MORNINGSTAR, INC., 10-K filed on 3/2/2020
Annual Report
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Cover Page Cover - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2019
Feb. 14, 2020
Jun. 28, 2019
Cover page.      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2019    
Document Transition Report false    
Entity File Number 000-51280    
Entity Registrant Name MORNINGSTAR, INC.    
Entity Incorporation, State or Country Code IL    
Entity Tax Identification Number 36-3297908    
Entity Address, Address Line One 22 West Washington Street    
Entity Address, City or Town Chicago    
Entity Address, State or Province IL    
Entity Address, Postal Zip Code 60602    
City Area Code 312    
Local Phone Number 696-6000    
Title of 12(b) Security Common stock, no par value    
Trading Symbol MORN    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 2.9
Entity Common Stock, Shares Outstanding   42,853,091  
Entity Central Index Key 0001289419    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Amendment Flag false    
Documents Incorporated by Reference [Text Block] Certain parts of the registrant's Definitive Proxy Statement for the 2020 Annual Meeting of Shareholders are incorporated into Part III of this Form 10-K.    
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Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenue $ 1,179.0 $ 1,019.9 $ 911.7
Operating expense:      
Cost of revenue 483.1 411.1 386.6
Sales and marketing 177.9 148.5 134.3
General and administrative 210.7 147.8 129.8
Depreciation and amortization 117.7 96.7 91.2
Total operating expense 989.4 804.1 741.9
Operating income 189.6 215.8 169.8
Non-operating income:      
Interest expense, net (8.7) (1.8) (3.6)
Gain on sale of investments, reclassified from other comprehensive income 1.2 1.0 3.2
Gain on sale of business 0.0 0.0 16.7
Gain on sale of a product line 0.0 10.5 0.0
Gain on sale of equity investments 19.5 5.6 0.0
Other income (expense), net (3.1) 1.8 (5.0)
Non-operating income, net 8.9 17.1 11.3
Income before income taxes and equity in net loss of unconsolidated entities 198.5 232.9 181.1
Equity in net loss of unconsolidated entities (0.9) (2.1) (1.3)
Income tax expense 45.6 47.8 42.9
Consolidated net income $ 152.0 183.0 136.9
Net Income (Loss) Available to Common Stockholders, Basic   $ 183.0 $ 136.9
Net income per share:      
Basic net income per share (in dollars per share) $ 3.56 $ 4.30 $ 3.21
Diluted net income per share (in dollars per share) 3.52 4.25 3.18
Dividends per common share:      
Dividends declared per common share (in dollars per share) 1.14 1.03 0.94
Dividends paid per common share (in dollars per share) $ 1.12 $ 1.00 $ 0.92
Weighted average shares outstanding:      
Basic (in shares) 42.7 42.6 42.7
Diluted (in shares) 43.2 43.0 43.0
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Consolidated net income $ 152.0 $ 183.0 $ 136.9
Other comprehensive income (loss), net of tax:      
Foreign currency translation adjustment 11.5 (26.6) 33.4
Unrealized gains (losses) on securities:      
Unrealized holding gains (losses) arising during period 3.8 (1.0) 3.4
Reclassification of gains included in net income (0.9) (0.8) (1.9)
Other comprehensive income (loss) 14.4 (28.4) 34.9
Comprehensive income $ 166.4 $ 154.6 $ 171.8
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Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 334.1 $ 369.3
Investments 33.4 26.6
Accounts receivable, less allowance for doubtful accounts of $4.1 and $4.0, respectively 188.5 172.2
Income tax receivable, net 6.3 1.8
Deferred commissions 16.9 14.8
Other current assets 24.0 16.9
Total current assets 603.2 601.6
Property, equipment, and capitalized software, net 154.7 143.5
Investments in unconsolidated entities 59.6 63.1
Goodwill 1,039.1 556.7
Operating Lease, Right-of-Use Asset 144.8 0.0
Intangible assets, net 333.4 73.9
Deferred Tax Assets, Net 10.7 0.0
Deferred commissions 13.5 10.3
Other assets 11.9 4.7
Total assets 2,370.9 1,453.8
Current liabilities:    
Accounts payable and accrued liabilities 58.9 54.4
Accrued compensation 137.5 109.5
Deferred revenue 250.1 195.8
Current portion of long-term debt 11.0 0.0
Operating Lease, Liability, Current 35.8 0.0
Other current liabilities 2.5 3.1
Total current liabilities 495.8 362.8
Operating Lease, Liability, Noncurrent 138.7 0.0
Accrued compensation 12.1 11.8
Deferred tax liability, net 95.0 22.2
Long-term debt 502.1 70.0
Deferred revenue 32.2 14.2
Other long-term liabilities 11.4 38.1
Total liabilities 1,287.3 519.1
Morningstar, Inc. shareholders’ equity:    
Common stock, no par value, 200,000,000 shares authorized, of which 42,848,359 and 42,642,118 shares were outstanding as of December 31, 2019 and December 31, 2018, respectively 0.0 0.0
Treasury stock at cost, 10,840,173 and 10,816,672 shares as of December 31, 2019 and December 31, 2018, respectively (728.7) (726.8)
Additional paid-in capital 655.0 621.7
Retained earnings 1,217.9 1,114.8
Accumulated other comprehensive loss:    
Currency translation adjustment (63.0) (74.5)
Unrealized gain (loss) on available-for-sale investments 2.4 (0.5)
Total accumulated other comprehensive loss (60.6) (75.0)
Total equity 1,083.6 934.7
Total liabilities and equity $ 2,370.9 $ 1,453.8
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Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 4.1 $ 4.0
Common stock, no par value $ 0 $ 0
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares outstanding 42,848,359 46,624,118
Treasury stock, shares 10,840,173 10,816,672
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Consolidated Statement of Equity - USD ($)
$ in Millions
Total
Common Stock
Treasury Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Non Controlling Interests
Balance at Dec. 31, 2016 $ 696.8   $ (667.9) $ 584.0 $ 861.9 $ (81.5) $ 0.3
Balance (in shares) at Dec. 31, 2016   42,932,994          
Increase (Decrease) in Stockholders' Equity              
Consolidated net income 136.9       136.9   0.0
Other Comprehensive Income (loss)              
Unrealized gain on available-for-sale investments, net of income tax 3.4         3.4  
Reclassification of adjustments for gains included in net income, net of income tax (1.9)         (1.9)  
Foreign currency translation adjustment, net 33.4         33.4 0.0
Other comprehensive income (loss) 34.9         34.9 0.0
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (4.6)   1.6 (6.2)      
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares)   161,445          
APIC, Share-based Payment Arrangement, Increase for Cost Recognition [Abstract]              
Stock-based compensation — restricted stock units 16.5     16.5      
Stock-based compensation — performance share awards 7.1     7.1      
Stock-based compensation — performance share awards 0.5     0.5      
Dividends declared ($1.14 per share) (40.1)       (40.1)    
Purchase of additional interest in majority-owned investment (1.2)     (0.9)     (0.3)
Common share repurchased (41.9)   (41.9)        
Common share repurchased (in shares)   (546,732)          
Balance at Dec. 31, 2017 804.9   (708.2) 601.0 958.7 (46.6) 0.0
Balance (in shares) at Dec. 31, 2017   42,547,707          
Cumulative Effect on Retained Earnings, Net of Tax 17.0       17.0    
Increase (Decrease) in Stockholders' Equity              
Consolidated net income 183.0       183.0   0.0
Other Comprehensive Income (loss)              
Unrealized gain on available-for-sale investments, net of income tax (1.0)         (1.0)  
Reclassification of adjustments for gains included in net income, net of income tax (0.8)         (0.8)  
Foreign currency translation adjustment, net (26.6)         (26.6) 0.0
Other comprehensive income (loss) (28.4)         (28.4) 0.0
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (13.2)   2.3 (15.5)      
Reclassification of awards previously liability-classified that were converted to equity 4.5     4.5      
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares)   278,656          
APIC, Share-based Payment Arrangement, Increase for Cost Recognition [Abstract]              
Stock-based compensation — restricted stock units 19.8     19.8      
Stock-based compensation — performance share awards 10.2     10.2      
Stock-based compensation — market stock units 1.7     1.7      
Dividends declared ($1.14 per share) (43.9)       (43.9)    
Common share repurchased (20.9)   (20.9)        
Common share repurchased (in shares)   (202,245)          
Balance at Dec. 31, 2018 $ 934.7 $ 0.0 (726.8) 621.7 1,114.8 (75.0) 0.0
Balance (in shares) at Dec. 31, 2018 46,624,118 42,624,118          
Increase (Decrease) in Stockholders' Equity              
Consolidated net income $ 152.0       152.0   0.0
Other Comprehensive Income (loss)              
Unrealized gain on available-for-sale investments, net of income tax 3.8         3.8  
Reclassification of adjustments for gains included in net income, net of income tax (0.9)         (0.9)  
Foreign currency translation adjustment, net 11.5         11.5 0.0
Other comprehensive income (loss) 14.4         14.4 0.0
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (15.2)   2.7 (17.9)      
Reclassification of awards previously liability-classified that were converted to equity 6.8     6.8      
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares)   266,176          
APIC, Share-based Payment Arrangement, Increase for Cost Recognition [Abstract]              
Stock-based compensation — restricted stock units 20.4     20.4      
Stock-based compensation — performance share awards 20.6     20.6      
Stock-based compensation — market stock units 3.4     3.4      
Dividends declared ($1.14 per share) (48.9)       (48.9)    
Common share repurchased (4.6)   (4.6)        
Common share repurchased (in shares)   (41,935)          
Balance at Dec. 31, 2019 $ 1,083.6 $ 0.0 $ (728.7) $ 655.0 $ 1,217.9 $ (60.6) $ 0.0
Balance (in shares) at Dec. 31, 2019 42,848,359 42,848,359          
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Consolidated Statement of Equity (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]      
Unrealized gain on available-for-sale investments, tax $ 1.3 $ (0.7) $ 1.8
Reclassification of adjustments for gains included in net income, tax $ 0.3 $ 0.3 $ 1.2
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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Operating activities      
Consolidated net income $ 152.0 $ 183.0 $ 136.9
Adjustments to reconcile consolidated net income to net cash flows from operating activities:      
Depreciation and amortization 117.7 96.7 91.2
Deferred income taxes (6.0) (1.1) (14.1)
Stock-based compensation expense 44.4 31.7 24.1
Provision for bad debt 2.3 2.5 2.3
Equity in net loss of unconsolidated entities 0.9 2.1 1.3
Gain on sale of business 0.0 0.0 (16.7)
Gain on sale of a product line 0.0 (10.5) 0.0
Gain on sale of equity investments (19.5) (5.6) 0.0
Other, net 1.1 (2.5) 1.8
Changes in operating assets and liabilities      
Accounts receivable 11.3 (29.6) (1.2)
Accounts payable and accrued liabilities 3.2 6.0 0.7
Accrued compensation and deferred commissions 17.1 15.6 20.2
Income taxes—current (11.6) (12.4) 9.7
Deferred revenue 28.1 28.6 2.5
Increase (Decrease) in Other Operating Assets and Liabilities, Net (6.6) 10.3 (8.6)
Cash provided by operating activities 334.4 314.8 250.1
Investing activities      
Purchases of investment securities (36.2) (35.7) (34.9)
Proceeds from maturities and sales of investment securities 35.8 51.2 42.2
Capital expenditures (80.0) (76.1) (66.6)
Acquisitions, net of cash acquired (681.9) (0.4) (1.0)
Proceeds from sale of a business, net 0.0 0.0 23.7
Proceeds from sale of a product line 0.0 10.5 0.0
Proceeds from sale of equity-method investments, net 17.6 7.9 0.0
Purchases of equity- and cost-method investments (1.5) (7.4) (24.8)
Other, net (0.1) 0.1 0.6
Cash used for investing activities (746.3) (49.9) (60.8)
Financing activities      
Common shares repurchased (4.9) (20.9) (42.3)
Dividends paid (47.8) (42.6) (39.3)
Proceeds from long-term debt 610.0 0.0 0.0
Repayment of long-term debt (165.6) (110.0) (70.0)
Proceeds from stock-option exercises 0.2 0.1 0.2
Employee taxes withheld for restricted stock units (15.2) (13.3) (4.8)
Other, net (3.0) (2.1) (1.3)
Cash provided by (used for) financing activities 373.7 (188.8) (157.5)
Effect of exchange rate changes on cash and cash equivalents 3.0 (15.0) 17.3
Net (decrease) increase in cash and cash equivalents (35.2) 61.1 49.1
Cash and cash equivalents—beginning of period 369.3 308.2 259.1
Cash and cash equivalents—end of period 334.1 369.3 308.2
Supplemental disclosure of cash flow information:      
Cash paid for income taxes 63.3 67.0 47.1
Interest Paid, Excluding Capitalized Interest, Operating Activities 11.0 3.7 5.4
Supplemental information of non-cash investing and financing activities:      
Unrealized gain (loss) on available-for-sale investments $ 3.9 $ (2.7) $ 2.0
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Description of Business
 12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business
Description of Business
 
Morningstar, Inc. and its subsidiaries (Morningstar, we, our, the company) provide independent investment research for investors around the world. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, retirement plan providers and sponsors, and private market/venture capital investors. We have operations in 27 countries.
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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies

The acronyms that appear in these Notes to our Consolidated Financial Statements refer to the following:
ASC
Accounting Standards Codification
ASU
Accounting Standards Update
EITF
Emerging Issues Task Force
FASB
Financial Accounting Standards Board
SEC
Securities and Exchange Commission


Principles of Consolidation. We conduct our business operations through wholly owned or majority-owned operating subsidiaries. The accompanying consolidated financial statements include the accounts of Morningstar, Inc. and our subsidiaries. We consolidate assets, liabilities, and results of operations of subsidiaries in which we have a controlling interest and eliminate all significant intercompany accounts and transactions.

We account for investments in entities in which we exercise significant influence, but do not control, using the equity method.

As part of our investment management operations, we manage certain funds outside of the U.S. that are considered variable interest entities. For the majority of these variable interest entities, we do not have a variable interest. In cases where we do have a variable interest, we are not the primary beneficiary. Accordingly, we do not consolidate any of these variable interest entities.

Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. Actual results may differ from these estimates.

Cash and Cash Equivalents. Cash and cash equivalents consist of cash and investments with original maturities of three months or less. We state them at cost, which approximates fair value. We state the portion of our cash equivalents that are invested in money market funds at fair value, as these funds are actively traded and have quoted market prices.

Investments. We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: held-to-maturity, trading, and available-for-sale.

•
Held-to-maturity: We classify certain investments, primarily certificates of deposit, as held-to-maturity securities, based on our intent and ability to hold these securities to maturity. We record held-to-maturity investments at amortized cost in our Consolidated Balance Sheets.

•
Trading: We classify certain other investments, primarily equity securities, as trading securities. We include realized and unrealized gains and losses associated with these investments as a component of our operating income in our Consolidated Statements of Income. We record these securities at their fair values in our Consolidated Balance Sheets.

•
Available-for-sale: Investments not considered held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities primarily consist of equity securities, exchange-traded funds, and mutual funds. We report unrealized gains and losses for available-for-sale securities as other comprehensive income (loss), net of related income taxes. We record these securities at their fair values in our Consolidated Balance Sheets.

Fair Value Measurements. FASB ASC 820, Fair Value Measurements (FASB ASC 820) defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under FASB ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value.

FASB ASC 820 uses a fair value hierarchy based on three broad levels of valuation inputs:

•
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.

We provide additional information about our cash equivalents and investments that are subject to valuation under FASB ASC 820 in Note 7.

Concentration of Credit Risk. For the years ended December 31, 2019, 2018, and 2017, no single customer represented 5% or more of our consolidated revenue. If receivables from our customers become delinquent, we begin a collections process. We maintain an allowance for doubtful accounts based on our estimate of the probable losses of accounts receivable.

Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation. We depreciate property and equipment using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter.

Computer Software and Internal Product Development Costs. We capitalize certain costs in accordance with FASB ASC 350-40, Internal-Use Software, FASB ASC 350-50, Website Development Costs, and FASB ASC 985, Software. Internal product development costs mainly consist of employee costs for developing new web-based products and certain major enhancements of existing products. We amortize these costs on a straight-line basis over the estimated economic life, which is generally three years. We include capitalized software development costs related to projects that have not been placed into service in our construction in progress balance.

The table below summarizes our depreciation expense related to capitalized developed software for the past three years:
(in millions)
 
2019
 
2018
 
2017
Capitalized developed software depreciation expense
 
$
61.1

 
$
42.8

 
$
30.6



The table below summarizes our capitalized software development costs for the past three years:
(in millions)
 
2019
 
2018
 
2017
Capitalized software development costs
 
$
64.8

 
$
53.5

 
$
46.3



Business Combinations. When we make acquisitions, we allocate the purchase price to the assets acquired, liabilities assumed, and goodwill. We follow FASB ASC 805, Business Combinations. We recognize and measure the fair value of the acquired operation as a whole, as well as the assets acquired and liabilities assumed, at their fair values as of the date we obtain control, regardless of the percentage ownership in the acquired operation or how the acquisition was achieved. We expense direct costs related to the business combination, such as advisory, accounting, legal, valuation, and other professional fees, as incurred. We recognize restructuring costs, including severance and relocation for employees of the acquired entity, as post-combination expenses unless the target entity meets the criteria of FASB ASC 420, Exit or Disposal Cost Obligations, on the acquisition date.

As part of the purchase price allocation, we follow the requirements of FASB ASC 740, Income Taxes (FASB ASC 740). This includes establishing deferred tax assets or liabilities reflecting the difference between the values assigned for financial statement purposes and income tax purposes. In certain acquisitions, the goodwill resulting from the purchase price allocation may not be deductible for income tax purposes. FASB ASC 740 prohibits recognition of a deferred tax asset or liability for temporary differences in goodwill if goodwill is not amortizable and deductible for tax purposes.

Goodwill. Changes in the carrying amount of our recorded goodwill are mainly the result of business acquisitions, divestitures, and the effect of foreign currency translations. In accordance with FASB ASC 350, Intangibles—Goodwill and Other, we do not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. We performed annual impairment reviews in the fourth quarter of 2019 and 2018. We did not record any impairment losses in 2019, 2018, and 2017.

Intangible Assets. We amortize intangible assets using the straight-line method over their estimated useful lives, which range from one to twenty years. We have no intangible assets with indefinite useful lives. In accordance with FASB ASC 360-10-35, Subsequent Measurement—Impairment or Disposal of Long-Lived Assets, we review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group. We did not record any impairment losses in 2019, 2018, and 2017.

Revenue Recognition. On January 1, 2018, we began recognizing revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (ASC Topic 606). The company has retained similar recognition and measurement upon adoption of ASC Topic 606 as under accounting standards in effect in prior periods.

Under ASC Topic 606, we recognize revenue by applying the following five-step model to each of our customer arrangements:

1.Identify the customer contract;
2.Identify the performance obligations in the contract;
3.Determine the transaction price;
4.Allocate the transaction price to the performance obligations; and
5.Recognize revenue when (or as) performance obligations are satisfied.

Revenues are recognized when (or as) performance obligations are satisfied by transferring a promised product or service to the customer. Products or services are transferred when (or as) the customer obtains control of the product or service. The transaction price for a customer arrangement is the amount we expect to be entitled to in exchange for transferring the promised product or service. The transaction price may include fixed amounts, variable amounts, or both. When the right to payment exceeds revenue recognized the result is an increase to deferred revenue. When a customer’s license-based contract is signed, the customer’s service is activated immediately. License-based arrangements, our largest source of revenue from customers, generally is billed for the entire term, or billed annually (if the contract term is longer than one year). Customers are typically given payment terms of thirty to sixty days, although some customers pay immediately.

Revenue from contracts with customers is derived from license-based arrangements, asset-based arrangements, and transaction-based arrangements.

License-based revenue, which represents subscription services available to customers and not a license under the accounting guidance, is generated through subscription contracts entered into with our customers of Morningstar Data, Morningstar Direct, Morningstar Advisor Workstation, Morningstar Enterprise Components, PitchBook Data, and other similar products. Our performance obligations under these contracts are typically satisfied over time, as the customer has access to the service during the term of the subscription license and the level of service is consistent during the contract period. Each individual day within the contract period is viewed to be a service and the entirety of the service subscription term is determined to be a series combined into a single performance obligation and recognized over-time and on a straight-line basis, typically over terms of 12 to 36 months.

Asset-based revenue is generated through consulting service contracts with our customers of Morningstar Investment Management, Workplace Solutions, and Morningstar Indexes. Our performance obligations under these contracts are a daily asset management performance obligation which is determined to be a daily service and thus satisfied over time as the customer receives continuous access to a service for the contract term. We recognize revenue daily over the contract term based on the value of assets under management and a tiered fee agreed to with the customer (typically in a range of 30-55 basis points of the customer’s average daily portfolio balance). Asset-based arrangements typically have a term of 12 to 36 months. The fees from such arrangements represent variable consideration, and the customer does not make separate purchasing decisions that result in additional performance obligations. Significant changes in the underlying fund assets, or significant disruptions in the market, are evaluated to determine if revisions on estimates of earned asset-based fees for the current quarter are needed. An estimate of the average daily portfolio balance is included in determining revenue for a given period. Estimates are based on the most recently reported quarter, and, as a result, it is unlikely a significant reversal of revenue would occur.

Transaction-based revenue is generated through contracts with our customers for the provision of DBRS Morningstar credit ratings, Internet advertising on morningstar.com, and Morningstar conferences. Our performance obligations for Morningstar Credit Ratings include the issuance of the rating and may include surveillance services for a period of time as agreed with the customer. We allocate the transaction price to the deliverables based on their relative selling price, which is generally based on the price we charge when the same deliverable is sold separately. Our performance obligation for the issuance of the rating is satisfied when the rating is issued, which is when we recognize the related revenue. Our performance obligations for surveillance services is satisfied over time, as the customer has access to the service during the surveillance period and the level of service is consistent during the contract period. Therefore, we recognize revenue for this performance obligation on a straight-line basis. Our performance obligations for Internet advertising and Morningstar conferences are satisfied as the service is delivered, and therefore we recognize revenue when the performance obligation is satisfied (as the customer’s advertisements are displayed and at the completion of the Morningstar conference).

Our contracts with customers may include multiple performance obligations. For most of these arrangements, we generally allocate revenue to each performance obligation based on its estimated standalone selling price. We generally determine standalone selling prices based on prices charged to customers when the same performance obligation is sold separately.

Our contracts with customers may include third-party involvement in providing goods or services to the customer. The inclusion of third-party content does not result in separate performance obligations because is it not delivered separately from the other service offerings. In these arrangements, the customer has contracted to receive a single, integrated and bundled solution with third-party and Morningstar content delivered via Morningstar’s subscription services. Revenue and related costs of revenue from third-party content is presented on a gross basis within the condensed consolidated financial statements.

Deferred revenue represents the portion of licenses or subscriptions billed or collected in advance of the service being provided which we expect to recognize as revenue in future periods.

Sales Commissions. Under prior accounting standards, the company expensed sales incentive compensation costs, (sales commissions) as incurred. However, upon adopting ASC Topic 606 and ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, on January 1, 2018, we began capitalizing sales commissions, which are considered directly attributable to obtaining a customer contract. Such costs are capitalized using a portfolio approach that aggregates these costs by legal entity within their geographical regions. Capitalized sales commissions are amortized using the straight-line method over a period that is consistent with the transfer of the products or services to the customer to which the sales commission relates. The period of transfer for each portfolio is the shorter of the weighted-average customer life, or the economic life of the underlying technology that delivers the products or services. As of December 31, 2019, the period of transfer was determined to be approximately two to three years. Discretionary amounts which are added to sales commission payments are expensed as incurred, as they are not considered to be directly attributable to obtaining a customer contract.

