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As of December 31, 2013 | ||||||||||||
($000) | Previously Reported | Correction | As Corrected | |||||||||
Accounts payable and accrued liabilities | $ | 52,877 | $ | (10,746 | ) | $ | 42,131 | |||||
Deferred rent | $ | 13,192 | $ | 10,746 | $ | 23,938 |
|
|
($000) | ||||
Balance as of December 31, 2013 | $ | 326,450 | ||
Foreign currency translation | 1,486 | |||
Balance as of March 31, 2014 | $ | 327,936 |
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||
($000) | Gross | Accumulated Amortization | Net | Weighted Average Useful Life (years) | Gross | Accumulated Amortization | Net | Weighted Average Useful Life (years) | ||||||||||||||||||||
Intellectual property | $ | 29,778 | $ | (23,973 | ) | $ | 5,805 | 9 | $ | 29,477 | $ | (23,128 | ) | $ | 6,349 | 9 | ||||||||||||
Customer-related assets | 141,991 | (77,361 | ) | 64,630 | 12 | 141,833 | (74,311 | ) | 67,522 | 12 | ||||||||||||||||||
Supplier relationships | 240 | (111 | ) | 129 | 20 | 240 | (108 | ) | 132 | 20 | ||||||||||||||||||
Technology-based assets | 80,870 | (52,567 | ) | 28,303 | 9 | 80,489 | (50,673 | ) | 29,816 | 9 | ||||||||||||||||||
Non-competition agreement | 1,686 | (1,606 | ) | 80 | 4 | 1,661 | (1,571 | ) | 90 | 4 | ||||||||||||||||||
Total intangible assets | $ | 254,565 | $ | (155,618 | ) | $ | 98,947 | 10 | $ | 253,700 | $ | (149,791 | ) | $ | 103,909 | 10 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Amortization expense | $ | 5,142 | $ | 5,625 |
($000) | ||||
2014 | $ | 20,547 | ||
2015 | 19,719 | |||
2016 | 15,145 | |||
2017 | 10,577 | |||
2018 | 8,574 | |||
2019 | 7,386 |
|
External revenue by product group | ||||||||
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Investment information | $ | 141,270 | $ | 135,085 | ||||
Investment management | 39,895 | 33,771 | ||||||
Consolidated revenue | $ | 181,165 | $ | 168,856 |
External revenue by geographical area | ||||||||
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
United States | $ | 129,952 | $ | 121,413 | ||||
United Kingdom | 15,338 | 13,153 | ||||||
Continental Europe | 15,626 | 13,167 | ||||||
Australia | 8,168 | 9,352 | ||||||
Canada | 7,667 | 7,736 | ||||||
Asia | 3,709 | 3,424 | ||||||
Other | 705 | 611 | ||||||
Total International | 51,213 | 47,443 | ||||||
Consolidated revenue | $ | 181,165 | $ | 168,856 |
Long-lived assets by geographical area | ||||||||
As of March 31 | As of December 31 | |||||||
($000) | 2014 | 2013 | ||||||
United States | $ | 88,154 | $ | 84,321 | ||||
United Kingdom | 6,552 | 6,873 | ||||||
Continental Europe | 1,666 | 1,873 | ||||||
Australia | 1,005 | 1,051 | ||||||
Canada | 1,101 | 1,275 | ||||||
Asia | 8,854 | 9,479 | ||||||
Other | 106 | 114 | ||||||
Total International | 19,284 | 20,665 | ||||||
Consolidated property, equipment, and capitalized software, net | $ | 107,438 | $ | 104,986 |
|
As of March 31 | As of December 31 | |||||||
($000) | 2014 | 2013 | ||||||
Available-for-sale | $ | 22,975 | $ | 91,461 | ||||
Held-to-maturity | 28,448 | 31,214 | ||||||
Trading securities | 7,917 | 7,732 | ||||||
Total | $ | 59,340 | $ | 130,407 |
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||
($000) | Cost | Unrealized Gain | Unrealized Loss | Fair Value | Cost | Unrealized Gain | Unrealized Loss | Fair Value | ||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||
