|
|
|
|
|
|
|
|
|
|
|
|
($000) | |||
Balance as of December 31, 2011 | $ | 318,492 | |
Net change, primarily currency translation | 3,524 | ||
Balance as of March 31, 2012 | $ | 322,016 |
As of March 31, 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 | $ | 32,331 | $ | (21,214 | ) | $ | 11,117 | 9 | $ | 32,293 | $ | (20,455 | ) | $ | 11,838 | 9 | ||||||||||||||
Customer-related assets | 135,888 | (56,268 | ) | 79,620 | 12 | 134,396 | (52,611 | ) | 81,785 | 12 | ||||||||||||||||||||
Supplier relationships | 240 | (87 | ) | 153 | 20 | 240 | (84 | ) | 156 | 20 | ||||||||||||||||||||
Technology-based assets | 81,240 | (37,523 | ) | 43,717 | 9 | 80,694 | (35,130 | ) | 45,564 | 9 | ||||||||||||||||||||
Non-competition agreement | 1,766 | (1,379 | ) | 387 | 4 | 1,751 | (1,285 | ) | 466 | 4 | ||||||||||||||||||||
Total intangible assets | $ | 251,465 | $ | (116,471 | ) | $ | 134,994 | 10 | $ | 249,374 | $ | (109,565 | ) | $ | 139,809 | 10 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Amortization expense | $ | 6,055 | $ | 6,513 |
($000) | ||||
2012 | $ | 24,040 | ||
2013 | 21,319 | |||
2014 | 20,064 | |||
2015 | 19,192 | |||
2016 | 14,570 | |||
2017 | 9,967 |
|
• | 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. |
• | Investment Management. The Investment Management segment includes all of our asset management operations, which earn the majority of their revenue from asset-based fees. |
Three months ended March 31, 2012 | ||||||||||||||||
($000) | Investment Information | Investment Management | Corporate Items | Total | ||||||||||||
External revenue | $ | 126,925 | $ | 33,834 | $ | — | $ | 160,759 | ||||||||
Operating expense, excluding stock-based compensation expense, depreciation, and amortization | 93,438 | 15,953 | 6,928 | 116,319 | ||||||||||||
Stock-based compensation expense | 2,559 | 551 | 756 | 3,866 | ||||||||||||
Depreciation and amortization | 2,244 | 39 | 7,892 | 10,175 | ||||||||||||
Operating income (loss) | $ | 28,684 | $ | 17,291 | $ | (15,576 | ) | $ | 30,399 | |||||||
U.S. capital expenditures | $ | 7,397 | ||||||||||||||
Non-U.S. capital expenditures | $ | 1,597 | ||||||||||||||
Three months ended March 31, 2011 | ||||||||||||||||
($000) | Investment Information | Investment Management | Corporate Items | Total | ||||||||||||
External revenue | $ | 120,399 | $ | 31,368 | $ | — | $ | 151,767 | ||||||||
Operating expense, excluding stock-based compensation expense, depreciation, and amortization | 83,763 | 13,838 | 8,506 | 106,107 | ||||||||||||
Stock-based compensation expense | 2,470 | 442 | 737 | 3,649 | ||||||||||||
Depreciation and amortization | 1,859 | 42 | 8,301 | 10,202 | ||||||||||||
Operating income (loss) | $ | 32,307 | $ | 17,046 | $ | (17,544 | ) | $ | 31,809 | |||||||
U.S. capital expenditures | $ | 1,930 | ||||||||||||||
Non-U.S. capital expenditures | $ | 3,107 |
As of March 31, 2012 | ||||||||||||||||
($000) | Investment Information | Investment Management | Corporate Items | Total | ||||||||||||
Goodwill | $ | 280,320 | $ | 41,696 | $ | — | $ | 322,016 |
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 March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
United States | $ | 114,469 | $ | 108,181 | ||||
United Kingdom | 13,736 | 12,847 | ||||||