Stock-Based Compensation Expense. We account for our stock-based compensation expense in accordance with FASB ASC 718, Compensation—Stock Compensation (FASB ASC 718). Our stock-based compensation expense reflects grants of restricted stock units, performance share awards, market stock units, and stock options. We measure the fair value of our restricted stock units, restricted stock, and performance share awards on the grant date based on the closing market price of Morningstar's common stock on the day prior to the grant. For market stock units, we estimate the fair value of the awards using a Monte Carlo valuation model. For stock options, we estimate the fair value of our stock options on the date of grant using a Black-Scholes option-pricing model. We amortize the fair values to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period.

We estimate expected forfeitures of all employee stock-based awards and recognize compensation cost only for those awards expected to vest. We determine forfeiture rates based on historical experience and adjust the estimated forfeitures to actual forfeiture experience, as needed.

Income Taxes. We record deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and tax purposes in accordance with FASB ASC 740. FASB ASC 740 prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure for uncertain tax positions.

We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in our Consolidated Statements of Income. We classify liabilities related to unrecognized tax benefits as either current or long-term liabilities in our Consolidated Balance Sheet, depending on when we expect to make payment.

Leases. We determine if a contract is or contains a lease at the inception of the contract. For identified operating leases, we recognize a lease liability and right-of-use asset on the consolidated balance sheet. The right-of-use asset represents our right to use an underlying asset for the lease term, and the operating lease liability represents the company's obligation to make lease payments.
 
Our lease agreements consist primarily of real estate leases for office space, and non-real estate leases in which office equipment is primarily the underlying asset. In cases where an agreement contains both a lease and non-lease component, we do not allocate consideration to both components, but account for each as a single lease component by class of underlying asset. There are few instances of short-term agreements in our lease portfolio, which are typically arranged as needed and paid on a month-to-month basis. These leases are not recognized on the Consolidated Balance Sheet, but monthly lease expense is recognized on the Consolidated Statements of Income.
 
Operating lease liabilities and right-of-use assets are measured using the present value of future lease payments of the lease term at the commencement date. Right-of-use assets also include initial direct costs incurred by the company, net of pre-payments and lease incentives. In the absence of an explicit rate in the lease agreement, the discount rate used to calculate present value is equal to the company's incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the life of the lease and is included in general and administrative expenses on the Consolidated Statements of Income.
v3.19.3.a.u2
Credit Arrangements
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Credit Arrangements Credit Arrangements

Debt

The following table summarizes our total debt and long-term debt as of December 31, 2019 and December 31, 2018.
(in millions)
 
As of December 31, 2019
 
As of December 31, 2018
Term Facility, net of unamortized debt issuance costs of $1.3 million
 
$
443.1

 
$
—

Revolving Credit Facility
 
70.0

 
—

Prior Revolving Credit Facility
 
—

 
70.0

Total debt
 
$
513.1

 
$
70.0

Less: Current portion of long-term debt, net of unamortized debt issuance costs of $0.3 million
 
11.0

 
—

Long-term debt
 
$
502.1

 
$
70.0



Credit Agreement

In connection with the acquisition of Ratings Acquisition Corp (DBRS) on July 2, 2019, the company entered into a new senior credit agreement (the Credit Agreement). The Credit Agreement provides the company with a five-year multi-currency credit facility with an initial borrowing capacity of up to $750.0 million, including a $300.0 million revolving credit facility (the Revolving Credit Facility) and a term loan facility of $450.0 million (the Term Facility). The Credit Agreement also provides for the issuance of up to $50.0 million of letters of credit and a $100.0 million sub-limit for a swingline facility under the Revolving Credit Facility. The new Credit Agreement will expire on July 2, 2024. As of December 31, 2019, our total outstanding debt under the Credit Agreement was $513.1 million with borrowing availability of $230.0 million under the Revolving Credit Facility.

The interest rate applicable to any loan under the Credit Agreement is, at our option, either: (i) the applicable London interbank offered rate (LIBOR) plus an applicable margin for such loans, which ranges between 1.00% and 1.50%, based on our consolidated leverage ratio or (ii) the lender's base rate plus the applicable margin for such loans, which ranges between 0.00% and 0.50%, based on our consolidated leverage ratio.
The proceeds of the Term Facility and initial borrowings under the Revolving Credit Facility were used to finance the acquisition of DBRS. The proceeds of future borrowings under the Revolving Credit Facility may be used for working capital, capital expenditures or any other lawful corporate purpose.
The portions of deferred debt issuance costs related to the Revolving Credit Facility are included in other current and other non-current assets, and the portion of deferred debt issuance costs related to the Term Facility is reported as a reduction to the carrying amount of the Term Facility. Amortization of debt issuance costs related to the Revolving Credit Facility are amortized on a straight-line to interest expense over the term of the Credit Agreement. Amortization of debt issuance costs related to the Term Facility are amortized to interest expense using the effective interest method over the term of the Credit Agreement.

Prior Revolving Credit Facility

The new Credit Agreement replaced the prior $300.0 million five-year credit facility (the Prior Revolving Credit Facility), which was scheduled to expire on December 21, 2020. The Prior Revolving Credit Facility was repaid and terminated by the company upon execution of the Credit Agreement. In December 2018, we amended the Prior Revolving Credit Facility to extend the maturity date to December 21, 2020 with no other changes in terms. This credit agreement provided us with a borrowing capacity of up to $300.0 million and provided for issuance of up to $25.0 million of letters of credit. The interest rate applicable to any loan under the credit agreement was, at our option, either: (i) the applicable LIBOR plus an applicable margin for such loans, which ranged between 1.00% and 1.75%, based on our consolidated leverage ratio or (ii) the lender’s base rate plus the applicable margin for such loans which ranged between 2.00% and 2.75%, based on our consolidated leverage ratio.

Compliance with Covenants

The Credit Agreement contains financial covenants under which we: (i) may not exceed a maximum consolidated leverage ratio of 3.50 to 1.00 (or 3.75 to 1.00 for the four fiscal quarters following any material acquisition (as defined in the Credit Agreement)) and (ii) are required to maintain a minimum consolidated interest coverage ratio of not less than 3.00 to 1.00. We were in compliance with the financial covenants as of December 31, 2019 and December 31, 2018.
v3.19.3.a.u2
Income Per Share
 12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Income Per Share Income Per Share
 
The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share:

(in millions, except per share amounts)
 
2019
 
2018
 
2017
Basic net income per share:
 
 
 
 
 
 
Consolidated net income
 
$
152.0

 
$
183.0

 
$
136.9

 
 
 
 
 
 
 
Weighted average common shares outstanding
 
42.7

 
42.6

 
42.7

 
 
 
 
 
 
 
Basic net income per share
 
$
3.56

 
$
4.30

 
$
3.21

 
 
 
 
 
 
 
Diluted net income per share:
 
 
 
 
 
 
Consolidated net income
 
$
152.0

 
$
183.0

 
$
136.9

 
 


 


 
 
Weighted average common shares outstanding
 
42.7

 
42.6

 
42.7

Net effect of dilutive stock options and restricted stock units
 
0.5

 
0.4

 
0.3

Weighted average common shares outstanding for computing diluted income per share
 
43.2

 
43.0

 
43.0

 
 


 


 
 
Diluted net income per share
 
$
3.52

 
$
4.25

 
$
3.18


During the periods presented, the number of anti-dilutive restricted stock units, performance share awards, or market stock units to exclude from our calculation of diluted earnings per share was immaterial.

v3.19.3.a.u2
Revenue
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Revenue

Disaggregation of Revenue

The following table presents our revenue disaggregated by revenue type. Sales and usage-based taxes are excluded from revenue.
 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
License-based
 
$
812.7

 
$
751.6

 
$
667.7

Asset-based
 
211.6

 
200.4

 
182.2

Transaction-based
 
154.7

 
67.9

 
61.8

Consolidated revenue
 
$
1,179.0

 
$
1,019.9

 
$
911.7



License-based performance obligations are generally satisfied over time as the customer has access to the product or service during the term of the subscription license and the level of service is consistent during the contract period. License-based agreements typically have a term of 12 to 36 months. License-based revenue is generated from the sale of Morningstar Data, Morningstar Direct, Morningstar Advisor Workstation, PitchBook, and other similar products.

Asset-based performance obligations are satisfied over time as the customer receives continuous access to a service for the term. Asset-based arrangements typically have a term of 12 to 36 months. The asset-based fees represent variable consideration and the customer does not make separate purchasing decisions that result in additional performance obligations. Significant changes in the underlying fund assets, or significant disruptions in the market, are evaluated to determine if revisions of estimates of earned asset-based fees are needed for the current quarter. An estimate of variable consideration is included in the initial transaction price only to the extent it is probable that a significant reversal in the amount of the revenue recognized will not occur. Estimates of asset-based fees are based on the most recently completed quarter and, as a result, it is unlikely a significant reversal of revenue would occur. Asset-based revenue includes Morningstar Investment Management, Workplace Solutions, and Morningstar Indexes.

Transaction-based performance obligations are satisfied when the product or service is completed or delivered. Transaction-based revenue includes DBRS Morningstar credit ratings, Internet advertising, and conferences. DBRS Morningstar credit ratings revenue may include revenue from surveillance services, which is recognized over time, as the customer has access to the service during the surveillance period.

Contract liabilities

Our contract liabilities represent deferred revenue. We record contract liabilities when cash payments are received or due in advance of our performance, including amounts which may be refundable. The contract liabilities balance as of December 31, 2019 had a net increase of $72.3 million, primarily driven by cash payments received or payable in advance of satisfying our performance obligations. We recognized $194.9 million of revenue in 2019 that was included in the contract liabilities balance as of December 31, 2018.

We expect to recognize revenue related to our contract liabilities for 2020 and subsequent years as follows:
(in millions)
 
As of December 31, 2019
2020
 
$
437.1

2021
 
107.1

2022
 
44.4

2023
 
14.2

2024
 
8.9

Thereafter
 
55.0

Total
 
$
666.7



The aggregate amount of revenue we expect to recognize for 2020 and subsequent years is higher than our contract liability balance of $282.3 million as of December 31, 2019. The difference represents the value of future obligations for signed contracts where we have not yet begun to satisfy the performance obligations or have partially satisfied performance obligations.

The table above does not include variable consideration for unsatisfied performance obligations related to certain of our licensed-based, asset-based, and transaction-based contracts as of December 31, 2019. We are applying the optional exemption available under ASC Topic 606, as the variable consideration relates to these unsatisfied performance obligations being fulfilled as a series. The performance obligations related to these contracts are expected to be satisfied over the next 12 to 36 months as services are provided to the client. For licensed-based contracts, the consideration received for services performed is based on future user count, which is known at the time the services are performed. The variable consideration for this revenue can be affected by the number of user licenses, which cannot be reasonably estimated. For asset-based contracts, the consideration received for services performed is based on future asset values, which will be known at the time the services are performed. The variable consideration for this revenue can be affected by changes in the underlying value of fund assets due to client redemptions, additional investments, or movements in the market. For transaction-based contracts, the consideration received for services performed is based on the number of impressions, which will be known once impressions are created. The variable consideration for this revenue can be affected by the timing and quantity of impressions in any given period and cannot be reasonably estimated.

As of December 31, 2019, the table above also does not include revenue for unsatisfied performance obligations related to certain of our license-based and transaction-based contracts with duration of one year or less since we are applying the optional exemption under ASC Topic 606. For certain license-based contracts, the remaining performance obligation is expected to be less than one year based on the corresponding subscription terms. For transaction-based contracts, such as new credit rating issuances and conferences, the related performance obligations are expected to be satisfied within the next twelve months.

Contract Assets

Our contract assets represent accounts receivable, less allowance for doubtful accounts and deferred commissions.

The following table summarizes our contract assets balance:

 
 
As of December 31
(in millions)
 
2019
 
2018
Accounts receivable, less allowance for doubtful accounts
 
$
188.5

 
$
172.2

Deferred commissions
 
30.4

 
25.1

Total contract assets
 
$
218.9

 
$
197.3


The following table shows the change in our deferred commissions balance from January 1, 2019 to December 31, 2019:

 
 
(in millions)
Balance as of January 1, 2019
 
$
25.1

Commissions earned and capitalized
 
24.9

Amortization of capitalized amounts
 
(19.6
)
Balance as of December 31, 2019
 
$
30.4
v3.19.3.a.u2
Segment and Geographical Area Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment and Geographical Area Information Segment and Geographical Area Information

Segment Information

We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. Because we have a single reportable segment, all required financial segment information can be found directly in the Consolidated Financial Statements. The accounting policies for our reportable segment are the same as those described in Note 2. We evaluate the performance of our reporting segment based on revenue and operating income.

Geographical Area Information

The tables below summarize our revenue, long-lived assets, which includes property, equipment, and capitalized software, net and operating lease assets, by geographical area:

Revenue by geographical area
 
 
 
 
 
 
 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
United States
 
$
866.4

 
$
764.2

 
$
687.0

 
 
 
 
 
 
 
Asia
 
27.9

 
24.5

 
21.2

Australia
 
39.5

 
40.9

 
34.6

Canada
 
56.9

 
30.7

 
29.4

Continental Europe
 
88.0

 
81.2

 
69.9

United Kingdom
 
93.9

 
72.4

 
64.7

Other
 
6.4

 
6.0

 
4.9

Total International
 
312.6

 
255.7

 
224.7

 
 
 
 
 
 
 
Consolidated revenue
 
$
1,179.0

 
$
1,019.9

 
$
911.7


Property, equipment, and capitalized software, net by geographical area
 
 
 
 
 
 
As of December 31
(in millions)
 
2019
 
2018
United States
 
$
131.2

 
$
126.4

 
 
 
 
 
Asia
 
6.6

 
6.5

Australia
 
4.2

 
5.0

Canada
 
2.9

 
0.3

Continental Europe
 
2.3

 
1.3

United Kingdom
 
6.9

 
3.8

Other
 
0.6

 
0.2

Total International
 
23.5

 
17.1

 
 
 
 
 
Consolidated property, equipment, and capitalized software, net
 
$
154.7

 
$
143.5




Operating lease assets by geographical area
 
 
 
 
 
 
As of December 31
(in millions)
 
2019
 
2018
United States
 
$
86.4

 
$
—

 
 
 
 
 
Asia
 
20.2

 
—

Australia
 
5.8

 
—

Canada
 
7.5

 
—

Continental Europe
 
6.3

 
—

United Kingdom
 
17.9

 
—

Other
 
0.7

 
—

Total International
 
58.4

 
—

 
 
 
 
 
Consolidated operating lease assets
 
$
144.8

 
$
—


As of December 31, 2018, there were no operating lease assets on the balance sheet since Topic 842 became effective for the company on January 1, 2019.

The long-lived assets by geographical area table does not include deferred commissions, non-current as the balance is not significant.
v3.19.3.a.u2
Investments and Fair Value Measurements
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Investments and Fair Value Measurements Investments and Fair Value Measurements
 
We classify our investments into three categories: available-for-sale, held-to-maturity, and trading. Our investment portfolio consists of stocks, bonds, options, mutual funds, money market funds, or exchange-traded products that replicate the model portfolios and strategies created by Morningstar. These investment accounts may also include exchange-traded products where Morningstar is an index provider. We classify our investment portfolio as shown below:
 
 
 
As of December 31
(in millions)
 
2019
 
2018
Available-for-sale
 
$
25.8

 
$
20.1

Held-to-maturity
 
2.3

 
2.5

Trading securities
 
5.3

 
4.0

Total
 
$
33.4

 
$
26.6



The following table shows the cost, unrealized gains (losses), and fair values related to investments classified as available-for-sale and held-to-maturity:
 
 
 
As of December 31, 2019
 
As of December 31, 2018
(in millions)
 
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Fair
Value
 
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Fair
Value
Available-for-sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

   Equity securities and exchange-traded funds
 
$
19.0

 
$
2.9

 
$
—

 
$
21.9

 
$
17.9

 
$
1.2

 
$
(1.8
)
 
$
17.3

Mutual funds
 
3.7

 
0.2

 
—

 
3.9

 
3.0

 
—

 
(0.2
)
 
2.8

Total
 
$
22.7

 
$
3.1

 
$
—

 
$
25.8

 
$
20.9

 
$
1.2

 
$
(2.0
)
 
$
20.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 

 
 

 
 

 
 

Certificates of deposit
 
$
2.3

 
$
—

 
$
—

 
$
2.3

 
$
2.5

 
$
—

 
$
—

 
$
2.5

Total
 
$
2.3

 
$
—

 
$
—

 
$
2.3

 
$
2.5

 
$
—

 
$
—

 
$
2.5


 
As of December 31, 2019 and December 31, 2018, investments with unrealized losses for greater than a 12-month period were not material to the Consolidated Balance Sheets and were not deemed to have other than temporary declines in value.

The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of December 31, 2019 and December 31, 2018.

 
 
As of December 31, 2019
 
As of December 31, 2018
(in millions)
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Available-for-sale:
 
 

 
 

 
 

 
 

Equity securities, exchange-traded funds, and mutual funds
 
$
22.7

 
$
25.8

 
$
20.9

 
$
20.1

Total
 
$
22.7

 
$
25.8

 
$
20.9

 
$
20.1

 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
2.3

 
$
2.3

 
$
2.3

 
$
2.3

Due in one to three years
 
—

 
—

 
0.2

 
0.2

Total
 
$
2.3

 
$
2.3

 
$
2.5

 
$
2.5



The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Consolidated Statements of Income: 
(in millions)
 
2019
 
2018
 
2017
Realized gains
 
$
1.2

 
$
1.8

 
$
3.4

Realized losses
 
—

 
(0.8
)
 
(0.2
)
Realized gains, net
 
$
1.2

 
$
1.0

 
$
3.2


We determine realized gains and losses using the specific identification method.
The following table shows the net unrealized (losses) gains on trading securities as recorded in our Consolidated Statements of Income:
 
(in millions)
 
2019
 
2018
 
2017
Unrealized (losses) gains, net
 
$
0.6

 
$
(0.2
)
 
$
0.1



The table below shows the fair value of our assets subject to fair value measurements that are measured at fair value on a recurring basis using the fair value hierarchy:
 
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.

 
 
Fair Value
 
Fair Value Measurements as of December 31, 2019
 
 
as of
 
Using Fair Value Hierarchy
(in millions)
 
December 31, 2019
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments
 
 

 
 

 
 

 
 

Equity securities and exchange-traded funds
 
$
21.9

 
$
21.9

 
$
—

 
$
—

Mutual funds
 
3.9

 
3.9

 
—

 
—

Trading securities
 
5.3

 
5.3

 
—

 
—

Cash equivalents
 
0.9

 
0.9

 
—

 
—

Total
 
$
32.0

 
$
32.0

 
$
—

 
$
—

 
 
 
Fair Value
 
Fair Value Measurements as of December 31, 2018
 
 
as of
 
Using Fair Value Hierarchy
(in millions)
 
December 31, 2018
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments
 
 

 
 

 
 

 
 

Equity securities and exchange-traded funds
 
$
17.3

 
$
17.3

 
$
—

 
$
—

Mutual funds
 
2.8

 
2.8

 
—

 
—

Trading securities
 
4.0

 
4.0

 
—

 
—

Cash equivalents
 
0.1

 
0.1

 
—

 
—

Total
 
$
24.2

 
$
24.2

 
$
—

 
$
—


 
Based on our analysis of the nature and risks of our investments in equity securities and mutual funds and exchange-traded funds, we have determined that presenting each of these investment categories in the aggregate is appropriate.

We measure the fair value of money market funds, mutual funds, equity securities, and exchange-traded funds based on quoted prices in active markets for identical assets or liabilities. We did not hold any securities categorized as Level 2 or Level 3 as of December 31, 2019 and December 31, 2018.
v3.19.3.a.u2
Acquisitions, Goodwill, and Other Intangible Assets
 12 Months Ended
Dec. 31, 2019
Acquisitions, Goodwill, and Other Intangible Assets [Abstract]  
Acquisitions, Goodwill, and Other Intangible Assets Acquisitions, Goodwill, and Other Intangible Assets
 
2019 Acquisitions

AdviserLogic
On December 1, 2019, we acquired AdviserLogic, a cloud-based financial planning software platform for financial advisors in Australia. We began consolidating the financial results of AdviserLogic in our Consolidated Financial Statements on December 1, 2019.
DBRS
On July 2, 2019, we acquired 100% of the voting equity interests of DBRS for total cash consideration of $682.1 million. DBRS delivers comprehensive credit rating services and ongoing surveillance to customers in various market sectors across Canada, the U.S., and Europe. The combination of DBRS with Morningstar Credit Ratings' business (collectively, DBRS Morningstar) expands global asset class coverage and provides investors with fixed-income analysis and research through the combined platform.
We began consolidating the financial results of this acquisition in our Consolidated Financial Statements on July 2, 2019. DBRS Morningstar contributed $127.6 million of revenue and $123.5 million of operating expense during the year ended December 31, 2019. We incurred transaction-related costs of $6.5 million during the year 2019.
We accounted for this transaction using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. Morningstar was the accounting acquirer for purposes of accounting for the business combination. The values assigned to the assets acquired and liabilities assumed are based on preliminary estimates of fair value available as of December 31, 2019, and may be adjusted during the measurement period of up to 12 months from the date of acquisition as further information becomes available. Any changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill.
As of December 31, 2019, we completed our initial determination of the fair values of the acquired, identifiable assets and liabilities based on the information available. The primary areas that are not yet finalized due to information that may become available subsequently and may result in changes in the values assigned to various assets and liabilities include acquired intangible assets and current and deferred tax assets and liabilities. If additional information that existed as the time of the acquisition date becomes available within 12 months of the acquisition date, there may be adjustments to these initial fair value measurements.
The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
 
 
(in millions)
Cash consideration transferred
 
$
682.1

 
 
 
Cash and cash equivalents
 
$
8.5

Accounts receivable
 
28.8

Property, equipment, and capitalized software, net
 
12.8

Intangible assets, net
 
284.1

Goodwill
 
473.3

Operating lease assets
 
33.3

Other current and non-current assets
 
5.7

Deferred revenue
 
(43.2
)
Deferred tax liability, net
 
(66.6
)
Operating lease liabilities
 
(35.0
)
Other current and non-current liabilities
 
(19.6
)
Total fair value of DBRS
 
$
682.1


Accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value. We expect to collect substantially all of the gross contractual amounts receivable within a reasonable period of time after the acquisition date.
The preliminary allocation of the estimated fair values of the assets acquired and liabilities assumed includes $284.1 million of acquired intangible assets, as follows:
 
 
(in millions)
 
Weighted Average Useful Life (years)
Customer-related assets
 
$
219.1

 
10
Technology-based assets
 
29.4

 
5
Intellectual property (trademarks and trade names)
 
35.6

 
7
Total intangible assets
 
$
284.1

 
 


We recognized a preliminary net deferred tax liability of $66.6 million mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes.
Goodwill of $473.3 million represents the excess over the fair value of the net tangible and intangible assets acquired. Goodwill is not deductible for income tax purposes.
The following unaudited pro forma information presents a summary of our Condensed Consolidated Statements of Income for the year ended December 31, 2019 and 2018, as if we had completed the acquisition as of January 1, 2018.
This unaudited pro forma information is presented for illustrative purposes and is not intended to represent or be indicative of the actual results of operations or expected synergies of DBRS Morningstar that would have been achieved had the acquisition occurred at the beginning of the earliest period presented, nor is it intended to represent or be indicative of future results of operations.
In calculating the pro forma information below, we included an estimate of amortization expense related to the intangible assets acquired, depreciation expense due to changes in estimated remaining useful lives of long-lived assets, reduction in revenue as a result of the fair value adjustments to deferred revenue, and interest expense incurred on the long-term debt.
Unaudited Pro Forma Financial Information (in millions)
 
2019
 
2018
Revenue
 
$
1,259.2

 
$
1,184.5

Operating income
 
190.3

 
223.6

Net income
 
148.2

 
179.7

 
 
 
 
 
Basic net income per share
 
$
3.47

 
$
4.22

Diluted net income per share
 
$
3.43

 
$
4.18


Other acquisition activity during 2019 was not significant.

