MORNINGSTAR, INC., 10-Q filed on 5/1/2015
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2015
Apr. 24, 2015
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
Mar. 31, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q1 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
44,400,000.0 
Condensed Consolidated Statements of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Revenue
$ 189.8 
$ 181.2 
Operating expense:
 
 
Cost of revenue
78.7 
75.8 
Sales and marketing
25.4 
28.4 
General and administrative
26.1 
26.1 
Depreciation and amortization
15.1 
12.4 
Total operating expense
145.3 
142.7 
Operating income (loss)
44.5 
38.5 
Non-operating income (expense):
 
 
Interest income (expense), net
0.2 
0.6 
Other income (expense), net
(0.6)
0.3 
Non-operating income (expense), net
(0.4)
0.9 
Income before income taxes and equity in net income of unconsolidated entities
44.1 
39.4 
Equity in net income of unconsolidated entities
0.5 
0.6 
Income tax expense
14.8 
13.7 
Consolidated net income
29.8 
26.3 
Net (income) loss attributable to the noncontrolling interest
(0.1)
0.1 
Net income attributable to Morningstar, Inc.
$ 29.7 
$ 26.4 
Net income per share attributable to:
 
 
Basic (in dollars per share)
$ 0.67 
$ 0.59 
Diluted (in dollars per share)
$ 0.67 
$ 0.58 
Dividends declared per common share
$ 0.19 
$ 0.17 
Dividends paid per common share
$ 0.19 
$ 0.17 
Weighted average shares outstanding:
 
 
Basic (in shares)
44.3 
44.8 
Diluted (in shares)
44.5 
45.1 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Consolidated net income
$ 29.8 
$ 26.3 
Other comprehensive income (loss):
 
 
Foreign currency translation adjustment
(19.8)
2.5 
Unrealized gains (losses) on securities, net of tax:
 
 
Unrealized holding gains arising during period
0.1 
0.1 
Reclassification of (gains) losses included in net income
0 
0 
Other comprehensive income (loss)
(19.7)
2.6 
Comprehensive income
10.1 
28.9 
Comprehensive (income) loss attributable to noncontrolling interest
(0.1)
0.1 
Comprehensive income attributable to Morningstar, Inc.
$ 10.0 
$ 29.0 
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 204.6 
$ 185.2 
Investments
38.6 
39.4 
Accounts receivable, less allowance of $1.7 and $1.5, respectively
142.2 
136.7 
Deferred tax asset, net
10.8 
9.0 
Income tax receivable, net
0 
6.9 
Other
22.3 
22.6 
Total current assets
418.5 
399.8 
Property, equipment, and capitalized software, net
121.4 
117.6 
Investments in unconsolidated entities
29.3 
28.8 
Goodwill
359.8 
370.1 
Intangible assets, net
87.9 
95.9 
Other assets
8.9 
7.1 
Total assets
1,025.8 
1,019.3 
Current liabilities:
 
 
Accounts payable and accrued liabilities
35.8 
34.3 
Accrued compensation
41.3 
80.5 
Deferred revenue
160.2 
146.0 
Short-term debt
45.0 
30.0 
Income tax payable
6.1 
0 
Other
4.8 
3.0 
Total current liabilities
293.2 
293.8 
Accrued compensation
8.1 
7.9 
Deferred tax liability, net
26.3 
26.0 
Deferred rent
26.2 
26.4 
Other long-term liabilities
11.0 
10.8 
Total liabilities
364.8 
364.9 
Morningstar, Inc. shareholders' equity:
 
 
Common stock, no par value, 200,000,000 shares authorized, of which 44,395,391 and 44,345,763 shares were outstanding as of March 31, 2015 and December 31, 2014, respectively
0 
0 
Treasury stock at cost, 8,289,240 shares as of March 31, 2015 and 8,257,214 shares as of December 31, 2014
(526.6)
(524.3)
Additional paid-in capital
568.3 
561.1 
Retained earnings
662.8 
641.5 
Accumulated other comprehensive income (loss):
 
 
Currency translation adjustment
(44.9)
(25.1)
Unrealized gain on available-for-sale securities
0.4 
0.3 
Total accumulated other comprehensive income (loss)
(44.5)
(24.8)
Total Morningstar, Inc. shareholders' equity
660.0 
653.5 
Noncontrolling interest
1.0 
0.9 
Total equity
661.0 
654.4 
Total liabilities and equity
$ 1,025.8 
$ 1,019.3 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]
 
 
Allowance for Doubtful Accounts Receivable, Current
$ 1.7 
$ 1.5 
Common Stock, No Par Value
$ 0 
$ 0 
Common Stock, Shares Authorized
200,000,000 
200,000,000 
Common Stock, Shares, Outstanding
44,395,391 
44,345,763 
Treasury Stock, Shares
8,289,240 
8,257,214 
Condensed Consolidated Statement of Equity (USD $)
In Millions, 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, 2014
$ 654.4 
$ 0 
$ (524.3)
$ 561.1 
$ 641.5 
$ (24.8)
$ 0.9 
Balance (in shares) at Dec. 31, 2014
44,345,763 
44,345,763 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity
 
 
 
 
 
 
 
Net income (loss)
29.8 
 
 
 
29.7 
 
0.1 
Other comprehensive income (loss):
 
 
 
 
 
 
 
Unrealized gain on available-for-sale investments, net of income tax of $0.1
0.1 
 
 
 
 
0.1 
0 
Reclassification of adjustments for losses included in net income, net of income tax of $0
0 
 
 
 
 
0 
0 
Foreign currency translation adjustment, net
(19.8)
 
 
 
 
(19.8)
0 
Other comprehensive income (loss)
(19.7)
 
 
 
 
(19.7)
0 
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net
1.8 
0 
0 
1.8 
 
 
 
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares)
 
81,654 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
 
 
 
 
 
Stock-based compensation - restricted stock units
4.3 
 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
 
4.3 
 
 
 
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units
1.1 
 
 
1.1 
 
 
 
Common share repurchased
(2.3)
 
(2.3)
 
 
 
 
Common share repurchased (in shares)
 
(32,026)
 
 
 
 
 
Dividends declared - common shares outstanding
(8.4)
 
 
 
(8.4)
 
 
Dividends declared - restricted stock units
0 
 
 
0 
0 
 
 
Balance at Mar. 31, 2015
$ 661.0 
$ 0 
$ (526.6)
$ 568.3 
$ 662.8 
$ (44.5)
$ 1.0 
Balance (in shares) at Mar. 31, 2015
44,395,391 
44,395,391 
 
 
 
 
 
Condensed Consolidated Statement of Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Statement of Stockholders' Equity [Abstract]
 
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax
$ 0.1 
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax
$ 0 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Operating activities
 
 
Consolidated net income
$ 29.8 
$ 26.3 
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
 
 
Depreciation and amortization
15.1 
12.4 
Deferred income taxes
(1.6)
(2.3)
Stock-based compensation expense
4.3 
3.9 
Provision for (recoveries of) bad debts
0.3 
(0.3)
Equity in net income of unconsolidated entities
(0.5)
(0.6)
Excess tax benefits from stock-option exercises and vesting of restricted stock units
(1.1)
(0.6)
Other, net
0.6 
(0.2)
Changes in operating assets and liabilities, net of effects of acquisitions:
 
 
Accounts receivable
(8.6)
(16.8)
Other assets
(0.5)
(3.3)
Accounts payable and accrued liabilities
2.2 
4.5 
Accrued compensation
(36.4)
(27.4)
Income taxes- current
13.9 
7.2 
Deferred revenue
17.4 
10.2 
Deferred rent
0.1 
(0.5)
Other liabilities
0 
(0.6)
Cash provided by operating activities
35.0 
11.9 
Investing activities
 
