MORNINGSTAR, INC., 10-Q filed on 4/26/2024
Quarterly Report
v3.24.1.u1
Cover page - shares
 3 Months Ended
Mar. 31, 2024
Apr. 19, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
Document Transition Report false  
Entity File Number 000-51280  
Entity Registrant Name MORNINGSTAR, INC.  
Entity Central Index Key 0001289419  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Title of 12(b) Security Common stock, no par value  
Entity Incorporation, State or Country Code IL  
Entity Tax Identification Number 36-3297908  
Entity Address, Address Line One 22 West Washington Street  
Entity Address, City or Town Chicago,  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 60602  
Trading Symbol MORN  
Security Exchange Name NASDAQ  
City Area Code 312  
Local Phone Number 696-6000  
Entity Current Reporting Status Yes  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   42,745,583
v3.24.1.u1
Condensed Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Statement [Abstract]    
Revenue $ 542.8 $ 479.7
Operating expense:    
Cost of revenue 218.1 218.8
Sales and marketing 104.6 107.6
General and administrative 80.3 84.0
Depreciation and amortization 47.2 44.8
Total operating expense 450.2 455.2
Operating income 92.6 24.5
Non-operating expense, net:    
Interest expense, net (11.5) (13.3)
Realized gain on sale of investments, reclassified from other comprehensive income 2.6 0.2
Expense from equity method transaction, net 0.0 (11.8)
Other income, net 3.3 2.5
Non-operating expense, net (5.6) (22.4)
Income before income taxes and equity in investments of unconsolidated entities 87.0 2.1
Equity in investments of unconsolidated entities (1.5) (1.3)
Income tax expense 21.3 8.4
Consolidated net income (loss) $ 64.2 $ (7.6)
Net income per share:    
Basic (in dollars per share) $ 1.50 $ (0.18)
Diluted (in dollars per share) 1.49 (0.18)
Dividends declared (in dollars per share) 0.41 0.38
Dividends paid per common share (in dollars per share) $ 0.41 $ 0.38
Weighted average shares outstanding:    
Basic (in shares) 42.7 42.5
Diluted (in shares) 43.0 42.5
v3.24.1.u1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]    
Consolidated net income (loss) $ 64.2 $ (7.6)
Other comprehensive income (loss), net of tax:    
Foreign currency translation adjustment, net (10.6) 7.1
Unrealized gains on securities:    
Unrealized holding gains arising during period 1.9 0.1
Reclassification of realized gains on investments included in net income (1.9) (0.2)
Other comprehensive income (loss), net (10.6) 7.0
Comprehensive income (loss) $ 53.6 $ (0.6)
v3.24.1.u1
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 353.7 $ 337.9
Investments 55.4 51.1
Accounts receivable, less allowance for credit losses of $6.1 million and $5.6 million, respectively 326.2 343.9
Income tax receivable, net 0.0 0.6
Deferred commissions 41.6 41.9
Prepaid expenses 48.6 34.9
Other current assets 5.1 5.4
Total current assets 830.6 815.7
Goodwill 1,574.1 1,578.8
Intangible assets, net 463.4 484.4
Property, equipment, and capitalized software, less accumulated depreciation and amortization of $741.2 million and $714.0 million, respectively 210.8 207.7
Operating lease assets 156.5 163.9
Investments in unconsolidated entities 96.1 100.2
Deferred tax assets, net 19.7 14.6
Deferred commissions 30.0 29.3
Other assets 8.2 8.8
Total assets 3,389.4 3,403.4
Current liabilities:    
Deferred revenue 565.2 517.7
Accrued compensation 122.9 214.4
Accounts payable and accrued liabilities 72.0 78.4
Current portion of long-term debt 32.1 32.1
Operating lease liabilities 34.7 36.4
Other current liabilities 19.9 1.8
Total current liabilities 846.8 880.8
Operating lease liabilities 143.8 151.4
Accrued compensation 23.3 23.7
Deferred tax liabilities, net 32.8 35.6
Long-term debt 917.3 940.3
Deferred revenue 24.7 26.3
Other long-term liabilities 17.6 17.5
Total liabilities 2,006.3 2,075.6
Morningstar, Inc. shareholders’ equity:    
Common stock, no par value, 200,000,000 shares authorized, of which 42,745,570 and 42,728,182 shares were outstanding as of March 31, 2024 and December 31, 2023, respectively 0.0 0.0
Treasury stock at cost, 11,987,495 and 11,987,495 shares as of March 31, 2024 and December 31, 2023, respectively (985.5) (985.5)
Additional paid-in capital 808.0 789.0
Retained earnings 1,657.7 1,610.8
Accumulated other comprehensive loss:    
Currency translation adjustment (97.0) (86.4)
Unrealized loss on available-for-sale investments (0.1) (0.1)
Total accumulated other comprehensive loss (97.1) (86.5)
Total equity 1,383.1 1,327.8
Total liabilities and equity $ 3,389.4 $ 3,403.4
v3.24.1.u1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts receivable $ 6.1 $ 5.6
Accumulated depreciation and amortization $ 741.2 $ 714.0
Common Stock, No Par Value (in dollars per share) $ 0 $ 0
Common Stock, Shares Authorized (in shares) 200,000,000 200,000,000
Common Stock, Shares, Outstanding (in shares) 42,745,570 42,728,182
Treasury Stock, Common, Shares 11,987,495 11,987,495
v3.24.1.u1
Condensed Consolidated Statement of Equity - USD ($)
$ in Millions
Total
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Treasury Stock, Common
Balance at Dec. 31, 2022 $ 1,207.1 $ 0.0 $ 757.8 $ 1,535.0 $ (99.0) $ (986.7)
Balance (in shares) at Dec. 31, 2022   42,480,051        
Increase (Decrease) in Stockholders' Equity            
Consolidated net income (loss) (7.6)     (7.6)    
Other comprehensive income (loss):            
Unrealized gain on available-for-sale investments, net of tax 0.1       0.1  
Reclassification of realized gain on investments included in net income, net of tax (0.2)       (0.2)  
Foreign currency translation adjustment, net 7.1       7.1  
Other comprehensive loss, net 7.0       7.0  
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards   70,892        
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards (9.4)   (9.4)      
Reclassification of awards previously liability-classified that were converted to equity 11.4   11.4      
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition            
Stock-based compensation 12.2   12.2      
Dividends declared (16.0)     (16.0)    
Balance at Mar. 31, 2023 $ 1,204.7 $ 0.0 772.0 1,511.4 (92.0) (986.7)
Balance (in shares) at Mar. 31, 2023   42,550,943        
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition            
Dividends declared (in dollars per share) $ 0.38          
Balance at Dec. 31, 2023 $ 1,327.8 $ 0.0 789.0 1,610.8 (86.5) (985.5)
Balance (in shares) at Dec. 31, 2023 42,728,182 42,728,182        
Increase (Decrease) in Stockholders' Equity            
Consolidated net income (loss) $ 64.2     64.2    
Other comprehensive income (loss):            
Unrealized gain on available-for-sale investments, net of tax 1.9       1.9  
Reclassification of realized gain on investments included in net income, net of tax (1.9)       (1.9)  
Foreign currency translation adjustment, net (10.6)       (10.6)  
Other comprehensive loss, net (10.6)       (10.6)  
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards   17,388        
Issuance of common stock related to vesting of stock awards, net of shares withheld for taxes on settlements of stock awards (3.2)   (3.2)      
Reclassification of awards previously liability-classified that were converted to equity 10.8   10.8      
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition            
Stock-based compensation 11.4   11.4      
Dividends declared (17.3)     (17.3)    
Balance at Mar. 31, 2024 $ 1,383.1 $ 0.0 $ 808.0 $ 1,657.7 $ (97.1) $ (985.5)
Balance (in shares) at Mar. 31, 2024 42,745,570 42,745,570        
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition            
Dividends declared (in dollars per share) $ 0.41          
v3.24.1.u1
Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]    
Dividends declared (in dollars per share) $ 0.41 $ 0.38
v3.24.1.u1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Operating activities    
Consolidated net income (loss) $ 64.2 $ (7.6)
Adjustments to reconcile consolidated net income to net cash flows from operating activities:    
Depreciation and amortization 47.2 44.8
Deferred income taxes (7.5) 2.0
Stock-based compensation expense 11.4 12.2
Provision for bad debt 1.4 1.0
Equity in investments of unconsolidated entities 1.5 1.3
Gain on equity method transaction 0.0 (49.6)
Other, net (11.0) (2.7)
Changes in operating assets and liabilities:    
Accounts receivable 13.7 9.8
Accounts payable and accrued liabilities (4.3) (5.8)
Accrued compensation and deferred commissions (79.2) (75.2)
Income taxes, current 16.3 (2.6)
Deferred revenue 50.0 43.4
Other assets and liabilities (10.1) 52.4
Cash provided by operating activities 93.6 23.4
Investing activities    
Purchases of investment securities (7.2) (2.8)
Proceeds from maturities and sales of investment securities 17.4 5.5
Capital expenditures (34.1) (29.5)
Proceeds from sale of equity method investments, net 0.0 26.2
Purchases of investments in unconsolidated entities (2.8) (0.1)
Cash used for investing activities (26.7) (0.7)
Financing activities    
Dividends paid (17.3) (15.9)
Proceeds from revolving credit facility 90.0 95.0
Repayment of revolving credit facility (105.0) (65.0)
Repayment of term facility (8.1) (8.1)
Employee taxes withheld for stock awards (3.2) (9.3)
Payment of acquisition-related earn-outs 0.0 (45.5)
Other, net 0.1 0.0
Cash used for financing activities (43.5) (48.8)
Effect of exchange rate changes on cash and cash equivalents (7.6) 1.7
Net increase (decrease) in cash and cash equivalents 15.8 (24.4)
Cash and cash equivalents—beginning of period 337.9 376.6
Cash and cash equivalents—end of period 353.7 352.2
Supplemental disclosure of cash flow information:    
Cash paid for income taxes 12.5 9.1
Cash paid for interest $ 11.5 $ 11.9
v3.24.1.u1
Basis of Presentation of Interim Financial Information
 3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation of Interim Financial Information Basis of Presentation of Interim Financial Information
 
The accompanying unaudited 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 (GAAP) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues, 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, 2023, filed with the SEC on February 29, 2024 (our Annual Report).

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
v3.24.1.u1
Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Our significant accounting policies are included in Note 2 of the Notes to our Audited Consolidated Financial Statements included in our Annual Report.

