland Gold Young [Member]
 
 
 
Business Acquisition [Line Items]
 
 
 
Acquired cash
$ 7.5 
 
 
Amount related to transaction cost
0.9 
0.3 
0.6 
Percentage of interests acquired
100.00% 
 
 
Acquired account receivables
2.9 
 
 
Cash paid for acquisitions, net of cash required
$ 83.4 
 
 
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

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 the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes.

Derivatives and non-derivative instruments designated as accounting hedges:

Interest Rate Swaps

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

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

Hedged ItemNature of SwapNotional AmountFloating Interest Rate
As of March 31, 2017As of December 31, 2016
2010 Senior Notes due 2020Pay Floating/Receive Fixed$500.0$500.03-month LIBOR
2014 Senior Notes due 2019Pay Floating/Receive Fixed$450.0$450.03-month LIBOR
2012 Senior Notes due 2022Pay Floating/Receive Fixed$80.0$80.03-month LIBOR

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

Amount of Income Recognized in the Consolidated Statements of Operations
Three Months Ended
March 31,
Derivatives Designated as Fair Value Accounting HedgesLocation on Consolidated Statement of Operations20172016
Interest rate swapsInterest expense, net$2.4$3.0

Cross-currency swaps

In conjunction with the issuance of the 2015 Senior Notes, the Company entered into a cross-currency swap to exchange €100 million for U.S. dollars on the date of the settlement of the notes. The purpose of this cross-currency swap is to mitigate FX risk on the remaining principal balance on the 2015 Senior Notes that was not designated as a net investment hedge as more fully discussed below. Under the terms of the swap, the Company will pay the counterparty interest on the $110.5 million received at 3.945% per annum and the counterparty will pay the Company interest on the €100 million paid at 1.75% per annum. These interest payments will be settled in March of each year, beginning in 2016, until either the maturity of the cross-currency swap in 2027 or upon early termination at the discretion of the Company. The principal payments on this cross currency swap will be settled in 2027, concurrent with the repayment of the 2015 Senior Notes at maturity or upon early termination at the discretion of the Company. In March 2016, the Company designated these cross-currency swaps as cash flow hedges. Accordingly, changes in fair value subsequent to the date the swaps were designated as cash flow hedges will initially be recognized in OCI. Gains and losses on the swaps initially recognized in OCI will be reclassified to the statement of operations in the period in which changes in the underlying hedged item affects net income. Ineffectiveness, if any, will be recognized in other non-operating (expense) income, net in the Company’s consolidated statement of operations.

Net investment hedges

The Company enters into foreign currency forward contracts that are designated as net investment hedges and additionally has designated €400 million of the 2015 Senior Notes as a net investment hedge. These hedges are intended to mitigate FX exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. These net investment hedges are designated as accounting hedges under the applicable sections of Topic 815 of the ASC.

Hedge effectiveness is assessed based on the overall changes in the fair value of the hedge. For hedges that meet the effectiveness requirements, any change in the fair value is recorded in OCI in the foreign currency translation account. Any change in the fair value of these hedges that is the result of ineffectiveness is recognized immediately in other non-operating (expense) income, net in the Company’s consolidated statement of operations.

The following table summarizes the notional amounts of the Company’s outstanding forward contracts that are designated as net investment hedges:

March 31,December 31,
20172016
Notional amount of net investment hedges:SellBuySellBuy
Contracts to sell GBP for euros£22.126.4£22.126.4

The outstanding contracts to sell GBP for euros mature in June 2017. The hedge relating to the portion of the 2015 Senior Notes that was designated as a net investment hedge will end upon the repayment of the notes in 2027 unless terminated earlier at the discretion of the Company.

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

Derivatives and Non-Derivative Instruments in Net Investment Hedging RelationshipsAmount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion), net of TaxAmount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion), net of Tax
Three Months EndedThree Months Ended
March 31,March 31,
2017201620172016
FX forwards$-$(4.6)$-$-
Long-term debt(3.6)(13.1)--
Total net investment hedges$(3.6)$(17.7)$-$-
Derivatives in Cash Flow Hedging Relationships
Cross currency swap$(0.2)$1.2$1.0*$1.4*
Treasury rate lock--(0.1)-
Total cash flow hedges$(0.2)$1.2$0.9$1.4
Total $(3.8)$(16.5)$0.9$1.4
*Reflects a$ 1.5 million ($0.5 million tax effect) and $2.2 million ($0.8 million tax effect) gain for 2017 and 2016, respectively, recorded in other non-operating (expense) income, net.

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

Cumulative Gains/(Losses), net of tax
March 31,December 31,
Net investment hedges20172016
FX forwards $22.3$22.3
Long-term debt 8.912.5
Total net investment hedges$31.2$34.8
Cash flow hedges
Treasury rate lock$(1.0)$(1.1)
Cross currency swap1.72.8
Total cash flow hedges0.71.7
Total net gains in AOCI$31.9$36.5

Derivatives not designated as accounting hedges:

Foreign exchange forwards

The Company also enters into foreign exchange forwards to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than a subsidiary’s functional currency. These forward contracts are not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating (expense) income, net in the Company’s consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary’s functional currency. These contracts have expiration dates at various times through September 2017.

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

March 31,December 31,
20172016
Notional amount of currency pair:SellBuySellBuy
Contracts to purchase USD with euros35.5$37.8-$-
Contracts to sell USD for euros$31.930.0$--
Contracts to sell USD for GBP$278.1£222.5$-£-
Contracts to sell USD for CAD$16.7C$22.3$-C$-
Contracts to purchase euros with Singapore dollarsS$--S$55.536.0
Contracts to sell euros for GBP30.0£25.731.0£25.9
Note: € = Euro, £ = British pound, S$ = Singapore dollar, C$ = Canadian dollar, $ = U.S. dollar

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

Three Months Ended
March 31,
Derivatives Not Designated as Accounting HedgesLocation on Statement of Operations20172016
Foreign exchange forwardsOther non-operating (expense) income, net$(2.3)$0.5

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 LocationMarch 31, 2017December 31, 2016
Assets:
Derivatives designated as accounting hedges:
FX forwards on net investment in certain foreign subsidiariesOther current assets$0.6$0.6
Interest rate swapsOther assets4.57.0
Total derivatives designated as accounting hedges5.17.6
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesOther current assets1.1-
Total assets$6.2$7.6
Liabilities:
Derivatives designated as accounting hedges:
Cross-currency swapOther non-current liabilities$4.1$3.8
Interest rate swapsOther non-current liabilities1.30.8
Total derivatives designated as accounting hedges5.40.8
Non-derivative instrument designated as accounting hedge
Long-term debt designated as net investment hedgeLong-term debt427.8421.9
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesAccounts payable and accrued liabilities0.70.8
Total liabilities$433.9$423.5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
Hedged ItemNature of SwapNotional AmountFloating Interest Rate
As of March 31, 2017As of December 31, 2016
2010 Senior Notes due 2020Pay Floating/Receive Fixed$500.0$500.03-month LIBOR
2014 Senior Notes due 2019Pay Floating/Receive Fixed$450.0$450.03-month LIBOR
2012 Senior Notes due 2022Pay Floating/Receive Fixed$80.0$80.03-month LIBOR
Amount of Income Recognized in the Consolidated Statements of Operations
Three Months Ended
March 31,
Derivatives Designated as Fair Value Accounting HedgesLocation on Consolidated Statement of Operations20172016
Interest rate swapsInterest expense, net$2.4$3.0
Derivatives and Non-Derivative Instruments in Net Investment Hedging RelationshipsAmount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion), net of TaxAmount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion), net of Tax
Three Months EndedThree Months Ended
March 31,March 31,
2017201620172016
FX forwards$-$(4.6)$-$-
Long-term debt(3.6)(13.1)--
Total net investment hedges$(3.6)$(17.7)$-$-
Derivatives in Cash Flow Hedging Relationships
Cross currency swap$(0.2)$1.2$1.0*$1.4*
Treasury rate lock--(0.1)-
Total cash flow hedges$(0.2)$1.2$0.9$1.4
Total $(3.8)$(16.5)$0.9$1.4
*Reflects a$ 1.5 million ($0.5 million tax effect) and $2.2 million ($0.8 million tax effect) gain for 2017 and 2016, respectively, recorded in other non-operating (expense) income, net.
Cumulative Gains/(Losses), net of tax
March 31,December 31,
Net investment hedges20172016
FX forwards $22.3$22.3
Long-term debt 8.912.5
Total net investment hedges$31.2$34.8
Cash flow hedges
Treasury rate lock$(1.0)$(1.1)
Cross currency swap1.72.8
Total cash flow hedges0.71.7
Total net gains in AOCI$31.9$36.5
Three Months Ended
March 31,
Derivatives Not Designated as Accounting HedgesLocation on Statement of Operations20172016
Foreign exchange forwardsOther non-operating (expense) income, net$(2.3)$0.5
Derivative and Non-Derivative Instruments
Balance Sheet LocationMarch 31, 2017December 31, 2016
Assets:
Derivatives designated as accounting hedges:
FX forwards on net investment in certain foreign subsidiariesOther current assets$0.6$0.6
Interest rate swapsOther assets4.57.0
Total derivatives designated as accounting hedges5.17.6
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesOther current assets1.1-
Total assets$6.2$7.6
Liabilities:
Derivatives designated as accounting hedges:
Cross-currency swapOther non-current liabilities$4.1$3.8
Interest rate swapsOther non-current liabilities1.30.8
Total derivatives designated as accounting hedges5.40.8
Non-derivative instrument designated as accounting hedge
Long-term debt designated as net investment hedgeLong-term debt427.8421.9
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesAccounts payable and accrued liabilities0.70.8
Total liabilities$433.9$423.5
March 31,December 31,
20172016
Notional amount of net investment hedges:SellBuySellBuy
Contracts to sell GBP for euros£22.126.4£22.126.4
March 31,December 31,
20172016
Notional amount of currency pair:SellBuySellBuy
Contracts to purchase USD with euros35.5$37.8-$-
Contracts to sell USD for euros$31.930.0$--
Contracts to sell USD for GBP$278.1£222.5$-£-
Contracts to sell USD for CAD$16.7C$22.3$-C$-
Contracts to purchase euros with Singapore dollarsS$--S$55.536.0
Contracts to sell euros for GBP30.0£25.731.0£25.9
Note: € = Euro, £ = British pound, S$ = Singapore dollar, C$ = Canadian dollar, $ = U.S. dollar
Schedule of Interest Rate Swap (Details) (Interest rate swaps [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Dec. 31, 2016
2010 Senior Notes [Member]
 
