MORNINGSTAR, INC., 10-Q filed on 10/30/2012
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2012
Oct. 26, 2012
Document and Entity Information Abstract
 
 
Entity Registrant Name
MORNINGSTAR, INC. 
 
Entity Central Index Key
0001289419 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2012 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q3 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
47,131,295 
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Revenue
$ 160,952 
$ 160,051 
$ 487,679 
$ 472,829 
Operating expense (1):
 
 
 
 
Cost of goods sold
47,711 1
48,074 1
147,479 
133,929 
Development
12,857 1
13,482 1
38,664 
39,151 
Sales and marketing
25,732 1
27,253 1
81,431 
80,502 
General and administrative
23,966 1
26,431 1
77,090 
83,255 
Depreciation and amortization
10,822 1
10,947 1
31,616 
31,712 
Total operating expense
121,088 1
126,187 1
376,280 
368,549 
Operating income (loss)
39,864 
33,864 
111,399 
104,280 
Non-operating income (expense):
 
 
 
 
Interest income (expense), net
1,719 
797 
3,848 
1,142 
Other income (expense), net
161 
(1,376)
(314)
(938)
Non-operating income (expense), net
1,880 
(579)
3,534 
204 
Income before income taxes and equity in net income of unconsolidated entities
41,744 
33,285 
114,933 
104,484 
Income tax expense
15,186 
12,343 
41,441 
35,585 
Equity in net income of unconsolidated entities
478 
428 
1,541 
1,397 
Consolidated net income
27,036 
21,370 
75,033 
70,296 
Net (income) loss attributable to the noncontrolling interest
34 
10 
62 
106 
Net income attributable to Morningstar, Inc.
$ 27,070 
$ 21,380 
$ 75,095 
$ 70,402 
Net income per share attributable to:
 
 
 
 
Basic (in dollars per share)
$ 0.56 
$ 0.42 
$ 1.53 
$ 1.40 
Diluted (in dollars per share)
$ 0.56 
$ 0.42 
$ 1.51 
$ 1.37 
Dividends declared per common share
$ 0.10 
$ 0.05 
$ 0.30 
$ 0.15 
Dividends paid per common share
$ 0.10 
$ 0.05 
$ 0.30 
$ 0.15 
Weighted average shares outstanding:
 
 
 
 
Basic (in shares)
47,975 
50,278 
49,028 
50,082 
Diluted (in shares)
48,481 
51,123 
49,664 
51,071 
Condensed Consolidated Statements of Income (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
(1) Includes stock-based compensation expense of:
 
 
 
 
Allocated Share-based Compensation Expense
$ 3,994 
$ 3,951 
$ 11,594 
$ 11,443 
Cost of Sales
 
 
 
 
(1) Includes stock-based compensation expense of:
 
 
 
 
Allocated Share-based Compensation Expense
1,148 
1,117 
3,304 
3,068 
Development
 
 
 
 
(1) Includes stock-based compensation expense of:
 
 
 
 
Allocated Share-based Compensation Expense
471 
545 
1,435 
1,588 
Sales and Marketing
 
 
 
 
(1) Includes stock-based compensation expense of:
 
 
 
 
Allocated Share-based Compensation Expense
493 
489 
1,433 
1,392 
General and Administrative
 
 
 
 
(1) Includes stock-based compensation expense of:
 
 
 
 
Allocated Share-based Compensation Expense
$ 1,882 
$ 1,800 
$ 5,422 
$ 5,395 
Condensed Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Consolidated net income
$ 27,036 
$ 21,370 
$ 75,033 
$ 70,296 
Other comprehensive income (loss), net of tax:
 
 
 
 
Foreign currency translation adjustment
7,375 
(12,570)
5,597 
(6)
Unrealized gains (losses) on securities:
 
 
 
 
Unrealized holding gains (losses) arising during period
1,026 
(1,871)
1,394 
(1,472)
Reclassification of adjustments for (gains) losses included in net income
0 
81 
33 
(171)
Other comprehensive income (loss), net
8,401 
(14,360)
7,024 
(1,649)
Other comprehensive income (loss), net
35,437 
7,010 
82,057 
68,647 
Comprehensive (income) loss attributable to noncontrolling interest
16 
(47)
77 
52 
Comprehensive income attributable to Morningstar, Inc.
$ 35,453 
$ 6,963 
$ 82,134 
$ 68,699 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Current assets:
 
 
Cash and cash equivalents
$ 152,181 
$ 200,437 
Investments
190,899 
269,755 
Accounts receivable, less allowance of $723 and $835, respectively
119,877 
113,312 
Deferred tax asset, net
2,156 
5,104 
Income tax receivable, net
5,277 
7,445 
Other
22,546 
15,980 
Total current assets
492,936 
612,033 
Property, equipment, and capitalized software, net
77,873 
68,196 
Investments in unconsolidated entities
38,278 
27,642 
Goodwill
321,134 
318,492 
Intangible assets, net
122,832 
139,809 
Other assets
8,330 
5,912 
Total assets
1,061,383 
1,172,084 
Current liabilities:
 
 
Accounts payable and accrued liabilities
40,356 
41,403 
Accrued compensation
55,131 
73,124 
Deferred revenue
164,360 
155,494 
Other
319 
612 
Total current liabilities
260,166 
270,633 
Accrued compensation
6,802 
5,724 
Deferred tax liability, net
14,262 
15,940 
Deferred rent
15,160 
14,604 
Other long-term liabilities
8,262 
8,167 
Total liabilities
304,652 
315,068 
Morningstar, Inc. shareholders' equity:
 
 
Common stock, no par value, 200,000,000 shares authorized, of which 47,479,142 and 50,083,940 shares were outstanding as of September 30, 2012 and December 31, 2011, respectively
5 
5 
Treasury stock at cost, 4,125,568 shares as of September 30, 2012 and 980,177 shares as of December 31, 2011
(232,685)
(46,701)
Additional paid-in capital
509,896 
491,432 
Retained earnings
469,295 
409,022 
Accumulated other comprehensive income:
 
 
Currency translation adjustment
7,548 
1,936 
Unrealized gain on available-for-sale securities
1,103 
(324)
Total accumulated other comprehensive income
8,651 
1,612 
Total Morningstar, Inc. shareholders' equity
755,162 
855,370 
Noncontrolling interest
1,569 
1,646 
Total equity
756,731 
857,016 
Total liabilities and equity
$ 1,061,383 
$ 1,172,084 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Statement of Financial Position [Abstract]
 
 
Allowance for Doubtful Accounts Receivable, Current
$ 723 
$ 835 
Common Stock, No Par Value
$ 0 
$ 0 
Common Stock, Shares Authorized
200,000,000 
200,000,000 
Common Stock, Shares, Outstanding
47,479,142 
50,083,940 
Treasury Stock, Shares
4,125,568 
980,177 
Condensed Consolidated Statement of Equity (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Common Stock
Treasury Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Non Controlling Interests
Balance at Dec. 31, 2011
$ 857,016 
$ 5 
$ (46,701)
$ 491,432 
$ 409,022 
$ 1,612 
$ 1,646 
Balance (in shares) at Dec. 31, 2011
50,083,940 
50,083,940 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity
 
 
 
 
 
 
 
Net Income (Loss)
75,033 
 
 
 
75,095 
 
(62)
Other Comprehensive Income (loss)
 
 
 
 
 
 
 
Unrealized gains (losses) on available-for-sale investments, net of income tax of $189
1,394 
   
   
   
   
1,394 
0 
Reclassification of adjustments for losses (gains) included in net income, net of income tax of $16
33 
   
   
   
   
33 
0 
Foreign currency translation adjustment, net
5,597 
   
   
   
   
5,612 
(15)
Other comprehensive income (loss), net
7,024 
   
   
   
   
7,039 
(15)
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net
2,760 
0 
1,114 
1,646 
   
   
   
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares)
 
561,276 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
 
 
 
 
 
Stock-based compensation - restricted stock units
9,944 
   
   
9,944 
   
   
   
Stock-based compensation - restricted stock
1,332 
   
   
1,332 
   
   
   
Stock-based compensation - stock options
318 
   
   
318 
   
   
   
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units
5,007 
   
   
5,007 
   
   
   
Common share repurchased
(187,098)
   
(187,098)
   
   
   
   
Common share repurchased (in shares)
 
(3,166,074)
 
 
 
 
 
Dividends declared - common shares outstanding
(14,587)
   
   
   
(14,587)
   
   
Dividends declared - restricted stock units
(18)
   
   
217 
(235)
   
   
Balance at Sep. 30, 2012
$ 756,731 
$ 5 
$ (232,685)
$ 509,896 
$ 469,295 
$ 8,651 
$ 1,569 
Balance (in shares) at Sep. 30, 2012
47,479,142 
47,479,142 
 
 
 
 
 
Condensed Consolidated Statement of Equity (Parenthetical) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Statement of Stockholders' Equity [Abstract]
 
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax
$ 794 
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax
$ 19 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Operating activities
 
 
Consolidated net income
$ 75,033 
$ 70,296 
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
 
 
Depreciation and amortization
31,616 
31,712 
Deferred income taxes
492 
(1,559)
Stock-based compensation expense
11,594 
11,443 
Provision for bad debt
990 
1,076 
Equity in net income of unconsolidated entities
(1,541)
(1,397)
Excess tax benefits from stock-option exercises and vesting of restricted stock units
(5,007)
(7,621)
Other, net
342 
1,607 
Changes in operating assets and liabilities, net of effects of acquisitions:
 
 
Accounts receivable
(6,569)
(403)
Other assets
(3,551)
1,996 
Accounts payable and accrued liabilities
(4,316)
(5,275)
Accrued compensation
(20,851)
(3,242)
Income taxes- current
7,220 
9,442 
Deferred revenue
7,684 
618 
Deferred rent
291 
(984)
Other liabilities
(1,111)
(1,393)
Cash provided by operating activities
92,316 
106,316 
Investing activities
 
 
Purchases of investments
(134,929)
(298,876)
Proceeds from maturities and sales of investments
216,350 
222,599 
Capital expenditures
(22,876)
(14,689)
Acquisitions, net of cash acquired
0 
300 
Purchases of equity and cost method investments
10,304 
0 
Other, net
(4)
875 
Cash used for investing activities
48,237 
(89,791)
Financing activities
 
 
Proceeds from stock-option exercises, net
2,760 
6,630 
Excess tax benefits from stock-option exercises and vesting of restricted stock units
5,007 
7,621 
Common shares repurchased
(183,698)
(28,526)
Dividends paid
(14,867)
(7,539)
Other, net
(18)
(363)
Cash provided by (used for) financing activities
(190,816)
(22,177)
Effect of exchange rate changes on cash and cash equivalents
2,007 
(254)
Net increase (decrease) in cash and cash equivalents
(48,256)
(5,906)
Cash and cash equivalents-beginning of period
200,437 
180,176 
Cash and cash equivalents-end of period
152,181 
174,270 
Supplemental disclosure of cash flow information:
 
 
Cash paid for income taxes
33,163 
28,437 
Supplemental information of non-cash investing and financing activities:
 
 
Unrealized Gain (Loss) on Available For Sale Investments
$ 2,221 
$ (2,598)
Basis of Presentation of Interim Financial Information
Basis of Presentation of Interim Financial Information
Basis of Presentation of Interim Financial Information
 
The accompanying condensed consolidated financial statements of Morningstar, Inc. and subsidiaries (Morningstar, we, our, the Company) have been prepared to conform to the rules and regulations of the Securities and Exchange Commission (SEC). The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue, and expenses. Actual results could differ from those estimates. In the opinion of management, the statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly our financial position, results of operations, equity, and cash flows. These financial statements and notes should be read in conjunction with our Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 24, 2012.
 
The acronyms that appear in the Notes to our Unaudited Condensed Consolidated Financial Statements refer to the following:
 
ASC: Accounting Standards Codification
ASU: Accounting Standards Update
FASB: Financial Accounting Standards Board
SEC: Securities and Exchange Commission
 
Correction
Correction

In 2012, we identified errors related to purchases of investments and proceeds from maturities and sales of investments included on our Consolidated Statement of Cash Flows for the nine months ended September 30, 2011 that had not been previously detected. We did not properly disclose the correct amount for both categories by equal, but offsetting, amounts. The financial statements have been corrected to increase the purchases of investments and proceeds from maturities and sales of investments as shown in the table below. The error existed in the first quarter of 2012, but did not exist in the cumulative statement as of and for the six months ended June 30, 2012.