 
Purchases of investments
(5.5)
(1.7)
Proceeds from maturities and sales of investments
5.9 
73.7 
Capital expenditures
(14.4)
(20.8)
Other, net
(0.1)
0.2 
Cash used for investing activities
(14.1)
51.4 
Financing activities
 
 
Common shares repurchased
(2.3)
(21.7)
Dividends paid
(8.4)
(7.6)
Proceeds from short-term debt
15.0 
0 
Proceeds from stock-option exercises, net
1.8 
1.3 
Excess tax benefits from stock-option exercises and vesting of restricted stock units
1.1 
0.6 
Other, net
(0.2)
(0.1)
Cash provided by (used for) financing activities
7.0 
(27.5)
Effect of exchange rate changes on cash and cash equivalents
(8.5)
0.6 
Net increase (decrease) in cash and cash equivalents
19.4 
36.4 
Cash and cash equivalents-beginning of period
185.2 
168.2 
Cash and cash equivalents-end of period
204.6 
204.6 
Supplemental disclosure of cash flow information:
 
 
Cash paid for income taxes
2.5 
8.8 
Supplemental information of non-cash investing and financing activities:
 
 
Unrealized gain (loss) on available-for-sale investments
0.2 
0.2 
Equipment obtained under long-term financing arrangement
$ 1.3 
$ 0 
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 (U.S. GAAP) 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 are unaudited and should be read in conjunction with our Audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 27, 2015.

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

We discuss our significant accounting policies in Note 3 of our Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 27, 2015.

On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.
Credit Arrangements (Notes)
Credit Arrangements
Credit Arrangements

In July 2014, the company entered into a one year, $75.0 million, single-bank revolving credit facility. The company drew $15.0 million on the credit facility during the first quarter of 2015 and had an outstanding principal balance of $45.0 million at an interest rate of LIBOR plus 100 basis points as of March 31, 2015, leaving borrowing availability of $30.0 million.
Acquisitions, Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill, and Other Intangible Assets

Acquisitions

In the first quarter of 2015, we finalized the purchase price allocation related to our 2014 acquisitions of ByAllAccounts, Inc. and HelloWallet Holdings, Inc. As a result, there were no adjustments to the balances reported as of December 31, 2014.

Goodwill
 
The following table shows the changes in our goodwill balances from December 31, 2014 to March 31, 2015:
 
 
 
(in millions)

Balance as of December 31, 2014
 
$
370.1

Foreign currency translation
 
(10.3
)
Balance as of March 31, 2015
 
$
359.8



We did not record any impairment losses in the first three months of 2015 or 2014. We perform our annual impairment reviews in the fourth quarter.

Intangible Assets

The following table summarizes our intangible assets: 
 
 
As of March 31, 2015
 
As of December 31, 2014
(in millions)
 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)
 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)
Intellectual property
 
$
28.6

 
$
(25.2
)
 
$
3.4

 
9
 
$
29.0

 
$
(25.0
)
 
$
4.0

 
9
Customer-related assets
 
137.5

 
(84.5
)
 
53.0

 
12
 
141.5

 
(83.6
)
 
57.9

 
12
Supplier relationships
 
0.2

 
(0.1
)
 
0.1

 
20
 
0.2

 
(0.1
)
 
0.1

 
20
Technology-based assets
 
87.8

 
(58.7
)
 
29.1

 
8
 
88.8

 
(57.4
)
 
31.4

 
8
Non-competition agreement
 
4.3

 
(2.0
)
 
2.3

 
5
 
4.4

 
(1.9
)
 
2.5

 
5
Total intangible assets
 
$
258.4

 
$
(170.5
)
 
$
87.9

 
10
 
$
263.9

 
$
(168.0
)
 
$
95.9

 
10
 
The following table summarizes our amortization expense related to intangible assets:
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Amortization expense
 
$
5.5

 
$
5.1


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

We expect intangible amortization expense for the remainder of 2015 and subsequent years as follows:
 
 
(in millions)

Remainder of 2015 (from April 1 through December 31)
 
$
16.0

2016
 
17.0

2017
 
12.7

2018
 
10.5

2019
 
7.8

Thereafter
 
23.9


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

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 March 31
(in millions, except per share amounts)
 
2015

 
2014

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

 
 

Net income attributable to Morningstar, Inc.:
 
$
29.7

 
$
26.4

Less: Distributed earnings available to participating securities
 
—

 
—

Less: Undistributed earnings available to participating securities
 
—

 
—

Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
$
29.7

 
$
26.4

 
 
 
 
 
Weighted average common shares outstanding
 
44.3

 
44.8

 
 
 
 
 
Basic net income per share attributable to Morningstar, Inc.
 
$
0.67

 
$
0.59

 
 
 
 
 
Diluted net income per share attributable to Morningstar, Inc.:
 
 
 
 
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
$
29.7

 
$
26.4

Add: Undistributed earnings allocated to participating securities
 
—

 
—

Less: Undistributed earnings reallocated to participating securities
 
—

 
—

Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders
 
$
29.7

 
$
26.4

 
 


 


Weighted average common shares outstanding
 
44.3

 
44.8
Net effect of dilutive stock options, restricted stock units, and performance share awards
 
0.2

 
0.3

Weighted average common shares outstanding for computing diluted income per share
 
44.5

 
45.1

 
 


 
 
Diluted net income per share attributable to Morningstar, Inc.
 
$
0.67

 
$
0.58


The following table shows the number of restricted stock units and performance share awards excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive:

 
 
Three months ended March 31
(in thousands)
 
2015

 
2014

Weighted average restricted stock units
 
32

 
6

Weighted average performance share awards
 
18

 
9

Total
 
50

 
15


Stock options and restricted stock could be included in the calculation in the future.

Segment and Geographical Area Information
Segment and Geographical Area Information
Segment and Geographical Area Information
 
Segment Information

We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results.

Because we have one reportable segment, all required financial segment information can be found directly in the Unaudited Condensed Consolidated Financial Statements.

The accounting policies for our single reportable segment are the same as those described in “Note 3. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2014. We evaluate the performance of our reporting segment based on revenue and operating income.

Geographical Area Information

The tables below summarize our revenue and long-lived assets by geographical area:

External revenue by geographical area
 
 
 
 
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

United States
 
$
140.9

 
$
130.0

 
 
 
 
 
United Kingdom
 
14.6

 
15.3

Continental Europe
 
14.3

 
15.6

Australia
 
7.7

 
8.2

Canada
 
7.0

 
7.7

Asia
 
4.4

 
3.7

Other
 
0.9

 
0.7

Total International
 
48.9

 
51.2

 
 
 
 
 
Consolidated revenue
 
$
189.8

 
$
181.2



Long-lived assets by geographical area
 
 
 
 
 
 
As of March 31
 
As of December 31
(in millions)
 
2015

 
2014

United States
 
$
102.7

 
$
98.1

 
 
 
 
 
United Kingdom
 
8.4

 
8.1

Continental Europe
 
1.8

 
2.1

Australia
 
0.7

 
0.8

Canada
 
0.8

 
0.9

Asia
 
6.9

 
7.5

Other
 
0.1

 
0.1

Total International
 
18.7

 
19.5

 
 
 
 
 
Consolidated property, equipment, and capitalized software, net
 
$
121.4

 
$
117.6

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 into three categories: available-for-sale, held-to-maturity, and trading securities. Our investment portfolio is primarily invested in proprietary Morningstar portfolios, exchange-traded funds that seek to track the performance of certain Morningstar proprietary indexes, and various mutual funds. We classify our investment portfolio as shown below:
 
 
 
As of March 31
 
As of December 31
(in millions)
 