 
Derivative [Line Items]
 
 
Hedged Item
2010 Senior Notes due 2020 
 
Nature of Swap
Pay Floating/Receive Fixed 
 
Notional amount
$ 500.0 
$ 500.0 
Interest rate description
3-month LIBOR 
 
2012 Senior Notes [Member]
 
 
Derivative [Line Items]
 
 
Hedged Item
2012 Senior Notes due 2022 
 
Nature of Swap
Pay Floating/Receive Fixed 
 
Notional amount
80.0 
80.0 
Interest rate description
3-month LIBOR 
 
2014 Senior Notes (5-Year) [Member]
 
 
Derivative [Line Items]
 
 
Hedged Item
2014 Senior Notes due 2019 
 
Nature of Swap
Pay Floating/Receive Fixed 
 
Notional amount
$ 450.0 
$ 450.0 
Interest rate description
3-month LIBOR 
 
Summary of Net Gain (Loss) on Foreign Exchange Forwards Not Designated as Hedging Instruments and on Interest Rate Swaps Designated as Fair Value Hedges (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Derivatives Designated as Accounting Hedges [Member] |
Interest Rate Swap [Member] |
Interest Expense [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Amount of gain (loss) recognized in income
$ 2.4 
$ 3.0 
Derivatives Not Designated as Accounting Hedges [Member] |
Foreign Exchange Forward [Member] |
Other Nonoperating (Expense) Income [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Amount of gain (loss) recognized in income
$ (2.3)
$ 0.5 
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards, Net Investment Hedging (Detail) (Net Investment Hedging [Member], Contracts to Sell GBP for Euros [Member])
In Millions, unless otherwise specified
Mar. 31, 2017
Sell [Member]
GBP (£)
Dec. 31, 2016
Sell [Member]
GBP (£)
Mar. 31, 2017
Buy [Member]
EUR (€)
Dec. 31, 2016
Buy [Member]
EUR (€)
Derivative [Line Items]
 
 
 
 
Derivative Notional Amount
£ 22.1 
£ 22.1 
€ 26.4 
€ 26.4 
Gains (Losses) Recognized in AOCI and Reclassified from AOCI on Derivatives (Effective Portion) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Derivative Instruments Gain Loss [Line Items]
 
 
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)
$ (3.8)
$ (16.5)
Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)
0.9 
1.4 
Net Investment Hedging [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)
(3.6)
(17.7)
Net Investment Hedging [Member] |
Foreign Exchange Contract [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)
 
(4.6)
Net Investment Hedging [Member] |
Long Term Debt [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)
(3.6)
(13.1)
Cash Flow Hedging [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)
(0.2)
1.2 
Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)
0.9 
1.4 
Cash Flow Hedging [Member] |
Treasury Rate Lock [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)
(0.1)
 
Cash Flow Hedging [Member] |
Cross-Currency Swap [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)
(0.2)
1.2 
Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)
1.0 
1.4 
Cash Flow Hedging [Member] |
Cross-Currency Swap [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)
$ 1.5 
$ 2.2 
Gains (Losses) Recognized in AOCI and Reclassified from AOCI on Derivatives (Effective Portion) (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Derivative Instruments Gain Loss [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
$ 0.9 
$ 1.4 
Cash Flow Hedging [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0.9 
1.4 
Cash Flow Hedging [Member] |
Currency Swap [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
1.0 
1.4 
Cash Flow Hedging [Member] |
Currency Swap [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
1.5 
2.2 
Cash Flow Hedging [Member] |
Currency Swap [Member] |
Tax Effect [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
$ (0.5)
$ (0.8)
Cumulative Amount of Unrecognized Hedge Losses Recorded in Accumulated Other Comprehensive Income (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Derivative [Line Items]
 
 
Cumulative amount of unrecognized hedge losses recorded in AOCI
$ 31.9 
$ 36.5 
Net Investment Hedging [Member]
 
 
Derivative [Line Items]
 
 
Cumulative amount of unrecognized hedge losses recorded in AOCI
31.2 
34.8 
Net Investment Hedging [Member] |
Foreign Exchange Contract [Member]
 
 
Derivative [Line Items]
 
 
Cumulative amount of unrecognized hedge losses recorded in AOCI
22.3 
22.3 
Net Investment Hedging [Member] |
Long-Term Debt [Member]
 
 
Derivative [Line Items]
 
 
Cumulative amount of unrecognized hedge losses recorded in AOCI
8.9 
12.5 
Cash Flow Hedging [Member]
 
 
Derivative [Line Items]
 
 
Cumulative amount of unrecognized hedge losses recorded in AOCI
0.7 
1.7 
Cash Flow Hedging [Member] |
Treasury Rate Lock [Member]
 
 
Derivative [Line Items]
 
 
Cumulative amount of unrecognized hedge losses recorded in AOCI
(1.0)
(1.1)
Cash Flow Hedging [Member] |
Cross-Currency Swap [Member]
 
 
Derivative [Line Items]
 
 
Cumulative amount of unrecognized hedge losses recorded in AOCI
$ 1.7 
$ 2.8 
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards, Cash Flow Hedging (Detail)
In Millions, unless otherwise specified
Dec. 31, 2016
Contracts to Purchase USD with Euros [Member]
Sell [Member]
EUR (€)
Dec. 31, 2016
Contracts to Purchase USD with Euros [Member]
Buy [Member]
USD ($)
Mar. 31, 2017
Contracts to Sell USD for Euros [Member]
Sell [Member]
USD ($)
Mar. 31, 2017
Contracts to Sell USD for Euros [Member]
Buy [Member]
EUR (€)
Mar. 31, 2017
Contracts to Sell US Dollars for GBP [Member]
Sell [Member]
USD ($)
Mar. 31, 2017
Contracts to Sell US Dollars for GBP [Member]
Buy [Member]
GBP (£)
Mar. 31, 2017
Contracts to Sell USD for CAD [Member]
Sell [Member]
USD ($)
Mar. 31, 2017
Contracts to Sell USD for CAD [Member]
Buy [Member]
CAD ($)
Dec. 31, 2016
Contracts to Sell Euros for Other Foreign Currencies [Member]
Sell [Member]
SGD ($)
Dec. 31, 2016
Contracts to Sell Euros for Other Foreign Currencies [Member]
Buy [Member]
EUR (€)
Mar. 31, 2017
Contracts to Sell Euros for GBP [Member]
Sell [Member]
EUR (€)
Dec. 31, 2016
Contracts to Sell Euros for GBP [Member]
Sell [Member]
EUR (€)
Mar. 31, 2017
Contracts to Sell Euros for GBP [Member]
Buy [Member]
GBP (£)
Dec. 31, 2016
Contracts to Sell Euros for GBP [Member]
Buy [Member]
GBP (£)
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Notional Amount
€ 35.5 
$ 37.8 
$ 31.9 
€ 30.0 
$ 278.1 
£ 222.5 
$ 16.7 
$ 22.3 
$ 55.5 
€ 36.0 
€ 30.0 
€ 31.0 
£ 25.7 
£ 25.9 
Fair Value of Derivative Instruments (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Derivatives Fair Value [Line Items]
 
 
Derivatives assets
$ 6.2 
$ 7.6 
Derivatives liabilities
433.9 
423.5 
Derivatives Designated as Accounting Hedges [Member]
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives assets
5.1 
7.6 
Derivatives liabilities
5.4 
0.8 
Derivatives Designated as Accounting Hedges [Member] |
Interest Rate Swap [Member] |
Other Assets [Member]
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives assets
4.5 
7.0 
Derivatives Designated as Accounting Hedges [Member] |
Interest Rate Swap [Member] |
Other Noncurrent Liabilities [Member]
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives liabilities
1.3 
0.8 
Derivatives Designated as Accounting Hedges [Member] |
Net Investment Hedging [Member] |
Foreign Exchange Contract [Member] |
Other Current Assets [Member]
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives assets
0.6 
0.6 
Derivatives Not Designated as Accounting Hedges [Member] |
Foreign Exchange Contract [Member] |
Other Current Assets [Member]
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives assets
1.1 
 
Derivatives Not Designated as Accounting Hedges [Member] |
Foreign Exchange Contract [Member] |
Accounts Payable And Accrued Liabilities [Member]
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives liabilities
0.7 
0.8 
Derivatives Not Designated as Accounting Hedges [Member] |
Cross-Currency Swap [Member] |
Other Noncurrent Liabilities [Member]
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives liabilities
4.1 
3.8 
Non Derivative Designated As Hedging Instrument [Member] |
Net Investment Hedging [Member] |
Long Term Debt [Member]
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives liabilities
$ 427.8 
$ 421.9 
Derivative Instruments And Hedging Activities - Additional Information (Detail) (Derivatives Designated as Accounting Hedges [Member], 2015 Senior Notes [Member])
In Millions, unless otherwise specified
Mar. 31, 2017
Currency Swap [Member]
Cross-Currency Paid [Member]
EUR (€)
Mar. 31, 2017
Currency Swap [Member]
Cross-Currency Received [Member]
USD ($)
Mar. 31, 2017
Net Investment Hedging [Member]
EUR (€)
Derivative [Line Items]
 
 
 
Notional amount
€ 100.0 
$ 110.5 
€ 400.0 
Derivative, swaption interest rate
1.75% 
3.945% 
 
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

NOTE 8. GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

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

Three Months Ended March 31, 2017
MISMAConsolidated
Gross goodwillAccumulated impairment chargeNet goodwillGross goodwillAccumulated impairment chargeNet goodwillGross goodwillAccumulated impairment chargeNet goodwill
Balance at beginning of year$277.0$-$277.0$758.8$(12.2)$746.6$1,035.8$(12.2)$1,023.6
Additions/adjustments---3.6-3.63.6-3.6
Foreign currency translation adjustments(2.8)-(2.8)5.2-5.22.4-2.4
Ending balance$274.2$-$274.2$767.6$(12.2)$755.4$1,041.8$(12.2)$1,029.6
Year ended December 31, 2016
MISMAConsolidated
Gross goodwillAccumulated impairment chargeNet goodwillGross goodwillAccumulated impairment chargeNet goodwillGross goodwillAccumulated impairment chargeNet goodwill
Balance at beginning of year$284.4$-$284.4$704.1$(12.2)$691.9$988.5$(12.2)$976.3
Additions/adjustments---61.0-61.061.0-61.0
Goodwill derecognized upon sale of subsidiary(3.2)-(3.2)---(3.2)-(3.2)
Foreign currency translation adjustments(4.2)-(4.2)(6.3)-(6.3)(10.5)-(10.5)
Ending balance$277.0$-$277.0$758.8$(12.2)$746.6$1,035.8$(12.2)$1,023.6

The 2017 additions/adjustments for the MA segment in the table above relate to the acquisition of the structured finance data and analytics business of SCDM. The 2016 additions/adjustments for the MA segment in the table above relate to the acquisition of GGY. The 2016 goodwill derecognized for the MIS segment in the table above relates to the divestiture of ICTEAS in the fourth quarter of 2016.

