-- Reported 4Q09 EPS of $0.43 up 16% from 4Q08
-- Reported FY09 EPS of $1.69 down 10% from FY08
-- 4Q09 revenue up 20%; FY09 revenue up 2%
-- Expected FY 2010 EPS between $1.75 and $1.85
NEW YORK--(BUSINESS WIRE)--
Moody's Corporation (NYSE: MCO) today announced results for the fourth
quarter and full-year 2009.
Summary of Results for Fourth Quarter 2009
Moody's reported revenue of $485.8 million for the three months ended
December 31, 2009, an increase of 20% from $403.7 million for the fourth
quarter of 2008. Operating income for the quarter was $178.9 million, a
43% increase from $125.4 million for the same period last year. Diluted
earnings per share of $0.43 for the fourth quarter of 2009 included a
benefit of $0.01 related to previously announced restructuring
activities. Excluding restructuring adjustments in both periods, diluted
earnings per share of $0.42 for the quarter increased 14% from $0.37 in
the prior-year period.
Summary of Results for Full-Year 2009
Moody's Corporation revenue for the full-year 2009 totaled $1,797.2
million, an increase of 2% from $1,755.4 million for 2008. U.S. revenue
of $920.8 million increased 1%, while non-U.S. revenue of $876.4 million
increased 4% from the prior year. Operating income of $687.5 million
declined 8% from $748.2 million for the full-year 2008, and the
operating margin was 38.3% for the full-year 2009. Excluding the
unfavorable impact from foreign currency translation, revenue increased
4% from the prior-year period. The impact of foreign currency
translation on operating income was negligible. Diluted earnings per
share of $1.69 for the full-year 2009 included a net charge of $0.01,
reflecting costs related to previously announced restructuring plans
partially offset by a benefit from certain legacy tax matters. Excluding
these items in both years, diluted earnings per share of $1.70 for the
full-year 2009 decreased 7% from $1.82 for the full-year 2008.
"Moody's full-year results reflected gradual improvement of credit
markets throughout 2009. Strength in corporate debt issuance and growth
from Moody's Analytics provided a slight increase in revenue from the
prior year, but activity was limited in other areas of the markets,"
said Raymond McDaniel, Chairman and Chief Executive Officer of
Moody's. "We anticipate continuing recovery for 2010, but also expect
market conditions to remain challenging until economic improvement
across key markets is sustained. With this outlook, we are projecting a
stronger revenue increase and a return to earnings growth for 2010, with
ongoing expense management to support business initiatives and
regulatory and compliance efforts."
Fourth Quarter Revenue
For Moody's Corporation overall, global revenue of $485.8 million
increased 20% from the fourth quarter of 2008. Excluding the favorable
impact of foreign currency translation, revenue increased 17 percent.
U.S. revenue of $245.1 million for the fourth quarter of 2009 increased
25% from the fourth quarter of 2008, while revenue generated outside the
U.S. of $240.7 million increased 16% from the prior-year period. Revenue
generated outside the U.S. represented 50% of Moody's total revenue for
the quarter, down from 52% in the year-ago period.
Global revenue for Moody's Investors Service ("MIS") for the fourth
quarter of 2009 was $331.9 million, an increase of 31% from the
prior-year period. Excluding the favorable impact of foreign currency
translation, revenue grew 26 percent. U.S. revenue of $179.1 million for
the fourth quarter of 2009 increased 42% from the fourth quarter of
2008. Outside the U.S., revenue of $152.8 million increased 19% from the
year-ago period.
Within MIS, global corporate finance revenue of $115.2 million in the
fourth quarter of 2009 increased 99% from the same quarter of 2008. U.S.
corporate finance revenue increased 106% from the fourth quarter of
2008, while outside the U.S., revenue increased 90% from the prior-year
period. Growth was primarily driven by activity in the high-yield bond
market.
Global structured finance revenue totaled $78.7 million for the fourth
quarter of 2009, a decrease of 14% from a year earlier. U.S. structured
finance revenue increased 5% from the year-ago period, reflecting
increased issuance activity from asset-backed securities and commercial
real-estate finance. Non-U.S. structured finance revenue decreased 25%,
driven by revenue declines across all asset classes as improved credit
market conditions slowed use of securitization for central bank
supported programs.