The following tables shows our previously reported amounts, the correction, and our as corrected amounts:
 
 
Nine months ended September 30, 2011
($000)
 
Previously Reported

 
Correction

 
As Corrected

Investing Activities
 
 
 
 
 
 
Purchases of investments
 
$
(281,698
)
 
$
(17,178
)
 
$
(298,876
)
Proceeds from maturities and sales of investments
 
$
205,421

 
$
17,178

 
$
222,599

Cash used for investing activities
 
$
(89,791
)
 
$
—

 
$
(89,791
)
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
 
Goodwill
 
The following table shows the changes in our goodwill balances from December 31, 2011 to September 30, 2012:
 
 
($000)

Balance as of December 31, 2011
$
318,492

Net change, primarily currency translation
2,642

Balance as of September 30, 2012
$
321,134



We did not record any significant impairment losses in the first nine months of 2012 or 2011. We perform our annual impairment reviews in the fourth quarter.

Intangible Assets

The following table summarizes our intangible assets: 
 
 
As of September 30, 2012
 
As of December 31, 2011
($000)
 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)

 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)

Intellectual property
 
$
32,343

 
$
(22,488
)
 
$
9,855

 
9

 
$
32,293

 
$
(20,455
)
 
$
11,838

 
9

Customer-related assets
 
135,772

 
(62,763
)
 
73,009

 
12

 
134,396

 
(52,611
)
 
81,785

 
12

Supplier relationships
 
240

 
(93
)
 
147

 
20

 
240

 
(84
)
 
156

 
20

Technology-based assets
 
81,308

 
(41,735
)
 
39,573

 
9

 
80,694

 
(35,130
)
 
45,564

 
9

Non-competition agreement
 
1,766

 
(1,518
)
 
248

 
4

 
1,751

 
(1,285
)
 
466

 
4

Total intangible assets
 
$
251,429

 
$
(128,597
)
 
$
122,832

 
10

 
$
249,374

 
$
(109,565
)
 
$
139,809

 
10

 
The following table summarizes our amortization expense related to intangible assets:
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2012

 
2011

 
2012

 
2011

Amortization expense
 
$
5,941

 
$
6,894

 
$
17,972

 
$
20,039


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

We expect intangible amortization expense for 2012 and subsequent years as follows:
 
 
($000)

2012
 
$
24,048

2013
 
21,317

2014
 
20,058

2015
 
19,186

2016
 
14,564

2017
 
9,954


 
Our estimates of future amortization expense for intangible assets may be affected by acquisitions, dispositions, changes in the estimated average useful life, and currency translations.

Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies

We discuss our significant accounting policies in Note 2 of our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 24, 2012.

In addition, effective January 1, 2012, we adopted FASB ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. ASU No. 2011-04 clarifies existing fair value measurement and disclosure requirements, amends certain fair value measurement principles, and requires additional disclosures about fair value measurements. The adoption of ASU No. 2011-04 did not have a material impact on our Consolidated Financial Statements.
Income Per Share
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:

 
 
Three months ended September 30
 
Nine months ended September 30
(in thousands, except per share amounts)
 
2012

 
2011

 
2012

 
2011

 
 
 
 
 
 
 
 
 
Basic net income per share attributable to Morningstar, Inc.:
 
 

 
 

 
 
 
 
Net income attributable to Morningstar, Inc.:
 
$
27,070

 
$
21,380

 
$
75,095

 
$
70,402

Less: Distributed earnings available to participating securities
 
(12
)
 
(8
)
 
(39
)
 
(25
)
Less: Undistributed earnings available to participating securities
 
(53
)
 
(57
)
 
(144
)
 
(189
)
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
$
27,005

 
$
21,315

 
$
74,912

 
$
70,188

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
 
47,975

 
50,278

 
49,028

 
50,082

 
 
 
 
 
 
 
 
 
Basic net income per share attributable to Morningstar, Inc.
 
$
0.56

 
$
0.42

 
$
1.53

 
$
1.40

 
 
 
 
 
 
 
 
 
Diluted net income per share attributable to Morningstar, Inc.:
 
 
 
 
 
 
 
 
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
$
27,005

 
$
21,315

 
$
74,912

 
$
70,188

Add: Undistributed earnings allocated to participating securities
 
53

 
57

 
144

 
189

Less: Undistributed earnings reallocated to participating securities
 
(53
)
 
(56
)
 
(142
)
 
(186
)
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders
 
$
27,005

 
$
21,316

 
$
74,914

 
$
70,191

 
 


 


 


 


Weighted average common shares outstanding
 
47,975

 
50,278

 
49,028

 
50,082

Net effect of dilutive stock options and restricted stock units
 
506

 
845

 
636

 
989

Weighted average common shares outstanding for computing diluted income per share
 
48,481

 
51,123

 
49,664

 
51,071

 
 


 


 


 


Diluted net income per share attributable to Morningstar, Inc.
 
$
0.56

 
$
0.42

 
$
1.51

 
$
1.37


Segment and Geographical Area Information
Segment and Geographical Area Information
Segment and Geographical Area Information
 
Morningstar has two operating segments:
 
•
Investment Information. The Investment Information segment includes all of our data, software, and research products and services. These products are typically sold through subscriptions or license agreements.
 
The largest products in this segment based on revenue are Morningstar Data (formerly Licensed Data), Morningstar Advisor Workstation (including Morningstar Office), Morningstar Direct, Morningstar.com, Morningstar Integrated Web Tools, and Morningstar Principia. Morningstar Data is a set of investment data spanning all of our investment databases, including real-time pricing and commodity data, and is available through electronic data feeds. Advisor Workstation is a web-based investment planning system for advisors. Advisor Workstation is available in two editions: Morningstar Office for independent financial advisors and an enterprise edition for financial advisors affiliated with larger firms. Morningstar Direct is a web-based institutional research platform. Morningstar.com includes both Premium Memberships and Internet advertising sales. Morningstar Integrated Web Tools is a set of services that helps institutional clients build customized websites or enhance their existing sites with Morningstar’s online tools and components. Principia is our CD-ROM-based investment research and planning software for advisors.
 
The Investment Information segment also includes Morningstar Equity Research, which we distribute through several channels. We sell Morningstar Equity Research to companies that purchase our research for their own use or provide our research to their affiliated advisors or individual investor clients.

The Investment Information segment also includes Morningstar Credit Research and Morningstar Structured Credit Ratings. The latter is provided by Morningstar Credit Ratings, LLC, a Nationally Recognized Statistical Rating Organization specializing in structured finance. It offers securities ratings, research, surveillance services, and data to help institutional investors identify risk in commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS).

We also offer a variety of financial communications and newsletters, other institutional and advisor software, and investment indexes.

•
Investment Management. The Investment Management segment includes all of our asset management operations, which earn the majority of their revenue from asset-based fees.
 
The key products and services in this segment based on revenue are Investment Advisory Services (formerly Investment Consulting), which focuses on investment monitoring and asset allocation for funds of funds, including mutual funds and variable annuities; Retirement Solutions, including the Morningstar Retirement Manager and Advice by Ibbotson platforms; and Morningstar Managed Portfolios, a fee-based discretionary asset management service that includes a series of mutual fund, exchange-traded fund, and stock portfolios tailored to meet a range of investment time horizons and risk levels that financial advisors can use for their clients' taxable and tax-deferred accounts. In addition, we offer Managed Portfolios through our subsidiary Ibbotson Australia which provides asset management services primarily to institutional clients and individual investors.
 
Our segment accounting policies are the same as those described in Note 3, except for the capitalization and amortization of internal product development costs, amortization of intangible assets, and costs related to corporate functions. We exclude these items from our operating segment results to provide our chief operating decision maker with a better indication of each segment’s ability to generate cash flow. This information is one of the criteria used by our chief operating decision maker in determining how to allocate resources to each segment. We include capitalization and amortization of internal product development costs, amortization of intangible assets, and costs related to corporate functions in the Corporate Items category. Our segment disclosures are consistent with the business segment information provided to our chief operating decision maker on a recurring basis; for that reason, we don’t present balance sheet information by segment. We disclose goodwill by segment in accordance with the requirements of FASB ASC 350-20-50, Intangibles - Goodwill - Disclosure.
 
The following tables present information about our operating segments and by geographical area:
 
 
 
Three months ended September 30, 2012
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

External revenue
 
$
129,357

 
$
31,595

 
$
—

 
$
160,952

Operating expense, excluding stock-based compensation expense, depreciation, and amortization
 
85,366

 
16,145

 
4,761

 
106,272

Stock-based compensation expense
 
2,738

 
577

 
679

 
3,994

Depreciation and amortization
 
2,296

 
31

 
8,495

 
10,822

Operating income (loss)
 
$
38,957

 
$
14,842

 
$
(13,935
)
 
$
39,864

 
 
 
 
 
 
 
 
 
U.S. capital expenditures
 
 

 
 

 
 

 
$
3,066

Non-U.S. capital expenditures
 
 

 
 

 
 

 
$
1,888

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2011
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

External revenue
 
$
125,804

 
$
34,247

 
$
—

 
$
160,051

Operating expense, excluding stock-based compensation expense, depreciation, and amortization
 
89,652

 
15,587

 
6,050

 
111,289

Stock-based compensation expense
 
2,609

 
556

 
786

 
3,951

Depreciation and amortization
 
2,117

 
42

 
8,788

 
10,947

Operating income (loss)
 
$
31,426

 
$
18,062

 
$
(15,624
)
 
$
33,864

 
 
 
 
 
 
 
 
 
U.S. capital expenditures
 
 

 
 

 
 

 
$
4,560

Non-U.S. capital expenditures
 
 

 
 

 
 

 
$
1,711

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2012
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

External revenue
 
$
391,031

 
$
96,648

 
$
—

 
$
487,679

Operating expense, excluding stock-based compensation expense, depreciation, and amortization
 
265,719

 
49,277

 
18,074

 
333,070

Stock-based compensation expense
 
7,828

 
1,657

 
2,109

 
11,594

Depreciation and amortization
 
6,840

 
108

 
24,668

 
31,616

Operating income (loss)
 
$
110,644

 
$
45,606

 
$
(44,851
)
 
$
111,399

 
 
 
 
 
 
 
 
 
U.S. capital expenditures
 
 

 
 

 
 

 
$
17,280

Non-U.S. capital expenditures
 
 

 
 

 
 

 
$
5,596

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2011
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

External revenue
 
$
374,319

 
$
98,510

 
$
—

 
$
472,829

Operating expense, excluding stock-based compensation expense, depreciation, and amortization
 
259,899

 
43,258

 
22,237

 
325,394

Stock-based compensation expense
 
7,567

 
1,529

 
2,347

 
11,443

Depreciation and amortization
 
6,023

 
124

 
25,565

 
31,712

Operating income (loss)
 
$
100,830

 
$
53,599

 
$
(50,149
)
 
$
104,280

 
 
 
 
 
 
 
 
 
U.S. capital expenditures
 
 

 
 

 
 

 
$
8,084

Non-U.S. capital expenditures
 
 

 
 

 
 

 
$
6,605

 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2012
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

Goodwill
 
$
279,451

 
$
41,683

 
$
—

 
$
321,134

 
 
 
As of December 31, 2011
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

Goodwill
 
$
277,059

 
$
41,433

 
$
—

 
$
318,492

 
External revenue by geographical area
 
 
 
 
 
 
 
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2012

 
2011

 
2012

 
2011

United States
 
$
114,021

 
$
112,790

 
$
346,442

 
$
334,395

United Kingdom
 
13,711

 
13,588

 
42,160

 
40,382

Europe, excluding the United Kingdom
 
11,643

 
12,609

 
35,980

 
36,750

Australia
 
10,090

 
10,614

 
29,230

 
30,600

Canada
 
7,605

 
6,723

 
22,351

 
20,124

Asia, excluding Japan
 
2,420

 
2,358

 
7,156

 
6,760

Japan
 
924

 
1,032

 
2,889

 
2,922

Other
 
538

 
337

 
1,471

 
896

Total Non-U.S.
 
46,931

 
47,261

 
141,237

 
138,434

 
 
 
 
 
 
 
 
 
Total
 
$
160,952

 
$
160,051

 
$
487,679

 
$
472,829



Long-lived assets by geographical area
 
 
 
 
 
 
As of September 30
 
As of December 31
($000)
 
2012

 
2011

United States
 
$
54,060

 
$
44,572

United Kingdom
 
7,611

 
7,512

Europe, excluding the United Kingdom
 
2,429

 
2,629

Australia
 
1,519

 
1,415

Canada
 
1,853

 
2,076

Asia, excluding Japan
 
10,033

 
9,656

Japan
 
207

 
282

Other
 
161

 
54

Total Non-U.S.
 