Acquired intangible assets and related amortization consisted of:

March 31,December 31,
20172016
Customer relationships$313.2$310.1
Accumulated amortization(128.7)(124.4)
Net customer relationships184.5185.7
Trade secrets29.929.9
Accumulated amortization(26.2)(25.6)
Net trade secrets3.74.3
Software88.887.7
Accumulated amortization(58.3)(54.9)
Net software30.532.8
Trade names74.775.3
Accumulated amortization(21.0)(19.9)
Net trade names53.755.4
Other43.443.5
Accumulated amortization(26.0)(25.3)
Net other17.418.2
Total acquired intangible assets, net$289.8$296.4

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

Amortization expense relating to acquired intangible assets is as follows:

Three Months Ended
March 31,
20172016
Amortization expense$8.5$7.9

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

Year Ending December 31,
2017 (after March 31)$23.8
201826.6
201923.7
202020.9
202120.5
Thereafter174.3
Total estimated future amortization$289.8

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the estimated undiscounted future cash flows are lower than the carrying amount of the related asset, a loss is recognized for the difference between the carrying amount and the estimated fair value of the asset. There were no impairments to intangible assets during the three months ended March 31, 2017 and 2016.

GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Tables)
Three Months Ended March 31, 2017
MISMAConsolidated
Gross goodwillAccumulated impairment chargeNet goodwillGross goodwillAccumulated impairment chargeNet goodwillGross goodwillAccumulated impairment chargeNet goodwill
Balance at beginning of year$277.0$-$277.0$758.8$(12.2)$746.6$1,035.8$(12.2)$1,023.6
Additions/adjustments---3.6-3.63.6-3.6
Foreign currency translation adjustments(2.8)-(2.8)5.2-5.22.4-2.4
Ending balance$274.2$-$274.2$767.6$(12.2)$755.4$1,041.8$(12.2)$1,029.6
Year ended December 31, 2016
MISMAConsolidated
Gross goodwillAccumulated impairment chargeNet goodwillGross goodwillAccumulated impairment chargeNet goodwillGross goodwillAccumulated impairment chargeNet goodwill
Balance at beginning of year$284.4$-$284.4$704.1$(12.2)$691.9$988.5$(12.2)$976.3
Additions/adjustments---61.0-61.061.0-61.0
Goodwill derecognized upon sale of subsidiary(3.2)-(3.2)---(3.2)-(3.2)
Foreign currency translation adjustments(4.2)-(4.2)(6.3)-(6.3)(10.5)-(10.5)
Ending balance$277.0$-$277.0$758.8$(12.2)$746.6$1,035.8$(12.2)$1,023.6
March 31,December 31,
20172016
Customer relationships$313.2$310.1
Accumulated amortization(128.7)(124.4)
Net customer relationships184.5185.7
Trade secrets29.929.9
Accumulated amortization(26.2)(25.6)
Net trade secrets3.74.3
Software88.887.7
Accumulated amortization(58.3)(54.9)
Net software30.532.8
Trade names74.775.3
Accumulated amortization(21.0)(19.9)
Net trade names53.755.4
Other43.443.5
Accumulated amortization(26.0)(25.3)
Net other17.418.2
Total acquired intangible assets, net$289.8$296.4
Three Months Ended
March 31,
20172016
Amortization expense$8.5$7.9
Year Ending December 31,
2017 (after March 31)$23.8
201826.6
201923.7
202020.9
202120.5
Thereafter174.3
Total estimated future amortization$289.8
Activity in Goodwill (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Goodwill [Line Items]
 
 
Beginning balance, Goodwill gross
$ 1,035.8 
$ 988.5 
Additions/adjustments, gross
3.6 
61.0 
Goodwill derecognized, gross
 
(3.2)
Foreign currency translation adjustments, gross
2.4 
(10.5)
Ending balance, Goodwill gross
1,041.8 
1,035.8 
Beginning balance, Accumulated impairment charge
(12.2)
(12.2)
Ending balance, Accumulated impairment charge
(12.2)
(12.2)
Beginning balance, goodwill net
1,023.6 
976.3 
Additions/adjustments
3.6 
61.0 
Goodwill derecognized
 
(3.2)
Foreign currency translation adjustments
2.4 
(10.5)
Ending balance, goodwill net
1,029.6 
1,023.6 
Moodys Investors Service [Member]
 
 
Goodwill [Line Items]
 
 
Beginning balance, Goodwill gross
277.0 
284.4 
Goodwill derecognized, gross
 
(3.2)
Foreign currency translation adjustments, gross
(2.8)
(4.2)
Ending balance, Goodwill gross
274.2 
277.0 
Beginning balance, goodwill net
277.0 
284.4 
Goodwill derecognized
 
(3.2)
Foreign currency translation adjustments
(2.8)
(4.2)
Ending balance, goodwill net
274.2 
277.0 
Moodys Analytics [Member]
 
 
Goodwill [Line Items]
 
 
Beginning balance, Goodwill gross
758.8 
704.1 
Additions/adjustments, gross
3.6 
61.0 
Foreign currency translation adjustments, gross
5.2 
(6.3)
Ending balance, Goodwill gross
767.6 
758.8 
Beginning balance, Accumulated impairment charge
(12.2)
(12.2)
Ending balance, Accumulated impairment charge
(12.2)
(12.2)
Beginning balance, goodwill net
746.6 
691.9 
Additions/adjustments
3.6 
61.0 
Foreign currency translation adjustments
5.2 
(6.3)
Ending balance, goodwill net
$ 755.4 
$ 746.6 
Amortization Expense Relating to Acquired Intangible Assets (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Finite Lived Intangible Assets [Line Items]
 
 
Amortization expense
$ 8.5 
$ 7.9 
Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Schedule Of Actual And Estimated Amortization Expense [Line Items]
 
2017 (after March 31)
$ 23.8 
2018
26.6 
2019
23.7 
2020
20.9 
2021
20.5 
Thereafter
174.3 
Total estimated future amortization
$ 289.8 
FAIR VALUE
FAIR VALUE

NOTE 9. FAIR VALUE

The table below presents information about items that are carried at fair value at March 31, 2017 and December 31, 2016:

Fair Value Measurement as of March 31, 2017
DescriptionBalanceLevel 1Level 2
Assets:
Derivatives (a)$6.2$-$6.2
Money market mutual funds 240.8240.8-
Fixed maturity and open ended mutual funds32.532.5-
Total$279.5$273.3$6.2
Liabilities:
Derivatives (a)$6.1$-$6.1
Total$6.1$-$6.1
Fair Value Measurement as of December 31, 2016
DescriptionBalanceLevel 1Level 2
Assets:
Derivatives (a)$7.6$-$7.6
Money market mutual funds 189.0189.0-
Fixed maturity and open ended mutual funds32.632.6-
Total$229.2$221.6$7.6
Liabilities:
Derivatives (a)$5.4$-$5.4
Total$5.4$-$5.4
(a) Represents FX forwards on certain assets and liabilities and on net investments in certain foreign subsidiaries as well as interest rate swaps and cross-currency swaps as more fully described in Note 7 to the condensed consolidated financial statements.

The money market mutual funds as well as the fixed maturity and open ended mutual funds in the table above are deemed to be ‘available for sale’ under ASC Topic 320 and the fair value of these instruments is determined using Level 1 inputs as defined in the ASC.