Government obligations | $ | 5,652 | $ | 6 | $ | — | $ | 5,658 | $ | 19,693 | $ | 8 | $ | (3 | ) | $ | 19,698 | |||||||||||||||
Corporate bonds | 5,206 | 5 | — | 5,211 | 49,913 | 22 | (124 | ) | 49,811 | |||||||||||||||||||||||
Foreign obligations | — | — | — | — | 505 | — | (2 | ) | 503 | |||||||||||||||||||||||
Commercial paper | — | — | — | — | 9,482 | 7 | — | 9,489 | ||||||||||||||||||||||||
Equity securities and exchange-traded funds | 8,916 | 1,068 | (123 | ) | 9,861 | 8,872 | 1,011 | (141 | ) | 9,742 | ||||||||||||||||||||||
Mutual funds | 2,106 | 233 | (94 | ) | 2,245 | 2,095 | 221 | (98 | ) | 2,218 | ||||||||||||||||||||||
Total | $ | 21,880 | $ | 1,312 | $ | (217 | ) | $ | 22,975 | $ | 90,560 | $ | 1,269 | $ | (368 | ) | $ | 91,461 | ||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 28,448 | $ | — | $ | — | $ | 28,448 | $ | 31,214 | $ | — | $ | — | $ | 31,214 |
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||
($000) | Cost | Fair Value | Cost | Fair Value | ||||||||||||
Available-for-sale: | ||||||||||||||||
Due in one year or less | $ | 9,855 | $ | 9,864 | $ | 45,486 | $ | 45,402 | ||||||||
Due in one to two years | 1,003 | 1,005 | 34,107 | 34,099 | ||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 11,022 | 12,106 | 10,967 | 11,960 | ||||||||||||
Total | $ | 21,880 | $ | 22,975 | $ | 90,560 | $ | 91,461 | ||||||||
Held-to-maturity: | ||||||||||||||||
Due in one year or less | $ | 28,443 | $ | 28,443 | $ | 31,210 | $ | 31,210 | ||||||||
Due in one to three years | 5 | 5 | 4 | 4 | ||||||||||||
Total | $ | 28,448 | $ | 28,448 | $ | 31,214 | $ | 31,214 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Realized gains | $ | 161 | $ | 1,564 | ||||
Realized losses | (185 | ) | (839 | ) | ||||
Realized gains (losses), net | $ | (24 | ) | $ | 725 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Unrealized gains, net | $ | 69 | $ | 318 |
Fair Value | Fair Value Measurements as of March 31, 2014 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
($000) | March 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Government obligations | $ | 5,658 | $ | — | $ | 5,658 | $ | — | ||||||||
Corporate bonds | 5,211 | — | 5,211 | — | ||||||||||||
Foreign obligations | — | — | — | — | ||||||||||||
Commercial paper | — | — | — | — | ||||||||||||
Equity securities and exchange-traded funds | 9,861 | 9,861 | — | — | ||||||||||||
Mutual funds | 2,245 | 2,245 | — | — | ||||||||||||
Trading securities | 7,917 | 7,917 | — | — | ||||||||||||
Cash equivalents | 643 | 643 | — | — | ||||||||||||
Total | $ | 31,535 | $ | 20,666 | $ | 10,869 | $ | — |
Fair Value | Fair Value Measurements as of December 31, 2013 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
($000) | December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Government obligations | $ | 19,698 | $ | — | $ | 19,698 | $ | — | ||||||||
Corporate bonds | 49,811 | — | 49,811 | — | ||||||||||||
Foreign obligations | 503 | — | 503 | — | ||||||||||||
Commercial paper | 9,489 | — | 9,489 | — | ||||||||||||
Equity securities and exchange-traded funds | 9,742 | 9,742 | — | — | ||||||||||||
Mutual funds | 2,218 | 2,218 | — | — | ||||||||||||
Trading securities | 7,732 | 7,732 | — | — | ||||||||||||
Cash equivalents | 925 | 925 | — | — | ||||||||||||
Total | $ | 100,118 | $ | 20,617 | $ | 79,501 | $ | — |
Level 1: | Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. |
Level 2: | Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. |