2015

 
2014

Available-for-sale
 
$
13.4

 
$
13.2

Held-to-maturity
 
16.8

 
17.9

Trading securities
 
8.4

 
8.3

Total
 
$
38.6

 
$
39.4



The following table shows the cost, unrealized gains (losses), and fair value of investments classified as available-for-sale and held-to-maturity:
 
 
 
As of March 31, 2015
 
As of December 31, 2014
(in millions)
 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

Available-for-sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Equity securities and exchange-traded funds
 
$
11.5

 
$
0.9

 
$
(0.3
)
 
$
12.1

 
$
11.4

 
$
0.8

 
$
(0.3
)
 
$
11.9

Mutual funds
 
1.2

 
0.2

 
(0.1
)
 
1.3

 
1.2

 
0.2

 
(0.1
)
 
1.3

Total
 
$
12.7

 
$
1.1

 
$
(0.4
)
 
$
13.4

 
$
12.6

 
$
1.0

 
$
(0.4
)
 
$
13.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Certificates of deposit
 
$
16.8

 
$
—

 
$
—

 
$
16.8

 
$
17.9

 
$
—

 
$
—

 
$
17.9


 
As of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014. 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 March 31, 2015
 
As of December 31, 2014
(in millions)
 
Cost

 
Fair Value

 
Cost

 
Fair Value

Available-for-sale:
 
 

 
 

 
 

 
 

Equity securities, exchange-traded funds, and mutual funds
 
$
12.7

 
$
13.4

 
$
12.6

 
$
13.2

    Total
 
$
12.7

 
$
13.4

 
$
12.6

 
$
13.2

 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
16.8

 
$
16.8

 
$
17.9

 
$
17.9

Due in one to three years
 
—

 
—

 
—

 
—

Total
 
$
16.8

 
$
16.8

 
$
17.9

 
$
17.9


 
As of March 31, 2015 and December 31, 2014, held-to-maturity investments included a $1.5 million certificate of deposit 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: 

 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Realized gains
 
$
0.2

 
$
0.2

Realized losses
 
(0.2
)
 
(0.2
)
Realized gains (losses), net
 
$
—

 
$
—


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

The following table shows the net unrealized gains on trading securities as recorded in our Condensed Consolidated Statements of Income:
 
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Unrealized gains, net
 
$
0.1

 
$
0.1



The table below shows the fair value of our assets subject to fair value measurements that are measured at fair value on a recurring basis using the fair value hierarchy and the necessary disclosures under FASB ASC 820, Fair Value Measurement:
 
 
 
Fair Value
 
Fair Value Measurements as of March 31, 2015
 
 
as of
 
Using Fair Value Hierarchy
(in millions)
 
March 31, 2015
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Equity securities and exchange-traded funds
 
$
12.1

 
$
12.1

 
$
—

 
$
—

Mutual funds
 
1.3

 
1.3

 
—

 
—

Trading securities
 
8.4

 
8.4

 
—

 
—

Cash equivalents
 
0.5

 
0.5

 
—

 
—

Total
 
$
22.3

 
$
22.3

 
$
—

 
$
—

 
 
 
Fair Value
 
Fair Value Measurements as of December 31, 2014
 
 
as of
 
Using Fair Value Hierarchy
(in millions)
 
December 31, 2014
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Equity securities and exchange-traded funds
 
$
11.9

 
$
11.9

 
$
—

 
$
—

Mutual funds
 
1.3

 
1.3

 
—

 
—

Trading securities
 
8.3

 
8.3

 
—

 
—

Cash equivalents
 
0.5

 
0.5

 
—

 
—

Total
 
$
22.0

 
$
22.0

 
$
—

 
$
—


 
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. We did not hold any securities categorized as Level 2 or Level 3 as of March 31, 2015 and December 31, 2014.
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, performance share awards, 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 March 31

(in millions)
 
2015

Shares available for future grants
 
4.2


 
Accounting for Stock-Based Compensation Awards
 
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded:
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Restricted stock units
 
$
4.0

 
$
3.7

Restricted stock
 
0.1

 
0.1

Performance share awards
 
0.1

 
—

Stock options
 
0.1

 
0.1

Total stock-based compensation expense
 
$
4.3

 
$
3.9

 
 


 


Income tax benefit related to the stock-based compensation expense
 
$
1.2

 
$
1.1


 
The following table summarizes the stock-based compensation expense included in each of our operating expense categories:
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Cost of revenue
 
$
2.0

 
$
1.7

Sales and marketing
 
0.5

 
0.5

General and administrative
 
1.8

 
1.7

Total stock-based compensation expense
 
$
4.3

 
$
3.9



The following table summarizes the amount of unrecognized stock-based compensation expense as of March 31, 2015 and the expected number of months over which the expense will be recognized:
 
 
Unrecognized stock-based compensation expense (in millions)

 
Expected amortization period (months)
Restricted stock units
 
$
29.1

 
30
Restricted stock
 
—

 
1
Performance share awards
 
4.2

 
32
Stock options
 
0.1

 
4
Total unrecognized stock-based compensation expense
 
$
33.4

 
30


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 annually in 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 the 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 three months of 2015:
Restricted Stock Units (RSUs)
 
Unvested

 
Vested but
Deferred

 
Total

 
Weighted
Average
Grant Date Value
per RSU

RSUs outstanding—December 31, 2014
 
655,934

 
14,778

 
670,712

 
$
67.51

Granted
 
—

 
—

 
—

 
—

Dividend equivalents
 
595

 
42

 
637

 
56.40

Vested
 
(123
)
 
—

 
(123
)
 
57.07

Issued
 
—

 
—

 
—

 
—

Forfeited
 
(10,812
)
 
—

 
(10,812
)
 
68.23

RSUs Outstanding - March 31, 2015
 
645,594

 
14,820

 
660,414

 
$
67.50


 
Restricted Stock
 
In conjunction with the 2010 Realpoint acquisition, we issued shares of restricted stock to the selling employee-shareholders which vest 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.
 
Performance Share Awards

In 2014, we introduced a long-term incentive award program consisting of performance shares. In March 2015, executive officers, other than Joe Mansueto, and certain other employees, were granted performance share awards. These awards entitle the holder to a number of shares of Morningstar common stock equal to the number of notional performance shares that become vested. Each award specifies a number of performance shares that will vest if pre-established target performance goals are attained. The number of performance shares that actually vest may be more or less than the specified number of performance shares to the extent Morningstar exceeds or fails to achieve, respectively, the target performance goals over a three-year performance period.

We base the grant date fair value for these awards on the closing market price of the underlying common stock on the day prior to the grant date. We amortize that value to stock-based compensation expense ratably over the vesting period based on the satisfaction of the performance condition that is most likely to be satisfied over the three-year performance period.

The table below shows target performance share awards granted and shares that would be issued at current performance levels for performance share awards granted as of March 31, 2015:
 
 
As of March 31, 2015

Target performance share awards granted
 
75,947

Weighted average fair value per award
 
$
76.33

Number of shares that would be issued based on current performance levels
 
64,105

Unamortized expense, based on current performance levels (in millions)
 
$
4.2



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 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.

