MOODYS CORP /DE/, 10-K filed on 2/26/2015
Annual Report
Document and Entity Information (USD $)
In Billions, except Share data in Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Document Information [Line Items]
 
Document Type
10-K 
Amendment Flag
false 
Document Period End Date
Dec. 31, 2014 
Document Fiscal Year Focus
2014 
Document Fiscal Period Focus
FY 
Trading Symbol
MCO 
Entity Registrant Name
MOODYS CORP /DE/ 
Entity Central Index Key
0001059556 
Current Fiscal Year End Date
--12-31 
Entity Well-known Seasoned Issuer
No 
Entity Current Reporting Status
Yes 
Entity Voluntary Filers
No 
Entity Filer Category
Large Accelerated Filer 
Entity Common Stock, Shares Outstanding
213.7 
Entity Public Float
$ 18.5 
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Revenue
$ 3,334,300,000 
$ 2,972,500,000 
$ 2,730,300,000 
Expenses
 
 
 
Operating
930,300,000 
822,400,000 
795,000,000 
Selling, general and administrative
869,300,000 
822,100,000 
752,200,000 
Goodwill impairment charge
   
   
12,200,000 
Depreciation and amortization
95,600,000 
93,400,000 
93,500,000 
Total expenses
1,895,200,000 
1,737,900,000 
1,652,900,000 
Operating income
1,439,100,000 
1,234,600,000 
1,077,400,000 
Interest income (expense), net
(116,800,000)
(91,800,000)
(63,800,000)
Other non-operating income (expense), net
35,900,000 
26,500,000 
10,400,000 
Non-operating income (expense), net
21,900,000 
(65,300,000)
(53,400,000)
Income before provision for income taxes
1,461,000,000 
1,169,300,000 
1,024,000,000 
Provision for income taxes
455,000,000 
353,400,000 
324,300,000 
Net income
1,006,000,000 
815,900,000 
699,700,000 
Less: Net income attributable to noncontrolling interests
17,300,000 
11,400,000 
9,700,000 
Net income attributable to Moody's
988,700,000 
804,500,000 
690,000,000 
Earnings per share
 
 
 
Basic
$ 4.69 
$ 3.67 
$ 3.09 
Diluted
$ 4.61 
$ 3.6 
$ 3.05 
Weighted average shares outstanding
 
 
 
Basic
210.7 
219.4 
223.2 
Diluted
214.7 
223.5 
226.6 
ICRA Gain
$ 102,800,000 
$ 0 
$ 0 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net income
$ 1,006.0 
$ 815.9 
$ 699.7 
Foreign currency translation adjustment-Pre Tax Amount
(155.3)
(15.8)
35.4 
Foreign currency translation adjustment-Tax Amount
(2.2)
(0.6)
0.2 
Foreign currency translation adjustments-Net of Tax
(153.1)
(15.2)
35.2 
Cash Flow And Net Investment Hedges [Abstract]
 
 
 
Net unrealized gain (losses) on cash flow and net investment hedges- Pre Tax
32.3 
6.3 
(3.9)
Net unrealized gain (losses) on cash flow and net investment hedges-Tax Amount
(12.9)
(2.6)
1.6 
Net unrealized losses on cash flow and net investment hedges
19.4 
3.7 
(2.3)
Reclassification of losses included in net income-Pre Tax
0 
1.2 
4.1 
Reclassification of losses included in net income-Tax Amount
0 
(0.5)
(1.7)
Reclassification of losses included in net income - Net of Tax
0 
0.7 
2.4 
Pension and Other Retirement Benefits Net of Tax [Abstract]
 
 
 
Amortization of actuarial losses and prior service costs included in net income (pre-tax)
7.3 
11.9 
10.0 
Amortization of actuarial losses and prior service costs included in net income (tax)
(2.8)
(4.9)
(4.1)
Amortization of actuarial losses and prior service costs included in net income
4.5 
7.0 
5.9 
Net actuarial losses and prior service costs (pre-tax)
(93.8)
50.9 
(26.0)
Net actuarial losses and prior service costs (tax)
37.1 
(21.0)
11.2 
Net actuarial losses and prior service costs
(56.7)
29.9 
(14.8)
Total other comprehensive income (loss)-Pre Tax
(204.2)
55.9 
19.6 
Net current period other comprehensive income/(loss)
23.6 
(28.4)
6.8 
Total other comprehensive income (loss)-Net of Tax
(180.6)
27.5 
26.4 
Comprehensive income (loss)
825.4 
843.4 
726.1 
Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest
17.3 
11.4 
10.7 
Comprehensive income attributable to Moody's
808.1 
832.0 
715.4 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax
4.4 
1.4 
0 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax
0 
0 
0 
Total Reclassifications
4.4 
1.4 
0 
Available for sale securities [Abstract]
 
 
 
Unrealized Gains On Available For Sale Securities Pre Tax
1.0 
0 
0 
Unrealized Gains On Available For Sale Securities Tax
0 
0 
0 
Unrealized Gains On Available For Sale Securities Net Of Tax
1.0 
0 
0 
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
(0.1)
0 
0 
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Tax
0 
0 
0 
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Net Of Tax
$ (0.1)
$ 0 
$ 0 
CONSOLIDATED BALANCE SHEETS (USD $)
Dec. 31, 2014
Dec. 31, 2013
Current assets:
 
 
Cash and cash equivalents
$ 1,219,500,000 
$ 1,919,500,000 
Short-term investments
458,100,000 
186,800,000 
Accounts receivable, net of allowances of $29.1 in 2012 and $28.0 in 2011
792,400,000 
694,200,000 
Deferred tax assets, net
43,900,000 
53,900,000 
Other current assets
172,500,000 
114,400,000 
Total current assets
2,686,400,000 
2,968,800,000 
Property and equipment, net
302,300,000 
278,700,000 
Goodwill
1,021,100,000 
665,200,000 
Intangible assets, net
345,500,000 
221,600,000 
Deferred tax assets, net
167,800,000 
148,700,000 
Other assets
145,900,000 
112,100,000 
Total assets
4,669,000,000 
4,395,100,000 
Current liabilities:
 
 
Accounts payable and accrued liabilities
557,600,000 
538,900,000 
Deferred tax liabilities, net
17,500,000 
4,000,000 
Deferred revenue
624,600,000 
598,400,000 
Total current liabilities
1,199,700,000 
1,141,300,000 
Non-current portion of deferred revenue
132,200,000 
109,200,000 
Long-term debt
2,547,300,000 
2,101,800,000 
Deferred tax liabilities, net
95,700,000 
59,100,000 
Unrecognized tax benefits
220,300,000 
195,600,000 
Other liabilities
430,900,000 
360,200,000 
Total liabilities
4,626,100,000 
3,967,200,000 
Contingencies (Note 17)
   
   
Redeemable noncontrolling interest
   
80,000,000 
Shareholders' equity (deficit):
 
 
Preferred stock, par value $.01 per share; 10,000,000 shares authorized; no shares issued and outstanding
   
0 
Capital surplus
383,900,000 
405,800,000 
Retained earnings
6,044,300,000 
5,302,100,000 
Treasury stock, at cost; 119,650,254 and 120,462,232 shares of common stock at December 31, 2012 and December 31, 2011, respectively
(6,384,200,000)
(5,319,700,000)
Accumulated other comprehensive loss
(235,200,000)
(54,600,000)
Total Moody's shareholders' equity (deficit)
(187,800,000)
337,000,000 
Noncontrolling interests
230,700,000 
10,900,000 
Total shareholders' equity (deficit)
42,900,000 
347,900,000 
Total liabilities, redeemable noncontrolling interest and shareholders' equity (deficit)
4,669,000,000 
4,395,100,000 
Series common stock
 
 
Shareholders' equity (deficit):
 
 
Common stock
   
0 
Common Stock
 
 
Shareholders' equity (deficit):
 
 
Common stock
$ 3,400,000 
$ 3,400,000 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Accounts receivable, allowances
$ 29.4 
$ 28.9 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
10,000,000 
10,000,000 
Preferred stock, shares issued
0 
0 
Preferred stock, shares outstanding
0 
0 
Treasury stock, shares
138,539,128 
128,941,621 
Property and equipment, accumulated depreciation
$ 451.5 
$ 375.7 
Series common stock
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
10,000,000 
10,000,000 
Common Stock
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
1,000,000,000 
1,000,000,000 
Common stock, shares issued
342,902,272 
342,902,272 
Common stock, shares outstanding
10,000,000.0 
10,000,000.0 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities
 
 
 
Net income
$ 1,006,000,000 
$ 815,900,000 
$ 699,700,000 
Reconciliation of net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
95,600,000 
93,400,000 
93,500,000 
Stock-based compensation expense
80,400,000 
67,100,000 
64,500,000 
Goodwill impairment charge
   
   
12,200,000 
Deferred income taxes
29,900,000 
(27,200,000)
36,100,000 
Excess tax benefits from settlement of stock-based compensation awards
(58,700,000)
(38,800,000)
(15,700,000)
ICRA Gain
(102,800,000)
0 
0 
Legacy Tax Matters
(6,400,000)
(19,200,000)
(12,800,000)
Changes in assets and liabilities:
 
 
 
Accounts receivable
(98,300,000)
(67,000,000)
(128,200,000)
Other current assets
(41,000,000)
(21,700,000)
(14,100,000)
Other assets
(1,700,000)
(700,000)
5,100,000 
Accounts payable and accrued liabilities
59,200,000 
(2,900,000)
101,700,000 
Deferred revenue
38,400,000 
66,100,000 
20,900,000 
Unrecognized tax benefits and other non-current tax liabilities
30,600,000 
30,900,000 
(49,200,000)
Other liabilities
(12,600,000)
30,900,000 
9,400,000 
Net cash provided by operating activities
1,018,600,000 
926,800,000 
823,100,000 
Cash flows from investing activities
 
 
 
Capital additions
(74,600,000)
(42,300,000)
(45,000,000)
Purchases of short-term investments
(406,300,000)
(225,900,000)
(56,200,000)
Sales and maturities of investments
134,000,000 
57,000,000 
54,500,000 
Cash paid for acquisitions and investment in affiliates, net of cash acquired
(239,700,000)
(50,700,000)
(3,500,000)
Payments for settlements of net investment hedges
(500,000)
0 
0 
Receipts from settlement of net investment hedges
22,200,000 
0 
0 
Net cash used in investing activities
(564,900,000)
(261,900,000)
(50,200,000)
Cash flows from financing activities
 
 
 
Issuance of notes
747,700,000 
497,200,000 
496,100,000 
Repayment of notes
(300,000,000)
(63,800,000)
(71,300,000)
Net proceeds from stock plans
98,000,000 
136,000,000 
116,700,000 
Excess tax benefits from settlement of stock-based compensation awards
58,700,000 
38,800,000 
15,700,000 
Cost of treasury shares repurchased
(1,220,500,000)
(893,100,000)
(196,500,000)
Payment of dividends
(236,000,000)
(197,300,000)
(143,000,000)
Payment of dividends to noncontrolling interests
(11,800,000)
(12,200,000)
(8,300,000)
Contingent consideration paid
(10,300,000)
(300,000)
(500,000)
Debt issuance costs and related fees
(6,500,000)
(4,100,000)
(6,300,000)
Net cash provided by (used in) financing activities
(1,064,500,000)
(498,800,000)
202,600,000 
Redemption of the Copal call option
(183,800,000)
0 
0 
Effect of exchange rate changes on cash and cash equivalents
(89,200,000)
(2,000,000)
19,900,000 
Increase in cash and cash equivalents
(700,000,000)
164,100,000 
995,400,000 
Cash and cash equivalents, beginning of period
1,919,500,000 
1,755,400,000 
760,000,000 
Cash and cash equivalents, end of period
$ 1,219,500,000 
$ 1,919,500,000 
$ 1,755,400,000 
Consolidated Statement of Shareholders' Equity (Deficit) (USD $)
In Millions
Total
Common Stock
Capital Surplus
Retained Earnings
Treasury Stock
Accumulated Other Comprehensive Income (Loss)
Total Moody's Shareholders' Equity (Deficit)
Non-Controlling Interests
Beginning Balance at Dec. 31, 2011
$ (158.4)
$ 3.4 
$ 394.5 
$ 4,176.1 
$ (4,635.5)
 
$ (169.0)
$ 10.6 
Beginning Balance (in shares) at Dec. 31, 2011
 
342.9 
 
 
(120.5)
 
 
 
Net income
696.1 
 
 
690.0 
 
 
690.0 
6.1 
Dividends
157.5 
 
 
152.8 
 
 
152.8 
4.7 
Stock-based compensation
64.6 
 
64.6 
 
 
 
64.6 
 
Shares issued for stock-based compensation plans, net
116.6 
 
(100.9)
 
217.5 
 
116.6 
 
Shares issued for stock-based compensation plans, net (in shares)
 
 
 
 
5.6 
 
 
 
Net excess tax benefit upon settlement of stock-based compensation awards
10.3 
 
10.3 
 
 
 
10.3 
 
Excess of consideration paid over carrying value of additional investment in KIS Pricing
3.4 
 
3.4 
 
 
 
3.4 
 
Adjustment to redemption value of redeemable noncontrolling interest
3.4 
 
 
 
 
 
 
 
Treasury shares repurchased, shares
 
 
 
 
4.8 
 
 
 
Treasury shares repurchased
196.5 
 
 
 
196.5 
 
196.5 
 
Currency translation adjustment
33.6 
 
 
 
 
34.2 
34.2 
(0.6)
Amortization of actuarial losses and prior service costs included in net income
5.9 
 
 
 
 
5.9 
5.9 
 
Amortization of actuarial losses and prior service costs included in net income
14.8 
 
 
 
 
14.8 
14.8 
 
Net unrealized gain on cash flow hedges
0.1 
 
 
 
 
0.1 
0.1 
 
Unrealized Gains On Available For Sale Securities
0 
 
 
 
 
 
 
 
Ending Balance at Dec. 31, 2012
396.6 
3.4 
365.1 
4,713.3 
(4,614.5)
(82.1)
385.2 
11.4 
Ending Balance (in shares) at Dec. 31, 2012
 
342.9 
 
 
(119.7)
 
 
 
Net income
810.2 
 
 
804.5 
 
 
804.5 
5.7 
Dividends
221.9 
 
 
215.7 
 
 
215.7 
6.2 
Stock-based compensation
67.2 
 
67.2 
 
 
 
67.2 
 
Shares issued for stock-based compensation plans, net
136.0 
 
(51.9)
 
187.9 
 
136.0 
 
Shares issued for stock-based compensation plans, net (in shares)
 
 
 
 
5.0 
 
 
 
Net excess tax benefit upon settlement of stock-based compensation awards
33.3 
 
33.3 
 
 
 
33.3 
 
Adjustment to redemption value of redeemable noncontrolling interest
7.9 
 
(7.9)
 
 
 
(7.9)
 
Treasury shares repurchased, shares
 
 
 
 
14.2 
 
 
 
Treasury shares repurchased
893.1 
 
 
 
893.1 
 
893.1 
 
Currency translation adjustment
(13.8)
 
 
 
 
(13.8)
(13.8)
   
Amortization of actuarial losses and prior service costs included in net income
7.0 
 
 
 
 
7.0 
7.0 
 
Amortization of actuarial losses and prior service costs included in net income
(29.9)
 
 
 
 
(29.9)
(29.9)
 
Net unrealized gain on cash flow hedges
4.4 
 
 
 
 
4.4 
4.4 
 
Unrealized Gains On Available For Sale Securities
0 
 
 
 
 
 
 
 
Ending Balance at Dec. 31, 2013
347.9 
3.4 
405.8 
5,302.1 
(5,319.7)
(54.6)
337.0 
10.9 
Ending Balance (in shares) at Dec. 31, 2013
 
342.9 
 
 
(128.9)
 
 
 
Net income
996.6 
 
 
988.7 
 
 
988.7 
7.9 
Dividends
253.4 
 
 
246.5 
 
 
246.5 
6.9 
Stock-based compensation
80.6 
 
80.6 
 
 
 
80.6 
 
Shares issued for stock-based compensation plans, net
98.0 
 
(58.0)
 
156.0 
 
98.0 
 
Shares issued for stock-based compensation plans, net (in shares)
 
 
 
 
4.2 
 
 
 
Net excess tax benefit upon settlement of stock-based compensation awards
54.7 
 
54.7 
 
 
 
54.7 
 
Adjustment to redemption value of redeemable noncontrolling interest
99.4 
 
(99.2)
 
 
 
(99.2)
 
Treasury shares repurchased, shares
 
 
 
 
13.8 
 
 
 
Treasury shares repurchased
1,220.5 
 
 
 
1,220.5 
 
1,220.5 
 
Currency translation adjustment
(148.7)
 
 
 
 
(148.7)
(148.7)
   
Amortization of actuarial losses and prior service costs included in net income
4.5 
 
 
 
 
4.5 
4.5 
 
Amortization of actuarial losses and prior service costs included in net income
56.7 
 
 
 
 
56.7 
56.7 
 
Net unrealized gain on cash flow hedges
19.4 
 
 
 
 
19.4 
19.4 
 
Unrealized Gains On Available For Sale Securities
1.0 
 
 
 
 
0.9 
0.9 
 
ICRA noncontrolling interest
218.8 
 
 
 
 
 
 
218.8 
Ending Balance at Dec. 31, 2014
$ 42.9 
$ 3.4 
$ 383.9 
$ 6,044.3 
$ (6,384.2)
$ (235.2)
$ (187.8)
$ 230.7 
Ending Balance (in shares) at Dec. 31, 2014
 
342.9 
 
 
(138.5)
 
 
 
Consolidated Statement of Shareholders' Equity (Deficit) (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Currency translation adjustment, tax
$ 0.6 
$ 0.6 
$ 0.2 
Amortization of actuarial losses and prior service costs included in net income (tax)
(2.8)
(4.9)
(4.1)
Amortization and recognition of prior service cost and actuarial losses, tax
21.0 
21.0 
11.2 
Net unrealized gain on cash flow hedges, tax
$ 3.1 
$ 3.1 
$ 0.1 
GLOSSARY OF TERMS AND ABBREVIATIONS
GLOSSARY OF TERMS AND ABBREVIATIONS

TERM

  

DEFINITION

Adjusted Operating Income

Operating income excluding restructuring, depreciation and amortization and a goodwill impairment charge

Adjusted Operating Margin

Adjusted Operating Income divided by revenue

Amba

Amba Investment Services; a provider of investment research and quantitative analytics for global financial institutions; a subsidiary of the Company acquired 100% of Amba in December 2013.

Americas

  

Represents countries within North and South America, excluding the U.S.

AOCI

  

Accumulated other comprehensive income (loss); a separate component of shareholders’ equity (deficit); includes accumulated gains & losses on cash flow and net investment hedges, certain gains and losses relating to pension and other retirement benefits obligations and foreign currency translation adjustments.

ASC

  

The 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-Pacific

  

Represents countries in Asia also including but not limited to: Australia and its proximate islands, China, India, Indonesia, Japan, Korea, Malaysia, Singapore and Thailand

ASU

The FASB Accounting Standards Updates 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

Basel II

  

Capital adequacy framework published in June 2004 by the Basel Committee on Banking Supervision

Basel III

A new global regulatory standard on bank capital adequacy and liquidity agreed by the members of the Basel Committee on Banking Supervision. Basel III was developed in a response to the deficiencies in financial regulation revealed by the global financial crisis. Basel III strengthens bank capital requirements and introduces new regulatory requirements on bank liquidity and bank leverage.

Board

  

The board of directors of the Company

Bps

  

Basis points

Canary Wharf Lease

  

Operating lease agreement entered into on February 6, 2008 for office space in London, England, occupied by the Company in the second half of 2009

CFG

  

Corporate finance group; an LOB of MIS

CLO

CMBS

  

Collateralized loan obligation

Commercial mortgage-backed securities; part of CREF

Commission

  

European Commission

Common Stock

  

The Company’s common stock

Company

  

Moody’s Corporation and its subsidiaries; MCO; Moody’s

Copal

Copal Amba

Copal Partners; an acquisition completed in November 2011; part of the MA segment; leading provider of outsourced research and analytical services to institutional investors

Operating segment created in January 2014 that consists of all operations from Copal as well as the operations of Amba. The Copal Amba operating segment provides outsourced research and analytical services to the global financial and corporate sectors

Council

COSO

  

Council of the European Union

Committee of Sponsoring Organizations of the Treadway Commission

CP

  

Commercial paper

CRAs

CRA1

CRA2

CRA3

  

Credit rating agencies

Regulation (EC) No 1060/2009 of the European Parliament and of the Council, establishing an oversight regime for the CRA industry in the EU

Regulation (EC) No 513/2011 of the European Parliament and of the Council, which transferred direct supervisory responsibility of the registered CRA industry in the EU to ESMA

Regulation (EC) No 462/2013 of the European Parliament and of the Council, which updated the regulatory regimes imposing additional procedural requirements on CRAs

CREF

  

Commercial real estate finance which includes REITs, commercial real estate collateralized debt obligations and CMBS; part of SFG

CreditView

Research product offered by MA that provides credit professionals a comprehensive, consolidated and streamlined view of credit information

CSI

  

CSI Global Education, Inc.; an acquisition completed in November 2010; part of the MA segment; a provider of financial learning, credentials, and certification in Canada

D&B Business

  

Old D&B’s Dun & Bradstreet operating company

DBPPs

  

Defined benefit pension plans

DCF

  

Discounted cash flow; a fair value calculation methodology whereby future projected cash flows are discounted back to their present value

Debt/EBITDA

  

Ratio of Total Debt to EBITDA

Directors’ Plan

  

The 1998 Moody’s Corporation Non-Employee Directors’ Stock Incentive Plan

Distribution Date

EBITDA

September 30, 2000; the date which Old D&B separated into two publicly traded companies – Moody’s Corporation and New D&B

Earnings before interest, taxes, depreciation and amortization

ECB

  

European Central Bank

EMEA

  

Represents countries within Europe, the Middle East and Africa

EPS

  

Earnings per share

ERS

The enterprise risk solutions LOB within MA; offers risk management software products as well as software implementation services and related risk management advisory engagements

ESMA

European Securities and Market Authority

ESP

Estimated Selling Price; estimate of selling price, as defined in the ASC, at which the vendor would transact if the deliverable were sold by the vendor regularly on a stand-alone basis

ESPP

  

The 1999 Moody’s Corporation Employee Stock Purchase Plan

ETR

  

Effective tax rate

EU

EUR

European Ratings Platform

  

European Union

Euros

Central credit ratings website administered by ESMA

Excess Tax Benefit

  

The 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 that the option or restricted share is expensed under GAAP

Exchange Act

  

The Securities Exchange Act of 1934, as amended

FASB

  

Financial Accounting Standards Board

FIG

  

Financial institutions group; an LOB of MIS

Fitch

  

Fitch Ratings, a part of the Fitch Group

Financial Reform Act

Free Cash Flow

  

Dodd-Frank Wall Street Reform and Consumer Protection Act

Net cash provided by operating activities less cash paid for capital additions

FSTC

FX

  

Financial Services Training and Certifications; a reporting unit within the MA segment that includes on-line and classroom-based training services and CSI

Foreign exchange

GAAP

  

U.S. Generally Accepted Accounting Principles

GBP

GDP

ICRA

ICRA Gain

  

British pounds

Gross domestic product

ICRA 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 50.06% through the acquisition of additional shares

Gain relating to the step-acquisition of ICRA; U.S. GAAP requires the remeasurement to fair value of the previously held non-controlling shares upon obtaining a controlling interest in a step-acquisition. This remeasurement of the Company’s equity investment in ICRA to fair value resulted in a pre-tax gain of $102.8 million ($78.5 million after tax) in the second quarter of 2014

Intellectual Property

  

The Company’s intellectual property, including but not limited to proprietary information, trademarks, research, software tools and applications, models and methodologies, databases, domain names, and other proprietary materials

IRS

Internal Revenue Service

IT

KIS

Information technology

Korea Investors Service, Inc.; a leading Korean rating agency and consolidated subsidiary of the Company

KIS Pricing

Korea Investors Service Pricing, Inc.; a Korean provider of fixed income securities pricing and consolidated subsidiary of the Company

Korea

Republic of South Korea

Legacy Tax Matter(s)

Lewtan

Exposures to certain potential tax liabilities assumed in connection with the 2000 Distribution

Lewtan Technologies; a leading provider of analytical tools and data for the global structured finance market; an acquisition completed in October 2014

LIBOR

London Interbank Offered Rate

LOB

Line of Business

MA

M&A

Moody’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.

Mergers and acquisitions

Make Whole Amount

The prepayment penalty relating to the Series 2005-1 Notes and Series 2007-1 Notes; a premium based on the excess, if any, of the discounted value of the remaining scheduled payments over the prepaid principal

MCO

Moody’s Corporation and its subsidiaries; the Company; Moody’s

MD&A

Management’s Discussion and Analysis of Financial Condition and Results of Operations

MIS

Moody’s Investors Service – a reportable segment of MCO

MIS Other

Moody’s

Net Income

Consists of non-ratings revenue from ICRA, KIS Pricing and KIS Research. These businesses are managed by MIS; an LOB of MIS

Moody’s Corporation and its subsidiaries; MCO; the Company

Earnings attributable to Moody’s Corporation, which excludes the portion of net income from consolidated entities attributable to non-controlling shareholders

New D&B

The New D&B Corporation – which comprises the D&B business after September 30, 2000

NM

Not-meaningful percentage change (over 400%)

NRSRO

Nationally Recognized Statistical Rating Organization

OCI

Other comprehensive income (loss); includes gains and losses on cash flow and net investment hedges, certain gains and losses relating to pension and other retirement benefit obligations and foreign currency translation adjustments.

Old D&B

The former Dun and Bradstreet Company which distributed New D&B shares on September 30, 2000, and was renamed Moody’s Corporation

Other Retirement Plans

The U.S. retirement healthcare and U.S. retirement life insurance plans

PPIF

Public, project and infrastructure finance; an LOB of MIS

Profit Participation Plan

Defined contribution profit participation plan that covers substantially all U.S. employees of the Company

PPP

PS

Profit Participation Plan

Professional Services; an LOB of MA

RD&A

Research, Data and Analytics; an LOB within MA that distributes investor-oriented research and data, including in-depth research on major debt issuers, industry studies, commentary on topical credit events, economic research and analytical tools such as quantitative risk scores, and other analytical tools that are produced within MA

Redeemable Noncontrolling Interest

Represents minority shareholders’ interest in entities which are controlled but not wholly-owned by Moody’s and for which Moody’s obligation to redeem the minority shareholders’ interest is represented by a put/call relationship

Reform Act

  

Credit Rating Agency Reform Act of 2006

REITs

  

Real estate investment trusts

Relationship Revenue

In MIS, excluding MIS Other, relationship revenue represents the recurring 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. In MIS Other, relationship revenue represents subscription-based revenue. For MA, relationship revenue represents subscription-based revenue and maintenance revenue.

Reorganization

  

The Company’s business reorganization announced in August 2007 which resulted in two new reportable segments (MIS and MA) beginning in January 2008

Retirement Plans

  

Moody’s funded and unfunded U.S. pension plans, the U.S. post-retirement healthcare plans and the U.S. post-retirement life insurance plans

RMBS

  

Residential mortgage-backed securities; part of SFG

S&P

  

Standard & Poor’s, a division of McGraw-Hill Financial, Inc.

SEC

  

Securities and Exchange Commission

Securities Act

Securities Act of 1933

Series 2005-1 Notes

  

Principal amount of $300 million, 4.98% senior unsecured notes; notes were paid in 2014

Series 2007-1 Notes

Principal amount of $300 million, 6.06% senior unsecured notes due in September 2017 pursuant to the 2007 Agreement

SFG

  

Structured finance group; an LOB of MIS

SG&A

  

Selling, general and administrative expenses

SIV

Structured Investment Vehicle

Stock Plans

  

The Old D&B’s 1998 Key Employees’ Stock Incentive Plan and the Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan

Total Debt

  

Current and long-term portion of debt as reflected on the consolidated balance sheets, excluding current accounts payable and accrued liabilities incurred in the ordinary course of business

TPE

  

Third party evidence, as defined in the ASC, used to determine selling price based on a vendor’s or any competitor’s largely interchangeable products or services in standalone sales transactions to similarly situated customers

Transaction Revenue

  

For MIS, excluding MIS Other, revenue representing the initial rating of a new debt issuance as well as other one-time fees. In MIS Other, transaction revenue represents revenue from professional services and outsourcing engagements. For MA, transaction revenue represents software license fees and revenue from risk management advisory projects, training and certification services, and knowledge outsourcing engagements

U.K.

U.S.

  

United Kingdom

United States

USD

  

U.S. dollar

UTBs

  

Unrecognized tax benefits

UTPs

  

Uncertain tax positions

VSOE

  

Vendor specific objective evidence; evidence, as defined in the ASC, 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

WACC

WebEquity

  

Weighted average cost of capital

WebEquity Solutions LLC; a leading provider of cloud-based loan origination solutions for financial institutions. The Company acquired WebEquity on July 17, 2014

1998 Plan

  

Old D&B’s 1998 Key Employees’ Stock Incentive Plan

2000 Distribution

  

The distribution by Old D&B to its shareholders of all of the outstanding shares of New D&B common stock on September 30, 2000

2000 Distribution

Agreement

  

Agreement governing certain ongoing relationships between the Company and New D&B after the 2000 Distribution including the sharing of any liabilities for the payment of taxes, penalties and interest resulting from unfavorable IRS determinations on certain tax matters and certain other potential tax liabilities

2001 Plan

  

The Amended and Restated 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan

2005 Agreement

  

Note purchase agreement dated September 30, 2005 relating to the Series 2005-1 Notes

2007 Agreement

  

Note purchase agreement dated September 7, 2007 relating to the Series 2007-1 Notes

2007 Facility

  

Revolving credit facility of $1 billion entered into on September 28, 2007, expiring in 2012

2008 Term Loan

  

Five-year $150.0 million senior unsecured term loan entered into by the Company on May 7, 2008

2010 Indenture

Supplemental indenture and related agreements dated August 19, 2010, relating to the 2010 Senior Notes

2010 Senior Notes

  

Principal amount of $500.0 million, 5.50% senior unsecured notes due in September 2020 pursuant to the 2010 Indenture

2012 Facility

Revolving credit facility of $1 billion entered into on April 18, 2012, maturing in 2017

2012 Indenture

Supplemental indenture and related agreements dated August 18, 2012, relating to the 2012 Senior Notes

2012 Senior Notes

Principal amount of $500 million, 4.50% senior unsecured notes due in September 2022 pursuant to the 2012 Indenture

2013 Indenture

2013 Senior Notes

2014 Indenture

2014 Senior Notes (5- Year)

2014 Senior Notes (30-Year)

Supplemental indenture and related agreements dated August 12, 2013, relating to the 2013 Senior Notes

Principal amount of $500 million, 4.875% senior unsecured notes due in February 2024 pursuant to the 2013 Indenture

Supplemental indenture and related agreements dated July 16, 2014, relating to the 2014 Senior Notes

Principal amount of $450 million, 2.75% senior unsecured notes due in July 2019

Principal amount of $300 million, 5.25% senior unsecured notes due in July 2044

7WTC

  

The Company’s corporate headquarters located at 7 World Trade Center

7WTC Lease

  

Operating lease agreement entered into on October 20, 2006

GLOSSARY OF TERMS AND ABBREVIATIONS

The following terms, abbreviations and acronyms are used to identify frequently used terms in this report:

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) outsourced research and analytical services to institutional customers. 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 fixed income pricing services in the Asia-Pacific region and outsourced services. 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 Research, Data and Analytics 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 Enterprise Risk Solutions business, MA provides software solutions as well as related risk management services. The Professional Services business provides outsourced research and analytical services along with financial training and certification programs.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recently Issued Accounting Pronouncements

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Consolidation

The consolidated financial statements include those of Moody’s Corporation and its majority- and wholly-owned subsidiaries. The effects of all intercompany transactions have been eliminated. Investments in companies for which the Company has significant influence over operating and financial policies but not a controlling interest are accounted for on an equity basis whereby the Company records its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net and any dividends received reduce the carrying amount of the investment.  The Company applies the guidelines set forth in Topic 810 of the ASC in assessing its interests in variable interest entities to decide whether to consolidate that entity. The Company has reviewed the potential variable interest entities and determined that there are no consolidation requirements under Topic 810 of the ASC. The Company consolidates its ICRA subsidiaries on a three month lag.

Cash and Cash Equivalents

Cash equivalents principally consist of investments in money market mutual funds and money market deposit accounts as well as high-grade commercial paper and certificates of deposit with maturities of three months or less when purchased.

Short-term Investments

Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next twelve months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned.

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives. Expenditures for maintenance and repairs that do not extend the economic useful life of the related assets are charged to expense as incurred.

Research and Development Costs

All research and development costs are expensed as incurred. These costs primarily reflect the development of credit processing software and quantitative credit risk assessment products sold by the MA segment.

Research and development costs were $37.9 million, $22.8 million, and $16.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, and are included in operating expenses within the Company’s consolidated statements of operations. These costs generally consist of professional services provided by third parties and compensation costs of employees.

Costs for internally developed computer software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. These costs primarily relate to the development or enhancement of products in the ERS business and generally consist of professional services provided by third parties and compensation costs of employees that develop the software. Judgment is required in determining when technological feasibility of a product is established and the Company believes that technological feasibility for its software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released to customers. Accordingly, costs for internally developed computer software that will be sold, leased or otherwise marketed that were eligible for capitalization under Topic 985 of the ASC as well as the related amortization expense related to such costs were immaterial for the years ended December 31, 2014, 2013 and 2012.

Computer Software Developed or Obtained for Internal Use

The Company capitalizes costs related to software developed or obtained for internal use. These assets, included in property and equipment in the consolidated balance sheets, relate to the Company’s accounting, product delivery and other systems. Such costs generally consist of direct costs for third-party license fees, professional services provided by third parties and employee compensation, in each case incurred either during the application development stage or in connection with upgrades and enhancements that increase functionality. Such costs are depreciated over their estimated useful lives on a straight-line basis. Costs incurred during the preliminary project stage of development as well as maintenance costs are expensed as incurred.

Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets

Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment or one level below an operating segment, annually as of July 31 or more frequently if impairment indicators arise in accordance with ASC Topic 350.

The Company evaluates the recoverability of goodwill using a three-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made that, based on the qualitative factors, an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company must perform a third step of the impairment test to determine the implied fair value of the reporting unit’s goodwill. The implied fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than its carrying value, the difference is recognized as an impairment charge. For the reporting units where the Company is consistently able to conclude that an impairment does not exist using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years. Goodwill is assigned to a reporting unit at the date when an acquisition is integrated into one of the established reporting units, and is based on which reporting unit is expected to benefit from the synergies of the acquisition.

For purposes of assessing the recoverability of goodwill, the Company has six reporting units at December 31, 2014: two within the Company’s ratings business (one for the newly acquired ICRA business and one that encompasses all of Moody’s other ratings operations) and four reporting units within MA: RD&A, ERS, Financial Services Training and Certifications and Copal Amba. The RD&A reporting unit encompasses the distribution of investor-oriented research and data developed by MIS as part of its ratings process, in-depth research on major debt issuers, industry studies, economic research and commentary on topical events and credit analytic tools. The ERS reporting unit consists of credit risk management and compliance software that is sold on a license or subscription basis as well as related advisory services for implementation and maintenance. The FSTC reporting unit consists of the portion of the MA business that offers both credit training as well as other professional development training and certification services. The Copal Amba reporting unit consists of outsourced research and analytical services.

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Rent Expense

The Company records rent expense on a straight-line basis over the life of the lease. In cases where there is a free rent period or future fixed rent escalations the Company will record a deferred rent liability. Additionally, the receipt of any lease incentives will be recorded as a deferred rent liability which will be amortized over the lease term as a reduction of rent expense.

Stock-Based Compensation

The Company records compensation expense for all share-based payment award transactions granted to employees based on the fair value of the equity instrument at the time of grant. This includes shares issued under stock option and restricted stock plans. The Company has also established a pool of additional paid-in capital related to the tax effects of employee share-based compensation, which is available to absorb any recognized tax shortfalls.

Derivative Instruments and Hedging Activities

Based on the Company’s risk management policy, from time to time the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values. The changes in the value of derivatives that qualify as fair value hedges are recorded with a corresponding adjustment to the carrying value of the item being hedged. Changes in the derivative’s fair value that qualify as cash flow hedges are recorded to other comprehensive income or loss, to the extent the hedge is effective, and such amounts are reclassified from accumulated other comprehensive income or loss to earnings in the same period or periods during which the hedged transaction affects income. Changes in the derivative’s fair value that qualify as net investment hedges are recorded to other comprehensive income or loss, to the extent the hedge is effective. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur.

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or the services have been provided and accepted by the customer when applicable, fees are determinable and the collection of resulting receivables is considered probable.

Pursuant to ASC Topic 605, when a sales arrangement contains multiple deliverables, the Company allocates revenue to each deliverable based on its relative selling price which is determined based on its vendor specific objective evidence if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available.

 The Company’s products and services will generally qualify as separate units of accounting under ASC Topic 605. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value to the customers and if the arrangement includes a customer refund or return right relative to the delivered item and the delivery and performance of the undelivered item is considered probable and substantially in the Company’s control. In instances where the aforementioned criteria are not met, the deliverable is combined with the undelivered items and revenue recognition is determined as one single unit.

The Company determines whether its selling price in a multi-element transaction meets the VSOE criteria by using the price charged for a deliverable when sold separately. In instances where the Company is not able to establish VSOE for all deliverables in a multiple element arrangement, which may be due to the Company infrequently selling each element separately, not selling products within a reasonably narrow price range, or only having a limited sales history, the Company attempts to establish TPE for deliverables. The Company determines whether TPE exists by evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. However, due to the difficulty in obtaining third party pricing, possible differences in its market strategy from that of its peers and the potential that products and services offered by the Company may contain a significant level of differentiation and/or customization such that the comparable pricing of products with similar functionality cannot be obtained, the Company generally is unable to reliably determine TPE. Based on the selling price hierarchy established by ASC Topic 605, when the Company is unable to establish selling price using VSOE or TPE, the Company will establish an ESP. ESP is the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company establishes its best estimate of ESP considering internal factors relevant to is pricing practices such as costs and margin objectives, standalone sales prices of similar products, percentage of the fee charged for a primary product or service relative to a related product or service, and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trend. The Company reviews its determination of VSOE, TPE and ESP on an annual basis or more frequently as needed.

In the MIS segment, revenue attributed to initial ratings of issued securities is recognized when the rating is issued. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of commercial mortgage-backed securities, structured credit, international residential mortgage-backed and asset-backed securities, issuers can elect to pay the monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities, which was approximately 28 years on a weighted average basis at December 31, 2014. At December 31, 2014, 2013 and 2012, deferred revenue related to these securities was approximately $107 million, $97 million, and $82 million.

Multiple element revenue arrangements in the MIS segment are generally comprised of an initial rating and the related monitoring service. In instances where monitoring fees are not charged for the first year monitoring effort, fees are allocated to the initial rating and monitoring services based on the relative selling price of each service to the total arrangement fees. The Company generally uses ESP in determining the selling price for its initial ratings as the Company rarely sells initial ratings separately without providing related monitoring services and thus is unable to establish VSOE or TPE for initial ratings.

MIS estimates revenue for ratings of commercial paper for which, in addition to a fixed annual monitoring fee, issuers are billed quarterly based on amounts outstanding. Revenue is accrued each quarter based on estimated amounts outstanding and is billed when actual data is available. The estimate is determined based on the issuers’ most recent reported quarterly data. At December 31, 2014, 2013 and 2012, accounts receivable included approximately $22 million, $21 million, and $22 million, respectively, related to accrued commercial paper revenue. Historically, MIS has not had material differences between the estimated revenue and the actual billings. Furthermore, for certain annual monitoring services, fees are not invoiced until the end of the annual monitoring period and revenue is accrued ratably over the monitoring period.

In the MA segment, products and services offered by the Company include software licenses and related maintenance, subscriptions, and professional services. Revenue from subscription based products, such as research and data subscriptions and certain software-based credit risk management subscription products, is recognized ratably over the related subscription period, which is principally one year. Revenue from sale of perpetual licenses of credit processing software is generally recognized at the time the product master or first copy is delivered or transferred to and accepted by the customer. If uncertainty exists regarding customer acceptance of the product or service, revenue is not recognized until acceptance occurs. Software maintenance revenue is recognized ratably over the annual maintenance period. Revenue from professional services rendered is generally recognized as the services are performed. A large portion of annual research and data subscriptions and annual software maintenance are invoiced in the months of November, December and January.

Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where a multiple element arrangement includes software and non-software deliverables, revenue is allocated to the non-software deliverables and to the software deliverables, as a group, using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Revenue is recognized for each element based upon the conditions for revenue recognition noted above.

 If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is allocated to each software deliverable using VSOE. In the instances where the Company is not able to determine VSOE for all of the deliverables of an arrangement, the Company allocates the revenue to the undelivered elements equal to its VSOE and the residual revenue to the delivered elements. If the Company is unable to determine VSOE for an undelivered element, the Company defers all revenue allocated to the software deliverables until the Company has delivered all of the elements or when VSOE has been determined for the undelivered elements. In cases where software implementation services are considered essential and VSOE of fair value exists for post-contract customer support (“PCS”), once the delivery criteria has been met on the standard software, license and service revenue is recognized on a percentage-of-completion basis as implementation services are performed, while PCS is recognized over the coverage period.  If VSOE of fair value does not exist for PCS, once the delivery criteria has been met on the standard software, service revenue is recognized on a zero profit margin basis until essential services are complete, at which point total remaining arrangement revenue is then spread ratably over the remaining PCS coverage period.

Accounts Receivable Allowances

Moody’s records an allowance for estimated future adjustments to customer billings as a reduction of revenue, based on historical experience and current conditions. Such amounts are reflected as additions to the accounts receivable allowance. Additionally, estimates of uncollectible accounts are recorded as bad debt expense and are reflected as additions to the accounts receivable allowance. Actual billing adjustments and uncollectible account write-offs are recorded against the allowance. Moody’s evaluates its accounts receivable allowance by reviewing and assessing historical collection and adjustment experience and the current status of customer accounts. Moody’s also considers the economic environment of the customers, both from an industry and geographic perspective, in evaluating the need for allowances. Based on its analysis, Moody’s adjusts its allowance as considered appropriate in the circumstances.

Contingencies

Moody’s is involved in legal and tax proceedings, governmental investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate.

For claims, litigation and proceedings and governmental investigations and inquires not related to income taxes, where it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated, the Company records liabilities in the consolidated financial statements 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 other instances, because of uncertainties related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if significant. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. In view of the inherent difficulty of predicting the outcome of litigation, regulatory, governmental investigations and inquiries, enforcement and similar matters , particularly where the claimants seek large or indeterminate damages or where the parties assert novel legal theories or the matters involve a large number of parties, the Company cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also cannot 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. However, in light of the large or indeterminate damages sought in some of them, the absence of similar court rulings on the theories of law asserted and uncertainties regarding apportionment of any potential damages, an estimate of the range of possible losses cannot be made at this time.

The Company’s wholly-owned insurance subsidiary insures the Company against certain risks including but not limited to deductibles for worker’s compensation, employment practices litigation and employee medical claims and terrorism, for which the claims are not material to the Company. In addition, for claim years 2008 and 2009, the insurance subsidiary insured the Company for defense costs related to professional liability claims. For matters insured by the Company’s insurance subsidiary, Moody’s records liabilities based on the estimated total claims expected to be paid and total projected costs to defend a claim through its anticipated conclusion. The Company determines liabilities based on an assessment of management’s best estimate of claims to be paid and legal defense costs as well as actuarially determined estimates. The Cheyne SIV and Rhinebridge SIV matters more fully discussed in Note 18 are both cases from the 2008/2009 claims period, and accordingly defense costs for these matters are covered by the Company’s insurance subsidiary. Defense costs for matters not self-insured by the Company’s wholly-owned insurance subsidiary are expensed as services are provided.

For income tax matters, the Company employs the prescribed methodology of  Topic 740 of the ASC which requires a company to first determine whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

Operating Expenses

Operating expenses include costs associated with the development and production of the Company’s products and services and their delivery to customers. These expenses principally include employee compensation and benefits and travel costs that are incurred in connection with these activities. Operating expenses are charged to income as incurred, except for certain costs related to software implementation services which are deferred until related revenue is recognized.  Additionally, certain costs incurred to develop internal use software are capitalized and depreciated over their estimated useful life.

Selling, General and Administrative Expenses

SG&A expenses include such items as compensation and benefits for corporate officers and staff and compensation and other expenses related to sales of products. They also include items such as office rent, business insurance, professional fees and gains and losses from sales and disposals of assets. SG&A expenses are charged to income as incurred, except for certain expenses incurred to develop internal use software are capitalized and depreciated over their estimated useful life.

Redeemable Noncontrolling Interest

The Company records its redeemable noncontrolling interest at fair value on the date of the related business combination transaction. The redeemable noncontrolling interest represents noncontrolling shareholders’ interest in entities which are controlled but not wholly-owned by Moody’s and for which Moody’s obligation to redeem the minority shareholders’ interest is governed by a put/call relationship. Subsequent to the initial measurement, the redeemable noncontrolling interest is recorded at the greater of its redemption value or its carrying value at the end of each reporting period. If the redeemable noncontrolling interest is carried at its redemption value, the difference between the redemption value and the carrying value would be adjusted through capital surplus at the end of each reporting period. The Company also performs a quarterly assessment to determine if the aforementioned redemption value exceeds the fair value of the redeemable noncontrolling interest. If the redemption value of the redeemable noncontrolling interest were to exceed its fair value, the excess would reduce the net income attributable to Moody’s shareholders. The Company settled its redeemable noncontrolling interest in the fourth quarter of 2014 by exercising its call option to acquire the remaining share of Copal Amba that it did not previously own.

Foreign Currency Translation

For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated into U.S. dollars using end of year exchange rates, and revenue and expenses are translated using average exchange rates for the year. For these foreign operations, currency translation adjustments are accumulated in a separate component of shareholders’ equity.

Comprehensive Income

Comprehensive income represents the change in net assets of a business enterprise during a period due to transactions and other events and circumstances from non-owner sources including foreign currency translation impacts, net actuarial losses and net prior service costs related to pension and other retirement plans, gains and losses on derivative instruments and unrealized gains and losses on securities designated as ‘available-for-sale’ under Topic 320 of the ASC.

Income Taxes

The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes and deferred income taxes reflect the effect of temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes.

The Company classifies interest related to unrecognized tax benefits as a component of interest expense in its consolidated statements of operations. Penalties are recognized in other non-operating expenses. For UTPs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

For certain of its non-U.S. subsidiaries, the Company has deemed the undistributed earnings relating to these subsidiaries to be indefinitely reinvested within its foreign operations. Accordingly, the Company has not provided deferred income taxes on these indefinitely reinvested earnings. It is not practicable to determine the amount of deferred taxes that might be required to be provided if such earnings were distributed in the future due to complexities in the tax laws and in the hypothetical calculations that would have to be made.

Fair Value of Financial Instruments

The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, all of which are short-term in nature and, accordingly, approximate fair value. Additionally, the Company invests in certain short-term investments consisting primarily of certificates of deposit that are carried at cost, which approximates fair value due to their short-term maturities.

The Company also has certain investments in closed-ended and open-ended mutual funds in India which are designated as ‘available for sale’ under Topic 320 of the ASC. Accordingly, unrealized gains and losses on these investments are recorded to other comprehensive income and are reclassified out of accumulated other comprehensive income to the statement of operations when the investment matures or is sold using a specific identification method.

Also, the Company uses derivative instruments, as further described in Note 5, to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value on the Company’s consolidated balance sheets.

The Company also is subject to contingent consideration obligations related to certain of its acquisitions as more fully discussed in Note 9. These obligations are carried at their estimated fair value within the Company’s consolidated balance sheets.

Fair value is defined by the ASC as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset.

The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows:

Level 1 : quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement;

Level 2 : inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;

Level 3 : unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk principally consist of cash and cash equivalents, short-term investments, trade receivables and derivatives.

The Company manages its credit risk exposure by allocating its cash equivalents among various money market mutual funds, money market deposit accounts, certificates of deposits and high- grade commercial paper. Short-term investments primarily consist of certificates of deposit as of December 31, 2014 and 2013. The Company manages its credit risk exposure on cash equivalents and short-term investments by limiting the amount it can invest with any single entity. No customer accounted for 10% or more of accounts receivable at December 31, 2014 or 2013.

Earnings per Share of Common Stock

Basic shares outstanding is calculated based on the weighted average number of shares of common stock outstanding during the reporting period. Diluted shares outstanding is calculated giving effect to all potentially dilutive common shares, assuming that such shares were outstanding during the reporting period.

Pension and Other Retirement Benefits

Moody’s maintains various noncontributory DBPPs as well as other contributory and noncontributory retirement plans. The expense and assets/liabilities that the Company reports for its pension and other retirement benefits are dependent on many assumptions concerning the outcome of future events and circumstances. These assumptions represent the Company’s best estimates and may vary by plan. The differences between the assumptions for the expected long-term rate of return on plan assets and actual experience is spread over a five-year period to the market related value of plan assets which is used in determining the expected return on assets component of annual pension expense. All other actuarial gains and losses are generally deferred and amortized over the estimated average future working life of active plan participants.

The Company recognizes as an asset or liability in its consolidated balance sheet the funded status of its defined benefit retirement plans, measured on a plan-by-plan basis. Changes in the funded status due to actuarial gains/losses are recorded as part of other comprehensive income during the period the changes occur.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Estimates are used for, but not limited to, revenue recognition, accounts receivable allowances, income taxes, contingencies, valuation of long-lived and intangible assets, goodwill, pension and other retirement benefits, stock-based compensation, and depreciable lives for property and equipment and computer software.

RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING
RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING

NOTE 3 RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING

Below is a reconciliation of basic to diluted shares outstanding:

201420132012
Basic210.7219.4223.2
Dilutive effect of shares issuable under stock-based compensation plans4.04.13.4
Diluted214.7223.5226.6
Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above0.74.07.5

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 December 31, 2014, 2013 and 2012. These assumed proceeds include Excess Tax Benefits and any unrecognized compensation on the awards.

CASH EQUIVALENT AND INVESTMENTS
Investment [Text Block]
As of December 31, 2014
Balance sheet location
CostGross Unrealized GainsFair ValueCash and cash equivalentsShort-term investmentsOther assets
Money market mutual funds$149.7$-$149.7$ 149.7 $-$-
Certificates of deposit and money market deposit accounts (1)$ 842.5 $ - $ 842.5 $ 380.1 $458.1$4.3
Fixed maturity and open ended mutual funds (2)$ 47.1 $ 0.9 $ 48.0 $ - $-$48.0
As of December 31, 2013
Balance sheet location
CostGross Unrealized GainsFair ValueCash and cash equivalentsShort-term investmentsOther assets
Money market mutual funds$212.3$-$212.3$ 212.3 $-$-
Certificates of deposit and money market deposit accounts (1)$ 911.8 $ - $ 911.8 $ 725.0 $186.8$-
(1) 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 ten months at December 31, 2014 and one month to nine months at December 31, 2013. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.
(2) Consists of investments in fixed maturity mutual funds and open-ended mutual funds held by ICRA. The remaining contractual maturities for the fixed maturity instruments range from two months to 23 months at December 31, 2014.

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 which are more fully described in Note 2.

The total proceeds received in the year ended December 31, 2014 for maturities of fixed maturity mutual funds was $10.7 million. The gross realized gains on these maturities were immaterial.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 5 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.

Interest Rate Swaps

In the fourth quarter of 2010, the Company entered into interest rate swaps with a total notional amount of $300 million to convert the fixed interest rate on the Series 2005-1 Notes to a floating interest rate based on the 3-month LIBOR. The purpose of this hedge was to mitigate the risk associated with changes in the fair value of the Series 2005-1 Notes, thus the Company designated these swaps as fair value hedges. The fair value of the swaps was adjusted quarterly with a corresponding adjustment to the carrying value of the Series 2005-1 Notes. The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps were recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations. In August of 2014, the Company terminated the swaps on the Series 2005-1 Notes concurrent with the early retirement of those notes as further described in Note 15. The termination of these swaps resulted in a gain of approximately $4 million in 2014 which is recorded in interest income (expense), net in the Company’s consolidated statement of operations.

In the second quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on the 2010 Senior Notes to a floating interest rate based on the 3-month LIBOR. In the third quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on the remaining balance of the 2010 Senior Notes 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 2010 Senior Notes, 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 2010 Senior Notes. The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations.

In the third quarter of 2014, the Company entered into interest rate swaps with a total notional amount of $250 million to convert the fixed interest rate on a portion of the 2014 Senior Notes (5-year) to a floating interest rate based on the 3-month LIBOR. The purpose of this hedge was to mitigate the risk associated with changes in the fair value of a portion of the 2014 Senior Notes (5-year), 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 2014 Senior Notes (5-year). The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest income (expense), net, in the Company’s consolidated statement of operations.

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 the subsidiary’s functional currency. These forward contracts are not designated as hedging instruments 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 income (expense), 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 March 2015.

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

December 31,December 31,
20142013
Notional amount of Currency Pair:
Contracts to purchase USD with euros$38.5$14.2
Contracts to sell USD for euros$51.1$53.2
Contracts to purchase USD with GBP$0.2$-
Contracts to purchase USD with other foreign currencies$1.2$-
Contracts to purchase euros with other foreign currencies€34.0€13.1
Contracts to purchase euros with GBP€25.0€22.1
Contracts to sell euros for GBP€38.2€-

Net Investment Hedges

The Company enters into foreign currency forward contracts to hedge the exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against adverse changes in foreign exchange rates. These forward contracts are designated as hedging instruments 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 forward contracts on a pre-tax basis. For hedges that meet the effectiveness requirements, any change in fair value for the hedge is recorded in OCI. Any change in the fair value of these hedges that is the result of ineffectiveness would be recognized immediately in other non-operating (expense) income in the Company’s consolidated statements of operations. These outstanding contracts expire in March 2015 for contracts to sell euros for USD and in November 2015 for contracts to sell Japanese yen for USD.

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

December 31,December 31,
20142013
Notional amount of Currency Pair:
Contracts to sell euros for USD€50.0€50.0
Contracts to sell Japanese yen for USD¥19,400¥19,700

The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instruments:

Fair Value of Derivative Instruments
Balance Sheet LocationDecember 31, 2014December 31, 2013
Assets:
Derivatives designated as accounting hedges:
Interest rate swapsOther assets$17.4$10.3
FX forwards on net investment in certain foreign subsidiariesOther current assets18.89.3
Total derivatives designated as accounting hedges36.219.6
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesOther current assets5.60.9
Total$41.8$20.5
Liabilities:
Derivatives designated as accounting hedges:
FX forwards on net investment in certain foreign subsidiariesAccounts payable and accrued liabilities$-$1.0
Total derivatives designated as accounting hedges-1.0
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesAccounts payable and accrued liabilities2.10.7
Total$2.1$1.7

The following table summarizes the net gain (loss) on the Company’s foreign exchange forwards which are not designated as hedging instruments as well as the gain (loss) on the interest rate swaps designated as fair value hedges:

Amount of Gain (Loss) Recognized in consolidated statement of operations
Year Ended December 31,
Derivatives designated as accounting hedgesLocation on Consolidated Statements of Operations201420132012
Interest rate swapsInterest income (expense), net$11.7$4.2$3.6
Derivatives not designated as accounting hedges
Foreign exchange forwardsOther non-operating (expense) income$(2.0)$2.1$0.9

The following table provides information on annual gains (losses) on the Company’s net investment hedges:

Derivatives in Net Investment Hedging RelationshipsAmount of Gain/(Loss), net of tax, Recognized in AOCI on Derivative (Effective Portion)
Year Ended December 31,
201420132012
FX forwards$19.4$3.7$(2.2)
Total$19.4$3.7$(2.2)

All gains and losses on derivatives designated as net investment hedges are recognized through OCI.

There were no gains or losses reclassified from AOCI to the statement of operations or any hedge ineffectiveness in the years ended December 31, 2014, 2013 and 2012.

The cumulative amount of hedge gain (losses) recorded in AOCI relating to derivative instruments is as follows:

Gains (Losses), net of tax
December 31, 2014December 31, 2013
FX forwards on net investment hedges$20.9$1.5
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET

NOTE 6 PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of:

December 31,
20142013
Office and computer equipment (3 - 10 year estimated useful life)$152.5$129.7
Office furniture and fixtures (3 - 10 year estimated useful life)43.840.6
Internal-use computer software (3 - 10 year estimated useful life)336.8284.9
Leasehold improvements and building (3 - 20 year estimated useful life)220.7199.2
Total property and equipment, at cost753.8654.4
Less: accumulated depreciation and amortization(451.5)(375.7)
Total property and equipment, net$302.3$278.7

Depreciation and amortization expense related to the above assets was 67.2 million, $65.4 million, and $63.4 million for the years ended December 31, 2014, 2013 and 2012, respectively.

ACQUISITIONS
ACQUISITIONS

NOTE 7 ACQUISITIONS

All of the acquisitions described below were accounted for using the acquisition method of accounting whereby assets acquired and liabilities assumed were recognized at their acquisition date fair value.    Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded to goodwill. For all of the acquisitions described below, the Company has not presented proforma combined results for the acquisitions because the impact on previously reported statements of operations would not have been material. Furthermore, for all acquisitions described below, the amount of revenue and expenses in the year of acquisition from the acquisition date through the end of the year was not material. These acquisitions are discussed below in more detail.

Lewtan Technologies

On October 27, 2014, a subsidiary of the Company acquired 100% of Lewtan Technologies, a leading provider of analytical tools and data for the global structured finance market. The acquisition of Lewtan will bolster MA’s Structured Analytics and Valuations (SAV) business within its RD&A LOB, which provides an extensive data and analytics library for securitized assets. The aggregate purchase price was not material and the near term impact to the Company’s operations and cash flows is not expected to be material. Lewtan will operate in the RD&A LOB of MA and goodwill related to this acquisition was allocated to the RD&A reporting unit.

WebEquity Solutions, LLC

On July 17, 2014, a subsidiary of the Company acquired 100% of WebEquity Solutions, LLC, a leading provider of cloud-based loan origination solutions for financial institutions. The cash payment to the sellers of $130.5 million was funded using Moody’s U.S. cash. This acquisition will enhance MA’s risk management product portfolio.

The Company incurred approximately $2 million of costs directly related to this acquisition in 2014, which are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

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

Current assets$3.0
Property and equipment, net2.3
Intangible assets:
Client relationships (18 year weighted average life)$42.8
Software (15 year weighted average life)11.5
Trade name (4 year weighted average life)0.5
Total intangible assets (17 year weighted average life)54.8
Goodwill77.6
Liabilities assumed(7.2)
Net assets acquired$130.5

Current assets include acquired cash of $0.6 million. Additionally, current assets includes gross accounts receivable of $0.7 million, of which an immaterial amount is not expected to be collectible. The acquired goodwill, which has been assigned to the MA segment, will be deductible for tax.

As of the date of the acquisition, WebEquity is part of the ERS reporting unit.

ICRA Limited

On June 26, 2014, a subsidiary of the Company acquired 2,154,722 additional shares of ICRA Limited, a publicly traded company in India, pursuant to a conditional open tender offer which was initiated in February 2014. ICRA is a leading provider of credit ratings and research in India and will extend MIS’s reach in the growing domestic debt market in India as well as other emerging markets in the region. The acquisition of the additional shares increased Moody’s ownership stake in ICRA from 28.5% to 50.06%, resulting in a controlling interest in ICRA. Accordingly, the Company consolidates ICRA’s financial statements on a three month lag which resulted in only one quarter of ICRA’s operating results included in the Company’s statement of operations in 2014.

Prior to the acquisition of the additional shares, Moody’s accounted for its investment in ICRA on an equity basis whereby the Company recorded its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net. The acquisition of the additional shares has resulted in the Company consolidating ICRA into its financial statements. As a result of this consolidation and in accordance with ASC 805, the carrying value of the Company’s equity investment in ICRA was remeasured to fair value as of the acquisition date resulting in a pre-tax gain of $102.8 million ($78.5 million after-tax) in 2014. The fair value of the Company’s equity investment was based on ICRA’s quoted market price on the date of acquisition.

The Company incurred approximately $2 million of costs directly related to the acquisition of ICRA during 2014 which are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

The table below details the total consideration relating to the ICRA step-acquisition:

Cash paid$ 86.0
Fair value of equity interest in ICRA prior to obtaining a controlling interest 124.9
Total consideration $ 210.9
The cash paid in the table above was funded by using Moody's non-U.S. cash on hand.

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$ 25.4
Property and equipment, net 15.1
Intangible assets:
Trade name (36 year weighted average life)$ 46.8
Client relationships (19 year weighted average life) 33.8
Other (17 year weighted average life)* 18.3
Total intangible assets (26 year weighted average life) 98.9
Goodwill 296.7
Other assets 56.3
Liabilities (62.7)
Fair value of non-controlling interest assumed (218.8)
Net assets acquired$ 210.9
* Primarily consists of acquired technical know-how and ratings methodologies

Current assets include acquired cash of approximately $5 million. Additionally, current assets includes gross accounts receivable of approximately $14 million, of which an immaterial amount is not expected to be collectible. Goodwill, which has been assigned to the MIS segment, is not deductible for tax.

The fair value of the non-controlling interest was determined based on the quoted market price per share of ICRA on the date that the Company acquired the controlling stake.

ICRA will operate as its own reporting unit for purposes of the Company’s annual goodwill impairment assessment.

Amba Investment Services

On December 10, 2013, Copal Partners Limited, a majority-owned subsidiary of the Company, acquired 100% of Amba Investment Services, a provider of investment research and quantitative analytics for global financial institutions. Amba currently operates within the PS LOB of MA and will bolster the research and analytical capabilities offered by MA through Copal, a majority of which was acquired in December 2011.

The table below details the total consideration transferred to the sellers of Amba:

Cash paid $67.3
Contingent consideration liability assumed4.3
Total fair value of consideration transferred$71.6

The cash payment to the sellers was funded by using Moody’s non-U.S. cash on hand.

The purchase agreement contained a provision for a contingent cash payment to the sellers valued at $4.3 million at the acquisition date which was dependent on Amba achieving certain revenue targets for the period from the acquisition date through March 31, 2014. The target was met and a $4.3 million payment was made to the sellers in the third quarter of 2014.

The Company incurred approximately $1 million of costs directly related to the acquisition of Amba during the year ended December 31, 2013. These costs, which primarily consist of consulting and legal fees, are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

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

Current assets$23.7
Property and equipment, net0.4
Intangible assets:
Trade name (7 year weighted average life)$3.3
Client relationships (12 year weighted average life)26.7
Other (3 year weighted average life)1.6
Total intangible assets (11 year weighted average life)31.6
Goodwill29.2
Indemnification asset10.4
Other assets2.0
Liabilities assumed(25.7)
Net assets acquired$71.6

Current assets include acquired cash of approximately $16 million. Additionally, current assets includes gross accounts receivable of approximately $6 million, of which an immaterial amount is not expected to be collectible. The acquired goodwill, which has been assigned to the MA segment, will not be deductible for tax.

In connection with the acquisition, the Company assumed liabilities relating to certain UTPs. These UTPs 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 UTPs. Accordingly, the Company carries an indemnification asset on its consolidated balance sheet at December 31, 2014.

As of the date of the acquisition, Amba was integrated with Copal to form the Copal Amba reporting unit.

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:

Year Ended December 31,2014
MISMAConsolidated
Gross goodwillAccumulated Impairment chargeNet goodwillGross goodwillAccumulated Impairment chargeNet goodwillGross goodwillAccumulated Impairment chargeNet goodwill
Balance at beginning of year$11.4$-$11.4$666.0$(12.2)$653.8$677.4$(12.2)$665.2
Additions/adjustments296.7-296.7101.1-101.1397.8-397.8
Foreign currency translation adjustments(9.4)-(9.4)(32.5)-(32.5)(41.9)-(41.9)
--
Ending balance$298.7$-$298.7$734.6$(12.2)$722.4$1,033.3$(12.2)$1,021.1
Year Ended December 31,2013
MISMAConsolidated
Gross goodwillAccumulated Impairment chargeNet goodwillGross goodwillAccumulated Impairment chargeNet goodwillGross goodwillAccumulated Impairment chargeNet goodwill
Balance at beginning of year$11.5$-$11.5$637.8$(12.2)$625.6$649.3$(12.2)$637.1
Additions/adjustments---34.5-34.534.5-34.5
Foreign currency translation adjustments(0.1)-(0.1)(6.3)-(6.3)(6.4)-(6.4)
Ending balance$11.4$-$11.4$666.0$(12.2)$653.8$677.4$(12.2)$665.2

The 2014 additions/adjustments for the MIS segment in the table above relate to the ICRA acquisition in the second quarter of 2014. The 2014 additions/adjustments for the MA segment relate to the acquisition WebEquity in the third quarter of 2014 and Lewtan in the fourth quarter of 2014 as well as adjustments for Amba which was acquired in the fourth quarter of 2013. The 2013 additions/adjustments for the MA segment relate to the acquisition of Amba.

The accumulated impairment charge in the table above reflects an impairment charge recognized in 2012 relating to the FSTC reporting unit within MA. This impairment charge reflected a contraction in spending for training and certification services for many individuals and global financial institutions in 2012 due to macroeconomic uncertainties at the time. The fair value of the FSTC reporting unit utilized in this impairment assessment was estimated using a discounted cash flow methodology and comparable public company and precedent transaction multiples.

Acquired intangible assets consisted of:

December 31,
20142013
Customer relationships$310.4$237.4
Accumulated amortization(98.1)(86.6)
Net customer relationships212.3150.8
Trade secrets30.631.1
Accumulated amortization(20.9)(18.5)
Net trade secrets9.7-12.6
Software79.871.0
Accumulated amortization(43.0)(38.8)
Net software36.8-32.2
Trade names76.531.3
Accumulated amortization(13.3)(11.7)
Net trade names63.2-19.6
Other44.826.1
Accumulated amortization(21.3)(19.7)
Net other23.5-6.4
Total$345.5$221.6

Other intangible assets primarily consist of databases, covenants not to compete and acquired ratings methodologies and models. Amortization expense relating to intangible assets is as follows:

Year Ended December 31,
201420132012
Amortization expense$28.4$28.0$30.1

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

Year Ended December 31,
2015$33.5
201631.7
201728.1
201822.4
201919.5
Thereafter210.3

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In conjunction with the assessment of goodwill impairment at July 31, 2012, the Company reviewed the recoverability of certain customer lists within its FSTC reporting unit. This review resulted in an impairment of approximately $1 million in the third quarter of 2012 which is recorded in depreciation and amortization expense in the consolidated statement of operations. The fair value of these customer lists was determined using a discounted cash flow analysis. The Company again reviewed the recoverability of these customer lists in the fourth quarter of 2012 in conjunction with the quantitative goodwill impairment test performed at December 31, 2012 for the FSTC reporting unit. Based on this assessment, there was no further impairment of the customer lists in the fourth quarter of 2012. For all intangible assets, there were no such events or changes during 2014 or 2013 that would indicate that the carrying amount of amortizable intangible assets in any of the Company’s reporting units may not be recoverable. Additionally, there were no events or circumstances during 2014 or 2013 that would indicate the need for an adjustment of the remaining useful lives of these amortizable intangible assets.