Europe, excluding the United Kingdom | 12,055 | 11,580 | ||||||
Australia | 9,348 | 9,293 | ||||||
Canada | 7,350 | 6,617 | ||||||
Asia, excluding Japan | 2,369 | 2,064 | ||||||
Japan | 979 | 931 | ||||||
Other | 453 | 254 | ||||||
Total Non-U.S. | 46,290 | 43,586 | ||||||
Total | $ | 160,759 | $ | 151,767 |
Long-lived assets by geographical area | ||||||||
As of March 31 | As of December 31 | |||||||
($000) | 2012 | 2011 | ||||||
United States | $ | 49,769 | $ | 44,572 | ||||
United Kingdom | 7,967 | 7,512 | ||||||
Europe, excluding the United Kingdom | 2,826 | 2,629 | ||||||
Australia | 1,384 | 1,415 | ||||||
Canada | 2,063 | 2,076 | ||||||
Asia, excluding Japan | 9,282 | 9,656 | ||||||
Japan | 240 | 282 | ||||||
Other | 45 | 54 | ||||||
Total Non-U.S. | 23,807 | 23,624 | ||||||
Total | $ | 73,576 | $ | 68,196 |
|
As of March 31 | As of December 31 | |||||||
($000) | 2012 | 2011 | ||||||
Available-for-sale | $ | 255,195 | $ | 247,917 | ||||
Held-to-maturity | 17,023 | 16,347 | ||||||
Trading securities | 6,080 | 5,491 | ||||||
Total | $ | 278,298 | $ | 269,755 |
As of March 31, 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 | $ | 116,672 | $ | 69 | $ | (430 | ) | $ | 116,311 | $ | 139,099 | $ | 72 | $ | (402 | ) | $ | 138,769 | ||||||||||||||
Corporate bonds | 91,259 | 62 | (241 | ) | 91,080 | 61,589 | 14 | (280 | ) | 61,323 | ||||||||||||||||||||||
Commercial paper | 28,117 | 6 | (6 | ) | 28,117 | 29,964 | 2 | (7 | ) | 29,959 | ||||||||||||||||||||||
Equity securities and exchange-traded funds | 8,839 | 808 | (221 | ) | 9,426 | 8,461 | 368 | (558 | ) | 8,271 | ||||||||||||||||||||||
Mutual funds | 9,304 | 988 | (31 | ) | 10,261 | 9,298 | 363 | (66 | ) | 9,595 | ||||||||||||||||||||||
Total | $ | 254,191 | $ | 1,933 | $ | (929 | ) | 255,195 | $ | 248,411 | $ | 819 | $ | (1,313 | ) | $ | 247,917 | |||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 17,023 | $ | — | $ | — | $ | 17,023 | $ | 16,347 | $ | — | $ | — | $ | 16,347 |
As of March 31, 2012 | As of December 31, 2011 | |||||||||||||||
($000) | Cost | Fair Value | Cost | Fair Value | ||||||||||||
Available-for-sale: | ||||||||||||||||
Due in one year or less | $ | 166,640 | $ | 166,276 | $ | 155,651 | $ | 155,247 | ||||||||
Due in one to two years | 69,408 | 69,232 | 75,001 | 74,804 | ||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 18,143 | 19,687 | 17,759 | 17,866 | ||||||||||||
Total | $ | 254,191 | $ | 255,195 | $ | 248,411 | $ | 247,917 | ||||||||
Held-to-maturity: | ||||||||||||||||
Due in one year or less | $ | 17,018 | $ | 17,018 | $ | 16,342 | $ | 16,342 | ||||||||
Due in one to three years | 5 | 5 | 5 | 5 | ||||||||||||
Total | $ | 17,023 | $ | 17,023 | $ | 16,347 | $ | 16,347 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Realized gains | $ | 212 | $ | 64 | ||||
Realized losses | (298 | ) | — | |||||
Realized gains (losses), net | $ | (86 | ) | $ | 64 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Unrealized gains, net | $ | 428 | $ | 45 |
Fair Value | Fair Value Measurements as of March 31, 2012 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
($000) | March 31, 2012 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments | ||||||||||||||||
Government obligations | $ | 116,311 | $ | — | $ | 116,311 | $ | — | ||||||||