Global financial institutions revenue of $72.0 million in the fourth
quarter of 2009 increased 27% compared to the same quarter of 2008, due
to gains from the banking sector. U.S. financial institutions revenue
increased 18%, while non-U.S. revenue increased 35 percent.
Global public, project and infrastructure finance revenue was $66.0
million for the fourth quarter of 2009, an increase of 36% from the
fourth quarter of 2008. U.S. revenue increased 36% from the prior-year
period, primarily driven by stimulus plan-related public finance
issuance. Non-U.S. revenue increased 35% with strong issuance in
European infrastructure finance.
Global revenue for Moody's Analytics ("MA") for the fourth quarter of
2009 reached $153.9 million, up 3% from the same quarter of 2008.
Foreign currency translation did not materially impact revenue.
Reflecting a realignment of revenue by product grouping in both periods,
revenue from subscription-based research, data and analytics of $106.0
million declined by 1% from the prior-year period; risk management
software revenue of $42.3 million grew 21%; and professional services
revenue of $5.6 million decreased 26% from the prior-year period. A
reconciliation table for MA revenue is available at the end of this
press release.
In the U.S., MA revenue of $66.0 million for the fourth quarter of 2009
declined 5% from the prior-year period, reflecting the effects of
customer attrition due to financial market disruption in late 2008 and
early 2009. Outside the U.S., revenue increased 10% over the prior-year
period to $87.9 million, primarily due to growth in the risk management
software business.
Fourth Quarter and Full-Year Expenses
Fourth quarter 2009 expense for Moody's Corporation of $306.9 million
was 10% higher than in the prior-year period and included higher
accruals for performance-based compensation. Moody's reported operating
margin for the fourth quarter of 2009 was 36.8%. Excluding the
restructuring adjustments in the current period, expenses were 11%
higher than the prior-year period and operating margin was 36.6%,
compared to 31.1% in the prior-year period. Without the unfavorable
impact of foreign currency translation, reported expenses increased 8%.
Full-year 2009 expenses for Moody's Corporation of $1,109.7 million were
10% higher than the prior year. Excluding restructuring adjustments in
both periods, Moody's expenses were 8% higher in 2009, primarily due to
incremental expenses from businesses acquired in the fourth quarter of
2008 and higher incentive compensation.
Moody's effective tax rate was 38.3% for the fourth quarter of 2009,
compared with 28.6% for the prior-year period. The increase was
primarily due to a favorable true-up of the full-year 2008 tax accrual
in the fourth quarter of 2008. In addition, the 2008 effective tax rate
included realization of U.S. manufacturing and research credits and
deductions. The annual effective tax rate for 2009 was 37.0% compared to
36.7% for 2008.
Full-Year 2009 Revenue Results
Revenue at Moody's Investors Service totaled $1,217.7 million for the
full-year 2009, an increase of 1% from the prior-year period. Excluding
the unfavorable impact of foreign currency translation, revenue
increased 3 percent. U.S. revenue of $663.1 million increased 3%, while
non-U.S. revenue of $554.6 million decreased 1% from the prior year.
Moody's Analytics revenue rose to $579.5 million for the full-year of
2009, up 5% from the full-year of 2008. Excluding the unfavorable impact
of foreign currency translation, revenue increased by 7 percent. Revenue
from research, data and analytics declined by 1% to $413.6 million, and
professional services revenue was down 10% to $20.8 million. For the
risk management software business, revenue increased 33% to $145.1
million, due to the acquisition of Fermat International in late 2008 and
good growth from legacy products and services. U.S. revenue of $257.7
million decreased 3% from the full-year 2008 results. Non-U.S. revenue
of $321.8 million increased 13% from 2008 and represented 56% of total
revenue, up from 52% in 2008.
Capital Allocation and Liquidity
On December 15, 2009, Moody's increased its quarterly dividend by 5% to
10.5 cents per share of Moody's common stock. During the fourth quarter
of 2009, Moody's did not repurchase shares and issued 0.4 million shares
under employee stock-based compensation plans. Outstanding shares as of
December 31, 2009 totaled 236.9 million, representing a 1% increase from
a year earlier. Additionally, as of December 31, 2009, Moody's had $1.4
billion of share repurchase authority remaining under its current
program. At year-end, Moody's had $1.2 billion of outstanding debt and
approximately $550 million of additional debt capacity available under
its revolving credit facility. Moody's reduced total outstanding debt by
$87 million during the fourth quarter and $274 million for the full-year
of 2009. At year-end, total cash and cash equivalents were $473.9
million, an increase of $228 million from a year earlier.