The following table summarizes stock option activity in the first three months of 2015 for our various stock option grants:
 
 
Underlying
Shares

 
Weighted
Average
Exercise
Price

Options outstanding—December 31, 2014
 
169,810

 
$
40.20

Granted
 
—

 
—

Canceled
 
—

 
—

Exercised
 
(81,579
)
 
29.32

Options outstanding—March 31, 2015
 
88,231

 
$
50.53

 
 
 
 
 
Options exercisable—March 31, 2015
 
73,285

 
$
49.11


 
The following table summarizes the total intrinsic value of options exercised, which reflects the difference between the market value of our stock on the date of exercise and the exercise price of the option:
 
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Intrinsic value of options exercised
 
$
3.7

 
$
2.5


 

The table below shows additional information for options outstanding and exercisable as of March 31, 2015:
 
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number of  Options

 
Weighted
Average
Remaining
Contractual
Life (years)
 
Weighted
Average
Exercise
Price

 
Aggregate
Intrinsic
Value
(in millions)

 
Exercisable Shares

 
Weighted Average Remaining Contractual Life (years)
 
Weighted Average Exercise Price

 
Aggregate Intrinsic Value (in millions)

$27.81
 
19,300

 
0.09
 
$
27.81

 
$
0.9

 
19,300

 
0.09
 
$
27.81

 
$
0.9

$40.88 - $51.58
 
5,256

 
0.67
 
49.84

 
0.1

 
5,256

 
0.67
 
49.84

 
0.1

$57.28 - $59.35
 
63,675

 
6.26
 
57.48

 
1.1

 
48,729

 
6.26
 
57.47

 
0.9

$57.28 - $59.35
 
88,231

 
4.58
 
$
50.53

 
$
2.1

 
73,285

 
4.24
 
$
49.11

 
$
1.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected to Vest
 
 
 
 
 
 
 
 
 
 
 
 
 
$27.81 - $59.35
 
88,231

 
4.58
 
$
50.53

 
$
2.1

 
 
 
 
 
 
 
 

 
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 March 31, 2015. The intrinsic value is based on our closing stock price of $74.91 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 Condensed Consolidated Statements of Operations. The following table summarizes our excess tax benefits:
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Excess tax benefits related to stock-based compensation
 
$
1.1

 
$
0.6

Income Taxes
Income Taxes
Income Taxes

Effective Tax Rate

The following table shows our effective tax rate for the three months ended March 31, 2015 and March 31, 2014:
 
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Income before income taxes and equity in net income of unconsolidated entities
 
$
44.1

 
$
39.4

Equity in net income of unconsolidated entities
 
0.5

 
0.6

Net (income) loss attributable to the noncontrolling interest
 
(0.1
)
 
0.1

Total
 
$
44.5

 
$
40.1

Income tax expense
 
$
14.8

 
$
13.7

Effective tax rate
 
33.3
%
 
34.1
%

 
Our effective tax rate in the first quarter of 2015 was 33.3%, a decrease of 0.8 percentage points compared with 34.1% in the prior-year period. The effective tax rate decrease primarily reflects unrecognized tax benefits that were recorded in the prior-year period.

Unrecognized Tax Benefits

The table below provides information concerning our gross unrecognized tax benefits as of March 31, 2015 and December 31, 2014, as well as the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized.
 
 
As of March 31
 
As of December 31
(in millions)
 
2015

 
2014

Gross unrecognized tax benefits
 
$
11.6

 
$
11.9

Gross unrecognized tax benefits that would affect income tax expense
 
$
11.6

 
$
11.9

Decrease in income tax expense upon recognition of gross unrecognized tax benefits
 
$
10.2

 
$
10.6



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 March 31
 
As of December 31
Liabilities for Unrecognized Tax Benefits (in millions)
 
2015

 
2014

Current liability
 
$
5.0

 
$
5.1

Non-current liability
 
6.6

 
6.6

Total liability for unrecognized tax benefits
 
$
11.6

 
$
11.7



We conduct business globally and, as a result, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. We are currently under audit by 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 2015. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits.

We have not provided federal and state income taxes on accumulated undistributed earnings of certain foreign subsidiaries because these earnings have been permanently reinvested. Approximately 56% of our cash, cash equivalents, and investments balance as of March 31, 2015 was held by our operations outside of the United States. We believe that our cash balances and investments in the United States, along with cash generated from our U.S. operations, will be sufficient to meet our U.S. operating and cash needs for the foreseeable future, without requiring us to repatriate earnings from these foreign subsidiaries. It is not practical to determine the amount of the unrecognized deferred tax liability related to the undistributed earnings.
 
Certain of our non-U.S. operations have incurred net operating losses (NOLs) which may become deductible to the extent these operations become profitable. 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. In the year that certain non-U.S. operations record a loss, we do not recognize a corresponding tax benefit, thus increasing our effective tax rate. 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

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 the result of any of these matters will have a material adverse effect on our business, operating results, or financial position.
Share Repurchase Program
Share Repurchase Program
Share Repurchase Program
 
We have an ongoing authorization, originally approved by our board of directors in September 2010, and subsequently amended, to repurchase up to $700.0 million in shares of our outstanding common stock. The authorization expires on December 31, 2015. We may repurchase shares from time to time at prevailing market prices on the open market or in private transactions in amounts that we deem appropriate.

As of March 31, 2015, we had repurchased a total of 8,174,036 shares for $528.9 million under this authorization, leaving approximately $171.1 million available for future repurchases.
Summary of Significant Accounting Policies (Policies)
Segment Reporting Policy 
We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results.

Because we have one reportable segment, all required financial segment information can be found directly in the Unaudited Condensed Consolidated Financial Statements.

The accounting policies for our single reportable segment are the same as those described in “Note 3. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2014. We evaluate the performance of our reporting segment based on revenue and operating income.

Investments- Debt and Equity Securities Policy 
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: available-for-sale, held-to-maturity, and trading securities. Our investment portfolio is primarily invested in proprietary Morningstar portfolios, exchange-traded funds that seek to track the performance of certain Morningstar proprietary indexes, and various mutual funds. We classify our investment portfolio as shown below:
Acquisitions, Goodwill and Other Intangible Assets (Tables)
Schedule of Goodwill 
The following table shows the changes in our goodwill balances from December 31, 2014 to March 31, 2015:
 
 
 
(in millions)

Balance as of December 31, 2014
 
$
370.1

Foreign currency translation
 
(10.3
)
Balance as of March 31, 2015
 
$
359.8

Schedule of Intangible Assets 
The following table summarizes our intangible assets: 
 
 
As of March 31, 2015
 
As of December 31, 2014
(in millions)
 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)
 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)
Intellectual property
 
$
28.6

 
$
(25.2
)
 
$
3.4

 
9
 
$
29.0

 
$
(25.0
)
 
$
4.0

 
9
Customer-related assets
 
137.5

 
(84.5
)
 
53.0

 
12
 
141.5

 
(83.6
)
 
57.9

 
12
Supplier relationships
 
0.2

 
(0.1
)
 
0.1

 
20
 
0.2

 
(0.1
)
 
0.1

 
20
Technology-based assets
 
87.8

 
(58.7
)
 
29.1

 
8
 
88.8

 
(57.4
)
 
31.4

 
8
Non-competition agreement
 
4.3

 
(2.0
)
 
2.3

 
5
 
4.4

 
(1.9
)
 
2.5

 
5
Total intangible assets
 
$
258.4

 
$
(170.5
)
 
$
87.9

 
10
 
$
263.9

 
$
(168.0
)
 
$
95.9

 
10
 
Schedule of Intangible Asset, Amortization Expense 
The following table summarizes our amortization expense related to intangible assets:
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Amortization expense
 
$
5.5

 
$
5.1

Schedule of Expected Amortization Expense 
We expect intangible amortization expense for the remainder of 2015 and subsequent years as follows:
 
 
(in millions)

Remainder of 2015 (from April 1 through December 31)
 
$
16.0

2016
 
17.0

2017
 
12.7

2018
 
10.5

2019
 
7.8

Thereafter
 
23.9


 
Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful life, and currency translations.
Income Per Share (Tables)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] 
The following table shows the number of restricted stock units and performance share awards excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive:

 
 
Three months ended March 31
(in thousands)
 
2015

 
2014

Weighted average restricted stock units
 
32

 
6

Weighted average performance share awards
 
18

 
9

Total
 
50

 
15


Stock options and restricted stock could be included in the calculation in the future.
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 March 31
(in millions, except per share amounts)
 
2015

 
2014

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

 
 

Net income attributable to Morningstar, Inc.:
 
$
29.7

 
$
26.4

Less: Distributed earnings available to participating securities
 
—

 
—

Less: Undistributed earnings available to participating securities
 
—

 
—

Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
$
29.7

 
$
26.4

 
 
 
 
 
Weighted average common shares outstanding
 
44.3

 
44.8

 
 
 
 
 
Basic net income per share attributable to Morningstar, Inc.
 