FAIR VALUE
FAIR VALUE

NOTE 9 FAIR VALUE

The table below presents information about items, which are carried at fair value on a recurring basis at December 31, 2014 and 2013:

Fair Value Measurement as of December 31, 2014
DescriptionBalanceLevel 1Level 2Level 3
Assets:
Derivatives (a)$41.8$-$41.8$-
Money market mutual funds149.7149.7--
Fixed maturity and open ended mutual funds (b)48.048.0--
Total$239.5$197.7$41.8$-
Liabilities:
Derivatives (a)$2.1$-$2.1$-
Contingent consideration arising from acquisitions (c)2.1--2.1
Total$4.2$-$2.1$2.1
Fair Value Measurement as of December 31, 2013
DescriptionBalanceLevel 1Level 2Level 3
Assets:
Derivatives (a)$20.5$-$20.5$-
Money market mutual funds212.3212.3--
Total$232.8$212.3$20.5$-
Liabilities:
Derivatives (a)$1.7$-$1.7$-
Contingent consideration arising from acquisitions (c)17.5--17.5
Total$19.2$-$1.7$17.5
(a) Represents interest rate swaps and FX forwards on certain assets and liabilities as well as on certain non-U.S. dollar net investments in certain foreign subsidiaries more fully discussed in Note 5 to the financial statements
(b) Represents investments in fixed maturity mutual funds and open ended mutual funds held by ICRA. The remaining contractual maturities for the fixed maturity instruments range from two months to 23 months
(c) Represents contingent consideration liabilities pursuant to the agreements for certain acquisitions

The following table summarizes the changes in the fair value of the Company’s Level 3 liabilities:

Changes in Contingent Consideration for Years Ended December 31,
201420132012
Balance as of January 1$ 17.5 $9.0$9.1
Contingent consideration assumed in acquisition of Amba - 4.3-
Contingent consideration payments (16.5)(2.5)(0.5)
Losses included in earnings 1.3 6.90.1
Foreign currency translation adjustments (0.2)(0.2)0.3
Balance as of December 31$ 2.1 $17.5$9.0

The losses included in earnings in the table above are recorded within SG&A expenses in the Company’s consolidated statements of operations and relate to contingent consideration obligations related to the Copal Amba acquisition which were settled in 2014.

The $ 2.1 million of contingent consideration obligations as of December 31, 2014 is classified in other liabilities within the Company’s consolidated balance sheet.

The following are descriptions of the methodologies utilized by the Company for determining the fair value of its derivative contracts, fixed maturity and open-ended mutual funds, money market mutual funds and contingent consideration obligations:

Derivatives:

In determining the fair value of the derivative contracts in the table above, the Company utilizes industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using spot rates, forward points, currency volatilities, interest rates as well as the risk of non-performance of the Company and the counterparties with whom it has derivative contracts. The Company has strict counterparty credit guidelines and only enters into transactions with financial institutions that adhere to these guidelines. Accordingly, the risk of counterparty default is deemed to be minimal.

Fixed maturity and open ended mutual funds:

The fixed maturity mutual funds and open ended mutual funds primarily represent exchange traded funds in India held by ICRA and are classified as securities available-for-sale. Accordingly, any unrealized gains and losses are recognized through OCI until the instruments mature or are sold.

Money market mutual funds:

The money market mutual funds represent publicly traded funds with a stable $1 net asset value.

Contingent Consideration:

At December 31, 2014, the Company has a contingent consideration obligation related to the acquisition of CSI which is carried at estimated fair value, and is based on certain financial and non-financial metrics set forth in the acquisition agreements. This obligation is measured using Level 3 inputs as defined in the ASC. The Company has recorded the obligation for this contingent consideration arrangement on the date of acquisition based on management’s best estimates of the achievement of the metrics and the value of the obligation is adjusted quarterly.

The contingent consideration obligation for CSI is based on the achievement of a certain contractual milestone by January 2016. The Company utilizes a discounted cash flow methodology to value this obligation. The future expected cash flow for this obligation is discounted using an interest rate available to borrowers with similar credit risk profiles to that of the Company. The most significant unobservable input involved in the measurement of this obligation is the probability that the milestone will be reached by January 2016. At December 31, 2014, the Company expects that this milestone will be reached by the aforementioned date.

For certain of the contingent consideration obligations relating to the acquisition of Copal, a portion of the contingent cash payments were based on revenue and EBITDA growth for certain of the Copal entities. This growth was calculated by comparing revenue and EBITDA in the year immediately prior to the exercise of the put/call option to acquire the remaining 33% ownership interest of Copal Partners Limited, to revenue and EBITDA in Copal’s fiscal year ended March 31, 2011. Payments of $12.2 million under this arrangement were made in the fourth quarter of 2014 pursuant to the Company exercising its call option to acquire the remaining shares of Copal Amba. The Company had utilized discounted cash flow methodologies to value these obligations prior to their settlement in 2014. The expected future cash flows for these obligations were discounted using a risk-free interest rate plus a credit spread based on the option adjusted spread of the Company’s publicly traded debt as of the valuation date plus sovereign and size risk premiums. The most significant unobservable input involved in the measurement of these obligations were the projected future financial results of the applicable Copal Amba entities. Other contingent cash payments were based on the achievement of revenue targets for Copal’s fiscal year ended March 31, 2013 and a $2.5 million payment was made in 2013.

For the contingent consideration obligations relating to the acquisition of Amba, the payment was based on the acquired entity achieving a revenue target for its fiscal year ended March 31, 2014 which was met resulting in a $4.3 million payment in 2014.

DETAIL OF CERTAIN BALANCE SHEET INFORMATION
DETAIL OF CERTAIN BALANCE SHEET INFORMATION

NOTE 10 DETAIL OF CERTAIN BALANCE SHEET INFORMATION

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

December 31,
20142013
Other current assets:
Prepaid taxes$65.4$40.0
Prepaid expenses59.948.1
Other 47.226.3
Total other current assets$172.5$114.4
December 31,
20142013
Other assets:
Investments in joint ventures$21.6$37.5
Deposits for real-estate leases11.310.3
Indemnification assets related to acquisitions23.527.0
Fixed maturity and open-ended mutual funds48.0-
Other41.537.3
Total other assets$145.9$112.1
December 31,
20142013
Accounts payable and accrued liabilities:
Salaries and benefits$86.5$77.1
Incentive compensation155.2135.9
Profit sharing contribution9.3-
Customer credits, advanced payments and advanced billings17.021.7
Self-insurance reserves21.527.6
Dividends75.065.5
Professional service fees47.032.9
Interest accrued on debt45.036.3
Accounts payable19.416.4
Income taxes (see Note 14)16.147.5
Pension and other retirement employee benefits (see Note 12)5.17.0
Other60.571.0
Total accounts payable and accrued liabilities$557.6$538.9
December 31,
20142013
Other liabilities:
Pension and other retirement employee benefits (see Note 12)$244.8$164.0
Deferred rent-non-current portion104.2106.3
Interest accrued on UTPs20.818.0
Legacy and other tax matters8.615.4
Other52.556.5
Total other liabilities$430.9$360.2

Year Ended December 31,
201420132012
Balance January 1,$27.6$55.8$27.1
Accruals (reversals), net5.8(0.9)38.1
Payments(11.9)(27.3)(9.4)
Balance December 31,$21.5$27.6$55.8

Redeemable Noncontrolling Interest:

Year Ended December 31,
201420132012
Redeemable Noncontrolling Interest
Balance January 1,$80.0$72.3$60.5
Adjustment due to right of offset for UTPs (1)--6.8
Net earnings9.35.83.6
Dividends(4.9)(6.0)(3.6)
Redemption of noncontrolling interest(183.8)--
FX translation--1.6
Adjustment to redemption value (2)99.47.93.4
Balance December 31,$-$80.0$72.3
(1) Related to an adjustment for the right of offset pursuant to the Copal acquisition agreement whereby the amount due to the sellers under the put/call arrangement was reduced by the amount of UTPs that the Company may be required to pay(2) The adjustment to the redemption value in the year ended December 31, 2014 reflects the aforementioned revisions to the revenue and EBITDA multiples pursuant to the amendment of the put/call agreement which occurred contemporaneously with the acquisition of Amba coupled with growth in the Copal Amba reporting unit. These adjustments are recorded with a corresponding reduction to capital surplus.
PENSION AND OTHER RETIREMENT BENEFITS
PENSION AND OTHER RETIREMENT BENEFITS

NOTE 12 PENSION AND OTHER RETIREMENT BENEFITS  

U.S. Plans

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 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 at the Distribution Date, Moody’s assumed responsibility for the pension and other retirement benefits relating to its active employees. New D&B has assumed responsibility for the Company’s retirees and vested terminated employees as of the Distribution Date.

Through 2007, substantially all U.S. employees were eligible to participate in the Company’s DBPPs. Effective January 1, 2008, the Company no longer offers DBPPs to U.S. employees hired or rehired on or after January 1, 2008 and new hires in the U.S. instead will receive a retirement contribution in similar benefit value under the Company’s Profit Participation Plan. Current participants of the Company’s Retirement Plans and Other Retirement Plans continue to accrue benefits based on existing plan benefit formulas.

Following is a summary of changes in benefit obligations and fair value of plan assets for the Retirement Plans for the years ended December 31:

Pension PlansOther Retirement Plans
2014201320142013
Change in benefit obligation:
Benefit obligation, beginning of the period$ (347.1)$ (356.3)$ (20.7)$ (21.8)
Service cost (18.4) (19.8) (1.7) (1.7)
Interest cost (16.5) (13.5) (0.9) (0.8)
Plan participants’ contributions - - (0.4) (0.3)
Benefits paid 6.4 5.3 0.6 0.6
Actuarial gain (loss) (8.3) (0.7) (0.1) 1.0
Assumption changes (77.9) 37.9 (3.5) 2.3
Benefit obligation, end of the period (461.8) (347.1) (26.7) (20.7)
Change in plan assets:
Fair value of plan assets, beginning of the period 204.6 167.6 - -
Actual return on plan assets 12.9 23.0 - -
Benefits paid (6.4) (5.3) (0.6) (0.6)
Employer contributions 37.3 19.3 0.2 0.3
Plan participants' contributions - - 0.4 0.3
Fair value of plan assets, end of the period 248.4 204.6 - -
Funded Status of the plans (213.4) (142.5) (26.7) (20.7)
 
Amounts recorded on the consolidated balance sheets:
Pension and retirement benefits liability - current (4.3) (6.2) (0.8) (0.8)
Pension and retirement benefits liability - non current (209.1) (136.3) (25.9) (19.9)
Net amount recognized$ (213.4)$ (142.5)$ (26.7)$ (20.7)
 
Accumulated benefit obligation, end of the period$ (396.3)$ (298.5)

The following information is for those pension plans with an accumulated benefit obligation in excess of plan assets:

     December 31,
     2014  2013
Aggregate projected benefit obligation    $ 461.8   $347.1
Aggregate accumulated benefit obligation    $ 396.3   $298.5
Aggregate fair value of plan assets    $ 248.4   $204.6

The following table summarizes the pre-tax net actuarial losses and prior service cost recognized in AOCI for the Company’s Retirement Plans as of December 31:

     Pension Plans    Other Retirement Plans
     2014  2013   2014   2013
Net actuarial losses   $ (165.5)$ (84.6)   $ (6.0)   $ (2.4)
Net prior service costs      (2.7)  (3.3)     -     -
Total recognized in AOCI- pretax    $ (168.2)$ (87.9)   $ (6.0)   $ (2.4)

The following table summarizes the estimated pre-tax net actuarial losses and prior service cost for the Company’s Retirement Plans that will be amortized from AOCI and recognized as components of net periodic expense during the next fiscal year:

     Pension Plans    Other Retirement Plans
Net actuarial losses    $ 13.6   $ 0.3
Net prior service costs      0.7     -
Total to be recognized as components of net periodic expense    $ 14.3   $ 0.3

Net periodic benefit expenses recognized for the Retirement Plans for years ended December 31:

  Pension Plans   Other Retirement Plans
  2014  20132012  2014   2013   2012
Components of net periodic expense        
Service cost $ 18.4  $ 19.8  $ 18.9  $ 1.7   $ 1.7   $ 1.5
Interest cost   16.5    13.5    13.1    0.9     0.8     0.7
Expected return on plan assets   (14.3)  (12.9)  (12.5)    -     -     -
Amortization of net actuarial loss from earlier periods   6.6     10.8     9.1    -     0.3     0.3
Amortization of net prior service costs from earlier periods   0.7    0.6    0.7    -     -     -
Net periodic expense $ 27.9  $ 31.8  $ 29.3  $ 2.6   $ 2.8   $ 2.5

The following table summarizes the pre-tax amounts recorded in OCI related to the Company’s Retirement Plans for the years ended December 31:

     Pension Plans   Other Retirement Plans
   20142013  2014   2013
Amortization of net actuarial losses    $ 6.6 $ 10.8  $ -   $ 0.3
Amortization of prior service costs      0.7  0.6    -     -
Net actuarial gain (loss) arising during the period      (87.5)  47.3    (3.7)     3.3
Total recognized in OCI – pre-tax    $ (80.2) $ 58.7  $ (3.7)   $ 3.6

  Pension Plans Other Retirement Plans
  2014  20132014  2013
Discount rate   3.78%4.71%3.65%4.45%
Rate of compensation increase   3.76%4.00%-   -

Weighted-average assumptions used to determine net periodic benefit expense for years ended December 31:

     Pension Plans   Other Retirement Plans
   2014  2013  2012  2014  2013  2012
Discount rate    4.71%  3.82%4.25%4.45%  3.55%  4.05%
Expected return on plan assets    6.80%  7.30%7.85%-  -  -
Rate of compensation increase    4.00%  4.00%4.00%-  -  -

The expected rate of return on plan assets represents the Company’s best estimate of the long-term return on plan assets and is determined by using a building block approach, which generally weighs the underlying long-term expected rate of return for each major asset class based on their respective allocation target within the plan portfolio, net of plan paid expenses. As the assumption reflects a long-term time horizon, the plan performance in any one particular year does not, by itself, significantly influence the Company’s evaluation. For 2014, the expected rate of return used in calculating the net periodic benefit costs was 6.80%. For 2015, the Company reduced the expected rate of return assumption to 5.80%

The assumed health cost trend rate reflects different expectations for the medical and prescribed medication components of health care costs for pre and post-65 retirees. As the Company subsidies for retiree healthcare coverage are capped at the 2005 level, for the majority of the retirement health plan participants, retiree contributions are assumed to increase at the same rate as the healthcare cost trend rates. In 2013, the Company revised its trend rates to reflect current expectations of future health care inflation. A one percentage-point increase or decrease in assumed healthcare cost trend rates would not have affected total service and interest cost and would have a minimal impact on the retiree medical benefit obligation.

In 2012, the Company amended its retiree medical plan to modify its current design. Effective January 1, 2013, the newly implemented plan design provides current retirees age 65 and older with the option over the next three years to either enroll in a new Health Reimbursement Account (HRA) Program and receive a fixed amount annual subsidy or continue to stay in the current retiree medical plan. All future retirees age 65 and older will have to participate in the new HRA Program. There is no change to pre-65 coverage. As the new plan was designed to be cost neutral to the Company, the amendment of the plan had no significant impact to the plan.

Plan Assets

Moody’s investment objective for the assets in the funded pension plan is to earn total returns that will minimize future contribution requirements over the long-term within a prudent level of risk. The Company works with its independent investment consultants to determine asset allocation targets for its pension plan investment portfolio based on its assessment of business and financial conditions, demographic and actuarial data, funding characteristics, and related risk factors. Other relevant factors, including historical and forward looking views of inflation and capital market returns, are also considered. Risk management practices include monitoring plan asset performance, diversification across asset classes and investment styles, and periodic rebalancing toward asset allocation targets. The Company’s Asset Management Committee is responsible for overseeing the investment activities of the plan, which includes selecting acceptable asset classes, defining allowable ranges of holdings by asset class and by individual investment managers, defining acceptable securities within each asset class, and establishing investment performance expectations. Ongoing monitoring of the plan includes reviews of investment performance and managers on a regular basis, annual liability measurements, and periodic asset/liability studies.

In 2014, the Company implemented a revised investment policy, which uses risk-controlled investment strategies by increasing the plan’s asset allocation to fixed income securities and specifying ranges of acceptable target allocation by asset class based on different levels of the plan’s accounting funded status. In addition, the investment policy also requires the investment grade fixed income asset be rebalanced between shorter and longer duration bonds as the interest rate environment changes. This revised investment policy is designed to help protect the plan’s funded status and to limit volatility of the Company’s contributions. Based on the revised policy, the Company’s current target asset allocation is approximately 53% (range of 48% to 58%) in equity securities, 40% (range of 35% to 45%) in fixed income securities and 7% (range of 4% to 10% ) in other investments and the plan will use a combination of active and passive investment strategies and different investment styles for its investment portfolios within each asset class. The plan’s equity investments are diversified across U.S. and non-U.S. stocks of small, medium and large capitalization. The plan’s fixed income investments are diversified principally across U.S. and non-U.S. government and corporate bonds which are expected to help reduce plan exposure to interest rate variation and to better align assets with obligations. The plan also invests in other fixed income investments such debts rated below investment grade, emerging market debt, and convertible securities. The plan’s other investment, which is made through private real estate investment trust fund, is expected to provide additional diversification benefits and absolute return enhancement to the plan assets. Prior to the implementation of the revised policy, the Company’s target asset allocation was approximately, 60%, 33%, and 7% in equities, fixed income, and other investment, respectively.

Fair value of the assets in the Company’s funded pension plan by asset category at December 31, 2014 and 2013 are as follows:

Fair Value Measurement as of December 31, 2014
Asset CategoryBalanceLevel 1Level 2Level 3% of total assets
Cash and cash equivalent$13.2$-$13.2$-5%
Emerging markets equity fund14.0$14.0$--6%
Common/collective trust funds - equity securities
Global large-cap92.2-92.2-37%
U.S. small and mid-cap16.5-16.5-7%
Total equity investments122.714.0108.7-50%
Emerging markets bond fund 9.19.1--4%
Common/collective trust funds - fixed income securities
Intermediate-term investment grade U.S. government/ corporate bonds60.8-60.8-24%
U.S. Treasury Inflation-Protected Securities (TIPs)10.7-10.7-4%
Convertible securities 7.5-7.5-3%
Private investment fund - high yield securities6.7-6.7-3%
Total fixed-income investments94.89.185.7-38%
Other investment- Common/collective trust fund — private real estate fund17.8-17.8-7%
Total Assets$248.5$23.1$207.6$-100%
Fair Value Measurement as of December 31, 2013
Asset CategoryBalanceLevel 1Level 2Level 3% of total assets
Cash and cash equivalent$0.4$-$0.4$--
Emerging markets equity fund14.6$14.6$--7%
Common/collective trust funds - equity securities
U.S. large-cap44.5-44.5-22%
U.S. small and mid-cap15.3-15.3-7%
International58.2-58.2-29%
Total equity investments132.614.6118.0 - 65%
Common/collective trust funds - fixed income securities
Long-term government/treasury bonds13.7-13.7-7%
Long-term investment grade corporate bonds15.4-15.4-7%
U.S. Treasury Inflation-Protected Securities (TIPs)8.7-8.7-4%
Emerging markets bonds5.8-5.8-3%
High yield bonds6.1-6.1-3%
Convertible securities6.3-6.3-3%
Total fixed-income investments56.0 - 56.0 - 27%
Other investment - Common/collective trust fund - private real estate fund15.6--15.68%
Total Assets$204.6$14.6$174.4$15.6100%

Cash and cash equivalents are primarily comprised of investment in money market mutual funds. In determining fair value, Level 1 investments are valued based on quoted market prices in active markets. Investments in common/collective trust funds are valued using the net asset value (NAV) per unit in each fund. The NAV is based on the value of the underlying investments owned by each trust, minus its liabilities, and then divided by the number of shares outstanding. Common/collective trust funds are categorized in Level 2 to the extent that they are readily redeemable at their NAV as of the measurement date or in the near feature or else they are categorized in Level 3 of the fair value hierarchy.

The table below is a summary of changes in the fair value of the Plan’s Level 3 assets:

Real estate investment fund:
Balance as of December 31, 2013$ 15.6
Return on plan assets related to assets held as of December 31, 2014  1.6
Transfer (out), net  (17.8)
Purchases (sales), net   0.6
Balance as of December 31, 2014$ -

Except for the Company’s U.S. funded pension plan, all of Moody’s Retirement Plans are unfunded and therefore have no plan assets.

Cash Flows

The Company contributed $33.7 million and $16.8 million to its U.S. funded pension plan during the years ended December 31, 2014 and 2013, respectively. The Company made payments of $3.6 million and $2.5 million related to its U.S. unfunded pension plan obligations during the years ended December 31, 2014 and 2013, respectively. The Company made payments of $0.6 million to its Other Retirement Plans during both the years ended December 31, 2014 and 2013. The Company presently anticipates making contributions of $9.0 million to its funded pension plan and anticipates making payments of $4.3 million related to its unfunded U.S. pension plans and $0.8 million related to its Other Retirement Plans during the year ended December 31, 2015.

Estimated Future Benefits Payable

Estimated future benefits payments for the Retirement Plans are as follows at ended December 31, 2014:

Year Ending December 31,    Pension Plans   Other  Retirement Plans
2015   $ 8.3   $ 0.8
2016     10.3     1.0
2017     10.9     1.1
2018     39.6     1.3
2019     14.0     1.5
2020 – 2024   $ 110.5   $ 9.6

Defined Contribution Plans

Moody’s has a Profit Participation Plan covering substantially all U.S. employees. The Profit Participation Plan provides for an employee salary deferral and the Company matches employee contributions, equal to 50% of employee contribution up to a maximum of 3% of the employee’s pay. Moody’s also makes additional contributions to the Profit Participation Plan based on year-to-year growth in the Company’s EPS. Effective January 1, 2008, all new hires are automatically enrolled in the Profit Participation Plan when they meet eligibility requirements unless they decline participation. As the Company’s U.S. DBPPs are closed to new entrants effective January 1, 2008, all eligible new hires will instead receive a retirement contribution into the Profit Participation Plan in value similar to the pension benefits. Additionally, effective January 1, 2008, the Company implemented a deferred compensation plan in the U.S., which is unfunded and provides for employee deferral of compensation and Company matching contributions related to compensation in excess of the IRS limitations on benefits and contributions under qualified retirement plans. Total expenses associated with U.S. defined contribution plans were $26.8 million, $18.8 million and $24.5 million in 2014, 2013, and 2012, respectively.

Effective January 1, 2008, Moody’s has designated the Moody’s Stock Fund, an investment option under the Profit Participation Plan, as an Employee Stock Ownership Plan and, as a result, participants in the Moody’s Stock Fund may receive dividends in cash or may reinvest such dividends into the Moody’s Stock Fund. Moody’s paid approximately $0.6 million and $0.5 million in dividends during the years ended December 31, 2014 and 2013, respectively, for the Company’s common shares held by the Moody’s Stock Fund. The Company records the dividends as a reduction of retained earnings in the Consolidated Statements of Shareholders’ Equity (Deficit). The Moody’s Stock Fund held approximately 490,000 and 520,000 shares of Moody’s common stock at December 31, 2014 and 2013, respectively.

International Plans

Certain of the Company’s international operations provide pension benefits to their employees. For defined contribution plans, company contributions are primarily determined as a percentage of employees’ eligible compensation. Moody’s also makes contributions to non-U.S. employees under a profit sharing plan which is based on year-to-year growth in the Company’s diluted EPS. Expenses related to these defined contribution plans for the years ended December 31, 2014, 2013 and 2012 were $30.6 million, $19.7 million and $18.8 million, respectively.

For defined benefit plans, the Company maintains various unfunded DBPPs and retirement health benefit plan for certain of its non-U.S. subsidiaries located in Germany, France and Canada. These unfunded DBPPs are generally based on each eligible employee’s years of credited service and on compensation levels as specified in the plans. The DBPP in Germany was closed to new entrants in 2002. Total defined benefit pension liabilities recorded related to non-U.S. pension plans was $9.8 million, $7.8 million and $7.2 million based on a weighted average discount rate of 2.00%, 3.58% and 3.53% at December 31, 2014, 2013 and 2012, respectively. The pension liabilities recorded as of December 31, 2014 represent the unfunded status of these pension plans and were recognized in the consolidated balance sheet as mostly non-current liabilities. Total pension expense recorded for the years ended December 31, 2014, 2013 and 2012 was approximately $0.6 million for each year. These amounts are not included in the tables above. As of December 31, 2014, the amount of net actuarial losses included in AOCI related to non-U.S. pension plans was $1.8 million net of tax. The Company’s non-U.S. other retirement benefit obligation was also immaterial as of December 31, 2014.

STOCK - BASED COMPENSATION PLANS
STOCK - BASED COMPENSATION PLANS

NOTE 13 STOCK-BASED COMPENSATION PLANS

Under the 1998 Plan, 33.0 million shares of the Company’s common stock have been reserved for issuance. The 2001 Plan, which is shareholder approved, permits the granting of up to 50.6 million shares, of which not more than 14.0 million shares are available for grants of awards other than stock options. The Stock Plans also provide for the granting of restricted stock. The Stock Plans provide that options are exercisable not later than ten years from the grant date. The vesting period for awards under the Stock Plans is generally determined by the Board at the date of the grant and has been four years except for employees who are at or near retirement eligibility, as defined, for which vesting is between one and four years. Additionally, the vesting period is three years for certain performance-based restricted stock that contain a condition whereby the number of shares that ultimately vest are based on the achievement of certain non-market based performance metrics of the Company. Options may not be granted at less than the fair market value of the Company’s common stock at the date of grant.

The Company maintains the Directors’ Plan for its Board, which permits the granting of awards in the form of non-qualified stock options, restricted stock or performance shares. The Directors’ Plan provides that options are exercisable not later than ten years from the grant date. The vesting period is determined by the Board at the date of the grant and is generally one year for both options and restricted stock. Under the Directors’ Plan, 1.7 million shares of common stock were reserved for issuance. Any director of the Company who is not an employee of the Company or any of its subsidiaries as of the date that an award is granted is eligible to participate in the Directors’ Plan.

Presented below is a summary of the stock-based compensation expense and associated tax benefit in the accompanying Consolidated Statements of Operations:

Year Ended December 31,
201420132012
Stock-based compensation expense$80.4$67.1$64.5
Tax benefit$27.5$24.7$23.3

The fair value of each employee stock option award is estimated on the date of grant using the Black-Scholes option-pricing model that uses the assumptions noted below. The expected dividend yield is derived from the annual dividend rate on the date of grant. The expected stock volatility is based on an assessment of historical weekly stock prices of the Company as well as implied volatility from Moody’s traded options. The risk-free interest rate is based on U.S. government zero coupon bonds with maturities similar to the expected holding period. The expected holding period was determined by examining historical and projected post-vesting exercise behavior activity.

The following weighted average assumptions were used for options granted:

Year Ended December 31,
201420132012
Expected dividend yield1.41%1.72%1.66%
Expected stock volatility41%43%44%
Risk-free interest rate2.30%1.53%1.55%
Expected holding period7.2 years7.2 years7.4 years
Grant date fair value$31.53$17.58$15.19

A summary of option activity as of December 31, 2014 and changes during the year then ended is presented below:

OptionsSharesWeighted Average Exercise Price Per ShareWeighted Average Remaining Contractual TermAggregate Intrinsic Value
Outstanding, December 31, 20138.9$45.00
Granted0.379.57
Exercised(3.2)46.40
Outstanding, December 31, 20146.0$46.004.2 yrs$299.5
Vested and expected to vest, December 31, 20145.9$45.844.1 yrs$295.6
Exercisable, December 31, 20145.0$44.793.4 yrs$252.6

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between Moody’s closing stock price on the last trading day of the year ended December 31, 2014 and the exercise prices, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options as of December 31, 2014. This amount varies based on the fair value of Moody’s stock. As of December 31, 2014 there was $7.4 million of total unrecognized compensation expense related to options. The expense is expected to be recognized over a weighted average period of 1.4 years.

The following table summarizes information relating to stock option exercises:

Year Ended December 31,
201420132012
Proceeds from stock option exercises$145.5$163.3$127.4
Aggregate intrinsic value$122.3$112.4$61.3
Tax benefit realized upon exercise$43.2$41.1$23.4

A summary of the status of the Company’s nonvested restricted stock as of December 31, 2014 and changes during the year then ended is presented below:

Nonvested Restricted StockSharesWeighted Average Grant Date Fair Value Per Share
Balance, December 31, 20133.1$39.30
Granted0.979.69
Vested(1.2)36.19
Forfeited(0.1)50.45
Balance, December 31, 20142.7$53.98

As of December 31, 2014, there was $81.9 million of total unrecognized compensation expense related to nonvested restricted stock. The expense is expected to be recognized over a weighted average period of 1.6 years.

The following table summarizes information relating to the vesting of restricted stock awards:

Year Ended December 31,
201420132012
Fair value of shares upon delivery$92.4$54.6$37.8
Tax benefit realized upon delivery$31.2$19.3$13.4

A summary of the status of the Company’s performance-based restricted stock as of December 31, 2014 and changes during the year then ended is presented below:

Performance-based restricted stockSharesWeighted Average Grant Date Fair Value Per Share
Balance, December 31, 20131.2$31.17
Granted0.2$76.35
Vested(0.5)$28.76
Balance, December 31, 20140.9$46.09
INCOME TAXES
INCOME TAXES

NOTE 14 INCOME TAXES

Components of the Company’s provision for income taxes are as follows:

Year Ended December 31,
201420132012
Current:
Federal$252.8$226.2$168.1
State and Local70.257.633.7
Non-U.S.102.196.886.4
Total current425.1380.6288.2
Deferred:
Federal0.9(13.1)35.7
State and Local4.9(5.6)4.5
Non-U.S.24.1(8.5)(4.1)
Total deferred29.9(27.2)36.1
Total provision for income taxes$455.0$353.4$324.3

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate on income before provision for income taxes is as follows:

Year Ended December 31,
201420132012
U.S. statutory tax rate35.0%35.0%35.0%
State and local taxes, net of federal tax benefit3.62.92.4
Benefit of foreign operations(7.4)(6.4)(6.1)
Legacy tax items(0.2)(0.6)(0.4)
Other0.1(0.7)0.8
Effective tax rate31.1%30.2%31.7%
Income tax paid$369.4$335.7(1)$293.3
(1) Includes fourth quarter 2012 estimated federal tax payment made in 2013 due to IRS relief for companies affected by Hurricane Sandy
(2) Includes approximately $92 million in payments for tax audit settlements in the first quarter of 2012.

The source of income before provision for income taxes is as follows:

Year Ended December 31,
201420132012
United States$912.6$836.1$694.2
International548.4333.2329.8
Income before provision for income taxes$1,461.0$1,169.3$1,024.0

The components of deferred tax assets and liabilities are as follows:

December 31,
20142013
Deferred tax assets:
Current:
Account receivable allowances$7.7$8.2
Accrued compensation and benefits14.612.8
Deferred revenue6.77.3
Legal and professional fees10.410.9
Restructuring2.33.5
Uncertain tax positions-7.5
Other3.50.7
Total current45.250.9
Non-current:
Accumulated depreciation and amortization0.92.6
Stock-based compensation62.373.7
Benefit plans108.778.9
Deferred rent and construction allowance30.530.4
Deferred revenue34.233.4
Foreign net operating loss (1)7.510.6
Uncertain tax positions38.326.8
Self-insured related reserves14.920.4
Other5.64.3
Total non-current302.9281.1
Total deferred tax assets348.1332.0
Deferred tax liabilities:
Current:
Compensation and benefits(3.0)-
Unrealized gain on net investment hedges - OCI(14.0)-
Other(1.1)-
Total Current(18.1)-
Non-current:
Accumulated depreciation and amortization of intangible assets and capitalized software(204.3)(153.7)
Foreign earnings to be repatriated(3.4)(3.7)
Self-insured related income(16.9)(24.0)
Other liabilities(0.1)(2.7)
Total non-current(224.7)(184.1)
Total deferred tax liabilities(242.8)(184.1)
Net deferred tax asset105.3147.9
Valuation allowance(6.9)(8.4)
Total net deferred tax assets$98.4$139.5
(1) Amounts are primarily set to expire beginning in 2018, if unused.

As of December 31, 2014, the Company had approximately $2,032.0 million of undistributed earnings of foreign subsidiaries that it intends to indefinitely reinvest in foreign operations. The Company has not provided deferred income taxes on these indefinitely reinvested earnings. It is not practicable to determine the amount of deferred taxes that might be required to be provided if such earnings were distributed in the future, due to complexities in the tax laws and in the hypothetical calculations that would have to be made.

The Company had valuation allowances of $6.9 million and $8.4 million at December 31, 2014 and 2013, respectively, related to foreign net operating losses for which realization is uncertain.

As of December 31, 2014 the Company had $220.3 million of UTPs of which $157.1 million represents the amount that, if recognized, would impact the effective tax rate in future periods.

A reconciliation of the beginning and ending amount of UTPs is as follows:

Year Ended December 31,
201420132012
Balance as of January 1$195.6$156.6$205.4
Additions for tax positions related to the current year52.567.849.1
Additions for tax positions of prior years8.76.118.9
Reductions for tax positions of prior years(13.0)(10.1)(20.6)
Settlements with taxing authorities(18.8)(21.4)(91.5)
Lapse of statute of limitations(4.7)(3.4)(4.7)
Balance as of December 31$220.3$195.6$156.6

The Company classifies interest related to UTPs in interest expense in its consolidated statements of operations. Penalties, if incurred, would be recognized in other non-operating expenses. During the years ended December 31, 2014 and 2013, the Company incurred a net interest expense of $5.5 million and $7.6 million respectively, related to UTPs. During 2012, the Company realized a net interest benefit of $1.6 million related to UTPs. As of December 31, 2014 and 2013, the amount of accrued interest recorded in the Company’s consolidated balance sheets related to UTPs was $20.8 million and $17.9 million, respectively.

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 2008 through 2010 are under examination and its 2011 to and 2013 returns remain open to examination. The Company’s New York State income tax returns for 2011 to 2013 remain open to examination. The Company’s New York City income tax returns have been examined through 2012. The Company settled the U.K. tax audit for tax years 2007 through 2011 during the first quarter of 2014. Tax filings in the U.K. remain open to examination for tax years 2012 through 2013.

For current ongoing audits related to open tax years, the Company estimates that it is possible that the balance of UTPs could decrease in the next twelve months as a result of the effective 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 might necessitate increases to the balance of UTPs. As the Company is unable to predict the timing of conclusion of these audits, the Company is unable to estimate the amount of changes to the balance of UTPs at this time.

