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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company has five operating segments: Index, Analytics, ESG and Climate, Real Assets and Private Capital Solutions, which are presented as the following four reportable segments: Index, Analytics, ESG and Climate and All Other – Private Assets. During the year ended December 31, 2023, the Company renamed the Burgiss operating segment to Private Capital Solutions. The operating segments of Real Assets and Private Capital Solutions do not individually meet the segment reporting thresholds and have been combined and presented as part of All Other – Private Assets reportable segment.
Prior to the step acquisition of Burgiss on October 2, 2023, the Company’s ownership interest in Burgiss was classified as an equity-method investment. Therefore, prior to the acquisition of Burgiss, the All Other – Private Assets segment did not include the Company’s proportionate share of operating revenues and Adjusted EBITDA related to Burgiss. The Company’s proportionate share of the income or loss from its equity-method investment in Burgiss was not a component of Adjusted EBITDA as it was reported as a component of other (expense) income, net. Following the acquisition, the consolidated results of Burgiss were included in the Company’s Private Capital Solutions operating segment.
The Index operating segment offers equity and fixed income indexes. The indexes are used in many areas of the investment process, including for developing indexed financial products (e.g., Exchange Traded Funds (“ETFs”), mutual funds, annuities, futures, options, structured products and over-the-counter derivatives), performance benchmarking, portfolio construction and rebalancing, and asset allocation.
The Analytics operating segment offers risk management, performance attribution and portfolio management content, applications and services that provide clients with an integrated view of risk and return and tools for analyzing market, credit, liquidity, counterparty and climate risk across all major asset classes, spanning short-, medium- and long-term time horizons. Clients access Analytics tools and content through MSCI’s proprietary applications and application programming interfaces, third-party applications or directly through their own platforms. Additionally, the Analytics operating segment also provides various managed services to help clients operate more efficiently, including consolidation of client portfolio data from various sources, review and reconciliation of input data and results, and customized reporting.
The ESG and Climate operating segment offers products and services that help institutional investors understand how ESG and climate considerations can impact the long-term risk and return of their portfolio and individual security-level investments. In addition, the ESG and Climate operating segment provides data, ratings, research and tools to help investors navigate increasing regulation, meet new client demands and better integrate ESG and climate elements into their investment processes.
The Real Assets operating segment offers data, benchmarks, return-analytics, climate assessments and market insights for tangible assets such as real estate and infrastructure. In addition, Real Assets performance and risk analytics range from enterprise-wide to property-specific analysis. The Real Assets operating segment also provides business intelligence products to real estate owners, managers, developers and brokers worldwide.
The Private Capital Solutions operating segment offers a suite of tools to help private asset investors across mission-critical workflows, such as sourcing terms and conditions, evaluating operating performance of underlying portfolio companies, managing risk and other activities supporting private capital investing.
The Chief Operating Decision Maker (“CODM”) measures and evaluates reportable segments based on segment operating revenues as well as Adjusted EBITDA and other measures. The Company excludes the following items from segment Adjusted EBITDA: provision for income taxes, other expense (income), net, depreciation and amortization of property, equipment and leasehold improvements, amortization of intangible assets and, at times, certain other transactions or adjustments, including certain acquisition-related integration and transaction costs, that the CODM does not consider for the purposes of making decisions to allocate resources among segments or to assess segment performance. Although these amounts are excluded from segment Adjusted EBITDA, they are included in reported consolidated net income and are included in the reconciliation that follows.
The following table presents operating revenues by reportable segment for the periods indicated:
Three Months Ended
March 31,
(in thousands)20242023
Operating revenues
Index$373,872 $339,382 
Analytics163,966 147,070 
ESG and Climate77,884 67,058 
All Other - Private Assets64,243 38,708 
Total$679,965 $592,218 
The following table presents segment profitability and a reconciliation to net income for the periods indicated:
Three Months Ended
March 31,
(in thousands)20242023
Index Adjusted EBITDA$277,760 $253,682 
Analytics Adjusted EBITDA72,212 60,780 
ESG and Climate Adjusted EBITDA21,091 17,876 
All Other - Private Assets Adjusted EBITDA12,510 12,391 
Total operating segment profitability383,573 344,729 
Amortization of intangible assets38,604 24,667 
Depreciation and amortization of property, equipment and leasehold improvements4,081 5,460 
Acquisition-related integration and transaction costs(1)
1,506 — 
Operating income339,382 314,602 
Other expense (income), net43,489 38,230 
Provision for income taxes39,939 37,644 
Net income$255,954 $238,728 
___________________________
(1)Represents transaction expenses and other costs directly related to the acquisition and integration of acquired businesses, including professional fees, severance expenses, regulatory filing fees and other costs, in each case that are incurred no later than 12 months after the close of the relevant acquisition.
Operating revenues by geography are primarily based on the shipping address of the ultimate customer utilizing the product. The following table presents operating revenues by geographic area for the periods indicated:
Three Months Ended
March 31,
(in thousands)20242023
Operating revenues
Americas:
United States$280,675 $238,416 
Other30,358 27,536 
Total Americas311,033 265,952 
Europe, the Middle East and Africa (“EMEA”):
United Kingdom113,294 91,660 
Other151,684 138,319 
Total EMEA264,978 229,979 
Asia & Australia:  
Japan26,573 26,017 
Other77,381 70,270 
Total Asia & Australia103,954 96,287 
Total$679,965 $592,218 
Long-lived assets consist of property, equipment and leasehold improvements, right of use assets and internally developed capitalized software, net of accumulated depreciation and amortization. The following table presents long-lived assets by geographic area on the dates indicated:
As of
March 31,December 31,
(in thousands)20242023
Long-lived assets
Americas:
United States$231,650 $204,238 
Other11,068 11,585 
Total Americas242,718 215,823 
EMEA:
United Kingdom17,913 18,403 
Other20,840 22,072 
Total EMEA38,753 40,475 
Asia & Australia:
Japan1,143 1,321 
Other29,524 31,507 
Total Asia & Australia30,667 32,828 
Total$312,138 $289,126