$
0.67

 
$
0.59

 
 
 
 
 
Diluted net income per share attributable to Morningstar, Inc.:
 
 
 
 
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
$
29.7

 
$
26.4

Add: Undistributed earnings allocated to participating securities
 
—

 
—

Less: Undistributed earnings reallocated to participating securities
 
—

 
—

Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders
 
$
29.7

 
$
26.4

 
 


 


Weighted average common shares outstanding
 
44.3

 
44.8
Net effect of dilutive stock options, restricted stock units, and performance share awards
 
0.2

 
0.3

Weighted average common shares outstanding for computing diluted income per share
 
44.5

 
45.1

 
 


 
 
Diluted net income per share attributable to Morningstar, Inc.
 
$
0.67

 
$
0.58


Segment and Geographical Area Information (Tables)
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
External revenue by geographical area
 
 
 
 
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

United States
 
$
140.9

 
$
130.0

 
 
 
 
 
United Kingdom
 
14.6

 
15.3

Continental Europe
 
14.3

 
15.6

Australia
 
7.7

 
8.2

Canada
 
7.0

 
7.7

Asia
 
4.4

 
3.7

Other
 
0.9

 
0.7

Total International
 
48.9

 
51.2

 
 
 
 
 
Consolidated revenue
 
$
189.8

 
$
181.2



Long-lived assets by geographical area
 
 
 
 
 
 
As of March 31
 
As of December 31
(in millions)
 
2015

 
2014

United States
 
$
102.7

 
$
98.1

 
 
 
 
 
United Kingdom
 
8.4

 
8.1

Continental Europe
 
1.8

 
2.1

Australia
 
0.7

 
0.8

Canada
 
0.8

 
0.9

Asia
 
6.9

 
7.5

Other
 
0.1

 
0.1

Total International
 
18.7

 
19.5

 
 
 
 
 
Consolidated property, equipment, and capitalized software, net
 
$
121.4

 
$
117.6

Investments and Fair Value Measurements (Tables)
Schedule of Investments 
We classify our investment portfolio as shown below:
 
 
 
As of March 31
 
As of December 31
(in millions)
 
2015

 
2014

Available-for-sale
 
$
13.4

 
$
13.2

Held-to-maturity
 
16.8

 
17.9

Trading securities
 
8.4

 
8.3

Total
 
$
38.6

 
$
39.4

Unrealized Gain (Loss) on Investments 
The following table shows the cost, unrealized gains (losses), and fair value of investments classified as available-for-sale and held-to-maturity:
 
 
 
As of March 31, 2015
 
As of December 31, 2014
(in millions)
 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

Available-for-sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Equity securities and exchange-traded funds
 
$
11.5

 
$
0.9

 
$
(0.3
)
 
$
12.1

 
$
11.4

 
$
0.8

 
$
(0.3
)
 
$
11.9

Mutual funds
 
1.2

 
0.2

 
(0.1
)
 
1.3

 
1.2

 
0.2

 
(0.1
)
 
1.3

Total
 
$
12.7

 
$
1.1

 
$
(0.4
)
 
$
13.4

 
$
12.6

 
$
1.0

 
$
(0.4
)
 
$
13.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Certificates of deposit
 
$
16.8

 
$
—

 
$
—

 
$
16.8

 
$
17.9

 
$
—

 
$
—

 
$
17.9

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 March 31, 2015
 
As of December 31, 2014
(in millions)
 
Cost

 
Fair Value

 
Cost

 
Fair Value

Available-for-sale:
 
 

 
 

 
 

 
 

Equity securities, exchange-traded funds, and mutual funds
 
$
12.7

 
$
13.4

 
$
12.6

 
$
13.2

    Total
 
$
12.7

 
$
13.4

 
$
12.6

 
$
13.2

 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
16.8

 
$
16.8

 
$
17.9

 
$
17.9

Due in one to three years
 
—

 
—

 
—

 
—

Total
 
$
16.8

 
$
16.8

 
$
17.9

 
$
17.9

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: 

 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Realized gains
 
$
0.2

 
$
0.2

Realized losses
 
(0.2
)
 
(0.2
)
Realized gains (losses), net
 
$
—

 
$
—

Unrealized Gain (Loss) On Trading Securities 
The following table shows the net unrealized gains on trading securities as recorded in our Condensed Consolidated Statements of Income:
 
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Unrealized gains, net
 
$
0.1

 
$
0.1

Fair Value, Assets Measured on Recurring Basis 

The table below shows the fair value of our assets subject to fair value measurements that are measured at fair value on a recurring basis using the fair value hierarchy and the necessary disclosures under FASB ASC 820, Fair Value Measurement:
 
 
 
Fair Value
 
Fair Value Measurements as of March 31, 2015
 
 
as of
 
Using Fair Value Hierarchy
(in millions)
 
March 31, 2015
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Equity securities and exchange-traded funds
 
$
12.1

 
$
12.1

 
$
—

 
$
—

Mutual funds
 
1.3

 
1.3

 
—

 
—

Trading securities
 
8.4

 
8.4

 
—

 
—

Cash equivalents
 
0.5

 
0.5

 
—

 
—

Total
 
$
22.3

 
$
22.3

 
$
—

 
$
—

 
 
 
Fair Value
 
Fair Value Measurements as of December 31, 2014
 
 
as of
 
Using Fair Value Hierarchy
(in millions)
 
December 31, 2014
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Equity securities and exchange-traded funds
 
$
11.9

 
$
11.9

 
$
—

 
$
—

Mutual funds
 
1.3

 
1.3

 
—

 
—

Trading securities
 
8.3

 
8.3

 
—

 
—

Cash equivalents
 
0.5

 
0.5

 
—

 
—

Total
 
$
22.0

 
$
22.0

 
$
—

 
$
—

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 March 31

(in millions)
 
2015

Shares available for future grants
 
4.2

Schedule of Stock-Based Compensation Expense 
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded:
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Restricted stock units
 
$
4.0

 
$
3.7

Restricted stock
 
0.1

 
0.1

Performance share awards
 
0.1

 
—

Stock options
 
0.1

 
0.1

Total stock-based compensation expense
 
$
4.3

 
$
3.9

 
 


 


Income tax benefit related to the stock-based compensation expense
 
$
1.2

 
$
1.1

Schedule Of Compensation Cost By Expense Category 
The following table summarizes the stock-based compensation expense included in each of our operating expense categories:
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Cost of revenue
 
$
2.0

 
$
1.7

Sales and marketing
 
0.5

 
0.5

General and administrative
 
1.8

 
1.7

Total stock-based compensation expense
 
$
4.3

 
$
3.9

Schedule of Unrecognized Stock-Based Compensation Expense 
The following table summarizes the amount of unrecognized stock-based compensation expense as of March 31, 2015 and the expected number of months over which the expense will be recognized:
 
 
Unrecognized stock-based compensation expense (in millions)

 
Expected amortization period (months)
Restricted stock units
 
$
29.1

 
30
Restricted stock
 
—

 
1
Performance share awards
 
4.2

 
32
Stock options
 
0.1

 
4
Total unrecognized stock-based compensation expense
 
$
33.4

 
30
Schedule of Restricted Stock Units Award Activity 

The following table summarizes restricted stock unit activity during the first three months of 2015:
Restricted Stock Units (RSUs)
 