INDEBTEDNESS
INDEBTEDNESS

NOTE 15 INDEBTEDNESS

The following table summarizes total indebtedness:

December 31,
20142013
2012 Facility$-$-
Notes payable:
Series 2005-1 Notes due 2015, including fair value of interest rate swap of $10.3 million at 2013-310.3
Series 2007-1 Notes due in 2017300.0300.0
2010 Senior Notes, due 2020, net of unamortized discount of $2.0 million and $2.2 million in 2014 and 2013, respectively, and includes a $5.8 million fair value adjustment on an interest rate hedge in 2014503.8497.8
2012 Senior Notes, due 2022, net of unamortized discount of $3.1 million in 2014 and $3.5 million in 2013496.9496.5
2013 Senior Notes, due 2024, net of unamortized discount of $2.5 million in 2014 and $2.8 million in 2013497.5497.2
2014 Senior Notes (5-Year), due 2019, net of unamortized discount of $0.7 million in 2014 and includes a $1.4 million fair value adjustment on an interest rate hedge in 2014450.7-
2014 Senior Notes (30-Year), due 2044, net of unamortized discount of $1.6 million in 2014298.4-
Total long-term debt2,547.32,101.8

2012 Facility

On April 18, 2012, the Company and certain of its subsidiaries entered into a $1 billion five-year senior, unsecured revolving credit facility in an aggregate principal amount of $1 billion that expires in April 2017. The 2012 Facility replaced the $1 billion 2007 Facility that was scheduled to expire in September 2012. The proceeds from the 2012 Facility will be used for general corporate purposes, including, without limitation, share repurchases and acquisition financings. Interest on borrowings under the facility is payable at rates that are based on LIBOR plus a premium that can range from 77.5 basis points to 120 basis points per annum of the outstanding amount, depending on the Company’s Debt/EBITDA ratio. The Company also pays quarterly facility fees, regardless of borrowing activity under the 2012 Facility. These quarterly fees can range from 10 basis points of the facility amount to 17.5 basis points, depending on the Company’s Debt/ EBITDA Ratio.

The 2012 Facility contains covenants that, among other things, restrict the ability of the Company and its subsidiaries, without the approval of the lenders, to engage in mergers, consolidations, asset sales, transactions with affiliates and sale-leaseback transactions or to incur liens, as set forth in the facility agreement. The 2012 Facility also contains a financial covenant that requires the Company to maintain a Debt to EBITDA Ratio of not more than 4 to 1 at the end of any fiscal quarter. Upon the occurrence of certain financial or economic events, significant corporate events or certain other events constituting an event of default under the 2012 Facility, all loans outstanding under the facility (including accrued interest and fees payable thereunder) may be declared immediately due and payable and all commitments under the facility may be terminated.

Notes Payable

On September 30, 2005, the Company issued and sold through a private placement transaction, $300.0 million aggregate principal amount of its Series 2005-1 Senior Unsecured Notes due 2015 pursuant to the 2005 Agreement. The Series 2005-1 Notes had a ten-year term and bore interest at an annual rate of 4.98%, payable semi-annually on March 30 and September 30. Proceeds from the sale of the Series 2005-1 Notes were used to refinance $300.0 million aggregate principal amount of the Company’s outstanding 7.61% senior notes which matured on September 30, 2005. On August 7, 2014, the Company prepaid the Series 2005-1 Notes using proceeds from the issuance of the 2014 Senior Notes (30-year) and the 2014 Senior Notes (5-year).

On September 7, 2007, the Company issued and sold through a private placement transaction, $300.0 million aggregate principal amount of its 6.06% Series 2007-1 Senior Unsecured Notes due 2017 pursuant to the 2007 Agreement. The Series 2007-1 Notes have a ten-year term and bear interest at an annual rate of 6.06%, payable semi-annually on March 7 and September 7. The Company may prepay the Series 2007-1 Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make Whole Amount. The 2007 Agreement contains covenants that limit the ability of the Company, and certain of its subsidiaries to, among other things: enter into transactions with affiliates, dispose of assets, incur or create liens, enter into any sale-leaseback transactions, or merge with any other corporation or convey, transfer or lease substantially all of its assets. The Company must also not permit its Debt/EBITDA ratio to exceed 4.0 to 1.0 at the end of any fiscal quarter.

On August 19, 2010, the Company issued $500 million aggregate principal amount of senior unsecured notes in a public offering. The 2010 Senior Notes bear interest at a fixed rate of 5.50% and mature on September 1, 2020. Interest on the 2010 Senior Notes will be due semi-annually on September 1 and March 1 of each year, commencing March 1, 2011. The Company may prepay the 2010 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Additionally, 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 2010 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2010 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 2010 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 2010 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 2010 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 2010 Indenture, the 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.

On November 4, 2011, in connection with the acquisition of Copal, a subsidiary of the Company issued a $14.2 million non-interest bearing note to the sellers which represented a portion of the consideration transferred to acquire the Copal entities. If a seller subsequently transfers to the Company all of its shares, the Company must repay the seller its proportion of the principal on the later of (i) the fourth anniversary date of the note or (ii) within a time frame set forth in the acquisition agreement relating to the resolution of certain income tax uncertainties pertaining to the transaction. The Company has the right to offset payment of the note against certain indemnification assets associated with UTPs related to the acquisition. Accordingly, the Company has offset the liability for this note against the indemnification asset, thus no balance for this note is carried on the Company’s consolidated balance sheet at December 31, 2014 and 2013. In the event that the Company would not be required to settle amounts related to the UTPs, the Company would be required to pay the sellers the principal in accordance with the note agreement. The Company may prepay the note in accordance with certain terms set forth in the acquisition agreement.

On August 20, 2012, the Company issued $500 million aggregate principal amount of unsecured notes in a public offering. The 2012 Senior Notes bear interest at a fixed rate of 4.50% and mature on September 1, 2022. Interest on the 2012 Senior Notes will be due semi-annually on September 1 and March 1 of each year, commencing March 1, 2013. The Company may prepay the 2012 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Additionally, 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 2012 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2012 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 2012 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 2012 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 2012 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 2012 Indenture, the 2012 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.

On August 12, 2013, the Company issued $500 million aggregate principal amount of senior unsecured notes in a public offering. The 2013 Senior Notes bear interest at a fixed rate of 4.875% and mature on February 15, 2024. Interest on the 2013 Senior Notes will be due semi-annually on February 15 and August 15 of each year, commencing February 15, 2014. The Company may prepay the 2013 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Notwithstanding the immediately preceding sentence, the Company may redeem the 2013 Senior Notes, in whole or in part, at any time or from time to time on or after November 15, 2023 (three months prior to their maturity), at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date. Additionally, 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 2013 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2013 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 2013 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 2013 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 2013 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 2013 Indenture, the 2013 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.

On July 16, 2014, the Company issued $300 million aggregate principal amount of senior unsecured notes in a public offering. The 2014 Senior Notes (30-year) bear interest at a fixed rate of 5.25% and mature on July 15, 2044. Interest on the 2014 Senior Notes (30-year) will be due semi-annually on January 15 and July 15 of each year, commencing January 15, 2015. The Company may prepay the 2014 Senior Notes (30-year), in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Additionally, 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 2014 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2014 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 2014 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 2014 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 2014 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 2014 Indenture, the 2014 Senior Notes (30-year) 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.

On July 16, 2014, the Company issued $450 million aggregate principal amount of senior unsecured notes in a public offering. The 2014 Senior Notes (5-year) bear interest at a fixed rate of 2.75% and mature July 15, 2019. Interest on the 2014 Senior Notes (5-year) will be due semi-annually on January 15 and July 15 of each year, commencing January 15, 2015. The Company may prepay the 2014 Senior Notes (5-year), in whole or in part, at any time at a price prior to June 15, 2019, equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. Notwithstanding the immediately preceding sentence, the Company may redeem the 2014 Senior Notes (5-year), in whole or in part, at any time or from time to time on or after June 15, 2019 (one month prior to their maturity), at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date. Additionally, 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 2014 Indenture, at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The 2014 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 2014 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 2014 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 2014 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 2014 Indenture, the 2014 Senior Notes (5-year) 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.

On August 7, 2014, the Company prepaid the Series 2005-1 Notes using proceeds from the issuance of the 2014 Senior Notes (30-year) and the 2014 Senior Notes (5-year). The proceeds from the July 16, 2014 issuance will also be used for general corporate purposes.

The principal payments due on the Company’s long-term borrowings for each of the next five years are presented in the table below:

Year Ending December 31,Series 2007-1 Notes2010 Senior Notes2012 Senior Notes2013 Senior Notes2014 Senior Notes (5-year)2014 Senior Notes (30-year)Total
2015$-$-$-$-$-$-$-
2016-------
2017300.0-----300.0
2018-------
2019----450.0-450.0
Thereafter-500.0500.0500.0-300.01,800.0
Total$300.0$500.0$500.0$500.0$450.0$300.0$2,550.0

The Company entered into interest rate swaps on the 2010 Senior Notes and the 2014 Senior Notes (5-year) which are more fully discussed in Note 5.

At December 31, 2014, the Company was in compliance with all covenants contained within all of the debt agreements. In addition to the covenants described above, the 2014 Indenture, the 2012 Facility, the 2007 Agreement, the 2013 Indenture, the 2012 Indenture and the 2010 Indenture contain cross default provisions. These provisions state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of December 31, 2014, there are no such cross defaults.

INTEREST EXPENSE, NET

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

Year Ended December 31,
201420132012
Income$6.7$5.5$5.2
Expense on borrowings (a)(118.4)(92.3)(73.8)
Expense on UTPs and other tax related liabilities (b)(5.8)(8.6)0.4
Legacy Tax (c)0.73.64.4
Total$(116.8)$(91.8)$(63.8)
Interest paid (d)$113.7$81.9$94.4
(a) Includes approximately $11 million in 2014 in net costs related to the prepayment of the Series 2005-1 Notes.(b) Includes $2.0 million in 2014 relating to a reversal of an interest accrual relating to the favorable resolution of an international tax matter.(c) Represents a reduction of accrued interest related to the favorable resolution of Legacy Tax Matters, further discussed in Note 18 to the consolidated financial statements.(d) Interest paid includes payments of interest relating to the settlement of income tax audits in the first quarter of 2012 as well as net settlements on interest rate swaps more fully discussed in Note 5.

The Company’s long-term debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for the Series 2005-1 Notes, the 2010 Senior Notes, and the 2014 Senior Notes (5-Year) which are recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge the fair value of the note. The fair value and carrying value of the Company’s long-term debt as of December 31, 2014 and December 31, 2013 are as follows:

December 31, 2014December 31, 2013
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
Series 2005-1 Notes$-$-$310.3$319.2
Series 2007-1 Notes300.0334.6300.0334.7
2010 Senior Notes 503.8564.4497.8536.6
2012 Senior Notes 496.9537.1496.5497.0
2013 Senior Notes 497.5548.4497.2501.2
2014 Senior Notes (5-Year) 450.7454.3--
2014 Senior Notes (30-Year)298.4333.9--
Total$2,547.3$2,772.7$2,101.8$2,188.7

The fair value of the Company’s long-term debt is estimated using discounted cash flows based on prevailing interest rates available to the Company for borrowings with similar maturities.

CAPITAL STOCK
CAPITAL STOCK

NOTE 16 CAPITAL STOCK

Authorized Capital Stock

The total number of shares of all classes of stock that the Company has authority to issue under its Restated Certificate of Incorporation is 1.02 billion shares with a par value of $0.01, of which 1.0 billion are shares of common stock, 10.0 million are shares of preferred stock and 10.0 million are shares of series common stock. The preferred stock and series common stock can be issued with varying terms, as determined by the Board.

Share Repurchase Program

The Company implemented a systematic share repurchase program in the third quarter of 2005 through an SEC Rule 10b5-1 program. Moody’s may also purchase opportunistically when conditions warrant. As a result, Moody’s share repurchase activity will continue to vary from quarter to quarter. The table below summarizes the Company’s remaining authority under the various share repurchase programs as of December 31, 2014:

Date AuthorizedAmount AuthorizedRemaining Authority
February 12, 2013$1,000.0$-
February 11, 2014$1,000.0$563.5
December 16, 2014$1,000.0$1,000.0

During 2014, Moody’s repurchased 13.8 million shares of its common stock under its share repurchase program and issued 4.9 million shares under employee stock-based compensation plans.

Dividends

The Company’s cash dividends were:

Dividends Per Share
Year ended December 31,
201420132012
DeclaredPaidDeclaredPaidDeclaredPaid
First quarter$-$0.28$-$0.20$-$0.16
Second quarter0.280.280.200.200.160.16
Third quarter0.280.280.250.250.160.16
Fourth quarter0.620.280.530.250.360.16
Total$1.18$1.12$0.98$0.90$0.68$0.64

On December 16, 2014, the Board of the Company approved the declaration of a quarterly dividend of $0.34 per share of Moody’s common stock, payable on March 10, 2015 to shareholders of record at the close of business on February 20, 2015. The continued payment of dividends at the rate noted above, or at all, is subject to the discretion of the Board..

LEASE COMMITMENTS
LEASE COMMITMENTS

Future minimum operating lease payments have been reduced by future minimum sublease income of $3.7 million.

On October 20, 2006, the Company entered into a 21-year operating lease agreement to occupy 15 floors of an office building at

7WTC which includes a total of 20 years of renewal options. On October 21, 2013, the Company entered into a 14-year lease for

an additional three floors at its 7WTC headquarters which became effective on January 2, 2014, these floors have the same renewal option as the original lease.

On February 6, 2008, the Company entered into a 17.5 year operating lease agreement to occupy six floors of an office tower located in the Canary Wharf district of London, England, which includes a total of 15 years of renewal options.

CONTINGENCIES
CONTINGENCIES

NOTE 18 CONTINGENCIES

SEGMENT INFORMATION
SEGMENT INFORMATION

NOTE 19 SEGMENT INFORMATION

The Company is organized into three operating segments: (i) MIS, (ii) MA and (iii) Copal Amba. The Copal Amba operating segment has been aggregated with the MA operating segment based on the fact that it has similar economic characteristics to MA. Accordingly, the Company reports in two reportable segments: MIS and MA.

In January 2014, the Company revised its operating segments to create the new Copal Amba operating segment.  The new operating segment consists of all operations from Copal and the operations of Amba which was acquired in December 2013.  The Copal Amba operating segment provides offshore research and analytic services to the global financial and corporate sectors.  The Company has determined that the Copal Amba and MA operating segments have similar economic characteristics as set forth in ASC 280. As such, Copal Amba has been combined with MA to form the MA reportable segment and Copal Amba’s revenue is reported in the PS LOB.

In the fourth quarter of 2014, pursuant to the acquisition of ICRA, Moody’s realigned certain components of its reportable segments to better align with the current management structure of the Company. The effect of this realignment was to combine non-ratings ICRA operations with certain immaterial research and fixed income pricing operations in the Asia-Pacific region that were previously reported in the RD&A LOB of MA. All of these operations are managed by MIS and their revenue is now reported in the new MIS Other LOB. All operating expenses from these operations are reported in the MIS reportable segment. The impact of this realignment did not have a significant impact on previously reported results for the reportable segments and all prior year comparative periods have been restated to reflect this realignment.

The MIS segment now consists of five lines of business. The corporate finance, structured finance, financial institutions and public, project and infrastructure finance 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 fixed income 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 lines of business – RD&A, ERS and PS.

In December 2013, a subsidiary of the Company acquired Amba, a provider of investment research and quantitative analytics for global financial institutions. Amba is part of the MA reportable segment and its revenue in included in the PS LOB. In June 2014, a subsidiary of the Company acquired ICRA Limited, a leading provider of credit ratings and research in India. ICRA is part of the MIS reportable segment and its revenue is included in the respective MIS LOBs. In July 2014, a subsidiary of the Company acquired WebEquity, a leading provider of cloud-based loan origination solutions for financial institutions. WebEquity is part of the MA reportable segment and its revenue is included in the ERS LOB. In October 2014, the Company acquired Lewtan, a leading provider of analytical tools and data for the global structured finance market. Lewtan is part of the MA reportable segment and its revenue is included in the RD&A LOB.

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 which exclusively benefit only one segment, are fully charged to that segment. Overhead costs and corporate expenses of the Company which benefit both segments are allocated to each segment based on a revenue-split methodology. 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.

Year Ended December 31,
20142013
MISMAEliminationsConsolidatedMISMAEliminationsConsolidated
Revenue$2,353.4$1,081.8$(100.9)$3,334.3$2,150.2$913.3$(91.0)$2,972.5
Operating, SG&A1,076.2824.3(100.9)1,799.61,034.0701.5(91.0)1,644.5
Adjusted Operating Income1,277.2257.5-1,534.71,116.2211.8-1,328.0
Depreciation and amortization49.446.2-95.646.746.7-93.4
Operating income$1,227.8$211.3$-$1,439.1$1,069.5$165.1$-$1,234.6
Year Ended December 31,
2012
MISMAEliminationsConsolidated
Revenue$1,968.8$844.9$(83.4)$2,730.3
Operating, SG&A976.3654.3(83.4)1,547.2
Adjusted Operating Income992.5190.6-1,183.1
Depreciation and amortization44.449.1-93.5
Goodwill impairment charge-12.2-12.2
Operating income$948.1$129.3$-$1,077.4

MIS AND MA REVENUE BY LINE OF BUSINESS

The tables below present revenue by LOB:

Year Ended December 31,
201420132012
MIS:
Corporate finance (CFG)$1,109.3$996.8$857.6
Structured finance (SFG)426.5382.5381.0
Financial institutions (FIG)354.7338.8325.5
Public, project and infrastructure finance (PPIF)357.3341.3322.7
Total ratings revenue2,247.82,059.41,886.8
MIS Other18.012.210.5
Total external revenue2,265.82,071.61,897.3
Intersegment royalty87.678.671.5
Total2,353.42,150.21,968.8
MA:
Research, data and analytics (RD&A)571.8519.8482.7
Enterprise risk solutions (ERS)328.5262.5242.6
Professional services (PS)168.2118.6107.7
Total external revenue1,068.5900.9833.0
Intersegment revenue13.312.411.9
Total1,081.8913.3844.9
Eliminations(100.9)(91.0)(83.4)
Total MCO$3,334.3$2,972.5$2,730.3

CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA

Year Ended December 31,
201420132012
Revenue:
U.S.$1,814.5$1,626.5$1,472.4
International:
EMEA952.8862.8800.2
Asia-Pacific338.3286.1266.5
Americas228.7197.1191.2
Total International1,519.81,346.01,257.9
Total$3,334.3$2,972.5$2,730.3
Long-lived assets at December 31:
United States$657.6$552.3$498.4
International1,011.3613.2672.3
Total$1,668.9$1,165.5$1,170.7
VALUATION AND QUALIFYING ACCOUNTS
VALUATION AND QUALIFYING ACCOUNTS

NOTE 20 VALUATION AND QUALIFYING ACCOUNTS

Accounts receivable allowances primarily represent adjustments to customer billings that are estimated when the related revenue is recognized and also represents an estimate for uncollectible accounts. The valuation allowance on deferred tax assets relates to foreign net operating losses for which realization is uncertain. Below is a summary of activity for both allowances:

Year Ended December 31,Balance at Beginning of the YearAdditionsWrite-offs and AdjustmentsBalance at End of the Year
2014
Accounts receivable allowance$(28.9)$(54.9)$54.4$(29.4)
Deferred tax assets - valuation allowance$(8.4)$(0.1)$1.6$(6.9)
2013
Accounts receivable allowance$(29.1)$(44.5)$44.7$(28.9)
Deferred tax assets - valuation allowance$(15.2)$(0.1)$6.9$(8.4)
2012
Accounts receivable allowance$(28.0)$(44.3)$43.2$(29.1)
Deferred tax assets - valuation allowance$(13.9)$(3.1)$1.8$(15.2)
OTHER NON-OPERATING INCOME (EXPENSE), NET
OTHER NON-OPERATING INCOME (EXPENSE), NET

NOTE 21 OTHER NON-OPERATING INCOME (EXPENSE), NET

The following table summarizes the components of other non-operating income (expense), net as presented in the consolidated statements of operations:

Year Ended December 31,
201420132012
FX gain(loss) (a)$20.3$-$(5.9)
Legacy Tax (b)6.419.212.8
Joint venture income9.68.84.8
Other(0.4)(1.5)(1.3)
Total$35.9$26.5$10.4
(a) The FX gain in 2014 reflects the strengthening of the U.S. dollar to the euro and GBP for certain U.S. dollar denominated assets held by the Company's international subsidiaries.(b) The 2014 amount relate to the expiration of a statute of limitations for a Legacy Tax Matter. The 2013 amount represents a reversal relating to favorable resolution of a Legacy Tax Matter for the 2007-2009 tax years. The 2012 amount represents a reversal of a liability relating to the favorable resolution of a Legacy Tax Matter for the 2005 and 2006 tax years.
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS

NOTE 22 RELATED PARTY TRANSACTIONS

Moody’s Corporation made grants of $4 million, $8 million and $10 million to The Moody’s Foundation during the years ended December 31, 2014, 2013 and 2012, respectively. The Foundation carries out philanthropic activities primarily in the areas of education and health and human services. Certain members of Moody’s senior management are on the board of the Foundation.

QUARTERLY FINANCIAL DATA (UNAUDITED)
QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE 23 QUARTERLY FINANCIAL DATA (UNAUDITED)

Three Months Ended
(amounts in millions, except EPS)March 31June 30September 30December 31
2014
Revenue$767.2$873.5$816.1$877.5
Operating Income$333.0$411.7$349.7$344.7
Net income attributable to Moody's$218.0$319.2$215.2$236.3
EPS:
Basic$1.02$1.51$1.02$1.14
Diluted$1.00$1.48$1.00$1.12
2013
Revenue$731.8$756.0$705.5$779.2
Operating income$280.4$350.8$291.5$311.9
Net income attributable to Moody's$188.4$225.5$183.9$206.7
EPS:
Basic$0.84$1.01$0.84$0.96
Diluted$0.83$1.00$0.83$0.94

Basic and diluted EPS are computed for each of the periods presented. The number of weighted average shares outstanding changes as common shares are issued pursuant to employee stock-based compensation plans and for other purposes or as shares are repurchased. Therefore, the sum of basic and diluted EPS for each of the four quarters may not equal the full year basic and diluted EPS.

Additionally, the quarterly financial data includes the ICRA Gain in the three months ended June 30, 2014. There were benefits of $6.4 million and $21.3 million to net income related to the resolution of Legacy Tax Matters for the three months ended September 30, 2014 and December 31, 2013, respectively. There was a $0.14 share charge in the first quarter of 2013 related to the settlement of litigation matters more fully discussed in Note 18.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
Basis of Consolidation 

Basis of Consolidation

The consolidated financial statements include those of Moody’s Corporation and its majority- and wholly-owned subsidiaries. The effects of all intercompany transactions have been eliminated. Investments in companies for which the Company has significant influence over operating and financial policies but not a controlling interest are accounted for on an equity basis whereby the Company records its proportional share of the investment’s net income or loss as part of other non-operating income (expense), net and any dividends received reduce the carrying amount of the investment.  The Company applies the guidelines set forth in Topic 810 of the ASC in assessing its interests in variable interest entities to decide whether to consolidate that entity. The Company has reviewed the potential variable interest entities and determined that there are no consolidation requirements under Topic 810 of the ASC. The Company consolidates its ICRA subsidiaries on a three month lag.

Cash and Cash Equivalents 

Cash and Cash Equivalents

Cash equivalents principally consist of investments in money market mutual funds and money market deposit accounts as well as high-grade commercial paper and certificates of deposit with maturities of three months or less when purchased.

Short-term Investments

Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next twelve months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned.

Property and Equipment 

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives. Expenditures for maintenance and repairs that do not extend the economic useful life of the related assets are charged to expense as incurred.

Research and Development Costs 

Research and Development Costs

All research and development costs are expensed as incurred. These costs primarily reflect the development of credit processing software and quantitative credit risk assessment products sold by the MA segment.

Research and development costs were $37.9 million, $22.8 million, and $16.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, and are included in operating expenses within the Company’s consolidated statements of operations. These costs generally consist of professional services provided by third parties and compensation costs of employees.

Costs for internally developed computer software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. These costs primarily relate to the development or enhancement of products in the ERS business and generally consist of professional services provided by third parties and compensation costs of employees that develop the software. Judgment is required in determining when technological feasibility of a product is established and the Company believes that technological feasibility for its software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released to customers. Accordingly, costs for internally developed computer software that will be sold, leased or otherwise marketed that were eligible for capitalization under Topic 985 of the ASC as well as the related amortization expense related to such costs were immaterial for the years ended December 31, 2014, 2013 and 2012.

Computer Software Developed or Obtained for Internal Use 

Computer Software Developed or Obtained for Internal Use

The Company capitalizes costs related to software developed or obtained for internal use. These assets, included in property and equipment in the consolidated balance sheets, relate to the Company’s accounting, product delivery and other systems. Such costs generally consist of direct costs for third-party license fees, professional services provided by third parties and employee compensation, in each case incurred either during the application development stage or in connection with upgrades and enhancements that increase functionality. Such costs are depreciated over their estimated useful lives on a straight-line basis. Costs incurred during the preliminary project stage of development as well as maintenance costs are expensed as incurred.

Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets 

Long-Lived Assets, Including Goodwill and Other Acquired Intangible Assets

Moody’s evaluates its goodwill for impairment at the reporting unit level, defined as an operating segment or one level below an operating segment, annually as of July 31 or more frequently if impairment indicators arise in accordance with ASC Topic 350.

The Company evaluates the recoverability of goodwill using a three-step impairment test approach at the reporting unit level. In the first step, the Company assesses various qualitative factors to determine whether the fair value of a reporting unit may be less than its carrying amount. If a determination is made that, based on the qualitative factors, an impairment does not exist, the Company is not required to perform further testing. If the aforementioned qualitative assessment results in the Company concluding that it is more likely than not that the fair value of a reporting unit may be less than its carrying amount, the fair value of the reporting unit will be determined and compared to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and the Company is not required to perform further testing. If the fair value of the reporting unit is less than the carrying value, the Company must perform a third step of the impairment test to determine the implied fair value of the reporting unit’s goodwill. The implied fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than its carrying value, the difference is recognized as an impairment charge. For the reporting units where the Company is consistently able to conclude that an impairment does not exist using only a qualitative approach, the Company’s accounting policy is to perform the second step of the aforementioned goodwill impairment assessment at least once every three years. Goodwill is assigned to a reporting unit at the date when an acquisition is integrated into one of the established reporting units, and is based on which reporting unit is expected to benefit from the synergies of the acquisition.

For purposes of assessing the recoverability of goodwill, the Company has six reporting units at December 31, 2014: two within the Company’s ratings business (one for the newly acquired ICRA business and one that encompasses all of Moody’s other ratings operations) and four reporting units within MA: RD&A, ERS, Financial Services Training and Certifications and Copal Amba. The RD&A reporting unit encompasses the distribution of investor-oriented research and data developed by MIS as part of its ratings process, in-depth research on major debt issuers, industry studies, economic research and commentary on topical events and credit analytic tools. The ERS reporting unit consists of credit risk management and compliance software that is sold on a license or subscription basis as well as related advisory services for implementation and maintenance. The FSTC reporting unit consists of the portion of the MA business that offers both credit training as well as other professional development training and certification services. The Copal Amba reporting unit consists of outsourced research and analytical services.

Amortizable intangible assets are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Rent Expense 

Rent Expense

The Company records rent expense on a straight-line basis over the life of the lease. In cases where there is a free rent period or future fixed rent escalations the Company will record a deferred rent liability. Additionally, the receipt of any lease incentives will be recorded as a deferred rent liability which will be amortized over the lease term as a reduction of rent expense.

Stock-Based Compensation 

Stock-Based Compensation

The Company records compensation expense for all share-based payment award transactions granted to employees based on the fair value of the equity instrument at the time of grant. This includes shares issued under stock option and restricted stock plans. The Company has also established a pool of additional paid-in capital related to the tax effects of employee share-based compensation, which is available to absorb any recognized tax shortfalls.

Derivative Instruments and Hedging Activities 

Derivative Instruments and Hedging Activities

Based on the Company’s risk management policy, from time to time the Company may use derivative financial instruments to reduce exposure to changes in foreign exchange rates and interest rates. The Company does not enter into derivative financial instruments for speculative purposes. All derivative financial instruments are recorded on the balance sheet at their respective fair values. The changes in the value of derivatives that qualify as fair value hedges are recorded with a corresponding adjustment to the carrying value of the item being hedged. Changes in the derivative’s fair value that qualify as cash flow hedges are recorded to other comprehensive income or loss, to the extent the hedge is effective, and such amounts are reclassified from accumulated other comprehensive income or loss to earnings in the same period or periods during which the hedged transaction affects income. Changes in the derivative’s fair value that qualify as net investment hedges are recorded to other comprehensive income or loss, to the extent the hedge is effective. Any changes in the fair value of derivatives that the Company does not designate as hedging instruments under Topic 815 of the ASC are recorded in the consolidated statements of operations in the period in which they occur.

Revenue Recognition 

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or the services have been provided and accepted by the customer when applicable, fees are determinable and the collection of resulting receivables is considered probable.

Pursuant to ASC Topic 605, when a sales arrangement contains multiple deliverables, the Company allocates revenue to each deliverable based on its relative selling price which is determined based on its vendor specific objective evidence if available, third party evidence if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available.

 The Company’s products and services will generally qualify as separate units of accounting under ASC Topic 605. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value to the customers and if the arrangement includes a customer refund or return right relative to the delivered item and the delivery and performance of the undelivered item is considered probable and substantially in the Company’s control. In instances where the aforementioned criteria are not met, the deliverable is combined with the undelivered items and revenue recognition is determined as one single unit.

The Company determines whether its selling price in a multi-element transaction meets the VSOE criteria by using the price charged for a deliverable when sold separately. In instances where the Company is not able to establish VSOE for all deliverables in a multiple element arrangement, which may be due to the Company infrequently selling each element separately, not selling products within a reasonably narrow price range, or only having a limited sales history, the Company attempts to establish TPE for deliverables. The Company determines whether TPE exists by evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. However, due to the difficulty in obtaining third party pricing, possible differences in its market strategy from that of its peers and the potential that products and services offered by the Company may contain a significant level of differentiation and/or customization such that the comparable pricing of products with similar functionality cannot be obtained, the Company generally is unable to reliably determine TPE. Based on the selling price hierarchy established by ASC Topic 605, when the Company is unable to establish selling price using VSOE or TPE, the Company will establish an ESP. ESP is the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company establishes its best estimate of ESP considering internal factors relevant to is pricing practices such as costs and margin objectives, standalone sales prices of similar products, percentage of the fee charged for a primary product or service relative to a related product or service, and customer segment and geography. Additional consideration is also given to market conditions such as competitor pricing strategies and market trend. The Company reviews its determination of VSOE, TPE and ESP on an annual basis or more frequently as needed.

In the MIS segment, revenue attributed to initial ratings of issued securities is recognized when the rating is issued. Revenue attributed to monitoring of issuers or issued securities is recognized ratably over the period in which the monitoring is performed, generally one year. In the case of commercial mortgage-backed securities, structured credit, international residential mortgage-backed and asset-backed securities, issuers can elect to pay the monitoring fees upfront. These fees are deferred and recognized over the future monitoring periods based on the expected lives of the rated securities, which was approximately 28 years on a weighted average basis at December 31, 2014. At December 31, 2014, 2013 and 2012, deferred revenue related to these securities was approximately $107 million, $97 million, and $82 million.

Multiple element revenue arrangements in the MIS segment are generally comprised of an initial rating and the related monitoring service. In instances where monitoring fees are not charged for the first year monitoring effort, fees are allocated to the initial rating and monitoring services based on the relative selling price of each service to the total arrangement fees. The Company generally uses ESP in determining the selling price for its initial ratings as the Company rarely sells initial ratings separately without providing related monitoring services and thus is unable to establish VSOE or TPE for initial ratings.

MIS estimates revenue for ratings of commercial paper for which, in addition to a fixed annual monitoring fee, issuers are billed quarterly based on amounts outstanding. Revenue is accrued each quarter based on estimated amounts outstanding and is billed when actual data is available. The estimate is determined based on the issuers’ most recent reported quarterly data. At December 31, 2014, 2013 and 2012, accounts receivable included approximately $22 million, $21 million, and $22 million, respectively, related to accrued commercial paper revenue. Historically, MIS has not had material differences between the estimated revenue and the actual billings. Furthermore, for certain annual monitoring services, fees are not invoiced until the end of the annual monitoring period and revenue is accrued ratably over the monitoring period.

In the MA segment, products and services offered by the Company include software licenses and related maintenance, subscriptions, and professional services. Revenue from subscription based products, such as research and data subscriptions and certain software-based credit risk management subscription products, is recognized ratably over the related subscription period, which is principally one year. Revenue from sale of perpetual licenses of credit processing software is generally recognized at the time the product master or first copy is delivered or transferred to and accepted by the customer. If uncertainty exists regarding customer acceptance of the product or service, revenue is not recognized until acceptance occurs. Software maintenance revenue is recognized ratably over the annual maintenance period. Revenue from professional services rendered is generally recognized as the services are performed. A large portion of annual research and data subscriptions and annual software maintenance are invoiced in the months of November, December and January.

Products and services offered within the MA segment are sold either stand-alone or together in various combinations. In instances where a multiple element arrangement includes software and non-software deliverables, revenue is allocated to the non-software deliverables and to the software deliverables, as a group, using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Revenue is recognized for each element based upon the conditions for revenue recognition noted above.

 If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is allocated to each software deliverable using VSOE. In the instances where the Company is not able to determine VSOE for all of the deliverables of an arrangement, the Company allocates the revenue to the undelivered elements equal to its VSOE and the residual revenue to the delivered elements. If the Company is unable to determine VSOE for an undelivered element, the Company defers all revenue allocated to the software deliverables until the Company has delivered all of the elements or when VSOE has been determined for the undelivered elements. In cases where software implementation services are considered essential and VSOE of fair value exists for post-contract customer support (“PCS”), once the delivery criteria has been met on the standard software, license and service revenue is recognized on a percentage-of-completion basis as implementation services are performed, while PCS is recognized over the coverage period.  If VSOE of fair value does not exist for PCS, once the delivery criteria has been met on the standard software, service revenue is recognized on a zero profit margin basis until essential services are complete, at which point total remaining arrangement revenue is then spread ratably over the remaining PCS coverage period.