Level 3: | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
|
As of March 31 | As of December 31 | |||||||
($000) | 2014 | 2013 | ||||||
Investment in MJKK | $ | 22,543 | $ | 21,782 | ||||
Other equity method investments | 6,008 | 6,166 | ||||||
Investments accounted for using the cost method | 10,625 | 10,766 | ||||||
Total investments in unconsolidated entities | $ | 39,176 | $ | 38,714 |
As of March 31 | As of December 31 | |||||||
2014 | 2013 | |||||||
Morningstar’s approximate ownership of MJKK | 34 | % | 34 | % | ||||
Approximate market value of Morningstar’s ownership in MJKK: | ||||||||
Japanese yen (¥000) | ¥ | 8,833,406 | ¥ | 9,824,068 | ||||
Equivalent U.S. dollars ($000) | $ | 85,949 | $ | 94,999 |
|
As of March 31 | |||
(in thousands) | 2014 | ||
Shares available for future grants | 4,483 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Restricted stock units | $ | 3,692 | $ | 3,563 | ||||
Restricted stock | 97 | 97 | ||||||
Performance share awards | 27 | — | ||||||
Stock options | 123 | 123 | ||||||
Total stock-based compensation expense | $ | 3,939 | $ | 3,783 | ||||
Income tax benefit related to the stock-based compensation expense | $ | 1,079 | $ | 1,030 |
Unrecognized stock-based compensation expense ($000) | Expected amortization period (months) | |||||
Restricted stock units | $ | 27,487 | 31 | |||
Restricted stock | 420 | 13 | ||||
Performance share awards | 1,890 | 33 | ||||
Stock options | 462 | 14 | ||||
Total unrecognized stock-based compensation expense | $ | 30,259 | 31 |
Restricted Stock Units (RSUs) | Unvested | Vested but Deferred | Total | Weighted Average Grant Date Value per RSU | |||||||||
RSUs outstanding—December 31, 2013 | 680,002 | 16,682 | 696,684 | $ | 62.02 | ||||||||
Granted | — | — | — | — | |||||||||
Dividend equivalents | 885 | 37 | 922 | 57.49 | |||||||||
Vested | (256 | ) | — | (256 | ) | 53.31 | |||||||
Vested but deferred | — | — | — | — | |||||||||
Issued | — | — | — | — | |||||||||
Forfeited | (6,893 | ) | — | (6,893 | ) | 61.66 | |||||||
RSUs outstanding—March 31, 2014 | 673,738 | 16,719 | 690,457 | $ | 62.04 |
As of March 31, 2014 | ||||
Target performance share awards granted | 23,685 | |||
Fair value (1) | $ | 80.91 | ||
Number of shares that would be issued based on current performance levels | 23,685 | |||
Unamortized expense, based on current performance levels | $ | 1,890,000 |
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date | Underlying Shares | Weighted Average Exercise Price | |||||
Options outstanding—December 31, 2013 | 179,559 | $ | 21.47 | ||||
Granted | — | — | |||||
Canceled | — | — | |||||
Exercised | (11,731 | ) | 21.46 | ||||
Options outstanding—March 31, 2014 | 167,828 | 21.68 | |||||
Options exercisable—March 31, 2014 | 167,828 | $ | 21.68 |
All Other Option Grants, Excluding Activity Shown Above | Underlying Shares | Weighted Average Exercise Price | |||||
Options outstanding—December 31, 2013 | 253,972 | $ | 36.48 | ||||
Granted | — | — | |||||
Canceled | — | — | |||||
Exercised | (35,213 | ) | 29.22 | ||||
Options outstanding—March 31, 2014 | 218,759 | 37.85 | |||||
Options exercisable—March 31, 2014 | 184,236 | $ | 34.18 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Intrinsic value of options exercised | $ | 2,526 | $ | 5,588 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Range of Exercise Prices | Number of Options | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price | Aggregate Intrinsic Value ($000) | Exercisable Shares | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price | Aggregate Intrinsic Value ($000) | ||||||||||||||||||