23,813

 
23,624

 
 
 
 
 
Total
 
$
77,873

 
$
68,196

Investments and Fair Value Measurements
Investments and Fair Value Measurements
Investments and Fair Value Measurements
 
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below:
 
 
 
As of September 30
 
As of December 31
($000)
 
2012

 
2011

Available-for-sale
 
$
165,517

 
$
247,917

Held-to-maturity
 
19,948

 
16,347

Trading securities
 
5,434

 
5,491

Total
 
$
190,899

 
$
269,755




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 September 30, 2012
 
As of December 31, 2011
($000)
 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

Available-for-sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Government obligations
 
$
55,300

 
$
47

 
$
(622
)
 
$
54,725

 
$
139,099

 
$
72

 
$
(402
)
 
$
138,769

Corporate bonds
 
63,810

 
78

 
(431
)
 
63,457

 
61,589

 
14

 
(280
)
 
61,323

Commercial paper
 
4,995

 
2

 
—

 
4,997

 
29,964

 
2

 
(7
)
 
29,959

Equity securities and exchange-traded funds
 
29,325

 
1,962

 
(346
)
 
30,941

 
8,461

 
368

 
(558
)
 
8,271

Mutual funds
 
10,360

 
1,076

 
(39
)
 
11,397

 
9,298

 
363

 
(66
)
 
9,595

Total
 
$
163,790

 
$
3,165

 
$
(1,438
)
 
$
165,517

 
$
248,411

 
$
819

 
$
(1,313
)
 
$
247,917

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Certificates of deposit
 
$
19,948

 
$
—

 
$
—

 
$
19,948

 
$
16,347

 
$
—

 
$
—

 
$
16,347


 
As of September 30, 2012 and December 31, 2011, investments with unrealized losses for greater than a 12-month period were not material to the Condensed 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 September 30, 2012 and December 31, 2011. The expected maturities of certain fixed-income securities may differ from their contractual maturities because some of these holdings have call features that allow the issuers the right to prepay obligations without penalties.
 
 
 
As of September 30, 2012
 
As of December 31, 2011
($000)
 
Cost

 
Fair Value

 
Cost

 
Fair Value

Available-for-sale:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
107,770

 
$
106,979

 
$
155,651

 
$
155,247

Due in one to two years
 
16,061

 
15,938

 
75,001

 
74,804

Due in more than two years
 
274

 
262

 
—

 
—

Equity securities, exchange-traded funds, and mutual funds
 
39,685

 
42,338

 
17,759

 
17,866

Total
 
$
163,790

 
$
165,517

 
$
248,411

 
$
247,917

 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
19,942

 
$
19,942

 
$
16,342

 
$
16,342

Due in one to three years
 
6

 
6

 
5

 
5

Total
 
$
19,948

 
$
19,948

 
$
16,347

 
$
16,347


 
As of September 30, 2012 and December 31, 2011, held-to-maturity investments included a $1,500,000 and a $1,600,000 certificate of deposit, respectively, held primarily as collateral against bank guarantees for our office leases, primarily in Australia.

The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Condensed Consolidated Statements of Income: 
 
 
Nine months ended September 30
($000)
 
2012

 
2011

Realized gains
 
$
689

 
$
270

Realized losses
 
(741
)
 
—

Realized gains (losses), net
 
$
(52
)
 
$
270


 
We determine realized gains and losses using the specific identification method.

The following table shows the net unrealized gains (losses) on trading securities as recorded in our Condensed Consolidated Statements of Income:
 
 
 
Nine months ended September 30
($000)
 
2012

 
2011

Unrealized gains (losses), net
 
$
337

 
$
(810
)


The fair value of our assets subject to fair value measurements and that are measured at fair value on a recurring basis using the fair value hierarchy and the necessary disclosures under FASB ASC 820, Fair Value Measurement, are as follows:
 
 
 
Fair Value
 
Fair Value Measurements as of September 30, 2012
 
 
as of
 
Using Fair Value Hierarchy
($000)
 
September 30, 2012
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Government obligations
 
$
54,725

 
$
—

 
$
54,725

 
$
—

Corporate bonds
 
63,457

 
—

 
63,457

 
—

Commercial paper
 
4,997

 
—

 
4,997

 
—

Equity securities and exchange-traded funds
 
30,941

 
30,941

 
—

 
—

Mutual funds
 
11,397

 
11,397

 
—

 
—

Trading securities
 
5,434

 
5,434

 
—

 
—

Cash equivalents
 
20,468

 
20,468

 
—

 
—

Total
 
$
191,419

 
$
68,240

 
$
123,179

 
$
—

 
 
 
Fair Value
 
Fair Value Measurements as of December 31, 2011
 
 
as of
 
Using Fair Value Hierarchy
($000)
 
December 31, 2011
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Government obligations
 
$
138,769

 
$
—

 
$
138,769

 
$
—

Corporate bonds
 
61,323

 
—

 
61,323

 
—

Commercial paper
 
29,959

 
—

 
29,959

 
—

Equity securities and exchange-traded funds
 
8,271

 
8,271

 
—

 
—

Mutual funds
 
9,595

 
9,595

 
—

 
—

Trading securities
 
5,491

 
5,491

 
—

 
—

Cash equivalents
 
30,818

 
30,818

 
—

 
—

Total
 
$
284,226

 
$
54,175

 
$
230,051

 
$
—


 
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.

Based on our analysis of the nature and risks of our investments in equity securities and mutual 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. All other financial instruments were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from observable market data. We did not hold any securities categorized as Level 3 as of September 30, 2012 and December 31, 2011.
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities
 
Our investments in unconsolidated entities consist primarily of the following:
 
 
 
As of September 30


As of December 31

($000)
 
2012


2011

Investment in MJKK
 
$
20,085

 
$
19,662

Other equity method investments
 
6,185

 
2,807

Investments accounted for using the cost method
 
12,008

 
5,173

Total investments in unconsolidated entities
 
$
38,278

 
$
27,642


 
Morningstar Japan K.K. Morningstar Japan K.K. (MJKK) develops and markets products and services customized for the Japanese market. MJKK’s shares are traded on the Osaka Stock Exchange, “Hercules Market,” using the ticker 4765. 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 September 30

 
As of December 31

 
 
2012

 
2011

Morningstar’s approximate ownership of MJKK
 
34
%
 
33
%
 
 
 
 
 
Approximate market value of Morningstar’s ownership in MJKK:
 
 

 
 

Japanese yen (¥000)
 
¥
2,843,568

 
¥
2,797,704

Equivalent U.S. dollars ($000)
 
$
36,369

 
$
36,146



Other Equity Method Investments. As of September 30, 2012 and December 31, 2011, other equity method investments consist of our investment in Morningstar Sweden AB (Morningstar Sweden) and YCharts, Inc. (YCharts). Morningstar Sweden develops and markets products and services customized for investors in Sweden. Our ownership interest in Morningstar Sweden was approximately 24% as of September 30, 2012 and December 31, 2011. YCharts is a technology company that provides stock research and analysis. Our ownership interest in YCharts was approximately 20% as of September 30, 2012 and December 31, 2011. As of September 30, 2012, other equity method investments also includes our investment in Inquiry Financial Europe AB (Inquiry Financial). In September 2012, we acquired a minority equity stake in Inquiry Financial for $3,554,000. Inquiry Financial is a provider of sell-side consensus estimate data. Our ownership interest in Inquiry Financial was approximately 34% as of September 30, 2012.

We did not record any impairment losses on our equity method investments in the first nine months of 2012 or 2011.
 
Cost Method Investments. As of September 30, 2012 and December 31, 2011, our cost method investments consist of minority investments in Pitchbook Data, Inc. (Pitchbook) and Bundle Corporation (Bundle). As of September 30, 2012, our cost method investments also include HelloWallet LLC (HelloWallet). Pitchbook offers detailed data and information about private equity transactions, investors, companies, limited partners, and service providers. Bundle is a social media company dedicated to helping people make smarter spending and saving choices. HelloWallet is a provider of personalized financial guidance to employees of Fortune 1000 companies. We paid approximately $6,750,000 for the minority equity stake in HelloWallet in the first quarter of 2012. We did not record any impairment losses on our cost method investments in the first nine months of 2012 or 2011.
Liability for Vacant Office Space
Liability for Vacant Office Space
Liability for Vacant Office Space
 
We include our liability for vacant office space in "Accounts payable and accrued liabilities" and "Other long-term liabilities," as appropriate, on our Condensed Consolidated Balance Sheets. The following table shows the change in our liability for vacant office space from December 31, 2011 to September 30, 2012:

Liability for vacant office space
 
($000)

Balance as of December 31, 2011
 
$
919

Reduction of liability for lease and other related payments
 
(768
)
Balance as of September 30, 2012
 
$
151



Stock-Based Compensation
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, stock options, restricted stock units, and restricted stock. We granted stock options, restricted stock units, and restricted stock 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. Any shares subject to awards under the 2011 Plan, but not under the 2004 Plan, that are withheld by us in connection with the payment of any required income tax withholding will be available for awards under the 2011 Plan.

The following table summarizes the number of shares available for future grants under our 2011 Plan:
 
 
 
As of September 30

(000)
 
2012

Shares available for future grants
 
4,760


 

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 three and nine months ended September 30, 2012 and September 30, 2011:
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2012

 
2011

 
2012

 
2011

Restricted stock units
 
$
3,396

 
$
3,372

 
$
9,944

 
$
9,489

Restricted stock
 
444

 
444

 
1,332

 
1,752

Stock options
 
154

 
135

 
318

 
202

Total stock-based compensation expense
 
$
3,994

 
$
3,951

 
$
11,594

 
$
11,443

 
 
 
 
 
 
 
 
 
Income tax benefit related to the stock-based compensation expense
 
$
931

 
$
967

 
$
2,735

 
$
2,636


 
The following table summarizes the amount of unrecognized stock-based compensation expense as of September 30, 2012 and the expected number of months over which the expense will be recognized:
 
 
Unrecognized stock-based compensation expense ($000)

 
Expected amortization period (months)

Restricted stock units
 
$
30,356

 
33

Restricted stock
 
4,587

 
31

Stock options
 
1,201

 
30

Total unrecognized stock-based compensation expense
 
$
36,144

 
33



In accordance with FASB ASC 718, Compensation—Stock Compensation, we estimate forfeitures of employee stock-based awards and recognize compensation cost only for those awards expected to vest. Our largest annual equity grants typically have vesting dates in the second quarter. We adjust the stock-based compensation expense during the third quarter to reflect those awards that ultimately vested and update our estimate of the forfeiture rate that will be applied to awards not yet vested.
 
Restricted Stock Units
 
Restricted stock units represent the right to receive a share of Morningstar common stock when that unit vests. Restricted stock units to employees vest ratably over a four-year period. Restricted stock units granted to non-employee directors vest ratably over a three-year period. For restricted stock units granted through December 31, 2008, employees could elect to defer receipt of the Morningstar common stock issued upon vesting of the restricted stock unit.

We measure the fair value of our restricted stock units on the date of grant 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 first nine months of 2012:
Restricted Stock Units (RSUs)
 
Unvested

 
Vested but
Deferred

 
Total

 
Weighted
Average
Grant Date Value
per RSU

RSUs outstanding—December 31, 2011
 
741,043

 
20,076

 
761,119

 
$
50.66

Granted
 
293,609

 
—

 
293,609

 
55.39

Dividend equivalents
 
3,720

 
130

 
3,850

 
51.32

Vested
 
(253,338
)
 
—

 
(253,338
)
 
50.70

Vested but deferred
 
1,424

 
(1,424
)
 
—

 
—

Issued
 
—

 
—

 
—

 
—

Forfeited
 
(66,395
)
 
—

 
(66,395
)
 
50.17

RSUs outstanding—September 30, 2012
 
720,063

 
18,782

 
738,845

 
52.59


 
Restricted Stock
 
In conjunction with the Realpoint acquisition in May 2010, we issued 199,174 shares of restricted stock to the selling employee-shareholders under the 2004 Stock Incentive Plan. The restricted stock vests ratably over a five-year period from the acquisition date and may be subject to forfeiture if the holder terminates his or her employment during the vesting period.

Because of the terms of the restricted stock agreements prepared in conjunction with the Realpoint acquisition, we account for the grant of restricted stock as stock-based compensation expense and not as part of the acquisition consideration.
 

We measured the fair value of the restricted stock on the date of grant based on the closing market price of our common stock on the day prior to the grant. We amortize the fair value of $9,363,000 to stock-based compensation expense over the vesting period. The stock-based compensation expense recorded in the first nine months of 2011 included approximately $396,000 of expense recognized upon the accelerated vesting of a restricted stock grant. We have assumed that all of the remaining restricted stock will ultimately vest, and therefore have not incorporated a forfeiture rate for purposes of determining the stock-based compensation expense.
 
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. Almost all of the options granted under the 2004 Stock Incentive Plan have a premium feature in which the exercise price increases over the term of the option at a rate equal to the 10-year Treasury bond yield as of the date of grant. Options granted under the 2011 Plan have an exercise price equal to the fair market value on the grant date.