Accounts Receivable Allowances 

Accounts Receivable Allowances

Moody’s records an allowance for estimated future adjustments to customer billings as a reduction of revenue, based on historical experience and current conditions. Such amounts are reflected as additions to the accounts receivable allowance. Additionally, estimates of uncollectible accounts are recorded as bad debt expense and are reflected as additions to the accounts receivable allowance. Actual billing adjustments and uncollectible account write-offs are recorded against the allowance. Moody’s evaluates its accounts receivable allowance by reviewing and assessing historical collection and adjustment experience and the current status of customer accounts. Moody’s also considers the economic environment of the customers, both from an industry and geographic perspective, in evaluating the need for allowances. Based on its analysis, Moody’s adjusts its allowance as considered appropriate in the circumstances.

Contingencies 

Contingencies

Moody’s is involved in legal and tax proceedings, governmental investigations and inquiries, claims and litigation that are incidental to the Company’s business, including claims based on ratings assigned by MIS. Moody’s is also subject to ongoing tax audits in the normal course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. Moody’s discloses material pending legal proceedings pursuant to SEC rules and other pending matters as it may determine to be appropriate.

For claims, litigation and proceedings and governmental investigations and inquires not related to income taxes, where it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated, the Company records liabilities in the consolidated financial statements 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 other instances, because of uncertainties related to the probable outcome and/or the amount or range of loss, management does not record a liability but discloses the contingency if significant. As additional information becomes available, the Company adjusts its assessments and estimates of such matters accordingly. In view of the inherent difficulty of predicting the outcome of litigation, regulatory, governmental investigations and inquiries, enforcement and similar matters , particularly where the claimants seek large or indeterminate damages or where the parties assert novel legal theories or the matters involve a large number of parties, the Company cannot predict what the eventual outcome of the pending matters will be or the timing of any resolution of such matters. The Company also cannot 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. However, in light of the large or indeterminate damages sought in some of them, the absence of similar court rulings on the theories of law asserted and uncertainties regarding apportionment of any potential damages, an estimate of the range of possible losses cannot be made at this time.

The Company’s wholly-owned insurance subsidiary insures the Company against certain risks including but not limited to deductibles for worker’s compensation, employment practices litigation and employee medical claims and terrorism, for which the claims are not material to the Company. In addition, for claim years 2008 and 2009, the insurance subsidiary insured the Company for defense costs related to professional liability claims. For matters insured by the Company’s insurance subsidiary, Moody’s records liabilities based on the estimated total claims expected to be paid and total projected costs to defend a claim through its anticipated conclusion. The Company determines liabilities based on an assessment of management’s best estimate of claims to be paid and legal defense costs as well as actuarially determined estimates. The Cheyne SIV and Rhinebridge SIV matters more fully discussed in Note 18 are both cases from the 2008/2009 claims period, and accordingly defense costs for these matters are covered by the Company’s insurance subsidiary. Defense costs for matters not self-insured by the Company’s wholly-owned insurance subsidiary are expensed as services are provided.

For income tax matters, the Company employs the prescribed methodology of  Topic 740 of the ASC which requires a company to first determine whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority

Operating Expenses 

Operating Expenses

Operating expenses include costs associated with the development and production of the Company’s products and services and their delivery to customers. These expenses principally include employee compensation and benefits and travel costs that are incurred in connection with these activities. Operating expenses are charged to income as incurred, except for certain costs related to software implementation services which are deferred until related revenue is recognized.  Additionally, certain costs incurred to develop internal use software are capitalized and depreciated over their estimated useful life.

Selling, General and Administrative Expenses 

Selling, General and Administrative Expenses

SG&A expenses include such items as compensation and benefits for corporate officers and staff and compensation and other expenses related to sales of products. They also include items such as office rent, business insurance, professional fees and gains and losses from sales and disposals of assets. SG&A expenses are charged to income as incurred, except for certain expenses incurred to develop internal use software are capitalized and depreciated over their estimated useful life.

Redeemable Noncontrolling Interest 

Redeemable Noncontrolling Interest

The Company records its redeemable noncontrolling interest at fair value on the date of the related business combination transaction. The redeemable noncontrolling interest represents noncontrolling shareholders’ interest in entities which are controlled but not wholly-owned by Moody’s and for which Moody’s obligation to redeem the minority shareholders’ interest is governed by a put/call relationship. Subsequent to the initial measurement, the redeemable noncontrolling interest is recorded at the greater of its redemption value or its carrying value at the end of each reporting period. If the redeemable noncontrolling interest is carried at its redemption value, the difference between the redemption value and the carrying value would be adjusted through capital surplus at the end of each reporting period. The Company also performs a quarterly assessment to determine if the aforementioned redemption value exceeds the fair value of the redeemable noncontrolling interest. If the redemption value of the redeemable noncontrolling interest were to exceed its fair value, the excess would reduce the net income attributable to Moody’s shareholders. The Company settled its redeemable noncontrolling interest in the fourth quarter of 2014 by exercising its call option to acquire the remaining share of Copal Amba that it did not previously own.

Foreign Currency Translation 

Foreign Currency Translation

For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated into U.S. dollars using end of year exchange rates, and revenue and expenses are translated using average exchange rates for the year. For these foreign operations, currency translation adjustments are accumulated in a separate component of shareholders’ equity.

Income Taxes 

Income Taxes

The Company accounts for income taxes under the asset and liability method in accordance with ASC Topic 740. Therefore, income tax expense is based on reported income before income taxes and deferred income taxes reflect the effect of temporary differences between the amounts of assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes.

The Company classifies interest related to unrecognized tax benefits as a component of interest expense in its consolidated statements of operations. Penalties are recognized in other non-operating expenses. For UTPs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

For certain of its non-U.S. subsidiaries, the Company has deemed the undistributed earnings relating to these subsidiaries to be indefinitely reinvested within its foreign operations. Accordingly, the Company has not provided deferred income taxes on these indefinitely reinvested earnings. It is not practicable to determine the amount of deferred taxes that might be required to be provided if such earnings were distributed in the future due to complexities in the tax laws and in the hypothetical calculations that would have to be made.

Fair Value of Financial Instruments 

Fair Value of Financial Instruments

The Company’s financial instruments include cash, cash equivalents, trade receivables and payables, all of which are short-term in nature and, accordingly, approximate fair value. Additionally, the Company invests in certain short-term investments consisting primarily of certificates of deposit that are carried at cost, which approximates fair value due to their short-term maturities.

The Company also has certain investments in closed-ended and open-ended mutual funds in India which are designated as ‘available for sale’ under Topic 320 of the ASC. Accordingly, unrealized gains and losses on these investments are recorded to other comprehensive income and are reclassified out of accumulated other comprehensive income to the statement of operations when the investment matures or is sold using a specific identification method.

Also, the Company uses derivative instruments, as further described in Note 5, to manage certain financial exposures that occur in the normal course of business. These derivative instruments are carried at fair value on the Company’s consolidated balance sheets.

The Company also is subject to contingent consideration obligations related to certain of its acquisitions as more fully discussed in Note 9. These obligations are carried at their estimated fair value within the Company’s consolidated balance sheets.

Fair value is defined by the ASC as the price that would be received from selling an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The determination of this fair value is based on the principal or most advantageous market in which the Company could commence transactions and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Also, determination of fair value assumes that market participants will consider the highest and best use of the asset.

The ASC establishes a fair value hierarchy whereby the inputs contained in valuation techniques used to measure fair value are categorized into three broad levels as follows:

Level 1 : quoted market prices in active markets that the reporting entity has the ability to access at the date of the fair value measurement;

Level 2 : inputs other than quoted market prices described in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;

Level 3 : unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities.

Concentration of Credit Risk 

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk principally consist of cash and cash equivalents, short-term investments, trade receivables and derivatives.

The Company manages its credit risk exposure by allocating its cash equivalents among various money market mutual funds, money market deposit accounts, certificates of deposits and high- grade commercial paper. Short-term investments primarily consist of certificates of deposit as of December 31, 2014 and 2013. The Company manages its credit risk exposure on cash equivalents and short-term investments by limiting the amount it can invest with any single entity. No customer accounted for 10% or more of accounts receivable at December 31, 2014 or 2013.

Earnings per Share of Common Stock 

Earnings per Share of Common Stock

Basic shares outstanding is calculated based on the weighted average number of shares of common stock outstanding during the reporting period. Diluted shares outstanding is calculated giving effect to all potentially dilutive common shares, assuming that such shares were outstanding during the reporting period.

Pension and Other Retirement Benefits 

Pension and Other Retirement Benefits

Moody’s maintains various noncontributory DBPPs as well as other contributory and noncontributory retirement plans. The expense and assets/liabilities that the Company reports for its pension and other retirement benefits are dependent on many assumptions concerning the outcome of future events and circumstances. These assumptions represent the Company’s best estimates and may vary by plan. The differences between the assumptions for the expected long-term rate of return on plan assets and actual experience is spread over a five-year period to the market related value of plan assets which is used in determining the expected return on assets component of annual pension expense. All other actuarial gains and losses are generally deferred and amortized over the estimated average future working life of active plan participants.

The Company recognizes as an asset or liability in its consolidated balance sheet the funded status of its defined benefit retirement plans, measured on a plan-by-plan basis. Changes in the funded status due to actuarial gains/losses are recorded as part of other comprehensive income during the period the changes occur.

Use of Estimates 

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Estimates are used for, but not limited to, revenue recognition, accounts receivable allowances, income taxes, contingencies, valuation of long-lived and intangible assets, goodwill, pension and other retirement benefits, stock-based compensation, and depreciable lives for property and equipment and computer software.

Recently Issued Accounting Pronouncements 

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”. 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. This ASU is effective for annual and interim reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company is currently evaluating its adoption options and the impact that adoption of this update will have on its consolidated financial statements. Currently, the Company believes this ASU will have an impact on: i) the capitalization of certain contract implementation costs for its ERS business; ii) the accounting for certain ratings monitoring fees received in advance of service being rendered; iii) the accounting for certain license and maintenance revenue in MA; iv) the accounting for certain ERS revenue arrangements where VSOE is not available and v) the accounting for contract acquisition costs.

In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This ASU clarifies the current accounting guidance for entities that issue share-based payment awards that require a specific performance target be achieved for employees to become eligible to vest in the awards, which may occur subsequent to a required service period. The current accounting guidance does not explicitly address how to account for these types of award. The ASU provides explicit guidance and clarifies that these types of performance targets should be treated as performance conditions, and accordingly should not be reflected in the determination of the grant-date fair value of the awards. This ASU is effective for all annual periods and interim reporting periods beginning after December 15, 2015, with early adoption permitted. The Company currently accounts for transactions involving stock-based compensation awards with performance conditions in accordance with the provisions set forth in this ASU. Accordingly, the adoption of this update will not have an impact on the Company’s consolidated financial statements.

Comprehensive Income 

Comprehensive Income

Comprehensive income represents the change in net assets of a business enterprise during a period due to transactions and other events and circumstances from non-owner sources including foreign currency translation impacts, net actuarial losses and net prior service costs related to pension and other retirement plans, gains and losses on derivative instruments and unrealized gains and losses on securities designated as ‘available-for-sale’ under Topic 320 of the ASC.

investment policy 

Short-term Investments

Short-term investments are securities with maturities greater than 90 days at the time of purchase that are available for operations in the next twelve months. The Company’s short-term investments primarily consist of certificates of deposit and their cost approximates fair value due to the short-term nature of the instruments. Interest and dividends on these investments are recorded into income when earned.

RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING (Tables)
Reconciliation of Basic to Diluted Shares Outstanding
201420132012
Basic210.7219.4223.2
Dilutive effect of shares issuable under stock-based compensation plans4.04.13.4
Diluted214.7223.5226.6
Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above0.74.07.5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
Fair Value of Derivative Instruments 
Fair Value of Derivative Instruments
Balance Sheet LocationDecember 31, 2014December 31, 2013
Assets:
Derivatives designated as accounting hedges:
Interest rate swapsOther assets$17.4$10.3
FX forwards on net investment in certain foreign subsidiariesOther current assets18.89.3
Total derivatives designated as accounting hedges36.219.6
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesOther current assets5.60.9
Total$41.8$20.5
Liabilities:
Derivatives designated as accounting hedges:
FX forwards on net investment in certain foreign subsidiariesAccounts payable and accrued liabilities$-$1.0
Total derivatives designated as accounting hedges-1.0
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilitiesAccounts payable and accrued liabilities2.10.7
Total$2.1$1.7
Gains and Losses on Derivatives Designated as Hedging Instruments 
Amount of Gain (Loss) Recognized in consolidated statement of operations
Year Ended December 31,
Derivatives designated as accounting hedgesLocation on Consolidated Statements of Operations201420132012
Interest rate swapsInterest income (expense), net$11.7$4.2$3.6
Derivatives not designated as accounting hedges
Foreign exchange forwardsOther non-operating (expense) income$(2.0)$2.1$0.9
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards 
December 31,December 31,
20142013
Notional amount of Currency Pair:
Contracts to sell euros for USD€50.0€50.0
Contracts to sell Japanese yen for USD¥19,400¥19,700
Summary of Net Gain (Loss) on Foreign Exchange Forwards Not Designated as Hedging Instruments and on Interest Rate Swaps Designated as Fair Value Hedges 
Derivatives in Net Investment Hedging RelationshipsAmount of Gain/(Loss), net of tax, Recognized in AOCI on Derivative (Effective Portion)
Year Ended December 31,
201420132012
FX forwards$19.4$3.7$(2.2)
Total$19.4$3.7$(2.2)
Cumulative Amount of Unrecognized Hedge Losses Recorded in Accumulated Other Comprehensive Income 
Gains (Losses), net of tax
December 31, 2014December 31, 2013
FX forwards on net investment hedges$20.9$1.5
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards 
December 31,December 31,
20142013
Notional amount of Currency Pair:
Contracts to purchase USD with euros$38.5$14.2
Contracts to sell USD for euros$51.1$53.2
Contracts to purchase USD with GBP$0.2$-
Contracts to purchase USD with other foreign currencies$1.2$-
Contracts to purchase euros with other foreign currencies€34.0€13.1
Contracts to purchase euros with GBP€25.0€22.1
Contracts to sell euros for GBP€38.2€-
PROPERTY AND EQUIPMENT, NET (Tables)
Property and Equipment, Net
December 31,
20142013
Office and computer equipment (3 - 10 year estimated useful life)$152.5$129.7
Office furniture and fixtures (3 - 10 year estimated useful life)43.840.6
Internal-use computer software (3 - 10 year estimated useful life)336.8284.9
Leasehold improvements and building (3 - 20 year estimated useful life)220.7199.2
Total property and equipment, at cost753.8654.4
Less: accumulated depreciation and amortization(451.5)(375.7)
Total property and equipment, net$302.3$278.7
ACQUISITIONS (Tables)
Summary of Fair Values of Assets Acquired and Liabilities Assumed 
Current assets$23.7
Property and equipment, net0.4
Intangible assets:
Trade name (7 year weighted average life)$3.3
Client relationships (12 year weighted average life)26.7
Other (3 year weighted average life)1.6
Total intangible assets (11 year weighted average life)31.6
Goodwill29.2
Indemnification asset10.4
Other assets2.0
Liabilities assumed(25.7)
Net assets acquired$71.6
Total Consideration Transferred to Sellers 
Cash paid $67.3
Contingent consideration liability assumed4.3
Total fair value of consideration transferred$71.6
Summary of Fair Values of Assets Acquired and Liabilities Assumed 
Current assets$ 25.4
Property and equipment, net 15.1
Intangible assets:
Trade name (36 year weighted average life)$ 46.8
Client relationships (19 year weighted average life) 33.8
Other (17 year weighted average life)* 18.3
Total intangible assets (26 year weighted average life) 98.9
Goodwill 296.7
Other assets 56.3
Liabilities (62.7)
Fair value of non-controlling interest assumed (218.8)
Net assets acquired$ 210.9
* Primarily consists of acquired technical know-how and ratings methodologies
Total Consideration Transferred to Sellers 
Cash paid$ 86.0
Fair value of equity interest in ICRA prior to obtaining a controlling interest 124.9
Total consideration $ 210.9
The cash paid in the table above was funded by using Moody's non-U.S. cash on hand.
Summary of Fair Values of Assets Acquired and Liabilities Assumed 
Current assets$3.0
Property and equipment, net2.3
Intangible assets:
Client relationships (18 year weighted average life)$42.8
Software (15 year weighted average life)11.5
Trade name (4 year weighted average life)0.5
Total intangible assets (17 year weighted average life)54.8
Goodwill77.6
Liabilities assumed(7.2)
Net assets acquired$130.5
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Tables)
Activity in Goodwill 
Year Ended December 31,2014
MISMAConsolidated
Gross goodwillAccumulated Impairment chargeNet goodwillGross goodwillAccumulated Impairment chargeNet goodwillGross goodwillAccumulated Impairment chargeNet goodwill
Balance at beginning of year$11.4$-$11.4$666.0$(12.2)$653.8$677.4$(12.2)$665.2
Additions/adjustments296.7-296.7101.1-101.1397.8-397.8
Foreign currency translation adjustments(9.4)-(9.4)(32.5)-(32.5)(41.9)-(41.9)
--
Ending balance$298.7$-$298.7$734.6$(12.2)$722.4$1,033.3$(12.2)$1,021.1
Year Ended December 31,2013
MISMAConsolidated
Gross goodwillAccumulated Impairment chargeNet goodwillGross goodwillAccumulated Impairment chargeNet goodwillGross goodwillAccumulated Impairment chargeNet goodwill
Balance at beginning of year$11.5$-$11.5$637.8$(12.2)$625.6$649.3$(12.2)$637.1
Additions/adjustments---34.5-34.534.5-34.5
Foreign currency translation adjustments(0.1)-(0.1)(6.3)-(6.3)(6.4)-(6.4)
Ending balance$11.4$-$11.4$666.0$(12.2)$653.8$677.4$(12.2)$665.2
Acquired Intangible Assets 
December 31,
20142013
Customer relationships$310.4$237.4
Accumulated amortization(98.1)(86.6)
Net customer relationships212.3150.8
Trade secrets30.631.1
Accumulated amortization(20.9)(18.5)
Net trade secrets9.7-12.6
Software79.871.0
Accumulated amortization(43.0)(38.8)
Net software36.8-32.2
Trade names76.531.3
Accumulated amortization(13.3)(11.7)
Net trade names63.2-19.6
Other44.826.1
Accumulated amortization(21.3)(19.7)
Net other23.5-6.4
Total$345.5$221.6
Amortization Expense Relating to Acquired Intangible Assets 
Year Ended December 31,
201420132012
Amortization expense$28.4$28.0$30.1
Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization 
Year Ended December 31,
2015$33.5
201631.7
201728.1
201822.4
201919.5
Thereafter210.3
FAIR VALUE (Tables)
Financial Instruments Carried at Fair Value on Recurring Basis 
Fair Value Measurement as of December 31, 2014
DescriptionBalanceLevel 1Level 2Level 3
Assets:
Derivatives (a)$41.8$-$41.8$-
Money market mutual funds149.7149.7--
Fixed maturity and open ended mutual funds (b)48.048.0--
Total$239.5$197.7$41.8$-
Liabilities:
Derivatives (a)$2.1$-$2.1$-
Contingent consideration arising from acquisitions (c)2.1--2.1
Total$4.2$-$2.1$2.1
Fair Value Measurement as of December 31, 2013
DescriptionBalanceLevel 1Level 2Level 3
Assets:
Derivatives (a)$20.5$-$20.5$-
Money market mutual funds212.3212.3--
Total$232.8$212.3$20.5$-
Liabilities:
Derivatives (a)$1.7$-$1.7$-
Contingent consideration arising from acquisitions (c)17.5--17.5
Total$19.2$-$1.7$17.5
(a) Represents interest rate swaps and FX forwards on certain assets and liabilities as well as on certain non-U.S. dollar net investments in certain foreign subsidiaries more fully discussed in Note 5 to the financial statements
(b) Represents investments in fixed maturity mutual funds and open ended mutual funds held by ICRA. The remaining contractual maturities for the fixed maturity instruments range from two months to 23 months
(c) Represents contingent consideration liabilities pursuant to the agreements for certain acquisitions
Changes in Fair Value of Level Three Liabilities, Contingent Consideration 
Changes in Contingent Consideration for Years Ended December 31,
201420132012
Balance as of January 1$ 17.5 $9.0$9.1
Contingent consideration assumed in acquisition of Amba - 4.3-
Contingent consideration payments (16.5)(2.5)(0.5)
Losses included in earnings 1.3 6.90.1
Foreign currency translation adjustments (0.2)(0.2)0.3
Balance as of December 31$ 2.1 $17.5$9.0
DETAIL OF CERTAIN BALANCE SHEET INFORMATION (Tables)
Additional Details Related to Certain Balance Sheet Captions 
December 31,
20142013
Other current assets:
Prepaid taxes$65.4$40.0
Prepaid expenses59.948.1
Other 47.226.3
Total other current assets$172.5$114.4
December 31,
20142013
Other assets:
Investments in joint ventures$21.6$37.5
Deposits for real-estate leases11.310.3
Indemnification assets related to acquisitions23.527.0
Fixed maturity and open-ended mutual funds48.0-
Other41.537.3
Total other assets$145.9$112.1
December 31,
20142013
Accounts payable and accrued liabilities:
Salaries and benefits$86.5$77.1
Incentive compensation155.2135.9
Profit sharing contribution9.3-
Customer credits, advanced payments and advanced billings17.021.7
Self-insurance reserves21.527.6
Dividends75.065.5
Professional service fees47.032.9
Interest accrued on debt45.036.3
Accounts payable19.416.4
Income taxes (see Note 14)16.147.5
Pension and other retirement employee benefits (see Note 12)5.17.0
Other60.571.0
Total accounts payable and accrued liabilities$557.6$538.9
December 31,
20142013
Other liabilities:
Pension and other retirement employee benefits (see Note 12)$244.8$164.0
Deferred rent-non-current portion104.2106.3
Interest accrued on UTPs20.818.0
Legacy and other tax matters8.615.4
Other52.556.5
Total other liabilities$430.9$360.2
Changes in Redeemable Noncontrolling Interest Related to Acquisition 
Year Ended December 31,
201420132012
Redeemable Noncontrolling Interest
Balance January 1,$80.0$72.3$60.5
Adjustment due to right of offset for UTPs (1)--6.8
Net earnings9.35.83.6
Dividends(4.9)(6.0)(3.6)
Redemption of noncontrolling interest(183.8)--
FX translation--1.6
Adjustment to redemption value (2)99.47.93.4
Balance December 31,$-$80.0$72.3
(1) Related to an adjustment for the right of offset pursuant to the Copal acquisition agreement whereby the amount due to the sellers under the put/call arrangement was reduced by the amount of UTPs that the Company may be required to pay(2) The adjustment to the redemption value in the year ended December 31, 2014 reflects the aforementioned revisions to the revenue and EBITDA multiples pursuant to the amendment of the put/call agreement which occurred contemporaneously with the acquisition of Amba coupled with growth in the Copal Amba reporting unit. These adjustments are recorded with a corresponding reduction to capital surplus.
Components of Accumulated Other Comprehensive Income 
Year Ended December 31, 2014
Gains/(losses) on Net Investment HedgesPension and Other Retirement BenefitsForeign Currency Translation AdjustmentsGains on Available for Sale SecuritiesTotal
Balance December 31, 2013$1.5$(53.2)$(2.9)$-$(54.6)
Other comprehensive income/(loss) before reclassification19.4(56.7)(153.1)1.0(189.4)
Amounts reclassified from AOCI-4.54.4(0.1)8.8
Other comprehensive income/(loss)19.4(52.2)(148.7)0.9(180.6)
Balance December 31, 2014$20.9$(105.4)$(151.6)$0.9$(235.2)
Year Ended December 31, 2013
Gains/(losses) on Cash Flow and Net Investment HedgesPension and Other Retirement BenefitsForeign Currency Translation AdjustmentsGains on Available for Sale SecuritiesTotal
Balance December 31, 2012$(2.9)$(90.1)$10.9$-$(82.1)
Other comprehensive income/(loss) before reclassification3.729.9(15.2)-18.4
Amounts reclassified from AOCI0.77.01.4-9.1
Other comprehensive income/(loss)4.436.9(13.8)-27.5
Balance December 31, 2013$1.5$(53.2)$(2.9)$-$(54.6)
Self Insurance Reserves 
Year Ended December 31,
201420132012
Balance January 1,$27.6$55.8$27.1
Accruals (reversals), net5.8(0.9)38.1
Payments(11.9)(27.3)(9.4)
Balance December 31,$21.5$27.6$55.8
PENSION AND OTHER RETIREMENT BENEFITS (Tables)
Summary of Changes in Benefit Obligations and Fair Value of Plan Assets for Post-Retirement Plans 
Pension PlansOther Retirement Plans
2014201320142013
Change in benefit obligation:
Benefit obligation, beginning of the period$ (347.1)$ (356.3)$ (20.7)$ (21.8)
Service cost (18.4) (19.8) (1.7) (1.7)
Interest cost (16.5) (13.5) (0.9) (0.8)
Plan participants’ contributions - - (0.4) (0.3)
Benefits paid 6.4 5.3 0.6 0.6
Actuarial gain (loss) (8.3) (0.7) (0.1) 1.0
Assumption changes (77.9) 37.9 (3.5) 2.3
Benefit obligation, end of the period (461.8) (347.1) (26.7) (20.7)
Change in plan assets:
Fair value of plan assets, beginning of the period 204.6 167.6 - -
Actual return on plan assets 12.9 23.0 - -
Benefits paid (6.4) (5.3) (0.6) (0.6)
Employer contributions 37.3 19.3 0.2 0.3
Plan participants' contributions - - 0.4 0.3
Fair value of plan assets, end of the period 248.4 204.6 - -
Funded Status of the plans (213.4) (142.5) (26.7) (20.7)
 
Amounts recorded on the consolidated balance sheets:
Pension and retirement benefits liability - current (4.3) (6.2) (0.8) (0.8)
Pension and retirement benefits liability - non current (209.1) (136.3) (25.9) (19.9)
Net amount recognized$ (213.4)$ (142.5)$ (26.7)$ (20.7)
 