$21.61 - $26.68 | 303,106 | 0.87 | $ | 23.91 | $ | 16,704 | 303,106 | 0.87 | $ | 23.91 | $ | 16,704 | ||||||||||||||
$39.31 - $49.38 | 11,806 | 1.61 | 46.86 | 380 | 11,806 | 1.61 | 46.86 | 380 | ||||||||||||||||||
$57.28 - $59.35 | 71,675 | 7.27 | 57.46 | 1,545 | 37,152 | 7.27 | 57.45 | 741 | ||||||||||||||||||
$21.61 - $59.35 | 386,587 | 2.08 | $ | 30.83 | $ | 18,629 | 352,064 | 1.57 | $ | 28.22 | $ | 17,825 | ||||||||||||||
Vested or Expected to Vest | ||||||||||||||||||||||||||
$21.61 - $59.35 | 386,587 | 2.08 | $ | 30.83 | $ | 18,629 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Excess tax benefits related to stock-based compensation | $ | 573 | $ | 1,587 |
|
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 39,397 | $ | 41,505 | ||||
Equity in net income of unconsolidated entities | 599 | 497 | ||||||
Net loss attributable to the noncontrolling interest | 30 | 43 | ||||||
Total | $ | 40,026 | $ | 42,045 | ||||
Income tax expense | $ | 13,650 | $ | 12,427 | ||||
Effective tax rate | 34.1 | % | 29.6 | % |
As of March 31 | As of December 31 | |||||||
($000) | 2014 | 2013 | ||||||
Gross unrecognized tax benefits | $ | 11,053 | $ | 12,958 | ||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 11,053 | $ | 10,557 | ||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 9,665 | $ | 9,262 |
As of March 31 | As of December 31 | |||||||
Liabilities for Unrecognized Tax Benefits ($000) | 2014 | 2013 | ||||||
Current liability | $ | 4,282 | $ | 6,211 | ||||
Non-current liability | 6,491 | 6,012 | ||||||
Total liability for unrecognized tax benefits | $ | 10,773 | $ | 12,223 |
|
|
|
|
|
As of December 31, 2013 | ||||||||||||
($000) | Previously Reported | Correction | As Corrected | |||||||||
Accounts payable and accrued liabilities | $ | 52,877 | $ | (10,746 | ) | $ | 42,131 | |||||
Deferred rent | $ | 13,192 | $ | 10,746 | $ | 23,938 |
|
($000) | ||||
Balance as of December 31, 2013 | $ | 326,450 | ||
Foreign currency translation | 1,486 | |||
Balance as of March 31, 2014 | $ | 327,936 |
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||
($000) | Gross | Accumulated Amortization | Net | Weighted Average Useful Life (years) | Gross | Accumulated Amortization | Net | Weighted Average Useful Life (years) | ||||||||||||||||||||
Intellectual property | $ | 29,778 | $ | (23,973 | ) | $ | 5,805 | 9 | $ | 29,477 | $ | (23,128 | ) | $ | 6,349 | 9 | ||||||||||||
Customer-related assets | 141,991 | (77,361 | ) | 64,630 | 12 | 141,833 | (74,311 | ) | 67,522 | 12 | ||||||||||||||||||
Supplier relationships | 240 | (111 | ) | 129 | 20 | 240 | (108 | ) | 132 | 20 | ||||||||||||||||||
Technology-based assets | 80,870 | (52,567 | ) | 28,303 | 9 | 80,489 | (50,673 | ) | 29,816 | 9 | ||||||||||||||||||
Non-competition agreement | 1,686 | (1,606 | ) | 80 | 4 | 1,661 | (1,571 | ) | 90 | 4 | ||||||||||||||||||
Total intangible assets | $ | 254,565 | $ | (155,618 | ) | $ | 98,947 | 10 | $ | 253,700 | $ | (149,791 | ) | $ | 103,909 | 10 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Amortization expense | $ | 5,142 | $ | 5,625 |
($000) | ||||
2014 | $ | 20,547 | ||
2015 | 19,719 | |||
2016 | 15,145 | |||
2017 | 10,577 | |||
2018 | 8,574 | |||
2019 | 7,386 |
|
External revenue by product group | ||||||||