Recently issued accounting pronouncements not yet adopted

Segment reporting: On November 27, 2023, the FASB issued ASU No. 2023-07: Improvements to Reportable Segment Disclosures (Topic 280) (ASU No. 2023-07), which requires improved reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The new standard is effective for our fiscal year beginning on January 1, 2024 and interim periods beginning on January 1, 2025. Entities should apply the new guidance retrospectively to all prior periods presented in the financial statements. We are evaluating the effect that ASU No. 2023-07 will have on our consolidated financial statements and related disclosures.

Income Taxes: On December 14, 2023, the FASB issued ASU No 2023-09: Improvements to Income Tax Disclosures (Topic 740) (ASU No. 2023-09), which requires additional disclosures primarily related to the income tax rate reconciliation and income taxes paid. This new standard is effective for our fiscal year beginning on January 1, 2025. Early adoption is permitted. Entities should apply the guidance prospectively although retrospective application is permitted. We have not made a decision on early adoption and are evaluating the effect that ASU No. 2023-09 will have on our consolidated financial statements and related disclosures.
v3.24.1.u1
Credit Arrangements
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Credit Arrangements Credit Arrangements
Debt

The following table summarizes our debt as of March 31, 2024 and December 31, 2023:

(in millions)As of March 31, 2024As of December 31, 2023
Amended 2022 Term Facility, net of unamortized debt issuance costs of $0.5 million and $0.5 million, respectively$600.8 $608.9 
Amended 2022 Revolving Credit Facility— 15.0 
2.32% Senior Notes due October 26, 2030, net of unamortized debt issuance costs of $1.4 million and $1.5 million, respectively
348.6 348.5 
Total debt$949.4 $972.4 

Credit Agreement

On May 6, 2022, the company entered into a senior credit agreement (the 2022 Credit Agreement), providing the Company with a five-year multi-currency credit facility with an initial borrowing capacity of up to $1.1 billion, including a $650.0 million term loan and a $450.0 million revolving credit facility. The agreement also provided for the issuance of letters of credit and a swingline facility. The 2022 Credit Agreement was amended twice in September 2022 (Amended 2022 Credit Agreement) to, among other items, eliminate the options for a second term loan draw and increase both the term loan and revolving credit facility to $650.0 million each, raising the total borrowing capacity to $1.3 billion. Aside from the increased borrowing capacity, the Amended 2022 Credit Agreement left the 2022 Credit Agreement terms largely unchanged. As of March 31, 2024, our total outstanding debt under the Amended 2022 Credit Agreement was $600.8 million, net of debt issuance costs, with borrowing availability of $650.0 million under the Amended 2022 Revolving Credit Facility.

The interest rate applicable to any loan under the Amended 2022 Credit Agreement is, at the company's option, either: (i) the applicable Secured Overnight Financing Rate plus an applicable margin for such loans, which ranges between 1.00% and 1.48%, based on the company's consolidated leverage ratio or (ii) the lender's base rate plus the applicable margin for such loans, which ranges between 0.00% and 0.38%, based on the company's consolidated leverage ratio.

The portions of deferred debt issuance costs related to the Amended 2022 Revolving Credit Facility are included in other current and non-current assets, and the portion of deferred debt issuance costs related to the Amended 2022 Term Facility is reported as a reduction to the carrying amount of the Amended 2022 Term Facility. Debt issuance costs related to the Amended 2022 Revolving Credit Facility are amortized on a straight-line basis to interest expense over the term of the Amended 2022 Credit Agreement. Debt issuance costs related to the Amended 2022 Term Facility are amortized to interest expense using the effective interest method over the term of the Amended 2022 Credit Agreement.

Private Placement Debt Offering

On October 26, 2020, we completed the issuance and sale of $350.0 million aggregate principal amount of 2.32% senior notes due October 26, 2030 (the 2030 Notes), in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. Proceeds were primarily used to repay a portion of the company's outstanding debt under the company's prior credit facility. Interest on the 2030 Notes is paid semi-annually on each October 30 and April 30 during the term of the 2030 Notes and at maturity, with the first interest payment date having occurred on April 30, 2021. As of March 31, 2024, our total outstanding debt, net of issuance costs, under the 2030 Notes was $348.6 million.

Compliance with Covenants

Each of the Amended 2022 Credit Agreement and the 2030 Notes include customary representations, warranties, and covenants, including financial covenants, that require us to maintain specified ratios of consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) to consolidated interest charges and consolidated funded indebtedness to consolidated EBITDA, which are evaluated on a quarterly basis. We were in compliance with these financial covenants as of March 31, 2024.
v3.24.1.u1
Acquisitions, Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Acquisitions, Goodwill and Other Intangible Assets Acquisitions, Goodwill, and Other Intangible Assets
2024 Acquisitions

We did not make any acquisitions during in the first three months of 2024.

Goodwill

The company has seven operating segments, which are presented as the following five reportable segments: Morningstar Data and Analytics, PitchBook, Morningstar Wealth, Morningstar Credit, and Morningstar Retirement. The company's operating segments also represent the company's reporting units to which goodwill is assigned. The company allocated goodwill by reporting unit in accordance with FASB ASC 350 Intangibles—Goodwill and Other (FASB ASC 350). Under this reporting unit structure, the consolidated goodwill balance was allocated based on each reporting unit's relative fair value at January 1, 2021. The company used a market approach and assigned goodwill to the reporting units. The following table shows the changes in our goodwill balances from December 31, 2023 to March 31, 2024:

 (in millions)Morningstar Data and AnalyticsPitchBookMorningstar WealthMorningstar CreditMorningstar RetirementTotal Reportable SegmentsCorporate and All OtherTotal
Balance as of December 31, 2023$605.5 $607.4 $94.2 $108.6 $93.5 $1,509.2 $69.6 $1,578.8 
Foreign currency translation(2.8)— (0.7)(1.1)— (4.6)(0.1)(4.7)
Balance as of March 31, 2024$602.7 $607.4 $93.5 $107.5 $93.5 $1,504.6 $69.5 $1,574.1 

Changes in the carrying amount of the company’s recorded goodwill are mainly the result of business acquisitions, divestitures, and the effect of foreign currency translations. In accordance with FASB ASC 350, the company does not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. When reviewing goodwill for impairment, we assess a number of qualitative factors to determine whether it is more likely than not that the fair value of our reporting units is less than their respective carrying values. Examples of qualitative factors that we assess include macroeconomic conditions affecting our reporting units, financial performance of our reporting units, market and competitive factors related to our reporting units, and other events specific to our reporting units. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we perform a quantitative impairment test. The quantitative impairment test compares the estimated fair value of the reporting unit to its carrying value, and recognizes an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. We determine the fair value of a reporting unit using a market approach. Determining the fair value of a reporting unit involves judgment and the use of significant estimates and assumptions, which include assumptions regarding the revenue growth rates and operating margins used to calculate estimated future cash flows, as well as revenue and earnings multiples of publicly traded companies whose services and markets are comparable.

We perform our annual impairment reviews in the fourth quarter or when impairment indicators and triggering events are identified. The company did not observe any events or changes in circumstances that would require an additional impairment review in the first quarter of 2024. Refer to Note 7 for detailed segment information.
Intangible Assets

The following table summarizes our intangible assets: 

 As of March 31, 2024As of December 31, 2023
(in millions)GrossAccumulated AmortizationNetWeighted Average Useful
 Life (years)		GrossAccumulated AmortizationNetWeighted Average Useful Life (years)
Customer-related assets$596.7 $(271.0)$325.7 14$601.7 $(263.8)$337.9 14
Technology-based assets314.0 (202.2)111.8 8315.3 (197.0)118.3 8
Intellectual property & other92.1 (66.2)25.9 893.2 (65.0)28.2 8
Total intangible assets$1,002.8 $(539.4)$463.4 12$1,010.2 $(525.8)$484.4 12
 
The following table summarizes our amortization expense related to intangible assets:

 Three months ended March 31,
(in millions)20242023
Amortization expense$17.7 $17.5 
 
We amortize intangible assets using the straight-line method over their estimated useful lives.

As of March 31, 2024, we expect intangible amortization expense for the remainder of 2024 and subsequent years to be as follows:

 (in millions)
Remainder of 2024 (April 1 through December 31)$47.3 
202556.7 
202652.9 
202745.6 
202841.7 
Thereafter219.2 
Total$463.4 

Our estimates of future amortization expense for intangible assets may be affected by future acquisitions, divestitures, changes in the estimated useful lives, impairments, and foreign currency translation.
v3.24.1.u1
Income Per Share
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Income Per Share Income (Loss) Per Share
The following table shows how we reconcile our net income (loss) and the number of shares used in computing basic and diluted net income (loss) per share:

 Three months ended March 31,
(in millions, except per share amounts)20242023
Basic net income (loss) per share:
Consolidated net income (loss)$64.2 $(7.6)
Weighted average common shares outstanding42.7 42.5 
Basic net income (loss) per share$1.50 $(0.18)
Diluted net income (loss) per share:
Consolidated net income (loss)$64.2 $(7.6)
Weighted average common shares outstanding42.7 42.5 
Net effect of dilutive stock awards (1)
0.3 — 
Weighted average common shares outstanding for computing diluted income per share43.0 42.5 
Diluted net income (loss) per share$1.49 $(0.18)
____________________________________________________________________________________________
(1) Potential common shares are not included in the computation of diluted earnings per share when a net loss exists as the effect would be an antidilutive per share amount.

During the periods presented, we have restricted stock units (RSUs), performance share awards, and market stock units (MSUs) that are excluded from our calculation of diluted earnings per share as their effect is antidilutive. The amount of these potential antidilutive shares was immaterial.
v3.24.1.u1
Revenue
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregation of Revenue

The following table presents our revenue disaggregated by revenue type. Sales and usage-based taxes are excluded from revenue.
Three months ended March 31,
(in millions)20242023
Revenue by Type: (1)
License-based $400.2 $364.0 
Asset-based77.0 65.3 
Transaction-based65.6 50.4 
Consolidated revenue$542.8 $479.7 
____________________________________________________________________________________________
(1) Starting with the quarter ended March 31, 2024, revenue from PitchBook media sales product was reclassified from license-based to transaction-based. Prior periods have not been restated to reflect the updated classifications.