Accumulated benefit obligation, end of the period$ (396.3)$ (298.5)
Accumulated Benefit Obligation in Excess of Plan Assets 
     December 31,
     2014  2013
Aggregate projected benefit obligation    $ 461.8   $347.1
Aggregate accumulated benefit obligation    $ 396.3   $298.5
Aggregate fair value of plan assets    $ 248.4   $204.6
Summary of Pre-Tax Net Actuarial Losses and Prior Service Cost Recognized in Accumulated Other Comprehensive Income (Loss) 
     Pension Plans    Other Retirement Plans
     2014  2013   2014   2013
Net actuarial losses   $ (165.5)$ (84.6)   $ (6.0)   $ (2.4)
Net prior service costs      (2.7)  (3.3)     -     -
Total recognized in AOCI- pretax    $ (168.2)$ (87.9)   $ (6.0)   $ (2.4)
Summary of Post-Retirement Plans to Amortize from Accumulated Other Comprehensive Income (Loss) as Net Periodic Expense 
     Pension Plans    Other Retirement Plans
Net actuarial losses    $ 13.6   $ 0.3
Net prior service costs      0.7     -
Total to be recognized as components of net periodic expense    $ 14.3   $ 0.3
Net Periodic Benefit Expenses Recognized for Post-Retirement Plans 
  Pension Plans   Other Retirement Plans
  2014  20132012  2014   2013   2012
Components of net periodic expense        
Service cost $ 18.4  $ 19.8  $ 18.9  $ 1.7   $ 1.7   $ 1.5
Interest cost   16.5    13.5    13.1    0.9     0.8     0.7
Expected return on plan assets   (14.3)  (12.9)  (12.5)    -     -     -
Amortization of net actuarial loss from earlier periods   6.6     10.8     9.1    -     0.3     0.3
Amortization of net prior service costs from earlier periods   0.7    0.6    0.7    -     -     -
Net periodic expense $ 27.9  $ 31.8  $ 29.3  $ 2.6   $ 2.8   $ 2.5
Summary of Pre-Tax Amounts Recorded in Other Comprehensive Income 
     Pension Plans   Other Retirement Plans
   20142013  2014   2013
Amortization of net actuarial losses    $ 6.6 $ 10.8  $ -   $ 0.3
Amortization of prior service costs      0.7  0.6    -     -
Net actuarial gain (loss) arising during the period      (87.5)  47.3    (3.7)     3.3
Total recognized in OCI – pre-tax    $ (80.2) $ 58.7  $ (3.7)   $ 3.6
Weighted-Average Assumptions Used to Determine Benefit Obligations 
  Pension Plans Other Retirement Plans
  2014  20132014  2013
Discount rate   3.78%4.71%3.65%4.45%
Rate of compensation increase   3.76%4.00%-   -
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Expense 
     Pension Plans   Other Retirement Plans
   2014  2013  2012  2014  2013  2012
Discount rate    4.71%  3.82%4.25%4.45%  3.55%  4.05%
Expected return on plan assets    6.80%  7.30%7.85%-  -  -
Rate of compensation increase    4.00%  4.00%4.00%-  -  -
Assumed Healthcare Cost Trend Rates 
     2014  2013  2012
     Pre-age 65   Post-age 65   Pre-age 65   Post-age 65   Pre-age 65   Post-age 65
Healthcare cost trend rate assumed for the following year   7.95%  7.05%  8.2%  7.3%  6.9%  7.9%
Ultimate rate to which the cost trend rate is assumed to declines (ultimate trend rate)   5.0%  5.0%  5.0%
Year that the rate reaches the ultimate trend rate    20282026  202820262020
Summary of Pension Plan Assets by Category Based on Hierarchy of Fair Value Measurements 
Fair Value Measurement as of December 31, 2014
Asset CategoryBalanceLevel 1Level 2Level 3% of total assets
Cash and cash equivalent$13.2$-$13.2$-5%
Emerging markets equity fund14.0$14.0$--6%
Common/collective trust funds - equity securities
Global large-cap92.2-92.2-37%
U.S. small and mid-cap16.5-16.5-7%
Total equity investments122.714.0108.7-50%
Emerging markets bond fund 9.19.1--4%
Common/collective trust funds - fixed income securities
Intermediate-term investment grade U.S. government/ corporate bonds60.8-60.8-24%
U.S. Treasury Inflation-Protected Securities (TIPs)10.7-10.7-4%
Convertible securities 7.5-7.5-3%
Private investment fund - high yield securities6.7-6.7-3%
Total fixed-income investments94.89.185.7-38%
Other investment- Common/collective trust fund — private real estate fund17.8-17.8-7%
Total Assets$248.5$23.1$207.6$-100%
Fair Value Measurement as of December 31, 2013
Asset CategoryBalanceLevel 1Level 2Level 3% of total assets
Cash and cash equivalent$0.4$-$0.4$--
Emerging markets equity fund14.6$14.6$--7%
Common/collective trust funds - equity securities
U.S. large-cap44.5-44.5-22%
U.S. small and mid-cap15.3-15.3-7%
International58.2-58.2-29%
Total equity investments132.614.6118.0 - 65%
Common/collective trust funds - fixed income securities
Long-term government/treasury bonds13.7-13.7-7%
Long-term investment grade corporate bonds15.4-15.4-7%
U.S. Treasury Inflation-Protected Securities (TIPs)8.7-8.7-4%
Emerging markets bonds5.8-5.8-3%
High yield bonds6.1-6.1-3%
Convertible securities6.3-6.3-3%
Total fixed-income investments56.0 - 56.0 - 27%
Other investment - Common/collective trust fund - private real estate fund15.6--15.68%
Total Assets$204.6$14.6$174.4$15.6100%
Summary of Changes in Fair Value of Plan's Level Three Assets 
Real estate investment fund:
Balance as of December 31, 2013$ 15.6
Return on plan assets related to assets held as of December 31, 2014  1.6
Transfer (out), net  (17.8)
Purchases (sales), net   0.6
Balance as of December 31, 2014$ -
Estimated Future Benefits Payments for Retirement Plans 
Year Ending December 31,    Pension Plans   Other  Retirement Plans
2015   $ 8.3   $ 0.8
2016     10.3     1.0
2017     10.9     1.1
2018     39.6     1.3
2019     14.0     1.5
2020 – 2024   $ 110.5   $ 9.6
STOCK - BASED COMPENSATION PLANS (Tables)
Stock-Based Compensation Cost and Associated Tax Benefit 
Year Ended December 31,
201420132012
Stock-based compensation expense$80.4$67.1$64.5
Tax benefit$27.5$24.7$23.3
Weighted Average Assumptions used in Determining Fair Value for Options Granted 
Year Ended December 31,
201420132012
Expected dividend yield1.41%1.72%1.66%
Expected stock volatility41%43%44%
Risk-free interest rate2.30%1.53%1.55%
Expected holding period7.2 years7.2 years7.4 years
Grant date fair value$31.53$17.58$15.19
Summary of Option Activity 
OptionsSharesWeighted Average Exercise Price Per ShareWeighted Average Remaining Contractual TermAggregate Intrinsic Value
Outstanding, December 31, 20138.9$45.00
Granted0.379.57
Exercised(3.2)46.40
Outstanding, December 31, 20146.0$46.004.2 yrs$299.5
Vested and expected to vest, December 31, 20145.9$45.844.1 yrs$295.6
Exercisable, December 31, 20145.0$44.793.4 yrs$252.6
Summary of Information Relating to Stock Option Exercises 
Year Ended December 31,
201420132012
Proceeds from stock option exercises$145.5$163.3$127.4
Aggregate intrinsic value$122.3$112.4$61.3
Tax benefit realized upon exercise$43.2$41.1$23.4
Summary of Nonvested Restricted Stock 
Nonvested Restricted StockSharesWeighted Average Grant Date Fair Value Per Share
Balance, December 31, 20133.1$39.30
Granted0.979.69
Vested(1.2)36.19
Forfeited(0.1)50.45
Balance, December 31, 20142.7$53.98
Information Related to Vesting of Restricted Stock Awards 
Year Ended December 31,
201420132012
Fair value of shares upon delivery$92.4$54.6$37.8
Tax benefit realized upon delivery$31.2$19.3$13.4
Summary of Performance Based Restricted Stock 
Performance-based restricted stockSharesWeighted Average Grant Date Fair Value Per Share
Balance, December 31, 20131.2$31.17
Granted0.2$76.35
Vested(0.5)$28.76
Balance, December 31, 20140.9$46.09
INCOME TAXES (Tables)
Provision for Income Taxes 
Year Ended December 31,
201420132012
Current:
Federal$252.8$226.2$168.1
State and Local70.257.633.7
Non-U.S.102.196.886.4
Total current425.1380.6288.2
Deferred:
Federal0.9(13.1)35.7
State and Local4.9(5.6)4.5
Non-U.S.24.1(8.5)(4.1)
Total deferred29.9(27.2)36.1
Total provision for income taxes$455.0$353.4$324.3
Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income Before Provision for Income Taxes 
Year Ended December 31,
201420132012
U.S. statutory tax rate35.0%35.0%35.0%
State and local taxes, net of federal tax benefit3.62.92.4
Benefit of foreign operations(7.4)(6.4)(6.1)
Legacy tax items(0.2)(0.6)(0.4)
Other0.1(0.7)0.8
Effective tax rate31.1%30.2%31.7%
Income tax paid$369.4$335.7(1)$293.3
(1) Includes fourth quarter 2012 estimated federal tax payment made in 2013 due to IRS relief for companies affected by Hurricane Sandy
(2) Includes approximately $92 million in payments for tax audit settlements in the first quarter of 2012.
Source of income Before Provision for Income Taxes 
Year Ended December 31,
201420132012
United States$912.6$836.1$694.2
International548.4333.2329.8
Income before provision for income taxes$1,461.0$1,169.3$1,024.0
Components of Deferred Tax Assets and Liabilities 
December 31,
20142013
Deferred tax assets:
Current:
Account receivable allowances$7.7$8.2
Accrued compensation and benefits14.612.8
Deferred revenue6.77.3
Legal and professional fees10.410.9
Restructuring2.33.5
Uncertain tax positions-7.5
Other3.50.7
Total current45.250.9
Non-current:
Accumulated depreciation and amortization0.92.6
Stock-based compensation62.373.7
Benefit plans108.778.9
Deferred rent and construction allowance30.530.4
Deferred revenue34.233.4
Foreign net operating loss (1)7.510.6
Uncertain tax positions38.326.8
Self-insured related reserves14.920.4
Other5.64.3
Total non-current302.9281.1
Total deferred tax assets348.1332.0
Deferred tax liabilities:
Current:
Compensation and benefits(3.0)-
Unrealized gain on net investment hedges - OCI(14.0)-
Other(1.1)-
Total Current(18.1)-
Non-current:
Accumulated depreciation and amortization of intangible assets and capitalized software(204.3)(153.7)
Foreign earnings to be repatriated(3.4)(3.7)
Self-insured related income(16.9)(24.0)
Other liabilities(0.1)(2.7)
Total non-current(224.7)(184.1)
Total deferred tax liabilities(242.8)(184.1)
Net deferred tax asset105.3147.9
Valuation allowance(6.9)(8.4)
Total net deferred tax assets$98.4$139.5
(1) Amounts are primarily set to expire beginning in 2018, if unused.
Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions 
Year Ended December 31,
201420132012
Balance as of January 1$195.6$156.6$205.4
Additions for tax positions related to the current year52.567.849.1
Additions for tax positions of prior years8.76.118.9
Reductions for tax positions of prior years(13.0)(10.1)(20.6)
Settlements with taxing authorities(18.8)(21.4)(91.5)
Lapse of statute of limitations(4.7)(3.4)(4.7)
Balance as of December 31$220.3$195.6$156.6
INDEBTEDNESS (Tables)
Summary of Total Indebtedness 
December 31,
20142013
2012 Facility$-$-
Notes payable:
Series 2005-1 Notes due 2015, including fair value of interest rate swap of $10.3 million at 2013-310.3
Series 2007-1 Notes due in 2017300.0300.0
2010 Senior Notes, due 2020, net of unamortized discount of $2.0 million and $2.2 million in 2014 and 2013, respectively, and includes a $5.8 million fair value adjustment on an interest rate hedge in 2014503.8497.8
2012 Senior Notes, due 2022, net of unamortized discount of $3.1 million in 2014 and $3.5 million in 2013496.9496.5
2013 Senior Notes, due 2024, net of unamortized discount of $2.5 million in 2014 and $2.8 million in 2013497.5497.2
2014 Senior Notes (5-Year), due 2019, net of unamortized discount of $0.7 million in 2014 and includes a $1.4 million fair value adjustment on an interest rate hedge in 2014450.7-
2014 Senior Notes (30-Year), due 2044, net of unamortized discount of $1.6 million in 2014298.4-
Total long-term debt2,547.32,101.8
Principal Payments Due on Long-Term Borrowings 
Year Ending December 31,Series 2007-1 Notes2010 Senior Notes2012 Senior Notes2013 Senior Notes2014 Senior Notes (5-year)2014 Senior Notes (30-year)Total
2015$-$-$-$-$-$-$-
2016-------
2017300.0-----300.0
2018-------
2019----450.0-450.0
Thereafter-500.0500.0500.0-300.01,800.0
Total$300.0$500.0$500.0$500.0$450.0$300.0$2,550.0
Summary of Components of Interest as Presented in Consolidated Statements of Operations 
Year Ended December 31,
201420132012
Income$6.7$5.5$5.2
Expense on borrowings (a)(118.4)(92.3)(73.8)
Expense on UTPs and other tax related liabilities (b)(5.8)(8.6)0.4
Legacy Tax (c)0.73.64.4
Total$(116.8)$(91.8)$(63.8)
Interest paid (d)$113.7$81.9$94.4
(a) Includes approximately $11 million in 2014 in net costs related to the prepayment of the Series 2005-1 Notes.(b) Includes $2.0 million in 2014 relating to a reversal of an interest accrual relating to the favorable resolution of an international tax matter.(c) Represents a reduction of accrued interest related to the favorable resolution of Legacy Tax Matters, further discussed in Note 18 to the consolidated financial statements.(d) Interest paid includes payments of interest relating to the settlement of income tax audits in the first quarter of 2012 as well as net settlements on interest rate swaps more fully discussed in Note 5.
Fair Value and Carrying Value of Long-Term Debt 
December 31, 2014December 31, 2013
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
Series 2005-1 Notes$-$-$310.3$319.2
Series 2007-1 Notes300.0334.6300.0334.7
2010 Senior Notes 503.8564.4497.8536.6
2012 Senior Notes 496.9537.1496.5497.0
2013 Senior Notes 497.5548.4497.2501.2
2014 Senior Notes (5-Year) 450.7454.3--
2014 Senior Notes (30-Year)298.4333.9--
Total$2,547.3$2,772.7$2,101.8$2,188.7
CAPITAL STOCK (Tables)
Dividends Paid 
Dividends Per Share
Year ended December 31,
201420132012
DeclaredPaidDeclaredPaidDeclaredPaid
First quarter$-$0.28$-$0.20$-$0.16
Second quarter0.280.280.200.200.160.16
Third quarter0.280.280.250.250.160.16
Fourth quarter0.620.280.530.250.360.16
Total$1.18$1.12$0.98$0.90$0.68$0.64
Share Repurchase Programs 
Date AuthorizedAmount AuthorizedRemaining Authority
February 12, 2013$1,000.0$-
February 11, 2014$1,000.0$563.5
December 16, 2014$1,000.0$1,000.0
LEASE COMMITMENTS (Tables)
Operating Leases, Minimum Rent for Payment
Year Ending December 31,Operating Leases
2015$93.4
201680.9
201778.3
201872.7
201964.9
Thereafter447.3
Total minimum lease payments$837.5
SEGMENT INFORMATION (Tables)
Financial Information by Segment 
Year Ended December 31,
20142013
MISMAEliminationsConsolidatedMISMAEliminationsConsolidated
Revenue$2,353.4$1,081.8$(100.9)$3,334.3$2,150.2$913.3$(91.0)$2,972.5
Operating, SG&A1,076.2824.3(100.9)1,799.61,034.0701.5(91.0)1,644.5
Adjusted Operating Income1,277.2257.5-1,534.71,116.2211.8-1,328.0
Depreciation and amortization49.446.2-95.646.746.7-93.4
Operating income$1,227.8$211.3$-$1,439.1$1,069.5$165.1$-$1,234.6
Year Ended December 31,
2012
MISMAEliminationsConsolidated
Revenue$1,968.8$844.9$(83.4)$2,730.3
Operating, SG&A976.3654.3(83.4)1,547.2
Adjusted Operating Income992.5190.6-1,183.1
Depreciation and amortization44.449.1-93.5
Goodwill impairment charge-12.2-12.2
Operating income$948.1$129.3$-$1,077.4
Revenue by Line of Business within Each Reportable Segment 
Year Ended December 31,
201420132012
MIS:
Corporate finance (CFG)$1,109.3$996.8$857.6
Structured finance (SFG)426.5382.5381.0
Financial institutions (FIG)354.7338.8325.5
Public, project and infrastructure finance (PPIF)357.3341.3322.7
Total ratings revenue2,247.82,059.41,886.8
MIS Other18.012.210.5
Total external revenue2,265.82,071.61,897.3
Intersegment royalty87.678.671.5
Total2,353.42,150.21,968.8
MA:
Research, data and analytics (RD&A)571.8519.8482.7
Enterprise risk solutions (ERS)328.5262.5242.6
Professional services (PS)168.2118.6107.7
Total external revenue1,068.5900.9833.0
Intersegment revenue13.312.411.9
Total1,081.8913.3844.9
Eliminations(100.9)(91.0)(83.4)
Total MCO$3,334.3$2,972.5$2,730.3
Consolidated Revenue Information by Geographic Area 
Year Ended December 31,
201420132012
Revenue:
U.S.$1,814.5$1,626.5$1,472.4
International:
EMEA952.8862.8800.2
Asia-Pacific338.3286.1266.5
Americas228.7197.1191.2
Total International1,519.81,346.01,257.9
Total$3,334.3$2,972.5$2,730.3
Long-lived assets at December 31:
United States$657.6$552.3$498.4
International1,011.3613.2672.3
Total$1,668.9$1,165.5$1,170.7
VALUATION AND QUALIFYING ACCOUNTS (Tables)
Summary of Activity for Both Allowances
Year Ended December 31,Balance at Beginning of the YearAdditionsWrite-offs and AdjustmentsBalance at End of the Year
2014
Accounts receivable allowance$(28.9)$(54.9)$54.4$(29.4)
Deferred tax assets - valuation allowance$(8.4)$(0.1)$1.6$(6.9)
2013
Accounts receivable allowance$(29.1)$(44.5)$44.7$(28.9)
Deferred tax assets - valuation allowance$(15.2)$(0.1)$6.9$(8.4)
2012
Accounts receivable allowance$(28.0)$(44.3)$43.2$(29.1)
Deferred tax assets - valuation allowance$(13.9)$(3.1)$1.8$(15.2)
OTHER NON-OPERATING INCOME (EXPENSE), NET (Tables)
Components of Other Non-Operating Income (Expense), Net
Year Ended December 31,
201420132012
FX gain(loss) (a)$20.3$-$(5.9)
Legacy Tax (b)6.419.212.8
Joint venture income9.68.84.8
Other(0.4)(1.5)(1.3)
Total$35.9$26.5$10.4
(a) The FX gain in 2014 reflects the strengthening of the U.S. dollar to the euro and GBP for certain U.S. dollar denominated assets held by the Company's international subsidiaries.(b) The 2014 amount relate to the expiration of a statute of limitations for a Legacy Tax Matter. The 2013 amount represents a reversal relating to favorable resolution of a Legacy Tax Matter for the 2007-2009 tax years. The 2012 amount represents a reversal of a liability relating to the favorable resolution of a Legacy Tax Matter for the 2005 and 2006 tax years.
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
Quarterly Financial Data
Three Months Ended
(amounts in millions, except EPS)March 31June 30September 30December 31
2014
Revenue$767.2$873.5$816.1$877.5
Operating Income$333.0$411.7$349.7$344.7
Net income attributable to Moody's$218.0$319.2$215.2$236.3
EPS:
Basic$1.02$1.51$1.02$1.14
Diluted$1.00$1.48$1.00$1.12
2013
Revenue$731.8$756.0$705.5$779.2
Operating income$280.4$350.8$291.5$311.9
Net income attributable to Moody's$188.4$225.5$183.9$206.7
EPS:
Basic$0.84$1.01$0.84$0.96
Diluted$0.83$1.00$0.83$0.94
Description of Business and Basis of Presentation - Additional Information (Detail)
12 Months Ended
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
Number of reportable segments
2 
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Summary Of Significant Accounting Policies [Line Items]
 
 
 
Research and development costs
$ 37.9 
$ 22.8 
$ 16.1 
Deferred Revenue related to rated securities
107.0 
97.0 
82.0 
Account receivable related to commercial paper
$ 22.0 
$ 21.0 
$ 22.0 
Concentration risk, percentage
1,000.00% 
1,000.00% 
 
Reporting Units
6 
 
 
MIS |
Ratings Member [Member]
 
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
 
Reporting Units
2 
 
 
MIS |
Non Ratings [Member]
 
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
 
Reporting Units
1 
 
 
MA
 
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
 
Reporting Units
4 
 
 
Reconciliation of Basic to Diluted Shares Outstanding (Detail)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Schedule Of Weighted Average Number Of Diluted Shares Outstanding [Line Items]
 
 
 
Basic
210.7 
219.4 
223.2 
Dilutive effect of shares issuable under stock-based compensation plans
4.0 
4.1 
3.4 
Diluted
214.7 
223.5 
226.6 
Antidilutive options to purchase common shares and restricted stock as well as contingently issuable restricted stock which are excluded from the table above
0.7 
4.0 
7.5 
Cash Equivalent and Investments - Additional Information (Detail)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Minimum |
fixed maturity and open ended mutual funds [Member]
 
 
Schedule Of Investments [Line Items]
 
 
securities, maturity period
6 months 
 
Minimum |
short term investment
 
 
Schedule Of Investments [Line Items]
 
 
securities, maturity period
1 month 
1 month 
Maximum |
certificate of deposit
 
 
Schedule Of Investments [Line Items]
 
 
securities, maturity period
90 days 
 
Maximum |
fixed maturity and open ended mutual funds [Member]
 
 
Schedule Of Investments [Line Items]
 
 
securities, maturity period
23 months 
 
Maximum |
short term investment
 
 
Schedule Of Investments [Line Items]
 
 
securities, maturity period
10 months 
9 months 
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Series 2005 - 1 Swap
Dec. 31, 2014
Twenty Ten Senior Notes [Member]
Dec. 31, 2014
Two Thousand Fourteen Senior Notes Five Year [Member]
Dec. 31, 2014
Interest Income Expense Net [Member]
Derivative [Line Items]
 
 
 
 
 
 
 
Derivative Notional Amount
 
 
 
$ 300.0 
$ 250.0 
$ 250.0 
 
Floating interest rate base
 
 
 
3-month LIBOR 
3-month LIBOR 
3-month LIBOR 
 
Accumulated Other Comprehensive Income Loss Net Of Tax
(235.2)
(54.6)
(82.1)
 
 
 
 
Gain Due To Termination Of Swap
 
 
 
 
 
 
$ 4 
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards, Cash Flow Hedging (Detail)
In Millions, unless otherwise specified
Dec. 31, 2014
Foreign Currency Forward Contracts To Purchase U S Dollars With Euros
USD ($)
Dec. 31, 2013
Foreign Currency Forward Contracts To Purchase U S Dollars With Euros
USD ($)
Dec. 31, 2014
Foreign Currency Forward Contracts To Sell U S Dollars For Euros
USD ($)
Dec. 31, 2013
Foreign Currency Forward Contracts To Sell U S Dollars For Euros
USD ($)
Dec. 31, 2014
Foreign Currency Forward Contracts To Purchase U S Dollars With GBP
USD ($)
Dec. 31, 2013
Foreign Currency Forward Contracts To Purchase U S Dollars With GBP
USD ($)
Dec. 31, 2014
Foreign Currency Forward Contracts To Sell U S Dollars For GBP
USD ($)
Dec. 31, 2013
Foreign Currency Forward Contracts To Sell U S Dollars For GBP
USD ($)
Dec. 31, 2014
Foreign Currency Forward Contracts To Purchase U S Dollars With Other Foreign Currencies
USD ($)
Dec. 31, 2013
Foreign Currency Forward Contracts To Purchase U S Dollars With Other Foreign Currencies
USD ($)
Dec. 31, 2014
Foreign Currency Forward Contracts To Sell U S Dollars For Other Foreign Currencies
USD ($)
Dec. 31, 2013
Foreign Currency Forward Contracts To Sell U S Dollars For Other Foreign Currencies
USD ($)
Dec. 31, 2014
Foreign Currency Forward Contracts To Purchase Euros With Other Foreign Currencies
EUR (€)
Dec. 31, 2013
Foreign Currency Forward Contracts To Purchase Euros With Other Foreign Currencies
EUR (€)
Dec. 31, 2014
Foreign Currency Forward Contracts To Purchase Euros With GBP
EUR (€)
Dec. 31, 2013
Foreign Currency Forward Contracts To Purchase Euros With GBP
EUR (€)
Dec. 31, 2014
Foreign Currency Forward Contracts To Sell Euros For GBP
EUR (€)
Dec. 31, 2013
Foreign Currency Forward Contracts To Sell Euros For GBP
EUR (€)
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Notional Amount
$ 38.5 
$ 14.2 
$ 51.1 
$ 53.2 
$ 0.2 
$ 0 
$ 0 
$ 0 
$ 1.2 
$ 0 
$ 0 
$ 0 
€ 34.0 
€ 13.1 
€ 25.0 
€ 22.1 
€ 38.2 
€ 0 
Summary of Notional Amounts of Outstanding Foreign Exchange Forward Contracts, Designated as Net Investment Hedges (Detail) (Net Investment Hedging [Member])
In Millions, unless otherwise specified
Dec. 31, 2014
Foreign Currency Forward Contracts To Sell Euros for U S Dollars
EUR (€)
Dec. 31, 2013
Foreign Currency Forward Contracts To Sell Euros for U S Dollars
EUR (€)
Dec. 31, 2014
Foreign Currency Forward Contracts To Sell Japanese Yen For US Dollars [Member]
JPY (¥)
Dec. 31, 2013
Foreign Currency Forward Contracts To Sell Japanese Yen For US Dollars [Member]
JPY (¥)
Derivative [Line Items]
 
 
 
 
Derivative Notional Amount
€ 50.0 
€ 50.0 
¥ 19,400.0 
¥ 19,700.0 
Fair Value of Derivative Instruments (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Derivatives Fair Value [Line Items]
 
 
Derivatives assets
$ 41.8 
$ 20.5 
Derivatives liabilities
2.1 
1.7 
Derivatives designated as accounting hedges
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives assets
36.2 
19.6 
Derivatives liabilities
   
1.0 
Derivatives designated as accounting hedges |
Interest rate swaps |
Other Assets
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives assets
17.4 
10.3 
Derivatives designated as accounting hedges |
Interest rate swaps |
Accounts payable and accrued liabilities
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives liabilities
0 
0 
Derivatives designated as accounting hedges |
Foreign exchange forward |
Accounts payable and accrued liabilities
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives liabilities
0 
1.0 
Derivatives designated as accounting hedges |
Foreign exchange forward |
Net Investment Hedging |
Other Current Assets
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives assets
18.8 
9.3 
Derivatives not designated as accounting hedges |
Foreign exchange forward |
Other Current Assets
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives assets
5.6 
0.9 
Derivatives not designated as accounting hedges |
Foreign exchange forward |
Accounts payable and accrued liabilities
 
 
Derivatives Fair Value [Line Items]
 
 
Derivatives liabilities
$ 2.1 
$ 0.7 
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
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Derivatives designated as accounting hedges |
Interest rate swaps |
Interest expense, net
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
Amount of Gain (Loss) Recognized in Income
$ 11.7 
$ 4.2 
$ 3.6 
Derivatives not designated as accounting hedges |
Foreign Exchange Forwards and Options |
Other non-operating (expense) income
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
Amount of Gain (Loss) Recognized in Income
$ (2.0)
$ 2.1 
$ 0.9 
Gains and Losses on Derivatives Designated as Hedging Instruments, Net Investment Hedging (Detail) (Net Investment Hedging, USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Derivative Instruments Gain Loss [Line Items]
 
 
 
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)
$ 19.4 
$ 3.7 
$ (2.2)
Foreign exchange forward
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)
$ 19.4 
$ 3.7 
$ (2.2)
Property and Equipment, Net (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Property Plant And Equipment [Line Items]
 
 
Office and computer equipment (3 - 20 year estimated useful life)
$ 152.5 
$ 129.7 
Office furniture and fixtures (5 - 10 year estimated useful life)
43.8 
40.6 
Internal-use computer software (3 - 5 year estimated useful life)
336.8 
284.9 
Leasehold improvements (3 - 20 year estimated useful life)
220.7 
199.2 
Total property and equipment, at cost
753.8 
654.4 
Property and equipment, accumulated depreciation
451.5 
375.7 
Total property and equipment, net
$ 302.3 
$ 278.7 
Property and Equipment, Net (Parenthetical) (Detail)
12 Months Ended
Dec. 31, 2014
Minimum |
Office and computer equipment
 
Property Plant And Equipment [Line Items]
 
Property plant and equipment useful life
3 years 
Minimum |
Office furniture and fixtures
 
Property Plant And Equipment [Line Items]
 
Property plant and equipment useful life
3 years 
Minimum |
Internal-use Computer Software
 
Property Plant And Equipment [Line Items]
 
Property plant and equipment useful life
3 years 
Minimum |
Leasehold Improvements
 
Property Plant And Equipment [Line Items]
 
Property plant and equipment useful life
3 years 
Maximum |
Office and computer equipment
 
Property Plant And Equipment [Line Items]
 
Property plant and equipment useful life
10 years 
Maximum |
Office furniture and fixtures
 
Property Plant And Equipment [Line Items]
 
Property plant and equipment useful life
10 years 
Maximum |
Internal-use Computer Software
 
Property Plant And Equipment [Line Items]
 
Property plant and equipment useful life
10 years 
Maximum |
Leasehold Improvements
 
Property Plant And Equipment [Line Items]
 
Property plant and equipment useful life
20 years 
Property and Equipment, Net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Property Plant And Equipment Disclosure [Line Items]
 
 
 
Depreciation and amortization expense related to property and equipment
$ 67.2 
$ 65.4 
$ 63.4 
Acquisitions - Additional Information (Detail) (USD $)
12 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 11, 2013
Amba
Dec. 31, 2014
Amba
Dec. 10, 2013
Amba
Jun. 26, 2014
ICRA [Member]
Jun. 26, 2014
ICRA [Member]
After Tax Member [Member]
Jul. 17, 2014
Web Equity Solutions [Member]
Oct. 27, 2014
Lewtan [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
Acquired cash
 
 
 
$ 16,000,000 
 
 
$ 5,000,000 
 
$ 600,000 
 
Amount related to transaction cost
 
 
 
 
1,000,000 
 
2,000,000 
 
2,000,000 
 
Remaining ownership interest
33.00% 
 
 
 
 
 
 
 
 
 
Contingent consideration arising from acquisitions, liabilities
2,100,000 
17,500,000 
 
 
 
 
 
 
 
 
Additional direct equity investment
 
 
 
 
 
10,000.00% 
 
 
10,000.00% 
10,000.00% 
Acquired receivables gross contractual amount
 
 
 
 
6,000,000 
 
14,000,000 
 
700,000 
 
ICRA Gain
102,800,000 
0 
0 
 
 
 
 
78,500,000 
 
 
Ownership stake
 
 
 
 
 
 
5,006.00% 
 
 
 
Business Acquisition Cost Of Acquired Entity Cash Paid
 
 
 
$ 67,300,000 
 
 
$ 86,000,000 
 
$ 130,500,000 
 
Additional Offer Shares Acquired of ICRA Limited
 
 
 
 
 
 
2,154,722 
 
 
 
Purchase Price Allocation (Detail) (USD $)
Dec. 31, 2014
Dec. 31, 2013
Dec. 10, 2013
Amba
Dec. 10, 2013
Amba
Trade names
Dec. 10, 2013
Amba
Client relationships
Dec. 10, 2013
Amba
Other intangibles
Jun. 26, 2014
ICRA [Member]
Jun. 26, 2014
ICRA [Member]
Trade names
Jun. 26, 2014
ICRA [Member]
Client relationships
Jun. 26, 2014
ICRA [Member]
Other intangibles
Jul. 17, 2014
Web Equity Solutions [Member]
Jul. 17, 2014
Web Equity Solutions [Member]
Trade names
Jul. 17, 2014
Web Equity Solutions [Member]
Client relationships
Jul. 17, 2014
Web Equity Solutions [Member]
Software
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets
 
 
$ 23,700,000 
 
 
 
$ 25,400,000 
 
 
 
$ 3,000,000 
 
 
 
Property and equipment, net
 
 
400,000 
 
 
 
15,100,000 
 
 
 
2,300,000 
 
 
 
Total intangible assets
 
 
31,600,000 
3,300,000 
26,700,000 
1,600,000 
98,900,000 
46,800,000 
33,800,000 
18,300,000 
54,800,000 
500,000 
42,800,000 
11,500,000 
Goodwill
1,021,100,000 
665,200,000 
29,200,000 
 
 
 
296,700,000 
 
 
 
77,600,000 
 
 
 
Indemnification asset
 
 
10,400,000 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
 
2,000,000 
 
 
 
56,300,000 
 
 
 
 
 
 
 
Liabilities assumed
 
 
(25,700,000)
 
 
 
(62,700,000)
 
 
 
(7,200,000)
 
 
 
Net assets acquired
 
 
71,600,000 
 
 
 
210,900,000 
 
 
 
130,500,000 
 
 
 
Fair value of non-controlling interest assumed
$ 218,800,000 
 
 
 
 
 
$ 218,800,000 
 
 
 
 
 
 
 
Purchase Price Allocation (Parenthetical) (Detail)
0 Months Ended
Dec. 11, 2013
Amba
Trade names
Dec. 11, 2013
Amba
Client relationships
Dec. 11, 2013
Amba
Other intangibles
Dec. 11, 2013
Amba
Total Intangible Assets
Jun. 26, 2014
ICRA [Member]
Trade names
Jun. 26, 2014
ICRA [Member]
Client relationships
Jun. 26, 2014
ICRA [Member]
Other intangibles
Jun. 26, 2014
ICRA [Member]
Total Intangible Assets
Jul. 17, 2014
Web Equity Solutions [Member]
Trade names
Jul. 17, 2014
Web Equity Solutions [Member]
Client relationships
Jul. 17, 2014
Web Equity Solutions [Member]
Software
Jul. 17, 2014
Web Equity Solutions [Member]
Total Intangible Assets
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average life of intangible assets acquired (in years)
7 years 
12 years 
3 years 
11 years 
36 years 
19 years 
17 years 
26 years 
4 years 
18 years 
15 years 
17 years 
Total Consideration Transferred to Sellers (Detail) (USD $)
In Millions, unless otherwise specified
0 Months Ended
Dec. 11, 2013
Amba
Jun. 26, 2014
ICRA [Member]
Jul. 17, 2014
Web Equity Solutions [Member]
Business Acquisition [Line Items]
 
 
 
Cash paid
$ 67.3 
$ 86.0 
$ 130.5 
Contingent consideration arising from acquisitions, Liabilities
(4.3)
 
 
Business Combination Fair Value Of Equity Interest
 
124.9 
 
Total fair value of consideration transferred
$ 71.6 
$ 210.9 
 
Activity in Goodwill (Detail) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2012
Sep. 30, 2012
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Goodwill [Line Items]
 
 
 
 
 
Beginning balance
 
 
$ 665,200,000 
 
 
Impairment charge
(1,000,000)
(1,000,000)
   
   
(12,200,000)
Ending balance
 
 
1,021,100,000 
665,200,000 
 
Gross Goodwill [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Beginning balance
 
 
677,400,000 
649,300,000 
 
Additions/adjustments
 
 
397,800,000 
34,500,000 
 
FX translation
 
 
(41,900,000)
(6,400,000)
 
Ending balance
 
 
1,033,300,000 
677,400,000 
 
Accumulated Impairment Charge [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Beginning balance
 
 
(12,200,000)
(12,200,000)
 
Additions/adjustments
 
 
0 
0 
 
FX translation
 
 
   
   
 
Ending balance
 
 
(12,200,000)
(12,200,000)
 
Net Goodwill [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Beginning balance
 
 
665,200,000 
637,100,000 
 
Additions/adjustments
 
 
397,800,000 
34,500,000 
 
FX translation
 
 
(41,900,000)
(6,400,000)
 
Ending balance
 
 
1,021,100,000 
665,200,000 
 
Moodys Investors Service [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Impairment charge
 
 
   
   
0 
Moodys Investors Service [Member] |
Gross Goodwill [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Beginning balance
 
 
11,400,000 
11,500,000 
 
Additions/adjustments
 
 
296,700,000 
0 
 
FX translation
 
 
(9,400,000)
(100,000)
 
Ending balance
 
 
298,700,000 
11,400,000 
 
Moodys Investors Service [Member] |
Accumulated Impairment Charge [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Beginning balance
 
 
   
   
 
Additions/adjustments
 
 
0 
0 
 
FX translation
 
 
   
   
 
Ending balance
 
 
   
   
 
Moodys Investors Service [Member] |
Net Goodwill [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Beginning balance
 
 
11,400,000 
11,500,000 
 
Additions/adjustments
 
 
296,700,000 
0 
 
FX translation
 
 
(9,400,000)
(100,000)
 
Ending balance
 
 
298,700,000 
11,400,000 
 
Moodys Analytics [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Impairment charge
 
 
   
   
(12,200,000)
Moodys Analytics [Member] |
Gross Goodwill [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Beginning balance
 
 
666,000,000 
637,800,000 
 
Additions/adjustments
 
 
101,100,000 
34,500,000 
 
FX translation
 
 
(32,500,000)
(6,300,000)
 
Ending balance
 
 
734,600,000 
666,000,000 
 
Moodys Analytics [Member] |
Accumulated Impairment Charge [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Beginning balance
 
 
(12,200,000)
(12.2)
 
Additions/adjustments
 
 
0 
0 
 
FX translation
 
 
   
0 
 
Ending balance
 
 
(12,200,000)
(12,200,000)
 
Moodys Analytics [Member] |
Net Goodwill [Member]
 
 
 
 
 
Goodwill [Line Items]
 
 
 
 
 
Beginning balance
 
 
653,800,000 
625,600,000 
 
Additions/adjustments
 
 
101,100,000 
34,500,000 
 
FX translation
 
 
(32,500,000)
(6,300,000)
 
Ending balance
 
 
$ 722,400,000 
$ 653,800,000 
 
Goodwill and Other Acquired Intangible Assets - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2012
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Schedule Of Goodwill And Other Intangible Assets [Line Items]
 
 
 
 
 
 
Goodwill impairment charge
 
$ 1,000,000 
$ 1,000,000 
    
    
$ 12,200,000 
Intangible assets impairment charge
$ 1,000,000 
 
 
 
 
 
Amortization Expense Relating to Acquired Intangible Assets (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Finite Lived Intangible Assets [Line Items]
 
 
 
Amortization expense
$ 28.4 
$ 28.0 
$ 30.1 
Estimated Future Amortization Expense for Acquired Intangible Assets Subject to Amortization (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Schedule Of Actual And Estimated Amortization Expense [Line Items]
 
2015
$ 33.5 
2016
31.7 
2017
28.1 
2018
22.4 
2019
19.5 
Thereafter
$ 210.3 
Financial Instruments Carried at Fair Value on Recurring Basis (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
$ 41.8 
$ 20.5 
Total, assets
239.5 
232.8 
Derivatives, liabilities
2.1 
1.7 
Contingent consideration arising from acquisitions, liabilities
2.1 
17.5 
Total, liabilities
4.2 
19.2 
money market
149.7 
212.3 
fixed maturity and open ended mutual funds [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Fixed Maturity Mutual Funds and Open Ended Mutual Funds
48.0 
 
Level 2
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
41.8 
20.5 
Total, assets
41.8 
20.5 
Derivatives, liabilities
2.1 
1.7 
Contingent consideration arising from acquisitions, liabilities
0 
0 
Total, liabilities
2.1 
1.7 
Fixed Maturity Mutual Funds and Open Ended Mutual Funds
0 
 
money market
0 
0 
Level 3
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
   
   
Total, assets
   
   
Derivatives, liabilities
0 
0 
Contingent consideration arising from acquisitions, liabilities
2.1 
17.5 
Total, liabilities
2.1 
17.5 
Fixed Maturity Mutual Funds and Open Ended Mutual Funds
0 
 
money market
0 
0 
Level 1
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Derivatives, assets
   
   
Total, assets
197.7 
212.3 
Derivatives, liabilities
0 
0 
Contingent consideration arising from acquisitions, liabilities
0 
0 
Total, liabilities
   
   
money market
149.7 
212.3 
Level 1 |
fixed maturity and open ended mutual funds [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Fixed Maturity Mutual Funds and Open Ended Mutual Funds
$ 48.0 
 
Changes in Fair Value of Level Three Liabilities, Contingent Consideration (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
 
 
 
Contingent Consideration, Beginning balance
$ 17.5 
$ 9.0 
$ 9.1 
Contingent Consideration, Issuances
   
4.3 
0 
Contingent Consideration, Settlements
16.5 
2.5 
0.5 
Contingent Consideration, Losses Included in earnings
1.3 
6.9 
0.1 
Contingent Consideration, Foreign currency translation adjustments
(0.2)
(0.2)
0.3 
Contingent Consideration, Ending balance
 
$ 17.5 
$ 9.0 
Fair Value - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Fair Value Of Financial Instruments [Line Items]
 
 
 