Corporate bonds | 91,080 | — | 91,080 | — | ||||||||||||
Commercial paper | 28,117 | — | 28,117 | — | ||||||||||||
Equity securities and exchange-traded funds | 9,426 | 9,426 | — | — | ||||||||||||
Mutual funds | 10,261 | 10,261 | — | — | ||||||||||||
Trading securities | 6,080 | 6,080 | — | — | ||||||||||||
Cash equivalents | 14,979 | 14,979 | — | — | ||||||||||||
Total | $ | 276,254 | $ | 40,746 | $ | 235,508 | $ | — |
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. |
|
As of March 31 | As of December 31 | |||||||
($000) | 2012 | 2011 | ||||||
Investment in MJKK | $ | 20,172 | $ | 19,662 | ||||
Other equity method investments | 2,801 | 2,807 | ||||||
Investments accounted for using the cost method | 11,970 | 5,173 | ||||||
Total investments in unconsolidated entities | $ | 34,943 | $ | 27,642 |
As of March 31 | As of December 31 | |||||||
2012 | 2011 | |||||||
Morningstar’s approximate ownership of MJKK | 33 | % | 33 | % | ||||
Approximate market value of Morningstar’s ownership in MJKK: | ||||||||
Japanese yen (¥000) | ¥ | 3,366,418 | ¥ | 2,797,704 | ||||
Equivalent U.S. dollars ($000) | $ | 40,936 | $ | 36,146 |
|
Liability for vacant office space | ($000) | |||
Balance as of December 31, 2011 | $ | 919 | ||
Reduction of liability for lease and other related payments | (327 | ) | ||
Balance as of March 31, 2012 | $ | 592 |
|
As of March 31 | |||
(000) | 2012 | ||
Shares available for future grants | 4,989 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Restricted stock units | $ | 3,278 | $ | 2,785 | ||||
Restricted stock | 444 | 864 | ||||||
Stock options | 144 | — | ||||||
Total stock-based compensation expense | $ | 3,866 | $ | 3,649 | ||||
Income tax benefit related to the stock-based compensation expense | $ | 930 | $ | 725 |
Unrecognized stock-based compensation expense ($000) | Expected amortization period (months) | ||||||
Restricted stock units | $ | 23,868 | 30 | ||||
Restricted stock | 5,475 | 37 | |||||
Stock options | 1,705 | 36 | |||||
Total unrecognized stock-based compensation expense | $ | 31,048 | 32 |
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 | 666 | — | 666 | 59.98 | |||||||||
Dividend equivalents | 1,278 | — | 1,278 | 50.66 | |||||||||
Vested | (9,879 | ) | — | (9,879 | ) | 52.94 | |||||||
Vested but deferred | — | — | — | — | |||||||||
Issued | — | — | — | — | |||||||||
Forfeited | (8,765 | ) | — | (8,765 | ) | 43.76 | |||||||
RSUs outstanding—March 31, 2012 | 724,343 | 20,076 | 744,419 | 50.72 |
Assumptions for Black-Scholes Option Pricing Model | |||
Expected life (years): | 7.4 | ||
Volatility factor: | 35.1 | % | |
Dividend yield: | 0.35 | % | |
Interest rate: | 2.87 | % |
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 | (300 | ) | 14.70 | ||||
Exercised | (23,038 | ) | 19.92 | ||||
Options outstanding—March 31, 2012 | 375,521 | 19.92 | |||||
Options exercisable—March 31, 2012 | 375,521 | $ | 19.92 |
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 | (7,563 | ) | 10.09 | ||||
Exercised | (224,194 | ) | 15.81 | ||||
Options outstanding—March 31, 2012 | 586,795 | 25.73 | |||||
Options exercisable—March 31, 2012 | 494,594 | $ | 19.82 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Intrinsic value of options exercised | $ | 10,905 | $ | 13,933 |