Goodwill
 
The following table shows the changes in our goodwill balances from January 1, 2018 to December 31, 2019:
 
 
 
(in millions)
Balance as of January 1, 2018
 
$
564.9

Other, primarily foreign currency translation
 
(8.2
)
Balance as of December 31, 2018
 
$
556.7

Acquisition of DBRS
 
473.3

Other, primarily foreign currency translation
 
9.1

Balance as of December 31, 2019
 
$
1,039.1



We did not record any impairment losses in 2019, 2018, or 2017 as the estimated fair value of our reporting unit exceeded its carrying value and we did not note any indicators of impairment. We perform our annual impairment testing during the fourth quarter of each year.

Intangible Assets

The following table summarizes our intangible assets: 
 
 
As of December 31, 2019
 
As of December 31, 2018
(in millions)
 
Gross
 
Accumulated
Amortization
 
Net
 
Weighted
Average
Useful  Life
(years)
 
Gross
 
Accumulated
Amortization
 
Net
 
Weighted
Average
Useful  Life
(years)
Intellectual property
 
$
66.7

 
$
(32.9
)
 
$
33.8

 
8
 
$
30.8

 
$
(29.2
)
 
$
1.6

 
9
Customer-related assets
 
377.9

 
(130.3
)
 
247.6

 
11
 
153.0

 
(111.7
)
 
41.3

 
12
Supplier relationships
 
0.2

 
(0.1
)
 
0.1

 
20
 
0.2

 
(0.1
)
 
0.1

 
20
Technology-based assets
 
163.7

 
(112.0
)
 
51.7

 
7
 
126.9

 
(96.3
)
 
30.6

 
7
Non-competition agreements
 
2.4

 
(2.2
)
 
0.2

 
5
 
2.4

 
(2.1
)
 
0.3

 
5
Total intangible assets
 
$
610.9

 
$
(277.5
)
 
$
333.4

 
10
 
$
313.3

 
$
(239.4
)
 
$
73.9

 
10

 
The following table summarizes our amortization expense related to intangible assets:
(in millions)
 
2019
 
2018
 
2017
Amortization expense
 
$
36.5

 
$
20.7

 
$
23.6


 
We did not record any impairment losses involving intangible assets in 2019, 2018, or 2017.

We amortize intangible assets using the straight-line method over their expected economic useful lives.

Based on acquisitions and divestitures completed through December 31, 2019, we expect intangible amortization expense for 2020 and subsequent years to be as follows:
 
 
(in millions)
2020
 
$
53.5

2021
 
50.2

2022
 
42.2

2023
 
40.0

2024
 
34.0

Thereafter
 
113.5

Total
 
$
333.4



Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful lives, impairments, and foreign currency translation.
v3.19.3.a.u2
Divestitures
 12 Months Ended
Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Divestitures Divestitures

2019 Divestitures

We did not complete any divestitures in 2019.

2018 Divestitures

In January 2018, we sold our 15(c) board consulting services product line for $10.5 million and recorded a gain of $10.5 million on the sale.

2017 Divestitures
On June 30, 2017, we sold HelloWallet to KeyBank National Association, a bank-based financial services company. We recorded a gain on the sale of $16.7 million. This gain mainly represents the sale proceeds of $23.7 million less $2.4 million of goodwill and the write-off of the remaining net book value of the acquired intangible assets. As some aspects of HelloWallet had been integrated into Morningstar's single reporting unit, the goodwill attributable to this transaction was calculated using a relative fair value allocation method.

The sale of HelloWallet did not meet the criteria to be classified as a discontinued operation because the divestiture did not represent a strategic shift that had, or will have, a major effect on our operations and financial results.

The following table summarizes the amounts included in the gain on sale of the business for the year ended December 31, 2017:
 
 
Year ended December 31
(in millions)
 
2017
Proceeds received
 
$
23.7

Intangibles and internally developed software
 
(4.5
)
Goodwill
 
(2.4
)
Other assets and liabilities
 
(0.1
)
Total gain on sale of business
 
$
16.7
v3.19.3.a.u2
Investments in Unconsolidated Entities
 12 Months Ended
Dec. 31, 2019
Investments in Unconsolidated Entities [Abstract]  
Investments in Unconsolidated Entities Investments in Unconsolidated Entities
 
Our investments in unconsolidated entities consist primarily of the following:
 
 
 
As of December 31
(in millions)
 
2019
 
2018
Investment in MJKK
 
$
24.0

 
$
23.9

Investment in Sustainalytics
 
25.3

 
25.7

Other-equity method investments
 
6.6

 
10.3

Investments accounted for using the cost method
 
3.7

 
3.2

Total investments in unconsolidated entities
 
$
59.6

 
$
63.1


 
Morningstar Japan K.K. Morningstar Japan K.K. (MJKK) develops and markets financial information products and services customized for the Japanese market. MJKK’s shares are traded on the Tokyo Stock Exchange under the ticker 47650. We account for our investment in MJKK using the equity method. The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price:
 
 
As of December 31
 
 
2019
 
2018
Morningstar’s approximate ownership of MJKK
 
30.4
%
 
30.4
%
Approximate market value of Morningstar’s ownership in MJKK:
 
 

 
 

Japanese yen (¥ in millions)
 
¥
10,319.0

 
¥
7,525.4

Equivalent U.S. dollars ($ in millions)
 
$
95.0

 
$
68.4



Sustainalytics Holding B.V. In July 2017, we acquired a minority stake in Sustainalytics Holding B.V. (Sustainalytics), which is an independent environmental, social, and governance and corporate governance research, ratings, and analysis firm supporting investors around the world with the development and implementation of responsible investment strategies. Our ownership in Sustainalytics was 43.4% as of December 31, 2019 and 44.0% as of December 31, 2018.
v3.19.3.a.u2
Property, Equipment, and Capitalized Software
 12 Months Ended
Dec. 31, 2019
Property, Plant and Equipment [Abstract]  
Property, Equipment, and Capitalized Software Property, Equipment, and Capitalized Software, net

The following table shows our property, equipment, and capitalized software, net summarized by major category:

 
 
As of December 31
(in millions)
 
2019
 
2018
Capitalized software
 
$
328.3

 
$
294.8

Capitalized equipment
 
70.1

 
83.5

Furniture and fixtures
 
33.7

 
29.6

Leasehold improvements
 
92.1

 
77.3

Telephone equipment
 
2.3

 
2.1

Construction in progress
 
5.5

 
7.9

Property, equipment, and capitalized software, at cost
 
532.0

 
495.2

Less accumulated depreciation
 
(377.3
)
 
(351.7
)
Property, equipment, and capitalized software, net
 
$
154.7

 
$
143.5



The following table summarizes our depreciation expense:
(in millions)
 
2019
 
2018
 
2017
Depreciation expense
 
$
81.2

 
$
76.0

 
$
67.6
v3.19.3.a.u2
Leases
 12 Months Ended
Dec. 31, 2019
Leases, Operating [Abstract]  
Operating Leases Leases

We lease office space and certain equipment under various operating and finance leases, with the majority of our lease portfolio consisting of operating leases for office space.

We determine whether an arrangement is or includes an embedded lease at contract inception. Operating lease assets and lease liabilities are recognized at commencement date and initially measured using the present value of lease payments over the defined lease term. Lease expense is recognized on a straight-line basis over the lease term. For finance leases, we also recognize a finance lease asset and finance lease liability at inception, with lease expense recognized as interest expense and amortization.

A contract is or contains an embedded lease if the contract meets all of the below criteria:

•
There is an identified asset;
•
We obtain substantially all of the economic benefits of the asset; and
•
We have the right to direct the use of the asset.

For initial measurement of the present value of lease payments and for subsequent measurement of lease modifications, we are required to use the rate implicit in the lease. However, most of our leases do not provide an implicit rate; therefore, we use our incremental borrowing rate, which is a collateralized rate. To apply the incremental borrowing rate, we used a portfolio approach and grouped leases based on similar lease terms in a manner whereby we reasonably expect that the application does not differ materially from a lease-by-lease approach.

Our leases have remaining lease terms of approximately 1 year to 14 years, which may include the option to extend the lease when it is reasonably certain we will exercise that option. We do not have lease agreements with residual value guarantees, sale leaseback terms, or material restrictive covenants.

Leases with an initial term of 12 months or less are not recognized on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term.



The following table summarizes our operating lease assets and lease liabilities:
Leases (in millions)
 
Balance Sheet Classification
 
As of December 31, 2019
Assets
 
 
 
 
Operating
 
Operating lease assets
 
$
144.8

 
 
 
 
 
Liabilities
 
 
 
 
Current
 
 
 
 
Operating
 
Operating lease liabilities
 
$
35.8

Non-current
 
 
 
 
Operating
 
Operating lease liabilities
 
138.7

Total lease liabilities
 
 
 
$
174.5



Our operating lease expense for the years ended December 31, 2019, 2018, and 2017 was $33.9 million, $32.5 million, and $30.3 million, respectively. Charges related to our operating leases that are variable and, therefore, not included in the measurement of the lease liabilities, were $12.7 million for the year ended December 31, 2019. We made lease payments of $33.1 million during the year ended December 31, 2019.

The following table shows our minimum future rental commitments due in each of the next five years and thereafter for operating leases:
Minimum Future Lease Commitments (in millions)
 
 
2020
 
$
41.7

2021
 
37.9

2022
 
25.4

2023
 
22.9

2024
 
17.7

Thereafter
 
55.7

Total lease payments
 
201.3

Adjustment for discount to present value
 
26.8

Total
 
$
174.5


As of December 31, 2019, we had $16.7 million related to an executed operating lease included in the table above, primarily for office space, that has not yet commenced. This lease will commence during 2020 with a lease term of 11 years.

The following table summarizes our weighted-average lease terms and weighted-average discount rates for our operating leases:
 
 
As of December 31, 2019
Weighted-average remaining lease term (in years)
 
6.6

 
 
 
Weighted-average discount rate
 
4.2
%
v3.19.3.a.u2
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation

Stock-Based Compensation Plans
 
Our shareholders approved the Morningstar 2011 Stock Incentive Plan (the 2011 Plan) on May 17, 2011. As of that date, we stopped granting awards under the Morningstar 2004 Stock Incentive Plan (the 2004 Plan). The 2004 Plan amended and restated the Morningstar 1993 Stock Option Plan, the Morningstar 2000 Stock Option Plan, and the Morningstar 2001 Stock Option Plan.
The 2011 Plan provides for a variety of stock-based awards, including, among other things, restricted stock units, restricted stock, performance share awards, market stock units, and stock options. We granted restricted stock units, restricted stock, and stock options under the 2004 Plan.
All of our employees and our non-employee directors are eligible for awards under the 2011 Plan.
Grants awarded under the 2011 Plan or the 2004 Plan that are forfeited, canceled, settled, or otherwise terminated without a distribution of shares, or shares withheld by us in connection with the exercise of options, will be available for awards under the 2011 Plan. For any shares subject to awards that are withheld by us in connection with the payment of any required income tax withholding, the 2011 Plan provides for the ability to have these shares become available for new awards, but this feature of the 2011 plan has not been implemented.
The following table summarizes the number of shares available for future grants under our 2011 Plan:
 
 
As of December 31
(in millions)
 
2019
Shares available for future grants
 
2.8


 
Accounting for Stock-Based Compensation Awards
 
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded in the past three years:
 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
Restricted stock units
 
$
20.4

 
$
19.8

 
$
16.5

Performance share awards
 
20.6

 
10.2

 
7.1

Market stock units
 
3.4

 
1.7

 
0.5

Total stock-based compensation expense
 
$
44.4

 
$
31.7

 
$
24.1

 
 
 
 
 
 
 
Income tax benefit related to the stock-based compensation expense
 
$
10.0

 
$
7.0

 
$
7.8



The following table summarizes the stock-based compensation expense included in each of our operating expense categories for the past three years:
 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
Cost of revenue
 
$
12.9

 
$
11.7

 
$
9.6

Sales and marketing
 
5.6

 
3.5

 
3.0

General and administrative
 
25.9

 
16.5

 
11.5

Total stock-based compensation expense
 
$
44.4

 
$
31.7

 
$
24.1



The following table summarizes the amount of unrecognized stock-based compensation expense as of December 31, 2019 and the expected number of months over which the expense will be recognized:
 
 
Unrecognized stock-based compensation expense (in millions)
 
Weighted average expected amortization period (months)
Restricted stock units
 
$
38.8

 
33
Market stock units
 
6.9

 
26
Total unrecognized stock-based compensation expense
 
$
45.7

 
32


In accordance with FASB ASC 718, we estimate forfeitures of employee stock-based awards and recognize compensation cost only for those awards expected to vest.
 
Restricted Stock Units
 
Restricted stock units (RSUs) represent the right to receive a share of Morningstar common stock when that unit vests. RSUs granted to employees vest ratably over a four-year period. RSUs granted to non-employee directors vest ratably over a three-year period.

We measure the fair value of our RSUs on the grant date based on the closing market price of the underlying common stock on the day prior to grant. We amortize that value to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period.

The following table summarizes restricted stock unit activity during the past three years:
Restricted Stock Units (RSUs)
 
Unvested
 
Vested but
Deferred
 
Total
 
Weighted
Average
Grant Date Value
per RSU
RSUs Outstanding - December 31, 2016
 
541,245

 
9,748

 
550,993

 
$
75.77

Granted
 
331,470

 
—

 
331,470

 
78.33

Dividend equivalents
 
—

 
78

 
78

 
60.99

Vested
 
(212,005
)
 
—

 
(212,005
)
 
75.38

Issued
 
—

 
(6,547
)
 
(6,547
)
 
49.40

Forfeited
 
(55,831
)
 
—

 
(55,831
)
 
76.49

RSUs Outstanding - December 31, 2017
 
604,879

 
3,279

 
608,158

 
$
77.52

Granted
 
243,614

 
—

 
243,614

 
108.60

Dividend equivalents
 
—

 
16

 
16

 
73.28

Vested
 
(279,774
)
 
—

 
(279,774
)
 
80.68

Issued
 
—

 
(3,295
)
 
(3,295
)
 
73.28

Forfeited
 
(41,254
)
 
—

 
(41,254
)
 
86.47

RSUs Outstanding - December 31, 2018
 
527,465

 
—

 
527,465

 
$
89.53

Granted
 
233,618

 
—

 
233,618

 
135.67

Vested
 
(269,917
)
 
—

 
(269,917
)
 
95.67

Forfeited
 
(31,721
)
 
—

 
(31,721
)
 
100.71

RSUs Outstanding - December 31, 2019
 
459,445

 
—

 
459,445

 
$
108.61



Market Stock Units
In May and November 2017, 2018, and 2019, executive officers, other than Joe Mansueto, and certain other employees, were granted market stock units (MSUs). These MSUs represent the right to receive a target number of shares that will vest at the end of a three-year performance period depending on the company’s total shareholder return over that three-year period. The MSUs that were granted in 2019 to the executive officers and certain other employees also have a revenue kicker that will provide an increased number of shares that can be earned if certain 2022 revenue goals are exceeded.

We measure the fair value of our MSUs on the grant date using a Monte Carlo valuation model. We amortize that value to stock-based compensation expense ratably over the vesting period.

We used the following assumptions to estimate the fair value of our MSUs during 2017, 2018, and 2019:
 
 
Assumptions for Monte Carlo Valuation Model
Grant Date
 
Expected volatility
Dividend yield
Risk-free interest rate
May 15, 2017
 
17.4
%
1.20
%
1.49
%
November 15, 2017
 
17.7
%
1.04
%
1.79
%
May 15, 2018
 
17.4
%
0.89
%
2.70
%
November 15, 2018
 
19.6
%
0.83
%
2.92
%
May 15, 2019
 
20.3
%
0.84
%
2.17
%
November 15, 2019
 
21.0
%
0.72
%
1.59
%


The table below shows MSUs granted and target market stock units outstanding as of December 31, 2019:
 
 
As of December 31, 2019
MSUs granted
 
124,102

Weighted average fair value per award
 
$
100.51

Number of target MSUs outstanding
 
119,331

Unamortized expense, based on current performance levels (in millions)
 
$
6.9


PitchBook Bonus Plan
In connection with our acquisition of PitchBook, we adopted a management bonus sub-plan under the 2011 Plan for certain employees of PitchBook (the PitchBook Plan). Pursuant to the terms of the PitchBook Plan, awards having an aggregate target value equal to $30.0 million will be available for issuance with annual grants of $7.5 million for 2017, $7.5 million in 2018, and $15.0 million in 2019. We also renewed the PitchBook Plan for the 2020-2022 period. Pursuant to the terms of this renewal, awards having an aggregate target value equal to $30.0 million will be available for issuance with annual grants of $7.5 million for 2020, $7.5 million in 2021, and $15.0 million in 2022.   

Each grant will consist of performance-based share unit awards, which will vest over a one-year period and will be measured primarily based on the achievement of certain annual revenue targets specifically related to PitchBook’s business. Upon achievement of these targets, earned performance units will be settled in shares of our common stock on a one-for-one basis. If PitchBook exceeds certain performance conditions, the PitchBook Plan participants will receive payment for performance units in excess of the aggregate target values described above. If PitchBook fails to meet threshold performance conditions, the PitchBook Plan participants will not be entitled to receive payment for any performance units.

The table below shows target performance share awards granted and shares that will be issued based on final performance levels for performance share awards granted as of December 31, 2019:
 
 
As of December 31, 2019
Target performance share awards granted
 
132,522

Weighted average fair value per award
 
$
112.16

Number of shares that will be issued based on final 2019 performance levels
 
182,211

Unamortized expense, based on current performance levels (in millions)
 
$
—



Stock Options

Stock options granted to employees vest ratably over a four-year period. Grants to our non-employee directors vest ratably over a three-year period. All grants expire 10 years after the date of grant.

In May 2011, we granted 86,106 stock options under the 2004 Stock Incentive Plan. We estimated the fair value of the options on the grant date using a Black-Scholes option-pricing model. The weighted average fair value of options granted during 2011 was $23.81 per share based on the following assumptions:
Assumptions for Black-Scholes Option Pricing Model
 
 
Expected life (years)
 
7.4

Volatility factor
 
35.1
%
Dividend yield
 
0.35
%
Interest rate
 
2.87
%


The following table summarizes stock option activity in the past three years for our various stock option grants:
 
 
2019
 
 
 
2018
 
 
 
2017
 
 
Option Grants
 
Underlying
Shares
 
Weighted
Average
Exercise
Price
 
Underlying
Shares
 
Weighted
Average
Exercise
Price
 
Underlying
Shares
 
Weighted
Average
Exercise
Price
Options outstanding—beginning of year
 
40,685

 
$
57.28

 
41,685

 
$
57.28

 
46,001

 
$
57.28

Granted
 
—

 
—

 
—

 
—

 
—

 
—

Canceled
 
—

 
—

 
—

 
—

 
—

 
—

Exercised
 
(3,416
)
 
57.28

 
(1,000
)
 
57.28

 
(4,316
)
 
57.28

Options outstanding—end of year
 
37,269

 
$
57.28

 
40,685

 
$
57.28

 
41,685

 
$
57.28

 
 
 
 
 
 
 
 
 
 
 
 
 
Options exercisable—end of year
 
37,269

 
$
57.28

 
40,685

 
$
57.28

 
41,685

 
$
57.28



The following table summarizes the total intrinsic value (difference between the market value of our stock on the date of exercise and the exercise price of the option) of options exercised:
(in millions)
 
2019
 
2018
 
2017
Intrinsic value of options exercised
 
$
0.4

 
$
0.1

 
$
0.1


 
The table below shows additional information for options outstanding and exercisable as of December 31, 2019:
 
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number of  Options
 
Weighted
Average
Remaining
Contractual
Life (years)
 
Weighted
Average
Exercise
Price
 
Aggregate
Intrinsic
Value
(in millions)
 
Exercisable Shares
 
Weighted Average Remaining Contractual Life (years)
 
Weighted Average Exercise Price
 
Aggregate
Intrinsic
Value
(in millions)
$57.28
 
37,269

 
1.37
 
$
57.28

 
$
3.5

 
37,269

 
1.37
 
$
57.28

 
$
3.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected to Vest
 
 
 
 
 
 
 
 
 
 
 
 
 
$57.28
 
37,269

 
1.37
 
$
57.28

 
$
3.5

 
 
 
 
 
 
 
 

 
The aggregate intrinsic value in the table above represents the total pretax intrinsic value all option holders would have received if they had exercised all outstanding options on December 31, 2019. The intrinsic value is based on our closing stock price of $151.31 on December 31, 2019.
v3.19.3.a.u2
Defined Contribution Plan
 12 Months Ended
Dec. 31, 2019
Defined Contribution Plan [Abstract]  
Defined Contribution Plan Defined-Contribution Plan

We sponsor a defined-contribution 401(k) plan, which allows our U.S.-based employees to voluntarily contribute pretax dollars up to a maximum amount allowable by the U.S. Internal Revenue Service. In 2019, 2018, and 2017, we made matching contributions to our 401(k) plan in the U.S. in an amount equal to 75 cents for every dollar of an employee's contribution, up to a maximum of 7% of the employee's compensation in the pay period.

The following table summarizes our matching contributions:
(in millions)
 
2019
 
2018
 
2017
401(k) matching contributions
 
$
12.0

 
$
11.0

 
$
10.4
v3.19.3.a.u2
Income Taxes
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
Income Tax Expense and Effective Tax Rate

The following table shows our income tax expense and our effective tax rate for the years ended December 31, 2019, 2018, and 2017:

(in millions)
 
2019
 
2018
 
2017
Income before income taxes and equity in net loss of unconsolidated entities
 
$
198.5

 
$
232.9

 
$
181.1

Equity in net loss of unconsolidated entities
 
(0.9
)
 
(2.1
)
 
(1.3
)
Total
 
$
197.6

 
$
230.8

 
$
179.8

Income tax expense
 
$
45.6

 
$
47.8

 
$
42.9

Effective tax rate
 
23.1
%
 
20.7
%
 
23.9
%


Our effective tax rate in 2019 was 23.1%, an increase of 2.4 percentage points compared with 20.7% in 2018, primarily due to minimum taxes and non-deductible expenses in 2019.

Our effective tax rate in 2018 was 20.7%, a decrease of 3.2 percentage points compared with 23.9% in 2017, primarily due to the 2018 tax impacts of the Tax Cuts and Jobs Act of 2017 (Tax Reform Act) and also because of updates to our provisional tax estimates recorded in 2017.

The amount of accumulated undistributed earnings of our foreign subsidiaries was approximately $240.5 million as of December 31, 2019. In February 2019, we repatriated approximately $45.8 million of these foreign earnings to the U.S. Otherwise, we generally consider our U.S. directly-owned foreign subsidiary earnings to be permanently reinvested. We have not recorded deferred income taxes on the $240.5 million primarily because most of these earnings were previously subject to the one-time deemed mandatory repatriation tax under the Tax Reform Act. We maintain a deferred tax liability for foreign withholding taxes on certain foreign affiliate parent companies that are not indefinitely reinvested.