In May 2011, we granted 86,106 stock options under the 2004 Stock Incentive Plan. In November 2011, we granted 6,095 stock options under the 2011 Plan. We estimated the fair value of the options on the date of grant 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 tables summarize stock option activity in the first nine months of 2012 for our various stock option grants. The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. 
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date
 
Underlying
Shares

 
Weighted
Average
Exercise
Price

Options outstanding—December 31, 2011
 
398,859

 
$
19.72

Granted
 
—

 
—

Canceled
 
(600
)
 
14.70

Exercised
 
(78,147
)
 
20.06

Options outstanding—September 30, 2012
 
320,112

 
20.34

 
 
 
 
 
Options exercisable—September 30, 2012
 
320,112

 
$
20.34


 
All Other Option Grants, Excluding Activity Shown Above
 
Underlying
Shares

 
Weighted
Average
Exercise
Price

Options outstanding—December 31, 2011
 
818,552

 
$
22.76

Granted
 
—

 
—

Canceled
 
(22,304
)
 
39.77

Exercised
 
(301,761
)
 
16.71

Options outstanding—September 30, 2012
 
494,487

 
26.19

 
 
 
 
 
Options exercisable—September 30, 2012
 
438,864

 
$
22.22

 
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:
 
 
 
Nine months ended September 30
($000)
 
2012

 
2011

Intrinsic value of options exercised
 
$
17,161

 
$
25,061


 

The table below shows additional information for options outstanding and exercisable as of September 30, 2012:
 
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number of  Options

 
Weighted
Average
Remaining
Contractual
Life (years)

 
Weighted
Average
Exercise
Price

 
Aggregate
Intrinsic
Value
($000)

 
Exercisable Shares

 
Weighted Average Remaining Contractual Life (years)

 
Weighted Average Exercise Price

 
Aggregate Intrinsic Value ($000)

$8.57 - $14.70
 
140,153

 
0.57

 
$
8.58

 
$
7,576

 
140,153

 
0.57

 
$
8.58

 
$
7,576

$20.30 - $46.29
 
600,771

 
2.42

 
23.35

 
23,604

 
600,771

 
2.42

 
23.35

 
23,604

$57.28 - $59.35
 
73,675

 
8.79

 
57.45

 
383

 
18,052

 
8.75

 
57.28

 
97

$8.57 - $59.35
 
814,599

 
2.68

 
23.89

 
$
31,563

 
758,976

 
2.23

 
21.43

 
$
31,277

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected to Vest
 
 
 
 
 
 
 
 
 
 
 
 
 
$8.57 - $59.35
 
814,599

 
2.68

 
$
23.89

 
$
31,563

 
 
 
 
 
 
 
 

 
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 September 30, 2012. The intrinsic value is based on our closing stock price of $62.64 on that date.

Excess Tax Benefits Related to Stock-Based Compensation
 
FASB ASC 718, Compensation—Stock Compensation, requires that we classify the cash flows that result from excess tax benefits as financing cash flows. Excess tax benefits correspond to the portion of the tax deduction taken on our income tax return that exceeds the amount of tax benefit related to the compensation cost recognized in our Statement of Income. The following table summarizes our excess tax benefits for the three and nine months ended September 30, 2012 and September 30, 2011:
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2012

 
2011

 
2012

 
2011

Excess tax benefits related to stock-based compensation
 
$
459

 
$
1,450

 
$
5,007

 
$
7,621

Income Taxes
Income Taxes
Income Taxes
 
Effective Tax Rate

The following table shows our effective income tax rate for the three and nine months ended September 30, 2012 and September 30, 2011:
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2012

 
2011

 
2012

 
2011

Income before income taxes and equity in net income of unconsolidated entities
 
$
41,744

 
$
33,285

 
$
114,933

 
$
104,484

Equity in net income of unconsolidated entities
 
478

 
428

 
1,541

 
1,397

Net loss attributable to the noncontrolling interest
 
34

 
10

 
62

 
106

Total
 
$
42,256

 
$
33,723

 
$
116,536

 
$
105,987

Income tax expense
 
$
15,186

 
$
12,343

 
$
41,441

 
$
35,585

Effective tax rate
 
35.9
%
 
36.6
%
 
35.6
%
 
33.6
%

 
Our effective tax rate in the third quarter of 2012 was 35.9%, a decrease of 0.7 percentage points compared with the prior-year period. Our effective tax rate in the first nine months of 2012 was 35.6%, an increase of 2.0 percentage points compared with the first nine months of 2011. The effective tax rate increase in the year-to-date period is due primarily to lower credit incentives in the current year.

Unrecognized Tax Benefits

The table below provides information concerning our gross unrecognized tax benefits as of September 30, 2012 and December 31, 2011. The table also provides the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized.

 
 
As of September 30
 
As of December 31
($000)
 
2012

 
2011

Gross unrecognized tax benefits
 
$
11,732

 
$
12,189

Gross unrecognized tax benefits that would affect income tax expense
 
$
11,674

 
$
11,907

Decrease in income tax expense upon recognition of gross unrecognized tax benefits
 
$
9,543

 
$
9,827



There were no significant changes to unrecognized tax benefits in the first nine months of 2012.

Our Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits.

 
 
As of September 30
 
As of December 31
Liabilities for Unrecognized Tax Benefits ($000)
 
2012

 
2011

Current liability
 
$
4,971

 
$
5,329

Non-current liability
 
6,278

 
6,200

Total liability for unrecognized tax benefits
 
$
11,249

 
$
11,529



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 2007 to the present. In non-U.S. jurisdictions, the statute of limitations generally extends to years prior to 2005.

We are currently under audit by the U.S. federal and various state and local tax authorities in the United States, as well as tax authorities in certain non-U.S. jurisdictions. It is possible, though not likely, that the examination phase of some of these audits will conclude in 2012. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits.
 
Our effective tax rate reflects the fact that we are not recording an income tax benefit related to losses recorded by certain of our non-U.S. operations. The net operating losses (NOLs) may become deductible in certain non-U.S. tax jurisdictions to the extent these non-U.S. operations become profitable. In the year certain non-U.S. entities record a loss, we do not record a corresponding tax benefit, thus increasing our effective tax rate. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. Upon determining that it is more likely than not that the NOLs will be realized, we reduce the tax valuation allowances related to these NOLs, which results in a reduction to our income tax expense and our effective tax rate in the period.

Contingencies
Contingencies
Contingencies

Life's Good S.T.A.B.L. Hedge Fund

In September 2011, three individual investors in Life's Good S.T.A.B.L. Mortgage hedge fund (LG), Marta Klass, Gregory Martin, and Richard Roellig, filed a complaint in the United States District Court for the Eastern District of Pennsylvania against LG, its principal Robert Stinson, and several other parties, including Morningstar, Inc. (the Klass Matter). The plaintiffs claim that Morningstar committed fraud and aided and abetted the other defendants' breach of fiduciary duty through the 5-star rating LG obtained from Morningstar. The plaintiffs seek unspecified damages. Hedge fund managers self-report their performance data to Morningstar.

More than a year before the Klass Matter, in June 2010, the SEC filed suit against LG and other entities claiming they were part of a Ponzi scheme operated by Stinson. As a result, LG and the other entities were placed in court-appointed receivership. Morningstar was not part of the SEC suit or receivership. Since that time, the Receiver, as part of his duties, has been investigating whether to assert claims against third parties. Morningstar is aware of 14 lawsuits filed by the Receiver seeking to recover money for the fund.

In November 2011, Morningstar filed a motion to dismiss the Klass Matter. On behalf of the entities in receivership, the Receiver filed a motion to stay the proceedings because the Receivership Order does not permit suits against the entities in receivership without court permission. The court granted the Receiver's motion and stayed the Klass Matter. In April 2012, the Receiver filed a complaint against Morningstar, in which the Receiver claims that Morningstar is liable for contribution and aiding and abetting Stinson's breach of fiduciary duty and fraud through the 5-star rating LG obtained from Morningstar. The Receiver seeks unspecified damages. The same day the Receiver filed his complaint, Morningstar sought leave from the court to file a counter suit against Stinson and two of his entities-Keystone State Capital Corporation and LG-for, among other things, fraud, misrepresentation, and breach of user agreements. In June 2012, the court denied Morningstar's motion for leave to file suit. The court took no position on the merits of Morningstar's claims, and did not preclude Morningstar from renewing its motion to file a complaint at a later time, but deferred to the Receiver's request not to subject the receivership estate to additional litigation at this early point in the receivership. In August 2012, the court denied Morningstar's motion to dismiss the Receiver's complaint.

Morningstar believes the allegations against it by the Klass plaintiffs and the Receiver have no legal or factual basis and plans to vigorously contest the claims. Morningstar also intends to refile its affirmative claims against Stinson, Keystone, and LG at a later time consistent with the court's order. We cannot predict the outcome of the proceedings.

Egan-Jones Rating Co.

In June 2010, Egan-Jones Rating Co. filed a complaint in the Court of Common Pleas of Montgomery County, Pennsylvania against Realpoint, LLC (now known as Morningstar Credit Ratings, LLC) and Morningstar, Inc. in connection with a December 2007 agreement between Egan-Jones and Morningstar Credit Ratings for certain data-sharing and other services. In addition to damages, Egan-Jones filed a petition seeking an injunction to temporarily prevent Morningstar from offering corporate credit ratings through December 31, 2010. In September 2010, the court denied Egan-Jones's request for a preliminary injunction against Morningstar's corporate credit ratings business. Morningstar Credit Ratings and Morningstar continue to vigorously contest liability on all of Egan-Jones' claims for damages. We cannot predict the outcome of the proceeding.

Business Logic Holding Corporation

In November 2009, Business Logic Holding Corporation filed a complaint in the Circuit Court of Cook County, Illinois against Ibbotson Associates, Inc. and Morningstar, Inc. relating to Ibbotson's prior commercial relationship with Business Logic. Business Logic is alleging breach of contract and trade secret misappropriation in connection with Ibbotson's development of a proprietary web-service software and user interface that connects plan participant data with the Ibbotson Wealth Forecasting Engine. Business Logic seeks, among other things, injunctive relief and unspecified damages. Ibbotson and Morningstar answered the complaint, and Ibbotson asserted a counterclaim against Business Logic alleging trade secret misappropriation and breach of contract, seeking damages and injunctive relief. While Morningstar and Ibbotson are vigorously contesting the claims against them, we cannot predict the outcome of the proceeding.

Morningstar Associates, LLC Subpoena from the New York Attorney General's Office

In December 2004, Morningstar Associates, LLC, a wholly owned subsidiary of Morningstar, Inc., received a subpoena from the New York Attorney General's office seeking information and documents related to an investigation the New York Attorney General's office is conducting. The subpoena asked for documents relating to the investment consulting services the company offers to retirement plan providers, including fund lineup recommendations for retirement plan sponsors. Morningstar Associates has provided the requested information and documents.
 
In 2005, Morningstar Associates received subpoenas seeking information and documents related to investigations being conducted by the SEC and United States Department of Labor. The subpoenas were similar in scope to the New York Attorney General subpoena. In January 2007 and September 2009, respectively, the SEC and Department of Labor each notified Morningstar Associates that it had ended its investigation, with no enforcement action, fines, or penalties.
 
In January 2007, Morningstar Associates received a Notice of Proposed Litigation from the New York Attorney General's office. The Notice centers on disclosure relating to an optional service offered to retirement plan sponsors (employers) that select 401(k) plan services from ING, one of Morningstar Associates' clients. The Notice gave Morningstar Associates the opportunity to explain why the New York Attorney General's office should not institute proceedings. Morningstar Associates promptly submitted its explanation and has cooperated fully with the New York Attorney General's office.
 
We cannot predict the scope, timing, or outcome of this matter, which may include the institution of administrative, civil, injunctive, or criminal proceedings, the imposition of fines and penalties, and other remedies and sanctions, any of which could lead to an adverse impact on our stock price, the inability to attract or retain key employees, and the loss of customers. We also cannot predict what impact, if any, this matter may have on our business, operating results, or financial condition.

We have not provided an estimate of loss or range of loss in connection with the matters described above because no such estimate can reasonably be made.