FAIR VALUE (Tables)
Financial Instruments Carried at Fair Value on Recurring Basis
Fair Value Measurement as of March 31, 2017
DescriptionBalanceLevel 1Level 2
Assets:
Derivatives (a)$6.2$-$6.2
Money market mutual funds 240.8240.8-
Fixed maturity and open ended mutual funds32.532.5-
Total$279.5$273.3$6.2
Liabilities:
Derivatives (a)$6.1$-$6.1
Total$6.1$-$6.1
Fair Value Measurement as of December 31, 2016
DescriptionBalanceLevel 1Level 2
Assets:
Derivatives (a)$7.6$-$7.6
Money market mutual funds 189.0189.0-
Fixed maturity and open ended mutual funds32.632.6-
Total$229.2$221.6$7.6
Liabilities:
Derivatives (a)$5.4$-$5.4
Total$5.4$-$5.4
(a) Represents FX forwards on certain assets and liabilities and on net investments in certain foreign subsidiaries as well as interest rate swaps and cross-currency swaps as more fully described in Note 7 to the condensed consolidated financial statements.
Financial Instruments Carried at Fair Value on Recurring Basis (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Derivative Contracts
$ 6.2 
$ 7.6 
Money Market Funds
240.8 
189.0 
Fixed maturity and open ended mutual funds
32.5 
32.6 
Total, Assets
279.5 
229.2 
Derivatives, Liabilities
6.1 
5.4 
Total, Liabilities
6.1 
5.4 
Fair Value Inputs Level 1 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Money Market Funds
240.8 
189.0 
Fixed maturity and open ended mutual funds
32.5 
32.6 
Total, Assets
273.3 
221.6 
Fair Value Inputs Level 2 [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Derivative Contracts
6.2 
7.6 
Total, Assets
6.2 
7.6 
Derivatives, Liabilities
6.1 
5.4 
Total, Liabilities
$ 6.1 
$ 5.4 
OTHER BALANCE SHEET INFORMATION
OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

NOTE 11. OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

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

March 31,December 31,
20172016
Other current assets:
Prepaid taxes$175.9$47.0
Prepaid expenses73.365.7
Other20.428.1
Total other current assets$269.6$140.8
March 31,December 31,
20172016
Other assets:
Investments in joint ventures$86.9$26.3
Deposits for real-estate leases11.210.8
Indemnification assets related to acquisitions16.816.5
Mutual funds and fixed deposits33.332.7
Other18.625.9
Total other assets$166.8$112.2
March 31,December 31,
20172016
Accounts payable and accrued liabilities:
Salaries and benefits$96.7$89.3
Incentive compensation48.9151.1
Accrued settlement charge -863.8
Customer credits, advanced payments and advanced billings31.128.4
Self-insurance reserves 10.111.1
Dividends4.578.5
Professional service fees47.040.4
Interest accrued on debt18.559.2
Accounts payable24.128.4
Income taxes40.316.8
Restructuring3.06.3
Pension and other retirement employee benefits7.16.1
Other61.364.9
Total accounts payable and accrued liabilities$392.6$1,444.3
March 31,December 31,
20172016
Other liabilities:
Pension and other retirement employee benefits$272.5$264.1
Deferred rent-non-current portion97.398.3
Interest accrued on UTPs36.234.1
Legacy and other tax matters1.21.2
Other27.027.5
Total other liabilities$434.2$425.2

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

Three Months EndedYear Ended
March 31,December 31,
20172016
Balance January 1,$11.1$19.7
Accruals (reversals), net1.812.1
Payments(2.8)(20.7)
Balance$10.1$11.1

Other Non-Operating (Expense) Income:

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

Three Months Ended
March 31,
20172016
FX (loss) gain$(9.6)$4.0
Joint venture income1.01.9
Other(0.8)(0.3)
Total$(9.4)$5.6

CCXI Gain:

CCXI is a Chinese credit rating agency in which Moody’s acquired a 49% stake in 2006. Moody’s accounts for this investment under the equity method of accounting. On March 21, 2017, CCXI, as part of a strategic business realignment, issued additional capital to its majority shareholder in exchange for a ratings business wholly-owned by the majority shareholder and which has the right to rate a different class of debt instrument in the Chinese market. The capital issuance by CCXI in exchange for this ratings business diluted Moody’s ownership interest in CCXI to 30% of a larger business and resulted in a $59.7 million non-cash, non-taxable gain. The issuance of additional capital by CCXI is treated as if Moody’s sold a 19% interest in CCXI at fair value. The fair value of the 19% interest in CCXI that Moody’s hypothetically sold was estimated using both a discounted cash flow methodology and comparable public company multiples. A DCF analysis requires significant estimates, including projections of future operating results and cash flows based on the budgets and forecasts of CCXI, expected long-term growth rates, terminal values, WACC and the effects of external factors and market conditions.

OTHER BALANCE SHEET INFORMATION (Tables)
March 31,December 31,
20172016
Other current assets:
Prepaid taxes$175.9$47.0
Prepaid expenses73.365.7
Other20.428.1
Total other current assets$269.6$140.8
March 31,December 31,
20172016
Other assets:
Investments in joint ventures$86.9$26.3
Deposits for real-estate leases11.210.8
Indemnification assets related to acquisitions16.816.5
Mutual funds and fixed deposits33.332.7
Other18.625.9
Total other assets$166.8$112.2
March 31,December 31,
20172016
Accounts payable and accrued liabilities:
Salaries and benefits$96.7$89.3
Incentive compensation48.9151.1
Accrued settlement charge -863.8
Customer credits, advanced payments and advanced billings31.128.4
Self-insurance reserves 10.111.1
Dividends4.578.5
Professional service fees47.040.4
Interest accrued on debt18.559.2
Accounts payable24.128.4
Income taxes40.316.8
Restructuring3.06.3
Pension and other retirement employee benefits7.16.1
Other61.364.9
Total accounts payable and accrued liabilities$392.6$1,444.3
March 31,December 31,
20172016
Other liabilities:
Pension and other retirement employee benefits$272.5$264.1
Deferred rent-non-current portion97.398.3
Interest accrued on UTPs36.234.1
Legacy and other tax matters1.21.2
Other27.027.5
Total other liabilities$434.2$425.2
Three Months EndedYear Ended
March 31,December 31,
20172016
Balance January 1,$11.1$19.7
Accruals (reversals), net1.812.1
Payments(2.8)(20.7)
Balance$10.1$11.1
Three Months Ended
March 31,
20172016
FX (loss) gain$(9.6)$4.0
Joint venture income1.01.9
Other(0.8)(0.3)
Total$(9.4)$5.6
Changes in Self Insurance Reserves (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Disclosure Changes in Self Insurance Reserves [Abstract]
 
 
Self-insurance reserves, beginning balance
$ 11.1 
$ 19.7 
Accruals (reversals), net
1.8 
12.1 
Payments
(2.8)
(20.7)
Self-insurance reserves, ending balance
$ 10.1 
$ 11.1 
Other Non-Operating Interest (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Component of Other Expense Income Nonoperating [Line Items]
 
 
FX gain/(loss)
$ (9.6)
$ 4.0 
Joint venture income
1.0 
1.9 
Other
(0.8)
(0.3)
Total
$ (9.4)
$ 5.6 
Other Balance Sheet Information - Additional Detail (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Minority Interest [Line Items]
 
Gain on dilution of Stock in Subsidiary
$ 59.7 
CCXI [Member]
 
Minority Interest [Line Items]
 
Ownership percentage by Parent
30.00% 
Gain on dilution of Stock in Subsidiary
$ 59.7 
CCXI [Member] |
Business Acquisition Year (2006) [Member]
 
Minority Interest [Line Items]
 
Ownership percentage by Parent
49.00% 
Hypothetical percentage sold at fair value
19.00% 
COMPREHENSIVE INCOME RECLASSIFICATION
COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

NOTE 12. COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

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

  Three Months EndedAffected line in the consolidated statement of operations
March 31,March 31,
20172016
  
Gains on cash flow hedges
Cross-currency swap1.52.2Other non-operating (expense) income, net
Treasury rate lock(0.1)-Interest expense, net
Total before income taxes1.42.2
Income tax effect of items above(0.5)(0.8)Provision for income taxes
Total gains on cash flow hedges0.91.4
  
Pension and other retirement benefits
Amortization of actuarial losses and prior service costs included in net income(1.5)(1.6)Operating expense
Amortization of actuarial losses and prior service costs included in net income(0.9)(1.0)SG&A expense
Total before income taxes(2.4)(2.6)
Income tax effect of item above0.91.0Provision for income taxes
Total pension and other retirement benefits(1.5)(1.6)
Total losses included in Net Income attributable to reclassifications out of AOCI$(0.6)$(0.2)

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

Three Months Ended
March 31, 2017
Pension and Other Retirement BenefitsGains / (Losses) on Cash Flow HedgesForeign Currency Translation AdjustmentsGains on Available for Sale SecuritiesTotal
Balance December 31, 2016$(79.5)$1.7$(290.2)$3.1$(364.9)
Other comprehensive income before reclassifications -(0.2)6.90.37.0
Amounts reclassified from AOCI1.5(0.9)-0.6
Other comprehensive income/(loss)1.5(1.1)6.90.37.6
Balance March 31, 2017$(78.0)$0.6$(283.3)$3.4$(357.3)
Three Months Ended
March 31, 2016
Pension and Other Retirement BenefitsGains / (Losses) on Cash Flow HedgesForeign Currency Translation AdjustmentsGains on Available for Sale SecuritiesTotal
Balance December 31, 2015$(85.7)$(1.1)$(256.0)$3.3$(339.5)
Other comprehensive income/(loss) before reclassifications -1.236.00.637.8
Amounts reclassified from AOCI1.6(1.4)--0.2
Other comprehensive income/(loss)1.6(0.2)36.00.638.0
Balance March 31, 2016$(84.1)$(1.3)$(220.0)$3.9$(301.5)
COMPREHENSIVE INCOME RECLASSIFICATIONS (Tables)
  Three Months EndedAffected line in the consolidated statement of operations
March 31,March 31,
20172016
  
Gains on cash flow hedges
Cross-currency swap1.52.2Other non-operating (expense) income, net
Treasury rate lock(0.1)-Interest expense, net
Total before income taxes1.42.2
Income tax effect of items above(0.5)(0.8)Provision for income taxes
Total gains on cash flow hedges0.91.4
  
Pension and other retirement benefits
Amortization of actuarial losses and prior service costs included in net income(1.5)(1.6)Operating expense
Amortization of actuarial losses and prior service costs included in net income(0.9)(1.0)SG&A expense
Total before income taxes(2.4)(2.6)
Income tax effect of item above0.91.0Provision for income taxes
Total pension and other retirement benefits(1.5)(1.6)
Total losses included in Net Income attributable to reclassifications out of AOCI$(0.6)$(0.2)
Three Months Ended
March 31, 2017
Pension and Other Retirement BenefitsGains / (Losses) on Cash Flow HedgesForeign Currency Translation AdjustmentsGains on Available for Sale SecuritiesTotal
Balance December 31, 2016$(79.5)$1.7$(290.2)$3.1$(364.9)
Other comprehensive income before reclassifications -(0.2)6.90.37.0
Amounts reclassified from AOCI1.5(0.9)-0.6
Other comprehensive income/(loss)1.5(1.1)6.90.37.6
Balance March 31, 2017$(78.0)$0.6$(283.3)$3.4$(357.3)
Three Months Ended
March 31, 2016
Pension and Other Retirement BenefitsGains / (Losses) on Cash Flow HedgesForeign Currency Translation AdjustmentsGains on Available for Sale SecuritiesTotal
Balance December 31, 2015$(85.7)$(1.1)$(256.0)$3.3$(339.5)
Other comprehensive income/(loss) before reclassifications -1.236.00.637.8
Amounts reclassified from AOCI1.6(1.4)--0.2
Other comprehensive income/(loss)1.6(0.2)36.00.638.0
Balance March 31, 2016$(84.1)$(1.3)$(220.0)$3.9$(301.5)
Reclassification out of AOCI (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash Flow Hedges, net of tax:
 