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Investment information | $ | 141,270 | $ | 135,085 | ||||
Investment management | 39,895 | 33,771 | ||||||
Consolidated revenue | $ | 181,165 | $ | 168,856 |
External revenue by geographical area | ||||||||
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
United States | $ | 129,952 | $ | 121,413 | ||||
United Kingdom | 15,338 | 13,153 | ||||||
Continental Europe | 15,626 | 13,167 | ||||||
Australia | 8,168 | 9,352 | ||||||
Canada | 7,667 | 7,736 | ||||||
Asia | 3,709 | 3,424 | ||||||
Other | 705 | 611 | ||||||
Total International | 51,213 | 47,443 | ||||||
Consolidated revenue | $ | 181,165 | $ | 168,856 |
Long-lived assets by geographical area | ||||||||
As of March 31 | As of December 31 | |||||||
($000) | 2014 | 2013 | ||||||
United States | $ | 88,154 | $ | 84,321 | ||||
United Kingdom | 6,552 | 6,873 | ||||||
Continental Europe | 1,666 | 1,873 | ||||||
Australia | 1,005 | 1,051 | ||||||
Canada | 1,101 | 1,275 | ||||||
Asia | 8,854 | 9,479 | ||||||
Other | 106 | 114 | ||||||
Total International | 19,284 | 20,665 | ||||||
Consolidated property, equipment, and capitalized software, net | $ | 107,438 | $ | 104,986 |
|
As of March 31 | As of December 31 | |||||||
($000) | 2014 | 2013 | ||||||
Available-for-sale | $ | 22,975 | $ | 91,461 | ||||
Held-to-maturity | 28,448 | 31,214 | ||||||
Trading securities | 7,917 | 7,732 | ||||||
Total | $ | 59,340 | $ | 130,407 |
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||
($000) | Cost | Unrealized Gain | Unrealized Loss | Fair Value | Cost | Unrealized Gain | Unrealized Loss | Fair Value | ||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||
Government obligations | $ | 5,652 | $ | 6 | $ | — | $ | 5,658 | $ | 19,693 | $ | 8 | $ | (3 | ) | $ | 19,698 | |||||||||||||||
Corporate bonds | 5,206 | 5 | — | 5,211 | 49,913 | 22 | (124 | ) | 49,811 | |||||||||||||||||||||||
Foreign obligations | — | — | — | — | 505 | — | (2 | ) | 503 | |||||||||||||||||||||||
Commercial paper | — | — | — | — | 9,482 | 7 | — | 9,489 | ||||||||||||||||||||||||
Equity securities and exchange-traded funds | 8,916 | 1,068 | (123 | ) | 9,861 | 8,872 | 1,011 | (141 | ) | 9,742 | ||||||||||||||||||||||
Mutual funds | 2,106 | 233 | (94 | ) | 2,245 | 2,095 | 221 | (98 | ) | 2,218 | ||||||||||||||||||||||
Total | $ | 21,880 | $ | 1,312 | $ | (217 | ) | $ | 22,975 | $ | 90,560 | $ | 1,269 | $ | (368 | ) | $ | 91,461 | ||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 28,448 | $ | — | $ | — | $ | 28,448 | $ | 31,214 | $ | — | $ | — | $ | 31,214 |
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||
($000) | Cost | Fair Value | Cost | Fair Value | ||||||||||||
Available-for-sale: | ||||||||||||||||
Due in one year or less | $ | 9,855 | $ | 9,864 | $ | 45,486 | $ | 45,402 | ||||||||
Due in one to two years | 1,003 | 1,005 | 34,107 | 34,099 | ||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 11,022 | 12,106 | 10,967 | 11,960 | ||||||||||||
Total | $ | 21,880 | $ | 22,975 | $ | 90,560 | $ | 91,461 | ||||||||
Held-to-maturity: | ||||||||||||||||
Due in one year or less | $ | 28,443 | $ | 28,443 | $ | 31,210 | $ | 31,210 | ||||||||
Due in one to three years | 5 | 5 | 4 | 4 | ||||||||||||
Total | $ | 28,448 | $ | 28,448 | $ | 31,214 | $ | 31,214 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Realized gains | $ | 161 | $ | 1,564 | ||||
Realized losses | (185 | ) | (839 | ) | ||||