Other Matters

In addition to these proceedings, we are involved in legal proceedings and litigation that have arisen in the normal course of our business. Although the outcome of a particular proceeding can never be predicted, we do not believe that the result of any of these other matters will have a material adverse effect on our business, operating results, or financial position.
Share Repurchase Program
Share Repurchase Program Disclosure [Text Block]
Share Repurchase Program
 
In September 2010, the board of directors approved a share repurchase program that authorizes the repurchase of up to $100 million in shares of our outstanding common stock. In December 2011, the board approved an increase to the 2010 share repurchase program. The board approval authorized the company to repurchase up to an additional $200 million in shares of our outstanding common stock with a revised expiration date of December 31, 2013. We may repurchase shares from time to time at prevailing market prices on the open market or in private transactions at our discretion. As of September 30, 2012, we had repurchased a total of 3,964,411 shares for $231,553,933 under this authorization.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements

In September 2011, the FASB issued ASU No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment. The objective of ASU No. 2011-08 is to simplify how entities test goodwill for impairment. ASU No. 2011-08 provides an option for companies to use a qualitative approach to test goodwill for impairment if certain conditions are met. For Morningstar, the amendments are effective for annual and interim goodwill impairment tests performed in 2012. Early adoption will be permitted. We perform our annual impairment testing in the fourth quarter and do not expect the provisions of ASU No. 2011-08 to have a material effect on our Consolidated Financial Statements.
Subsequent Events
Subsequent Events
Subsequent Events

In October 2012, we sold Morningstar Investor Relations Services to UK-based Investis, a leading specialist in digital corporate communications for public companies. In October 2012, we also sold the Morningstar Australasia trade publishing assets to Sterling Publishing Pty Ltd. We have not reclassified the operating results of these businesses, included as part of our Investment Information segment, to discontinued operations, nor have we reclassified the related assets and liabilities to held for disposition, because these amounts are not significant to our consolidated statements or segment disclosures. We expect to include a gain of approximately $6 million to $7 million on the disposal of these businesses in our fourth quarter and full-year 2012 results.
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies)
Fair Value of Financial Instruments, Policy [Policy Text Block] 

In addition, effective January 1, 2012, we adopted FASB ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. ASU No. 2011-04 clarifies existing fair value measurement and disclosure requirements, amends certain fair value measurement principles, and requires additional disclosures about fair value measurements. The adoption of ASU No. 2011-04 did not have a material impact on our Consolidated Financial Statements.
Segment Reporting, Policy [Policy Text Block] 
Our segment accounting policies are the same as those described in Note 3, except for the capitalization and amortization of internal product development costs, amortization of intangible assets, and costs related to corporate functions. We exclude these items from our operating segment results to provide our chief operating decision maker with a better indication of each segment’s ability to generate cash flow. This information is one of the criteria used by our chief operating decision maker in determining how to allocate resources to each segment. We include capitalization and amortization of internal product development costs, amortization of intangible assets, and costs related to corporate functions in the Corporate Items category. Our segment disclosures are consistent with the business segment information provided to our chief operating decision maker on a recurring basis; for that reason, we don’t present balance sheet information by segment. We disclose goodwill by segment in accordance with the requirements of FASB ASC 350-20-50, Intangibles - Goodwill - Disclosure
Investment, Policy [Policy Text Block] 
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below:
Investments and Fair value Measurements (Policies)
Investment, Policy [Policy Text Block]
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below:
Correction (Tables)
Schedule of Error Corrections and Prior Period Adjustments
The following tables shows our previously reported amounts, the correction, and our as corrected amounts:
 
 
Nine months ended September 30, 2011
($000)
 
Previously Reported

 
Correction

 
As Corrected

Investing Activities
 
 
 
 
 
 
Purchases of investments
 
$
(281,698
)
 
$
(17,178
)
 
$
(298,876
)
Proceeds from maturities and sales of investments
 
$
205,421

 
$
17,178

 
$
222,599

Cash used for investing activities
 
$
(89,791
)
 
$
—

 
$
(89,791
)
Acquisitions, Goodwill, and Other Intangible Assets (Tables)
Schedule of Goodwill 
The following table shows the changes in our goodwill balances from December 31, 2011 to September 30, 2012:
 
 
($000)

Balance as of December 31, 2011
$
318,492

Net change, primarily currency translation
2,642

Balance as of September 30, 2012
$
321,134

Schedule of Intangible Assets 
The following table summarizes our intangible assets: 
 
 
As of September 30, 2012
 
As of December 31, 2011
($000)
 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)

 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)

Intellectual property
 
$
32,343

 
$
(22,488
)
 
$
9,855

 
9

 
$
32,293

 
$
(20,455
)
 
$
11,838

 
9

Customer-related assets
 
135,772

 
(62,763
)
 
73,009

 
12

 
134,396

 
(52,611
)
 
81,785

 
12

Supplier relationships
 
240

 
(93
)
 
147

 
20

 
240

 
(84
)
 
156

 
20

Technology-based assets
 
81,308

 
(41,735
)
 
39,573

 
9

 
80,694

 
(35,130
)
 
45,564

 
9

Non-competition agreement
 
1,766

 
(1,518
)
 
248

 
4

 
1,751

 
(1,285
)
 
466

 
4

Total intangible assets
 
$
251,429

 
$
(128,597
)
 
$
122,832

 
10

 
$
249,374

 
$
(109,565
)
 
$
139,809

 
10

 
Schedule of Intangible Asset, Amortization Expense 
The following table summarizes our amortization expense related to intangible assets:
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2012

 
2011

 
2012

 
2011

Amortization expense
 
$
5,941

 
$
6,894

 
$
17,972

 
$
20,039

Schedule of Expected Amortization Expense 
We expect intangible amortization expense for 2012 and subsequent years as follows:
 
 
($000)

2012
 
$
24,048

2013
 
21,317

2014
 
20,058

2015
 
19,186

2016
 
14,564

2017
 
9,954

Income Per Share (Tables)
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:

 
 
Three months ended September 30
 
Nine months ended September 30
(in thousands, except per share amounts)
 
2012

 
2011

 
2012

 
2011

 
 
 
 
 
 
 
 
 
Basic net income per share attributable to Morningstar, Inc.:
 
 

 
 

 
 
 
 
Net income attributable to Morningstar, Inc.:
 
$
27,070

 
$
21,380

 
$
75,095

 
$
70,402

Less: Distributed earnings available to participating securities
 
(12
)
 
(8
)
 
(39
)
 
(25
)
Less: Undistributed earnings available to participating securities
 
(53
)
 
(57
)
 
(144
)
 
(189
)
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
$
27,005

 
$
21,315

 
$
74,912

 
$
70,188

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
 
47,975

 
50,278

 
49,028

 
50,082

 
 
 
 
 
 
 
 
 
Basic net income per share attributable to Morningstar, Inc.
 
$
0.56

 
$
0.42

 
$
1.53

 
$
1.40

 
 
 
 
 
 
 
 
 
Diluted net income per share attributable to Morningstar, Inc.:
 
 
 
 
 
 
 
 
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
$
27,005

 
$
21,315

 
$
74,912

 
$
70,188

Add: Undistributed earnings allocated to participating securities
 
53

 
57

 
144

 
189

Less: Undistributed earnings reallocated to participating securities
 
(53
)
 
(56
)
 
(142
)
 
(186
)
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders
 
$
27,005

 
$
21,316

 
$
74,914

 
$
70,191

 
 


 


 


 


Weighted average common shares outstanding
 
47,975

 
50,278

 
49,028

 
50,082

Net effect of dilutive stock options and restricted stock units
 
506

 
845

 
636

 
989

Weighted average common shares outstanding for computing diluted income per share
 
48,481

 
51,123

 
49,664

 
51,071

 
 


 


 


 


Diluted net income per share attributable to Morningstar, Inc.
 
$
0.56

 
$
0.42

 
$
1.51

 
$
1.37


Segment and Geographical Area Information (Tables)
Schedule of Segment Reporting Information, by Segment 
The following tables present information about our operating segments and by geographical area:
 
 
 
Three months ended September 30, 2012
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

External revenue
 
$
129,357

 
$
31,595

 
$
—

 
$
160,952

Operating expense, excluding stock-based compensation expense, depreciation, and amortization
 
85,366

 
16,145

 
4,761

 
106,272

Stock-based compensation expense
 
2,738

 
577

 
679

 
3,994

Depreciation and amortization
 
2,296

 
31

 
8,495

 
10,822

Operating income (loss)
 
$
38,957

 
$
14,842

 
$
(13,935
)
 
$
39,864

 
 
 
 
 
 
 
 
 
U.S. capital expenditures
 
 

 
 

 
 

 
$
3,066

Non-U.S. capital expenditures
 
 

 
 

 
 

 
$
1,888

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2011
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

External revenue
 
$
125,804

 
$
34,247

 
$
—

 
$
160,051

Operating expense, excluding stock-based compensation expense, depreciation, and amortization
 
89,652

 
15,587

 
6,050

 
111,289

Stock-based compensation expense
 
2,609

 
556

 
786

 
3,951

Depreciation and amortization
 
2,117

 
42

 
8,788

 
10,947

Operating income (loss)
 
$
31,426

 
$
18,062

 
$
(15,624
)
 
$
33,864

 
 
 
 
 
 
 
 
 
U.S. capital expenditures
 
 

 
 

 
 

 
$
4,560

Non-U.S. capital expenditures
 
 

 
 

 
 

 
$
1,711

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2012
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

External revenue
 
$
391,031

 
$
96,648

 
$
—

 
$
487,679

Operating expense, excluding stock-based compensation expense, depreciation, and amortization
 
265,719

 
49,277

 
18,074

 
333,070

Stock-based compensation expense
 
7,828

 
1,657

 
2,109

 
11,594

Depreciation and amortization
 
6,840

 
108

 
24,668

 
31,616

Operating income (loss)
 
$
110,644

 
$
45,606

 
$
(44,851
)
 
$
111,399

 
 
 
 
 
 
 
 
 
U.S. capital expenditures
 
 

 
 

 
 

 
$
17,280

Non-U.S. capital expenditures
 
 

 
 

 
 

 
$
5,596

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2011
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

External revenue
 
$
374,319

 
$
98,510

 
$
—

 
$
472,829

Operating expense, excluding stock-based compensation expense, depreciation, and amortization
 
259,899

 
43,258

 
22,237

 
325,394

Stock-based compensation expense
 
7,567

 
1,529

 
2,347

 
11,443

Depreciation and amortization
 
6,023

 
124

 
25,565

 
31,712

Operating income (loss)
 
$
100,830

 
$
53,599

 
$
(50,149
)
 
$
104,280

 
 
 
 
 
 
 
 
 
U.S. capital expenditures
 
 

 
 

 
 

 
$
8,084

Non-U.S. capital expenditures
 
 

 
 

 
 

 
$
6,605

 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2012
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

Goodwill
 
$
279,451

 
$
41,683

 
$
—

 
$
321,134

 
 
 
As of December 31, 2011
($000)
 
Investment
Information

 
Investment
Management

 
Corporate Items

 
Total

Goodwill
 
$
277,059

 
$
41,433

 
$
—

 
$
318,492

 
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] 
External revenue by geographical area
 
 
 
 
 
 
 
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2012

 
2011

 
2012

 
2011

United States
 
$
114,021

 
$
112,790

 
$
346,442

 
$
334,395

United Kingdom
 
13,711

 
13,588

 
42,160

 
40,382

Europe, excluding the United Kingdom
 
11,643

 
12,609

 
35,980

 
36,750

Australia
 
10,090

 
10,614

 
29,230

 
30,600

Canada
 
7,605

 
6,723

 
22,351

 
20,124

Asia, excluding Japan
 
2,420

 
2,358

 
7,156

 
6,760

Japan
 
924

 
1,032

 
2,889

 
2,922

Other
 
538

 
337

 
1,471

 
896

Total Non-U.S.
 
46,931

 
47,261

 
141,237

 
138,434

 
 
 
 
 
 
 
 
 
Total
 
$
160,952

 
$
160,051

 
$
487,679

 
$
472,829



Long-lived assets by geographical area
 
 
 
 
 
 
As of September 30
 
As of December 31
($000)
 
2012

 
2011

United States
 
$
54,060

 
$
44,572

United Kingdom
 
7,611

 
7,512

Europe, excluding the United Kingdom
 
2,429

 
2,629

Australia
 
1,519

 
1,415

Canada
 
1,853

 
2,076

Asia, excluding Japan
 
10,033

 
9,656

Japan
 
207

 
282

Other
 
161

 
54

Total Non-U.S.
 
23,813

 
23,624

 
 
 
 
 
Total
 
$
77,873

 
$
68,196

Investments and Fair Value Measurements (Tables)
Schedule of Investments 
We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below:
 
 
 
As of September 30
 
As of December 31
($000)
 
2012

 
2011

Available-for-sale
 
$
165,517

 
$
247,917

Held-to-maturity
 
19,948

 
16,347

Trading securities
 
5,434

 
5,491

Total
 
$
190,899

 
$
269,755

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 September 30, 2012
 
As of December 31, 2011
($000)
 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

Available-for-sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Government obligations
 
$
55,300

 
$
47

 
$
(622
)
 
$
54,725

 
$
139,099

 
$
72

 
$
(402
)
 
$
138,769

Corporate bonds
 
63,810

 
78

 
(431
)
 
63,457

 
61,589

 
14

 
(280
)
 
61,323

Commercial paper
 
4,995

 
2

 
—

 
4,997

 
29,964

 
2

 
(7
)
 
29,959

Equity securities and exchange-traded funds
 
29,325

 
1,962

 
(346
)
 
30,941

 
8,461

 
368

 
(558
)
 
8,271

Mutual funds
 
10,360

 
1,076

 
(39
)
 
11,397

 
9,298

 
363

 
(66
)
 
9,595

Total
 
$
163,790

 
$
3,165

 
$
(1,438
)
 
$
165,517

 
$
248,411

 
$
819

 
$
(1,313
)
 
$
247,917

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Certificates of deposit
 
$
19,948

 
$
—

 
$
—

 
$
19,948

 
$
16,347

 
$
—

 
$
—

 
$
16,347

Investments Classified by Contractual Maturity Date 
The expected maturities of certain fixed-income securities may differ from their contractual maturities because some of these holdings have call features that allow the issuers the right to prepay obligations without penalties.
 