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 | 178,435 | 1.07 | $ | 8.63 | $ | 9,710 | 178,435 | 1.07 | $ | 8.63 | $ | 9,710 | ||||||||||||||||
$19.88 - $45.31 | 691,680 | 2.92 | 22.76 | 27,867 | 691,680 | 2.92 | 22.76 | 27,867 | ||||||||||||||||||||
$57.28 - $59.35 | 92,201 | 9.29 | 57.42 | 519 | — | — | — | — | ||||||||||||||||||||
$8.57 - $59.35 | 962,316 | $ | 38,096 | 870,115 | $ | 37,577 | ||||||||||||||||||||||
Vested or Expected to Vest | ||||||||||||||||||||||||||||
$8.57 - $59.35 | 962,316 | 3.19 | $ | 23.46 | $ | 38,096 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Excess tax benefits related to stock-based compensation | $ | 3,313 | $ | 4,122 |
|
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 31,058 | $ | 32,583 | ||||
Equity in net income of unconsolidated entities | 566 | 374 | ||||||
Net loss attributable to the noncontrolling interest | 24 | 98 | ||||||
Total | $ | 31,648 | $ | 33,055 | ||||
Income tax expense | $ | 11,511 | $ | 10,518 | ||||
Effective tax rate | 36.4 | % | 31.8 | % |
As of March 31 | As of December 31 | |||||||
($000) | 2012 | 2011 | ||||||
Gross unrecognized tax benefits | $ | 12,201 | $ | 12,189 | ||||
Gross unrecognized tax benefits which would affect income tax expense | $ | 11,918 | $ | 11,907 | ||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 9,921 | $ | 9,827 |
As of March 31 | As of December 31 | |||||||
Liabilities for Unrecognized Tax Benefits ($000) | 2012 | 2011 | ||||||
Current liability | $ | 5,382 | $ | 5,329 | ||||
Non-current liability | 6,439 | 6,200 | ||||||
Total liability for unrecognized tax benefits | $ | 11,821 | $ | 11,529 |
|
|
|
|
|
($000) | |||
Balance as of December 31, 2011 | $ | 318,492 | |
Net change, primarily currency translation | 3,524 | ||
Balance as of March 31, 2012 | $ | 322,016 |
As of March 31, 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 | $ | 32,331 | $ | (21,214 | ) | $ | 11,117 | 9 | $ | 32,293 | $ | (20,455 | ) | $ | 11,838 | 9 | ||||||||||||||
Customer-related assets | 135,888 | (56,268 | ) | 79,620 | 12 | 134,396 | (52,611 | ) | 81,785 | 12 | ||||||||||||||||||||
Supplier relationships | 240 | (87 | ) | 153 | 20 | 240 | (84 | ) | 156 | 20 | ||||||||||||||||||||
Technology-based assets | 81,240 | (37,523 | ) | 43,717 | 9 | 80,694 | (35,130 | ) | 45,564 | 9 | ||||||||||||||||||||
Non-competition agreement | 1,766 | (1,379 | ) | 387 | 4 | 1,751 | (1,285 | ) | 466 | 4 | ||||||||||||||||||||
Total intangible assets | $ | 251,465 | $ | (116,471 | ) | $ | 134,994 | 10 | $ | 249,374 | $ | (109,565 | ) | $ | 139,809 | 10 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Amortization expense | $ | 6,055 | $ | 6,513 |
($000) | ||||
2012 | $ | 24,040 | ||
2013 | 21,319 | |||
2014 | 20,064 | |||
2015 | 19,192 | |||
2016 | 14,570 | |||
2017 | 9,967 |
|
Three months ended March 31, 2012 | ||||||||||||||||
($000) | Investment Information | Investment Management | Corporate Items | Total | ||||||||||||
External revenue | $ | 126,925 | $ | 33,834 | $ | — | $ | 160,759 | ||||||||
Operating expense, excluding stock-based compensation expense, depreciation, and amortization | 93,438 | 15,953 | 6,928 | 116,319 | ||||||||||||