Realized gains (losses), net | $ | (24 | ) | $ | 725 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Unrealized gains, net | $ | 69 | $ | 318 |
Fair Value | Fair Value Measurements as of March 31, 2014 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
($000) | March 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Government obligations | $ | 5,658 | $ | — | $ | 5,658 | $ | — | ||||||||
Corporate bonds | 5,211 | — | 5,211 | — | ||||||||||||
Foreign obligations | — | — | — | — | ||||||||||||
Commercial paper | — | — | — | — | ||||||||||||
Equity securities and exchange-traded funds | 9,861 | 9,861 | — | — | ||||||||||||
Mutual funds | 2,245 | 2,245 | — | — | ||||||||||||
Trading securities | 7,917 | 7,917 | — | — | ||||||||||||
Cash equivalents | 643 | 643 | — | — | ||||||||||||
Total | $ | 31,535 | $ | 20,666 | $ | 10,869 | $ | — |
Fair Value | Fair Value Measurements as of December 31, 2013 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
($000) | December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Government obligations | $ | 19,698 | $ | — | $ | 19,698 | $ | — | ||||||||
Corporate bonds | 49,811 | — | 49,811 | — | ||||||||||||
Foreign obligations | 503 | — | 503 | — | ||||||||||||
Commercial paper | 9,489 | — | 9,489 | — | ||||||||||||
Equity securities and exchange-traded funds | 9,742 | 9,742 | — | — | ||||||||||||
Mutual funds | 2,218 | 2,218 | — | — | ||||||||||||
Trading securities | 7,732 | 7,732 | — | — | ||||||||||||
Cash equivalents | 925 | 925 | — | — | ||||||||||||
Total | $ | 100,118 | $ | 20,617 | $ | 79,501 | $ | — |
|
As of March 31 | As of December 31 | |||||||
($000) | 2014 | 2013 | ||||||
Investment in MJKK | $ | 22,543 | $ | 21,782 | ||||
Other equity method investments | 6,008 | 6,166 | ||||||
Investments accounted for using the cost method | 10,625 | 10,766 | ||||||
Total investments in unconsolidated entities | $ | 39,176 | $ | 38,714 |
As of March 31 | As of December 31 | |||||||
2014 | 2013 | |||||||
Morningstar’s approximate ownership of MJKK | 34 | % | 34 | % | ||||
Approximate market value of Morningstar’s ownership in MJKK: | ||||||||
Japanese yen (¥000) | ¥ | 8,833,406 | ¥ | 9,824,068 | ||||
Equivalent U.S. dollars ($000) | $ | 85,949 | $ | 94,999 |
|
As of March 31 | |||
(in thousands) | 2014 | ||
Shares available for future grants | 4,483 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Restricted stock units | $ | 3,692 | $ | 3,563 | ||||
Restricted stock | 97 | 97 | ||||||
Performance share awards | 27 | — | ||||||
Stock options | 123 | 123 | ||||||
Total stock-based compensation expense | $ | 3,939 | $ | 3,783 | ||||
Income tax benefit related to the stock-based compensation expense | $ | 1,079 | $ | 1,030 |
Unrecognized stock-based compensation expense ($000) | Expected amortization period (months) | |||||
Restricted stock units | $ | 27,487 | 31 | |||
Restricted stock | 420 | 13 | ||||
Performance share awards | 1,890 | 33 | ||||
Stock options | 462 | 14 | ||||
Total unrecognized stock-based compensation expense | $ | 30,259 | 31 |
Restricted Stock Units (RSUs) | Unvested | Vested but Deferred | Total | Weighted Average Grant Date Value per RSU | |||||||||
RSUs outstanding—December 31, 2013 | 680,002 | 16,682 | 696,684 | $ | 62.02 | ||||||||
Granted | — | — | — | — | |||||||||
Dividend equivalents | 885 | 37 | 922 | 57.49 | |||||||||
Vested | (256 | ) | — | (256 | ) | 53.31 | |||||||
Vested but deferred | — | — | — | — | |||||||||