 
 
As of September 30, 2012
 
As of December 31, 2011
($000)
 
Cost

 
Fair Value

 
Cost

 
Fair Value

Available-for-sale:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
107,770

 
$
106,979

 
$
155,651

 
$
155,247

Due in one to two years
 
16,061

 
15,938

 
75,001

 
74,804

Due in more than two years
 
274

 
262

 
—

 
—

Equity securities, exchange-traded funds, and mutual funds
 
39,685

 
42,338

 
17,759

 
17,866

Total
 
$
163,790

 
$
165,517

 
$
248,411

 
$
247,917

 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
19,942

 
$
19,942

 
$
16,342

 
$
16,342

Due in one to three years
 
6

 
6

 
5

 
5

Total
 
$
19,948

 
$
19,948

 
$
16,347

 
$
16,347

Schedule of Realized Gain (Loss) on Available-For-Sale Securities 

The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Condensed Consolidated Statements of Income: 
 
 
Nine months ended September 30
($000)
 
2012

 
2011

Realized gains
 
$
689

 
$
270

Realized losses
 
(741
)
 
—

Realized gains (losses), net
 
$
(52
)
 
$
270

Unrealized Gain (Loss) On Trading Securities 

The following table shows the net unrealized gains (losses) on trading securities as recorded in our Condensed Consolidated Statements of Income:
 
 
 
Nine months ended September 30
($000)
 
2012

 
2011

Unrealized gains (losses), net
 
$
337

 
$
(810
)
Fair Value, Assets Measured on Recurring Basis 

The fair value of our assets subject to fair value measurements and that are measured at fair value on a recurring basis using the fair value hierarchy and the necessary disclosures under FASB ASC 820, Fair Value Measurement, are as follows:
 
 
 
Fair Value
 
Fair Value Measurements as of September 30, 2012
 
 
as of
 
Using Fair Value Hierarchy
($000)
 
September 30, 2012
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Government obligations
 
$
54,725

 
$
—

 
$
54,725

 
$
—

Corporate bonds
 
63,457

 
—

 
63,457

 
—

Commercial paper
 
4,997

 
—

 
4,997

 
—

Equity securities and exchange-traded funds
 
30,941

 
30,941

 
—

 
—

Mutual funds
 
11,397

 
11,397

 
—

 
—

Trading securities
 
5,434

 
5,434

 
—

 
—

Cash equivalents
 
20,468

 
20,468

 
—

 
—

Total
 
$
191,419

 
$
68,240

 
$
123,179

 
$
—

 
 
 
Fair Value
 
Fair Value Measurements as of December 31, 2011
 
 
as of
 
Using Fair Value Hierarchy
($000)
 
December 31, 2011
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Government obligations
 
$
138,769

 
$
—

 
$
138,769

 
$
—

Corporate bonds
 
61,323

 
—

 
61,323

 
—

Commercial paper
 
29,959

 
—

 
29,959

 
—

Equity securities and exchange-traded funds
 
8,271

 
8,271

 
—

 
—

Mutual funds
 
9,595

 
9,595

 
—

 
—

Trading securities
 
5,491

 
5,491

 
—

 
—

Cash equivalents
 
30,818

 
30,818

 
—

 
—

Total
 
$
284,226

 
$
54,175

 
$
230,051

 
$
—

Investments in Unconsolidated Entities (Tables)
Schedule of Equity Method And Cost Method Investments 
Our investments in unconsolidated entities consist primarily of the following:
 
 
 
As of September 30


As of December 31

($000)
 
2012


2011

Investment in MJKK
 
$
20,085

 
$
19,662

Other equity method investments
 
6,185

 
2,807

Investments accounted for using the cost method
 
12,008

 
5,173

Total investments in unconsolidated entities
 
$
38,278

 
$
27,642

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 September 30

 
As of December 31

 
 
2012

 
2011

Morningstar’s approximate ownership of MJKK
 
34
%
 
33
%
 
 
 
 
 
Approximate market value of Morningstar’s ownership in MJKK:
 
 

 
 

Japanese yen (¥000)
 
¥
2,843,568

 
¥
2,797,704

Equivalent U.S. dollars ($000)
 
$
36,369

 
$
36,146

Liability for Vacant Office Space (Tables)
Liability for Vacant Office Space
The following table shows the change in our liability for vacant office space from December 31, 2011 to September 30, 2012:

Liability for vacant office space
 
($000)

Balance as of December 31, 2011
 
$
919

Reduction of liability for lease and other related payments
 
(768
)
Balance as of September 30, 2012
 
$
151

Stock-Based Compensation (Tables)
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 September 30

(000)
 
2012

Shares available for future grants
 
4,760

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 three and nine months ended September 30, 2012 and September 30, 2011:
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2012

 
2011

 
2012

 
2011

Restricted stock units
 
$
3,396

 
$
3,372

 
$
9,944

 
$
9,489

Restricted stock
 
444

 
444

 
1,332

 
1,752

Stock options
 
154

 
135

 
318

 
202

Total stock-based compensation expense
 
$
3,994

 
$
3,951

 
$
11,594

 
$
11,443

 
 
 
 
 
 
 
 
 
Income tax benefit related to the stock-based compensation expense
 
$
931

 
$
967

 
$
2,735

 
$
2,636

Schedule of Unrecognized Stock-Based Compensation Expense 
The following table summarizes the amount of unrecognized stock-based compensation expense as of September 30, 2012 and the expected number of months over which the expense will be recognized:
 
 
Unrecognized stock-based compensation expense ($000)

 
Expected amortization period (months)

Restricted stock units
 
$
30,356

 
33

Restricted stock
 
4,587

 
31

Stock options
 
1,201

 
30

Total unrecognized stock-based compensation expense
 
$
36,144

 
33

Schedule of Restricted Stock Units Award Activity 

The following table summarizes restricted stock unit activity during the first nine months of 2012:
Restricted Stock Units (RSUs)
 
Unvested

 
Vested but
Deferred

 
Total

 
Weighted
Average
Grant Date Value
per RSU

RSUs outstanding—December 31, 2011
 
741,043

 
20,076

 
761,119

 
$
50.66

Granted
 
293,609

 
—

 
293,609

 
55.39

Dividend equivalents
 
3,720

 
130

 
3,850

 
51.32

Vested
 
(253,338
)
 
—

 
(253,338
)
 
50.70

Vested but deferred
 
1,424

 
(1,424
)
 
—

 
—

Issued
 
—

 
—

 
—

 
—

Forfeited
 
(66,395
)
 
—

 
(66,395
)
 
50.17

RSUs outstanding—September 30, 2012
 
720,063

 
18,782

 
738,845

 
52.59

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 Options Granted at Exercise Price Below Fair Value per Share on Grant Date 
The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. 
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date
 
Underlying
Shares

 
Weighted
Average
Exercise
Price

Options outstanding—December 31, 2011
 
398,859

 
$
19.72

Granted
 
—

 
—

Canceled
 
(600
)
 
14.70

Exercised
 
(78,147
)
 
20.06

Options outstanding—September 30, 2012
 
320,112

 
20.34

 
 
 
 
 
Options exercisable—September 30, 2012
 
320,112

 
$
20.34

Schedule of All Other Option Granted 
All Other Option Grants, Excluding Activity Shown Above
 
Underlying
Shares

 
Weighted
Average
Exercise
Price

Options outstanding—December 31, 2011
 
818,552

 
$
22.76

Granted
 
—

 
—

Canceled
 
(22,304
)
 
39.77

Exercised
 
(301,761
)
 
16.71

Options outstanding—September 30, 2012
 
494,487

 
26.19

 
 
 
 
 
Options exercisable—September 30, 2012
 
438,864

 
$
22.22

 
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:
 
 
 
Nine months ended September 30
($000)
 
2012

 
2011

Intrinsic value of options exercised
 
$
17,161

 
$
25,061

Schedule of Options, Vested and Expected to Vest, Outstanding and Exercisable 

The table below shows additional information for options outstanding and exercisable as of September 30, 2012:
 
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number of  Options

 
Weighted
Average
Remaining
Contractual
Life (years)

 
Weighted
Average
Exercise
Price

 
Aggregate
Intrinsic
Value
($000)

 
Exercisable Shares

 
Weighted Average Remaining Contractual Life (years)

 
Weighted Average Exercise Price

 
Aggregate Intrinsic Value ($000)

$8.57 - $14.70
 
140,153

 
0.57

 
$
8.58

 
$
7,576

 
140,153

 
0.57

 
$
8.58

 
$
7,576

$20.30 - $46.29
 
600,771

 
2.42

 
23.35

 
23,604

 
600,771

 
2.42

 
23.35

 
23,604

$57.28 - $59.35
 
73,675

 
8.79

 
57.45

 
383

 
18,052

 
8.75

 
57.28

 
97

$8.57 - $59.35
 
814,599

 
2.68

 
23.89

 
$
31,563

 
758,976

 
2.23

 
21.43

 
$
31,277

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected to Vest
 
 
 
 
 
 
 
 
 
 
 
 
 
$8.57 - $59.35
 
814,599

 
2.68

 
$
23.89

 
$
31,563

 
 
 
 
 
 
 
 
Schedule of Tax Benefits Related to Share Based Compensation 
The following table summarizes our excess tax benefits for the three and nine months ended September 30, 2012 and September 30, 2011:
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2012

 
2011

 
2012

 
2011

Excess tax benefits related to stock-based compensation
 
$
459

 
$
1,450

 
$
5,007

 
$
7,621

Income Taxes (Tables)
Schedule of Effective Income Tax Rate Reconciliation 
The following table shows our effective income tax rate for the three and nine months ended September 30, 2012 and September 30, 2011:
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2012

 
2011

 
2012

 
2011

Income before income taxes and equity in net income of unconsolidated entities
 
$
41,744

 
$
33,285

 
$
114,933

 
$
104,484

Equity in net income of unconsolidated entities
 
478

 
428

 
1,541

 
1,397

Net loss attributable to the noncontrolling interest
 
34

 
10

 
62

 
106

Total
 
$
42,256

 
$
33,723

 
$
116,536

 
$
105,987

Income tax expense
 
$
15,186

 
$
12,343

 
$
41,441

 
$
35,585

Effective tax rate
 
35.9
%
 
36.6
%
 
35.6
%
 
33.6
%
Schedule of Gross Unrecognized Tax Benefits 
The table below provides information concerning our gross unrecognized tax benefits as of September 30, 2012 and December 31, 2011. The table also provides the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized.

 
 
As of September 30
 
As of December 31
($000)
 
2012

 
2011

Gross unrecognized tax benefits
 
$
11,732

 
$
12,189

Gross unrecognized tax benefits that would affect income tax expense
 
$
11,674

 
$
11,907

Decrease in income tax expense upon recognition of gross unrecognized tax benefits
 
$
9,543

 
$
9,827

Schedule of Liabilities for Unrecognized Tax Benefits 
Our Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits.