License-based performance obligations are generally satisfied over time as the customer has access to the product or service during the term of the subscription license and the level of service is consistent during the contract period. License-based agreements typically have a term of 1 to 3 years and are accounted for as subscription services available to customers and not as a license under the accounting guidance.
Asset-based performance obligations are satisfied over time as the customer receives continuous access to a service for the term of the agreement. Asset-based arrangements typically have a term of 1 to 3 years. Asset-based fees represent variable consideration, and the customer does not make separate purchasing decisions that result in additional performance obligations. Significant changes in the underlying fund assets and significant disruptions in the market are evaluated to determine whether estimates of earned asset-based fees need to be revised for the current quarter. The timing of client asset reporting and the structure of certain contracts can result in a lag between market movements and the impact on earned revenue. An estimate of variable consideration is included in the initial transaction price only to the extent it is probable that a significant reversal in the amount of the revenue recognized will not occur. Estimates of asset-based fees are based on the most recently completed quarter and, as a result, it is unlikely a significant reversal of revenue would occur.

Transaction-based performance obligations are satisfied when the product or service is completed or delivered. Some transaction-based revenue includes revenue from surveillance services, which is recognized over time, as the customer has access to the service during the surveillance period.

Contract Liabilities

Our contract liabilities represent deferred revenue. We record contract liabilities when cash payments are received or due in advance of our performance, including amounts which may be refundable. The contract liabilities balance as of March 31, 2024 had a net increase of $45.9 million, primarily driven by cash payments received or payable in advance of satisfying our performance obligations. We recognized $233.1 million of revenue in the three months ended March 31, 2024 that was included in the contract liabilities balance as of December 31, 2023.

We expect to recognize revenue related to our contract liabilities, including future billings, for the remainder of 2024 and subsequent years as follows:

(in millions)As of March 31, 2024
Remainder of 2024 (April 1 through December 31)$869.1 
2025380.5 
2026121.2 
202718.0 
20286.5 
Thereafter22.7 
Total$1,418.0 

The aggregate amount of revenue we expect to recognize for the remainder of 2024 and subsequent years is higher than our contract liability balance of $589.9 million as of March 31, 2024. The difference represents the value of future obligations for signed contracts that have yet to be billed.

The table above does not include variable consideration for unsatisfied performance obligations related to certain of our license-based, asset-based, and transaction-based contracts as of March 31, 2024. We are applying the optional exemption available under ASC Topic 606, as the variable consideration relates to these unsatisfied performance obligations being fulfilled as a series. The performance obligations related to these contracts are expected to be satisfied over the next 1 to 3 years as services are provided to the client. For license-based contracts, the consideration received for services performed is based on the number of future users, which is not known until the services are performed. The variable consideration for this revenue can be affected by the number of user licenses, which cannot be reasonably estimated. For asset-based contracts, the consideration received for services performed is based on future asset values, which are not known until the services are performed. The variable consideration for this revenue can be affected by changes in the underlying value of fund assets due to client redemptions, additional investments, or movements in the market. For transaction-based contracts, the consideration received for most Internet advertising services performed is based on the number of impressions, which is not known until the impressions are created. The variable consideration for this revenue can be affected by the timing and quantity of impressions in any given period and cannot be reasonably estimated.
As of March 31, 2024, the table above also does not include revenue for unsatisfied performance obligations related to certain of our license-based and transaction-based contracts with durations of one year or less since we are applying the optional exemption under ASC Topic 606. For certain license-based contracts, the remaining performance obligation is expected to be less than one year based on the corresponding subscription terms or the existence of cancellation terms that may be exercised causing the contract term to be less than one year from March 31, 2024. For transaction-based contracts, such as new credit rating issuances and Morningstar-sponsored conferences, the related performance obligations are expected to be satisfied within the next 12 months.

Contract Assets

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

The following table summarizes our contract assets balance:

(in millions)As of March 31, 2024As of December 31, 2023
Accounts receivable, less allowance for credit losses$326.2 $343.9 
Deferred commissions71.6 71.2 
Total contract assets$397.8 $415.1 
v3.24.1.u1
Segment and Geographical Area Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographical Area Information Segment and Geographical Area Information
 
Segment Information

Our segments are generally organized around the company's products offerings. The company concluded that it has seven operating segments which are presented as the following five reportable segments:

•Morningstar Data and Analytics
•PitchBook
•Morningstar Wealth
•Morningstar Credit
•Morningstar Retirement

The operating segments of Morningstar Sustainalytics and Morningstar Indexes do not individually meet the quantitative segment reporting thresholds and have been combined and presented as part of Corporate and All Other, which is not a reportable segment. Corporate and All Other provides a reconciliation between revenue from our total reportable segments and consolidated revenue amounts.

Morningstar Data and Analytics provides investors comprehensive data, research and insights, and investment analysis to empower investment decision-making. Morningstar Data and Analytics includes product areas such as Morningstar Data, Morningstar Direct, and Morningstar Advisor Workstation.

PitchBook provides investors with access to a broad collection of data and research covering the private capital markets, including venture capital, private equity, private credit and bank loans, and merger and acquisition (M&A) activities. Investors can also access Morningstar's data and research on public equities.

Morningstar Wealth brings together our model portfolios and wealth platform; practice and portfolio management software for registered investment advisers; data aggregation and enrichment capabilities; and our individual investor platform. Morningstar Wealth includes the Investment Management product area.

Morningstar Credit provides investors with credit ratings, research, data, and credit analytics solutions that contribute to the transparency of international and domestic credit markets. Morningstar Credit includes the Morningstar DBRS product area and the Morningstar Credit data and credit analytics product areas.

Morningstar Retirement offers products designed to help individuals reach their retirement goals. Its offerings include managed retirement accounts, fiduciary services, Morningstar Lifetime Allocation funds, and custom models.
FASB ASC 280 establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM), in deciding how to allocate resources and assess performance. The company's chief executive officer, who is considered to be its CODM, reviews financial information presented on an operating segment basis for purposes of making operating decisions and assessing financial performance.

The CODM allocates resources and assesses performance of segments based on segment revenue as well as Adjusted Operating Income. Segment Adjusted Operating Income excludes intangible amortization, M&A-related expenses (including M&A-related earn-outs), and items related to the significant reduction and shift of the company's operations in China, such as severance and personnel expenses, transformation costs, and asset impairment costs. The CODM does not consider these items for the purposes of making decisions to allocate resources among segments or to assess segment performance. Although the amounts are excluded from segment Adjusted Operating Income, they are included in reported consolidated operating income and are included in the reconciliation to consolidated results. Expenses presented as part of the company's segments include both direct costs and allocations of shared costs. Shared costs include technology, investment research, sales, facilities, and marketing. These allocations are based on estimated utilization of shared resources and other factors. Adjusted Operating Income is the reported measure that the company believes is most consistent with those used in measuring the corresponding amount in the consolidated financial statements.

The CODM does not review any information regarding total assets on a segment basis. Operating segments do not record intersegment revenues; therefore, there is none to be reported.
The following tables present information about the company’s reportable segments for the three months ended March 31, 2024 and 2023, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Prior period segment information is presented on a comparable basis to the basis on which current period segment information is presented and reviewed by the CODM.

Three months ended March 31,
(in millions)20242023
Revenue:
Morningstar Data and Analytics$196.7 $179.8 
PitchBook147.6 131.1 
Morningstar Wealth59.0 54.9 
Morningstar Credit60.3 46.8 
Morningstar Retirement28.4 25.2 
Total Reportable Segments$492.0 $437.8 
Corporate and All Other (1)
50.8 41.9 
Total Revenue$542.8 $479.7 
Adjusted Operating Income (Loss):
Morningstar Data and Analytics$91.2 $80.9 
PitchBook40.0 30.4 
Morningstar Wealth(5.6)(14.6)
Morningstar Credit12.3 (4.0)
Morningstar Retirement14.2 11.2 
Total Reportable Segments$152.1 $103.9 
Less reconciling items to Operating Income:
Corporate and All Other (2)
$(41.3)$(52.1)
Intangible amortization expense (3)
(17.7)(17.5)
M&A-related expenses (4)
(0.5)(4.2)
M&A-related earn-outs (5)
— — 
Severance and personnel expenses (6)
— (1.1)
Transformation costs (6)
— (4.2)
Asset impairment costs (6)
— (0.3)
Operating Income92.6 24.5 
Non-operating expense, net(5.6)(22.4)
Equity in investments of unconsolidated entities(1.5)(1.3)
Income before income taxes$85.5 $0.8 
____________________________________________________________________________________________
(1) Corporate and All Other provides a reconciliation between revenue from our Total Reportable Segments and consolidated revenue amounts. Corporate and All Other includes Morningstar Sustainalytics and Morningstar Indexes as sources of revenues. Revenue from Morningstar Sustainalytics was $30.8 million and $27.3 million for the three months ended March 31, 2024 and 2023, respectively. Revenue from Morningstar Indexes was $20.0 million and $14.6 million for the three months ended March 31, 2024 and 2023, respectively.

(2) Corporate and All Other includes unallocated corporate expenses of $40.9 million and $36.1 million for the three months ended March 31, 2024 and 2023, respectively, as well as adjusted operating income (loss) from Morningstar Sustainalytics and Morningstar Indexes. Unallocated corporate expenses include certain finance, human resources, legal, marketing, and other management-related costs that are not considered when segment performance is evaluated.
(3) Excludes finance lease amortization expense of $0.3 million and $0.1 million for the three months ended March 31, 2024 and 2023, respectively.

(4) Reflects non-recurring expenses related to M&A activity including pre-deal due diligence, transaction costs, and post-close integration costs.

(5) Reflects the impact of M&A-related earn-outs included in operating expense.

(6) Reflects costs associated with the significant reduction of the company's operations in Shenzhen, China and the shift of work related to its global business functions to other Morningstar locations.

Severance and personnel expenses include severance charges, incentive payments related to early signing of severance agreements, transition bonuses, and stock-based compensation related to the accelerated vesting of RSU and MSU awards. In addition, the reversal of accrued sabbatical liabilities is included in this category.

Transformation costs include professional fees and the temporary duplication of headcount. As the company hired replacement roles in other markets and shifted capabilities, it employed certain Shenzhen-based staff through the transition period, which resulted in elevated compensation costs on a temporary basis.

Asset impairment costs include the write-off or accelerated depreciation of fixed assets in the Shenzhen, China office that were not redeployed, in addition to lease abandonment costs as the company downsized its office space prior to the lease termination date.