 
Losses on cash flow hedges - Pre Tax
$ 1.4 
$ 2.2 
Losses on cash flow hedges - Tax
(0.5)
(0.8)
Losses on cash flow hedges - Net of Tax
0.9 
1.4 
Pension and Other Post-Retirement Benefits, net of tax:
 
 
Amortization of actuarial losses and prior service costs included in net income - Pre Tax
(2.4)
(2.6)
Amortization of actuarial losses and prior service costs included in net income - Tax
0.9 
1.0 
Amortization of actuarial losses and prior service costs included in net income - Net of Tax
(1.5)
(1.6)
Income Loss Attributable to Reclassification Out Of AOCI Net Of Tax
(0.6)
(0.2)
Operating Expense [Member]
 
 
Pension and Other Post-Retirement Benefits, net of tax:
 
 
Amortization of actuarial losses and prior service costs included in net income - Pre Tax
(1.5)
(1.6)
Selling, General and Administrative Expenses [Member]
 
 
Pension and Other Post-Retirement Benefits, net of tax:
 
 
Amortization of actuarial losses and prior service costs included in net income - Pre Tax
(0.9)
(1.0)
Currency Swap [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
Cash Flow Hedges, net of tax:
 
 
Losses on cash flow hedges - Pre Tax
1.5 
2.2 
Treasury Rate Lock [Member] |
Interest Expense [Member]
 
 
Cash Flow Hedges, net of tax:
 
 
Losses on cash flow hedges - Pre Tax
$ (0.1)
 
Changes in Components of Accumulated Other Comprehensive Income (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Gains Losses on Cash Flow Hedges [Member]
Dec. 31, 2016
Gains Losses on Cash Flow Hedges [Member]
Mar. 31, 2016
Gains Losses on Cash Flow Hedges [Member]
Dec. 31, 2015
Gains Losses on Cash Flow Hedges [Member]
Mar. 31, 2017
Pension and Other Retirement Benefits [Member]
Dec. 31, 2016
Pension and Other Retirement Benefits [Member]
Mar. 31, 2016
Pension and Other Retirement Benefits [Member]
Dec. 31, 2015
Pension and Other Retirement Benefits [Member]
Mar. 31, 2017
Foreign Currency Translation Adjustments [Member]
Dec. 31, 2016
Foreign Currency Translation Adjustments [Member]
Mar. 31, 2016
Foreign Currency Translation Adjustments [Member]
Dec. 31, 2015
Foreign Currency Translation Adjustments [Member]
Mar. 31, 2017
Gains on Available for Sale Securities [Member]
Dec. 31, 2016
Gains on Available for Sale Securities [Member]
Mar. 31, 2016
Gains on Available for Sale Securities [Member]
Dec. 31, 2015
Gains on Available for Sale Securities [Member]
Mar. 31, 2017
Parent Company [Member]
Beginning Balance
$ (364.9)
$ (339.5)
$ 0.6 
$ 1.7 
$ (1.3)
$ (1.1)
$ (78.0)
$ (79.5)
$ (84.1)
$ (85.7)
$ (283.3)
$ (290.2)
$ (220.0)
$ (256.0)
$ 3.4 
$ 3.1 
$ 3.9 
$ 3.3 
 
Reclassification adjustment from AOCI, Pension and Other Postretirement Benefit Plans - Net of Tax
1.5 
1.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension and other retirement benefit - Net of Tax
1.5 
1.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gain (losses) on cash flow - Net of Tax
(0.2)
1.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reclassification gain (losses) on cash flow - Net of Tax
(0.9)
(1.4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains/(Losses) on cash flow hedges - Net of Tax
(1.1)
(0.2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments before reclassification - Net of Tax
12.1 
36.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.9 
Foreign currency translation adjustments - Net of Tax
 
36.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.9 
Available for sale securities before reclassification - Net of Tax
0.5 
0.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.3 
Gains on Available for sale securities - Net of Tax
 
0.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.3 
Other comprehensive income/(loss) before reclassifications
 
37.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.0 
Amounts reclassified from AOCI
0.6 
0.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total other comprehensive income (loss) - Net of Tax
13.0 
38.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.6 
Ending Balance
$ (357.3)
$ (301.5)
$ 0.6 
$ 1.7 
$ (1.3)
$ (1.1)
$ (78.0)
$ (79.5)
$ (84.1)
$ (85.7)
$ (283.3)
$ (290.2)
$ (220.0)
$ (256.0)
$ 3.4 
$ 3.1 
$ 3.9 
$ 3.3 
 
PENSION AND OTHER POST-RETIREMENT BENEFITS
PENSION AND OTHER RETIREMENT BENEFITS

NOTE 13. PENSION AND OTHER RETIREMENT BENEFITS

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

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

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

Three Months Ended March 31,
Pension PlansOther Retirement Plans
2017201620172016
Components of net periodic expense
Service cost$4.9$5.2$0.6$0.5
Interest cost4.74.60.30.3
Expected return on plan assets(4.1)(4.3)--
Amortization of net actuarial loss from earlier periods2.42.6--
Amortization of net prior service costs from earlier periods--(0.1)-
Net periodic expense$7.9$8.1$0.8$0.8

The Company made payments of $1.3 million related to its unfunded U.S. DBPPs and $0.2 million to its U.S. other retirement plans during the three months ended March 31, 2017. The Company anticipates making contributions of $10.4 million to its funded pension plan, and payments of $3.8 million and $0.8 million to its unfunded U.S. DBPPs and U.S. other retirement plans, respectively, during the remainder of 2017.

PENSION AND OTHER POST-RETIREMENT BENEFITS (Tables)
Components of Net Periodic Benefit Expense Related to Post-Retirement Plans
Three Months Ended March 31,
Pension PlansOther Retirement Plans
2017201620172016
Components of net periodic expense
Service cost$4.9$5.2$0.6$0.5
Interest cost4.74.60.30.3
Expected return on plan assets(4.1)(4.3)--
Amortization of net actuarial loss from earlier periods2.42.6--
Amortization of net prior service costs from earlier periods--(0.1)-
Net periodic expense$7.9$8.1$0.8$0.8
Components of Net Periodic Benefit Expense Related to Post-Retirement Plans (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Pension Plans Defined Benefit [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost
$ 4.9 
$ 5.2 
Interest cost
4.7 
4.6 
Expected return on plan assets
(4.1)
(4.3)
Amortization of net actuarial loss from earlier periods
2.4 
2.6 
Net periodic expense
7.9 
8.1 
Other Postretirement Benefit Plans Defined Benefit [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost
0.6 
0.5 
Interest cost
0.3 
0.3 
Amortization of net prior service costs from earlier periods
(0.1)
 
Net periodic expense
$ 0.8 
$ 0.8 
Pension and Other Post-Retirement Benefits - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Funded Pension Plans [Member]
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
Estimated additional payments in 2013
$ 10.4 
Unfunded Pension Plans [Member]
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
Defined benefit payment amount
1.3 
Estimated additional payments in 2013
3.8 
Other Postretirement Benefit Plans Defined Benefit [Member]
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
Defined benefit payment amount
0.2 
Estimated additional payments in 2013
$ 0.8 
INDEBTEDNESS
INDEBTEDNESS

NOTE 13. INDEBTEDNESS

The following table summarizes total indebtedness:

March 31, 2017
Principal AmountFair Value of Interest Rate Swap (1)Unamortized (Discount) PremiumUnamortized Debt Issuance CostsCarrying Value
Notes Payable: -
5.50% 2010 Senior Notes, due 2020$500.0$3.7$(1.3)$(1.5)$500.9
4.50% 2012 Senior Notes, due 2022500.0(0.3)(2.3)(2.0)495.4
4.875% 2013 Senior Notes, due 2024500.0-(2.0)(2.6)495.4
2.75% 2014 Senior Notes (5-Year), due 2019450.0(0.2)(0.3)(1.6)447.9
5.25% 2014 Senior Notes (30-Year), due 2044600.0-3.3(5.9)597.4
1.75% 2015 Senior Notes, due 2027 534.8--(3.5)531.3
2.75% 2017 Senior Notes, due 2021500.0-(1.5)(3.8)494.7
2017 Floating Rate Senior Notes, due 2018300.0-(1.1)298.9
Commercial Paper214.0-(0.2)-213.8
Total debt $ 4,098.8 $ 3.2 $ (4.3) $ (22.0)$4,075.7
Current portion(213.8)
Total long-term debt$3,861.9
December 31, 2016
Principal AmountFair Value of Interest Rate Swap (1)Unamortized (Discount) PremiumUnamortized Debt Issuance CostsCarrying Value
Notes Payable:
6.06% Series 2007-1 Notes due 2017$300.0$-$-$$300.0
5.50% 2010 Senior Notes, due 2020500.05.5(1.3)(1.6)502.6
4.50% 2012 Senior Notes, due 2022500.0(0.2)(2.4)(2.1)495.3
4.875% 2013 Senior Notes, due 2024500.0-(2.1)(2.7)495.2
2.75% 2014 Senior Notes (5-Year), due 2019450.00.9(0.4)(1.7)448.8
5.25% 2014 Senior Notes (30-Year), due 2044600.0-3.3(5.9)597.4
1.75% 2015 Senior Notes, due 2027 527.4--(3.7)523.7
Total long-term debt$3,377.4$6.2$(2.9)$(17.7)$3,363.0
Current portion(300.0)
Total long-term debt$3,063.0
(1) The Company has entered into interest rate swaps on the 2010 Senior Notes, the 2012 Senior Notes and the 2014 Senior Notes (5-Year) which are more fully discussed in Note 7 above.