 
Contingent consideration at fair value
 
$ 17.5 
$ 9.0 
$ 9.1 
Business Acquisition Contingent Consideration At Fair Value
2.1 
17.5 
 
 
Minority Interest Ownership Percentage By Noncontrolling Owners
33.00% 
 
 
 
Payments Of Dividends Minority Interest
11.8 
12.2 
8.3 
 
Accounts Payable And Accrued Liabilities [Member]
 
 
 
 
Fair Value Of Financial Instruments [Line Items]
 
 
 
 
Business Acquisition Contingent Consideration At Fair Value
2.1 
 
 
 
Amba [Member]
 
 
 
 
Fair Value Of Financial Instruments [Line Items]
 
 
 
 
Business Acquisition Contingent Consideration At Fair Value
4.3 
 
 
 
Payments Of Dividends Minority Interest
$ 12.2 
 
 
 
fixed maturity and open ended mutual funds [Member] |
Minimum [Member]
 
 
 
 
Fair Value Of Financial Instruments [Line Items]
 
 
 
 
Securities Maturity period
2 months 
 
 
 
fixed maturity and open ended mutual funds [Member] |
Maximum [Member]
 
 
 
 
Fair Value Of Financial Instruments [Line Items]
 
 
 
 
Securities Maturity period
23 months 
 
 
 
Components of Accumulated Other Comprehensive Income (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Accumulated Other Comprehensive Income Loss [Line Items]
 
 
 
Unrealized losses on cash flow and net investment hedges, net of tax
$ 20.9 
$ 1.5 
 
Total accumulated other comprehensive loss
$ (235.2)
$ (54.6)
$ (82.1)
Changes in Self Insurance Reserves (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Self Insurance Reserves [Line Items]
 
 
 
Self-insurance reserves, beginning balance
$ 27.6 
$ 55.8 
$ 27.1 
Charged to costs and expenses
(5.8)
0.9 
(38.1)
Payments
11.9 
27.3 
9.4 
Self-insurance reserves, Ending balance
$ 21.5 
$ 27.6 
$ 55.8 
Summary of Changes in Benefit Obligations and Fair Value of Plan Assets for Post-Retirement Plans (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Schedule Of Pension And Other Retirement Benefits Expected Benefit Payments [Line Items]
 
 
 
Ending Balance
$ 0 
$ 15.6 
 
Pension and retirement benefits liability-current
(5.1)
(7.0)
 
Pension and retirement benefits liability-non current
(244.8)
(164.0)
 
Pension Plans
 
 
 
Schedule Of Pension And Other Retirement Benefits Expected Benefit Payments [Line Items]
 
 
 
Benefit obligation, beginning of the period
347.1 
356.3 
 
Service cost
(18.4)
(19.8)
(18.9)
Interest cost
(16.5)
(13.5)
(13.1)
Plan participants' contributions
0 
0 
 
Benefits paid
(6.4)
(5.3)
 
Actuarial gain (loss)
8.3 
0.7 
 
Benefit obligation, end of the period
461.8 
347.1 
356.3 
Beginning Balance
204.6 
167.6 
 
Actual return on plan assets
12.9 
23.0 
 
Benefits paid
6.4 
5.3 
 
Employer contributions
37.3 
19.3 
 
Plan participants' contributions
0 
0 
 
Ending Balance
248.4 
204.6 
167.6 
Funded status of the plans
(213.4)
(142.5)
 
Pension and retirement benefits liability-current
(4.3)
(6.2)
 
Pension and retirement benefits liability-non current
(209.1)
(136.3)
 
Net amount recognized
(213.4)
(142.5)
 
Accumulated benefit obligation, end of the period
396.3 
298.5 
 
Assumption changes
77.9 
(37.9)
 
Other Retirement Plans
 
 
 
Schedule Of Pension And Other Retirement Benefits Expected Benefit Payments [Line Items]
 
 
 
Benefit obligation, beginning of the period
20.7 
21.8 
 
Service cost
(1.7)
(1.7)
(1.5)
Interest cost
(0.9)
(0.8)
(0.7)
Plan participants' contributions
0.4 
0.3 
 
Benefits paid
(0.6)
(0.6)
 
Actuarial gain (loss)
0.1 
(1.0)
 
Benefit obligation, end of the period
26.7 
20.7 
21.8 
Beginning Balance
   
   
 
Actual return on plan assets
   
   
 
Benefits paid
0.6 
0.6 
 
Employer contributions
0.2 
0.3 
 
Plan participants' contributions
(0.4)
(0.3)
 
Ending Balance
   
   
   
Funded status of the plans
(26.7)
(20.7)
 
Pension and retirement benefits liability-current
(0.8)
(0.8)
 
Pension and retirement benefits liability-non current
(25.9)
(19.9)
 
Net amount recognized
(26.7)
(20.7)
 
Assumption changes
$ 3.5 
$ (2.3)
 
Accumulated Benefit Obligation in Excess of Plan Assets (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Schedule Of Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets [Line Items]
 
 
Aggregate projected benefit obligation
$ 461.8 
$ 347.1 
Aggregate accumulated benefit obligation
396.3 
298.5 
Aggregate fair value of plan assets
$ 248.4 
$ 204.6 
Summary of Pre-Tax Net Actuarial Losses and Prior Service Cost Recognized in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Pension Plans
 
 
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
 
 
Net actuarial losses
$ (165.5)
$ (84.6)
Net prior service costs
(2.7)
(3.3)
Total recognized in AOCI- pretax
(168.2)
(87.9)
Other Retirement Plans
 
 
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
 
 
Net actuarial losses
(6.0)
(2.4)
Net prior service costs
   
   
Total recognized in AOCI- pretax
$ (6.0)
$ (2.4)
Summary of Post-Retirement Plans to Amortize from Accumulated Other Comprehensive Income (Loss) as Net Periodic Expense (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Pension Plans
 
Schedule Of Net Periodic Benefit Costs And Assumptions For Defined Benefit Retirement Plans [Line Items]
 
Net actuarial losses
$ 13.6 
Net prior service costs
0.7 
Total to be recognized as components of net periodic expense
14.3 
Other Retirement Plans
 
Schedule Of Net Periodic Benefit Costs And Assumptions For Defined Benefit Retirement Plans [Line Items]
 
Net actuarial losses
0.3 
Net prior service costs
0 
Total to be recognized as components of net periodic expense
$ 0.3 
Net Periodic Benefit Expenses Recognized for Post-Retirement Plans (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Amortization of net prior service costs from earlier periods
 
 
   
Pension Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
18.4 
19.8 
18.9 
Interest cost
16.5 
13.5 
13.1 
Expected return on plan assets
(14.3)
(12.9)
(12.5)
Amortization of net actuarial loss from earlier periods
6.6 
10.8 
9.1 
Amortization of net prior service costs from earlier periods
0.7 
0.6 
0.7 
Net periodic expense
27.9 
31.8 
29.3 
Other Retirement Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
1.7 
1.7 
1.5 
Interest cost
0.9 
0.8 
0.7 
Expected return on plan assets
   
   
   
Amortization of net actuarial loss from earlier periods
   
0.3 
0.3 
Amortization of net prior service costs from earlier periods
   
   
 
Net periodic expense
$ 2.6 
$ 2.8 
$ 2.5 
Summary of Pre-Tax Amounts Recognized in Other Comprehensive Income (Detail) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Schedule Of Pension And Other Retirement Benefits Recognized In Accumulated Other Comprehensive Income Loss [Line Items]
 
 
 
Net actuarial losses and prior service costs (pre-tax)
$ (93,800,000)
$ 50,900,000 
$ (26,000,000)
Amortization of actuarial losses and prior service costs included in net income (pre-tax)
7,300,000 
11,900,000 
10,000,000 
Pension Plans
 
 
 
Schedule Of Pension And Other Retirement Benefits Recognized In Accumulated Other Comprehensive Income Loss [Line Items]
 
 
 
Net actuarial losses and prior service costs (pre-tax)
(6,600,000)
(10,800,000)
 
Amortization of prior service costs
(700,000)
(600,000)
 
Accelerated recognition of actuarial loss due to settlement
0 
   
 
Amortization of actuarial losses and prior service costs included in net income (pre-tax)
(87,500,000)
47,300,000 
 
Total recognized in OCI - pre-tax
(80,200,000)
58,700,000 
 
Other Retirement Plans
 
 
 
Schedule Of Pension And Other Retirement Benefits Recognized In Accumulated Other Comprehensive Income Loss [Line Items]
 
 
 
Net actuarial losses and prior service costs (pre-tax)
0 
(300,000)
 
Amortization of prior service costs
0 
0 
 
Accelerated recognition of actuarial loss due to settlement
   
   
 
Amortization of actuarial losses and prior service costs included in net income (pre-tax)
(3,700,000)
3,300,000 
 
Total recognized in OCI - pre-tax
$ (3,700,000)
$ 3,600,000 
 
Weighted-Average Assumptions Used to Determine Benefit Obligations (Detail)
Dec. 31, 2014
Dec. 31, 2013
Pension Plans
 
 
Schedule Of Benefit Obligations Weighted Average Assumptions [Line Items]
 
 
Discount rate
3.78% 
4.71% 
Rate of compensation increase
3.76% 
4.00% 
Other Retirement Plans
 
 
Schedule Of Benefit Obligations Weighted Average Assumptions [Line Items]
 
 
Discount rate
3.65% 
4.45% 
Rate of compensation increase
0.00% 
0.00% 
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Expense (Detail)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Pension Plans
 
 
 
Schedule Of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items]
 
 
 
Discount rate
4.71% 
3.82% 
4.25% 
Expected return on plan assets
6.80% 
7.30% 
7.85% 
Rate of compensation increase
4.00% 
4.00% 
4.00% 
Other Retirement Plans
 
 
 
Schedule Of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items]
 
 
 
Discount rate
4.45% 
3.55% 
4.05% 
Expected return on plan assets
0.00% 
0.00% 
0.00% 
Rate of compensation increase
0.00% 
0.00% 
0.00% 
Pension and Other Retirement Benefits - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Dividends paid on ESOP
$ 0.6 
$ 0.5 
 
Moody's share held in ESOP
490,000 
520,000 
 
Year 2013
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Expected rate of return on assets
6.80% 
 
 
Year 2014
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Expected rate of return on assets
5.80% 
 
 
U.S. Defined Contribution Plans
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Defined contribution compensation expense
26.8 
18.8 
24.5 
International Defined Contribution Plans
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Defined contribution compensation expense
30.6 
19.7 
18.8 
Defined Contribution Plan
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Employee contribution
50.00% 
 
 
Maximum employee contribution
3.00% 
 
 
Funded Plans
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Employer contributions
33.7 
16.8 
 
Unfunded Plans
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Employer contributions
3.6 
2.5 
 
Other Retirement Plans
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Expected rate of return on assets
0.00% 
0.00% 
0.00% 
Employer contributions
0.2 
0.3 
 
Discount rate
3.65% 
4.45% 
 
Net actuarial losses
6.0 
2.4 
 
Foreign Pension Plans, Defined Benefit
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Defined benefit pension liabilities total
9.8 
7.8 
7.2 
Discount rate
2.00% 
3.58% 
3.53% 
Pension expense
$ 0.6 
$ 0.6 
$ 0.6 
Equity Securities
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Plan asset, target asset allocation percentage
53.00% 
 
 
Plan asset, target asset allocation percentage, minimum
48.00% 
 
 
Plan asset, target asset allocation percentage, maximum
58.00% 
 
 
Fixed Income Securities
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Plan asset, target asset allocation percentage
40.00% 
 
 
Plan asset, target asset allocation percentage, minimum
35.00% 
 
 
Plan asset, target asset allocation percentage, maximum
45.00% 
 
 
Other Investments
 
 
 
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Plan asset, target asset allocation percentage
7.00% 
 
 
Plan asset, target asset allocation percentage, minimum
4.00% 
 
 
Plan asset, target asset allocation percentage, maximum
10.00% 
 
 
Assumed Healthcare Cost Trend Rates (Detail)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Pre-Age 65
 
 
 
Assumed Health Care Cost Trend Rates Effect Of One Percentage Point Change [Line Items]
 
 
 
Ultimate rate to which the cost trend rate is assumed to decline (ultimate trend rate)
7.95% 
8.20% 
6.90% 
Year that the rate reaches the ultimate trend rate
2028 
2028 
2020 
Healthcare cost trend rate assumed for the following year
5.00% 
5.00% 
5.00% 
Post-Age 65
 
 
 
Assumed Health Care Cost Trend Rates Effect Of One Percentage Point Change [Line Items]
 
 
 
Ultimate rate to which the cost trend rate is assumed to decline (ultimate trend rate)
7.05% 
7.30% 
7.90% 
Year that the rate reaches the ultimate trend rate
2026 
2026 
2020 
Healthcare cost trend rate assumed for the following year
5.00% 
5.00% 
5.00% 
Estimated Future Benefits Payments for Retirement Plans (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Pension Plans
 
Schedule Of Other Retirement Benefits Expected Benefit Payments [Line Items]
 
2016
$ 10.3 
2017
10.9 
2018
39.6 
2019
14.0 
2020 - 2024
110.5 
2015
8.3 
Other Retirement Plans
 
Schedule Of Other Retirement Benefits Expected Benefit Payments [Line Items]
 
2016
1.0 
2017
1.1 
2018
1.3 
2019
1.5 
2020 - 2024
9.6 
2015
$ 0.8 
Summary of Pension Plan Assets by Category Based on Hierarchy of Fair Value Measurements (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
$ 0 
$ 15.6 
Major Types of Debt and Equity Securities [Domain]
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
248.5 
204.6 
Percent of total assets
100.00% 
100.00% 
Major Types of Debt and Equity Securities [Domain] |
Cash and Cash Equivalents
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
13.2 
0.4 
Percent of total assets
5.00% 
0.00% 
Major Types of Debt and Equity Securities [Domain] |
Emerging Markets Equity Fund
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
14.0 
14.6 
Percent of total assets
6.00% 
7.00% 
Equity Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
122.7 
132.6 
Percent of total assets
50.00% 
65.00% 
Equity Securities |
U.S. Large-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
44.5 
Percent of total assets
 
22.00% 
Equity Securities |
U.S. Small And Mid-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
16.5 
15.3 
Percent of total assets
7.00% 
7.00% 
Equity Securities |
International
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
58.2 
Percent of total assets
 
29.00% 
Equity Securities |
Global Large-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
92.2 
 
Percent of total assets
37.00% 
 
Fixed Income Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
94.8 
56.0 
Percent of total assets
38.00% 
27.00% 
Fixed Income Securities |
Long-term government/treasury bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
13.7 
Percent of total assets
 
7.00% 
Fixed Income Securities |
Long-term investment grade corporate bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
15.4 
Percent of total assets
 
7.00% 
Fixed Income Securities |
U.S. Treasury Inflation-Protected Securities (TIPs)
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
10.7 
8.7 
Percent of total assets
4.00% 
4.00% 
Fixed Income Securities |
Emerging Markets Bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
9.1 
5.8 
Percent of total assets
4.00% 
3.00% 
Fixed Income Securities |
High Yield Bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
6.7 
6.1 
Percent of total assets
3.00% 
3.00% 
Fixed Income Securities |
Common/Collective Trust Funds - Convertible Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
7.5 
6.3 
Percent of total assets
3.00% 
3.00% 
Fixed Income Securities |
Private Real Estate Fund
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
17.8 
15.6 
Percent of total assets
7.00% 
8.00% 
Fixed Income Securities |
Intermediate term investment grade U.S. government [Member]
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
60.8 
 
Percent of total assets
24.00% 
 
Level 1 |
Major Types of Debt and Equity Securities [Domain]
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
23.1 
14.6 
Level 1 |
Major Types of Debt and Equity Securities [Domain] |
Cash and Cash Equivalents
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
0 
Level 1 |
Major Types of Debt and Equity Securities [Domain] |
Emerging Markets Equity Fund
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
14.0 
14.6 
Level 1 |
Equity Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
14.0 
14.6 
Level 1 |
Equity Securities |
U.S. Large-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
   
Level 1 |
Equity Securities |
U.S. Small And Mid-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
   
Level 1 |
Equity Securities |
International
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
   
Level 1 |
Equity Securities |
Global Large-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
 
Level 1 |
Fixed Income Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
9.1 
 
Level 1 |
Fixed Income Securities |
Long-term government/treasury bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
   
Level 1 |
Fixed Income Securities |
Long-term investment grade corporate bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
   
Level 1 |
Fixed Income Securities |
U.S. Treasury Inflation-Protected Securities (TIPs)
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
   
Level 1 |
Fixed Income Securities |
Emerging Markets Bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
9.1 
   
Level 1 |
Fixed Income Securities |
High Yield Bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
   
Level 1 |
Fixed Income Securities |
Common/Collective Trust Funds - Convertible Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
0 
Level 1 |
Fixed Income Securities |
Private Real Estate Fund
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
0 
Level 1 |
Fixed Income Securities |
Intermediate term investment grade U.S. government [Member]
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
 
Level 2 |
Major Types of Debt and Equity Securities [Domain]
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
207.6 
174.4 
Level 2 |
Major Types of Debt and Equity Securities [Domain] |
Cash and Cash Equivalents
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
13.2 
0.4 
Level 2 |
Major Types of Debt and Equity Securities [Domain] |
Emerging Markets Equity Fund
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
0 
Level 2 |
Equity Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
108.7 
118.0 
Level 2 |
Equity Securities |
U.S. Large-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
44.5 
Level 2 |
Equity Securities |
U.S. Small And Mid-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
16.5 
15.3 
Level 2 |
Equity Securities |
International
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
58.2 
Level 2 |
Equity Securities |
Global Large-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
92.2 
 
Level 2 |
Fixed Income Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
85.7 
56.0 
Level 2 |
Fixed Income Securities |
Long-term government/treasury bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
13.7 
Level 2 |
Fixed Income Securities |
Long-term investment grade corporate bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
15.4 
Level 2 |
Fixed Income Securities |
U.S. Treasury Inflation-Protected Securities (TIPs)
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
10.7 
8.7 
Level 2 |
Fixed Income Securities |
Emerging Markets Bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
5.8 
Level 2 |
Fixed Income Securities |
High Yield Bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
6.7 
6.1 
Level 2 |
Fixed Income Securities |
Common/Collective Trust Funds - Convertible Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
7.5 
6.3 
Level 2 |
Fixed Income Securities |
Private Real Estate Fund
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
17.8 
0 
Level 2 |
Fixed Income Securities |
Intermediate term investment grade U.S. government [Member]
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
60.8 
 
Level 3 |
Major Types of Debt and Equity Securities [Domain]
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
15.6 
Level 3 |
Major Types of Debt and Equity Securities [Domain] |
Cash and Cash Equivalents
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
0 
Level 3 |
Major Types of Debt and Equity Securities [Domain] |
Emerging Markets Equity Fund
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
0 
Level 3 |
Equity Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
 
Level 3 |
Equity Securities |
U.S. Large-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
   
Level 3 |
Equity Securities |
U.S. Small And Mid-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
   
Level 3 |
Equity Securities |
International
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
   
Level 3 |
Equity Securities |
Global Large-Cap
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
 
Level 3 |
Fixed Income Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
 
Level 3 |
Fixed Income Securities |
Long-term government/treasury bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
   
Level 3 |
Fixed Income Securities |
Long-term investment grade corporate bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
 
   
Level 3 |
Fixed Income Securities |
U.S. Treasury Inflation-Protected Securities (TIPs)
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
   
Level 3 |
Fixed Income Securities |
Emerging Markets Bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
   
Level 3 |
Fixed Income Securities |
High Yield Bonds
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
   
Level 3 |
Fixed Income Securities |
Common/Collective Trust Funds - Convertible Securities
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
0 
Level 3 |
Fixed Income Securities |
Private Real Estate Fund
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
0 
15.6 
Level 3 |
Fixed Income Securities |
Intermediate term investment grade U.S. government [Member]
 
 
Schedule Of Pension And Other Retirement Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items]
 
 
Balance
$ 0 
 
Summary of Changes in Fair Value of Plan's Level Three Assets (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items]
 
Beginning Balance
$ 15.6 
Return on plan assets related to assets held as the end of the period
1.6 
Purchases (sales), net
0.6 
Transfers (out)
(17.8)
Ending Balance
$ 0 
Stock-Based Compensation Plans - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Stock Option Exercises
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Unrecognized compensation expense
$ 7.4 
 
 
Weighted average period to recognize expense
1 year 4 months 24 days 
 
 
Tax benefit realized upon vesting
43.2 
41.1 
23.4 
Restricted Stock
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Unrecognized compensation expense
81.9 
 
 
Weighted average period to recognize expense
1 year 8 months 12 days 
 
 
Fair value of vested shares
92.4 
54.6 
37.8 
Tax benefit realized upon vesting
31.2 
19.3 
13.4 
Performance-Based Restricted Stock
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Stock options vesting period, years
3 years 
 
 
Unrecognized compensation expense
14.9 
 
 
Weighted average period to recognize expense
10 months 27 days 
 
 
Fair value of vested shares
38.0 
25.5 
0 
Tax benefit realized upon vesting
$ 14.4 
$ 9.7 
$ 0 
Employee Stock Purchase Plan
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Common stock reserved for issuance
6.0 
 
 
Discount allowed to employees on purchase of shares under ESPP plan
5.00% 
5.00% 
5.00% 
ESPP plans elected by plan participants, minimum
1.00% 
 
 
ESPP plans elected by plan participants, maximum
10.00% 
 
 
Director
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Common stock reserved for issuance
1.7 
 
 
Director |
Stock Option Exercises
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Stock options vesting period, years
1 year 
 
 
Director |
Stock Option Exercises |
Maximum
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Stock options exercisable period, maximum, years
10 
 
 
Stock options vesting period, years
4 years 
 
 
1998 Plan |
Stock Option Exercises
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Common stock reserved for issuance
33.0 
 
 
2001 Plan |
Maximum
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Common stock reserved for issuance
50.6 
 
 
2001 Plan |
Instruments Other Than Options |
Maximum
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Common stock reserved for issuance
14.0 
 
 
Stock-Based Compensation Cost and Associated Tax Benefit (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Compensation Related Costs Share Based Payments Disclosure [Line Items]
 
 
 
Stock-based compensation expense
$ 80.4 
$ 67.1 
$ 64.5 
Tax benefit
$ 27.5 
$ 24.7 
$ 23.3 
Weighted Average Assumptions used in Determining Fair Value for Options Granted (Detail)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Schedule Of Weighted Average Assumptions For Fair Values Of Stock Options [Line Items]
 
 
 
Expected dividend yield
1.41% 
1.72% 
1.66% 
Expected stock volatility
41.00% 
43.00% 
44.00% 
Risk-free interest rate
2.30% 
1.53% 
1.55% 
Expected holding period
7 years 2 months 12 days 
7 years 2 months 12 days 
7 years 4 months 24 days 
Grant date fair value
$ 31.53 
$ 17.58 
$ 15.19 
Summary of Option Activity (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Options
 
Shares, Outstanding, Beginning Balance
8.9 
Shares, Granted
0.3 
Shares, Exercised
3.2 
Shares, Forfeited
   
Shares, Expired
   
Shares, Outstanding, Ending Balance
6.0 
Shares, Vested and expected to vest
5.9 
Shares, Exercisable
5.0 
Options
 
Weighted Average Exercise Price Per Share, Outstanding Beginning Balance
$ 45 
Weighted Average Exercise Price Per Share, Granted
$ 79.57 
Weighted Average Exercise Price Per Share, Exercised
$ 46.4 
Weighted Average Exercise Price Per Share, Forfeited
$ 0 
Weighted Average Exercise Price Per Share, Expired
$ 0 
Weighted Average Exercise Price Per Share, Outstanding Ending Balance
$ 46 
Weighted Average Exercise Price Per Share, Vested and expected to vest
$ 45.84 
Weighted Average Exercise Price Per Share, Exercisable
$ 44.79 
Weighted Average Remaining Contractual Term
 
Weighted Average Remaining Contractual Term, Outstanding
4 years 4 months 6 days 
Weighted Average Remaining Contractual Term, Vested and expected to vest
4 years 1 month 3 days 
Weighted Average Remaining Contractual Term
3 years 4 months 24 days 
Aggregate Intrinsic Value
 
Aggregate Intrinsic Value, Outstanding
$ 299.5 
Aggregate Intrinsic Value, Vested and expected to vest
295.6 
Aggregate Intrinsic Value, Exercisable
$ 252.6 
Summary of Information Relating to Stock Option Exercises (Detail) (Stock Option Exercises, USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Stock Option Exercises
 
 
 
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
 
 
 
Proceeds from stock option exercises
$ 145.5 
$ 163.3 
$ 127.4 
Aggregate intrinsic value
122.3 
112.4 
61.3 
Tax benefit realized upon exercise
$ 43.2 
$ 41.1 
$ 23.4 
Summary of Nonvested Restricted Stock (Detail) (Restricted Stock, USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Restricted Stock
 
Nonvested Restricted Stock
 
Shares, Beginning Balance
3.1 
Shares, Granted
0.9 
Shares, Vested
1.2 
Shares, Forfeited
0.1 
Shares, Ending Balance
2.7 
Nonvested Restricted Stock, Weighted Average Grant Date Fair Value Per Share
 
Weighted Average Grant Date Fair Value Per Share, Beginning Balance
$ 39.3 
Weighted Average Grant Date Fair Value Per Share, Granted
$ 79.69 
Weighted Average Grant Date Fair Value Per Share, Vested
$ 36.19 
Weighted Average Grant Date Fair Value Per Share, Forfeited
$ 50.45 
Weighted Average Grant Date Fair Value Per Share, Ending Balance
$ 53.98 
Summary of Performance Based Restricted Stock (Detail) (Performance-Based Restricted Stock, USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Performance-Based Restricted Stock
 
Performance based restricted stock
 
Shares, Beginning Balance
1.2 
Shares, Granted
0.2 
Shares, Vested
0.5 
Shares, Adjustment to shares expected to vest
   
Shares, Ending Balance
0.9 
Performance based restricted stock, Weighted Average Grant Date Fair Value Per Share
 
Weighted Average Grant Date Fair Value Per Share, Beginning Balance
$ 31.17 
Weighted Average Grant Date Fair Value Per Share, Adjustment
$ 0 
Weighted Average Grant Date Fair Value Per Share, Ending Balance
$ 46.09 
Provision for Income Taxes (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Current:
 
 
 
Federal
$ 252.8 
$ 226.2 
$ 168.1 
State and Local
70.2 
57.6 
33.7 
Non-U.S.
102.1 
96.8 
86.4 
Total current
425.1 
380.6 
288.2 
Deferred:
 
 
 
Federal
0.9 
(13.1)
35.7 
State and Local
4.9 
(5.6)
4.5 
Non-U.S.
24.1 
(8.5)
(4.1)
Total deferred
29.9 
(27.2)
36.1 
Total provision for income taxes
$ 455.0 
$ 353.4 
$ 324.3 
Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income Before Provision for Income Taxes (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Reconciliation Of Statutory Federal Tax Rate [Line Items]
 
 
 
U.S. statutory tax rate
35.00% 
35.00% 
35.00% 
State and local taxes, net of federal tax benefit
360.00% 
290.00% 
240.00% 
Benefit of foreign operations
(740.00%)
(640.00%)
(610.00%)
Legacy tax items
(20.00%)
(60.00%)
(40.00%)
Other
10.00% 
(70.00%)
80.00% 
Effective tax rate
31.10% 
30.20% 
31.70% 
Income tax paid
$ 369.4 
$ 335.7 
$ 293.3 
Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income Before Provision for Income Taxes (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Reconciliation Of Statutory Federal Tax Rate [Line Items]
 
Payments for tax audit settlements
$ 92 
Source of income Before Provision for Income Taxes (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items]
 
 
 
United States
$ 912.6 
$ 836.1 
$ 694.2 
International
548.4 
333.2 
329.8 
Income before provision for income taxes
$ 1,461.0 
$ 1,169.3 
$ 1,024.0 
Components of Deferred Tax Assets and Liabilities (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Deferred tax assets:
 
 
 
 
Uncertain tax positions
$ 220.3 
$ 195.6 
$ 156.6 
$ 205.4 
Total deferred tax assets
348.1 
332.0 
 
 
Deferred tax liabilities:
 
 
 
 
Deferred tax liabilities, net
(17.5)
(4.0)
 
 
Net deferred tax asset
105.3 
147.9 
 
 
Valuation allowance
(6.9)
(8.4)
15.2 
13.9 
Total net deferred tax assets
98.4 
139.5 
 
 
Current
 
 
 
 
Deferred tax assets:
 
 
 
 
Account receivable allowances
7.7 
8.2 
 
 
Accrued compensation and benefits
14.6 
12.8 
 
 
Deferred revenue
6.7 
7.3 
 
 
Legal and professional fees
10.4 
10.9 
 
 
Restructuring
2.3 
3.5 
 
 
Uncertain tax positions
   
7.5 
 
 
Other
3.5 
0.7 
 
 
Total current
45.2 
50.9 
 
 
Deferred tax liabilities:
 
 
 
 
deferred tax liabilities unrealized
14.0 
0 
 
 
Deferred tax Liabilities compensation and benefits
3.0 
0 
 
 
Other liabilities
(1.1)
   
 
 
Deferred tax liabilities, net
(18.1)
   
 
 
Non-Current
 
 
 
 
Deferred tax assets:
 
 
 
 
Deferred revenue
34.2 
33.4 
 
 
Uncertain tax positions
38.3 
26.8 
 
 
Other
5.6 
4.3 
 
 
Accumulated depreciation and amortization
0.9 
2.6 
 
 
Stock-based compensation
62.3 
73.7 
 
 
Benefit plans
108.7 
78.9 
 
 
Deferred rent and construction allowance
30.5 
30.4 
 
 
Foreign net operating loss
7.5 
10.6 
 
 
Self-insured related reserves
14.9 
20.4 
 
 
Total non-current
302.9 
281.1 
 
 
Deferred tax liabilities:
 
 
 
 
Accumulated depreciation and amortization of intangible assets and capitalized software
(204.3)
(153.7)
 
 
Foreign earnings to be repatriated
(3.4)
(3.7)
 
 
Self-insured related income
(16.9)
(24.0)
 
 
Total non-current
(224.7)
(184.1)
 
 
Total deferred tax liabilities
(242.8)
(184.1)
 
 
Other liabilities
$ (0.1)
$ (2.7)
 
 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Tax Disclosure [Line Items]
 
 
 
 
Undistributed earnings of foreign subsidiaries
$ 2,032.0 
 
 
 
Valuation allowance
6.9 
8.4 
(15.2)
(13.9)
Uncertain tax positions
220.3 
195.6 
156.6 
205.4 
Uncertain tax positions if recognized would impact the effective tax rate
157.1 
 
 
 
Expense on UTBs and other tax related liabilities
5.8 
8.6 
(0.4)
 
Accrued interest related to UTPs
$ 20.8 
$ 17.9 
 
 
Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Reconciliation Of Unrecognized Tax Benefits [Line Items]
 
 
 
Uncertain tax positions beginning
$ 195.6 
$ 156.6 
$ 205.4 
Additions for tax positions related to the current year
52.5 
67.8 
49.1 
Additions for tax positions of prior years
8.7 
6.1 
18.9 
Reductions for tax positions of prior years
13.0 
10.1 
20.6 
Settlements with taxing authorities
18.8 
21.4 
91.5 
Lapse of statute of limitations
4.7 
3.4 
4.7 
Uncertain tax positions ending
$ 220.3 
$ 195.6 
$ 156.6 
Summary of Total Indebtedness (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
2012 Facility
   
   
Commercial paper
   
   
Total debt
2,547.3 
2,101.8 
Total long-term debt
2,547.3 
2,101.8 
Series 2005-1 Notes
 
 
Debt Instrument [Line Items]
 
 
Notes Payable
   
310.3 
Series 2007-1 Notes
 
 
Debt Instrument [Line Items]
 
 
Notes Payable
300.0 
300.0 
2010 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Notes Payable
503.8 
497.8 
2012 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Notes Payable
496.9 
496.5 
2013 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Notes Payable
497.5 
497.2 
2014 5Y
 
 
Debt Instrument [Line Items]
 
 
Notes Payable
450.7 
0 
2014 30Y
 
 
Debt Instrument [Line Items]
 
 
Notes Payable
$ 298.4 
$ 0 
Summary of Total Indebtedness (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Fair value of interest rate swap
$ 41.8 
$ 20.5 
Series 2005-1 Notes
 
 
Debt Instrument [Line Items]
 
 
Fair value of interest rate swap
10.3 
13.8 
2010 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Fair value of interest rate swap
5.8 
 
Unamortized discount
2.2 
2.2 
2012 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Unamortized discount
3.1 
3.5 
2013 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Unamortized discount
2.5 
2.8 
2014 5Y
 
 
Debt Instrument [Line Items]
 
 
Fair value of interest rate swap
1.4 
 
Unamortized discount
0.7 
 
2014 30Y
 
 
Debt Instrument [Line Items]
 
 
Unamortized discount
$ 1.6 
 
Indebtedness - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
0 Months Ended 12 Months Ended
Nov. 4, 2011
Dec. 31, 2014
Debt Instrument [Line Items]
 
 
Notes Due Description
 
(i) the fourth anniversary date of the note or (ii) within a time frame set forth in the acquisition agreement relating to the resolution of certain income tax uncertainties pertaining to the transaction 
Debt Extinguish Costs
 
$ 11.0 
Reversals of Accrued Interest Expense on Tax
 
2.0 
Copal
 
 
Debt Instrument [Line Items]
 
 
Non-interest bearing note issued
14.2 
14.2 
Series 2005-1 Notes
 
 
Debt Instrument [Line Items]
 
 
Date of agreement with the lenders for the five year senior unsecured term loan
 
Sep. 30, 2005 
Debt, aggregate principal amount
 
300 
Senior Unsecured Notes, interest
 
498.00% 
Maturity date of Senior Unsecured Notes
 
Sep. 30, 2015 
Series 2007-1 Notes
 
 
Debt Instrument [Line Items]
 
 
Date of agreement with the lenders for the five year senior unsecured term loan
 
Sep. 07, 2007 
Debt, aggregate principal amount
 
300 
Senior Unsecured Notes, interest
 
606.00% 
Maturity date of Senior Unsecured Notes
 
Sep. 07, 2017 
Debt to EBITDA ratio not to exceed at the end of any fiscal quarter
 