The following table reconciles our income tax expense at the U.S. federal income tax rate to income tax expense as recorded:
 
 
2019
 
2018
 
2017
(in millions, except percentages)
 
Amount

 
%

 
Amount

 
%

 
Amount

 
%

Income tax expense at U.S. federal rate
 
$
41.5

 
21.0
 %
 
$
48.5

 
21.0
 %
 
$
63.0

 
35.0
 %
State income taxes, net of federal income tax benefit
 
7.5

 
3.8

 
7.4

 
3.2

 
3.0

 
1.7

Impacts of Tax Reform Act (1)
 
—

 
—

 
(2.3
)
 
(1.0
)
 
(10.6
)
 
(5.9
)
Stock-based compensation activity
 
(2.2
)
 
(1.1
)
 
(2.6
)
 
(1.1
)
 
0.3

 
0.2

Equity in net income of unconsolidated subsidiaries (including holding gains upon acquisition)
 
0.3

 
0.2

 
1.0

 
0.4

 
1.2

 
0.7

Book gain over tax gain on sale of HelloWallet
 
—

 
—

 
—

 
—

 
(6.8
)
 
(3.8
)
Net change in valuation allowance related to non-U.S. deferred tax assets, primarily net operating losses
 
(2.1
)
 
(1.1
)
 
(0.2
)
 
(0.1
)
 
0.1

 
0.1

Difference between U.S. federal statutory and foreign tax rates
 
1.1

 
0.6

 
0.2

 
0.1

 
(5.2
)
 
(2.9
)
Change in unrecognized tax benefits
 
(0.9
)
 
(0.5
)
 
1.0

 
0.4

 
1.2

 
0.7

Credits and incentives
 
(2.2
)
 
(1.1
)
 
(3.6
)
 
(1.6
)
 
(3.7
)
 
(2.1
)
Foreign tax provisions (GILTI, FDII, and BEAT)(2)
 
(1.4
)
 
(0.7
)
 
(3.7
)
 
(1.6
)
 
—

 
—

Non-deductible expenses and other, net
 
4.0

 
2.0

 
2.1

 
0.9

 
0.4

 
0.2

Total income tax expense
 
$
45.6

 
23.1
 %
 
$
47.8

 
20.7
 %
 
$
42.9

 
23.9
 %


(1) Impacts of the Tax Reform Act (change in U.S. tax rate, deemed mandatory repatriation, and deferred taxes).

(2) The Tax Reform Act established the Global Intangible Low-Tax Income (GILTI) provision, which taxes U.S. allocated expenses and certain income from foreign operations; the Foreign-Derived Intangible Income (FDII) provision, which allows a deduction against certain types of U.S. taxable income resulting in a lower effective U.S. tax rate on such income; and the Base Erosion Anti-abuse Tax (BEAT), which is a new minimum tax based on cross-border service payments by U.S. entities.

Income tax expense consists of the following:
 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
Current tax expense:
 
 
 
 
 
 
U.S.
 
 
 
 
 
 
Federal
 
$
28.3

 
$
31.0

 
$
40.3

State
 
9.4

 
11.1

 
6.6

Non-U.S.
 
14.0

 
12.3

 
9.9

Current tax expense
 
51.7

 
54.4

 
56.8

Deferred tax expense (benefit):
 
 
 
 
 
 
U.S.
 
 
 
 
 
 
Federal
 
0.2

 
(3.0
)
 
(10.9
)
State
 
—

 
(1.7
)
 
(1.9
)
Non-U.S.
 
(6.3
)
 
(1.9
)
 
(1.1
)
Deferred tax expense, net
 
(6.1
)
 
(6.6
)
 
(13.9
)
Income tax expense
 
$
45.6

 
$
47.8

 
$
42.9



The following table provides our income before income taxes and equity in net income (loss) of unconsolidated entities, generated by our U.S. and non-U.S. operations:

 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
U.S.
 
$
159.7

 
$
188.2

 
$
143.5

Non-U.S.
 
38.8

 
44.7

 
37.6

Income before income taxes and equity in net loss of unconsolidated entities
 
$
198.5

 
$
232.9

 
$
181.1



Deferred Tax Assets and Liabilities

We recognize deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and their tax basis. The tax effects of the temporary differences that give rise to the deferred income tax assets and liabilities are as follows:

 
 
As of December 31
(in millions)
 
2019
 
2018
Deferred tax assets:
 
 
 
 
Stock-based compensation expense
 
$
7.6

 
$
4.7

Accrued liabilities
 
18.0

 
17.0

Deferred revenue
 
5.5

 
3.7

Net operating loss carryforwards - U.S.
 
0.2

 
0.2

Net operating loss carryforwards - Non-U.S.
 
4.5

 
2.4

Deferred royalty revenue
 
0.2

 
0.3

Allowance for doubtful accounts
 
1.4

 
1.4

Deferred rent
 
8.0

 
7.4

Unrealized exchange losses, net
 
—

 
0.2

Other
 
0.6

 
0.6

Total deferred tax assets
 
46.0

 
37.9

 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
Acquired intangible assets
 
(82.7
)
 
(16.5
)
Property, equipment, and capitalized software
 
(25.8
)
 
(26.7
)
Unrealized exchange gains, net
 
(1.1
)
 
—

Prepaid expenses
 
(9.1
)
 
(7.1
)
Investments in unconsolidated entities
 
(6.3
)
 
(4.8
)
Withholding tax - foreign dividends
 
(3.0
)
 
(3.0
)
Total deferred tax liabilities
 
(128.0
)
 
(58.1
)
Net deferred tax liability before valuation allowance
 
(82.0
)
 
(20.2
)
Valuation allowance
 
(2.3
)
 
(2.0
)
Deferred tax liability, net
 
$
(84.3
)
 
$
(22.2
)


The deferred tax assets and liabilities are presented in our Consolidated Balance Sheets as follows:

 
 
As of December 31
(in millions)
 
2019
 
2018
Deferred tax asset, net
 
$
10.7

 
$
—

Deferred tax liability, net
 
(95.0
)
 
(22.2
)
Deferred tax liability, net
 
$
(84.3
)
 
$
(22.2
)


The following table summarizes our U.S. net operating loss (NOL) carryforwards:

 
 
As of December 31
(in millions)
 
 
2019
 
 
2018
 
 
 
Expiration Dates
 
 
Expiration Dates
U.S. federal NOLs subject to expiration dates
 
$
0.8

2023
 
$
1.0

2023


The net decrease in the U.S. federal NOL carryforwards as of December 31, 2019 compared with 2018 primarily reflects the utilization of U.S. federal NOLs. We have not recorded a valuation allowance against the U.S. federal NOLs of $0.8 million because we expect the benefit of the U.S. federal NOLs to be fully utilized before expiration.




The following table summarizes our NOL carryforwards for our non-U.S. operations:

 
 
As of December 31
(in millions)
 
2019
 
2018
Non-U.S. NOLs subject to expiration dates from 2021 through 2039
 
$
6.8

 
$
5.5

Non-U.S. NOLs with no expiration date
 
14.6

 
5.1

Total
 
$
21.4

 
$
10.6

 
 
 
 
 
Non-U.S. NOLs not subject to valuation allowances
 
$
11.7

 
$
2.0



The change in non-U.S. NOL carryforwards as of December 31, 2019 compared with 2018 primarily reflects U.K. NOLs for which a valuation allowance is not recorded. The losses may be carried forward indefinitely and have no expiration.

In assessing the realizability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We recorded a valuation allowance against all but approximately $11.7 million of the non-U.S. NOLs, reflecting the likelihood that the benefit of these NOLs will not be realized.

Unrecognized Tax Benefits

We conduct business globally and as a result, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. In the normal course of business, we are subject to examination by tax authorities throughout the world. The open tax years for our U.S. Federal tax returns and most state tax returns include the years 2014 to the present.

We are currently under audit by federal, state, and local tax authorities in the U.S. as well as tax authorities in certain non-U.S. jurisdictions. It is likely that the examination phase of some of these federal, state, local, and non-U.S. audits will conclude in 2020. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits.

As of December 31, 2019, our Consolidated Balance Sheet included a current liability of $10.8 million and a non-current liability of $3.0 million for unrecognized tax benefits. As of December 31, 2018, our Consolidated Balance Sheet included a current liability of $6.6 million and a noncurrent liability of $7.1 million for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits.

The table below reconciles the beginning and ending amount of the gross unrecognized tax benefits as follows:

(in millions)
 
2019
 
2018
Gross unrecognized tax benefits - beginning of the year
 
$
13.1

 
$
18.7

Increases as a result of tax positions taken during a prior-year period
 
3.0

 
0.8

Decreases as a result of tax positions taken during a prior-year period
 
(0.2
)
 
(0.3
)
Increases as a result of tax positions taken during the current period
 
1.2

 
1.6

Decreases relating to settlements with tax authorities
 
(3.8
)
 
(2.5
)
Reductions as a result of lapse of the applicable statute of limitations
 
(0.7
)
 
(5.2
)
Gross unrecognized tax benefits - end of the year
 
$
12.6

 
$
13.1



In 2019, we recorded a net increase of $4.0 million of gross unrecognized tax benefits before settlements and lapses of statutes of limitations, of which $1.1 million increased our income tax expense by $1.1 million.

In addition, we reduced our unrecognized tax benefits by $4.5 million for settlements and lapses of statutes of limitations, of which $2.1 million decreased our income tax expense by $1.9 million.

As of December 31, 2019, we had $12.6 million of gross unrecognized tax benefits, of which $12.6 million, if recognized, would reduce our effective income tax rate and decrease our income tax expense by $12.4 million.

We record interest and penalties related to uncertain tax positions as part of our income tax expense. The following table summarizes our gross liability for interest and penalties:

 
 
As of December 31
(in millions)
 
2019
 
2018
Liabilities for interest and penalties
 
$
1.6

 
$
1.3



We recorded the increase in the liabilities for penalties and interest, net of any tax benefits, to income tax expense in our Consolidated Statements of Income in 2019.
v3.19.3.a.u2
Contingencies
 12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies

We record accrued liabilities for litigation, regulatory, and other business matters when those matters represent loss contingencies that are both probable and estimable. In these cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, we do not establish an accrued liability. As litigation, regulatory, or other business matters develop, we evaluate whether such matters present a loss contingency that is probable and estimable on an ongoing basis.

Data Audits and Reviews
In our global data business, we include in our products, or directly redistribute to our customers data, and information licensed from third-party vendors. Our compliance with the terms of these licenses is subject to audit by the third-party vendors, and we also regularly review our compliance with the terms of the licenses. We are undergoing several such third-party vendor audits and internal reviews, and the results and findings may indicate that we may be required to make a payment for prior data usage. Due to lack of available information and data, as well as potential variations of any audit or internal review findings, we are not able to reasonably estimate a possible loss, or range of losses for some matters. While we cannot predict the outcomes, we do not believe the results of any audits or reviews will have a material adverse effect on our business, operating results, or financial position.

Credit Ratings Settlement
In November 2019, Morningstar Credit Ratings, LLC (“MCR”) reached an agreement in principle with the staff of the SEC to settle an investigation relating to certain sales and marketing practices at MCR's asset-backed securities group in 2015 and 2016. Assuming it is approved by the full Commission, the proposed settlement would involve a censure, a cease-and-desist order, certain undertakings by MCR, and a civil money penalty of $3.5 million, which has been accrued as of December 31, 2019. The settlement remains subject to approval by the SEC.

Other Matters
We are involved from time to time in regulatory investigations and legal proceedings that arise in the normal course of our business. While it is difficult to predict the outcome of any particular investigation or proceeding, we do not believe the result of any of these matters will have a material adverse effect on our business, operating results, or financial position.
v3.19.3.a.u2
Share Repurchase Program
 12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Share Repurchase Program Share Repurchase Program
 
In December 2017, the board of directors approved a new share repurchase program that authorizes the company to repurchase up to $500.0 million in shares of the company's outstanding common stock effective January 1, 2018. The authorization expires on December 31, 2020. We may repurchase shares from time to time at prevailing market prices on the open market or in private transactions in amounts that we deem appropriate.

As of December 31, 2019, we had repurchased a total of 244,180 shares for $25.6 million under this authorization, leaving $474.4 million available for future repurchases.
v3.19.3.a.u2
Recent Accounting Pronouncements
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Recent Accounting Pronouncements Recent Accounting Pronouncements

Recently adopted accounting pronouncements

Leases: On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. Expenses are recognized in the Consolidated Statements of Income in a manner similar to previous accounting guidance. Topic 842 originally required the use of a modified retrospective approach upon adoption. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842) - Targeted Improvements, which allows an additional transition method to adopt the new lease standard at the adoption date instead of the beginning of the earliest period presented. We elected this transition method at the adoption date of January 1, 2019.

We also chose to elect the following practical expedients upon adoption: not to reassess whether any expired or existing contracts are or contain leases, not to reassess the lease classification for any expired or existing leases, not to reassess initial direct costs for any existing leases, and not to separately identify lease and nonlease components (i.e. maintenance costs) except for real estate leases. Additionally, we elected the short-term lease exemption, and are only applying the requirements of Topic 842 to long-term leases (leases greater than 1 year).

The adoption of Topic 842 resulted in the presentation of $118.8 million of operating lease assets and $145.8 million of operating lease liabilities on the consolidated balance sheet as of March 31, 2019. At implementation, we also reclassified $27.9 million in deferred rent liabilities related to these leases, which decreased recognized operating lease assets. The new standard did not have a material impact on the statement of income. See Note 12 for additional information.

Income Statement-Reporting Comprehensive Income: On February 14, 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, to address a specific consequence of the Tax Reform Act by allowing a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Reform Act’s reduction of the U.S. federal corporate income tax rate. The new standard became effective for us on January 1, 2019 and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Reform Act is recognized. We did not elect to reclassify any stranded tax effects from accumulated other comprehensive income (loss) to retained earnings; therefore, the adoption did not have an impact on our consolidated financial statements and related disclosures.

Compensation—Stock Compensation: On June 20, 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to employees and nonemployees. Under the new standard, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term can be used in lieu of an expected term in the option-pricing model for nonemployee awards. The new standard became effective for us on January 1, 2019 and will be applied to all new awards granted after the date of adoption. The adoption did not have an impact on our consolidated financial statements and related disclosures.

Codification Improvements to Investments - Debt and Equity Securities: On July 17, 2018, the FASB issued ASU No. 2018-09, Codification Improvements (ASU No. 2018-09), which modifies the disclosure requirements on debt and equity securities related to ASC 320, Investments - Debt and Equity Securities. ASU No. 2018-09 removes the requirement for these disclosures when an entity provides summarized interim financial information. The new standard became effective for us on January 1, 2019. The adoption did not have an impact on our consolidated financial statements.

Recently issued accounting pronouncements not yet adopted

Current Expected Credit Losses: On June 16, 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU No. 2016-13), which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU No. 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. On April 25, 2019, the FASB issued ASU No. 2019-04, Codification Improvements (ASU No. 2019-04), which clarifies certain aspects of accounting for credit losses. On May 15, 2019, the FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief (ASU No. 2019-05), which allows entities to elect the fair value option on certain financial instruments. The new standard became effective for us on January 1, 2020 and is to be applied as a cumulative-effect adjustment to retained earnings. We believe that the most notable impact of these standards relate to our processes around the assessment of the adequacy of our allowance for doubtful accounts on accounts receivable and the recognition of credit losses. We are evaluating the effect that ASU No. 2016-13, ASU No. 2019-04, and ASU No. 2019-05 will have on our consolidated financial statements and related disclosures.

Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement: On August 28, 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU No. 2018-13), which eliminates, adds and modifies certain disclosure requirements around items such as transfers between Level 1 and 2, policy of timing of transfers, and valuation process for Level 3. The new standard became effective for us on January 1, 2020. As we only have Level 1 investments, the adoption of ASU No. 2018-13 will have no impact on our consolidated financial statements and related disclosures.

Cloud Computing: On August 29, 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement, which helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (CCA) by providing guidance for determining when an arrangement includes a software license and when an arrangement is solely a hosted CCA service. Under the new standard, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. The new guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. The new standard became effective for us on January 1, 2020. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued. Entities can choose to adopt the new guidance prospectively to eligible costs incurred on or after the date this guidance is first applied or retrospectively. We will apply the new guidance prospectively to eligible costs incurred on or after the effective date. We are evaluating the effect that ASU No. 2018-15 will have on our consolidated financial statements and related disclosures.

Income Taxes: On December 18, 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of ASC 740 Income Taxes and providing for simplification in several other areas. The new standard is effective for us on January 1, 2021. Early adoption is permitted. We have not made a decision on early adoption. We are evaluating the effect that ASU No. 2019-12 will have on our consolidated financial statements and related disclosures.
v3.19.3.a.u2
Selected Quarterly Financial Data
 12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data Selected Quarterly Financial Data (unaudited)
 
 
2019
 
2018
(in millions except per share amounts)
 
Q1
 
Q2
 
Q3
 
Q4
 
Q1
 
Q2
 
Q3
 
Q4
Revenue
 
$
258.9

 
$
273.9

 
$
313.8

 
$
332.4

 
$
243.5

 
$
252.4

 
$
261.3

(3) 
$
262.7

Total operating expense
 
209.4

 
223.1

 
264.2

 
292.7

 
196.0

 
198.8

 
195.9

 
213.4

Operating income
 
49.5

 
50.8

 
49.6

 
39.7

 
47.5

 
53.6

 
65.4

 
49.3

Non-operating (expense) income, net
 
(3.3
)
 
2.3

 
13.9

(1) 
(4.0
)
 
9.3

(2) 
1.4

 
7.3

 
(0.9
)
Income before income taxes and equity in net (loss) income of unconsolidated entities
 
46.2

 
53.1

 
63.5

 
35.7

 
56.8

 
55.0

 
72.7

 
48.4

Equity in net (loss) income of unconsolidated entities
 
(1.5
)
 
0.7

 
(1.1
)
 
1.0

 
(1.5
)
 
(0.4
)
 
0.3

 
(0.5
)
Income tax expense
 
11.5

 
11.7

 
13.3

 
9.1

 
13.4

 
12.8

 
16.1

 
5.5

Consolidated net income
 
$
33.2

 
$
42.1

 
$
49.1

 
$
27.6

 
$
41.9

 
$
41.8

 
$
56.9

 
$
42.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.78

 
$
0.99

 
$
1.15

 
$
0.64

 
$
0.99

 
$
0.98

 
$
1.33

 
$
0.99

Diluted

$
0.77

 
$
0.98

 
$
1.14

 
$
0.64

 
$
0.98

 
$
0.97

 
$
1.32

 
$
0.99

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.28

 
$
0.28

 
$
—

 
$
0.58

 
$
0.25

 
$
0.25

 
$
—

 
$
0.53

Dividends paid per common share
 
$
0.28

 
$
0.28

 
$
0.28

 
$
0.28

 
$
0.25

 
$
0.25

 
$
0.25

 
$
0.25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
42.6

 
42.7

 
42.8

 
42.8

 
42.5

 
42.6

 
42.6

 
42.7

Diluted
 
43.0

 
43.1

 
43.2

 
43.3

 
42.9

 
43.0

 
43.1

 
43.1


(1) Non-operating income for the third quarter of 2019 includes a $19.5 million gain related to the sale of an equity method investment.
(2) Non-operating income in first quarter of 2018 includes a $10.5 million gain related to the sale of our 15(c) board consulting services product line.
(3) Revenue in the third quarter of 2018 includes a $10.5 million revenue benefit related to an amended license agreement.
v3.19.3.a.u2
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Principles of Consolidation
Principles of Consolidation. We conduct our business operations through wholly owned or majority-owned operating subsidiaries. The accompanying consolidated financial statements include the accounts of Morningstar, Inc. and our subsidiaries. We consolidate assets, liabilities, and results of operations of subsidiaries in which we have a controlling interest and eliminate all significant intercompany accounts and transactions.

We account for investments in entities in which we exercise significant influence, but do not control, using the equity method.

As part of our investment management operations, we manage certain funds outside of the U.S. that are considered variable interest entities. For the majority of these variable interest entities, we do not have a variable interest. In cases where we do have a variable interest, we are not the primary beneficiary. Accordingly, we do not consolidate any of these variable interest entities.
Use of Estimates
Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. Actual results may differ from these estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents. Cash and cash equivalents consist of cash and investments with original maturities of three months or less. We state them at cost, which approximates fair value. We state the portion of our cash equivalents that are invested in money market funds at fair value, as these funds are actively traded and have quoted market prices.
Investments
Investments. We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: held-to-maturity, trading, and available-for-sale.

•
Held-to-maturity: We classify certain investments, primarily certificates of deposit, as held-to-maturity securities, based on our intent and ability to hold these securities to maturity. We record held-to-maturity investments at amortized cost in our Consolidated Balance Sheets.

•
Trading: We classify certain other investments, primarily equity securities, as trading securities. We include realized and unrealized gains and losses associated with these investments as a component of our operating income in our Consolidated Statements of Income. We record these securities at their fair values in our Consolidated Balance Sheets.

•
Available-for-sale: Investments not considered held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities primarily consist of equity securities, exchange-traded funds, and mutual funds. We report unrealized gains and losses for available-for-sale securities as other comprehensive income (loss), net of related income taxes. We record these securities at their fair values in our Consolidated Balance Sheets.
Fair Value Measurements
Fair Value Measurements. FASB ASC 820, Fair Value Measurements (FASB ASC 820) defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under FASB ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value.

FASB ASC 820 uses a fair value hierarchy based on three broad levels of valuation inputs:

•
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.

We provide additional information about our cash equivalents and investments that are subject to valuation under FASB ASC 820 in Note 7.
We classify our investments into three categories: available-for-sale, held-to-maturity, and trading. Our investment portfolio consists of stocks, bonds, options, mutual funds, money market funds, or exchange-traded products that replicate the model portfolios and strategies created by Morningstar. These investment accounts may also include exchange-traded products where Morningstar is an index provider.
Concentration of Credit Risk
Concentration of Credit Risk. For the years ended December 31, 2019, 2018, and 2017, no single customer represented 5% or more of our consolidated revenue. If receivables from our customers become delinquent, we begin a collections process. We maintain an allowance for doubtful accounts based on our estimate of the probable losses of accounts receivable.
Property, Equipment, and Depreciation
Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation. We depreciate property and equipment using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter.
Computer Software and Internal Product Development Costs
Computer Software and Internal Product Development Costs. We capitalize certain costs in accordance with FASB ASC 350-40, Internal-Use Software, FASB ASC 350-50, Website Development Costs, and FASB ASC 985, Software. Internal product development costs mainly consist of employee costs for developing new web-based products and certain major enhancements of existing products. We amortize these costs on a straight-line basis over the estimated economic life, which is generally three years. We include capitalized software development costs related to projects that have not been placed into service in our construction in progress balance.
Business Combinations
Business Combinations. When we make acquisitions, we allocate the purchase price to the assets acquired, liabilities assumed, and goodwill. We follow FASB ASC 805, Business Combinations. We recognize and measure the fair value of the acquired operation as a whole, as well as the assets acquired and liabilities assumed, at their fair values as of the date we obtain control, regardless of the percentage ownership in the acquired operation or how the acquisition was achieved. We expense direct costs related to the business combination, such as advisory, accounting, legal, valuation, and other professional fees, as incurred. We recognize restructuring costs, including severance and relocation for employees of the acquired entity, as post-combination expenses unless the target entity meets the criteria of FASB ASC 420, Exit or Disposal Cost Obligations, on the acquisition date.