Commercial Paper

On August 3, 2016, the Company entered into a private placement commercial paper program under which the Company may issue CP notes up to a maximum amount of $1.0 billion. Borrowings under the CP Program are backstopped by the 2015 Facility. Amounts under the CP Program may be re-borrowed. The maturity of the CP Notes will vary, but may not exceed 397 days from the date of issue. The CP Notes are sold at a discount from par, or alternatively, sold at par and bear interest at rates that will vary based upon market conditions. The rates of interest will depend on whether the CP Notes will be a fixed or floating rate. The interest on a floating rate may be based on the following: (a) certificate of deposit rate; (b) commercial paper rate; (c) the federal funds rate; (d) the LIBOR; (e) prime rate; (f) Treasury rate; or (g) such other base rate as may be specified in a supplement to the private placement agreement. The CP Program contains certain events of default including, among other things: non-payment of principal, interest or fees; entrance into any form of moratorium; and bankruptcy and insolvency events, subject in certain instances to cure periods. At March 31, 2017, the Company has CP borrowings outstanding of $214.0 million with a weighted average maturity and interest rate of 20 days and 1.29%, respectively.

Notes Payable

On March 2, 2017, the Company issued $300 million aggregate principal amount of senior unsecured notes in a public offering. The 2017 Floating Rate Senior Notes bear interest at a floating rate which is calculated as three-month LIBOR as determined on the interest determination date plus 0.35%. The interest determination date for an interest period will be the second London business day preceding the first day of such interest period. The 2017 Floating Rate Senior Notes will mature on September 4, 2018. Interest on the 2017 Floating Rate Senior Notes will accrue from March 2, 2017, and will be paid quarterly in arrears on June 4, 2017, September 4, 2017, December 4, 2017, March 4, 2018, June 4, 2018 and on the maturity date, to the record holders at the close of business on the business date preceding the interest payment date. The 2017 Floating Rate Senior Notes are not redeemable prior to their maturity.

On March 2, 2017, the Company issued $500 million aggregate principal amount of senior unsecured notes in a public offering. The 2017 Senior Notes bear interest at a fixed rate of 2.75% and mature on December 15, 2021. Interest on the 2017 Senior Notes is due semiannually on June 15 and December 15 of each year, commencing June 15, 2017. The Company may prepay the 2017 Senior Notes, in whole or in part, at any time at a price equity to 100% of the principal amount being prepaid, plus accrued interest and a Make-Whole Amount.

For both the 2017 Floating Rate Senior Notes and 2017 Senior Notes, at the option of the holders of the notes, the Company may be required to purchase all or a portion of the notes upon occurrence of a “Change of Control Triggering Event,” as defined in the 2017 Indenture, at a price equal to 101% of the principal amount, thereof, plus accrued and unpaid interest to the date of purchase. The 2017 Indenture contains covenants that limit the ability of the Company and certain of its subsidiaries to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the 2017 Indenture contains a covenant that limits the ability of the Company to consolidate or merge with another entity or to sell all or substantially all of its assets to another entity. The 2017 Indenture contains customary default provisions. In addition, an event of default will occur if the Company or certain of its subsidiaries fail to pay the principal of any indebtedness (as defined in the 2017 Indenture) when due at maturity in an aggregate amount of $50 million or more, or a default occurs that results in the acceleration of the maturity of the Company’s or certain of its subsidiaries’ indebtedness in an aggregate amount of $50 million or more. Upon the occurrence and during the continuation of an event of default under the 2017 Indenture, the 2017 Floating Rate Senior notes and 2017 Senior Notes may become immediately due and payable either automatically or by the vote of the holders of more than 25% of the aggregate principal amount of all of the notes then outstanding.

In the first quarter of 2017, the Company repaid the Series 2007-1 Notes along with a Make-Whole Amount of approximately $7 million.

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

Year Ended December 31,2010 Senior Notes2012 Senior Notes2013 Senior Notes2014 Senior Notes (5-Year)2014 Senior Notes (30-Year)2015 Senior Notes (1)2017 Floating Rate Senior Notes2017 Senior NotesCommercial PaperTotal
2017 (after March 31,)$-$-$-$-$ - $ - $ - $ - $ 214.0 $ 214.0
2018---- - - 300.0 - - 300.0
2019---450.0 - - - - - 450.0
2020500.0--- - - - - - 500.0
2021----- - - 500.0 - 500.0
Thereafter-500.0500.0-600.0534.8-- - 2,134.8
Total$500.0$500.0$500.0$450.0$600.0$534.8$300.0$500.0$214.0$4,098.8
(1) Based on end of quarter FX rates

Interest expense, net

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

Three Months Ended
March 31,
20172016
Income$4.1$2.9
Expense on borrowings (44.7)(34.6)
UTPs and other tax related liabilities (2.1)(2.8)
Capitalized0.30.4
Total$(42.4)$(34.1)

The following table shows the cash paid for interest:

Three Months Ended
March 31,
20172016
Interest paid*$74.7$67.1
* Amount in 2017 includes an approximate $7 million Make-Whole Amount relating to the early repayment of the Series 2007-1 Notes

The fair value and carrying value of the Company’s long-term debt as of March 31, 2017 and December 31, 2016 are as follows:

March 31, 2017December 31, 2016
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
Series 2007-1 Notes$-$-$300.0 $ 308.9
2010 Senior Notes500.9547.9502.6548.3
2012 Senior Notes495.4537.2495.3535.3
2013 Senior Notes495.4546.2495.2539.9
2014 Senior Notes (5-Year) 447.9455.7448.8456.2
2014 Senior Notes (30-Year) 597.4666.2597.4661.5
2015 Senior Notes531.3547.7523.7534.8
2017 Senior Notes (5-Year)494.7499.7--
2017 Floating Rate Senior Notes298.9300.5--
Total$3,861.9$4,101.1$3,363.0$3,584.9

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

INDEBTEDNESS (Tables)
March 31, 2017
Principal AmountFair Value of Interest Rate Swap (1)Unamortized (Discount) PremiumUnamortized Debt Issuance CostsCarrying Value
Notes Payable: -
5.50% 2010 Senior Notes, due 2020$500.0$3.7$(1.3)$(1.5)$500.9
4.50% 2012 Senior Notes, due 2022500.0(0.3)(2.3)(2.0)495.4
4.875% 2013 Senior Notes, due 2024500.0-(2.0)(2.6)495.4
2.75% 2014 Senior Notes (5-Year), due 2019450.0(0.2)(0.3)(1.6)447.9
5.25% 2014 Senior Notes (30-Year), due 2044600.0-3.3(5.9)597.4
1.75% 2015 Senior Notes, due 2027 534.8--(3.5)531.3
2.75% 2017 Senior Notes, due 2021500.0-(1.5)(3.8)494.7
2017 Floating Rate Senior Notes, due 2018300.0-(1.1)298.9
Commercial Paper214.0-(0.2)-213.8
Total debt $ 4,098.8 $ 3.2 $ (4.3) $ (22.0)$4,075.7
Current portion(213.8)
Total long-term debt$3,861.9
December 31, 2016
Principal AmountFair Value of Interest Rate Swap (1)Unamortized (Discount) PremiumUnamortized Debt Issuance CostsCarrying Value
Notes Payable:
6.06% Series 2007-1 Notes due 2017$300.0$-$-$$300.0
5.50% 2010 Senior Notes, due 2020500.05.5(1.3)(1.6)502.6
4.50% 2012 Senior Notes, due 2022500.0(0.2)(2.4)(2.1)495.3
4.875% 2013 Senior Notes, due 2024500.0-(2.1)(2.7)495.2
2.75% 2014 Senior Notes (5-Year), due 2019450.00.9(0.4)(1.7)448.8
5.25% 2014 Senior Notes (30-Year), due 2044600.0-3.3(5.9)597.4
1.75% 2015 Senior Notes, due 2027 527.4--(3.7)523.7
Total long-term debt$3,377.4$6.2$(2.9)$(17.7)$3,363.0
Current portion(300.0)
Total long-term debt$3,063.0
(1) The Company has entered into interest rate swaps on the 2010 Senior Notes, the 2012 Senior Notes and the 2014 Senior Notes (5-Year) which are more fully discussed in Note 7 above.
Year Ended December 31,2010 Senior Notes2012 Senior Notes2013 Senior Notes2014 Senior Notes (5-Year)2014 Senior Notes (30-Year)2015 Senior Notes (1)2017 Floating Rate Senior Notes2017 Senior NotesCommercial PaperTotal
2017 (after March 31,)$-$-$-$-$ - $ - $ - $ - $ 214.0 $ 214.0
2018---- - - 300.0 - - 300.0
2019---450.0 - - - - - 450.0
2020500.0--- - - - - - 500.0
2021----- - - 500.0 - 500.0
Thereafter-500.0500.0-600.0534.8-- - 2,134.8
Total$500.0$500.0$500.0$450.0$600.0$534.8$300.0$500.0$214.0$4,098.8
(1) Based on end of quarter FX rates
Three Months Ended
March 31,
20172016
Income$4.1$2.9
Expense on borrowings (44.7)(34.6)
UTPs and other tax related liabilities (2.1)(2.8)
Capitalized0.30.4
Total$(42.4)$(34.1)
Three Months Ended
March 31,
20172016
Interest paid*$74.7$67.1
* Amount in 2017 includes an approximate $7 million Make-Whole Amount relating to the early repayment of the Series 2007-1 Notes
March 31, 2017December 31, 2016
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
Series 2007-1 Notes$-$-$300.0 $ 308.9
2010 Senior Notes500.9547.9502.6548.3
2012 Senior Notes495.4537.2495.3535.3
2013 Senior Notes495.4546.2495.2539.9
2014 Senior Notes (5-Year) 447.9455.7448.8456.2
2014 Senior Notes (30-Year) 597.4666.2597.4661.5
2015 Senior Notes531.3547.7523.7534.8
2017 Senior Notes (5-Year)494.7499.7--
2017 Floating Rate Senior Notes298.9300.5--
Total$3,861.9$4,101.1$3,363.0$3,584.9
Summary of Total Indebtedness (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Principal Amount
$ 4,098.8 
$ 3,377.4 
Fair Value of Interest Rate Swap
3.2 
6.2 
Unamortized (Discount) Premium
(4.3)
(2.9)
Unamortized Debt Issuance Costs
(22.0)
(17.7)
Total Debt
4,075.7 
 