The following tables present segment revenue disaggregated by revenue type:

Three months ended March 31, 2024
(in millions)Morningstar Data and AnalyticsPitchBookMorningstar WealthMorningstar CreditMorningstar RetirementTotal Reportable Segments
Corporate and All Other (7)
Total
Revenue by Type: (8)
License-based$196.7 $145.6 $20.5 $4.2 $0.5 $367.5 $32.7 $400.2 
Asset-based— — 33.6 — 27.9 61.5 15.5 $77.0 
Transaction-based— 2.0 4.9 56.1 — 63.0 2.6 $65.6 
Total$196.7 $147.6 $59.0 $60.3 $28.4 $492.0 $50.8 $542.8 
Three months ended March 31, 2023
(in millions)Morningstar Data and AnalyticsPitchBookMorningstar WealthMorningstar CreditMorningstar RetirementTotal Reportable Segments
Corporate and All Other (7)
Total
Revenue by Type: (8)
License-based$179.8 $131.1 $20.4 $2.8 $0.4 $334.5 $29.5 $364.0 
Asset-based— — 29.6 — 24.8 54.4 10.9 $65.3 
Transaction-based— — 4.9 44.0 — 48.9 1.5 $50.4 
Total$179.8 $131.1 $54.9 $46.8 $25.2 $437.8 $41.9 $479.7 
____________________________________________________________________________________________
(7) Corporate and All Other provides a reconciliation between revenue from our Total Reportable Segments and consolidated revenue amounts. Corporate and All Other includes Morningstar Sustainalytics and Morningstar Indexes as sources of revenues.

(8) Starting with the quarter ended March 31, 2024, revenue from PitchBook media sales product was reclassified from license-based to transaction-based. Prior periods have not been restated to reflect the updated classifications.
Geographical Area Information

The tables below summarize our revenue, long-lived assets, which includes property, equipment, and capitalized software, net, and operating lease assets by geographical area:
Revenue by geographical areaThree months ended March 31,
(in millions)20242023
United States$390.9 $347.3 
Asia12.7 12.1 
Australia15.0 14.4 
Canada32.6 27.3 
Continental Europe49.7 43.1 
United Kingdom38.9 33.1 
Other3.0 2.4 
Total International151.9 132.4 
Consolidated revenue$542.8 $479.7 
Property, equipment, and capitalized software, net by geographical area
(in millions)As of March 31, 2024As of December 31, 2023
United States$184.3 $178.5 
Asia8.7 9.9 
Australia1.6 1.9 
Canada3.1 3.6 
Continental Europe6.0 6.5 
United Kingdom7.0 7.2 
Other0.1 0.1 
Total International26.5 29.2 
Consolidated property, equipment, and capitalized software, net$210.8 $207.7 

Operating lease assets by geographical area
(in millions)As of March 31, 2024As of December 31, 2023
United States$96.6 $100.7 
Asia14.8 16.5 
Australia3.0 3.2 
Canada8.2 8.2 
Continental Europe17.6 18.1 
United Kingdom16.1 16.9 
Other0.2 0.3 
Total International59.9 63.2 
Consolidated operating lease assets$156.5 $163.9 
v3.24.1.u1
Fair Value Measurement of Investments
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
As of March 31, 2024 and December 31, 2023, our investment balances totaled $55.4 million and $51.1 million, respectively. We classify our investments into two categories: equity investments and debt securities. We further classify our debt securities into available-for-sale, held-to-maturity, and trading securities. Our investment portfolio consists of stocks, bonds, options, mutual funds, money market funds, or exchange-traded products that replicate the model portfolios and strategies created by Morningstar. These investment accounts may also include exchange-traded products where Morningstar is an index provider. As of March 31, 2024, all investments in our investment portfolio have valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access, and, therefore, are classified as Level 1 within the fair value hierarchy. We recognize unrealized holding gains or losses within "Other income, net" on our Condensed Consolidated Statements of Income.
v3.24.1.u1
Investments in Unconsolidated Entities
 3 Months Ended
Mar. 31, 2024
Investments in Unconsolidated Entities [Abstract]  
Equity Method Investments and Joint Ventures Disclosure Investments in Unconsolidated Entities
As of March 31, 2024 and December 31, 2023, our investment in unconsolidated entities balance totaled $96.1 million and $100.2 million, respectively. We have investments in both equity method investments and investments in equity securities with and without a readily determinable fair value.

The carrying amount of other investments in unconsolidated entities without a readily determinable fair value was $50.7 million and $49.9 million as of March 31, 2024 and December 31, 2023, respectively. We did not record any material adjustments or impairment losses in the first three months of 2024 or 2023.

On January 27, 2023, we entered into a Termination Agreement (the Termination Agreement) with Morningstar Japan K.K. (now known as SBI Global Asset Management Co., Ltd. (Wealth Advisors)), and a Tender Offer Agreement (the Tender Offer Agreement) with SBI Global Asset Management Co., Ltd. (now known as SBI Asset Management Group Co., Ltd. (SBI)).

Pursuant to the Termination Agreement, Wealth Advisors agreed to cease use of the Morningstar brand and Morningstar and Wealth Advisors agreed to terminate the License Agreement originally entered into in 1998. As consideration for the transaction, Morningstar agreed to pay Wealth Advisors 8 billion Japanese yen upon the termination of the license agreement and the achievement of certain conditions related primarily to the termination of the use of the Morningstar brand by Wealth Advisors’ customers.

On April 6, 2023, we made the first cash payment of 6 billion Japanese yen ($45.1 million) and on April 19, 2023, we made the second and final cash payment of 2 billion Japanese yen ($14.8 million), pursuant to the Termination Agreement. The expense related to the Termination Agreement is recorded within "Expense from equity method transaction, net" in our Condensed Consolidated Statements of Income (Loss) for the three months ended March 31, 2023.

As part of this transaction, pursuant to the Tender Offer Agreement, Morningstar agreed to tender up to 10 million shares in Wealth Advisors to SBI. The tender offer closed on February 28, 2023, and SBI purchased 8,040,600 shares of Wealth Advisors from Morningstar, resulting in net proceeds of $26.2 million and a pre-tax gain of $18.4 million. The pre-tax gain is recorded within "Expense from equity method transaction, net" in our Condensed Consolidated Statements of Income (Loss) for the three months ended March 31, 2023.

Subsequent to the tender offer, the company's ownership percentage in Wealth Advisors decreased to 13.2% from 22.1%, and as a result, we no longer account for our investment in Wealth Advisors as an equity method investment. Each reporting period, we remeasure our remaining investment in Wealth Advisors, an equity security with a readily determinable value, at fair value and recognize unrealized holding gains or losses within "Other income, net" on our Condensed Consolidated Statements of Income. During the first quarter of 2023, we recognized an unrealized holding gain of $31.2 million, which is recorded within "Expense from equity method transaction, net" in our Condensed Consolidated Statement of Income (Loss) for the three months ended March 31, 2023.
v3.24.1.u1
Leases
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases Leases
We lease office space and certain equipment under various operating and finance leases, with most of our lease portfolio consisting of operating leases for office space.

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

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

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

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

Our leases have remaining lease terms of approximately 1 year to 11 years, which may include the option to extend the lease when it is reasonably certain we will exercise that option. We do not have lease agreements with residual value guarantees, sale leaseback terms, or material restrictive covenants.

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

Our operating lease expense for the three months ended March 31, 2024 was $10.4 million, compared with $11.7 million for the three months ended March 31, 2023. Charges related to our operating leases that are variable and, therefore, not included in the measurement of the lease liabilities, were $3.2 million for the three months ended March 31, 2024, compared with $4.1 million for the three months ended March 31, 2023. We made lease payments of $10.7 million during the three months ended March 31, 2024, compared with $11.3 million during the three months ended March 31, 2023.

The following table shows our minimum future lease commitments due in each of the next five years and thereafter for operating leases:

Minimum Future Lease Commitments (in millions)Operating Leases
Remainder of 2024 (April 1 through December 31)$32.7 
202536.4 
202638.9 
202731.3 
202824.6 
Thereafter36.4 
Total minimum lease commitments200.3 
Adjustment for discount to present value21.8 
Present value of lease liabilities
$178.5 
The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates for our operating leases:
As of March 31, 2024
Weighted-average remaining lease term (in years)5.6
Weighted-average discount rate3.9 %
v3.24.1.u1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
 
Stock-Based Compensation Plans
 
Our employees and our non-employee directors are eligible for awards under the Morningstar Amended and Restated 2011 Stock Incentive Plan, which provides for a variety of stock-based awards, including stock options, RSUs, performance share awards, MSUs, and restricted stock.

The following table summarizes the stock-based compensation expense included in each of our operating expense categories:
Three months ended March 31,
(in millions)20242023
Cost of revenue$4.6 $5.0 
Sales and marketing1.9 1.6 
General and administrative4.9 5.6 
Total stock-based compensation expense$11.4 $12.2 

As of March 31, 2024, the total unrecognized stock-based compensation cost related to outstanding RSUs, performance share awards, and MSUs expected to vest was $78.8 million, which we expect to recognize over a weighted average period of 24 months.
v3.24.1.u1
Income Taxes
 3 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Effective Tax Rate

The following table shows our effective tax rate for the three months ended March 31, 2024 and March 31, 2023:

 Three months ended March 31,
(in millions)20242023
Income before income taxes and equity in investments of unconsolidated entities$87.0 $2.1 
Equity in investments of unconsolidated entities(1.5)(1.3)
Income before income taxes$85.5 $0.8 
Income tax expense$21.3 $8.4 
Effective tax rate24.9 %NMF
___________________________________________________________________________________________
NMF — not meaningful

Our effective tax rate in the first quarter of 2024 was 24.9%. Our prior-year period effective tax rate was not meaningful due to the low level of pretax income in the prior-year period.
In October 2021, the Organization for Economic Co-operation and Development (OECD) agreed to a two-pillar approach to global taxation focusing on global profit allocation (Pillar One) and a global minimum tax rate (Pillar Two). In December 2022, the European Union member states agreed to implement the OECD’s global corporate minimum tax rate of 15% under Pillar Two which became effective in January 2024. Other countries are also considering changes to their tax laws to adopt certain parts of the OECD’s proposals. This legislation represents a significant change in the international tax regime and could result in increases to our effective tax rate as a result of the imposition of minimum taxes. Pillar Two did not have a material impact to our consolidated financial statements as of March 31, 2024. We are continuing to monitor developments and administrative guidance in addition to evaluating the potential impact of Pillar Two on our consolidated financial statements for future periods.

Unrecognized Tax Benefits

The table below provides information concerning our gross unrecognized tax benefits as of March 31, 2024 and December 31, 2023, as well as the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized.