As part of the purchase price allocation, we follow the requirements of FASB ASC 740, Income Taxes (FASB ASC 740). This includes establishing deferred tax assets or liabilities reflecting the difference between the values assigned for financial statement purposes and income tax purposes. In certain acquisitions, the goodwill resulting from the purchase price allocation may not be deductible for income tax purposes. FASB ASC 740 prohibits recognition of a deferred tax asset or liability for temporary differences in goodwill if goodwill is not amortizable and deductible for tax purposes.
Goodwill
Goodwill. Changes in the carrying amount of our recorded goodwill are mainly the result of business acquisitions, divestitures, and the effect of foreign currency translations. In accordance with FASB ASC 350, Intangibles—Goodwill and Other, we do not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. We performed annual impairment reviews in the fourth quarter of 2019 and 2018. We did not record any impairment losses in 2019, 2018, and 2017.

Intangible Assets
Intangible Assets. We amortize intangible assets using the straight-line method over their estimated useful lives, which range from one to twenty years. We have no intangible assets with indefinite useful lives. In accordance with FASB ASC 360-10-35, Subsequent Measurement—Impairment or Disposal of Long-Lived Assets, we review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group. We did not record any impairment losses in 2019, 2018, and 2017.
Revenue Recognition
Revenue Recognition. On January 1, 2018, we began recognizing revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (ASC Topic 606). The company has retained similar recognition and measurement upon adoption of ASC Topic 606 as under accounting standards in effect in prior periods.

Under ASC Topic 606, we recognize revenue by applying the following five-step model to each of our customer arrangements:

1.Identify the customer contract;
2.Identify the performance obligations in the contract;
3.Determine the transaction price;
4.Allocate the transaction price to the performance obligations; and
5.Recognize revenue when (or as) performance obligations are satisfied.

Revenues are recognized when (or as) performance obligations are satisfied by transferring a promised product or service to the customer. Products or services are transferred when (or as) the customer obtains control of the product or service. The transaction price for a customer arrangement is the amount we expect to be entitled to in exchange for transferring the promised product or service. The transaction price may include fixed amounts, variable amounts, or both. When the right to payment exceeds revenue recognized the result is an increase to deferred revenue. When a customer’s license-based contract is signed, the customer’s service is activated immediately. License-based arrangements, our largest source of revenue from customers, generally is billed for the entire term, or billed annually (if the contract term is longer than one year). Customers are typically given payment terms of thirty to sixty days, although some customers pay immediately.

Revenue from contracts with customers is derived from license-based arrangements, asset-based arrangements, and transaction-based arrangements.

License-based revenue, which represents subscription services available to customers and not a license under the accounting guidance, is generated through subscription contracts entered into with our customers of Morningstar Data, Morningstar Direct, Morningstar Advisor Workstation, Morningstar Enterprise Components, PitchBook Data, and other similar products. Our performance obligations under these contracts are typically satisfied over time, as the customer has access to the service during the term of the subscription license and the level of service is consistent during the contract period. Each individual day within the contract period is viewed to be a service and the entirety of the service subscription term is determined to be a series combined into a single performance obligation and recognized over-time and on a straight-line basis, typically over terms of 12 to 36 months.

Asset-based revenue is generated through consulting service contracts with our customers of Morningstar Investment Management, Workplace Solutions, and Morningstar Indexes. Our performance obligations under these contracts are a daily asset management performance obligation which is determined to be a daily service and thus satisfied over time as the customer receives continuous access to a service for the contract term. We recognize revenue daily over the contract term based on the value of assets under management and a tiered fee agreed to with the customer (typically in a range of 30-55 basis points of the customer’s average daily portfolio balance). Asset-based arrangements typically have a term of 12 to 36 months. The fees from such arrangements represent variable consideration, and the customer does not make separate purchasing decisions that result in additional performance obligations. Significant changes in the underlying fund assets, or significant disruptions in the market, are evaluated to determine if revisions on estimates of earned asset-based fees for the current quarter are needed. An estimate of the average daily portfolio balance is included in determining revenue for a given period. Estimates are based on the most recently reported quarter, and, as a result, it is unlikely a significant reversal of revenue would occur.

Transaction-based revenue is generated through contracts with our customers for the provision of DBRS Morningstar credit ratings, Internet advertising on morningstar.com, and Morningstar conferences. Our performance obligations for Morningstar Credit Ratings include the issuance of the rating and may include surveillance services for a period of time as agreed with the customer. We allocate the transaction price to the deliverables based on their relative selling price, which is generally based on the price we charge when the same deliverable is sold separately. Our performance obligation for the issuance of the rating is satisfied when the rating is issued, which is when we recognize the related revenue. Our performance obligations for surveillance services is satisfied over time, as the customer has access to the service during the surveillance period and the level of service is consistent during the contract period. Therefore, we recognize revenue for this performance obligation on a straight-line basis. Our performance obligations for Internet advertising and Morningstar conferences are satisfied as the service is delivered, and therefore we recognize revenue when the performance obligation is satisfied (as the customer’s advertisements are displayed and at the completion of the Morningstar conference).

Our contracts with customers may include multiple performance obligations. For most of these arrangements, we generally allocate revenue to each performance obligation based on its estimated standalone selling price. We generally determine standalone selling prices based on prices charged to customers when the same performance obligation is sold separately.

Our contracts with customers may include third-party involvement in providing goods or services to the customer. The inclusion of third-party content does not result in separate performance obligations because is it not delivered separately from the other service offerings. In these arrangements, the customer has contracted to receive a single, integrated and bundled solution with third-party and Morningstar content delivered via Morningstar’s subscription services. Revenue and related costs of revenue from third-party content is presented on a gross basis within the condensed consolidated financial statements.

Deferred revenue represents the portion of licenses or subscriptions billed or collected in advance of the service being provided which we expect to recognize as revenue in future periods.

Sales Commissions
Sales Commissions. Under prior accounting standards, the company expensed sales incentive compensation costs, (sales commissions) as incurred. However, upon adopting ASC Topic 606 and ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, on January 1, 2018, we began capitalizing sales commissions, which are considered directly attributable to obtaining a customer contract. Such costs are capitalized using a portfolio approach that aggregates these costs by legal entity within their geographical regions. Capitalized sales commissions are amortized using the straight-line method over a period that is consistent with the transfer of the products or services to the customer to which the sales commission relates. The period of transfer for each portfolio is the shorter of the weighted-average customer life, or the economic life of the underlying technology that delivers the products or services. As of December 31, 2019, the period of transfer was determined to be approximately two to three years. Discretionary amounts which are added to sales commission payments are expensed as incurred, as they are not considered to be directly attributable to obtaining a customer contract.

Stock-Based Compensation Expense
Stock-Based Compensation Expense. We account for our stock-based compensation expense in accordance with FASB ASC 718, Compensation—Stock Compensation (FASB ASC 718). Our stock-based compensation expense reflects grants of restricted stock units, performance share awards, market stock units, and stock options. We measure the fair value of our restricted stock units, restricted stock, and performance share awards on the grant date based on the closing market price of Morningstar's common stock on the day prior to the grant. For market stock units, we estimate the fair value of the awards using a Monte Carlo valuation model. For stock options, we estimate the fair value of our stock options on the date of grant using a Black-Scholes option-pricing model. We amortize the fair values to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period.

We estimate expected forfeitures of all employee stock-based awards and recognize compensation cost only for those awards expected to vest. We determine forfeiture rates based on historical experience and adjust the estimated forfeitures to actual forfeiture experience, as needed.
Income Taxes
Income Taxes. We record deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and tax purposes in accordance with FASB ASC 740. FASB ASC 740 prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure for uncertain tax positions.

We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in our Consolidated Statements of Income. We classify liabilities related to unrecognized tax benefits as either current or long-term liabilities in our Consolidated Balance Sheet, depending on when we expect to make payment.
Segment Information

Segment Information

We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. Because we have a single reportable segment, all required financial segment information can be found directly in the Consolidated Financial Statements. The accounting policies for our reportable segment are the same as those described in Note 2. We evaluate the performance of our reporting segment based on revenue and operating income.

Lessee, Leases [Policy Text Block]
Leases. We determine if a contract is or contains a lease at the inception of the contract. For identified operating leases, we recognize a lease liability and right-of-use asset on the consolidated balance sheet. The right-of-use asset represents our right to use an underlying asset for the lease term, and the operating lease liability represents the company's obligation to make lease payments.
 
Our lease agreements consist primarily of real estate leases for office space, and non-real estate leases in which office equipment is primarily the underlying asset. In cases where an agreement contains both a lease and non-lease component, we do not allocate consideration to both components, but account for each as a single lease component by class of underlying asset. There are few instances of short-term agreements in our lease portfolio, which are typically arranged as needed and paid on a month-to-month basis. These leases are not recognized on the Consolidated Balance Sheet, but monthly lease expense is recognized on the Consolidated Statements of Income.
 
Operating lease liabilities and right-of-use assets are measured using the present value of future lease payments of the lease term at the commencement date. Right-of-use assets also include initial direct costs incurred by the company, net of pre-payments and lease incentives. In the absence of an explicit rate in the lease agreement, the discount rate used to calculate present value is equal to the company's incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the life of the lease and is included in general and administrative expenses on the Consolidated Statements of Income.
v3.19.3.a.u2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Summary of Acronyms Used

The acronyms that appear in these Notes to our Consolidated Financial Statements refer to the following:
ASC
Accounting Standards Codification
ASU
Accounting Standards Update
EITF
Emerging Issues Task Force
FASB
Financial Accounting Standards Board
SEC
Securities and Exchange Commission
Summary of Depreciation for Internally Developed Software
The table below summarizes our depreciation expense related to capitalized developed software for the past three years:
(in millions)
 
2019
 
2018
 
2017
Capitalized developed software depreciation expense
 
$
61.1

 
$
42.8

 
$
30.6
Summary of Capitalized Software Development Costs
The table below summarizes our capitalized software development costs for the past three years:
(in millions)
 
2019
 
2018
 
2017
Capitalized software development costs
 
$
64.8

 
$
53.5

 
$
46.3
v3.19.3.a.u2
Credit Arrangements (Tables)
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Summary of Total Debt and Long-term Debt
The following table summarizes our total debt and long-term debt as of December 31, 2019 and December 31, 2018.
(in millions)
 
As of December 31, 2019
 
As of December 31, 2018
Term Facility, net of unamortized debt issuance costs of $1.3 million
 
$
443.1

 
$
—

Revolving Credit Facility
 
70.0

 
—

Prior Revolving Credit Facility
 
—

 
70.0

Total debt
 
$
513.1

 
$
70.0

Less: Current portion of long-term debt, net of unamortized debt issuance costs of $0.3 million
 
11.0

 
—

Long-term debt
 
$
502.1

 
$
70.0
v3.19.3.a.u2
Income Per Share (Tables)
 12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share:

(in millions, except per share amounts)
 
2019
 
2018
 
2017
Basic net income per share:
 
 
 
 
 
 
Consolidated net income
 
$
152.0

 
$
183.0

 
$
136.9

 
 
 
 
 
 
 
Weighted average common shares outstanding
 
42.7

 
42.6

 
42.7

 
 
 
 
 
 
 
Basic net income per share
 
$
3.56

 
$
4.30

 
$
3.21

 
 
 
 
 
 
 
Diluted net income per share:
 
 
 
 
 
 
Consolidated net income
 
$
152.0

 
$
183.0

 
$
136.9

 
 


 


 
 
Weighted average common shares outstanding
 
42.7

 
42.6

 
42.7

Net effect of dilutive stock options and restricted stock units
 
0.5

 
0.4

 
0.3

Weighted average common shares outstanding for computing diluted income per share
 
43.2

 
43.0

 
43.0

 
 


 


 
 
Diluted net income per share
 
$
3.52

 
$
4.25

 
$
3.18
v3.19.3.a.u2
Revenue (Tables)
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table presents our revenue disaggregated by revenue type. Sales and usage-based taxes are excluded from revenue.
 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
License-based
 
$
812.7

 
$
751.6

 
$
667.7

Asset-based
 
211.6

 
200.4

 
182.2

Transaction-based
 
154.7

 
67.9

 
61.8

Consolidated revenue
 
$
1,179.0

 
$
1,019.9

 
$
911.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
We expect to recognize revenue related to our contract liabilities for 2020 and subsequent years as follows:
(in millions)
 
As of December 31, 2019
2020
 
$
437.1

2021
 
107.1

2022
 
44.4

2023
 
14.2

2024
 
8.9

Thereafter
 
55.0

Total
 
$
666.7
Summary of Contract Assets and Change in Deferred Commissions
The following table summarizes our contract assets balance:

 
 
As of December 31
(in millions)
 
2019
 
2018
Accounts receivable, less allowance for doubtful accounts
 
$
188.5

 
$
172.2

Deferred commissions
 
30.4

 
25.1

Total contract assets
 
$
218.9

 
$
197.3


The following table shows the change in our deferred commissions balance from January 1, 2019 to December 31, 2019:

 
 
(in millions)
Balance as of January 1, 2019
 
$
25.1

Commissions earned and capitalized
 
24.9

Amortization of capitalized amounts
 
(19.6
)
Balance as of December 31, 2019
 
$
30.4
v3.19.3.a.u2
Segment and Geographical Area Information (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas
The tables below summarize our revenue, long-lived assets, which includes property, equipment, and capitalized software, net and operating lease assets, by geographical area:

Revenue by geographical area
 
 
 
 
 
 
 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
United States
 
$
866.4

 
$
764.2

 
$
687.0

 
 
 
 
 
 
 
Asia
 
27.9

 
24.5

 
21.2

Australia
 
39.5

 
40.9

 
34.6

Canada
 
56.9

 
30.7

 
29.4

Continental Europe
 
88.0

 
81.2

 
69.9

United Kingdom
 
93.9

 
72.4

 
64.7

Other
 
6.4

 
6.0

 
4.9

Total International
 
312.6

 
255.7

 
224.7

 
 
 
 
 
 
 
Consolidated revenue
 
$
1,179.0

 
$
1,019.9

 
$
911.7


Property, equipment, and capitalized software, net by geographical area
 
 
 
 
 
 
As of December 31
(in millions)
 
2019
 
2018
United States
 
$
131.2

 
$
126.4

 
 
 
 
 
Asia
 
6.6

 
6.5

Australia
 
4.2

 
5.0

Canada
 
2.9

 
0.3

Continental Europe
 
2.3

 
1.3

United Kingdom
 
6.9

 
3.8

Other
 
0.6

 
0.2

Total International
 
23.5

 
17.1

 
 
 
 
 
Consolidated property, equipment, and capitalized software, net
 
$
154.7

 
$
143.5




Operating lease assets by geographical area
 
 
 
 
 
 
As of December 31
(in millions)
 
2019
 
2018
United States
 
$
86.4

 
$
—

 
 
 
 
 
Asia
 
20.2

 
—

Australia
 
5.8

 
—

Canada
 
7.5

 
—

Continental Europe
 
6.3

 
—

United Kingdom
 
17.9

 
—

Other
 
0.7

 
—

Total International
 
58.4

 
—

 
 
 
 
 
Consolidated operating lease assets
 
$
144.8

 
$
—


As of December 31, 2018, there were no operating lease assets on the balance sheet since Topic 842 became effective for the company on January 1, 2019.

The long-lived assets by geographical area table does not include deferred commissions, non-current as the balance is not significant.
v3.19.3.a.u2
Investments and Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of Investments We classify our investment portfolio as shown below:
 
 
 
As of December 31
(in millions)
 
2019
 
2018
Available-for-sale
 
$
25.8

 
$
20.1

Held-to-maturity
 
2.3

 
2.5

Trading securities
 
5.3

 
4.0

Total
 
$
33.4

 
$
26.6
Unrealized Gain (Loss) on Investments
The following table shows the cost, unrealized gains (losses), and fair values related to investments classified as available-for-sale and held-to-maturity:
 
 
 
As of December 31, 2019
 
As of December 31, 2018
(in millions)
 
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Fair
Value
 
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Fair
Value
Available-for-sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

   Equity securities and exchange-traded funds
 
$
19.0

 
$
2.9

 
$
—

 
$
21.9

 
$
17.9

 
$
1.2

 
$
(1.8
)
 
$
17.3

Mutual funds
 
3.7

 
0.2

 
—

 
3.9

 
3.0

 
—

 
(0.2
)
 
2.8

Total
 
$
22.7

 
$
3.1

 
$
—

 
$
25.8

 
$
20.9

 
$
1.2

 
$
(2.0
)
 
$
20.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 

 
 

 
 

 
 

Certificates of deposit
 
$
2.3

 
$
—

 
$
—

 
$
2.3

 
$
2.5

 
$
—

 
$
—

 
$
2.5

Total
 
$
2.3

 
$
—

 
$
—

 
$
2.3

 
$
2.5

 
$
—

 
$
—

 
$
2.5
Investments Classified by Contractual Maturity Date
The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of December 31, 2019 and December 31, 2018.

 
 
As of December 31, 2019
 
As of December 31, 2018
(in millions)
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Available-for-sale:
 
 

 
 

 
 

 
 

Equity securities, exchange-traded funds, and mutual funds
 
$
22.7

 
$
25.8

 
$
20.9

 
$
20.1

Total
 
$
22.7

 
$
25.8

 
$
20.9

 
$
20.1

 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
2.3

 
$
2.3

 
$
2.3

 
$
2.3

Due in one to three years
 
—

 
—

 
0.2

 
0.2

Total
 
$
2.3

 
$
2.3

 
$
2.5

 
$
2.5
Schedule of Realized Gain (Loss)
The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Consolidated Statements of Income: 
(in millions)
 
2019
 
2018
 
2017
Realized gains
 
$
1.2

 
$
1.8

 
$
3.4

Realized losses
 
—

 
(0.8
)
 
(0.2
)
Realized gains, net
 
$
1.2

 
$
1.0

 
$
3.2
Unrealized Gain Loss On Trading Securities
The following table shows the net unrealized (losses) gains on trading securities as recorded in our Consolidated Statements of Income:
 
(in millions)
 
2019
 
2018
 
2017
Unrealized (losses) gains, net
 
$
0.6

 
$
(0.2
)
 
$
0.1
Fair Value, Assets Measured on Recurring Basis
The table below shows the fair value of our assets subject to fair value measurements that are measured at fair value on a recurring basis using the fair value hierarchy:
 
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.

 
 
Fair Value
 
Fair Value Measurements as of December 31, 2019
 
 
as of
 
Using Fair Value Hierarchy
(in millions)
 
December 31, 2019
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments
 
 

 
 

 
 

 
 

Equity securities and exchange-traded funds
 
$
21.9

 
$
21.9

 
$
—

 
$
—

Mutual funds
 
3.9

 
3.9

 
—

 
—

Trading securities
 
5.3

 
5.3

 
—

 
—

Cash equivalents
 
0.9

 
0.9

 
—

 
—

Total
 
$
32.0

 
$
32.0

 
$
—

 
$
—

 
 
 
Fair Value
 
Fair Value Measurements as of December 31, 2018
 
 
as of
 
Using Fair Value Hierarchy
(in millions)
 
December 31, 2018
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments
 
 

 
 

 
 

 
 

Equity securities and exchange-traded funds
 
$
17.3

 
$
17.3

 
$
—

 
$
—

Mutual funds
 
2.8

 
2.8

 
—

 
—

Trading securities
 
4.0

 
4.0

 
—

 
—

Cash equivalents
 
0.1

 
0.1

 
—

 
—

Total
 
$
24.2

 
$
24.2

 
$
—

 
$
—
v3.19.3.a.u2
Acquisitions, Goodwill, and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2019
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
 
 
(in millions)
Cash consideration transferred
 
$
682.1

 
 
 
Cash and cash equivalents
 
$
8.5

Accounts receivable
 
28.8

Property, equipment, and capitalized software, net
 
12.8

Intangible assets, net
 
284.1

Goodwill
 
473.3

Operating lease assets
 
33.3

Other current and non-current assets
 
5.7

Deferred revenue
 
(43.2
)
Deferred tax liability, net
 
(66.6
)
Operating lease liabilities
 
(35.0
)
Other current and non-current liabilities
 
(19.6
)
Total fair value of DBRS
 
$
682.1


Accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value. We expect to collect substantially all of the gross contractual amounts receivable within a reasonable period of time after the acquisition date.
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination
 
 
(in millions)
 
Weighted Average Useful Life (years)
Customer-related assets
 
$
219.1

 
10
Technology-based assets
 
29.4

 
5
Intellectual property (trademarks and trade names)
 
35.6

 
7
Total intangible assets
 
$
284.1

 
 
Pro Forma Information
Unaudited Pro Forma Financial Information (in millions)
 
2019
 
2018
Revenue
 
$
1,259.2

 
$
1,184.5

Operating income
 
190.3

 
223.6

Net income
 
148.2

 
179.7

 
 
 
 
 
Basic net income per share
 
$
3.47

 
$
4.22

Diluted net income per share
 
$
3.43

 
$
4.18
Schedule of Goodwill
The following table shows the changes in our goodwill balances from January 1, 2018 to December 31, 2019:
 
 
 
(in millions)
Balance as of January 1, 2018
 
$
564.9

Other, primarily foreign currency translation
 
(8.2
)
Balance as of December 31, 2018
 
$
556.7

Acquisition of DBRS
 
473.3

Other, primarily foreign currency translation
 
9.1

Balance as of December 31, 2019
 
$
1,039.1
Schedule of Intangible Assets
The following table summarizes our intangible assets: 
 
 
As of December 31, 2019
 
As of December 31, 2018
(in millions)
 
Gross
 
Accumulated
Amortization
 
Net
 
Weighted
Average
Useful  Life
(years)
 
Gross
 
Accumulated
Amortization
 
Net
 
Weighted
Average
Useful  Life
(years)
Intellectual property
 
$
66.7

 
$
(32.9
)
 
$
33.8

 
8
 
$
30.8

 
$
(29.2
)
 
$
1.6

 
9
Customer-related assets
 
377.9

 
(130.3
)
 
247.6

 
11
 
153.0

 
(111.7
)
 
41.3

 
12
Supplier relationships
 
0.2

 
(0.1
)
 
0.1

 
20
 
0.2

 
(0.1
)
 
0.1

 
20
Technology-based assets
 
163.7

 
(112.0
)
 
51.7

 
7
 
126.9

 
(96.3
)
 
30.6

 
7
Non-competition agreements
 
2.4

 
(2.2
)
 
0.2

 
5
 
2.4

 
(2.1
)
 
0.3

 
5
Total intangible assets
 
$
610.9

 
$
(277.5
)
 
$
333.4

 
10
 
$
313.3

 
$
(239.4
)
 
$
73.9

 
10
Schedule of Intangible Asset, Amortization Expense
 
The following table summarizes our amortization expense related to intangible assets:
(in millions)
 
2019
 
2018
 
2017
Amortization expense
 
$
36.5

 
$
20.7

 
$
23.6
Schedule of Expected Amortization Expense
Based on acquisitions and divestitures completed through December 31, 2019, we expect intangible amortization expense for 2020 and subsequent years to be as follows:
 
 
(in millions)
2020
 
$
53.5

2021
 
50.2

2022
 
42.2

2023
 
40.0

2024
 
34.0

Thereafter
 
113.5

Total
 
$
333.4
v3.19.3.a.u2
Divestitures (Tables)
 12 Months Ended
Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
The following table summarizes the amounts included in the gain on sale of the business for the year ended December 31, 2017:
 
 
Year ended December 31
(in millions)
 