Current portion
(213.8)
 
Total long-term debt
3,861.9 
3,363.0 
Current portion of long-term debt
 
(300.0)
Total long-term debt, non-current
3,861.9 
3,063.0 
Commercial Paper [Member]
 
 
Debt Instrument [Line Items]
 
 
Principal Amount
214.0 
 
Unamortized Debt Issuance Costs
(0.2)
 
Total Debt
213.8 
 
Series 2007-1 Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Principal Amount
 
300.0 
Total long-term debt
 
300.0 
2010 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Principal Amount
500.0 
500.0 
Fair Value of Interest Rate Swap
3.7 
5.5 
Unamortized (Discount) Premium
(1.3)
(1.3)
Unamortized Debt Issuance Costs
(1.5)
(1.6)
Total long-term debt
500.9 
502.6 
2012 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Principal Amount
500.0 
500.0 
Fair Value of Interest Rate Swap
(0.3)
(0.2)
Unamortized (Discount) Premium
(2.3)
(2.4)
Unamortized Debt Issuance Costs
(2.0)
(2.1)
Total long-term debt
495.4 
495.3 
2013 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Principal Amount
500.0 
500.0 
Unamortized (Discount) Premium
(2.0)
(2.1)
Unamortized Debt Issuance Costs
(2.6)
(2.7)
Total long-term debt
495.4 
495.2 
2014 Senior Notes (5-Year) [Member]
 
 
Debt Instrument [Line Items]
 
 
Principal Amount
450.0 
450.0 
Fair Value of Interest Rate Swap
(0.2)
0.9 
Unamortized (Discount) Premium
(0.3)
(0.4)
Unamortized Debt Issuance Costs
(1.6)
(1.7)
Total long-term debt
447.9 
448.8 
2014 Senior Notes (30-Year) [Member]
 
 
Debt Instrument [Line Items]
 
 
Principal Amount
600.0 
600.0 
Unamortized (Discount) Premium
3.3 
3.3 
Unamortized Debt Issuance Costs
(5.9)
(5.9)
Total long-term debt
597.4 
597.4 
2015 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Principal Amount
534.8 
527.4 
Unamortized Debt Issuance Costs
(3.5)
(3.7)
Total long-term debt
531.3 
523.7 
2017 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Principal Amount
500.0 
 
Unamortized (Discount) Premium
(1.5)
 
Unamortized Debt Issuance Costs
(3.8)
 
Total long-term debt
494.7 
 
2017 Floating Rate Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Principal Amount
300.0 
 
Unamortized Debt Issuance Costs
(1.1)
 
Total long-term debt
$ 298.9 
 
Summary of Total Indebtedness (Parenthetical) (Detail)
Mar. 31, 2017
Dec. 31, 2016
Series 2007-1 Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes Payable, interest rate
 
6.06% 
2010 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes Payable, interest rate
5.50% 
5.50% 
2012 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes Payable, interest rate
4.50% 
4.50% 
2013 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes Payable, interest rate
4.875% 
4.875% 
2014 Senior Notes (5-Year) [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes Payable, interest rate
2.75% 
2.75% 
2014 Senior Notes (30-Year) [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes Payable, interest rate
5.25% 
5.25% 
2015 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes Payable, interest rate
1.75% 
1.75% 
2017 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes Payable, interest rate
2.75% 
 
Principal Payments Due on Long-Term Borrowings (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
2017 (after March 31,)
$ 214.0 
 
2018
300.0 
 
2019
450.0 
 
2020
500.0 
 
2021
500.0 
 
Thereafter
2,134.8 
 
Total principal payment
4,098.8 
3,377.4 
Commercial Paper [Member]
 
 
Debt Instrument [Line Items]
 
 
2017 (after March 31,)
214.0 
 
Total principal payment
214.0 
 
2010 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
2020
500.0 
 
Total principal payment
500.0 
500.0 
2012 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Thereafter
500.0 
 
Total principal payment
500.0 
500.0 
2013 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Thereafter
500.0 
 
Total principal payment
500.0 
500.0 
2014 Senior Notes (5-Year) [Member]
 
 
Debt Instrument [Line Items]
 
 
2019
450.0 
 
Total principal payment
450.0 
450.0 
2014 Senior Notes (30-Year) [Member]
 
 
Debt Instrument [Line Items]
 
 
Thereafter
600.0 
 
Total principal payment
600.0 
600.0 
2015 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Thereafter
534.8 
 
Total principal payment
534.8 
527.4 
2017 Floating Rate Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
2018
300.0 
 
Total principal payment
300.0 
 
2017 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
2021
500.0 
 
Total principal payment
$ 500.0 
 
Summary of Components of Interest as Presented in Consolidated Statements of Operations (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Debt Instrument [Line Items]
 
 
Income
$ 4.1 
$ 2.9 
Expense on borrowings
(44.7)
(34.6)
Income (expense) on UTPs and other tax related liabilities
(2.1)
(2.8)
Capitalized
0.3 
0.4 
Total
$ (42.4)
$ (34.1)
Fair Value and Carrying Value of Long-Term Debt (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Long term debt
$ 3,861.9 
$ 3,363.0 
Estimated Fair Value
4,101.1 
3,584.9 
Series 2007-1 Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt
 
300.0 
Estimated Fair Value
 
308.9 
2010 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt
500.9 
502.6 
Estimated Fair Value
547.9 
548.3 
2012 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt
495.4 
495.3 
Estimated Fair Value
537.2 
535.3 
2013 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt
495.4 
495.2 
Estimated Fair Value
546.2 
539.9 
2014 Senior Notes (5-Year) [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt
447.9 
448.8 
Estimated Fair Value
455.7 
456.2 
2014 Senior Notes (30-Year) [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt
597.4 
597.4 
Estimated Fair Value
666.2 
661.5 
2015 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt
531.3 
523.7 
Estimated Fair Value
547.7 
534.8 
2017 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt
494.7 
 
Estimated Fair Value
499.7 
 
2017 Floating Rate Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Long term debt
298.9 
 
Estimated Fair Value
$ 300.5 
 
Indebtedness - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Mar. 31, 2017
Commercial Paper [Member]
Mar. 31, 2017
Commercial Paper [Member]
Maximum [Member]
Mar. 31, 2017
Commercial Paper [Member]
Weighted Average Interest Rate [Member]
Mar. 31, 2017
2017 Floating Rate Senior Notes [Member]
Mar. 31, 2017
2017 Senior Notes [Member]
Mar. 31, 2017
Series 2007-1 Notes [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
Senior unsecured revolving credit facility
 
 
$ 1,000.0 
 
 
 
 
 
Debt, aggregate principal amount
4,098.8 
3,377.4 
214.0 
 
 
300.0 
500.0 
 
Senior Unsecured Notes, interest
 
 
 
 
 
 
2.75% 
 
Maturity date of Senior Unsecured Notes
 
 
 
 
 
Sep. 04, 2018 
Dec. 15, 2021 
 
Issuance Date of Debt
 
 
Aug. 03, 2016 
 
 
Mar. 02, 2017 
Mar. 02, 2017 
 
Prepayment penalities of notes
 
 
 
 
 
 
 
7.0 
Debt aggregate amount for default in principal, interest or fail to pay
 
 
 
 
 
$ 50.0 
$ 50.0 
 
Percentage of principal amount being prepaid plus accrued and unpaid interest
 
 
 
 
 
100.00% 
100.00% 
 
Percentage of Principal Amount Plus Accrued and Unpaid Interest to Date of Purchase
 
 
 
 
 
101.00% 
101.00% 
 
Minimum Percentage of Aggregate Principal Amount
 
 
 
 
 
25.00% 
25.00% 
 
Term of notes
 
 
 
397 days 
20 days 
 
 
 
Commercial paper, interest rate
 
 
1.29% 
 
 
 
 
 
Percentage Included in Calculation of Senior Notes Floating Rate Plus LIBOR
 
 
 
 
 
0.35% 
 
 
CONTINGENCIES
CONTINGENCIES

NOTE 14. CONTINGENCIES

Given the nature of their activities, Moody’s and its subsidiaries are subject to legal and tax proceedings, governmental, regulatory and legislative investigations and inquiries, and claims and litigation that are based on ratings assigned by MIS or that are otherwise incidental to the Company’s business. They periodically receive and respond to subpoenas and other inquiries which may relate to Moody’s activities or to activities of others that may result in claims and litigation, proceedings or investigations by private litigants or governmental, regulatory or legislative authorities. Moody’s also is subject to ongoing tax audits as addressed in Note 3 to the financial statements.