(in millions)As of March 31, 2024As of December 31, 2023
Gross unrecognized tax benefits$13.4 $13.0 
Gross unrecognized tax benefits that would affect income tax expense$13.4 $13.0 
Decrease in income tax expense upon recognition of gross unrecognized tax benefits$13.1 $12.8 

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

Liabilities for Unrecognized Tax Benefits (in millions)As of March 31, 2024As of December 31, 2023
Current liability$7.5 $6.2 
Non-current liability7.6 8.3 
Total liability for unrecognized tax benefits$15.1 $14.5 

Because we conduct business globally, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. We are currently under audit by federal, state, and local tax authorities in the U.S. as well as tax authorities in certain non-U.S. jurisdictions. It is likely that the examination phase of some of these federal, state, local, and non-U.S. audits will conclude in 2024. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits.

Approximately 76% of our cash, cash equivalents, and investments balance as of March 31, 2024 was held by our operations outside of the United States. We generally consider our U.S. directly-owned foreign subsidiary earnings to be permanently reinvested. 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.

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, which increases 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 that period.
v3.24.1.u1
Contingencies
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies
We record accrued liabilities for litigation, regulatory, and other business matters when those matters represent loss contingencies that are both probable and estimable. In these cases, there may be an exposure to loss in excess of any amounts accrued. Unless a loss contingency is both probable and estimable, we do not establish an accrued liability. As litigation, regulatory, or other business matters develop, we evaluate on an ongoing basis whether such matters present a loss contingency that is probable and estimable.

Data Audits and Reviews

In our global data business, we include in our products, or directly redistribute to our customers, data and information licensed from third-party vendors. Our compliance with the terms of these licenses is reviewed internally and is also subject to audit by the third-party vendors. At any given time, we may be undergoing several such internal reviews and third-party vendor audits, and the results and findings may indicate that we may be required to make a payment for prior data usage. Due to a lack of available information and data, as well as potential variations of any audit or internal review findings, we generally are not able to reasonably estimate a possible loss, or range of losses, for these matters. In situations where more information or specific areas subject to audit are available, we may be able to estimate a potential range of losses. While we cannot predict the outcome of these processes, we do not anticipate they will have a material adverse effect on our business, operating results, or financial position.

Ratings and Regulatory Matters

Our ratings and related research activities, including credit ratings, environmental, social, and governance (ESG) ratings, managed investment, and equity ratings, are or may in the future become subject to regulation or increased scrutiny from executive, legislative, regulatory, and private parties. As a result, those activities may be subject to governmental, regulatory, and legislative investigations, regulatory examinations in the ordinary course of business, subpoenas, and other forms of legal process, which may lead to claims and litigation that are based on these ratings and related research activities. Our regulated businesses are generally subject to periodic reviews, inspections, examinations, and investigations by regulators in the jurisdictions in which they operate, any of which may result in claims, legal proceedings, assessments, fines, penalties, disgorgement, or restrictions on business activities. While it is difficult to predict the outcome of any particular investigation or proceeding, we do not believe the result of any of these matters will have a material adverse effect on our business, operating results, or financial position.

Other Matters

We are involved from time to time in commercial disputes and legal proceedings that arise in the normal course of our business. While it is difficult to predict the outcome of any particular dispute or proceeding, we do not believe the result of any of these matters will have a material adverse effect on our business, operating results, or financial position.
v3.24.1.u1
Share Repurchase Program
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Treasury Stock Share Repurchase Program
 
On December 6, 2022, the board of directors approved a share repurchase program that authorizes the company to repurchase up to $500.0 million in shares of the company's outstanding common stock, effective January 1, 2023. This authorization replaced the then-existing share repurchase program and expires on December 31, 2025. Under this authorization, 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.

For the three months ended March 31, 2024, we did not repurchase any shares under the share repurchase program. As of March 31, 2024, we have $498.6 million available for future repurchases under the current share repurchase program.
v3.24.1.u1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Recent Accounting Pronouncements Policy
v3.24.1.u1
Fair Value Measurements (Policies)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Investments- Debt and Equity Securities Policy We classify our investments into two categories: equity investments and debt securities. We further classify our debt securities into available-for-sale, held-to-maturity, and trading securities.
v3.24.1.u1
Leases, Codification Topic 842 (Policies)
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Lessee, Leases
We lease office space and certain equipment under various operating and finance leases, with most of our lease portfolio consisting of operating leases for office space.

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

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

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

For initial measurement of the present value of lease payments and for subsequent measurement of lease modifications, we are required to use the rate implicit in the lease, if available. However, as most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is a collateralized rate. To apply the incremental borrowing rate, we used a portfolio approach and grouped leases based on similar lease terms in a manner whereby we reasonably expect that the application does not differ materially from a lease-by-lease approach.
v3.24.1.u1
Credit Arrangements (Tables)
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Summary of Total Debt and Long-term Debt
The following table summarizes our debt as of March 31, 2024 and December 31, 2023:

(in millions)As of March 31, 2024As of December 31, 2023
Amended 2022 Term Facility, net of unamortized debt issuance costs of $0.5 million and $0.5 million, respectively$600.8 $608.9 
Amended 2022 Revolving Credit Facility— 15.0 
2.32% Senior Notes due October 26, 2030, net of unamortized debt issuance costs of $1.4 million and $1.5 million, respectively
348.6 348.5 
Total debt$949.4 $972.4 
v3.24.1.u1
Acquisitions, Goodwill and Other Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
 (in millions)Morningstar Data and AnalyticsPitchBookMorningstar WealthMorningstar CreditMorningstar RetirementTotal Reportable SegmentsCorporate and All OtherTotal
Balance as of December 31, 2023$605.5 $607.4 $94.2 $108.6 $93.5 $1,509.2 $69.6 $1,578.8 
Foreign currency translation(2.8)— (0.7)(1.1)— (4.6)(0.1)(4.7)
Balance as of March 31, 2024$602.7 $607.4 $93.5 $107.5 $93.5 $1,504.6 $69.5 $1,574.1 
Schedule of Intangible Assets
The following table summarizes our intangible assets: 

 As of March 31, 2024As of December 31, 2023
(in millions)GrossAccumulated AmortizationNetWeighted Average Useful
 Life (years)		GrossAccumulated AmortizationNetWeighted Average Useful Life (years)
Customer-related assets$596.7 $(271.0)$325.7 14$601.7 $(263.8)$337.9 14
Technology-based assets314.0 (202.2)111.8 8315.3 (197.0)118.3 8
Intellectual property & other92.1 (66.2)25.9 893.2 (65.0)28.2 8
Total intangible assets$1,002.8 $(539.4)$463.4 12$1,010.2 $(525.8)$484.4 12
Schedule of Intangible Asset, Amortization Expense
The following table summarizes our amortization expense related to intangible assets:

 Three months ended March 31,
(in millions)20242023
Amortization expense$17.7 $17.5 
Schedule of Expected Amortization Expense
As of March 31, 2024, we expect intangible amortization expense for the remainder of 2024 and subsequent years to be as follows:

 (in millions)
Remainder of 2024 (April 1 through December 31)$47.3 
202556.7 
202652.9 
202745.6 
202841.7 
Thereafter219.2 
Total$463.4 
v3.24.1.u1
Income Per Share (Tables)
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table shows how we reconcile our net income (loss) and the number of shares used in computing basic and diluted net income (loss) per share:

 Three months ended March 31,
(in millions, except per share amounts)20242023
Basic net income (loss) per share:
Consolidated net income (loss)$64.2 $(7.6)
Weighted average common shares outstanding42.7 42.5 
Basic net income (loss) per share$1.50 $(0.18)
Diluted net income (loss) per share:
Consolidated net income (loss)$64.2 $(7.6)
Weighted average common shares outstanding42.7 42.5 
Net effect of dilutive stock awards (1)
0.3 — 
Weighted average common shares outstanding for computing diluted income per share43.0 42.5 
Diluted net income (loss) per share$1.49 $(0.18)
v3.24.1.u1
Revenue (Tables)
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table presents our revenue disaggregated by revenue type. Sales and usage-based taxes are excluded from revenue.
Three months ended March 31,
(in millions)20242023
Revenue by Type: (1)
License-based $400.2 $364.0 
Asset-based77.0 65.3 
Transaction-based65.6 50.4 
Consolidated revenue$542.8 $479.7 
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
We expect to recognize revenue related to our contract liabilities, including future billings, for the remainder of 2024 and subsequent years as follows:

(in millions)As of March 31, 2024
Remainder of 2024 (April 1 through December 31)$869.1 
2025380.5 
2026121.2 
202718.0 
20286.5 
Thereafter22.7 
Total$1,418.0 
Summary of Contract Assets and Change in Deferred Commissions
The following table summarizes our contract assets balance:

(in millions)As of March 31, 2024As of December 31, 2023
Accounts receivable, less allowance for credit losses$326.2 $343.9 
Deferred commissions71.6 71.2 
Total contract assets$397.8 $415.1 
v3.24.1.u1
Segment and Geographical Area Information (Tables)
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
The tables below summarize our revenue, long-lived assets, which includes property, equipment, and capitalized software, net, and operating lease assets by geographical area:
Revenue by geographical areaThree months ended March 31,
(in millions)20242023
United States$390.9 $347.3 
Asia12.7 12.1 
Australia15.0 14.4 
Canada32.6 27.3 
Continental Europe49.7 43.1 
United Kingdom38.9 33.1 
Other3.0 2.4 
Total International151.9 132.4 
Consolidated revenue$542.8 $479.7 
Property, equipment, and capitalized software, net by geographical area
(in millions)As of March 31, 2024As of December 31, 2023
United States$184.3 $178.5 
Asia8.7 9.9 
Australia1.6 1.9 
Canada3.1 3.6 
Continental Europe6.0 6.5 
United Kingdom7.0 7.2 
Other0.1 0.1 
Total International26.5 29.2 
Consolidated property, equipment, and capitalized software, net$210.8 $207.7 

Operating lease assets by geographical area
(in millions)As of March 31, 2024As of December 31, 2023
United States$96.6 $100.7 
Asia14.8 16.5 
Australia3.0 3.2 
Canada8.2 8.2 
Continental Europe17.6 18.1 
United Kingdom16.1 16.9 
Other0.2 0.3 
Total International59.9 63.2 
Consolidated operating lease assets$156.5 $163.9 
Schedule of Segment Reporting Information, by Segment
The following tables present information about the company’s reportable segments for the three months ended March 31, 2024 and 2023, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Prior period segment information is presented on a comparable basis to the basis on which current period segment information is presented and reviewed by the CODM.