2017
Proceeds received
 
$
23.7

Intangibles and internally developed software
 
(4.5
)
Goodwill
 
(2.4
)
Other assets and liabilities
 
(0.1
)
Total gain on sale of business
 
$
16.7
v3.19.3.a.u2
Investments in Unconsolidated Entities (Tables)
 12 Months Ended
Dec. 31, 2019
Investments in Unconsolidated Entities [Abstract]  
Schedule of Equity Method And Cost Method Investments
Our investments in unconsolidated entities consist primarily of the following:
 
 
 
As of December 31
(in millions)
 
2019
 
2018
Investment in MJKK
 
$
24.0

 
$
23.9

Investment in Sustainalytics
 
25.3

 
25.7

Other-equity method investments
 
6.6

 
10.3

Investments accounted for using the cost method
 
3.7

 
3.2

Total investments in unconsolidated entities
 
$
59.6

 
$
63.1
Schedule of Equity Method Investments The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price:
 
 
As of December 31
 
 
2019
 
2018
Morningstar’s approximate ownership of MJKK
 
30.4
%
 
30.4
%
Approximate market value of Morningstar’s ownership in MJKK:
 
 

 
 

Japanese yen (¥ in millions)
 
¥
10,319.0

 
¥
7,525.4

Equivalent U.S. dollars ($ in millions)
 
$
95.0

 
$
68.4
v3.19.3.a.u2
Property, Equipment, and Capitalized Software (Tables)
 12 Months Ended
Dec. 31, 2019
Property, Plant and Equipment [Abstract]  
Schedule of Property, Equipment, and Capitalized Software by Major Category

The following table shows our property, equipment, and capitalized software, net summarized by major category:

 
 
As of December 31
(in millions)
 
2019
 
2018
Capitalized software
 
$
328.3

 
$
294.8

Capitalized equipment
 
70.1

 
83.5

Furniture and fixtures
 
33.7

 
29.6

Leasehold improvements
 
92.1

 
77.3

Telephone equipment
 
2.3

 
2.1

Construction in progress
 
5.5

 
7.9

Property, equipment, and capitalized software, at cost
 
532.0

 
495.2

Less accumulated depreciation
 
(377.3
)
 
(351.7
)
Property, equipment, and capitalized software, net
 
$
154.7

 
$
143.5
Summary of Depreciation Expense
The following table summarizes our depreciation expense:
(in millions)
 
2019
 
2018
 
2017
Depreciation expense
 
$
81.2

 
$
76.0

 
$
67.6
v3.19.3.a.u2
Leases Leases (Tables)
 12 Months Ended
Dec. 31, 2019
Leases, Operating [Abstract]  
Summary of Operating Lease Assets and Lease Liabilities
The following table summarizes our operating lease assets and lease liabilities:
Leases (in millions)
 
Balance Sheet Classification
 
As of December 31, 2019
Assets
 
 
 
 
Operating
 
Operating lease assets
 
$
144.8

 
 
 
 
 
Liabilities
 
 
 
 
Current
 
 
 
 
Operating
 
Operating lease liabilities
 
$
35.8

Non-current
 
 
 
 
Operating
 
Operating lease liabilities
 
138.7

Total lease liabilities
 
 
 
$
174.5
Schedule of Minimum Future Rental Commitments
The following table shows our minimum future rental commitments due in each of the next five years and thereafter for operating leases:
Minimum Future Lease Commitments (in millions)
 
 
2020
 
$
41.7

2021
 
37.9

2022
 
25.4

2023
 
22.9

2024
 
17.7

Thereafter
 
55.7

Total lease payments
 
201.3

Adjustment for discount to present value
 
26.8

Total
 
$
174.5
Schedule of Rent Expense
The following table summarizes our weighted-average lease terms and weighted-average discount rates for our operating leases:
Schedule of Deferred Rent
 
 
As of December 31, 2019
Weighted-average remaining lease term (in years)
 
6.6

 
 
 
Weighted-average discount rate
 
4.2
%
v3.19.3.a.u2
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Schedule of Shares Available for Future Grants
The following table summarizes the number of shares available for future grants under our 2011 Plan:
 
 
As of December 31
(in millions)
 
2019
Shares available for future grants
 
2.8
Schedule of Stock-Based Compensation Expense
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded in the past three years:
 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
Restricted stock units
 
$
20.4

 
$
19.8

 
$
16.5

Performance share awards
 
20.6

 
10.2

 
7.1

Market stock units
 
3.4

 
1.7

 
0.5

Total stock-based compensation expense
 
$
44.4

 
$
31.7

 
$
24.1

 
 
 
 
 
 
 
Income tax benefit related to the stock-based compensation expense
 
$
10.0

 
$
7.0

 
$
7.8
Allocation of Stock-based Compensation Expense
The following table summarizes the stock-based compensation expense included in each of our operating expense categories for the past three years:
 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
Cost of revenue
 
$
12.9

 
$
11.7

 
$
9.6

Sales and marketing
 
5.6

 
3.5

 
3.0

General and administrative
 
25.9

 
16.5

 
11.5

Total stock-based compensation expense
 
$
44.4

 
$
31.7

 
$
24.1
Schedule of Uncategorized Stock-Based Compensation Expense
The following table summarizes the amount of unrecognized stock-based compensation expense as of December 31, 2019 and the expected number of months over which the expense will be recognized:
 
 
Unrecognized stock-based compensation expense (in millions)
 
Weighted average expected amortization period (months)
Restricted stock units
 
$
38.8

 
33
Market stock units
 
6.9

 
26
Total unrecognized stock-based compensation expense
 
$
45.7

 
32
Schedule of Restricted Stock Units Award Activity
The following table summarizes restricted stock unit activity during the past three years:
Restricted Stock Units (RSUs)
 
Unvested
 
Vested but
Deferred
 
Total
 
Weighted
Average
Grant Date Value
per RSU
RSUs Outstanding - December 31, 2016
 
541,245

 
9,748

 
550,993

 
$
75.77

Granted
 
331,470

 
—

 
331,470

 
78.33

Dividend equivalents
 
—

 
78

 
78

 
60.99

Vested
 
(212,005
)
 
—

 
(212,005
)
 
75.38

Issued
 
—

 
(6,547
)
 
(6,547
)
 
49.40

Forfeited
 
(55,831
)
 
—

 
(55,831
)
 
76.49

RSUs Outstanding - December 31, 2017
 
604,879

 
3,279

 
608,158

 
$
77.52

Granted
 
243,614

 
—

 
243,614

 
108.60

Dividend equivalents
 
—

 
16

 
16

 
73.28

Vested
 
(279,774
)
 
—

 
(279,774
)
 
80.68

Issued
 
—

 
(3,295
)
 
(3,295
)
 
73.28

Forfeited
 
(41,254
)
 
—

 
(41,254
)
 
86.47

RSUs Outstanding - December 31, 2018
 
527,465

 
—

 
527,465

 
$
89.53

Granted
 
233,618

 
—

 
233,618

 
135.67

Vested
 
(269,917
)
 
—

 
(269,917
)
 
95.67

Forfeited
 
(31,721
)
 
—

 
(31,721
)
 
100.71

RSUs Outstanding - December 31, 2019
 
459,445

 
—

 
459,445

 
$
108.61
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block]
The table below shows target performance share awards granted and shares that will be issued based on final performance levels for performance share awards granted as of December 31, 2019:
 
 
As of December 31, 2019
Target performance share awards granted
 
132,522

Weighted average fair value per award
 
$
112.16

Number of shares that will be issued based on final 2019 performance levels
 
182,211

Unamortized expense, based on current performance levels (in millions)
 
$
—
Market Units, Valuation Assumptions
We used the following assumptions to estimate the fair value of our MSUs during 2017, 2018, and 2019:
 
 
Assumptions for Monte Carlo Valuation Model
Grant Date
 
Expected volatility
Dividend yield
Risk-free interest rate
May 15, 2017
 
17.4
%
1.20
%
1.49
%
November 15, 2017
 
17.7
%
1.04
%
1.79
%
May 15, 2018
 
17.4
%
0.89
%
2.70
%
November 15, 2018
 
19.6
%
0.83
%
2.92
%
May 15, 2019
 
20.3
%
0.84
%
2.17
%
November 15, 2019
 
21.0
%
0.72
%
1.59
%
Schedule of Market Stocks Units
The table below shows MSUs granted and target market stock units outstanding as of December 31, 2019:
 
 
As of December 31, 2019
MSUs granted
 
124,102

Weighted average fair value per award
 
$
100.51

Number of target MSUs outstanding
 
119,331

Unamortized expense, based on current performance levels (in millions)
 
$
6.9
Schedule of Stock Options, Valuation Assumptions The weighted average fair value of options granted during 2011 was $23.81 per share based on the following assumptions:
Assumptions for Black-Scholes Option Pricing Model
 
 
Expected life (years)
 
7.4

Volatility factor
 
35.1
%
Dividend yield
 
0.35
%
Interest rate
 
2.87
%
Schedule of All Other Option Granted
The following table summarizes stock option activity in the past three years for our various stock option grants:
 
 
2019
 
 
 
2018
 
 
 
2017
 
 
Option Grants
 
Underlying
Shares
 
Weighted
Average
Exercise
Price
 
Underlying
Shares
 
Weighted
Average
Exercise
Price
 
Underlying
Shares
 
Weighted
Average
Exercise
Price
Options outstanding—beginning of year
 
40,685

 
$
57.28

 
41,685

 
$
57.28

 
46,001

 
$
57.28

Granted
 
—

 
—

 
—

 
—

 
—

 
—

Canceled
 
—

 
—

 
—

 
—

 
—

 
—

Exercised
 
(3,416
)
 
57.28

 
(1,000
)
 
57.28

 
(4,316
)
 
57.28

Options outstanding—end of year
 
37,269

 
$
57.28

 
40,685

 
$
57.28

 
41,685

 
$
57.28

 
 
 
 
 
 
 
 
 
 
 
 
 
Options exercisable—end of year
 
37,269

 
$
57.28

 
40,685

 
$
57.28

 
41,685

 
$
57.28
Schedule of Intrinsic Value of Stock Options Exercised During Period
The following table summarizes the total intrinsic value (difference between the market value of our stock on the date of exercise and the exercise price of the option) of options exercised:
(in millions)
 
2019
 
2018
 
2017
Intrinsic value of options exercised
 
$
0.4

 
$
0.1

 
$
0.1
Schedule of Options, Vested and Expected to Vest, Outstanding and Exercisable
The table below shows additional information for options outstanding and exercisable as of December 31, 2019:
 
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number of  Options
 
Weighted
Average
Remaining
Contractual
Life (years)
 
Weighted
Average
Exercise
Price
 
Aggregate
Intrinsic
Value
(in millions)
 
Exercisable Shares
 
Weighted Average Remaining Contractual Life (years)
 
Weighted Average Exercise Price
 
Aggregate
Intrinsic
Value
(in millions)
$57.28
 
37,269

 
1.37
 
$
57.28

 
$
3.5

 
37,269

 
1.37
 
$
57.28

 
$
3.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected to Vest
 
 
 
 
 
 
 
 
 
 
 
 
 
$57.28
 
37,269

 
1.37
 
$
57.28

 
$
3.5

 
 
 
 
 
 
 
 
v3.19.3.a.u2
Defined Contribution Plan (Tables)
 12 Months Ended
Dec. 31, 2019
Defined Contribution Plan [Abstract]  
Schedule of Defined Contribution Plan, Employer Matching Contributions
The following table summarizes our matching contributions:
(in millions)
 
2019
 
2018
 
2017
401(k) matching contributions
 
$
12.0

 
$
11.0

 
$
10.4
v3.19.3.a.u2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Operating Loss Carryforwards [Line Items]  
Schedule of Income Tax Expense and Effective Tax Rate
The following table shows our income tax expense and our effective tax rate for the years ended December 31, 2019, 2018, and 2017:

(in millions)
 
2019
 
2018
 
2017
Income before income taxes and equity in net loss of unconsolidated entities
 
$
198.5

 
$
232.9

 
$
181.1

Equity in net loss of unconsolidated entities
 
(0.9
)
 
(2.1
)
 
(1.3
)
Total
 
$
197.6

 
$
230.8

 
$
179.8

Income tax expense
 
$
45.6

 
$
47.8

 
$
42.9

Effective tax rate
 
23.1
%
 
20.7
%
 
23.9
%
Schedule of Effective Income Tax Rate Reconciliation
The following table reconciles our income tax expense at the U.S. federal income tax rate to income tax expense as recorded:
 
 
2019
 
2018
 
2017
(in millions, except percentages)
 
Amount

 
%

 
Amount

 
%

 
Amount

 
%

Income tax expense at U.S. federal rate
 
$
41.5

 
21.0
 %
 
$
48.5

 
21.0
 %
 
$
63.0

 
35.0
 %
State income taxes, net of federal income tax benefit
 
7.5

 
3.8

 
7.4

 
3.2

 
3.0

 
1.7

Impacts of Tax Reform Act (1)
 
—

 
—

 
(2.3
)
 
(1.0
)
 
(10.6
)
 
(5.9
)
Stock-based compensation activity
 
(2.2
)
 
(1.1
)
 
(2.6
)
 
(1.1
)
 
0.3

 
0.2

Equity in net income of unconsolidated subsidiaries (including holding gains upon acquisition)
 
0.3

 
0.2

 
1.0

 
0.4

 
1.2

 
0.7

Book gain over tax gain on sale of HelloWallet
 
—

 
—

 
—

 
—

 
(6.8
)
 
(3.8
)
Net change in valuation allowance related to non-U.S. deferred tax assets, primarily net operating losses
 
(2.1
)
 
(1.1
)
 
(0.2
)
 
(0.1
)
 
0.1

 
0.1

Difference between U.S. federal statutory and foreign tax rates
 
1.1

 
0.6

 
0.2

 
0.1

 
(5.2
)
 
(2.9
)
Change in unrecognized tax benefits
 
(0.9
)
 
(0.5
)
 
1.0

 
0.4

 
1.2

 
0.7

Credits and incentives
 
(2.2
)
 
(1.1
)
 
(3.6
)
 
(1.6
)
 
(3.7
)
 
(2.1
)
Foreign tax provisions (GILTI, FDII, and BEAT)(2)
 
(1.4
)
 
(0.7
)
 
(3.7
)
 
(1.6
)
 
—

 
—

Non-deductible expenses and other, net
 
4.0

 
2.0

 
2.1

 
0.9

 
0.4

 
0.2

Total income tax expense
 
$
45.6

 
23.1
 %
 
$
47.8

 
20.7
 %
 
$
42.9

 
23.9
 %
Schedule of Components of Income Tax Expense ncome tax expense consists of the following:
 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
Current tax expense:
 
 
 
 
 
 
U.S.
 
 
 
 
 
 
Federal
 
$
28.3

 
$
31.0

 
$
40.3

State
 
9.4

 
11.1

 
6.6

Non-U.S.
 
14.0

 
12.3

 
9.9

Current tax expense
 
51.7

 
54.4

 
56.8

Deferred tax expense (benefit):
 
 
 
 
 
 
U.S.
 
 
 
 
 
 
Federal
 
0.2

 
(3.0
)
 
(10.9
)
State
 
—

 
(1.7
)
 
(1.9
)
Non-U.S.
 
(6.3
)
 
(1.9
)
 
(1.1
)
Deferred tax expense, net
 
(6.1
)
 
(6.6
)
 
(13.9
)
Income tax expense
 
$
45.6

 
$
47.8

 
$
42.9
Schedule of Income before Income Tax
The following table provides our income before income taxes and equity in net income (loss) of unconsolidated entities, generated by our U.S. and non-U.S. operations:

 
 
Year ended December 31
(in millions)
 
2019
 
2018
 
2017
U.S.
 
$
159.7

 
$
188.2

 
$
143.5

Non-U.S.
 
38.8

 
44.7

 
37.6

Income before income taxes and equity in net loss of unconsolidated entities
 
$
198.5

 
$
232.9

 
$
181.1
Schedule of Deferred Tax Assets and Liabilities The tax effects of the temporary differences that give rise to the deferred income tax assets and liabilities are as follows:

 
 
As of December 31
(in millions)
 
2019
 
2018
Deferred tax assets:
 
 
 
 
Stock-based compensation expense
 
$
7.6

 
$
4.7

Accrued liabilities
 
18.0

 
17.0

Deferred revenue
 
5.5

 
3.7

Net operating loss carryforwards - U.S.
 
0.2

 
0.2

Net operating loss carryforwards - Non-U.S.
 
4.5

 
2.4

Deferred royalty revenue
 
0.2

 
0.3

Allowance for doubtful accounts
 
1.4

 
1.4

Deferred rent
 
8.0

 
7.4

Unrealized exchange losses, net
 
—

 
0.2

Other
 
0.6

 
0.6

Total deferred tax assets
 
46.0

 
37.9

 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
Acquired intangible assets
 
(82.7
)
 
(16.5
)
Property, equipment, and capitalized software
 
(25.8
)
 
(26.7
)
Unrealized exchange gains, net
 
(1.1
)
 
—

Prepaid expenses
 
(9.1
)
 
(7.1
)
Investments in unconsolidated entities
 
(6.3
)
 
(4.8
)
Withholding tax - foreign dividends
 
(3.0
)
 
(3.0
)
Total deferred tax liabilities
 
(128.0
)
 
(58.1
)
Net deferred tax liability before valuation allowance
 
(82.0
)
 
(20.2
)
Valuation allowance
 
(2.3
)
 
(2.0
)
Deferred tax liability, net
 
$
(84.3
)
 
$
(22.2
)
Schedule of Deferred Tax Assets and Liabilities Included in Consolidated Balance Sheets
The deferred tax assets and liabilities are presented in our Consolidated Balance Sheets as follows:

 
 
As of December 31
(in millions)
 
2019
 
2018
Deferred tax asset, net
 
$
10.7

 
$
—

Deferred tax liability, net
 
(95.0
)
 
(22.2
)
Deferred tax liability, net
 
$
(84.3
)
 
$
(22.2
)
Schedule of Gross Unrecognized Tax Benefits

The table below reconciles the beginning and ending amount of the gross unrecognized tax benefits as follows:

(in millions)
 
2019
 
2018
Gross unrecognized tax benefits - beginning of the year
 
$
13.1

 
$
18.7

Increases as a result of tax positions taken during a prior-year period
 
3.0

 
0.8

Decreases as a result of tax positions taken during a prior-year period
 
(0.2
)
 
(0.3
)
Increases as a result of tax positions taken during the current period
 
1.2

 
1.6

Decreases relating to settlements with tax authorities
 
(3.8
)
 
(2.5
)
Reductions as a result of lapse of the applicable statute of limitations
 
(0.7
)
 
(5.2
)
Gross unrecognized tax benefits - end of the year
 
$
12.6

 
$
13.1
Summary of Income Tax Examinations The following table summarizes our gross liability for interest and penalties:

 
 
As of December 31
(in millions)
 
2019
 
2018
Liabilities for interest and penalties
 
$
1.6

 
$
1.3
U.S [Member]  
Operating Loss Carryforwards [Line Items]  
Summary of Operating Loss Carryforwards
The following table summarizes our U.S. net operating loss (NOL) carryforwards:

 
 
As of December 31
(in millions)
 
 
2019
 
 
2018
 
 
 
Expiration Dates
 
 
Expiration Dates
U.S. federal NOLs subject to expiration dates
 
$
0.8

2023
 
$
1.0

2023
Non-U.S. [Member]  
Operating Loss Carryforwards [Line Items]  
Summary of Operating Loss Carryforwards
The following table summarizes our NOL carryforwards for our non-U.S. operations:

 
 
As of December 31
(in millions)
 
2019
 
2018
Non-U.S. NOLs subject to expiration dates from 2021 through 2039
 
$
6.8

 
$
5.5

Non-U.S. NOLs with no expiration date
 
14.6

 
5.1

Total
 
$
21.4

 
$
10.6

 
 
 
 
 
Non-U.S. NOLs not subject to valuation allowances
 
$
11.7

 
$
2.0
v3.19.3.a.u2
Selected Quarterly Financial Data (Tables)
 12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Data
 
 
2019
 
2018
(in millions except per share amounts)
 
Q1
 
Q2
 
Q3
 
Q4
 
Q1
 
Q2
 
Q3
 
Q4
Revenue
 
$
258.9

 
$
273.9

 
$
313.8

 
$
332.4

 
$
243.5

 
$
252.4

 
$
261.3

(3) 
$
262.7

Total operating expense
 
209.4

 
223.1

 
264.2

 
292.7

 
196.0

 
198.8

 
195.9

 
213.4

Operating income
 
49.5

 
50.8

 
49.6

 
39.7

 
47.5

 
53.6

 
65.4

 
49.3

Non-operating (expense) income, net
 
(3.3
)
 
2.3

 
13.9

(1) 
(4.0
)
 
9.3

(2) 
1.4

 
7.3

 
(0.9
)
Income before income taxes and equity in net (loss) income of unconsolidated entities
 
46.2

 
53.1

 
63.5

 
35.7

 
56.8

 
55.0

 
72.7

 
48.4

Equity in net (loss) income of unconsolidated entities
 
(1.5
)
 
0.7

 
(1.1
)
 
1.0

 
(1.5
)
 
(0.4
)
 