Assumptions and Outlook for Full-Year 2010
Moody's outlook for 2010 is based on assumptions about many
macroeconomic and capital market factors, including interest rates,
corporate profitability and business investment spending, merger and
acquisition activity, consumer borrowing and securitization, and the
eventual withdrawal of government-sponsored economic stabilization
initiatives. There is an important degree of uncertainty surrounding
these assumptions and, if actual conditions differ from these
assumptions, Moody's results for the year may differ materially from the
current outlook.
For Moody's overall, the Company expects full-year 2010 revenue to
increase in the high-single-digit percent range. Full-year 2010 expenses
are also expected to increase in the high-single-digit percent range.
Full-year 2010 operating margin is projected in the high-thirties
percent range and the effective tax rate is expected in the range of 37
to 38 percent. Share repurchase is expected to resume at modest levels
in 2010 subject to available cash flow and other capital allocation
decisions. The Company expects diluted earnings per share for full-year
2010 in the range of $1.75 to $1.85. This outlook assumes foreign
currency translation at end-of-year 2009 rates.
For the global MIS business, revenue for the full-year 2010 is expected
to increase in the high-single- to low-double-digit percent range.
Within the U.S., MIS revenue is expected to increase in the mid-teens
percent range, while non-U.S. revenue is expected to increase in the
mid-single-digit percent range. Corporate finance revenue is expected to
increase in the high-teens percent range with anticipated growth in
speculative-grade issuance activity offset by moderation of
investment-grade issuance from the high volume of 2009. Structured
finance revenue is expected to increase in the mid-single-digit percent
range reflecting modest growth in most asset classes. Revenue from
financial institution ratings is expected to increase in the
low-single-digit percent range, while revenue from public, project and
infrastructure finance is expected to increase in the low-double-digit
percent range.
For Moody's Analytics, full-year 2010 revenue is expected to increase in
the mid-single-digit percent range. Revenue growth is expected in the
low-single-digit percent range for research, data and analytics, in the
mid-teens percent range for risk management software, and in the
high-single- to low-double-digit percent range for professional
services. MA revenue is expected to increase in the low-single-digit
percent range in the U.S. and in the mid-single-digit percent range
outside the U.S.
Conference Call
A conference call to discuss fourth quarter 2009 results will be held
this morning, February 4, at 11:30 a.m. Eastern Time. Individuals within
the U.S. and Canada can access the call by dialing 1-800-289-0722. Other
callers should dial +1-913-905-3198. Please dial into the call by 11:20
a.m. Eastern Time. The passcode for the call is "Moody's Corporation."
The teleconference will be webcast with a slide presentation and can be
accessed through Moody's Shareholder Relations website, http://ir.moodys.com
under "Featured Events", until midnight Eastern Time, February 28, 2010.
A replay of the teleconference will be available from 4:00 p.m. Eastern
Time, February 4, 2010 until midnight Eastern Time, February 28, 2010.
The replay can be accessed from within the U.S. and Canada by dialing
1-888-203-1112. Other callers can access the replay at +1-719-457-0820.
The replay confirmation code is 2814160.