 
 
As of September 30
 
As of December 31
Liabilities for Unrecognized Tax Benefits ($000)
 
2012

 
2011

Current liability
 
$
4,971

 
$
5,329

Non-current liability
 
6,278

 
6,200

Total liability for unrecognized tax benefits
 
$
11,249

 
$
11,529

Correction (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Purchases of investments
$ (134,929)
$ (298,876)
Proceeds from maturities and sales of investments
216,350 
222,599 
Cash used for investing activities
48,237 
(89,791)
Previously Reported [Member]
 
 
Purchases of investments
 
(281,698)
Proceeds from maturities and sales of investments
 
205,421 
Cash used for investing activities
 
(89,791)
Correction [Member]
 
 
Purchases of investments
 
(17,178)
Proceeds from maturities and sales of investments
 
17,178 
Cash used for investing activities
 
$ 0 
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Goodwill [Roll Forward]
 
 
Goodwill, Beginning Balance
$ 318,492 
 
Other, primarily currency translation
2,642 
 
Goodwill, Ending Balance
321,134 
 
Goodwill impairment loss
$ 0 
$ 0 
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2012
Years
Dec. 31, 2011
Years
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
$ 251,429 
$ 249,374 
Accumulated Amortization
(128,597)
(109,565)
Intangible assets, Net
122,832 
139,809 
Weighted-Average Useful Life (years)
10 
10 
Intellectual Property [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
32,343 
32,293 
Accumulated Amortization
(22,488)
(20,455)
Intangible assets, Net
9,855 
11,838 
Weighted-Average Useful Life (years)
9 
9 
Customer Related Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
135,772 
134,396 
Accumulated Amortization
(62,763)
(52,611)
Intangible assets, Net
73,009 
81,785 
Weighted-Average Useful Life (years)
12 
12 
Supplier Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
240 
240 
Accumulated Amortization
(93)
(84)
Intangible assets, Net
147 
156 
Weighted-Average Useful Life (years)
20 
20 
Technology-Based Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
81,308 
80,694 
Accumulated Amortization
(41,735)
(35,130)
Intangible assets, Net
39,573 
45,564 
Weighted-Average Useful Life (years)
9 
9 
Non-competition Agreement [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
1,766 
1,751 
Accumulated Amortization
(1,518)
(1,285)
Intangible assets, Net
$ 248 
$ 466 
Weighted-Average Useful Life (years)
4 
4 
Goodwill and Other Intangible Assets (Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
 
Amortization expense
$ 5,941 
$ 6,894 
$ 17,972 
$ 20,039 
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
 
 
 
 
2012
24,048 
 
 
 
2013
21,317 
 
 
 
2014
20,058 
 
 
 
2015
19,186 
 
 
 
2016
14,564 
 
 
 
2017
$ 9,954 
 
 
 
Income Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Earnings Per Share, Basic [Abstract]
 
 
 
 
Net income attributable to Morningstar, Inc.
$ 27,070 
$ 21,380 
$ 75,095 
$ 70,402 
Less: Distributed Earnings Available to Participating Securities
(12)
(8)
(39)
(25)
Less: Undistributed earnings allocated to participating securities
(53)
(57)
(144)
(189)
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders
27,005 
21,315 
74,912 
70,188 
Weighted average common shares outstanding
47,975 
50,278 
49,028 
50,082 
Basic net income per share attributable to Morningstar, Inc.
$ 0.56 
$ 0.42 
$ 1.53 
$ 1.40 
Earnings Per Share, Diluted [Abstract]
 
 
 
 
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders
27,005 
21,315 
74,912 
70,188 
Add: Undistributed Earnings Allocated To Participating Securities
53 
57 
144 
189 
Less: Undistributed Earnings Reallocated to Participating Securities
(53)
(56)
(142)
(186)
Numerator for diluted net income per share - undistributed and distributed earnings available to common shareholders
$ 27,005 
$ 21,316 
$ 74,914 
$ 70,191 
Weighted average common shares outstanding
47,975 
50,278 
49,028 
50,082 
Net effect of dilutive stock options and restricted stock units
506 
845 
636 
989 
Weighted average common shares outstanding for computing diluted income per share
48,481 
51,123 
49,664 
51,071 
Diluted net income per share attributable to Morningstar, Inc.
$ 0.56 
$ 0.42 
$ 1.51 
$ 1.37 
Segment and Geographical Area Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Dec. 31, 2011
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
$ 160,952 
$ 160,051 
$ 487,679 
$ 472,829 
 
Operating expense, excluding stock-based compensation expense, depreciation, and amortization
106,272 
111,289 
333,070 
325,394 
 
Stock-based compensation expense
3,994 
3,951 
11,594 
11,443 
 
Depreciation and amortization
10,822 1
10,947 1
31,616 
31,712 
 
Operating income (loss)
39,864 
33,864 
111,399 
104,280 
 
Segment Reporting Information, Additional Information [Abstract]
 
 
 
 
 
Goodwill
321,134 
 
321,134 
 
318,492 
Investment Information [Member]
 
 
 
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
129,357 
125,804 
391,031 
374,319 
 
Operating expense, excluding stock-based compensation expense, depreciation, and amortization
85,366 
89,652 
265,719 
259,899 
 
Stock-based compensation expense
2,738 
2,609 
7,828 
7,567 
 
Depreciation and amortization
2,296 
2,117 
6,840 
6,023 
 
Operating income (loss)
38,957 
31,426 
110,644 
100,830 
 
Segment Reporting Information, Additional Information [Abstract]
 
 
 
 
 
Goodwill
279,451 
 
279,451 
 
277,059 
Investment Management [Member]
 
 
 
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
31,595 
34,247 
96,648 
98,510 
 
Operating expense, excluding stock-based compensation expense, depreciation, and amortization
16,145 
15,587 
49,277 
43,258 
 
Stock-based compensation expense
577 
556 
1,657 
1,529 
 
Depreciation and amortization
31 
42 
108 
124 
 
Operating income (loss)
14,842 
18,062 
45,606 
53,599 
 
Segment Reporting Information, Additional Information [Abstract]
 
 
 
 
 
Goodwill
41,683 
 
41,683 
 
41,433 
Corporate Items [Member]
 
 
 
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
0 
0 
0 
0 
 
Operating expense, excluding stock-based compensation expense, depreciation, and amortization
4,761 
6,050 
18,074 
22,237 
 
Stock-based compensation expense
679 
786 
2,109 
2,347 
 
Depreciation and amortization
8,495 
8,788 
24,668 
25,565 
 
Operating income (loss)
(13,935)
(15,624)
(44,851)
(50,149)
 
Segment Reporting Information, Additional Information [Abstract]
 
 
 
 
 
Goodwill
0 
 
0 
 
0 
U.S. [Member]
 
 
 
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
114,021 
112,790 
346,442 
334,395 
 
Segment Reporting Information, Additional Information [Abstract]
 
 
 
 
 
Capital expenditure
3,066 
4,560 
17,280 
8,084 
 
Non-U.S. [Member]
 
 
 
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
46,931 
47,261 
141,237 
138,434 
 
Segment Reporting Information, Additional Information [Abstract]
 
 
 
 
 
Capital expenditure
$ 1,888 
$ 1,711 
$ 5,596 
$ 6,605 
 
Segment and Geographical Area Information Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Dec. 31, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
$ 160,952 
$ 160,051 
$ 487,679 
$ 472,829 
 
Long-lived assets
77,873 
 
77,873 
 
68,196 
United States
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
114,021 
112,790 
346,442 
334,395 
 
Long-lived assets
54,060 
 
54,060 
 
44,572 
Non United States [Member]
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
46,931 
47,261 
141,237 
138,434 
 
Long-lived assets
23,813 
 
23,813 
 
23,624 
United Kingdom
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
13,711 
13,588 
42,160 
40,382 
 
Long-lived assets
7,611 
 
7,611 
 
7,512 
Europe, excluding the United Kingdom
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
11,643 
12,609 
35,980 
36,750 
 
Long-lived assets
2,429 
 
2,429 
 
2,629 
Australia
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
10,090 
10,614 
29,230 
30,600 
 
Long-lived assets
1,519 
 
1,519 
 
1,415 
Canada
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
7,605 
6,723 
22,351 
20,124 
 
Long-lived assets
1,853 
 
1,853 
 
2,076 
Asia, excluding Japan
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
2,420 
2,358 
7,156 
6,760 
 
Long-lived assets
10,033 
 
10,033 
 
9,656 
Japan
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
924 
1,032 
2,889 
2,922 
 
Long-lived assets
207 
 
207 
 
282 
Other
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
538 
337 
1,471 
896 
 
Long-lived assets
$ 161 
 
$ 161 
 
$ 54 
Investments and Fair Value Measurements (Classification of Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Fair Value Disclosures [Abstract]
 
 
Available-for-sale
$ 165,517 
$ 247,917 
Held-to-maturity
19,948 
16,347 
Trading securities
5,434 
5,491 
Total
$ 190,899 
$ 269,755 
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Dec. 31, 2011
Available-for-sale:
 
 
 
Available-for-sale securities, Cost
$ 163,790 
 
$ 248,411 
Available-for-sale securities, Unrealized Gain
3,165 
 
819 
Available-for-sale securities, Unrealized Loss
(1,438)
 
(1,313)
Available-for-sale securities, Current
165,517 
 
247,917 
Held-to-maturity:
 
 
 
Held-to-maturity securities, Cost
19,948 
 
16,347 
Held-to-maturity securities, Unrecognized Gain
0 
 
0 
Held-to-maturity securities, Unrecognized Loss
0 
 
0 
Held-to-maturity securities, Current
19,948 
 
16,347 
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
 
 
 
Available-for-sale securities, realized gains
689 
270 
 
Available-for-sale securities, realized losses
(741)
0 
 
Available-for-sale securities, realized gains (losses), net
(52)
270 
 
Government Obligations [Member]
 
 
 
Available-for-sale:
 
 
 
Available-for-sale securities, Cost
55,300 
 
139,099 
Available-for-sale securities, Unrealized Gain
47 
 
72 
Available-for-sale securities, Unrealized Loss
(622)
 
(402)
Available-for-sale securities, Fair Value
54,725 
 
138,769 
Corporate Bonds [Member]
 
 
 
Available-for-sale:
 
 
 
Available-for-sale securities, Cost
63,810 
 
61,589 
Available-for-sale securities, Unrealized Gain
78 
 
14 
Available-for-sale securities, Unrealized Loss
(431)
 
(280)
Available-for-sale securities, Fair Value
63,457 
 
61,323 
Commercial Paper [Member]
 
 
 
Available-for-sale:
 
 
 
Available-for-sale securities, Cost
4,995 
 
29,964 
Available-for-sale securities, Unrealized Gain
2 
 
2 
Available-for-sale securities, Unrealized Loss
0 
 
(7)
Available-for-sale securities, Fair Value
4,997 
 
29,959 
Equity Securities and Exchange-traded Funds [Member]
 
 
 
Available-for-sale:
 
 
 
Available-for-sale securities, Cost
29,325 
 
8,461 
Available-for-sale securities, Unrealized Gain
1,962 
 
368 
Available-for-sale securities, Unrealized Loss
(346)
 
(558)
Available-for-sale securities, Fair Value
30,941 
 
8,271 
Mutual Funds [Member]
 
 
 
Available-for-sale:
 
 
 
Available-for-sale securities, Cost
10,360 
 
9,298 
Available-for-sale securities, Unrealized Gain
1,076 
 
363 
Available-for-sale securities, Unrealized Loss
(39)
 
(66)
Available-for-sale securities, Fair Value
$ 11,397 
 
$ 9,595 
Investments and Fair Value Measurements (Cost and Fair Value of Investments Classified by Maturity) (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Available-for-sale Securities, Debt Maturities [Abstract]
 
 
Available-for-sale securities, Due in one year or less, Cost
$ 107,770,000 
$ 155,651,000 
Available-for-sale securities, Due in one year or less, Fair Vlaue
106,979,000 
155,247,000 
Available-for-sale securities, Due in one to two years, Cost
16,061,000 
75,001,000 
Available-for-sale securities, Due in one to two years, Fair Value
15,938,000 
74,804,000 
Available For Sale Securities Debt Maturities After Two Years Amortized Cost Basis
274,000 
0 
Available For Sale Securities Debit Maturities More than Two Years Fair Value
262,000 
0 
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Cost
39,685,000 
17,759,000 
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Fair Value
42,338,000 
17,866,000 
Available-for-sale securities, Cost
163,790,000 
248,411,000 
Available-for-sale securities, Current
165,517,000 
247,917,000 
Held-to-maturity Securities, Debt Maturities [Abstract]
 
 
Held-to-maturity securities, Due in one year or less, Cost
19,942,000 
16,342,000 
Held-to-maturity securities, Due within one year or less, Fair Value
19,942,000 
16,342,000 
Held-to-maturity securities, Due in one to three years, Cost
6,000 
5,000 
Held-to-maturity securities, Due in one to three years, Fair Value
6,000 
5,000 
Held-to-maturity securities, Cost
19,948,000 
16,347,000 
Held-to-maturity securities, Current
19,948,000 
16,347,000 
Certificate of deposit held as collateral against Australia office lease
$ 1,500,000 
$ 1,600,000 
Investments and Fair Value Measurements (Unrealized Gains on Trading Securities) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Unrealized gains (losses), net
$ 337 
$ (810)
Investments and Fair Value Measurements (Fair Value of Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Government Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
$ 54,725 
$ 138,769 
Corporate Bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
63,457 
61,323 
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
4,997 
29,959 
Equity Securities and Exchange-traded Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
30,941 
8,271 
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
11,397 
9,595 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading securities, fair value
5,434 
5,491 
Cash equivalents, fair value
20,468 
30,818 
Total investments, fair value
191,419 
284,226 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Government Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
54,725 
138,769 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Corporate Bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
63,457 
61,323 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
4,997 
29,959 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Equity Securities and Exchange-traded Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
30,941 
8,271 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
11,397 
9,595 
Fair Value, Measurements, 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
5,434 
5,491 
Cash equivalents, fair value
20,468 
30,818 
Total investments, fair value
68,240 
54,175 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Government Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Corporate Bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Equity Securities and Exchange-traded Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
30,941 
8,271 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
11,397 
9,595 
Fair Value, Measurements, 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
0 
0 
Cash equivalents, fair value
0 
0 
Total investments, fair value
123,179 
230,051 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Government Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
54,725 
138,769 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Corporate Bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
63,457 
61,323 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
4,997 
29,959 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Equity Securities and Exchange-traded Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Measurements, 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
0 
0 
Cash equivalents, fair value
0 
0 
Total investments, fair value
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Government Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Corporate Bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Equity Securities and Exchange-traded Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
$ 0 
$ 0 
Investments in Unconsolidated Entities (Details)
9 Months Ended 9 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2011
USD ($)
Dec. 31, 2011
USD ($)
Sep. 30, 2012
HelloWallet [Member]
USD ($)
Sep. 30, 2012
Inquiry Financial Europe AB [Member]
USD ($)
Sep. 30, 2012
Morningstar Japan KK [Member]
USD ($)
Sep. 30, 2012
Morningstar Japan KK [Member]
JPY (¥)
Dec. 31, 2011
Morningstar Japan KK [Member]
USD ($)
Dec. 31, 2011
Morningstar Japan KK [Member]
JPY (¥)
Sep. 30, 2012
Other Equity Method Investments [Member]
USD ($)
Dec. 31, 2011
Other Equity Method Investments [Member]
USD ($)
Sep. 30, 2012
YCharts [Member]
Dec. 31, 2011
YCharts [Member]
Sep. 30, 2012
Morningstar Sweden AB [Member]
Dec. 31, 2011
Morningstar Sweden AB [Member]
Sep. 30, 2012
Inquiry Financial Europe AB [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity method investments
 