0.3

 
(0.5
)
Income tax expense
 
11.5

 
11.7

 
13.3

 
9.1

 
13.4

 
12.8

 
16.1

 
5.5

Consolidated net income
 
$
33.2

 
$
42.1

 
$
49.1

 
$
27.6

 
$
41.9

 
$
41.8

 
$
56.9

 
$
42.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.78

 
$
0.99

 
$
1.15

 
$
0.64

 
$
0.99

 
$
0.98

 
$
1.33

 
$
0.99

Diluted

$
0.77

 
$
0.98

 
$
1.14

 
$
0.64

 
$
0.98

 
$
0.97

 
$
1.32

 
$
0.99

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.28

 
$
0.28

 
$
—

 
$
0.58

 
$
0.25

 
$
0.25

 
$
—

 
$
0.53

Dividends paid per common share
 
$
0.28

 
$
0.28

 
$
0.28

 
$
0.28

 
$
0.25

 
$
0.25

 
$
0.25

 
$
0.25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
42.6

 
42.7

 
42.8

 
42.8

 
42.5

 
42.6

 
42.6

 
42.7

Diluted
 
43.0

 
43.1

 
43.2

 
43.3

 
42.9

 
43.0

 
43.1

 
43.1


(1) Non-operating income for the third quarter of 2019 includes a $19.5 million gain related to the sale of an equity method investment.
(2) Non-operating income in first quarter of 2018 includes a $10.5 million gain related to the sale of our 15(c) board consulting services product line.
(3) Revenue in the third quarter of 2018 includes a $10.5 million revenue benefit related to an amended license agreement.
v3.19.3.a.u2
Description of Business (Details)
Dec. 31, 2019
Countries
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of countries in which entity operates 27
v3.19.3.a.u2
Summary of Significant Accounting Policies (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Business Acquisition [Line Items]      
Depreciation expense $ 81.2 $ 76.0 $ 67.6
Capitalized software development costs $ 64.8 $ 53.5 46.3
Intangible assets useful life 10 years 10 years  
Minimum [Member]      
Business Acquisition [Line Items]      
Asset useful life 3 years    
Intangible assets useful life 1 year    
Revenue timing of cash payments 30 days    
Revenue performance period 12 months    
Revenue, basis over customer's average daily portfolio balance 0.30    
Sales commissions, period of transfer 2 years    
Maximum [Member]      
Business Acquisition [Line Items]      
Asset useful life 7 years    
Intangible assets useful life 20 years    
Revenue timing of cash payments 60 days    
Revenue performance period 36 months    
Revenue, basis over customer's average daily portfolio balance 0.55    
Sales commissions, period of transfer 3 years    
Internally developed software expense [Member]      
Business Acquisition [Line Items]      
Depreciation expense $ 61.1 $ 42.8 $ 30.6
Capitalized software [Member]      
Business Acquisition [Line Items]      
Asset useful life 3 years    
License-based | Minimum [Member]      
Business Acquisition [Line Items]      
Revenue performance period 12 months    
License-based | Maximum [Member]      
Business Acquisition [Line Items]      
Revenue performance period 36 months    
Asset-based | Minimum [Member]      
Business Acquisition [Line Items]      
Revenue performance period 12 months    
Asset-based | Maximum [Member]      
Business Acquisition [Line Items]      
Revenue performance period 36 months    
v3.19.3.a.u2
Credit Arrangements (Details) - USD ($)
Jul. 02, 2019
Dec. 31, 2018
Dec. 31, 2019
Line of Credit Facility [Line Items]      
Long-term Debt   $ 70,000,000.0 $ 513,100,000
Long-term debt   70,000,000.0 502,100,000
Remaining borrowing capacity     230,000,000.0
Long-term Debt, Current Maturities   0 11,000,000.0
Long-term Debt, Excluding Current Maturities   $ 70,000,000.0 502,100,000
London Interbank Offered Rate (LIBOR) [Member] | Credit agreement [Member]      
Line of Credit Facility [Line Items]      
Basis spread on variable rate debt   1.00%  
Medium-term Notes [Member] | Term Loan Facility [Member]      
Line of Credit Facility [Line Items]      
Long-term Debt   $ 0 443,100,000
Maximum borrowing capacity $ 450,000,000.0    
Line of Credit [Member] | Credit Agreement [Member]      
Line of Credit Facility [Line Items]      
Maximum borrowing capacity $ 750,000,000.0    
Debt covenant, consolidated interest coverage ratio 3.00    
Line of Credit [Member] | Credit Agreement [Member] | Maximum [Member]      
Line of Credit Facility [Line Items]      
Debt covenant, consolidated leverage ratio 3.75    
Line of Credit [Member] | Credit Agreement [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]      
Line of Credit Facility [Line Items]      
Basis spread on variable rate debt 1.50%    
Line of Credit [Member] | Credit Agreement [Member] | Maximum [Member] | Lender's base rate [Member]      
Line of Credit Facility [Line Items]      
Basis spread on variable rate debt 0.50%    
Line of Credit [Member] | Credit Agreement [Member] | Minimum [Member]      
Line of Credit Facility [Line Items]      
Debt covenant, consolidated leverage ratio 3.50    
Line of Credit [Member] | Credit Agreement [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]      
Line of Credit Facility [Line Items]      
Basis spread on variable rate debt 1.00%    
Line of Credit [Member] | Credit Agreement [Member] | Minimum [Member] | Lender's base rate [Member]      
Line of Credit Facility [Line Items]      
Basis spread on variable rate debt 0.00%    
Line of Credit [Member] | July 2019 Revolving Credit Facility [Member] | Credit agreement [Member]      
Line of Credit Facility [Line Items]      
Long-term Debt   0 70,000,000.0
Maximum borrowing capacity $ 300,000,000.0    
Line of Credit [Member] | July 2019 Revolving Credit Facility [Member] | Letters of credit [Member]      
Line of Credit Facility [Line Items]      
Maximum borrowing capacity 50,000,000.0    
Line of Credit [Member] | Prior Revolving Credit Facility [Member] | Credit agreement [Member]      
Line of Credit Facility [Line Items]      
Long-term Debt   70,000,000.0 $ 0
Maximum borrowing capacity   300,000,000.0  
Line of Credit [Member] | Prior Revolving Credit Facility [Member] | Letters of credit [Member]      
Line of Credit Facility [Line Items]      
Maximum borrowing capacity   $ 25,000,000.0  
Line of Credit [Member] | Prior Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Credit agreement [Member]      
Line of Credit Facility [Line Items]      
Basis spread on variable rate debt   1.75%  
Line of Credit [Member] | Prior Revolving Credit Facility [Member] | Maximum [Member] | Lender's base rate [Member] | Credit agreement [Member]      
Line of Credit Facility [Line Items]      
Basis spread on variable rate debt   2.75%  
Line of Credit [Member] | Prior Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Credit agreement [Member]      
Line of Credit Facility [Line Items]      
Basis spread on variable rate debt   1.00%  
Line of Credit [Member] | Prior Revolving Credit Facility [Member] | Minimum [Member] | Lender's base rate [Member] | Credit agreement [Member]      
Line of Credit Facility [Line Items]      
Basis spread on variable rate debt   2.00%  
Line of Credit [Member] | July 2019 Revolving Credit Facility [Member] | Credit agreement [Member]      
Line of Credit Facility [Line Items]      
Maximum borrowing capacity $ 100,000,000.0    
v3.19.3.a.u2
Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Basic net income per share attributable to Morningstar, Inc.:                      
Consolidated net income                   $ 183.0 $ 136.9
Weighted average common shares outstanding (in shares) 42.8 42.8 42.7 42.6 42.7 42.6 42.6 42.5 42.7 42.6 42.7
Basic net income per share (in dollars per share)                 $ 3.56 $ 4.30 $ 3.21
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest                 $ 152.0 $ 183.0 $ 136.9
Diluted net income per share attributable to Morningstar, Inc.:                      
Net income attributable to Morningstar, Inc.                   $ 183.0 $ 136.9
Weighted average common shares outstanding (in shares) 42.8 42.8 42.7 42.6 42.7 42.6 42.6 42.5 42.7 42.6 42.7
Net effect of dilutive stock options and restricted stock units (in shares)                 0.5 0.4 0.3
Weighted average common shares outstanding for computing diluted income per share (in shares) 43.3 43.2 43.1 43.0 43.1 43.1 43.0 42.9 43.2 43.0 43.0
Diluted net income per share (in dollars per share)                 $ 3.52 $ 4.25 $ 3.18
v3.19.3.a.u2
Revenue (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Disaggregation of Revenue [Line Items]      
Consolidated revenue $ 1,179.0 $ 1,019.9 $ 911.7
License-based      
Disaggregation of Revenue [Line Items]      
Consolidated revenue 812.7 751.6 667.7
Asset-based      
Disaggregation of Revenue [Line Items]      
Consolidated revenue 211.6 200.4 182.2
Transaction-based      
Disaggregation of Revenue [Line Items]      
Consolidated revenue $ 154.7 $ 67.9 $ 61.8
v3.19.3.a.u2
Revenue (Disaggregation of Revenue, Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenues $ 1,179.0 $ 1,019.9 $ 911.7
Minimum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 12 months    
Maximum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 36 months    
Licensed-based Revenue      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenues $ 812.7 751.6 667.7
Licensed-based Revenue | Minimum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 12 months    
Licensed-based Revenue | Maximum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 36 months    
Asset-based Revenue      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenues $ 211.6 $ 200.4 $ 182.2
Asset-based Revenue | Minimum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 12 months    
Asset-based Revenue | Maximum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 36 months    
v3.19.3.a.u2
Revenue (Contract Liabilities, Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Revenue from Contract with Customer [Abstract]  
Increase in contract liabilities from cash payments received $ 72.3
Contract liability $ 282.3
Minimum [Member]  
Disaggregation of Revenue [Line Items]  
Revenue performance period 12 months
Maximum [Member]  
Disaggregation of Revenue [Line Items]  
Revenue performance period 36 months
v3.19.3.a.u2
Revenue (Contract Liabilities, Expected Recognition) (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 437.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation 107.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation 44.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation 14.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation 8.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation 55.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 666.7
v3.19.3.a.u2
Revenue (Summary of Contract Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]    
Accounts receivable, less allowance for doubtful accounts $ 188.5 $ 172.2
Deferred commissions 30.4 25.1
Total contract assets $ 218.9 $ 197.3
v3.19.3.a.u2
Revenue (Change in Deferred Commissions) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Revenue from Contract with Customer [Abstract]  
Balance as of January 1, 2019 $ 25.1
Commissions earned and capitalized 24.9
Amortization of capitalized amounts (19.6)
Balance as of December 31, 2019 $ 30.4
v3.19.3.a.u2
Revenue Contract Liabilities (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Liability, Change in Timeframe, Performance Obligation Satisfied, Revenue Recognized $ 194.9
v3.19.3.a.u2
Segment and Geographical Area Information (Operating Lease Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]    
Operating Lease, Right-of-Use Asset $ 144.8 $ 0.0
United States [Member]    
Segment Reporting Information [Line Items]    
Operating Lease, Right-of-Use Asset 86.4 0.0
UNITED KINGDOM    
Segment Reporting Information [Line Items]    
Operating Lease, Right-of-Use Asset 17.9 0.0
Europe excluding the United Kingdom [Member]    
Segment Reporting Information [Line Items]    
Operating Lease, Right-of-Use Asset 6.3 0.0
AUSTRALIA    
Segment Reporting Information [Line Items]    
Operating Lease, Right-of-Use Asset 5.8 0.0
CANADA    
Segment Reporting Information [Line Items]    
Operating Lease, Right-of-Use Asset 7.5 0.0
Asia [Member]    
Segment Reporting Information [Line Items]    
Operating Lease, Right-of-Use Asset 20.2 0.0
Segment, Geographical, Group of Other Countries [Member]    
Segment Reporting Information [Line Items]    
Operating Lease, Right-of-Use Asset 0.7 0.0
Non United States [Member]    
Segment Reporting Information [Line Items]    
Operating Lease, Right-of-Use Asset $ 58.4 $ 0.0
v3.19.3.a.u2
Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue $ 332.4 $ 313.8 $ 273.9 $ 258.9 $ 262.7 $ 261.3 $ 252.4 $ 243.5 $ 1,179.0 $ 1,019.9 $ 911.7
Long-lived assets 154.7       143.5       154.7 143.5  
United States [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 866.4 764.2 687.0
Long-lived assets 131.2       126.4       131.2 126.4  
UNITED KINGDOM                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 93.9 72.4 64.7
Long-lived assets 6.9       3.8       6.9 3.8  
Europe excluding the United Kingdom [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 88.0 81.2 69.9
Long-lived assets 2.3       1.3       2.3 1.3  
AUSTRALIA                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 39.5 40.9 34.6
Long-lived assets 4.2       5.0       4.2 5.0  
CANADA                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 56.9 30.7 29.4
Long-lived assets 2.9       0.3       2.9 0.3  
Asia [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 27.9 24.5 21.2
Long-lived assets 6.6       6.5       6.6 6.5  
Segment, Geographical, Group of Other Countries [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 6.4 6.0 4.9
Long-lived assets 0.6       0.2       0.6 0.2  
Non United States [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 312.6 255.7 $ 224.7
Long-lived assets $ 23.5       $ 17.1       $ 23.5 $ 17.1  
v3.19.3.a.u2
Investments and Fair Value Measurements (Classification of Securities) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Fair Value Disclosures [Abstract]    
Available-for-sale $ 25.8 $ 20.1
Held-to-maturity 2.3 2.5
Trading securities, fair value disclosure 5.3 4.0
Total $ 33.4 $ 26.6
v3.19.3.a.u2
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Available-for-sale:      
Available-for-sale securities, amortized cost basis $ 22.7 $ 20.9  
Available-for-sale securities, unrealized gain 3.1 1.2  
Available-for-sale securities, unrealized loss 0.0 (2.0)  
Available-for-sale securities, current 25.8 20.1  
Held-to-maturity:      
Held-to-maturity securities, total amortized cost 2.3 2.5  
Held-to-maturity securities, unrealized gain 0.0 0.0  
Held-to-maturity securities, unrealized loss 0.0 0.0  
Held-to-maturity securities, current 2.3 2.5  
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract]      
Available-for-sale securities, realized gains 1.2 1.8 $ 3.4
Available-for-sale securities, realized losses 0.0 (0.8) (0.2)
Available-for-sale securities, realized gains, net 1.2 1.0 $ 3.2
Equity securities and exchange-traded funds      
Available-for-sale:      
Available-for-sale securities, amortized cost basis 19.0 17.9  
Available-for-sale securities, unrealized gain 2.9 1.2  
Available-for-sale securities, unrealized loss 0.0 (1.8)  
Available-for-sale securities, fair value disclosure 21.9 17.3  
Mutual funds      
Available-for-sale:      
Available-for-sale securities, amortized cost basis 3.7 3.0  
Available-for-sale securities, unrealized gain 0.2 0.0  
Available-for-sale securities, unrealized loss 0.0 (0.2)  
Available-for-sale securities, fair value disclosure 3.9 2.8  
Certificates of deposit [Member]      
Held-to-maturity:      
Held-to-maturity securities, total amortized cost 2.3 2.5  
Held-to-maturity securities, unrealized gain 0.0 0.0  
Held-to-maturity securities, unrealized loss 0.0 0.0  
Held-to-maturity securities, current $ 2.3 $ 2.5  
v3.19.3.a.u2
Investments and Fair Value Measurements (Cost and Fair Value of Securities) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Available-for-sale Securities, Debt Maturities [Abstract]    
Available-for-sale securities, equity securities and mutual funds, amortized cost basis $ 22.7 $ 20.9
Available-for-sale securities, equity securities and mutual funds, fair value 25.8 20.1
Available-for-sale securities, amortized cost basis 22.7 20.9
Available-for-sale securities, current 25.8 20.1
Debt Securities, Held-to-maturity, Maturity [Abstract]    
Held-to-maturity securities, due within one year, net carrying amount 2.3 2.3
Held-to-maturity securities, due within one year, fair value 2.3 2.3
Held-to-maturity securities, due within one year, carrying amount 0.0 0.2
Held-to-maturity securities, due within one year, fair value 0.0 0.2
Held-to-maturity securities, total amortized cost 2.3 2.5
Held-to-maturity securities, current $ 2.3 $ 2.5
v3.19.3.a.u2
Investments and Fair Value Measurements (Unrealized Gains on Trading Securities) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Fair Value Disclosures [Abstract]      
Unrealized gains (losses), net $ 0.6 $ (0.2) $ 0.1
v3.19.3.a.u2
Investments and Fair Value Measurements (Fair Value of Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Trading securities, fair value disclosure $ 5.3 $ 4.0
Equity securities and exchange-traded funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, fair value disclosure 21.9 17.3
Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, fair value disclosure 3.9 2.8
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Trading securities, fair value disclosure 5.3 4.0
Cash equivalents, fair value disclosure 0.9 0.1
Investments, fair value disclosure 32.0 24.2
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity securities and exchange-traded funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, fair value disclosure 21.9 17.3
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, fair value disclosure 3.9 2.8
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Trading securities, fair value disclosure 0.0 0.0
Cash equivalents, fair value disclosure 0.0 0.0
Investments, fair value disclosure 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity securities and exchange-traded funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, fair value disclosure 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, fair value disclosure 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Trading securities, fair value disclosure 0.0 0.0
Cash equivalents, fair value disclosure 0.0 0.0
Investments, fair value disclosure 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Equity securities and exchange-traded funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, fair value disclosure 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, fair value disclosure 0.0 0.0
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Trading securities, fair value disclosure 5.3 4.0
Cash equivalents, fair value disclosure 0.9 0.1
Investments, fair value disclosure 32.0 24.2
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | Equity securities and exchange-traded funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, fair value disclosure 21.9 17.3
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, fair value disclosure $ 3.9 $ 2.8
v3.19.3.a.u2
Acquisitions, Goodwill, and Other Intangible Assets (Narrative) (Details) - USD ($)
 12 Months Ended
Jul. 02, 2019
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Business Acquisition [Line Items]        
Impairment of intangible assets   $ 0 $ 0 $ 0
Goodwill   1,039,100,000 556,700,000 564,900,000
Goodwill impairment loss   0 $ 0 $ 0
DBRS [Member]        
Business Acquisition [Line Items]        
Percentage of voting interests acquired 100.00%      
Consideration $ 682,100,000      
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual   127,600,000    
Acquisition estimated fair value 682,100,000      
Intangible assets 284,100,000      
Goodwill $ 473,300,000      
Operating expense   123,500,000    
Transaction-related costs   $ 6,500,000    
v3.19.3.a.u2
Acquisitions, Goodwill, and Other Intangible Assets (Purchase Price Allocation) (Details) (Details) - USD ($)
$ in Millions
Jul. 02, 2019
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Business Acquisition, Purchase Price Allocation [Abstract]        
Goodwill   $ 1,039.1 $ 556.7 $ 564.9
DBRS [Member]        
Business Acquisition [Line Items]        
Consideration $ 682.1      
Business Acquisition, Purchase Price Allocation [Abstract]        
Cash and cash equivalents 8.5      
Accounts receivable and other current assets 28.8      
Intangible assets 284.1      
Goodwill 473.3      
Deferred revenue (43.2)      
Acquisition estimated fair value 682.1      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment 12.8      
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Operating Lease Asset 33.3      
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Other Assets 5.7      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities (66.6)      
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation (35.0)      
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Other Liabilities $ (19.6)      
v3.19.3.a.u2
Acquisitions, Goodwill, and Other Intangible Assets (Allocation of Acquired Intangible Assets) (Details) - DBRS [Member] - USD ($)
$ in Millions
 12 Months Ended
Jul. 02, 2019
Dec. 31, 2019
Business Acquisition [Line Items]    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities $ 66.6  
Finite-lived Intangible Assets Acquired 284.1  
Customer-related intangible assets [Member]    
Business Acquisition [Line Items]    
Weighted Average Useful Life (years)   10 years
Customer-related assets [Member]    
Business Acquisition [Line Items]    
Finite-lived Intangible Assets Acquired 219.1  
Technology-based assets [Member]    
Business Acquisition [Line Items]    
Finite-lived Intangible Assets Acquired 29.4  
Weighted Average Useful Life (years)   5 years
Trademarks [Member]    
Business Acquisition [Line Items]    
Finite-lived Intangible Assets Acquired $ 35.6  
Intellectual property (trademarks and trade names) [Member]    
Business Acquisition [Line Items]    
Weighted Average Useful Life (years)   7 years
v3.19.3.a.u2
Acquisitions, Goodwill, and Other Intangible Assets (Schedule of Goodwill) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Goodwill [Roll Forward]    
Goodwill, Beginning Balance $ 556.7 $ 564.9
Goodwill, Acquired During Period 473.3  
Goodwill, Ending Balance 1,039.1 556.7
Goodwill, Acquired in Other Acquisitions and Foreign Currency Translation Gain (Loss) $ (9.1) $ 8.2
v3.19.3.a.u2
Acquisitions, Goodwill, and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]    
Gross $ 610.9 $ 313.3
Accumulated Amortization (277.5) (239.4)
Net $ 333.4 $ 73.9
Weighted Average Useful Life (years) 10 years 10 years
Intellectual property [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 66.7 $ 30.8
Accumulated Amortization (32.9) (29.2)
Net $ 33.8 $ 1.6
Weighted Average Useful Life (years) 8 years 9 years
Customer-related assets [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 377.9 $ 153.0
Accumulated Amortization (130.3) (111.7)
Net $ 247.6 $ 41.3
Weighted Average Useful Life (years) 11 years 12 years
Supplier relationships [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 0.2 $ 0.2
Accumulated Amortization (0.1) (0.1)
Net $ 0.1 $ 0.1
Weighted Average Useful Life (years) 20 years 20 years
Technology-based assets [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 163.7 $ 126.9
Accumulated Amortization (112.0) (96.3)
Net $ 51.7 $ 30.6
Weighted Average Useful Life (years) 7 years 7 years
Non-competition agreements [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 2.4 $ 2.4
Accumulated Amortization (2.2) (2.1)
Net $ 0.2 $ 0.3
Weighted Average Useful Life (years) 5 years 5 years
v3.19.3.a.u2
Acquisitions, Goodwill, and Other Intangible Assets (Amortization Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Acquisitions, Goodwill, and Other Intangible Assets [Abstract]      
Amortization expense $ 36.5 $ 20.7 $ 23.6
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]      
2017 53.5    
2018 50.2    
2019 42.2    
2020 40.0    
2021 34.0    
Thereafter $ 113.5    
v3.19.3.a.u2
Acquisitions, Goodwill, and Other Intangible Assets Acquisition, Goodwill, and Other Intangible Assets - Pro Forma (Details) - DBRS [Member] - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]    
Revenue $ 1,259.2 $ 1,184.5
Operating income 190.3 223.6
Net income $ 148.2 $ 179.7
Basic net income per share attributable to Morningstar, Inc. (in dollars per share) $ 3.47 $ 4.22
Diluted net income per share attributable to Morningstar, Inc. (in dollars per share) $ 3.43 $ 4.18
v3.19.3.a.u2
Divestitures (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jan. 01, 2018
Jun. 30, 2017
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Proceeds from sale of a product line       $ 0.0 $ 10.5 $ 0.0
Gain on sale of a product line       $ 0.0 $ 10.5 0.0
Board Consulting Services Product Line | Disposal Group, Disposed of by Sale, Not Discontinued Operations            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Proceeds from sale of a product line $ 10.5          
Gain on sale of a product line $ 10.5   $ 10.5      
HelloWallet [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Gain on sale of a product line   $ 16.7       16.7
Proceeds from sale   23.7        
Disposal group, goodwill   $ 2.4       $ 2.4
v3.19.3.a.u2
Divestitures (Amounts Included in the Gain on Sale of Business (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Total gain on sale of business   $ 0.0 $ 10.5 $ 0.0
HelloWallet [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Proceeds received       23.7
Intangibles and internally developed software       (4.5)