Unvested

 
Vested but
Deferred

 
Total

 
Weighted
Average
Grant Date Value
per RSU

RSUs outstanding—December 31, 2014
 
655,934

 
14,778

 
670,712

 
$
67.51

Granted
 
—

 
—

 
—

 
—

Dividend equivalents
 
595

 
42

 
637

 
56.40

Vested
 
(123
)
 
—

 
(123
)
 
57.07

Issued
 
—

 
—

 
—

 
—

Forfeited
 
(10,812
)
 
—

 
(10,812
)
 
68.23

RSUs Outstanding - March 31, 2015
 
645,594

 
14,820

 
660,414

 
$
67.50

Schedule of Performance Share Activity 
The table below shows target performance share awards granted and shares that would be issued at current performance levels for performance share awards granted as of March 31, 2015:
 
 
As of March 31, 2015

Target performance share awards granted
 
75,947

Weighted average fair value per award
 
$
76.33

Number of shares that would be issued based on current performance levels
 
64,105

Unamortized expense, based on current performance levels (in millions)
 
$
4.2

Schedule of All Other Option Granted 
The following table summarizes stock option activity in the first three months of 2015 for our various stock option grants:
 
 
Underlying
Shares

 
Weighted
Average
Exercise
Price

Options outstanding—December 31, 2014
 
169,810

 
$
40.20

Granted
 
—

 
—

Canceled
 
—

 
—

Exercised
 
(81,579
)
 
29.32

Options outstanding—March 31, 2015
 
88,231

 
$
50.53

 
 
 
 
 
Options exercisable—March 31, 2015
 
73,285

 
$
49.11


 
Schedule of Intrinsic Value of Stock Options Exercised During Period 
The following table summarizes the total intrinsic value of options exercised, which reflects the difference between the market value of our stock on the date of exercise and the exercise price of the option:
 
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Intrinsic value of options exercised
 
$
3.7

 
$
2.5

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

The table below shows additional information for options outstanding and exercisable as of March 31, 2015:
 
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number of  Options

 
Weighted
Average
Remaining
Contractual
Life (years)
 
Weighted
Average
Exercise
Price

 
Aggregate
Intrinsic
Value
(in millions)

 
Exercisable Shares

 
Weighted Average Remaining Contractual Life (years)
 
Weighted Average Exercise Price

 
Aggregate Intrinsic Value (in millions)

$27.81
 
19,300

 
0.09
 
$
27.81

 
$
0.9

 
19,300

 
0.09
 
$
27.81

 
$
0.9

$40.88 - $51.58
 
5,256

 
0.67
 
49.84

 
0.1

 
5,256

 
0.67
 
49.84

 
0.1

$57.28 - $59.35
 
63,675

 
6.26
 
57.48

 
1.1

 
48,729

 
6.26
 
57.47

 
0.9

$57.28 - $59.35
 
88,231

 
4.58
 
$
50.53

 
$
2.1

 
73,285

 
4.24
 
$
49.11

 
$
1.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected to Vest
 
 
 
 
 
 
 
 
 
 
 
 
 
$27.81 - $59.35
 
88,231

 
4.58
 
$
50.53

 
$
2.1

 
 
 
 
 
 
 
 
Schedule of Tax Benefits Related to Share Based Compensation 
The following table summarizes our excess tax benefits:
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Excess tax benefits related to stock-based compensation
 
$
1.1

 
$
0.6

Income Taxes (Tables)
Schedule of Effective Income Tax Rate Reconciliation 
The following table shows our effective tax rate for the three months ended March 31, 2015 and March 31, 2014:
 
 
 
Three months ended March 31
(in millions)
 
2015

 
2014

Income before income taxes and equity in net income of unconsolidated entities
 
$
44.1

 
$
39.4

Equity in net income of unconsolidated entities
 
0.5

 
0.6

Net (income) loss attributable to the noncontrolling interest
 
(0.1
)
 
0.1

Total
 
$
44.5

 
$
40.1

Income tax expense
 
$
14.8

 
$
13.7

Effective tax rate
 
33.3
%
 
34.1
%
Schedule of Gross Unrecognized Tax Benefits 
The table below provides information concerning our gross unrecognized tax benefits as of March 31, 2015 and December 31, 2014, as well as the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized.
 
 
As of March 31
 
As of December 31
(in millions)
 
2015

 
2014

Gross unrecognized tax benefits
 
$
11.6

 
$
11.9

Gross unrecognized tax benefits that would affect income tax expense
 
$
11.6

 
$
11.9

Decrease in income tax expense upon recognition of gross unrecognized tax benefits
 
$
10.2

 
$
10.6

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 March 31
 
As of December 31
Liabilities for Unrecognized Tax Benefits (in millions)
 
2015

 
2014

Current liability
 
$
5.0

 
$
5.1

Non-current liability
 
6.6

 
6.6

Total liability for unrecognized tax benefits
 
$
11.6

 
$
11.7

Credit Arrangements (Details) (Revolving Credit Facility [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 1 Months Ended
Mar. 31, 2015
Jul. 31, 2014
Jul. 31, 2014
London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
 
 
 
Line of credit
 
$ 75.0 
 
Proceeds from line of credit
15.0 
 
 
Outstanding principal balance
45.0 
 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
100.00% 
Borrowing availability under line of credit
$ 30.0 
 
 
Acquisitions, Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Goodwill, Impairment Loss
$ 0 
$ 0 
Goodwill [Roll Forward]
 
 
Goodwill, Beginning Balance
370.1 
 
Foreign currency translation
(10.3)
 
Goodwill, Ending Balance
$ 359.8 
 
Acquisitions, Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
$ 258.4 
$ 263.9 
Accumulated Amortization
(170.5)
(168.0)
Intangible assets, Net
87.9 
95.9 
Weighted-Average Useful Life (years)
10 years 
10 years 
Intellectual Property [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
28.6 
29.0 
Accumulated Amortization
(25.2)
(25.0)
Intangible assets, Net
3.4 
4.0 
Weighted-Average Useful Life (years)
9 years 
9 years 
Customer Related Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
137.5 
141.5 
Accumulated Amortization
(84.5)
(83.6)
Intangible assets, Net
53.0 
57.9 
Weighted-Average Useful Life (years)
12 years 
12 years 
Supplier Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
0.2 
0.2 
Accumulated Amortization
(0.1)
(0.1)
Intangible assets, Net
0.1 
0.1 
Weighted-Average Useful Life (years)
20 years 
20 years 
Technology-Based Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
87.8 
88.8 
Accumulated Amortization
(58.7)
(57.4)
Intangible assets, Net
29.1 
31.4 
Weighted-Average Useful Life (years)
8 years 
8 years 
Non-competition Agreement [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
4.3 
4.4 
Accumulated Amortization
(2.0)
(1.9)
Intangible assets, Net
$ 2.3 
$ 2.5 
Weighted-Average Useful Life (years)
5 years 
5 years 
Acquisitions, Goodwill and Other Intangible Assets (Amortization Expense) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Amortization expense
$ 5.5 
$ 5.1 
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
2015
16.0 
 
2016
17.0 
 
2017
12.7 
 
2018
10.5 
 
2019
7.8 
 
Thereafter
$ 23.9 
 
Income Per Share (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
50,000 
15,000 
Earnings Per Share, Basic [Abstract]
 
 
Net income attributable to Morningstar, Inc.
$ 29.7 
$ 26.4 
Less: Distributed Earnings Available to Participating Securities
0 
0 
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic
0 
0 
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders
29.7 
26.4 
Weighted average common shares outstanding
44,300,000 
44,800,000 
Basic net income per share attributable to Morningstar, Inc.
$ 0.67 
$ 0.59 
Earnings Per Share, Diluted [Abstract]
 