Three months ended March 31,
(in millions)20242023
Revenue:
Morningstar Data and Analytics$196.7 $179.8 
PitchBook147.6 131.1 
Morningstar Wealth59.0 54.9 
Morningstar Credit60.3 46.8 
Morningstar Retirement28.4 25.2 
Total Reportable Segments$492.0 $437.8 
Corporate and All Other (1)
50.8 41.9 
Total Revenue$542.8 $479.7 
Adjusted Operating Income (Loss):
Morningstar Data and Analytics$91.2 $80.9 
PitchBook40.0 30.4 
Morningstar Wealth(5.6)(14.6)
Morningstar Credit12.3 (4.0)
Morningstar Retirement14.2 11.2 
Total Reportable Segments$152.1 $103.9 
Less reconciling items to Operating Income:
Corporate and All Other (2)
$(41.3)$(52.1)
Intangible amortization expense (3)
(17.7)(17.5)
M&A-related expenses (4)
(0.5)(4.2)
M&A-related earn-outs (5)
— — 
Severance and personnel expenses (6)
— (1.1)
Transformation costs (6)
— (4.2)
Asset impairment costs (6)
— (0.3)
Operating Income92.6 24.5 
Non-operating expense, net(5.6)(22.4)
Equity in investments of unconsolidated entities(1.5)(1.3)
Income before income taxes$85.5 $0.8 
____________________________________________________________________________________________
(1) Corporate and All Other provides a reconciliation between revenue from our Total Reportable Segments and consolidated revenue amounts. Corporate and All Other includes Morningstar Sustainalytics and Morningstar Indexes as sources of revenues. Revenue from Morningstar Sustainalytics was $30.8 million and $27.3 million for the three months ended March 31, 2024 and 2023, respectively. Revenue from Morningstar Indexes was $20.0 million and $14.6 million for the three months ended March 31, 2024 and 2023, respectively.

(2) Corporate and All Other includes unallocated corporate expenses of $40.9 million and $36.1 million for the three months ended March 31, 2024 and 2023, respectively, as well as adjusted operating income (loss) from Morningstar Sustainalytics and Morningstar Indexes. Unallocated corporate expenses include certain finance, human resources, legal, marketing, and other management-related costs that are not considered when segment performance is evaluated.
(3) Excludes finance lease amortization expense of $0.3 million and $0.1 million for the three months ended March 31, 2024 and 2023, respectively.

(4) Reflects non-recurring expenses related to M&A activity including pre-deal due diligence, transaction costs, and post-close integration costs.

(5) Reflects the impact of M&A-related earn-outs included in operating expense.

(6) Reflects costs associated with the significant reduction of the company's operations in Shenzhen, China and the shift of work related to its global business functions to other Morningstar locations.

Severance and personnel expenses include severance charges, incentive payments related to early signing of severance agreements, transition bonuses, and stock-based compensation related to the accelerated vesting of RSU and MSU awards. In addition, the reversal of accrued sabbatical liabilities is included in this category.

Transformation costs include professional fees and the temporary duplication of headcount. As the company hired replacement roles in other markets and shifted capabilities, it employed certain Shenzhen-based staff through the transition period, which resulted in elevated compensation costs on a temporary basis.

Asset impairment costs include the write-off or accelerated depreciation of fixed assets in the Shenzhen, China office that were not redeployed, in addition to lease abandonment costs as the company downsized its office space prior to the lease termination date.
Disaggregation of Revenue by Reportable Segment
The following tables present segment revenue disaggregated by revenue type:

Three months ended March 31, 2024
(in millions)Morningstar Data and AnalyticsPitchBookMorningstar WealthMorningstar CreditMorningstar RetirementTotal Reportable Segments
Corporate and All Other (7)
Total
Revenue by Type: (8)
License-based$196.7 $145.6 $20.5 $4.2 $0.5 $367.5 $32.7 $400.2 
Asset-based— — 33.6 — 27.9 61.5 15.5 $77.0 
Transaction-based— 2.0 4.9 56.1 — 63.0 2.6 $65.6 
Total$196.7 $147.6 $59.0 $60.3 $28.4 $492.0 $50.8 $542.8 
Three months ended March 31, 2023
(in millions)Morningstar Data and AnalyticsPitchBookMorningstar WealthMorningstar CreditMorningstar RetirementTotal Reportable Segments
Corporate and All Other (7)
Total
Revenue by Type: (8)
License-based$179.8 $131.1 $20.4 $2.8 $0.4 $334.5 $29.5 $364.0 
Asset-based— — 29.6 — 24.8 54.4 10.9 $65.3 
Transaction-based— — 4.9 44.0 — 48.9 1.5 $50.4 
Total$179.8 $131.1 $54.9 $46.8 $25.2 $437.8 $41.9 $479.7 
____________________________________________________________________________________________
(7) Corporate and All Other provides a reconciliation between revenue from our Total Reportable Segments and consolidated revenue amounts. Corporate and All Other includes Morningstar Sustainalytics and Morningstar Indexes as sources of revenues.

(8) Starting with the quarter ended March 31, 2024, revenue from PitchBook media sales product was reclassified from license-based to transaction-based. Prior periods have not been restated to reflect the updated classifications.
v3.24.1.u1
Leases (Tables)
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Assets and Liabilities, Lessee
The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates for our operating leases:
As of March 31, 2024
Weighted-average remaining lease term (in years)5.6
Weighted-average discount rate3.9 %
Lessee, Operating Lease, Liability, Maturity
The following table shows our minimum future lease commitments due in each of the next five years and thereafter for operating leases:

Minimum Future Lease Commitments (in millions)Operating Leases
Remainder of 2024 (April 1 through December 31)$32.7 
202536.4 
202638.9 
202731.3 
202824.6 
Thereafter36.4 
Total minimum lease commitments200.3 
Adjustment for discount to present value21.8 
Present value of lease liabilities
$178.5 
v3.24.1.u1
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
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)20242023
Cost of revenue$4.6 $5.0 
Sales and marketing1.9 1.6 
General and administrative4.9 5.6 
Total stock-based compensation expense$11.4 $12.2 
v3.24.1.u1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
The following table shows our effective tax rate for the three months ended March 31, 2024 and March 31, 2023:

 Three months ended March 31,
(in millions)20242023
Income before income taxes and equity in investments of unconsolidated entities$87.0 $2.1 
Equity in investments of unconsolidated entities(1.5)(1.3)
Income before income taxes$85.5 $0.8 
Income tax expense$21.3 $8.4 
Effective tax rate24.9 %NMF
Schedule of Gross Unrecognized Tax Benefits
The table below provides information concerning our gross unrecognized tax benefits as of March 31, 2024 and December 31, 2023, as well as the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized.

(in millions)As of March 31, 2024As of December 31, 2023
Gross unrecognized tax benefits$13.4 $13.0 
Gross unrecognized tax benefits that would affect income tax expense$13.4 $13.0 
Decrease in income tax expense upon recognition of gross unrecognized tax benefits$13.1 $12.8 
Schedule of Liabilities for Unrecognized Tax Benefits
Our Unaudited Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits.