*****
Moody's is an essential component of the global capital markets,
providing credit ratings, research, tools and analysis that contribute
to transparent and integrated financial markets. Moody's Corporation
(NYSE: MCO) is the parent company of Moody's Investors Service, which
provides credit ratings and research covering debt instruments and
securities, and Moody's Analytics, which encompasses the growing array
of Moody's non-ratings businesses including risk management software for
financial institutions, quantitative credit analysis tools, economic
research and data services, data and analytical tools for the structured
finance market, and training and other professional services. The
Corporation, which reported revenue of $1.8 billion in 2009, employs
approximately 4,000 people worldwide and maintains a presence in 27
countries. Further information is available at www.moodys.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995
Certain statements contained in this release are forward-looking
statements and are based on future expectations, plans and prospects for
Moody's business and operations that involve a number of risks and
uncertainties. Moody's outlook for 2010 and other forward-looking
statements in this release are made as of February 4, 2010, and the
Company disclaims any duty to supplement, update or revise such
statements on a going-forward basis, whether as a result of subsequent
developments, changed expectations or otherwise. In connection with the
"safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995, the Company is identifying certain factors that could cause
actual results to differ, perhaps materially, from those indicated by
these forward-looking statements. Those factors include, but are not
limited to, the current world-wide credit market disruptions and
economic slowdown, which is affecting and could continue to affect the
volume of debt securities issued in domestic and/or global capital
markets; other matters that could affect the volume of debt securities
issued, including credit quality concerns, changes in interest rates and
other volatility in the financial markets; the uncertain effectiveness
and possible collateral consequences of U.S. and foreign government
initiatives to respond to the economic slowdown; possible loss of market
share through competition; introduction of competing products or
technologies by other companies; pricing pressures from competitors
and/or customers; the potential emergence of government-sponsored credit
rating agencies; proposed U.S., foreign, state and local legislation and
regulations; regulations relating to the oversight of credit rating
agencies; possible judicial decisions in various jurisdictions regarding
the status of and potential liabilities of credit rating agencies; the
outcome of legislative initiatives attempting to modify, in a manner
adverse to credit rating agencies, the rules governing the potential
liability of credit rating agencies; the possible loss of key employees;
the outcome of any review by controlling tax authorities of the
Company's global tax planning initiatives; the outcome of those legacy
tax and legal contingencies that relate to the Company, its predecessors
and their affiliated companies for which Moody's has assumed portions of
the financial responsibility; the outcome of other legal actions to
which the Company, from time to time, may be named as a party; the
ability of the Company to successfully integrate acquired businesses; a
decline in the demand from financial institutions for credit risk
management tools; and other risk factors as discussed in the Company's
annual report on Form 10-K for the year ended December 31, 2008 and in
other filings made by the Company from time to time with the Securities
and Exchange Commission.
Moody's Corporation
Consolidated Statements of Operations (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
Amounts in millions, except 2009 2008 2009 2008
per share amounts
Revenue $ 485.8 $ 403.7 $ 1,797.2 $ 1,755.4
Expenses:
Operating 146.9 127.4 532.4 493.3
Selling, general and 144.5 119.5 495.7 441.3
administrative
Restructuring (1.1 ) 0.2 17.5 (2.5 )
Depreciation and amortization 16.6 31.2 64.1 75.1
Total expenses 306.9 278.3 1,109.7 1,007.2
Operating income 178.9 125.4 687.5 748.2
Non-operating (expense)
income, net
Interest (expense) income, (12.5 ) (15.7 ) (33.4 ) (52.2 )
net
Other non-operating (expense) 0.9 14.9 (7.9 ) 33.8
income, net
Total (11.6 ) (0.8 ) (41.3 ) (18.4 )
Income before provision for 167.3 124.6 646.2 729.8
income taxes
Provision for income taxes 64.0 35.6 239.1 268.2
Net income 103.3 89.0 407.1 461.6
Less: net income attributable 1.4 0.3 5.1 4.0
to noncontrolling interests
Net income attributable to $ 101.9 $ 88.7 $ 402.0 $ 457.6
Moody's Corporation
Earnings per share attributable to
Moody's common shareholders
Basic $ 0.43 $ 0.38 $ 1.70 $ 1.89
Diluted $ 0.43 $ 0.37 $ 1.69 $ 1.87
Weighted average number of
shares outstanding
Basic 236.6 236.2 236.1 242.4
Diluted 238.5 237.8 237.8 245.3
Moody's Corporation
Supplemental Revenue Information (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
Amounts in millions 2009 2008 2009 2008
Moody's Investors Service
Structured Finance $ 78.7 $ 91.0 $ 304.9 $ 404.7
Corporate Finance 115.2 57.8 408.2 307.0
Financial Institutions 72.0 56.5 258.5 263.0
Public, Project and 66.0 48.6 246.1 230.0
Infrastructure Finance
Intersegment royalty 16.4 16.1 60.0 63.6
Sub-total MIS 348.3 270.0 1,277.7 1,268.3
Eliminations (16.4 ) (16.1 ) (60.0 ) (63.6 )
Total MIS revenue 331.9 253.9 1,217.7 1,204.7
Moody's Analytics(a)
Research, Data and Analytics 106.0 107.1 413.6 418.7
Risk Management Software 42.3 35.1 145.1 108.8
Professional Services 5.6 7.6 20.8 23.2
Total MA revenue 153.9 149.8 579.5 550.7
Total Moody's Corporation $ 485.8 $ 403.7 $ 1,797.2 $ 1,755.4
revenue
Moody's Corporation revenue by
geographic area
United States $ 245.1 $ 195.5 $ 920.8 $ 910.1
International 240.7 208.2 876.4 845.3
$ 485.8 $ 403.7 $ 1,797.2 $ 1,755.4
(a)During the fourth quarter of 2009 the MA groupings were realigned and
renamed to reflect the reporting unit structure for the MA segment at December
31, 2009. A reconciliation table for MA revenue is available at the end of
this press release.