 
 
 
 
$ 20,085,000 
 
$ 19,662,000 
 
$ 6,185,000 
$ 2,807,000 
 
 
 
 
 
Cost method investments
12,008,000 
 
5,173,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investments in unconsolidated entities
38,278,000 
 
27,642,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity method investment, ownership percentage
 
 
 
 
 
34.00% 
34.00% 
33.00% 
33.00% 
 
 
20.00% 
20.00% 
24.00% 
24.00% 
34.00% 
Equity method investment, approximate market value
 
 
 
 
 
36,369,000 
2,843,568,000 
36,146,000 
2,797,704,000 
 
 
 
 
 
 
 
Equity-method investments, other than temporary impairment
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of equity and cost method investments
10,304,000 
0 
 
6,750,000 
3,554,000 
 
 
 
 
 
 
 
 
 
 
 
Cost-method investments, other than temporary impairment
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability for Vacant Office Space (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Liability for Vacant Office Space [Roll Forward]
 
Vacant office space liability, beginning balance
$ 919 
Reduction of liability for lease and other related payments
(768)
Vacant office space liability, ending balance
$ 151 
Stock-Based Compensation (Shares Available For Future Grants) (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Shares available for future grants
4,760 
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs by Plan) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock-based compensation expense
$ 3,994 
$ 3,951 
$ 11,594 
$ 11,443 
Income tax benefit related to the stock-based compensation expense
931 
967 
2,735 
2,636 
Restricted Stock Units (RSUs) [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock-based compensation expense
3,396 
3,372 
9,944 
9,489 
Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock-based compensation expense
444 
444 
1,332 
1,752 
Stock Options [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock-based compensation expense
$ 154 
$ 135 
$ 318 
$ 202 
Stock-Based Compensation (Schedule of Unrecognized Stock-based Compensation Expense) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Months
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
$ 36,144 
Expected amortization period (months)
33 
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
30,356 
Expected amortization period (months)
33 
Restricted Stock [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
4,587 
Expected amortization period (months)
31 
Stock Options [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
$ 1,201 
Expected amortization period (months)
30 
Stock-Based Compensation (Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $)
9 Months Ended
Sep. 30, 2012
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
 
RSUs outstanding, Beginning Balance, Unvested
741,043 
RSUs outstanding, Beginning Balance, Vested but Deferred
20,076 
RSUs outstanding, Beginning Balance, Total
761,119 
RSUs outstanding, Beginning Balance, Weighted Average Grant Date Valueper RSU
$ 50.66 
Granted, Unvested
293,609 
Granted, Total
293,609 
Granted, Weighted Average Grant Date Valueper RSU
$ 55.39 
Dividend equivalents, Unvested
3,720 
Dividend equivalents, Vestedd but Deferred
130 
Dividend equivalents, Total
3,850 
Dividend equivalents, Weighted Average Grant Date Valueper RSU
$ 51.32 
Vested, Unvested
(253,338)
Vested, Total
(253,338)
Vested, Weighted Average Grant Date Valueper RSU
$ 50.70 
Vested but deferred, Unvested
1,424 
Vested but deferred, Vested but Deferred
(1,424)
Vested but deferred, Total
0 
Issued, Vested but Deferred
0 
Issued, Total
0 
Issued, Weighted Average Grant Date Valueper RSU
$ 0.00 
Forfeited, Unvested
(66,395)
Forfeited, Total
(66,395)
Forfeited, Weighted Average Grant Date Valueper RSU
$ 50.17 
RSUs outstanding, Ending Balance, Unvested
720,063 
RSUs outstanding, Ending Balance, Vested but Deferred
18,782 
RSUs outstanding, Ending Balance, Total
738,845 
RSUs outstanding, Ending Balance, Weighted Average Grant Date Valueper RSU
$ 52.59 
Stock-Based Compensation (Assumptions for Black-Scholes Option Pricing Model) (Details) (Stock Options [Member], USD $)
9 Months Ended
Sep. 30, 2012
Years
Stock Options [Member]
 
Assumptions for Black-Scholes Option Pricing Model [Line Items]
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price
$ 23.81 
Expected life (years):
7.4 
Volatility factor:
35.10% 
Dividend yield:
0.35% 
Interest rate:
2.87% 
Stock-Based Compensation (Stock Option Activity) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Intrinsic Value of Options Exercised [Abstract]
 
 
Intrinsic value of options exercised
$ 17,161 
$ 25,061 
Options Granted At Discount [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Options outstanding, Beginning Balance, Underlying Shares
398,859 
 
Granted, Underlying Shares
0 
 
Canceled, Underlying Shares
(600)
 
Exercised, Underlying Shares
(78,147)
 
Options outstanding, Ending Balance, Underlying Shares
320,112 
 
Options, Weighted Average Exercise Price [Abstract]
 
 
Options outstanding, Beginning Balance, Weighted Average Exercise Price
$ 19.72 
 
Granted, Weighted Average Exercise Price
$ 0.00 
 
Canceled, Weighted Average Exercise Price
$ 14.70 
 
Exercised, Weighted Average Exercise Price
$ 20.06 
 
Options outstanding, Ending Balance, Weighted Average Exercise Price
$ 20.34 
 
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract]
 
 
Options exercisable, Underlying Shares
320,112 
 
Options exercisable, Weighted Average Exercise Price
$ 20.34 
 
Option Grants Excluding Options Granted at Discount [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Options outstanding, Beginning Balance, Underlying Shares
818,552 
 
Granted, Underlying Shares
0 
 
Canceled, Underlying Shares
(22,304)
 
Exercised, Underlying Shares
(301,761)
 
Options outstanding, Ending Balance, Underlying Shares
494,487 
 
Options, Weighted Average Exercise Price [Abstract]
 
 
Options outstanding, Beginning Balance, Weighted Average Exercise Price
$ 22.76 
 
Granted, Weighted Average Exercise Price
$ 0.00 
 
Canceled, Weighted Average Exercise Price
$ 39.77 
 
Exercised, Weighted Average Exercise Price
$ 16.71 
 
Options outstanding, Ending Balance, Weighted Average Exercise Price
$ 26.19 
 
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract]
 
 
Options exercisable, Underlying Shares
438,864 
 
Options exercisable, Weighted Average Exercise Price
$ 22.22 
 
Stock-Based Compensation (Additional Information on Options) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Closing stock price used to calculate intrinsic value
$ 62.64 
Share Based Compensation Arrangement by Share Based Payment Award, Expiration Date
10 years 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period
4 years 
Range One [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices
$8.57 - $14.70 
Range of Exercise Prices, Lower Limit
$ 8.57 
Range of Exercise Prices, Upper Limit
$ 14.70 
Options Outstanding, Number of Options
140,153 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
0.57 
Options Outstanding, Weighted Average Exercise Price
$ 8.58 
Options Outstanding, Aggregate Intrinsic Value
$ 7,576 
Options Exercisable, Exercisable Shares
140,153 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
0.57 
Options Exercisable, Weighted Average Exercise Price
$ 8.58 
Options Exercisable, Aggregate Intrinsic Value
7,576 
Range Two [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices
$20.30 - $46.29 
Range of Exercise Prices, Lower Limit
$ 20.30 
Range of Exercise Prices, Upper Limit
$ 46.29 
Options Outstanding, Number of Options
600,771 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
2.42 
Options Outstanding, Weighted Average Exercise Price
$ 23.35 
Options Outstanding, Aggregate Intrinsic Value
23,604 
Options Exercisable, Exercisable Shares
600,771 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
2.42 
Options Exercisable, Weighted Average Exercise Price
$ 23.35 
Options Exercisable, Aggregate Intrinsic Value
23,604 
Range Three [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices
$57.28 - $59.35 
Range of Exercise Prices, Lower Limit
$ 57.28 
Range of Exercise Prices, Upper Limit
$ 59.35 
Options Outstanding, Number of Options
73,675 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
8.79 
Options Outstanding, Weighted Average Exercise Price
$ 57.45 
Options Outstanding, Aggregate Intrinsic Value
383 
Options Exercisable, Exercisable Shares
18,052 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
8.75 
Options Exercisable, Weighted Average Exercise Price
$ 57.28 
Options Exercisable, Aggregate Intrinsic Value
97 
Range Four [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices
$8.57 - $59.35 
Range of Exercise Prices, Lower Limit
$ 8.57 
Range of Exercise Prices, Upper Limit
$ 59.35 
Options Outstanding, Number of Options
814,599 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
2.68 
Options Outstanding, Weighted Average Exercise Price
$ 23.89 
Options Outstanding, Aggregate Intrinsic Value
31,563 
Options Exercisable, Exercisable Shares
758,976 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
2.23 
Options Exercisable, Weighted Average Exercise Price
$ 21.43 
Options Exercisable, Aggregate Intrinsic Value
31,277 
Vested or Expected to Vest [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices, Lower Limit
$ 8.57 
Range of Exercise Prices, Upper Limit
$ 59.35 
Vested or Expected to Vest, Range of Exercise Prices
$8.57 - $59.35 
Vested or Expected to Vest, Number of Options
814,599 
Vested or Expected to Vest, Weighted Average Remaining Contractual Life (years)
2.68 
Vested or Expected to Vest, Weighted Average Exercise Price
$ 23.89 
Vested or Expected to Vest, Aggregate Intrinsic Value
$ 31,563 
Income Taxes (Income Tax Reconciliation and Unrecognized Tax Benefits) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Dec. 31, 2011
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
 
 
 
 
 
Income before income taxes and equity in net income of unconsolidated entities
$ 41,744 
$ 33,285 
$ 114,933 
$ 104,484 
 
Equity in net income of unconsolidated entities
478 
428 
1,541 
1,397 
 
Net (income) loss attributable to the noncontrolling interest
34 
10 
62 
106 
 
Total
42,256 
33,723 
116,536 
105,987 
 
Income tax expense
15,186 
12,343 
41,441 
35,585 
 
Effective income tax rate
35.90% 
36.60% 
35.60% 
33.60% 
 
Effective income tax rate reconciliation, change in percentage points compared with prior year period
(0.7)
 
2.0 
 
 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract]
 
 
 
 
 
Current liabilities
4,971 
 
4,971 
 
5,329 
Non-current liabilities
6,278 
 
6,278 
 
6,200 
Total liability for unrecognized tax benefits
$ 11,249 
 
$ 11,249 
 
$ 11,529 
Income Taxes (Income Tax Contingency) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
Income Tax Contingency [Line Items]
 
 
Gross unrecognized tax benefits
$ 11,732 
$ 12,189 
Gross unrecognized tax benefits which would affect income tax expense
11,674 
11,907 
Decrease in income tax expense upon recognition of gross unrecognized tax benefits
$ 9,543 
$ 9,827 
Share Repurchase Program (Details) (USD $)
1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Dec. 31, 2011
Share Repurchase Program [Abstract]
 
 
 
 
 
 
Common stock, dividends, per share, declared
 
$ 0.10 
$ 0.05 
$ 0.30 
$ 0.15 
 
Share repurchase program, authorized amount
$ 100,000,000 
 
 
 
 
 
Increase to share repurchase rogram, authorized amount
 
 
 
 
 
200,000,000 
Shares repurchased, program life to date, shares
 
3,964,411 
 
3,964,411 
 
 
Shares repurchased, program life to date, value
 
$ 231,553,933 
 
$ 231,553,933 
 
 
Subsequent Events (Details) (Disposal of businesses [Member], USD $)
In Millions, unless otherwise specified
Oct. 30, 2012
Minimum [Member]
 
Subsequent Event [Line Items]
 
Gain (loss) on sale or disposal, pretax
$ 6 
Maximum [Member]
 
Subsequent Event [Line Items]
 
Gain (loss) on sale or disposal, pretax
$ 7