Liabilities for Unrecognized Tax Benefits (in millions)As of March 31, 2024As of December 31, 2023
Current liability$7.5 $6.2 
Non-current liability7.6 8.3 
Total liability for unrecognized tax benefits$15.1 $14.5 
v3.24.1.u1
Credit Arrangements - Schedule of Long-term Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2022
May 06, 2022
Oct. 26, 2020
Debt Instrument [Line Items]          
Long-term debt $ 917.3 $ 940.3      
Long-term debt 949.4 972.4      
Debt Instrument, Interest Rate, Stated Percentage         2.32%
Maximum borrowing capacity     $ 650.0    
Medium-term Notes [Member] | Term Loan Facility [Member]          
Debt Instrument [Line Items]          
Long-term debt 600.8 608.9      
Debt Issuance Costs, Gross 0.5 0.5      
Notes Payable, Other Payables | Private Placement          
Debt Instrument [Line Items]          
Long-term debt 348.6 348.5      
Debt Issuance Costs, Gross $ 1.4 $ 1.5      
Debt Instrument, Interest Rate, Stated Percentage 2.32% 2.32%      
Revolving Credit Facility | Line of Credit [Member] | July 2019 Revolving Credit Facility [Member]          
Debt Instrument [Line Items]          
Long-term debt   $ 15.0      
Revolving Credit Facility | Line of Credit [Member] | May 2022 Revolving Credit Facility          
Debt Instrument [Line Items]          
Long-term debt $ 0.0        
Maximum borrowing capacity       $ 450.0  
v3.24.1.u1
Credit Arrangements (Details) - USD ($)
$ in Millions
 3 Months Ended
May 06, 2022
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2022
Oct. 26, 2020
Line of Credit Facility [Line Items]          
Maximum borrowing capacity       $ 650.0  
Remaining borrowing capacity   $ 650.0      
Long-term debt, outstanding   600.8      
Debt Instrument, Interest Rate, Stated Percentage         2.32%
Long-term debt   917.3 $ 940.3    
Medium-term Notes [Member] | Term Loan Facility [Member]          
Line of Credit Facility [Line Items]          
Long-term debt   $ 600.8 608.9    
Line of Credit [Member] | Credit Agreement [Member] | Maximum [member] | Lender's base rate [Member]          
Line of Credit Facility [Line Items]          
Basis spread on variable rate debt   0.38%      
Line of Credit [Member] | Credit Agreement [Member] | Maximum [member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate          
Line of Credit Facility [Line Items]          
Basis spread on variable rate debt   1.48%      
Line of Credit [Member] | Credit Agreement [Member] | Minimum [Member] | Lender's base rate [Member]          
Line of Credit Facility [Line Items]          
Basis spread on variable rate debt   0.00%      
Line of Credit [Member] | Credit Agreement [Member] | Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate          
Line of Credit Facility [Line Items]          
Basis spread on variable rate debt   1.00%      
Line of Credit [Member] | July 2019 Revolving Credit Facility [Member] | Revolving Credit Facility          
Line of Credit Facility [Line Items]          
Long-term debt     $ 15.0    
Line of Credit [Member] | May 6, 2022 Credit Agreement | Line of Credit [Member]          
Line of Credit Facility [Line Items]          
Debt Instrument, Term 5 years        
Maximum borrowing capacity $ 1,100.0        
Line of Credit [Member] | May 2022 Revolving Credit Facility | Revolving Credit Facility          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity 450.0        
Long-term debt   $ 0.0      
Line of Credit [Member] | September 30, 2022, Credit Agreement Second Amendment | Line of Credit [Member]          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity       $ 1,300.0  
Notes Payable, Other Payables | Private Placement          
Line of Credit Facility [Line Items]          
Other Long-term Debt         $ 350.0
Debt Instrument, Interest Rate, Stated Percentage   2.32% 2.32%    
Long-term debt   $ 348.6 $ 348.5    
Long-Term Debt | May 6, 2022 Revolving Credit Facility          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity $ 650.0        
v3.24.1.u1
Acquisitions, Goodwill and Other Intangible Assets - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
segments
Mar. 31, 2023
USD ($)
Business Acquisition [Line Items]    
Goodwill, impairment loss | $ $ 0.0 $ 0.0
Number of Reportable Segments 5  
Number of Reportable Segments 5  
v3.24.1.u1
Acquisitions, Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Business Acquisition [Line Items]  
Goodwill $ 1,574.1
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 1,578.8
Foreign currency translation (4.7)
Goodwill, Ending Balance 1,574.1
Operating Segments  
Business Acquisition [Line Items]  
Goodwill 1,504.6
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 1,509.2
Foreign currency translation (4.6)
Goodwill, Ending Balance 1,504.6
Morningstar Data and Analytics Segment | Operating Segments  
Business Acquisition [Line Items]  
Goodwill 602.7
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 605.5
Foreign currency translation (2.8)
Goodwill, Ending Balance 602.7
PitchBook Segment | Operating Segments  
Business Acquisition [Line Items]  
Goodwill 607.4
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 607.4
Foreign currency translation 0.0
Goodwill, Ending Balance 607.4
Morningstar Credit Segment | Operating Segments  
Business Acquisition [Line Items]  
Goodwill 107.5
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 108.6
Foreign currency translation (1.1)
Goodwill, Ending Balance 107.5
Morningstar Wealth Segment | Operating Segments  
Business Acquisition [Line Items]  
Goodwill 93.5
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 94.2
Foreign currency translation (0.7)
Goodwill, Ending Balance 93.5
Morningstar Retirement Segment | Operating Segments  
Business Acquisition [Line Items]  
Goodwill 93.5
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 93.5
Foreign currency translation 0.0
Goodwill, Ending Balance 93.5
Corporate and Other | Operating Segments  
Business Acquisition [Line Items]  
Goodwill 69.5
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 69.6
Foreign currency translation (0.1)
Goodwill, Ending Balance $ 69.5
v3.24.1.u1
Acquisitions, Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross $ 1,002.8 $ 1,010.2
Accumulated Amortization (539.4) (525.8)
Total $ 463.4 $ 484.4
Weighted-Average Useful Life (years) 12 years 12 years
Customer-related assets    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 596.7 $ 601.7
Accumulated Amortization (271.0) (263.8)
Total $ 325.7 $ 337.9
Weighted-Average Useful Life (years) 14 years 14 years
Intellectual property & other    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 92.1 $ 93.2
Accumulated Amortization (66.2) (65.0)
Total $ 25.9 $ 28.2
Weighted-Average Useful Life (years) 8 years 8 years
Technology-Based Intangible Assets    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 314.0 $ 315.3
Accumulated Amortization (202.2) (197.0)
Total $ 111.8 $ 118.3
Weighted-Average Useful Life (years) 8 years 8 years
v3.24.1.u1
Acquisitions, Goodwill and Other Intangible Assets (Amortization Expense) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 17.7 $ 17.5  
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]      
Remainder of 2024 (April 1 through December 31) 47.3    
2025 56.7    
2026 52.9    
2027 45.6    
2028 41.7    
Thereafter 219.2    
Total $ 463.4   $ 484.4
v3.24.1.u1
Acquisitions, Goodwill and Other Intangible Assets - Acquired Intangibles (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross $ 1,002.8 $ 1,010.2
Accumulated Amortization (539.4) (525.8)
Intangible assets, net $ 463.4 $ 484.4
Weighted-Average Useful Life (years) 12 years 12 years
Customer-related assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross $ 596.7 $ 601.7
Accumulated Amortization (271.0) (263.8)
Intangible assets, net $ 325.7 $ 337.9
Weighted-Average Useful Life (years) 14 years 14 years
Intellectual property & other    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross $ 92.1 $ 93.2
Accumulated Amortization (66.2) (65.0)
Intangible assets, net $ 25.9 $ 28.2
Weighted-Average Useful Life (years) 8 years 8 years
Technology-Based Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross $ 314.0 $ 315.3
Accumulated Amortization (202.2) (197.0)
Intangible assets, net $ 111.8 $ 118.3
Weighted-Average Useful Life (years) 8 years 8 years
v3.24.1.u1
Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Earnings Per Share, Basic [Abstract]    
Consolidated net income (loss) $ 64.2 $ (7.6)
Weighted average common shares outstanding 42.7 42.5
Basic net income per share attributable to Morningstar, Inc. $ 1.50 $ (0.18)
Earnings Per Share, Diluted [Abstract]    
Consolidated net income (loss) $ 64.2 $ (7.6)
Weighted average common shares outstanding 42.7 42.5
Net effect of dilutive stock options and restricted stock units 0.3 0.0
Weighted average common shares outstanding for computing diluted income per share 43.0 42.5
Diluted net income per share attributable to Morningstar, Inc. $ 1.49 $ (0.18)
v3.24.1.u1
Revenue (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]    
Consolidated revenue $ 542.8 $ 479.7
License-based    
Disaggregation of Revenue [Line Items]    
Consolidated revenue 400.2 364.0
Asset-based    
Disaggregation of Revenue [Line Items]    
Consolidated revenue 77.0 65.3
Transaction-based    
Disaggregation of Revenue [Line Items]    
Consolidated revenue $ 65.6 $ 50.4
v3.24.1.u1
Revenue (Disaggregation of Revenue, Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenues $ 542.8 $ 479.7
Minimum [Member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue performance period 1 year  
Maximum [member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue performance period 3 years  
Licensed-based Revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenues $ 400.2 364.0
Licensed-based Revenue | Minimum [Member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue performance period 1 year  
Licensed-based Revenue | Maximum [member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue performance period 3 years  
Asset-based Revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenues $ 77.0 $ 65.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue performance period 9 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue performance period 1 year  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue performance period 2 years  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue performance period 3 years  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue performance period 4 years  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue performance period 5 years  
v3.24.1.u1
Revenue (Schedule of Contract Liabilities) (Details)
$ in Millions
Mar. 31, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 1,418.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 869.1
Revenue performance period 9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 380.5
Revenue performance period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 121.2
Revenue performance period 2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 18.0
Revenue performance period 3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 6.5
Revenue performance period 4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 22.7
Revenue performance period 5 years
v3.24.1.u1
Revenue (Contract Liabilities, Additional Information Narrative) (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Revenue from Contract with Customer [Abstract]  
Increase in contract liabilities from cash payments received $ 45.9
Contract with Customer, Liability, Change in Timeframe, Performance Obligation Satisfied, Revenue Recognized 233.1
Accounts payable and accrued liabilities $ 589.9
Revenue Revenue
Disaggregation of Revenue

The following table presents our revenue disaggregated by revenue type. Sales and usage-based taxes are excluded from revenue.
Three months ended March 31,
(in millions)20242023
Revenue by Type: (1)
License-based $400.2 $364.0 
Asset-based77.0 65.3 
Transaction-based65.6 50.4 
Consolidated revenue$542.8 $479.7 
____________________________________________________________________________________________
(1) Starting with the quarter ended March 31, 2024, revenue from PitchBook media sales product was reclassified from license-based to transaction-based. Prior periods have not been restated to reflect the updated classifications.

License-based performance obligations are generally satisfied over time as the customer has access to the product or service during the term of the subscription license and the level of service is consistent during the contract period. License-based agreements typically have a term of 1 to 3 years and are accounted for as subscription services available to customers and not as a license under the accounting guidance.
Asset-based performance obligations are satisfied over time as the customer receives continuous access to a service for the term of the agreement. Asset-based arrangements typically have a term of 1 to 3 years. Asset-based fees represent variable consideration, and the customer does not make separate purchasing decisions that result in additional performance obligations. Significant changes in the underlying fund assets and significant disruptions in the market are evaluated to determine whether estimates of earned asset-based fees need to be revised for the current quarter. The timing of client asset reporting and the structure of certain contracts can result in a lag between market movements and the impact on earned revenue. An estimate of variable consideration is included in the initial transaction price only to the extent it is probable that a significant reversal in the amount of the revenue recognized will not occur. Estimates of asset-based fees are based on the most recently completed quarter and, as a result, it is unlikely a significant reversal of revenue would occur.

Transaction-based performance obligations are satisfied when the product or service is completed or delivered. Some transaction-based revenue includes revenue from surveillance services, which is recognized over time, as the customer has access to the service during the surveillance period.

Contract Liabilities

Our contract liabilities represent deferred revenue. We record contract liabilities when cash payments are received or due in advance of our performance, including amounts which may be refundable. The contract liabilities balance as of March 31, 2024 had a net increase of $45.9 million, primarily driven by cash payments received or payable in advance of satisfying our performance obligations. We recognized $233.1 million of revenue in the three months ended March 31, 2024 that was included in the contract liabilities balance as of December 31, 2023.

We expect to recognize revenue related to our contract liabilities, including future billings, for the remainder of 2024 and subsequent years as follows:

(in millions)As of March 31, 2024
Remainder of 2024 (April 1 through December 31)$869.1 
2025380.5 
2026121.2 
202718.0 
20286.5 
Thereafter22.7 
Total$1,418.0 

The aggregate amount of revenue we expect to recognize for the remainder of 2024 and subsequent years is higher than our contract liability balance of $589.9 million as of March 31, 2024. The difference represents the value of future obligations for signed contracts that have yet to be billed.

The table above does not include variable consideration for unsatisfied performance obligations related to certain of our license-based, asset-based, and transaction-based contracts as of March 31, 2024. We are applying the optional exemption available under ASC Topic 606, as the variable consideration relates to these unsatisfied performance obligations being fulfilled as a series. The performance obligations related to these contracts are expected to be satisfied over the next 1 to 3 years as services are provided to the client. For license-based contracts, the consideration received for services performed is based on the number of future users, which is not known until the services are performed. The variable consideration for this revenue can be affected by the number of user licenses, which cannot be reasonably estimated. For asset-based contracts, the consideration received for services performed is based on future asset values, which are not known until the services are performed. The variable consideration for this revenue can be affected by changes in the underlying value of fund assets due to client redemptions, additional investments, or movements in the market. For transaction-based contracts, the consideration received for most Internet advertising services performed is based on the number of impressions, which is not known until the impressions are created. The variable consideration for this revenue can be affected by the timing and quantity of impressions in any given period and cannot be reasonably estimated.
As of March 31, 2024, the table above also does not include revenue for unsatisfied performance obligations related to certain of our license-based and transaction-based contracts with durations of one year or less since we are applying the optional exemption under ASC Topic 606. For certain license-based contracts, the remaining performance obligation is expected to be less than one year based on the corresponding subscription terms or the existence of cancellation terms that may be exercised causing the contract term to be less than one year from March 31, 2024. For transaction-based contracts, such as new credit rating issuances and Morningstar-sponsored conferences, the related performance obligations are expected to be satisfied within the next 12 months.