Goodwill $ (2.4)     (2.4)
Other assets and liabilities       (0.1)
Total gain on sale of business $ 16.7     $ 16.7
v3.19.3.a.u2
Investments in Unconsolidated Entities (Details)
¥ in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2019
JPY (¥)
Dec. 31, 2018
JPY (¥)
Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]          
Cost method investments $ 3.7 $ 3.2      
Total investments in unconsolidated entities 59.6 63.1      
Cost-method investments, other than temporary impairment 0.0 0.0      
Equity method investment, other than temporary impairment 0.0 0.0      
Other Equity Method Investments [Member]          
Schedule of Equity Method Investments [Line Items]          
Equity method investments 6.6 10.3      
YCharts [Member]          
Schedule of Equity Method Investments [Line Items]          
Equity method investment, ownership percentage         22.00%
Morningstar Japan KK [Member]          
Schedule of Equity Method Investments [Line Items]          
Equity method investments $ 24.0 $ 23.9      
Equity method investment, ownership percentage 30.40% 30.40% 30.40% 30.40%  
Equity method investment, approximate market value $ 95.0 $ 68.4 ¥ 10,319.0 ¥ 7,525.4  
Sustainalytics [Member]          
Schedule of Equity Method Investments [Line Items]          
Equity method investments $ 25.3 $ 25.7      
Equity method investment, ownership percentage 43.40% 44.00% 43.40% 44.00%  
Ellevest [Member]          
Schedule of Equity Method Investments [Line Items]          
Equity method investment, ownership percentage         17.00%
v3.19.3.a.u2
Property, Equipment, and Capitalized Software (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost $ 532.0 $ 495.2  
Less accumulated depreciation (377.3) (351.7)  
Property, equipment, and capitalized software, net 154.7 143.5  
Depreciation expense 81.2 76.0 $ 67.6
Computer equipment [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost 70.1 83.5  
Capitalized software [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost 328.3 294.8  
Furniture and fixtures [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost 33.7 29.6  
Leasehold improvements [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost 92.1 77.3  
Telephone equipment [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost 2.3 2.1  
Construction in progress [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost $ 5.5 $ 7.9  
v3.19.3.a.u2
Leases (Schedule of Operating Lease Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Leases [Abstract]    
Operating lease assets $ 144.8 $ 0.0
Operating lease liabilities 35.8 0.0
Operating lease liabilities 138.7 $ 0.0
Total lease liabilities $ 174.5  
v3.19.3.a.u2
Leases (Operating Leases) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Lessee, Operating Lease, Liability, Payment, Due [Abstract]      
2020 $ 41.7    
2021 37.9    
2022 25.4    
2023 22.9    
2024 17.7    
Thereafter 55.7    
Total lease payments 201.3    
Adjustment for discount to present value 26.8    
Total lease liabilities $ 174.5    
Deferred rent 6 years 7 months 6 days    
Operating lease expense $ 33.9 $ 32.5 $ 30.3
Variable operating lease charges 12.7    
Payments on operating leases $ 33.1    
Operating Lease, Weighted Average Discount Rate, Percent 4.20%    
Lease not yet commenced $ 16.7    
v3.19.3.a.u2
Stock-Based Compensation (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 12 Months Ended
May 31, 2011
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized stock-based compensation expense   $ 45.7
Expected amortization period (months)   32 months
Stock options [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award expiration period   10 years
Restricted stock units [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period   4 years
Unrecognized stock-based compensation expense   $ 38.8
Expected amortization period (months)   33 months
2004 Stock Incentive Plan [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock option granted 86,106  
Fair value per share (in dollars per share)   $ 23.81
Non-employee director [Member] | Stock options [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period   3 years
Non-employee director [Member] | Restricted stock units [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period   3 years
Employee [Member] | Stock options [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period   4 years
PitchBook Plan [Member] | Performance share awards [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period   1 year
v3.19.3.a.u2
Stock-Based Compensation (Shares Available for Future Grants) (Details)
shares in Millions
Dec. 31, 2019
shares
Share-based Payment Arrangement [Abstract]  
Shares available for future grants 2.8
v3.19.3.a.u2
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense $ 44.4 $ 31.7 $ 24.1
Income tax benefit related to the stock-based compensation expense 10.0 7.0 7.8
Restricted stock units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense 20.4 19.8 16.5
Performance share awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense 20.6 10.2 7.1
Market Stock Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense $ 3.4 $ 1.7 $ 0.5
v3.19.3.a.u2
Stock-Based Compensation (Unrecognized Stock-Based Compensation Expense) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Income tax benefit related to the stock-based compensation expense $ 45.7
Expected amortization period (months) 32 months
Restricted stock units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Income tax benefit related to the stock-based compensation expense $ 38.8
Expected amortization period (months) 33 months
Market Stock Units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Income tax benefit related to the stock-based compensation expense $ 6.9
Expected amortization period (months) 26 months
v3.19.3.a.u2
Stock-Based Compensation (Restricted Stock Units Activity) (Details) - Restricted stock units [Member] - $ / shares
 12 Months Ended 36 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]        
RSUs Outstanding, Beginning Balance, Unvested 527,465 604,879 541,245 541,245
RSUs Outstanding, Beginning Balance, Vested but Deferred 0 3,279 9,748 9,748
RSUs Outstanding, Beginning Balance 527,465 608,158 550,993 550,993
RSUs Outstanding, Beginning Balance, Weighted Average Grant Date Value per RSU $ 89.53 $ 77.52 $ 75.77 $ 75.77
Target performance share awards granted 233,618 243,614 331,470  
Granted, Vested but Deferred 0 0 0  
Granted 233,618 243,614 331,470  
Granted, Weighted Average Grant Date Value per RSU $ 135.67 $ 108.60 $ 78.33  
Dividend equivalents, Unvested   0 0  
Dividends equivalents, Vested but Deferred   16 78  
Dividends equivalents   16 78  
Dividends equivalents, Weighted Average Grant Date Value per RSU   $ 73.28 $ 60.99  
Vested, Unvested (269,917) (279,774) (212,005)  
Vested, Vested but Deferred 0 0 0  
Vested (269,917) (279,774) (212,005)  
Vested, Weighted Average Grant Date Value per RSU $ 95.67 $ 80.68 $ 75.38  
Issued, Unvested   0 0  
Issued, Vested but Deferred   (3,295) (6,547)  
Issued   (3,295) (6,547)  
Issued, Weighted Average Grant Date Value per RSU   $ 73.28 $ 49.40  
Forfeited, Unvested (31,721) (41,254) (55,831)  
Forfeited, Vested but Deferred 0 0 0  
Forfeited (31,721) (41,254) (55,831)  
Forfeited, Weighted Average Grant Date Value per RSU $ 100.71 $ 86.47 $ 76.49  
RSUs Outstanding, Ending Balance, Unvested 459,445 527,465 604,879 459,445
RSUs Outstanding, Ending Balance, Vested but Deferred 0 0 3,279 0
RSUs Outstanding, Ending Balance 459,445 527,465 608,158 459,445
RSUs Outstanding, Ending Balance, Weighted Average Grant Date Value per RSU $ 108.61 $ 89.53 $ 77.52 $ 108.61
v3.19.3.a.u2
Stock-Based Compensation (Assumptions Used to Estimate Fair Value of Market Units (Details) - Market Stock Units [Member]
Nov. 15, 2019
May 15, 2019
Nov. 15, 2018
May 15, 2018
Nov. 15, 2017
May 15, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Expected volatility 21.00% 20.30% 19.60% 17.40% 17.70% 17.40%
Dividend yield 0.72% 0.84% 0.83% 0.89% 1.04% 1.20%
Risk-free interest rate 1.59% 2.17% 2.92% 2.70% 1.79% 1.49%
v3.19.3.a.u2
Stock-Based Compensation (Market Units) (Details) - Market Stock Units [Member]
 12 Months Ended
Dec. 31, 2019
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Market stock units granted (in shares) 124,102
Weighted average fair value per award (in dollars per share) | $ / shares $ 100.51
Number of target market stock units outstanding (in shares) 119,331
v3.19.3.a.u2
Stock-Based Compensation (Assumptions for Black-Scholes Option Pricing Model) (Details) - Stock options [Member]
 12 Months Ended
Dec. 31, 2019
Assumptions for Black-Scholes Option Pricing Model [Line Items]  
Expected life (years): 7 years 4 months 24 days
Expected volatility 35.10%
Dividend yield 0.35%
Risk-free interest rate 2.87%
v3.19.3.a.u2
Stock-Based Compensation (Stock Option Activity) (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Option exercise price grouping [Member]      
Intrinsic Value of Options Exercised [Abstract]      
Intrinsic value of options exercised $ 0.4 $ 0.1 $ 0.1
Option grants excluding options granted at discount [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Beginning Balance, Options, Outstanding, Underlying Shares 40,685 41,685 46,001
Granted, Underlying Shares 0 0 0
Canceled, Underlying Shares 0 0 0
Exercised, Underlying Shares (3,416) (1,000) (4,316)
Ending Balance, Options, Outstanding, Underlying Shares 37,269 40,685 41,685
Options, Weighted Average Exercise Price [Abstract]      
Beginning Balance, Options, Outstanding, Weighted Average Exercise Price $ 57.28 $ 57.28 $ 57.28
Granted, Weighted Average Exercise Price 0 0 0
Canceled, Weighted Average Exercise Price 0 0 0
Expected exercise price: 57.28 57.28 57.28
Ending Balance, Options, Outstanding, Weighted Average Exercise Price $ 57.28 $ 57.28 $ 57.28
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract]      
Options exercisable - end of year, Underlying Shares 37,269 40,685 41,685
Options exercisable - end of year, Weighted Average Exercise Price $ 57.28 $ 57.28 $ 57.28
v3.19.3.a.u2
Stock-Based Compensation (Additional Information on Options) (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
$ / shares
shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Options Outstanding, Weighted Average Remaining Contractual Life (years) 1 year 4 months 13 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term 1 year 4 months 13 days
Options Outstanding, Weighted Average Remaining Contractual Life (years), Vested or Expected to vest 1 year 4 months 13 days
Closing Stock Price Used to Calculate Intrinsic Value $ 151.31
Range One [Member]  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Expected exercise price: 57.28
Exercise price range, lower range limit 57.28
Exercise price range, upper range limit $ 59.35
Options Outstanding, Number of Options | shares 37,269
Options Outstanding, Weighted Average Exercise Price $ 57.28
Options Outstanding, Aggregate Intrinsic Value | $ $ 3.5
Options Exercisable, Exercisable Shares | shares 37,269
Options Exercisable, Weighted Average Exercise Price $ 57.28
Options Exercisable, Aggregate Intrinsic Value | $ $ 3.5
Option Outstanding, Number of Options, Vested or Expected to Vest | shares 37,269
Options Outstanding, Weighted Average Exercise Price, Vested or Expected to Vest $ 57.28
Options Outstanding, Average Intrinsic Value, Vested or Expected to Vest | $ $ 3.5
v3.19.3.a.u2
Stock-Based Compensation (Total Stock-Based Compensation Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 44.4 $ 31.7 $ 24.1
Cost of revenue [Member]      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 12.9 11.7 9.6
Selling and marketing expense [Member]      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 5.6 3.5 3.0
General and administrative expense [Member]      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 25.9 $ 16.5 $ 11.5
v3.19.3.a.u2
Stock-based Compensation (PitchBook Bonus Plan) (Details) - Performance share awards [Member]
$ / shares in Units, $ in Millions
 12 Months Ended 36 Months Ended
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
PitchBook Plan, For 2017 To 2019 [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares available for issuance, aggregate target value $ 30.0 $ 30.0
Target value of shares expected to be granted in year one 7.5 7.5
Target value of shares expected to be granted in year two 7.5 7.5
Target value of shares expected to be granted in year three 15.0 15.0
PitchBook Plan, Renewal For 2020 To 2022 [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares available for issuance, aggregate target value 30.0 30.0
Target value of shares expected to be granted in year one 7.5 7.5
Target value of shares expected to be granted in year two 7.5 7.5
Target value of shares expected to be granted in year three $ 15.0 $ 15.0
PitchBook Plan [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period 1 year  
Shares of common stock to be issued for each equity instrument | shares 1 1
Target performance share awards granted | shares   132,522
Weighted average fair value per award | $ / shares $ 112.16 $ 112.16
Number of shares that will be issued based on final 2019 performance levels | shares   182,211
Unamortized expense, based on current performance levels (in millions) $ 0.0 $ 0.0
v3.19.3.a.u2
Defined Contribution Plan (Details) - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Defined Contribution Plan [Abstract]      
401(k) matching contributions $ 12,000,000.0 $ 11,000,000.0 $ 10,400,000
Matching contribution to 401(k) for every dollar $ 0.75 $ 0.75 $ 0.75
Matching contribution percent to employee's contribution in pay period 7.00% 7.00% 7.00%
v3.19.3.a.u2
Income Taxes (Schedule of Income Tax Expense and Effective Tax Rate) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]                      
Income before income taxes and equity in net income (loss) of unconsolidated entities $ 35.7 $ 63.5 $ 53.1 $ 46.2 $ 48.4 $ 72.7 $ 55.0 $ 56.8 $ 198.5 $ 232.9 $ 181.1
Equity in net income (loss) of unconsolidated entities 1.0 (1.1) 0.7 (1.5) (0.5) 0.3 (0.4) (1.5) (0.9) (2.1) (1.3)
Income loss from continuing operations before income taxes domestic and foreign                 197.6 230.8 179.8
Income tax expense $ 9.1 $ 13.3 $ 11.7 $ 11.5 $ 5.5 $ 16.1 $ 12.8 $ 13.4 $ 45.6 $ 47.8 $ 42.9
Effective income tax rate                 23.10% 20.70% 23.90%
v3.19.3.a.u2
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Contingency [Line Items]      
Effective income tax rate (percent) 23.10% 20.70% 23.90%
Effective income tax rate, increase (decrease) from prior year (percent) 2.40% (3.20%)  
Provisional estimate of deferred taxes for foreign withholding taxes, Tax Reform Act $ 3.0 $ 3.0  
Accumulated undistributed earnings from foreign subsidiaries 240.5    
Foreign earnings repatriated 45.8    
Unrecognized tax benefits included in current liabilities 10.8 6.6  
Unrecognized tax benefits included in non-current liabilities 3.0 7.1  
Unrecognized tax benefits, period increase (decrease) 4.0    
Result of tax position taken during period 1.1    
Increase in income tax expense 1.1    
Reductions resulting from settlements and lapse of statute of limitations 4.5    
Decrease of unrecognized tax benefits relating to settlements with tax authorities 2.1    
Reductions resulting from settlements and lapse statute of limitations, tax effect 1.9    
Decreases relating to settlements with tax authorities 3.8 2.5  
Reductions as a result of lapse of the applicable statute of limitations 0.7 5.2  
Gross unrecognized tax benefits 12.6 13.1 $ 18.7
Unrecognized tax benefits that would impact effective tax rate 12.6    
Decrease in income tax expense upon recognition of gross unrecognized tax benefits 12.4    
Foreign Tax Authority [Member]      
Income Tax Contingency [Line Items]      
Operating loss carryforwards 21.4 10.6  
Operating loss carryforwards, not subject to valuation allowances 11.7 2.0  
Subject to Expiration Date [Member] | Domestic Tax Authority [Member]      
Income Tax Contingency [Line Items]      
Operating loss carryforwards 0.8 1.0  
Subject to Expiration Date [Member] | Foreign Tax Authority [Member]      
Income Tax Contingency [Line Items]      
Operating loss carryforwards $ 6.8 $ 5.5  
v3.19.3.a.u2
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Examination [Line Items]                      
Income tax expense at U.S. federal rate                 $ 41.5 $ 48.5 $ 63.0
Income tax expense at U.S. federal rate, percent                 21.00% 21.00% 35.00%
State income taxes, net of federal income tax benefit                 $ 7.5 $ 7.4 $ 3.0
State income taxes, net of federal income tax benefit, percent                 3.80% 3.20% 1.70%
Impacts of Tax Reform Act                 $ 0.0 $ (2.3) $ (10.6)
Impacts of Tax Reform Act, percent                 0 (0.010) (0.059)
Stock-based compensation activity                 $ (2.2) $ (2.6) $ 0.3
Stock-based compensation activity, percent                 (1.10%) (1.10%) 0.20%
Equity in net income of unconsolidated subsidiaries (including holding gains upon acquisition)                 $ 0.3 $ 1.0 $ 1.2
Holding gain upon acquisition of additional ownership of equity method investments, percent                 0.20% 0.40% 0.70%
Book gain over tax gain on sale of HelloWallet                 $ 0.0 $ 0.0 $ (6.8)
Book gain over tax gain on sale of HelloWallet, percent                 0.00% 0.00% (3.80%)
Net change in valuation allowance related to non-U.S. deffered tax assets, primarily net operating losses                 $ (2.1) $ (0.2) $ 0.1
Net change in valuation allowance related to non-U.S. deffered tax assets, primarily net operating losses, percent                 (1.10%) (0.10%) 0.10%
Difference between U.S. federal statutory and foreign tax rates                 $ 1.1 $ 0.2 $ (5.2)
Difference between U.S. federal statutory and foreign tax rates, percent                 0.60% 0.10% (2.90%)
Foreign tax provisions (GILTI, FDII, and BEAT)                 $ (1.4) $ (3.7) $ 0.0
Foreign tax provisions (GILTI, FDII, and BEAT), percent                 (0.70%) (1.60%) 0.00%
Change in unrecognized tax benefits                 $ (0.9) $ 1.0 $ 1.2
Changes in unrecognized tax benefits, percent                 (0.50%) 0.40% 0.70%
Other tax credits                 $ (2.2) $ (3.6) $ (3.7)
Other tax credits, percent                 (1.10%) (1.60%) (2.10%)
Other - net                 $ 4.0 $ 2.1 $ 0.4
Other - net, percent                 2.00% 0.90% 0.20%
Income tax expense $ 9.1 $ 13.3 $ 11.7 $ 11.5 $ 5.5 $ 16.1 $ 12.8 $ 13.4 $ 45.6 $ 47.8 $ 42.9
Income tax expense, percent                 23.10% 20.70% 23.90%
v3.19.3.a.u2
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]                      
Federal                 $ 28.3 $ 31.0 $ 40.3
State                 9.4 11.1 6.6
Non-U.S.                 14.0 12.3 9.9
Current tax expense                 51.7 54.4 56.8
Federal                 0.2 (3.0) (10.9)
State                 0.0 (1.7) (1.9)
Non-U.S.                 (6.3) (1.9) (1.1)
Deferred tax expense (benefit)                 (6.1) (6.6) (13.9)
Income tax expense $ 9.1 $ 13.3 $ 11.7 $ 11.5 $ 5.5 $ 16.1 $ 12.8 $ 13.4 $ 45.6 $ 47.8 $ 42.9
v3.19.3.a.u2
Income Taxes (Schedule of Income before Income Taxes and Equity in Net Income of Unconsolidated Entities) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]                      
U.S.                 $ 159.7 $ 188.2 $ 143.5
Non-U.S.                 38.8 44.7 37.6
Income before income taxes and equity in net loss of unconsolidated entities $ 35.7 $ 63.5 $ 53.1 $ 46.2 $ 48.4 $ 72.7 $ 55.0 $ 56.8 $ 198.5 $ 232.9 $ 181.1
v3.19.3.a.u2
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Deferred tax assets:    
Stock-based compensation expense $ 7.6 $ 4.7
Accrued liabilities 18.0 17.0
Deferred revenue 5.5 3.7
Net operating loss carryforwards - U.S. 0.2 0.2
Net operating loss carryforwards - Non-U.S. 4.5 2.4
Deferred royalty revenue 0.2 0.3
Allowance for doubtful accounts 1.4 1.4
Deferred rent 8.0 7.4
Unrealized exchange losses, net 0.0 0.2
Other 0.6 0.6
Total deferred tax assets 46.0 37.9
Deferred tax liabilities:    
Acquired intangible assets (82.7) (16.5)
Property, equipment and capitalized software (25.8) (26.7)
Unrealized exchange gains, net (1.1) 0.0
Prepaid expenses (9.1) (7.1)
Investments in unconsolidated entities (6.3) (4.8)
Withholding tax - foreign dividends (3.0) (3.0)
Total deferred tax liabilities 128.0 58.1
Net deferred tax liability before valuation allowance 82.0 20.2
Valuation allowance (2.3) (2.0)
Total deferred tax liabilities $ (84.3) $ (22.2)
v3.19.3.a.u2
Income Taxes (Schedule of Deferred Tax Assets and Liabilities Included in Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]    
Deferred Tax Assets, Net $ 10.7 $ 0.0
Deferred Tax Liabilities, Net, Noncurrent 95.0 22.2
Deferred tax liability, net $ (84.3) $ (22.2)
v3.19.3.a.u2
Income Taxes (Summary of Operating Loss Carryforwards - U.S and Non-U.S) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Non-U.S. [Member]    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards $ 21.4 $ 10.6
Operating loss carryforwards, not subject to valuation allowances 11.7 2.0
Non-U.S. [Member] | Subject to Expiration Date [Member]    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards 6.8 5.5
Non-U.S. [Member] | No Expiration Date [Member]    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards 14.6 5.1
U.S [Member] | Subject to Expiration Date [Member]    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards $ 0.8 $ 1.0
v3.19.3.a.u2
Income Taxes (Accounting for Uncertainty in Tax Positions) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Gross unrecognized tax benefits - beginning of the year $ 13.1 $ 18.7
Increases as a resulting of tax positions taken during a prior-year period 3.0 0.8
Decreases as a result of tax positions taken during a prior-year period (0.2) (0.3)
Increases as a result of tax positions taken during the current period 1.2 1.6
Decreases relating to settlements with tax authorities (3.8) (2.5)
Reductions as a result of lapse of the applicable statute of limitations (0.7) (5.2)
Gross unrecognized tax benefits - end of the year $ 12.6 $ 13.1
v3.19.3.a.u2
Income Taxes (Summary of Income Tax Examinations) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]    
Liabilities for interest and penalties $ 1.6 $ 1.3
v3.19.3.a.u2
Contingencies Settlement (Details)
$ in Millions
 1 Months Ended
Nov. 30, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Proposed settlement $ 3.5
v3.19.3.a.u2
Share Repurchase Program (Details)
Dec. 31, 2019
USD ($)
shares
Equity [Abstract]  
Stock repurchase program, authorized amount $ 500,000,000.0
Shares repurchased, program life to date, shares | shares 244,180
Shares repurchased, program life to date, value $ 25,600,000
Stock repurchase program, remaining authorized repurchase amount $ 474,400,000
v3.19.3.a.u2
Recent Accounting Pronouncements Recent Accounting Pronouncements (Recently Adopted Accounting Pronouncements) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Operating lease assets $ 144.8   $ 0.0
Operating lease liabilities $ 174.5    
Accounting Standards Update 2016-02      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Operating lease assets   $ 118.8  
Operating lease liabilities   145.8  
Deferred rent   $ 27.9  
v3.19.3.a.u2
Selected Quarterly Financial Data - Schedule of Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Jan. 01, 2018
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                        
Revenue   $ 332.4 $ 313.8 $ 273.9 $ 258.9 $ 262.7 $ 261.3 $ 252.4 $ 243.5 $ 1,179.0 $ 1,019.9 $ 911.7
Total operating expense   292.7 264.2 223.1 209.4 213.4 195.9 198.8 196.0 989.4 804.1 741.9
Operating income   39.7 49.6 50.8 49.5 49.3 65.4 53.6 47.5 189.6 215.8 169.8
Non-operating income (expense), net   (4.0) 13.9 2.3 (3.3) (0.9) 7.3 1.4 9.3 8.9 17.1 11.3
Income before income taxes and equity in net income (loss) of unconsolidated entities   35.7 63.5 53.1 46.2 48.4 72.7 55.0 56.8 198.5 232.9 181.1
Equity in net income (loss) of unconsolidated entities   1.0 (1.1) 0.7 (1.5) (0.5) 0.3 (0.4) (1.5) (0.9) (2.1) (1.3)
Income tax expense   $ 9.1 $ 13.3 $ 11.7 $ 11.5 $ 5.5 $ 16.1 $ 12.8 $ 13.4 45.6 47.8 42.9
Consolidated net income                   $ 152.0 $ 183.0 $ 136.9
Earnings Per Share, Basic and Diluted [Abstract]                        
Basic (in dollars per share)   $ 0.64 $ 1.15 $ 0.99 $ 0.78 $ 0.99 $ 1.33 $ 0.98 $ 0.99      
Diluted (in dollars per share)   0.64 1.14 0.98 0.77 0.99 1.32 0.97 0.98      
Dividends Per Common Share: [Abstract]                        
Common stock, dividends, per share, declared (in dollars per share)   0.58 0 0.28 0.28 0.53 0 0.25 0.25 $ 1.14 $ 1.03 $ 0.94
Dividends paid per common share (in dollars per share)   $ 0.28 $ 0.28 $ 0.28 $ 0.28 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 1.12 $ 1.00 $ 0.92
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]                        
Weighted average common shares outstanding - basic (in shares)   42.8 42.8 42.7 42.6 42.7 42.6 42.6 42.5 42.7 42.6 42.7
Weighted average common shares outstanding - diluted (in shares)   43.3 43.2 43.1 43.0 43.1 43.1 43.0 42.9 43.2 43.0 43.0
Revenue benefit from amended license agreement             $ 10.5          
Gain on sale of a product line                   $ 0.0 $ 10.5 $ 0.0
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Board Consulting Services Product Line                        
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]                        
Gain on sale of a product line $ 10.5               $ 10.5