Stock-based compensation expense | 2,559 | 551 | 756 | 3,866 | ||||||||||||
Depreciation and amortization | 2,244 | 39 | 7,892 | 10,175 | ||||||||||||
Operating income (loss) | $ | 28,684 | $ | 17,291 | $ | (15,576 | ) | $ | 30,399 | |||||||
U.S. capital expenditures | $ | 7,397 | ||||||||||||||
Non-U.S. capital expenditures | $ | 1,597 | ||||||||||||||
Three months ended March 31, 2011 | ||||||||||||||||
($000) | Investment Information | Investment Management | Corporate Items | Total | ||||||||||||
External revenue | $ | 120,399 | $ | 31,368 | $ | — | $ | 151,767 | ||||||||
Operating expense, excluding stock-based compensation expense, depreciation, and amortization | 83,763 | 13,838 | 8,506 | 106,107 | ||||||||||||
Stock-based compensation expense | 2,470 | 442 | 737 | 3,649 | ||||||||||||
Depreciation and amortization | 1,859 | 42 | 8,301 | 10,202 | ||||||||||||
Operating income (loss) | $ | 32,307 | $ | 17,046 | $ | (17,544 | ) | $ | 31,809 | |||||||
U.S. capital expenditures | $ | 1,930 | ||||||||||||||
Non-U.S. capital expenditures | $ | 3,107 |
As of March 31, 2012 | ||||||||||||||||
($000) | Investment Information | Investment Management | Corporate Items | Total | ||||||||||||
Goodwill | $ | 280,320 | $ | 41,696 | $ | — | $ | 322,016 |
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 March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
United States | $ | 114,469 | $ | 108,181 | ||||
United Kingdom | 13,736 | 12,847 | ||||||
Europe, excluding the United Kingdom | 12,055 | 11,580 | ||||||
Australia | 9,348 | 9,293 | ||||||
Canada | 7,350 | 6,617 | ||||||
Asia, excluding Japan | 2,369 | 2,064 | ||||||
Japan | 979 | 931 | ||||||
Other | 453 | 254 | ||||||
Total Non-U.S. | 46,290 | 43,586 | ||||||
Total | $ | 160,759 | $ | 151,767 |
Long-lived assets by geographical area | ||||||||
As of March 31 | As of December 31 | |||||||
($000) | 2012 | 2011 | ||||||
United States | $ | 49,769 | $ | 44,572 | ||||
United Kingdom | 7,967 | 7,512 | ||||||
Europe, excluding the United Kingdom | 2,826 | 2,629 | ||||||
Australia | 1,384 | 1,415 | ||||||
Canada | 2,063 | 2,076 | ||||||
Asia, excluding Japan | 9,282 | 9,656 | ||||||
Japan | 240 | 282 | ||||||
Other | 45 | 54 | ||||||
Total Non-U.S. | 23,807 | 23,624 | ||||||
Total | $ | 73,576 | $ | 68,196 |
|
As of March 31 | As of December 31 | |||||||
($000) | 2012 | 2011 | ||||||
Available-for-sale | $ | 255,195 | $ | 247,917 | ||||
Held-to-maturity | 17,023 | 16,347 | ||||||
Trading securities | 6,080 | 5,491 | ||||||
Total | $ | 278,298 | $ | 269,755 |
As of March 31, 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 | $ | 116,672 | $ | 69 | $ | (430 | ) | $ | 116,311 | $ | 139,099 | $ | 72 | $ | (402 | ) | $ | 138,769 | ||||||||||||||
Corporate bonds | 91,259 | 62 | (241 | ) | 91,080 | 61,589 | 14 | (280 | ) | 61,323 | ||||||||||||||||||||||
Commercial paper | 28,117 | 6 | (6 | ) | 28,117 | 29,964 | 2 | (7 | ) | 29,959 | ||||||||||||||||||||||
Equity securities and exchange-traded funds | 8,839 | 808 | (221 | ) | 9,426 | 8,461 | 368 | (558 | ) | 8,271 | ||||||||||||||||||||||
Mutual funds | 9,304 | 988 | (31 | ) | 10,261 | 9,298 | 363 | (66 | ) | 9,595 | ||||||||||||||||||||||