The Company must also not permit its Debt/EBITDA ratio to exceed 4.0 to 1.0 at the end of any fiscal quarter. 
Prepayment and purchase feature of Senior Unsecured Notes
 
The Company may prepay the Series 2007-1 Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make Whole Amount. 
Percentage of principal amount being prepaid, plus accrued and unpaid interest
 
10,000.00% 
2010 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Date of agreement with the lenders for the five year senior unsecured term loan
 
Aug. 19, 2010 
Debt, aggregate principal amount
 
500 
Senior Unsecured Notes, interest
 
550.00% 
Maturity date of Senior Unsecured Notes
 
Sep. 01, 2020 
Prepayment and purchase feature of Senior Unsecured Notes
 
The Company may prepay the 2010 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. 
Percentage of principal amount being prepaid, plus accrued and unpaid interest
 
10,000.00% 
Percentage of principal amount, plus accrued and unpaid interest to the date of purchase
 
10,100.00% 
Minimum amount for default on senior notes payable
 
50.00 
Minimum percentage for default on senior notes payable
 
Upon the occurrence and during the continuation of an event of default under the 2010 Indenture, the 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. 
Minimum percentage of aggregate principal amount of all notes
 
2,500.00% 
Aggregate Amount Due At Maturity
 
50 
2012 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Date of agreement with the lenders for the five year senior unsecured term loan
 
Aug. 20, 2012 
Debt, aggregate principal amount
 
500 
Senior Unsecured Notes, interest
 
450.00% 
Maturity date of Senior Unsecured Notes
 
Sep. 01, 2022 
Prepayment and purchase feature of Senior Unsecured Notes
 
The Company may prepay the 2012 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. 
Percentage of principal amount being prepaid, plus accrued and unpaid interest
 
10,000.00% 
Percentage of principal amount, plus accrued and unpaid interest to the date of purchase
 
10,100.00% 
Minimum amount for default on senior notes payable
 
50.00 
Minimum percentage for default on senior notes payable
 
Upon the occurrence and during the continuation of an event of default under the 2012 Indenture, the 2012 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 
Minimum percentage of aggregate principal amount of all notes
 
2,500.00% 
Aggregate Amount Due At Maturity
 
50 
2013 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Debt, aggregate principal amount
 
500 
Senior Unsecured Notes, interest
 
487.50% 
Maturity date of Senior Unsecured Notes
 
Sep. 01, 2024 
Prepayment and purchase feature of Senior Unsecured Notes
 
The Company may prepay the 2013 Senior Notes, in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount 
Percentage of principal amount being prepaid, plus accrued and unpaid interest
 
10,000.00% 
Percentage of principal amount, plus accrued and unpaid interest to the date of purchase
 
10,100.00% 
Minimum amount for default on senior notes payable
 
50.00 
Minimum percentage for default on senior notes payable
 
Upon the occurrence and during the continuation of an event of default under the 2013 Indenture, the 2013 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. 
Minimum percentage of aggregate principal amount of all notes
 
2,500.00% 
Alternate Prepayment Percentage
 
10,000.00% 
Aggregate Amount Due At Maturity
 
50 
2014 5Y
 
 
Debt Instrument [Line Items]
 
 
Debt, aggregate principal amount
 
450 
Senior Unsecured Notes, interest
 
275.00% 
Prepayment and purchase feature of Senior Unsecured Notes
 
The Company may prepay the 2014 Senior Notes (5-year), in whole or in part, at any time at a price prior to June 15, 2019, equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. 
Percentage of principal amount being prepaid, plus accrued and unpaid interest
 
10,000.00% 
Percentage of principal amount, plus accrued and unpaid interest to the date of purchase
 
10,100.00% 
Minimum amount for default on senior notes payable
 
50.00 
Minimum percentage for default on senior notes payable
 
Upon the occurrence and during the continuation of an event of default under the 2014 Indenture, the 2014 Senior Notes (5-year) 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. 
Minimum percentage of aggregate principal amount of all notes
 
2,500.00% 
Alternate Prepayment Percentage
 
10,000.00% 
Aggregate Amount Due At Maturity
 
50 
2014 30Y
 
 
Debt Instrument [Line Items]
 
 
Debt, aggregate principal amount
 
300 
Senior Unsecured Notes, interest
 
525.00% 
Prepayment and purchase feature of Senior Unsecured Notes
 
. The Company may prepay the 2014 Senior Notes (30-year), in whole or in part, at any time at a price equal to 100% of the principal amount being prepaid, plus accrued and unpaid interest and a Make-Whole Amount. 
Percentage of principal amount being prepaid, plus accrued and unpaid interest
 
10,000.00% 
Percentage of principal amount, plus accrued and unpaid interest to the date of purchase
 
10,100.00% 
Minimum amount for default on senior notes payable
 
50.00 
Minimum percentage for default on senior notes payable
 
Upon the occurrence and during the continuation of an event of default under the 2014 Indenture, the 2014 Senior Notes (30-year) 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. 
Minimum percentage of aggregate principal amount of all notes
 
2,500.00% 
Aggregate Amount Due At Maturity
 
$ 50 
2012 Facility
 
 
Debt Instrument [Line Items]
 
 
Quarterly facility fees
 
can range from 10 basis points of the facility amount to 17.5 basis points 
2008 Term Loan
 
 
Debt Instrument [Line Items]
 
 
Date of agreement with the lenders for the five year senior unsecured term loan
 
May 07, 2008 
Principal Payments Due on Long-Term Borrowings (Detail) (USD $)
Dec. 31, 2014
Debt Instrument [Line Items]
 
2015
   
2016
   
2017
300,000,000 
2018
   
2019
450,000,000 
Thereafter
1,800,000,000 
Series 2007-1 Notes
 
Debt Instrument [Line Items]
 
2015
   
2016
   
2017
300,000,000 
2018
   
2019
   
Thereafter
0 
2010 Senior Notes
 
Debt Instrument [Line Items]
 
2015
   
2016
   
2017
   
2018
   
2019
   
Thereafter
500,000,000 
2012 Senior Notes
 
Debt Instrument [Line Items]
 
2015
   
2016
   
2017
   
2018
   
2019
   
Thereafter
500,000,000 
2013 Senior Notes
 
Debt Instrument [Line Items]
 
2015
   
2016
   
2017
   
2018
   
2019
   
Thereafter
500,000,000 
2014 5Y
 
Debt Instrument [Line Items]
 
2015
0 
2016
0 
2017
0 
2018
0 
2019
450,000,000 
Thereafter
0 
2014 30Y
 
Debt Instrument [Line Items]
 
2015
0 
2016
0 
2017
0 
2018
0 
2019
0 
Thereafter
$ 300,000,000 
Summary of Components of Interest as Presented in Consolidated Statements of Operations (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
 
Income
$ 6.7 
$ 5.5 
$ 5.2 
Expense on borrowings
(118.4)
(92.3)
(73.8)
UTBs and other tax related interest
(5.8)
(8.6)
0.4 
Legacy Tax
0.7 
3.6 
4.4 
Total
(116.8)
(91.8)
(63.8)
Interest paid
$ 113.7 
$ 81.9 
$ 94.4 
Fair Value and Carrying Value of Long-Term Debt (Detail) (USD $)
Dec. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Carrying Amount
$ 2,547,300,000 
$ 2,101,800,000 
Estimated Fair Value
2,772,700,000 
2,188,700,000 
Series 2005-1 Notes
 
 
Debt Instrument [Line Items]
 
 
Carrying Amount
   
310,300,000 
Estimated Fair Value
   
319,200,000 
Series 2007-1 Notes
 
 
Debt Instrument [Line Items]
 
 
Carrying Amount
300,000,000 
300,000,000 
Estimated Fair Value
334,600,000 
334,700,000 
2010 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Carrying Amount
503,800,000 
497,800,000 
Estimated Fair Value
564,400,000 
536,600,000 
2012 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Carrying Amount
496,900,000 
496,500,000 
Estimated Fair Value
537,100,000 
497,000,000 
2013 Senior Notes
 
 
Debt Instrument [Line Items]
 
 
Carrying Amount
497,500,000 
497.2 
Estimated Fair Value
548,400,000 
501.2 
2014 5Y
 
 
Debt Instrument [Line Items]
 
 
Carrying Amount
450,700,000 
0 
Estimated Fair Value
454,300,000 
0 
2014 30Y
 
 
Debt Instrument [Line Items]
 
 
Carrying Amount
298,400,000 
0 
Estimated Fair Value
$ 333,900,000 
$ 0 
Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Derivatives assets
$ 41.8 
$ 20.5 
Derivatives designated as accounting hedges
 
 
Debt Instrument [Line Items]
 
 
Derivatives assets
$ 36.2 
$ 19.6 
Capital Stock - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 3 Months Ended 12 Months Ended
Dec. 17, 2014
Feb. 12, 2014
Feb. 13, 2013
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Schedule Of Capital Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
All classes of stock, shares authorized
 
 
 
1,020,000,000 
 
 
 
 
 
 
 
 
 
 
 
1,020,000,000 
 
 
Shares of all classes of stock, par value
 
 
 
$ 0.01 
 
 
 
 
 
 
 
 
 
 
 
$ 0.01 
 
 
Preferred stock, shares authorized
 
 
 
10,000,000 
 
 
 
10,000,000 
 
 
 
 
 
 
 
10,000,000 
10,000,000 
 
Amount authorized to be repurchased
$ 1,000.0 
$ 1,000.0 
$ 1,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per share
$ 0.34 
 
 
$ 0.62 
$ 0.28 
$ 0.28 
$ 0 
$ 0.53 
$ 0.25 
$ 0.2 
$ 0 
$ 0.16 
$ 0.16 
$ 0 
$ 0.36 
$ 1.18 
$ 0.98 
$ 0.68 
Dividends declaration date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec. 16, 2014 
 
 
Dividends payable date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar. 10, 2015 
 
 
Dividends payable record date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feb. 20, 2015 
 
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule Of Capital Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, shares authorized
 
 
 
1,000,000,000 
 
 
 
1,000,000,000 
 
 
 
 
 
 
 
1,000,000,000 
1,000,000,000 
 
Series common stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule Of Capital Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, shares authorized
 
 
 
10,000,000 
 
 
 
10,000,000 
 
 
 
 
 
 
 
10,000,000 
10,000,000 
 
Lease Commitments - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Lease Commitments And Contingencies [Line Items]
 
 
 
Rent and amortization expenses under operating leases
$ 83.9 
$ 74.2 
$ 75.8 
Total base rent
837.5 
 
 
Capital lease future minimum sublease rentals
$ 3.7 
 
 
Operating Lease, Minimum Rent for Payment (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Lease Commitments And Contingencies [Line Items]
 
2015
$ 93.4 
2016
80.9 
2017
78.3 
2018
72.7 
2019
64.9 
Thereafter
447.3 
Total minimum lease payments
$ 837.5 
Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Mar. 31, 2014
Mar. 31, 2014
Abu Dhabi Commercial Bank Litigation [Member]
Dec. 31, 2014
Abu Dhabi Commercial Bank Litigation [Member]
Dec. 31, 2014
Class Action [Member]
Dec. 31, 2014
CalPERS [Member]
litigation
Dec. 31, 2014
CalPERS [Member]
Dec. 31, 2014
CalPERS [Member]
damages sought for all plaintiffs [Member]
Dec. 31, 2014
Pursuit Partners LLC [Member]
damages sought for all plaintiffs [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number Of Plaintiffs Dismissed By Court
 
 
 
 
1 
4 
 
 
 
 
 
Number of plaintiffs
 
 
 
 
 
11 
2 
 
 
 
 
Number of plaintiffs granted
 
 
 
 
 
2 
 
 
 
 
 
Number of plaintiffs filed motions for reconsideration
 
 
 
 
 
3 
 
 
 
 
 
Total compensatory damages value
 
 
 
 
 
$ 76.0 
 
 
 
$ 1,300.0 
$ 44.0 
Number Of Plaintiffs Ordered To Trial
 
 
 
14 
 
 
 
 
 
 
 
Legacy Tax Liabilities
6.4 
19.2 
12.8 
 
 
 
 
 
 
 
 
Unrealized Losses Claimed by the Plaintiff
 
 
 
 
 
 
 
 
779 
 
 
Payment Regarding Calpers Litigation Matter
 
 
 
 
 
 
 
$ 125.0 
 
 
 
Financial Information by Segment (Detail) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Sep. 30, 2012
Sep. 30, 2012
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 877,500,000 
$ 816,100,000 
$ 873,500,000 
$ 767,200,000 
$ 779,200,000 
$ 705,500,000 
$ 756,000,000 
$ 731,800,000 
 
 
$ 3,334,300,000 
$ 2,972,500,000 
$ 2,730,300,000 
Operating, SG&A
 
 
 
 
 
 
 
 
 
 
1,799,600,000 
1,644,500,000 
1,547,200,000 
Adjusted Operating Income
 
 
 
 
 
 
 
 
 
 
1,534,700,000 
1,328,000,000 
1,183,100,000 
Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
95,600,000 
93,400,000 
93,500,000 
Goodwill impairment charge
 
 
 
 
 
 
 
 
1,000,000 
1,000,000 
   
   
12,200,000 
Operating income
344,700,000 
349,700,000 
411,700,000 
333,000,000 
311,900,000 
291,500,000 
350,800,000 
280,400,000 
 
 
1,439,100,000 
1,234,600,000 
1,077,400,000 
MIS
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
 
 
2,353,400,000 
2,150,200,000 
1,968,800,000 
Operating, SG&A
 
 
 
 
 
 
 
 
 
 
1,076,200,000 
1,034,000,000 
976,300,000 
Adjusted Operating Income
 
 
 
 
 
 
 
 
 
 
1,277,200,000 
1,116,200,000 
992,500,000 
Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
49,400,000 
46,700,000 
44,400,000 
Goodwill impairment charge
 
 
 
 
 
 
 
 
 
 
   
   
0 
Operating income
 
 
 
 
 
 
 
 
 
 
1,227,800,000 
1,069,500,000 
948,100,000 
MA
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
 
 
1,081,800,000 
913,300,000 
844,900,000 
Operating, SG&A
 
 
 
 
 
 
 
 
 
 
824,300,000 
701,500,000 
654,300,000 
Adjusted Operating Income
 
 
 
 
 
 
 
 
 
 
257,500,000 
211,800,000 
190,600,000 
Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
46,200,000 
46,700,000 
49,100,000 
Goodwill impairment charge
 
 
 
 
 
 
 
 
 
 
   
   
12,200,000 
Operating income
 
 
 
 
 
 
 
 
 
 
211,300,000 
165,100,000 
129,300,000 
Eliminations
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
 
 
(100,900,000)
(91,000,000)
(83,400,000)
Operating, SG&A
 
 
 
 
 
 
 
 
 
 
(100,900,000)
(91,000,000)
(83,400,000)
Adjusted Operating Income
 
 
 
 
 
 
 
 
 
 
   
   
   
Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
   
   
   
Goodwill impairment charge
 
 
 
 
 
 
 
 
 
 
   
   
0 
Operating income
 
 
 
 
 
 
 
 
 
 
   
   
   
Revenue by Line of Business (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 877.5 
$ 816.1 
$ 873.5 
$ 767.2 
$ 779.2 
$ 705.5 
$ 756.0 
$ 731.8 
$ 3,334.3 
$ 2,972.5 
$ 2,730.3 
MIS
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
2,353.4 
2,150.2 
1,968.8 
MIS |
Corporate finance (CFG)
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,109.3 
996.8 
857.6 
MIS |
Structured Finance (SFG)
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
426.5 
382.5 
381.0 
MIS |
Financial institutions (FIG)
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
354.7 
338.8 
325.5 
MIS |
Public, Project And Infrastructure Finance (PPIF)
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
357.3 
341.3 
322.7 
MIS |
External Revenues [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
2,265.8 
2,071.6 
1,897.3 
MIS |
MIS Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
18.0 
12.2 
10.5 
MIS |
Intersegment Elimination [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
87.6 
78.6 
71.5 
MA
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,081.8 
913.3 
844.9 
MA |
Research, Data And Analytics (RD&A)
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
571.8 
519.8 
482.7 
MA |
Enterprise Risk Solutions (ERS)
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
328.5 
262.5 
242.6 
MA |
Professional Services (PS)
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
168.2 
118.6 
107.7 
MA |
External Revenues [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,068.5 
900.9 
833.0 
MA |
Intersegment Elimination [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
13.3 
12.4 
11.9 
Eliminations
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
$ (100.9)
$ (91.0)
$ (83.4)
Consolidated Revenue Information by Geographic Area (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 10, 2013
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 877.5 
$ 816.1 
$ 873.5 
$ 767.2 
$ 779.2 
$ 705.5 
$ 756.0 
$ 731.8 
$ 3,334.3 
$ 2,972.5 
$ 2,730.3 
 
Long-lived assets at December 31
1,668.9 
 
 
 
1,165.5 
 
 
 
1,668.9 
1,165.5 
1,170.7 
1,165.5 
United States
 
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,814.5 
1,626.5 
1,472.4 
 
Long-lived assets at December 31
657.6 
 
 
 
552.3 
 
 
 
657.6 
552.3 
498.4 
552.3 
International
 
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,519.8 
1,346.0 
1,257.9 
 
Long-lived assets at December 31
1,011.3 
 
 
 
613.2 
 
 
 
1,011.3 
613.2 
672.3 
613.2 
International |
EMEA
 
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
952.8 
862.8 
800.2 
 
International |
Americas [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
228.7 
197.1 
191.2 
 
International |
Asia Pacific [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
$ 338.3 
$ 286.1 
$ 266.5 
 
Total Assets by Segment (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
Total Assets
$ 4,669.0 
$ 4,395.1 
Summary of Activity for Both Allowances (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2014
Accounts receivable allowance
Dec. 31, 2013
Accounts receivable allowance
Dec. 31, 2012
Accounts receivable allowance
Dec. 31, 2014
Deferred tax assets - valuation allowance
Dec. 31, 2013
Deferred tax assets - valuation allowance
Dec. 31, 2012
Deferred tax assets - valuation allowance
Valuation And Qualifying Accounts Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
Balance at Beginning of the Year accounts receivable allowance
$ 29.4 
$ 28.9 
$ (29.1)
$ (28.0)
 
 
 
 
 
 
Additions
 
 
 
 
(54.9)
(44.5)
(44.3)
(0.1)
(0.1)
(3.1)
Write-offs and Adjustments
 
 
 
 
(54.4)
(44.7)
(43.2)
(1.6)
(6.9)
(1.8)
Balance at End of the Year accounts receivable allowance
29.4 
28.9 
(29.1)
(28.0)
 
 
 
 
 
 
Balance at beginning of the year DTA valuation allowance
6.9 
8.4 
(15.2)
(13.9)
 
 
 
 
 
 
Balance at end of the year DTA valuation allowance
$ 6.9 
$ 8.4 
$ (15.2)
$ (13.9)
 
 
 
 
 
 
Components of Other Non-Operating Income (Expense), Net (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Component Of Other Expense Income Nonoperating [Line Items]
 
 
 
FX gain (loss)
$ 20.3 
    
$ (5.9)
Legacy Tax
6.4 
19.2 
12.8 
Joint venture income
9.6 
8.8 
4.8 
Other
(0.4)
(1.5)
(1.3)
Other non-operating income (expense), net
$ 35.9 
$ 26.5 
$ 10.4 
Quarterly Financial Data (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Quarterly Financial Data [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 877.5 
$ 816.1 
$ 873.5 
$ 767.2 
$ 779.2 
$ 705.5 
$ 756.0 
$ 731.8 
$ 3,334.3 
$ 2,972.5 
$ 2,730.3 
Operating Income
344.7 
349.7 
411.7 
333.0 
311.9 
291.5 
350.8 
280.4 
1,439.1 
1,234.6 
1,077.4 
Net income attributable to Moody's
$ 236.3 
$ 215.2 
$ 319.2 
$ 218.0 
$ 206.7 
$ 183.9 
$ 225.5 
$ 188.4 
$ 988.7 
$ 804.5 
$ 690.0 
Basic
$ 1.14 
$ 1.02 
$ 1.51 
$ 1.02 
$ 0.96 
$ 0.84 
$ 1.01 
$ 0.84 
$ 4.69 
$ 3.67 
$ 3.09 
Diluted
$ 1.12 
$ 1 
$ 1.48 
$ 1 
$ 0.94 
$ 0.83 
$ 1 
$ 0.83 
$ 4.61 
$ 3.6 
$ 3.05 
Quarterly Financial Data - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2012
Sep. 30, 2012
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Quarterly Financial Data [Line Items]
 
 
 
 
 
Benefit to net income related to the resolution of legacy tax matters
 
 
$ 21,300,000 
 
 
Goodwill impairment charge
$ 1,000,000 
$ 1,000,000 
   
   
$ 12,200,000 
Per Share impact of Q1 2013 Litigation Settlement
 
 
$ 0.14 
 
 
Other Balance Sheet and Statement of Operations Information Additional Detail (Detail)
Dec. 31, 2014
Disclosure Additional Balance Sheet Information And Statement Of Operations Additional Information [Abstract]
 
Remaining ownership interest
33.00% 
Other Non-Operating Interest (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Component Of Other Expense Income Nonoperating [Line Items]
 
 
 
Foreign Currency Transaction Gain Loss Before Tax
$ 20.3 
    
$ (5.9)
Income Loss From Joint Venture
9.6 
8.8 
4.8 
Other Non Operating Income Expense Other
(0.4)
(1.5)
(1.3)
Other non-operating income (expense), net
35.9 
26.5 
10.4 
Legacy Tax Liabilities
$ 6.4 
$ 19.2 
$ 12.8 
COMPREHENSIVE INCOME RECLASSIFICATION
Comprehensiveincome

NOTE 11 COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

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

Year Ended December 31,Affected line in the Consolidated Statements of Operation
20142013
Losses on foreign translation adjustments
Liquidation of foreign subsidiary$-$(1.4)Other non-operating income (expense), net
Loss on foreign currency translation adjustment pursuant to ICRA step-acquisition(4.4)-ICRA Gain
Total losses on foreign translation adjustments(4.4)(1.4)
Losses on cash flow hedges
Interest rate swap derivative contracts-(1.2)Interest income (expense), net
Income tax effect of item above-0.5Provision for income taxes
Losses on cash flow hedges-(0.7)
Gains on available for sale securities
Gain on sale of available for sale securities0.1-Other non-operating income (expense), net
Total gains on available for sale securities0.1-
Losses on pension and other retirement benefits
Amortization of actuarial losses and prior service costs included in net income(4.7)(7.6)Operating expense
Amortization of actuarial losses and prior service costs included in net income(2.6)(4.3)SG&A expense
Total before income taxes(7.3)(11.9)
Income tax effect of item above2.84.9Provision for income tax
Total losses on pension and other retirement benefits(4.5)(7.0)
Total losses included in Net Income attributable to reclassifications out of AOCI$(8.8)$(9.1)

Changes in AOCI by component (net of tax) for the period ended December 31, 2014 and 2013:

Year Ended December 31, 2014
Gains/(losses) on Net Investment HedgesPension and Other Retirement BenefitsForeign Currency Translation AdjustmentsGains on Available for Sale SecuritiesTotal
Balance December 31, 2013$1.5$(53.2)$(2.9)$-$(54.6)
Other comprehensive income/(loss) before reclassification19.4(56.7)(153.1)1.0(189.4)
Amounts reclassified from AOCI-4.54.4(0.1)8.8
Other comprehensive income/(loss)19.4(52.2)(148.7)0.9(180.6)
Balance December 31, 2014$20.9$(105.4)$(151.6)$0.9$(235.2)
Year Ended December 31, 2013
Gains/(losses) on Cash Flow and Net Investment HedgesPension and Other Retirement BenefitsForeign Currency Translation AdjustmentsGains on Available for Sale SecuritiesTotal
Balance December 31, 2012$(2.9)$(90.1)$10.9$-$(82.1)
Other comprehensive income/(loss) before reclassification3.729.9(15.2)-18.4
Amounts reclassified from AOCI0.77.01.4-9.1
Other comprehensive income/(loss)4.436.9(13.8)-27.5
Balance December 31, 2013$1.5$(53.2)$(2.9)$-$(54.6)
COMPREHENSIVE INCOME RECLASSIFICATION (Tables)
AOCI Reclassification [Text Block] 
Year Ended December 31,Affected line in the Consolidated Statements of Operation
20142013
Losses on foreign translation adjustments
Liquidation of foreign subsidiary$-$(1.4)Other non-operating income (expense), net
Loss on foreign currency translation adjustment pursuant to ICRA step-acquisition(4.4)-ICRA Gain
Total losses on foreign translation adjustments(4.4)(1.4)
Losses on cash flow hedges
Interest rate swap derivative contracts-(1.2)Interest income (expense), net
Income tax effect of item above-0.5Provision for income taxes
Losses on cash flow hedges-(0.7)
Gains on available for sale securities
Gain on sale of available for sale securities0.1-Other non-operating income (expense), net
Total gains on available for sale securities0.1-
Losses on pension and other retirement benefits
Amortization of actuarial losses and prior service costs included in net income(4.7)(7.6)Operating expense
Amortization of actuarial losses and prior service costs included in net income(2.6)(4.3)SG&A expense
Total before income taxes(7.3)(11.9)
Income tax effect of item above2.84.9Provision for income tax
Total losses on pension and other retirement benefits(4.5)(7.0)
Total losses included in Net Income attributable to reclassifications out of AOCI$(8.8)$(9.1)
Schedule Of Accumulated Other Comprehensive Income Loss Table [Text Block] 
Year Ended December 31, 2014
Gains/(losses) on Net Investment HedgesPension and Other Retirement BenefitsForeign Currency Translation AdjustmentsGains on Available for Sale SecuritiesTotal
Balance December 31, 2013$1.5$(53.2)$(2.9)$-$(54.6)
Other comprehensive income/(loss) before reclassification19.4(56.7)(153.1)1.0(189.4)
Amounts reclassified from AOCI-4.54.4(0.1)8.8
Other comprehensive income/(loss)19.4(52.2)(148.7)0.9(180.6)
Balance December 31, 2014$20.9$(105.4)$(151.6)$0.9$(235.2)
Year Ended December 31, 2013
Gains/(losses) on Cash Flow and Net Investment HedgesPension and Other Retirement BenefitsForeign Currency Translation AdjustmentsGains on Available for Sale SecuritiesTotal
Balance December 31, 2012$(2.9)$(90.1)$10.9$-$(82.1)
Other comprehensive income/(loss) before reclassification3.729.9(15.2)-18.4
Amounts reclassified from AOCI0.77.01.4-9.1
Other comprehensive income/(loss)4.436.9(13.8)-27.5
Balance December 31, 2013$1.5$(53.2)$(2.9)$-$(54.6)
Reclassification out of AOCI (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax
$ 4.4 
$ 1.4 
$ 0 
Foreign Currency Translation Adjustment Reclassification Of Losses To Net Income Pursuant To Icra Step Acquisition Net Of Tax
(4.4)
(1.4)
 
Cash flow and net investment hedges, net of tax:
 
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax
0 
1.2 
4.1 
Other Comprehensive Income Loss Reclassification Adjustment From AOCI On Derivatives Tax
0 
0.5 
1.7 
Other Comprehensive Income Loss Reclassification Adjustment On Derivatives Included In Net Income Net Of Tax
0 
0.7 
2.4 
Pension and Other Retirement Benefits, net of tax:
 
 
 
Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Net Unamortized Gain Loss Arising During Period Before Tax
7.3 
11.9 
10.0 
Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
(2.8)
(4.9)
(4.1)
Amortization of actuarial losses and prior service costs included in net income
4.5 
7.0 
5.9 
Total other comprehensive income (loss)-Net of Tax
(180.6)
27.5 
26.4 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax
4.4 
1.4 
0 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax
0 
0 
0 
Total Reclassifications
4.4 
1.4 
0 
Gains on available for sale securities, net of tax:
 
 
 
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Net Of Tax
(0.1)
0 
0 
Selling, General and Administrative Expenses [Member]
 
 
 
Pension and Other Retirement Benefits, net of tax:
 
 
 
Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Net Unamortized Gain Loss Arising During Period Before Tax
(4.7)
(4.3)
 
Operating Expense [Member]
 
 
 
Pension and Other Retirement Benefits, net of tax:
 
 
 
Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Net Unamortized Gain Loss Arising During Period Before Tax
(2.6)
(7.6)
 
Interest Expense [Member]
 
 
 
Cash flow and net investment hedges, net of tax:
 
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax
   
(1.2)
 
Other Nonoperating Income Expense [Member]
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax
0 
(1.4)
 
Pension and Other Retirement Benefits, net of tax:
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax
0 
(1.4)
 
Total Reclassifications
0 
(1.4)
 
IncomeTaxMember [Member]
 
 
 
Cash flow and net investment hedges, net of tax:
 
 
 
Other Comprehensive Income Loss Reclassification Adjustment From AOCI On Derivatives Tax
   
0.5 
 
ICRA Gain [Member]
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax
(4.4)
0 
 
Pension and Other Retirement Benefits, net of tax:
 
 
 
Total Reclassifications
$ (4.4)
$ 0 
 
Changes in AOCI (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Beginning Balance
$ (54.6)
$ (82.1)
 
Net unrealized gain (losses) on cash flow and net investment hedges-Net of Tax
19.4 
3.7 
(2.3)
Reclassification of losses included in net income - Net of Tax
0 
0.7 
2.4 
Amortization of actuarial losses and prior service costs included in net income
4.5 
7.0 
5.9 
Net actuarial losses and prior service costs
(56.7)
29.9 
(14.8)
Foreign currency translation adjustments-Net of Tax
(153.1)
(15.2)
35.2 
Foreign currency translation adjustments - reclassification of losses included in net income due to liquidation of a foreign subsidiary Net of Tax
4.4 
1.4 
0 
Unrealized Gains On Available For Sale Securities
1.0 
0 
0 
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Sale Of Securities Net Of Tax
(0.1)
0 
0 
Ending Balance
(235.2)
(54.6)
(82.1)
Gains Losses On Cash Flow and Net Investment Hedges [Member]
 
 
 
Ending Balance
20.9 
1.5 
(2.9)
Pension and Other Post Retirements benefit costs
 
 
 
Ending Balance
(105.4)
(53.2)
(90.1)
foreign currency
 
 
 
Ending Balance
(151.6)
(2.9)
10.9 
available for sale [Domain]
 
 
 
Ending Balance
$ 0.9 
$ 0 
$ 0 
Segment Information - Additional Information (Detail)
12 Months Ended
Dec. 31, 2014
DisclosureSegmentInformationAdditionalInformation[Abstract]
 
Number of reportable segments
2 
Number of operating segments
3 
Cash Equivalent and investments (detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Money Market Mutual Funds
 
 
Schedule of Available for sale Securities
 
 
Cost
$ 149.7 
$ 212.3 
Gross Unrealized Gain
0 
0 
certificate of deposit
 
 
Schedule of Available for sale Securities
 
 
Cost
842.5 
911.8 
Gross Unrealized Gain
0 
0 
fixed maturity and open ended mutual funds [Member]
 
 
Schedule of Available for sale Securities
 
 
Cost
47.1 
 
Gross Unrealized Gain
0.9 
 
Cash And Cash Equivalents [Member] |
Money Market Mutual Funds
 
 
Schedule of Available for sale Securities
 
 
Fair Value
149.7 
212.3 
Cash And Cash Equivalents [Member] |
certificate of deposit
 
 
Schedule of Available for sale Securities
 
 
Fair Value
380.1 
725.0 
Cash And Cash Equivalents [Member] |
fixed maturity and open ended mutual funds [Member]
 
 
Schedule of Available for sale Securities
 
 
Fair Value
0 
 
Other Assets [Member] |
Money Market Mutual Funds
 
 
Schedule of Available for sale Securities
 
 
Fair Value
0 
0 
Other Assets [Member] |
certificate of deposit
 
 
Schedule of Available for sale Securities
 
 
Fair Value
4.3 
0 
Other Assets [Member] |
fixed maturity and open ended mutual funds [Member]
 
 
Schedule of Available for sale Securities
 
 
Fair Value
$ 48.0 
 
CASH EQUIVALENT AND INVESTMENTS (table)
Cash Equivalent And Investments
As of December 31, 2014
Balance sheet location
CostGross Unrealized GainsFair ValueCash and cash equivalentsShort-term investmentsOther assets
Money market mutual funds$149.7$-$149.7$ 149.7 $-$-
Certificates of deposit and money market deposit accounts (1)$ 842.5 $ - $ 842.5 $ 380.1 $458.1$4.3
Fixed maturity and open ended mutual funds (2)$ 47.1 $ 0.9 $ 48.0 $ - $-$48.0
As of December 31, 2013
Balance sheet location
CostGross Unrealized GainsFair ValueCash and cash equivalentsShort-term investmentsOther assets
Money market mutual funds$212.3$-$212.3$ 212.3 $-$-
Certificates of deposit and money market deposit accounts (1)$ 911.8 $ - $ 911.8 $ 725.0 $186.8$-
(1) 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 ten months at December 31, 2014 and one month to nine months at December 31, 2013. Time deposits with a maturity of less than 90 days at time of purchase are classified as cash and cash equivalents.
(2) Consists of investments in fixed maturity mutual funds and open-ended mutual funds held by ICRA. The remaining contractual maturities for the fixed maturity instruments range from two months to 23 months at December 31, 2014.
Share Repurchase Programs (detail) (USD $)
In Millions, unless otherwise specified
0 Months Ended 12 Months Ended
Dec. 17, 2014
Feb. 12, 2014
Feb. 13, 2013
Dec. 31, 2014
February 12, 2013 [Member]
Dec. 31, 2014
February 11, 2014 [Member]
Dec. 31, 2014
December 16, 2014 [Member]
Schedule Of Share Repurchase Programs [Line Items]
 
 
 
 
 
 
Stock Repurchase Program Number Of Shares Authorized To Be Repurchased
$ 1,000.0 
$ 1,000.0 
$ 1,000.0 
 
 
 
Stock Repurchase Program Remaining Authorized Repurchase Amount
 
 
 
$ 0 
$ 563.5 
$ 1,000.0