Moody's Corporation
Consolidated Interest (Expense) Income, Net (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
Amounts in millions 2009 2008 2009 2008
Interest (expense) income:
Expense on borrowings $ (10.7 ) $ (15.8 ) $ (45.5 ) $ (60.0 )
Income 0.5 2.9 2.5 18.1
Legacy tax(a) - - 6.5 2.3
Unrecognized tax benefits and other (2.7 ) (3.3 ) 1.6 (13.7 )
tax
Interest capitalized 0.4 0.5 1.5 1.1
Total interest (expense) income, $ (12.5 ) $ (15.7 ) $ (33.4 ) $ (52.2 )
net
(a) The 2009 amount represents interest income related to the favorable
settlement of the 1993 - 1996 legacy tax matter; the 2008 amount represents a
reduction of accrued interest due to the favorable resolution of legacy tax
matters
Moody's Corporation
Selected Consolidated Balance Sheet Data (Unaudited)
December 31, December 31,
2009 2008
Amounts in millions
Cash and cash equivalents $ 473.9 $ 245.9
Short-term investments 10.0 7.1
Total current assets 1,010.3 809.1
Non-current assets 993.2 964.3
Total assets 2,003.5 1,773.4
Total current liabilities 1,236.2 1,393.1
Total debt (1) 1,193.7 1,467.7
Other long-term liabilities 617.2 616.4
Total shareholders' deficit (596.1 ) (986.1 )
Total liabilities and shareholders' deficit 2,003.5 1,773.4
Actual number of shares outstanding 236.9 235.1
(1)Includes long-term debt of $746.2 million and $750.0 million at
December 31, 2009 and 2008, respectively. Additionally, this includes
amounts outstanding under the Company's commercial paper program of
$443.7 million and the current portion of long-term debt of $3.8 million
at December 31, 2009, and $104.7 million and $613.0 million under the
commercial paper program and revolving credit facility, respectively, at
December 31, 2008, which are included in total current liabilities.
Moody's Corporation
Reconciliation to Non-GAAP Financial Measures (Unaudited)
Three Months Ended December 31,
Amounts in
millions, 2009 2008
except per
share amounts
Non-GAAP Non-GAAP
As Financial As Financial
Reported Adjustments Measures Reported Adjustments Measures
* *
Revenue $ 485.8 $ - $ 485.8 $ 403.7 $ - $ 403.7
Expenses 306.9 1.1 (a) 308.0 278.3 (0.2 ) (a) 278.1
Operating 178.9 (1.1 ) 177.8 125.4 0.2 125.6
income
Non-operating
(expense) (11.6 ) - (11.6 ) (0.8 ) - (0.8 )
income, net
Income before
provision for 167.3 (1.1 ) 166.2 124.6 0.2 124.8
income taxes
Provision for 64.0 (0.4 ) (b) 63.6 35.6 0.1 (b) 35.7
income taxes
Net income 103.3 (0.7 ) 102.6 89.0 0.1 89.1
Less: net
income
attributable 1.4 - 1.4 0.3 - 0.3
to
noncontrolling
interests
Net income
attributable $ 101.9 $ (0.7 ) $ 101.2 $ 88.7 $ 0.1 $ 88.8
to Moody's
Corporation
Earnings per share
attributable to Moody's
common shareholders
Basic $ 0.43 $ 0.43 $ 0.38 $ 0.38
Diluted $ 0.43 $ 0.42 $ 0.37 $ 0.37
*In addition to its reported results, Moody's has included in the table above adjusted
results that the Securities and Exchange Commission defines as "non-GAAP financial
measures." Management believes that such non-GAAP financial measures, when read in
conjunction with the Company's reported results, can provide useful supplemental information
for investors analyzing period-to-period comparisons of the Company's results. May not add
due to rounding.