Total | $ | 254,191 | $ | 1,933 | $ | (929 | ) | 255,195 | $ | 248,411 | $ | 819 | $ | (1,313 | ) | $ | 247,917 | |||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 17,023 | $ | — | $ | — | $ | 17,023 | $ | 16,347 | $ | — | $ | — | $ | 16,347 |
As of March 31, 2012 | As of December 31, 2011 | |||||||||||||||
($000) | Cost | Fair Value | Cost | Fair Value | ||||||||||||
Available-for-sale: | ||||||||||||||||
Due in one year or less | $ | 166,640 | $ | 166,276 | $ | 155,651 | $ | 155,247 | ||||||||
Due in one to two years | 69,408 | 69,232 | 75,001 | 74,804 | ||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 18,143 | 19,687 | 17,759 | 17,866 | ||||||||||||
Total | $ | 254,191 | $ | 255,195 | $ | 248,411 | $ | 247,917 | ||||||||
Held-to-maturity: | ||||||||||||||||
Due in one year or less | $ | 17,018 | $ | 17,018 | $ | 16,342 | $ | 16,342 | ||||||||
Due in one to three years | 5 | 5 | 5 | 5 | ||||||||||||
Total | $ | 17,023 | $ | 17,023 | $ | 16,347 | $ | 16,347 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Realized gains | $ | 212 | $ | 64 | ||||
Realized losses | (298 | ) | — | |||||
Realized gains (losses), net | $ | (86 | ) | $ | 64 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Unrealized gains, net | $ | 428 | $ | 45 |
Fair Value | Fair Value Measurements as of March 31, 2012 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
($000) | March 31, 2012 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments | ||||||||||||||||
Government obligations | $ | 116,311 | $ | — | $ | 116,311 | $ | — | ||||||||
Corporate bonds | 91,080 | — | 91,080 | — | ||||||||||||
Commercial paper | 28,117 | — | 28,117 | — | ||||||||||||
Equity securities and exchange-traded funds | 9,426 | 9,426 | — | — | ||||||||||||
Mutual funds | 10,261 | 10,261 | — | — | ||||||||||||
Trading securities | 6,080 | 6,080 | — | — | ||||||||||||
Cash equivalents | 14,979 | 14,979 | — | — | ||||||||||||
Total | $ | 276,254 | $ | 40,746 | $ | 235,508 | $ | — |
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 | $ | — |
|
As of March 31 | As of December 31 | |||||||
($000) | 2012 | 2011 | ||||||
Investment in MJKK | $ | 20,172 | $ | 19,662 | ||||
Other equity method investments | 2,801 | 2,807 | ||||||
Investments accounted for using the cost method | 11,970 | 5,173 | ||||||
Total investments in unconsolidated entities | $ | 34,943 | $ | 27,642 |
As of March 31 | As of December 31 | |||||||
2012 | 2011 | |||||||
Morningstar’s approximate ownership of MJKK | 33 | % | 33 | % | ||||
Approximate market value of Morningstar’s ownership in MJKK: | ||||||||
Japanese yen (¥000) | ¥ | 3,366,418 | ¥ | 2,797,704 | ||||
Equivalent U.S. dollars ($000) | $ | 40,936 | $ | 36,146 |
|
Liability for vacant office space | ($000) | |||
Balance as of December 31, 2011 | $ | 919 | ||
Reduction of liability for lease and other related payments | (327 | ) | ||
Balance as of March 31, 2012 | $ | 592 |
|
As of March 31 | |||
(000) | 2012 | ||
Shares available for future grants | 4,989 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Restricted stock units | $ | 3,278 | $ | 2,785 | ||||
Restricted stock | 444 | 864 | ||||||
Stock options | 144 | — | ||||||
Total stock-based compensation expense | $ | 3,866 | $ | 3,649 | ||||
Income tax benefit related to the stock-based compensation expense | $ | 930 | $ | 725 |