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

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

SEGMENT INFORMATION
SEGMENT INFORMATION

NOTE 16 SEGMENT INFORMATION

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

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

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

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

Financial Information by Segment

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

Three Months Ended March 31,
20172016
MISMAEliminationsConsolidatedMISMAEliminationsConsolidated
Revenue$694.2$310.7$(29.7)$975.2$549.1$293.8$(26.8)$816.1
Operating, SG&A288.3240.7(29.7)499.3278.6230.3(26.8)482.1
Adjusted Operating Income405.970.0-475.9270.563.5-334.0
Less:
Depreciation and amortization18.913.6-32.517.512.4-29.9
Operating income$387.0$56.4$-$443.4$253.0$51.1$-$304.1

MIS and MA Revenue by Line of Business

The table below presents revenue by LOB within each reportable segment:

Three Months Ended March 31,
20172016
MIS:
Corporate finance (CFG)$352.8$240.3
Structured finance (SFG)100.290.6
Financial institutions (FIG)112.394.9
Public, project and infrastructure finance (PPIF)98.191.5
Total ratings revenue663.4517.3
MIS Other4.87.8
Total external revenue668.2525.1
Intersegment royalty26.024.0
Total694.2549.1
MA:
Research, data and analytics (RD&A)175.4164.9
Enterprise risk solutions (ERS)95.989.5
Professional services (PS)35.736.6
Total external revenue307.0291.0
Intersegment revenue3.72.8
Total310.7293.8
Eliminations(29.7)(26.8)
Total MCO$975.2$816.1

Consolidated Revenue Information by Geographic Area:
Three Months Ended March 31,
20172016
Revenue
United States$577.8$480.0
International:
EMEA236.3210.2
Asia-Pacific99.482.0
Americas61.743.9
Total International397.4336.1
Total$975.2$816.1
SEGMENT INFORMATION (Tables)
Three Months Ended March 31,
20172016
MISMAEliminationsConsolidatedMISMAEliminationsConsolidated
Revenue$694.2$310.7$(29.7)$975.2$549.1$293.8$(26.8)$816.1
Operating, SG&A288.3240.7(29.7)499.3278.6230.3(26.8)482.1
Adjusted Operating Income405.970.0-475.9270.563.5-334.0
Less:
Depreciation and amortization18.913.6-32.517.512.4-29.9
Operating income$387.0$56.4$-$443.4$253.0$51.1$-$304.1
Three Months Ended March 31,
20172016
MIS:
Corporate finance (CFG)$352.8$240.3
Structured finance (SFG)100.290.6
Financial institutions (FIG)112.394.9
Public, project and infrastructure finance (PPIF)98.191.5
Total ratings revenue663.4517.3
MIS Other4.87.8
Total external revenue668.2525.1
Intersegment royalty26.024.0
Total694.2549.1
MA:
Research, data and analytics (RD&A)175.4164.9
Enterprise risk solutions (ERS)95.989.5
Professional services (PS)35.736.6
Total external revenue307.0291.0
Intersegment revenue3.72.8
Total310.7293.8
Eliminations(29.7)(26.8)
Total MCO$975.2$816.1

Three Months Ended March 31,
20172016
MIS:
Corporate finance (CFG)$352.8$240.3
Structured finance (SFG)100.290.6
Financial institutions (FIG)112.394.9
Public, project and infrastructure finance (PPIF)98.191.5
Total ratings revenue663.4517.3
MIS Other4.87.8
Total external revenue668.2525.1
Intersegment royalty26.024.0
Total694.2549.1
MA:
Research, data and analytics (RD&A)175.4164.9
Enterprise risk solutions (ERS)95.989.5
Professional services (PS)35.736.6
Total external revenue307.0291.0
Intersegment revenue3.72.8
Total310.7293.8
Eliminations(29.7)(26.8)
Total MCO$975.2$816.1
Consolidated Revenue Information by Geographic Area:
Three Months Ended March 31,
20172016
Revenue
United States$577.8$480.0
International:
EMEA236.3210.2
Asia-Pacific99.482.0
Americas61.743.9
Total International397.4336.1
Total$975.2$816.1
Financial Information by Segment (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Segment Reporting Information [Line Items]
 
 
Revenues
$ 975.2 
$ 816.1 
Operating, SG&A
499.3 
482.1 
Adjusted Operating Income
475.9 
334.0 
Depreciation and amortization
32.5 
29.9 
Operating Income
443.4 
304.1 
Moodys Investors Service [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
694.2 
549.1 
Operating, SG&A
288.3 
278.6 
Adjusted Operating Income
405.9 
270.5 
Depreciation and amortization
18.9 
17.5 
Operating Income
387.0 
253.0 
Moodys Analytics [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
310.7 
293.8 
Operating, SG&A
240.7 
230.3 
Adjusted Operating Income
70.0 
63.5 
Depreciation and amortization
13.6 
12.4 
Operating Income
56.4 
51.1 
Intersegment Elimination [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
(29.7)
(26.8)
Operating, SG&A
$ (29.7)
$ (26.8)
Revenue by Line of Business within Each Reportable Segment (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Segment Reporting Information [Line Items]
 
 
Revenues
$ 975.2 
$ 816.1 
Moodys Investors Service [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
694.2 
549.1 
Moodys Investors Service [Member] |
Corporate Finance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
352.8 
240.3 
Moodys Investors Service [Member] |
Structured Finance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
100.2 
90.6 
Moodys Investors Service [Member] |
Financial Institutions [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
112.3 
94.9 
Moodys Investors Service [Member] |
Public Project And Infrastructure Finance [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
98.1 
91.5 
Moodys Investors Service [Member] |
Rating Revenue [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
663.4 
517.3 
Moodys Investors Service [Member] |
MIS Other [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
4.8 
7.8 
Moodys Investors Service [Member] |
External Revenues [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
668.2 
525.1 
Moodys Investors Service [Member] |
Intersegment Royality [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
26.0 
24.0 
Moodys Analytics [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
310.7 
293.8 
Moodys Analytics [Member] |
Research Data And Analytics [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
175.4 
164.9 
Moodys Analytics [Member] |
Enterprise Risk Solutions [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
95.9 
89.5 
Moodys Analytics [Member] |
Professional Services [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
35.7 
36.6 
Moodys Analytics [Member] |
External Revenues [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
307.0 
291.0 
Moodys Analytics [Member] |
Intersegment Royality [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
3.7 
2.8 
Intersegment Elimination [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
$ (29.7)
$ (26.8)
Consolidated Revenue Information by Geographic Area (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Segment Reporting Information [Line Items]
 
 
Revenues
$ 975.2 
$ 816.1 
U S
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
577.8 
480.0 
International Regions [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
397.4 
336.1 
International Regions [Member] |
Europe Middle East And Africa [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
236.3 
210.2 
International Regions [Member] |
Asia Pacific [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
99.4 
82.0 
International Regions [Member] |
Americas [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues
$ 61.7 
$ 43.9 
RECENTLY ISSUED ACCOUNTING STANDARDS
RECENTLY ISSUED ACCOUNTING STANDARDS

NOTE 16. RECENTLY ISSUED ACCOUNTING STANDARDS

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. This ASU outlines a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14 “Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date” which defers the effective date of the ASU for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted up to the original effective date of December 15, 2016. In addition, during 2016, the FASB issued additional updates clarifying the implementation guidance for the new revenue recognition standard.

The Company intends to adopt the new revenue guidance as of January 1, 2018 using the modified retrospective transition method. Under this adoption method, the Company will record a cumulative adjustment to retained earnings at January 1, 2018 and apply the provisions of the ASU prospectively. Currently, the Company believes this ASU will have an impact on, which is not limited to: i) the accounting for certain software subscription revenue in MA whereby the license rights within the arrangement would be recognized at the inception of the contract based on estimated stand-alone selling price with the remainder recognized over the subscription period (compared to ASC 605 whereby all software subscription revenue is currently recognized over the subscription period); ii) the accounting for certain ERS revenue arrangements where VSOE is not currently available under ASC 605 would result in the acceleration of revenue recognition (compared to ASC 605 whereby revenue is currently deferred due to lack of VSOE); iii) the capitalization of software implementation project costs to fulfill a contract for its ERS business which will be expensed as incurred under the new standard; and iv.) the amortization period for capitalized costs to obtain a contract in the MA segment.

At March 31, 2017, the Company is progressing in assessing and documenting key changes to judgmental areas of its accounting policies relating to the adoption of the new revenue accounting standard. However, the quantitative impact of adopting this ASU is not currently known or reasonably estimable as the impact will be heavily dependent upon the status of contracts in-process primarily within the Company’s ERS LOB as of the date of adoption (the Company does not have any material software implementation arrangements with terms longer than two years). Furthermore, the Company is in the process of upgrading its IT infrastructure in order to support the accounting under the new standard as well as assessing the impact that the new standard will have on its processes and internal controls.

In January 2016, the FASB issued ASU No. 2016-01 “Financial Instruments—Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities”. The amendments in this ASU update various aspects of recognition, measurement, presentation and disclosures relating to financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of this ASU on the Company’s financial statements. The Company believes that the most pertinent impact to its financial statements upon the adoption of this ASU will relate to the discontinuance of the available-for-sale classification for investments in equity securities (unrealized gains and losses were recorded through OCI). Accordingly, subsequent to adoption of this ASU, changes in the fair value of equity securities held by the Company will be recorded through earnings.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” requiring lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows will depend on classification as either a finance or operating lease. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. This standard must be adopted using a modified retrospective approach whereby leases will be presented in accordance with the new standard as of the earliest period presented. The Company is currently evaluating the impact of this ASU on the Company’s financial statements. The Company believes that the most notable impact to its financial statements upon the adoption of this ASU will be the recognition of a material right-of-use asset and lease liability for its real estate leases.

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

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments”. This ASU adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows with the intent to alleviate diversity in practice for classifying various types of cash flows. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The Company will apply this clarification guidance in its statements of cash flows upon adoption.

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805), Clarifying the Definition of a Business”. This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017 and should be applied prospectively. Upon adoption, the Company will apply the guidance in this ASU when evaluating whether acquired assets and activities constitute a business.

In March 2017, the FASB issued ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". This ASU impacts the presentation of net periodic pension costs in the statement of operations. Entities will be required to report the service cost component in the same line item or items as other compensation costs (either Operating or SG&A in Moody’s statement of operations). The other components of net benefit cost are required to be presented in the statement of operations separately from the service cost component and outside of operating income. The ASU permits only the service cost component of net periodic pension cost to be eligible for capitalization, when applicable. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017. Upon adoption, the Company will bifurcate its net periodic pension costs reported in its statements of operations in accordance with this ASU.

SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

NOTE 17. SUBSEQUENT EVENT

On April 25, 2017, the Board approved the declaration of a quarterly dividend of $0.38 per share of Moody’s common stock, payable on June 12, 2017 to shareholders of record at the close of business on May 22, 2017.

Subsequent Events - Additional Information (Detail)
3 Months Ended
Mar. 31, 2017
Dividends Payable [Line Items]
 
Dividend declared, per share
$ 0.38 
Dividend declared, declaration date
Apr. 25, 2017 
Dividend declared, payable date
Jun. 12, 2017 
Dividend declared, record date
May 22, 2017