 
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders
29.7 
26.4 
Add: Undistributed Earnings Allocated To Participating Securities
0 
0 
Less: Undistributed Earnings Reallocated to Participating Securities
0 
0 
Numerator for diluted net income per share - undistributed and distributed earnings available to common shareholders
$ 29.7 
$ 26.4 
Weighted average common shares outstanding
44,300,000 
44,800,000 
Net effect of dilutive stock options and restricted stock units
200,000 
300,000 
Weighted average common shares outstanding for computing diluted income per share
44,500,000 
45,100,000 
Diluted net income per share attributable to Morningstar, Inc.
$ 0.67 
$ 0.58 
Restricted Stock Units (RSUs) [Member]
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
32,000 
6,000 
Performance Shares [Member]
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
18,000 
9,000 
Segment and Geographical Area Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
External revenue
$ 189.8 
$ 181.2 
U.S. [Member]
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
External revenue
140.9 
130.0 
Non-U.S. [Member]
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
External revenue
$ 48.9 
$ 51.2 
Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
External revenue
$ 189.8 
$ 181.2 
 
Long-lived assets
121.4 
 
117.6 
United States
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
External revenue
140.9 
130.0 
 
Long-lived assets
102.7 
 
98.1 
Total International
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
External revenue
48.9 
51.2 
 
Long-lived assets
18.7 
 
19.5 
United Kingdom
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
External revenue
14.6 
15.3 
 
Long-lived assets
8.4 
 
8.1 
Continental Europe
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
External revenue
14.3 
15.6 
 
Long-lived assets
1.8 
 
2.1 
Australia
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
External revenue
7.7 
8.2 
 
Long-lived assets
0.7 
 
0.8 
Canada
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
External revenue
7.0 
7.7 
 
Long-lived assets
0.8 
 
0.9 
Asia
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
External revenue
4.4 
3.7 
 
Long-lived assets
6.9 
 
7.5 
Other
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
External revenue
0.9 
0.7 
 
Long-lived assets
$ 0.1 
 
$ 0.1 
Investments and Fair Value Measurements (Classification of Securities) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Fair Value Disclosures [Abstract]
 
 
Available-for-sale
$ 13.4 
$ 13.2 
Held-to-maturity
16.8 
17.9 
Trading securities
8.4 
8.3 
Total
$ 38.6 
$ 39.4 
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2014
Available-for-sale:
 
 
 
Available-for-sale securities, Cost
$ 12.7 
 
$ 12.6 
Available-for-sale Securities, Unrealized Gain
1.1 
 
1.0 
Available-for-sale Securities, Unrealized Loss
(0.4)
 
(0.4)
Available-for-sale securities, Fair Value
13.4 
 
13.2 
Held-to-maturity:
 
 
 
Held-to-maturity securities, Cost
16.8 
 
17.9 
Held-to-maturity Securities, Unrecognized Gain
0 
 
0 
Held-to-maturity Securities, Unrecognized Loss
0 
 
0 
Held-to-maturity
16.8 
 
17.9 
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
 
 
 
Available-for-sale securities, realized gains
0.2 
0.2 
 
Available-for-sale securities, realized losses
(0.2)
(0.2)
 
Available-for-sale securities, realized gains (losses), net
0 
0 
 
Equity Securities and Exchange-traded Funds [Member]
 
 
 
Available-for-sale:
 
 
 
Available-for-sale securities, Cost
11.5 
 
11.4 
Available-for-sale Securities, Unrealized Gain
0.9 
 
0.8 
Available-for-sale Securities, Unrealized Loss
(0.3)
 
(0.3)
Available-for-sale securities, Fair Value
12.1 
 
11.9 
Mutual Funds [Member]
 
 
 
Available-for-sale:
 
 
 
Available-for-sale securities, Cost
1.2 
 
1.2 
Available-for-sale Securities, Unrealized Gain
0.2 
 
0.2 
Available-for-sale Securities, Unrealized Loss
(0.1)
 
(0.1)
Available-for-sale securities, Fair Value
$ 1.3 
 
$ 1.3 
Investments and Fair Value Measurements (Cost and Fair Value of Investments Classified by Maturity) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Available-for-sale Securities, Debt Maturities [Abstract]
 
 
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Cost
$ 12.7 
$ 12.6 
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Fair Value
13.4 
13.2 
Available-for-sale securities, Cost
12.7 
12.6 
Available-for-sale securities, Fair Value
13.4 
13.2 
Held-to-maturity Securities, Debt Maturities [Abstract]
 
 
Held-to-maturity securities, Due in one year or less, Cost
16.8 
17.9 
Held-to-maturity securities, Due within one year or less, Fair Value
16.8 
17.9 
Held-to-maturity securities, Due in one to three years, Cost
0 
0 
Held-to-maturity securities, Due in one to three years, Fair Value
0 
0 
Held-to-maturity securities, Cost
16.8 
17.9 
Held-to-maturity securities, Fair Value
16.8 
17.9 
Certificate of deposit held as collateral against Australia office lease
 
$ 1.5 
Investments and Fair Value Measurements (Unrealized Gains on Trading Securities) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Fair Value Disclosures [Abstract]
 
 
Unrealized gains (losses), net
$ 0.1 
$ 0.1 
Investments and Fair Value Measurements (Fair Value of Assets) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading securities, fair value
$ 8.4 
$ 8.3 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading securities, fair value
8.4 
8.3 
Cash equivalents, fair value
0.5 
0.5 
Total investments, fair value
22.3 
22.0 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [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
12.1 
11.9 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member] |
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
1.3 
1.3 
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
8.4 
8.3 
Cash equivalents, fair value
0.5 
0.5 
Total investments, fair value
22.3 
22.0 
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
12.1 
11.9 
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
1.3 
1.3 
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
0 
0 
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] |
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 and Fair Value Measurements - Narrative (Details) (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2014
Morningstar Sweden AB [Member]
Dec. 31, 2014
YCharts [Member]
Dec. 31, 2014
Inquiry Financial Europe AB [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Equity Method Investment, Ownership Percentage
 
 
100.00% 
22.00% 
34.00% 
Cost-method Investments, Other than Temporary Impairment
$ 0 
$ 0 
 
 
 
Equity Method Investment, Other than Temporary Impairment
$ 0 
$ 0 
 
 
 
Stock-Based Compensation (Shares Available For Future Grants) (Details)
In Millions, unless otherwise specified
Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Shares available for future grants
4.2 
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs by Plan) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Allocated Share-based Compensation Expense
$ 4.3 
$ 3.9 
Income tax benefit related to the stock-based compensation expense
1.2 
1.1 
Restricted Stock Units (RSUs) [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Allocated Share-based Compensation Expense
4.0 
3.7 
Restricted Stock [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Allocated Share-based Compensation Expense
0.1 
0.1 
Performance Shares [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Allocated Share-based Compensation Expense
0.1 
0 
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Allocated Share-based Compensation Expense
0.1 
0.1 
Cost of Revenue [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Allocated Share-based Compensation Expense
2.0 
1.7 
Selling and Marketing Expense [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Allocated Share-based Compensation Expense
0.5 
0.5 
General and Administrative Expense [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Allocated Share-based Compensation Expense
$ 1.8 
$ 1.7 
Stock-Based Compensation (Schedule of Unrecognized Stock-based Compensation Expense) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
$ 33.4 
Expected amortization period (months)
30 years 
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
29.1 
Expected amortization period (months)
30 years 
Restricted Stock [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
0 
Expected amortization period (months)
1 year 
Performance Shares [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
4.2 
Expected amortization period (months)
32 years 
Stock Options [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
$ 0.1 
Expected amortization period (months)
4 years 
Stock-Based Compensation (Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $)
3 Months Ended
Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
 