Unrecognized stock-based compensation expense ($000) | Expected amortization period (months) | ||||||
Restricted stock units | $ | 23,868 | 30 | ||||
Restricted stock | 5,475 | 37 | |||||
Stock options | 1,705 | 36 | |||||
Total unrecognized stock-based compensation expense | $ | 31,048 | 32 |
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 | 666 | — | 666 | 59.98 | |||||||||
Dividend equivalents | 1,278 | — | 1,278 | 50.66 | |||||||||
Vested | (9,879 | ) | — | (9,879 | ) | 52.94 | |||||||
Vested but deferred | — | — | — | — | |||||||||
Issued | — | — | — | — | |||||||||
Forfeited | (8,765 | ) | — | (8,765 | ) | 43.76 | |||||||
RSUs outstanding—March 31, 2012 | 724,343 | 20,076 | 744,419 | 50.72 |
Assumptions for Black-Scholes Option Pricing Model | |||
Expected life (years): | 7.4 | ||
Volatility factor: | 35.1 | % | |
Dividend yield: | 0.35 | % | |
Interest rate: | 2.87 | % |
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 | (300 | ) | 14.70 | ||||
Exercised | (23,038 | ) | 19.92 | ||||
Options outstanding—March 31, 2012 | 375,521 | 19.92 | |||||
Options exercisable—March 31, 2012 | 375,521 | $ | 19.92 |
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 | (7,563 | ) | 10.09 | ||||
Exercised | (224,194 | ) | 15.81 | ||||
Options outstanding—March 31, 2012 | 586,795 | 25.73 | |||||
Options exercisable—March 31, 2012 | 494,594 | $ | 19.82 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Intrinsic value of options exercised | $ | 10,905 | $ | 13,933 |
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 | 178,435 | 1.07 | $ | 8.63 | $ | 9,710 | 178,435 | 1.07 | $ | 8.63 | $ | 9,710 | ||||||||||||||||
$19.88 - $45.31 | 691,680 | 2.92 | 22.76 | 27,867 | 691,680 | 2.92 | 22.76 | 27,867 | ||||||||||||||||||||
$57.28 - $59.35 | 92,201 | 9.29 | 57.42 | 519 | — | — | — | — | ||||||||||||||||||||
$8.57 - $59.35 | 962,316 | $ | 38,096 | 870,115 | $ | 37,577 | ||||||||||||||||||||||
Vested or Expected to Vest | ||||||||||||||||||||||||||||
$8.57 - $59.35 | 962,316 | 3.19 | $ | 23.46 | $ | 38,096 |
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Excess tax benefits related to stock-based compensation | $ | 3,313 | $ | 4,122 |
|
Three months ended March 31 | ||||||||
($000) | 2012 | 2011 | ||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 31,058 | $ | 32,583 | ||||
Equity in net income of unconsolidated entities | 566 | 374 | ||||||
Net loss attributable to the noncontrolling interest | 24 | 98 | ||||||
Total | $ | 31,648 | $ | 33,055 | ||||
Income tax expense | $ | 11,511 | $ | 10,518 | ||||
Effective tax rate | 36.4 | % | 31.8 | % |
As of March 31 | As of December 31 | |||||||
($000) | 2012 | 2011 | ||||||
Gross unrecognized tax benefits | $ | 12,201 | $ | 12,189 | ||||
Gross unrecognized tax benefits which would affect income tax expense | $ | 11,918 | $ | 11,907 | ||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 9,921 | $ | 9,827 |
As of March 31 | As of December 31 | |||||||
Liabilities for Unrecognized Tax Benefits ($000) | 2012 | 2011 | ||||||
Current liability | $ | 5,382 | $ | 5,329 | ||||
Non-current liability | 6,439 | 6,200 | ||||||
Total liability for unrecognized tax benefits | $ | 11,821 | $ | 11,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|