The tables above show Moody's consolidated results for each of the three-month periods ended
December 31, 2009 and 2008, adjusted to exclude the impact of the following:
(a) To exclude adjustments relating to the fourth quarter 2007 restructuring charge and the
2009 restructuring plan approved on March 27, 2009
(b) To reflect the income tax impacts related to the adjustments described in note (a) above
Moody's Corporation
Reconciliation to Non-GAAP Financial Measures (Unaudited)
Twelve Months Ended December 31,
Amounts in
millions, 2009 2008
except per
share amounts
Non-GAAP Non-GAAP
As Financial As Financial
Reported Adjustments Measures * Reported Adjustments Measures *
Revenue $ 1,797.2 $ - $ 1,797.2 $ 1,755.4 $ - $ 1,755.4
Expenses 1,109.7 (17.5 ) (a) 1,092.2 1,007.2 2.5 (a) 1,009.7
Operating 687.5 17.5 705.0 748.2 (2.5 ) 745.7
income
Non-operating
(expense) (41.3 ) (6.5 ) (b) (47.8 ) (18.4 ) (13.3 ) (b) (31.7 )
income, net
Income before
provision for 646.2 11.0 657.2 729.8 (15.8 ) 714.0
income taxes
Provision for 239.1 8.3 (c) 247.4 268.2 (3.5 ) (c) 264.7
income taxes
Net income 407.1 2.7 409.8 461.6 (12.3 ) 449.3
Less: net
income
attributable 5.1 - 5.1 4.0 - 4.0
to
noncontrolling
interests
Net income
attributable $ 402.0 $ 2.7 $ 404.7 $ 457.6 $ (12.3 ) $ 445.3
to Moody's
Corporation
Earnings per share
attributable to Moody's
common shareholders
Basic $ 1.70 $ 1.71 $ 1.89 $ 1.84
Diluted $ 1.69 $ 1.70 $ 1.87 $ 1.82
*In addition to its reported results, Moody's has included in the table above adjusted results that
the Securities and Exchange Commission defines as "non-GAAP financial measures." Management believes
that such non-GAAP financial measures, when read in conjunction with the Company's reported results,
can provide useful supplemental information for investors analyzing period-to-period comparisons of
the Company's results. May not add due to rounding.
The tables above show Moody's consolidated results for each of the twelve-month periods ended
December 31, 2009 and 2008, adjusted to exclude the impact of the following:
(a) To exclude adjustments relating to the fourth quarter 2007 restructuring charge and the 2009
restructuring plan approved on March 27, 2009
(b) To exclude benefits relating to the resolution of certain legacy tax matters
(c) To reflect the income tax impacts related to the adjustments described in notes (a) and (b)
above, and to exclude a $4.3 million tax benefit recorded in the second quarter of 2009 related to
the settlement of a legacy tax matter
Moody's Corporation
Summary Impact of MA Realignment of Reported Revenue
Amounts in millions Three Months Ended December 31, 2008
Previously 2008 Adjusted
Reported Reclassifications (a) Presentation
Research, Data and Analytics $ 122.0 $ (14.9 ) $ 107.1
Risk Management Software 19.1 16.0 35.1
Professional Services 8.7 (1.1 ) 7.6
Total MA revenue $ 149.8 $ - $ 149.8
Amounts in millions Twelve Months Ended December 31, 2008
Previously 2008 Adjusted
Reported Reclassifications (a) Presentation
Research, Data and Analytics $ 475.9 $ (57.2 ) $ 418.7
Risk Management Software 49.2 59.6 108.8
Professional Services 25.6 (2.4 ) 23.2
Total MA revenue $ 550.7 $ - $ 550.7
(a) During the fourth quarter of 2009 the MA groupings were realigned and
renamed to reflect the reporting unit structure for the MA segment at December
31, 2009. Pursuant to this realignment the Subscriptions grouping was renamed
Research, Data and Analytics and the Software grouping was renamed Risk
Management Software. The revised groupings classify certain subscription-based
risk management software revenue and advisory services relating to software
sales to the redefined Risk Management Software line of business.
Source: Moody's Corporation