RSUs outstanding, Beginning Balance, Unvested
655,934 
RSUs outstanding, Beginning Balance, Vested but Deferred
14,778 
RSUs outstanding, Beginning Balance, Total
670,712 
RSUs outstanding, Beginning Balance, Weighted Average Grant Date Valueper RSU
$ 67.51 
Granted, Unvested
0 
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Grants In Period
0 
Granted, Total
0 
Granted, Weighted Average Grant Date Valueper RSU
$ 0.00 
Dividend equivalents, Unvested
595 
Dividend equivalents, Vestedd but Deferred
42 
Dividend equivalents, Total
637 
Dividend equivalents, Weighted Average Grant Date Valueper RSU
$ 56.40 
Vested, Unvested
(123)
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Vested In Period
0 
Vested, Total
(123)
Vested, Weighted Average Grant Date Valueper RSU
$ 57.07 
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Nonvested Issued in Period
0 
Issued, Vested but Deferred
0 
Issued, Total
0 
Issued, Weighted Average Grant Date Valueper RSU
$ 0.00 
Forfeited, Unvested
(10,812)
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Forfeited In Period
0 
Forfeited, Total
(10,812)
Forfeited, Weighted Average Grant Date Valueper RSU
$ 68.23 
RSUs outstanding, Ending Balance, Unvested
645,594 
RSUs outstanding, Ending Balance, Vested but Deferred
14,820 
RSUs outstanding, Ending Balance, Total
660,414 
RSUs outstanding, Ending Balance, Weighted Average Grant Date Valueper RSU
$ 67.50 
Employee [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Award vesting period
4 years 
Non-Employee Director [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Award vesting period
3 years 
Realpoint, LLC [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Award vesting period
5 years 
Stock-Based Compensation (Performance Shares Activity) (Details) (Performance Shares [Member], USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 15 Months Ended
Mar. 31, 2015
Mar. 31, 2015
Performance Shares [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Target performance share awards granted
 
75,947 
Weighted average fair value per award
$ 76.33 
 
Number of shares that would be issued based on current performance levels
64,105 
 
Unamortized expense, based on current performance levels (in millions)
$ 4.2 
$ 4.2 
Performance period
3 years 
 
Stock-Based Compensation (Stock Option Activity) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Option Exercise Price Grouping [Member]
 
 
Intrinsic Value of Options Exercised [Abstract]
 
 
Intrinsic value of options exercised
$ 3.7 
$ 2.5 
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
169,810 
 
Granted, Underlying Shares
0 
 
Canceled, Underlying Shares
0 
 
Exercised, Underlying Shares
(81,579)
 
Options outstanding, Ending Balance, Underlying Shares
88,231 
 
Options, Weighted Average Exercise Price [Abstract]
 
 
Options outstanding, Beginning Balance, Weighted Average Exercise Price
$ 40.20 
 
Granted, Weighted Average Exercise Price
$ 0.00 
 
Canceled, Weighted Average Exercise Price
$ 0.00 
 
Exercised, Weighted Average Exercise Price
$ 29.32 
 
Options outstanding, Ending Balance, Weighted Average Exercise Price
$ 50.53 
 
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract]
 
 
Options exercisable, Underlying Shares
73,285 
 
Options exercisable, Weighted Average Exercise Price
$ 49.11 
 
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award expiration period
10 years 
 
Employee [Member] |
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award vesting period
4 years 
 
Non-Employee Director [Member] |
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award vesting period
3 years 
 
Stock-Based Compensation (Additional Information on Options) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Closing stock price used to calculate intrinsic value
$ 74.91 
Range One [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices
$27.81 
Range of Exercise Prices, Lower Limit
$ 0.00 
Range of Exercise Prices, Upper Limit
$ 27.81 
Options Outstanding, Number of Options
19,300 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
0 years 1 month 2 days 
Options Outstanding, Weighted Average Exercise Price
$ 27.81 
Options Outstanding, Aggregate Intrinsic Value
$ 0.9 
Options Exercisable, Exercisable Shares
19,300 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
0 years 1 month 2 days 
Options Exercisable, Weighted Average Exercise Price
$ 27.81 
Options Exercisable, Aggregate Intrinsic Value
0.9 
Range Two [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices
$40.88 - $51.58 
Range of Exercise Prices, Lower Limit
$ 40.88 
Range of Exercise Prices, Upper Limit
$ 51.58 
Options Outstanding, Number of Options
5,256 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
0 years 8 months 1 day 
Options Outstanding, Weighted Average Exercise Price
$ 49.84 
Options Outstanding, Aggregate Intrinsic Value
0.1 
Options Exercisable, Exercisable Shares
5,256 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
0 years 8 months 1 day 
Options Exercisable, Weighted Average Exercise Price
$ 49.84 
Options Exercisable, Aggregate Intrinsic Value
0.1 
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
63,675 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
6 years 3 months 4 days 
Options Outstanding, Weighted Average Exercise Price
$ 57.48 
Options Outstanding, Aggregate Intrinsic Value
1.1 
Options Exercisable, Exercisable Shares
48,729 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
6 years 3 months 4 days 
Options Exercisable, Weighted Average Exercise Price
$ 57.47 
Options Exercisable, Aggregate Intrinsic Value
0.9 
Range Four [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
88,231 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
4 years 6 months 29 days 
Options Outstanding, Weighted Average Exercise Price
$ 50.53 
Options Outstanding, Aggregate Intrinsic Value
2.1 
Options Exercisable, Exercisable Shares
73,285 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
4 years 2 months 27 days 
Options Exercisable, Weighted Average Exercise Price
$ 49.11 
Options Exercisable, Aggregate Intrinsic Value
1.9 
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
$ 27.81 
Range of Exercise Prices, Upper Limit
$ 59.35 
Vested or Expected to Vest, Range of Exercise Prices
$27.81 - $59.35 
Vested or Expected to Vest, Number of Options
88,231 
Vested or Expected to Vest, Weighted Average Remaining Contractual Life (years)
4 years 6 months 29 days 
Vested or Expected to Vest, Weighted Average Exercise Price
$ 50.53 
Vested or Expected to Vest, Aggregate Intrinsic Value
$ 2.1 
Income Taxes (Income Tax Reconciliation and Unrecognized Tax Benefits) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2014
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
 
Income before income taxes and equity in net income of unconsolidated entities
$ 44.1 
$ 39.4 
 
Equity in net income of unconsolidated entities
0.5 
0.6 
 
Net (income) loss attributable to the noncontrolling interest
(0.1)
0.1 
 
Total
44.5 
40.1 
 
Income tax expense
14.8 
13.7 
 
Effective income tax rate
0.00% 
0.00% 
 
Effective income tax rate reconciliation, change in percentage points compared with prior year period
(0.8)
 
 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract]
 
 
 
Current liabilities
5.0 
 
5.1 
Non-current liabilities
6.6 
 
6.6 
Total liability for unrecognized tax benefits
$ 11.6 
 
$ 11.7 
Geographic Concentration Risk [Member] |
Cash, Cash Equivalents and Investments [Member] |
Non-U.S. [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Percentage of cash, cash equivalents and investments held by operations outside of US
56.00% 
 
 
Income Taxes (Income Tax Contingency) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
Gross unrecognized tax benefits
$ 11.6 
$ 11.9 
Gross unrecognized tax benefits which would affect income tax expense
11.6 
11.9 
Decrease in income tax expense upon recognition of gross unrecognized tax benefits
$ 10.2 
$ 10.6 
Share Repurchase Program (Details) (USD $)
Mar. 31, 2015
Equity [Abstract]
 
Share repurchase program, authorized amount
$ 700,000,000 
Shares repurchased, program life to date, shares
8,174,036 
Shares repurchased, program life to date, value
528,900,000 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
$ 171,100,000