Issued | — | — | — | — | |||||||||
Forfeited | (6,893 | ) | — | (6,893 | ) | 61.66 | |||||||
RSUs outstanding—March 31, 2014 | 673,738 | 16,719 | 690,457 | $ | 62.04 |
As of March 31, 2014 | ||||
Target performance share awards granted | 23,685 | |||
Fair value (1) | $ | 80.91 | ||
Number of shares that would be issued based on current performance levels | 23,685 | |||
Unamortized expense, based on current performance levels | $ | 1,890,000 |
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date | Underlying Shares | Weighted Average Exercise Price | |||||
Options outstanding—December 31, 2013 | 179,559 | $ | 21.47 | ||||
Granted | — | — | |||||
Canceled | — | — | |||||
Exercised | (11,731 | ) | 21.46 | ||||
Options outstanding—March 31, 2014 | 167,828 | 21.68 | |||||
Options exercisable—March 31, 2014 | 167,828 | $ | 21.68 |
All Other Option Grants, Excluding Activity Shown Above | Underlying Shares | Weighted Average Exercise Price | |||||
Options outstanding—December 31, 2013 | 253,972 | $ | 36.48 | ||||
Granted | — | — | |||||
Canceled | — | — | |||||
Exercised | (35,213 | ) | 29.22 | ||||
Options outstanding—March 31, 2014 | 218,759 | 37.85 | |||||
Options exercisable—March 31, 2014 | 184,236 | $ | 34.18 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Intrinsic value of options exercised | $ | 2,526 | $ | 5,588 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Range of Exercise Prices | Number of Options | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price | Aggregate Intrinsic Value ($000) | Exercisable Shares | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price | Aggregate Intrinsic Value ($000) | ||||||||||||||||||
$21.61 - $26.68 | 303,106 | 0.87 | $ | 23.91 | $ | 16,704 | 303,106 | 0.87 | $ | 23.91 | $ | 16,704 | ||||||||||||||
$39.31 - $49.38 | 11,806 | 1.61 | 46.86 | 380 | 11,806 | 1.61 | 46.86 | 380 | ||||||||||||||||||
$57.28 - $59.35 | 71,675 | 7.27 | 57.46 | 1,545 | 37,152 | 7.27 | 57.45 | 741 | ||||||||||||||||||
$21.61 - $59.35 | 386,587 | 2.08 | $ | 30.83 | $ | 18,629 | 352,064 | 1.57 | $ | 28.22 | $ | 17,825 | ||||||||||||||
Vested or Expected to Vest | ||||||||||||||||||||||||||
$21.61 - $59.35 | 386,587 | 2.08 | $ | 30.83 | $ | 18,629 |
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Excess tax benefits related to stock-based compensation | $ | 573 | $ | 1,587 |
|
Three months ended March 31 | ||||||||
($000) | 2014 | 2013 | ||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 39,397 | $ | 41,505 | ||||
Equity in net income of unconsolidated entities | 599 | 497 | ||||||
Net loss attributable to the noncontrolling interest | 30 | 43 | ||||||
Total | $ | 40,026 | $ | 42,045 | ||||
Income tax expense | $ | 13,650 | $ | 12,427 | ||||
Effective tax rate | 34.1 | % | 29.6 | % |
As of March 31 | As of December 31 | |||||||
($000) | 2014 | 2013 | ||||||
Gross unrecognized tax benefits | $ | 11,053 | $ | 12,958 | ||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 11,053 | $ | 10,557 | ||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 9,665 | $ | 9,262 |
As of March 31 | As of December 31 | |||||||
Liabilities for Unrecognized Tax Benefits ($000) | 2014 | 2013 | ||||||
Current liability | $ | 4,282 | $ | 6,211 | ||||
Non-current liability | 6,491 | 6,012 | ||||||
Total liability for unrecognized tax benefits | $ | 10,773 | $ | 12,223 |
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