Contract Assets

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

The following table summarizes our contract assets balance:

(in millions)As of March 31, 2024As of December 31, 2023
Accounts receivable, less allowance for credit losses$326.2 $343.9 
Deferred commissions71.6 71.2 
Total contract assets$397.8 $415.1 
v3.24.1.u1
Revenue (Summary of Contract Assets) (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Accounts receivable, less allowance for credit losses $ 326.2 $ 343.9
Deferred commissions, current and non-current 71.6 71.2
Total contract assets $ 397.8 $ 415.1
v3.24.1.u1
Segment and Geographical Area Information (Segment Profitability Details)
$ in Millions, ¥ in Billions
 3 Months Ended
Apr. 19, 2023
USD ($)
Apr. 19, 2023
JPY (¥)
Apr. 06, 2023
USD ($)
Apr. 06, 2023
JPY (¥)
Mar. 31, 2024
USD ($)
segments
Mar. 31, 2023
USD ($)
Segment Reporting [Abstract]            
Number of Reportable Segments | segments         5  
Number of Operating Segments | segments         7  
Segment Reporting Information [Line Items]            
Document Period End Date         Mar. 31, 2024  
Revenue         $ 542.8 $ 479.7
Amortization expense         (17.7) (17.5)
Business Combination, Acquisition and Integration Related Costs         (0.5) (4.2)
Business Combination, Contingent Consideration Expense         0.0 0.0
Severance and personnel expenses         0.0 (1.1)
Business Exit Costs $ (14.8) ¥ (2.0) $ (45.1) ¥ (6.0) 0.0 (4.2)
Asset Impairment Charges         0.0 (0.3)
Operating income         92.6 24.5
Nonoperating Income (Expense)         (5.6) (22.4)
Equity in investments of unconsolidated entities         (1.5) (1.3)
Income Loss From Continuing Operations Before Income Taxes Domestic And Foreign         85.5 0.8
Unallocated Corporate Expenses         40.9 36.1
Finance Lease, Right-of-Use Asset, Amortization         0.3 0.1
Sustainalytics            
Segment Reporting Information [Line Items]            
Revenue         30.8 27.3
Morningstar Indexes [Member]            
Segment Reporting Information [Line Items]            
Revenue         20.0 14.6
Operating Segments            
Segment Reporting Information [Line Items]            
Revenue         492.0 437.8
Reportable Segment Profitability         152.1 103.9
Morningstar Data and Analytics Segment | Operating Segments            
Segment Reporting Information [Line Items]            
Revenue         196.7 179.8
Reportable Segment Profitability         91.2 80.9
PitchBook Segment | Operating Segments            
Segment Reporting Information [Line Items]            
Revenue         147.6 131.1
Reportable Segment Profitability         40.0 30.4
Morningstar Credit Segment | Operating Segments            
Segment Reporting Information [Line Items]            
Revenue         60.3 46.8
Reportable Segment Profitability         12.3 (4.0)
Corporate and Other | Operating Segments            
Segment Reporting Information [Line Items]            
Revenue         50.8 41.9
Reportable Segment Profitability         (41.3) (52.1)
Morningstar Wealth Segment | Operating Segments            
Segment Reporting Information [Line Items]            
Revenue         59.0 54.9
Reportable Segment Profitability         (5.6) (14.6)
Morningstar Retirement Segment | Operating Segments            
Segment Reporting Information [Line Items]            
Revenue         28.4 25.2
Reportable Segment Profitability         $ 14.2 $ 11.2
v3.24.1.u1
Segment Reporting (Segment Revenue by Type Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue $ 542.8 $ 479.7
Operating Segments    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 492.0 437.8
Morningstar Data and Analytics Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 196.7 179.8
PitchBook Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 147.6 131.1
Morningstar Credit Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 60.3 46.8
Morningstar Wealth Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 59.0 54.9
Morningstar Retirement Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 28.4 25.2
Corporate and Other    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 50.8 41.9
License-based    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 400.2 364.0
License-based | Operating Segments    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 367.5 334.5
License-based | Morningstar Data and Analytics Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 196.7 179.8
License-based | PitchBook Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 145.6 131.1
License-based | Morningstar Credit Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 4.2 2.8
License-based | Morningstar Wealth Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 20.5 20.4
License-based | Morningstar Retirement Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 0.5 0.4
License-based | Corporate and Other    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 32.7 29.5
Asset-based    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 77.0 65.3
Asset-based | Operating Segments    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 61.5 54.4
Asset-based | Morningstar Data and Analytics Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 0.0 0.0
Asset-based | PitchBook Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 0.0 0.0
Asset-based | Morningstar Credit Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 0.0 0.0
Asset-based | Morningstar Wealth Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 33.6 29.6
Asset-based | Morningstar Retirement Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 27.9 24.8
Asset-based | Corporate and Other    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 15.5 10.9
Transaction-based    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 65.6 50.4
Transaction-based | Operating Segments    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 63.0 48.9
Transaction-based | Morningstar Data and Analytics Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 0.0 0.0
Transaction-based | PitchBook Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 2.0 0.0
Transaction-based | Morningstar Credit Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 56.1 44.0
Transaction-based | Morningstar Wealth Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 4.9 4.9
Transaction-based | Morningstar Retirement Segment    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue 0.0 0.0
Transaction-based | Corporate and Other    
Disaggregation of Revenue by Reportable Segment [Line Items]    
Consolidated revenue $ 2.6 $ 1.5
v3.24.1.u1
Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]      
External revenue $ 542.8 $ 479.7  
Long-lived assets 210.8   $ 207.7
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
External revenue 390.9 347.3  
Long-lived assets 184.3   178.5
Total International      
Revenues from External Customers and Long-Lived Assets [Line Items]      
External revenue 151.9 132.4  
Long-lived assets 26.5   29.2
Canada      
Revenues from External Customers and Long-Lived Assets [Line Items]      
External revenue 38.9 33.1  
Long-lived assets 7.0   7.2
Continental Europe      
Revenues from External Customers and Long-Lived Assets [Line Items]      
External revenue 49.7 43.1  
Long-lived assets 6.0   6.5
Australia      
Revenues from External Customers and Long-Lived Assets [Line Items]      
External revenue 15.0 14.4  
Long-lived assets 1.6   1.9
Canada      
Revenues from External Customers and Long-Lived Assets [Line Items]      
External revenue 32.6 27.3  
Long-lived assets 3.1   3.6
United Kingdom      
Revenues from External Customers and Long-Lived Assets [Line Items]      
External revenue 12.7 12.1  
Long-lived assets 8.7   9.9
Other      
Revenues from External Customers and Long-Lived Assets [Line Items]      
External revenue 3.0 $ 2.4  
Long-lived assets $ 0.1   $ 0.1
v3.24.1.u1
Segment and Geographical Area Information Segment and Geographical Area Information - Operating Lease Assets by Geographical Area (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]    
Consolidated operating lease assets $ 156.5 $ 163.9
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Consolidated operating lease assets 96.6 100.7
Total International    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Consolidated operating lease assets 59.9 63.2
Canada    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Consolidated operating lease assets 16.1 16.9
Continental Europe    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Consolidated operating lease assets 17.6 18.1
Australia    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Consolidated operating lease assets 3.0 3.2
Canada    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Consolidated operating lease assets 8.2 8.2
United Kingdom    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Consolidated operating lease assets 14.8 16.5
Other    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Consolidated operating lease assets $ 0.2 $ 0.3
v3.24.1.u1
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Investment balances $ 55.4 $ 51.1
v3.24.1.u1
Investments in Unconsolidated Entities (Details)
$ in Millions, ¥ in Billions
 1 Months Ended 2 Months Ended 3 Months Ended
Apr. 19, 2023
USD ($)
Apr. 19, 2023
JPY (¥)
Apr. 06, 2023
USD ($)
Apr. 06, 2023
JPY (¥)
Feb. 28, 2023
USD ($)
shares
Jan. 27, 2023
JPY (¥)
shares
Mar. 31, 2023
Feb. 27, 2023
Mar. 31, 2024
USD ($)
Mar. 31, 2023
USD ($)
Dec. 31, 2023
USD ($)
Investments in Unconsolidated Entities [Line Items]                      
Business Exit Costs $ 14.8 ¥ 2.0 $ 45.1 ¥ 6.0         $ 0.0 $ 4.2  
Investments in unconsolidated entities                 96.1   $ 100.2
Sale of Stock, Percentage of Ownership after Transaction             13.20%        
Sale of Stock, Percentage of Ownership before Transaction               22.10%      
Realized gain on sale of investments, reclassified from other comprehensive income                 $ 2.6 $ 0.2  
Equity Method Investments and Joint Ventures Disclosure                 Investments in Unconsolidated Entities
As of March 31, 2024 and December 31, 2023, our investment in unconsolidated entities balance totaled $96.1 million and $100.2 million, respectively. We have investments in both equity method investments and investments in equity securities with and without a readily determinable fair value.

The carrying amount of other investments in unconsolidated entities without a readily determinable fair value was $50.7 million and $49.9 million as of March 31, 2024 and December 31, 2023, respectively. We did not record any material adjustments or impairment losses in the first three months of 2024 or 2023.

On January 27, 2023, we entered into a Termination Agreement (the Termination Agreement) with Morningstar Japan K.K. (now known as SBI Global Asset Management Co., Ltd. (Wealth Advisors)), and a Tender Offer Agreement (the Tender Offer Agreement) with SBI Global Asset Management Co., Ltd. (now known as SBI Asset Management Group Co., Ltd. (SBI)).

Pursuant to the Termination Agreement, Wealth Advisors agreed to cease use of the Morningstar brand and Morningstar and Wealth Advisors agreed to terminate the License Agreement originally entered into in 1998. As consideration for the transaction, Morningstar agreed to pay Wealth Advisors 8 billion Japanese yen upon the termination of the license agreement and the achievement of certain conditions related primarily to the termination of the use of the Morningstar brand by Wealth Advisors’ customers.

On April 6, 2023, we made the first cash payment of 6 billion Japanese yen ($45.1 million) and on April 19, 2023, we made the second and final cash payment of 2 billion Japanese yen ($14.8 million), pursuant to the Termination Agreement. The expense related to the Termination Agreement is recorded within "Expense from equity method transaction, net" in our Condensed Consolidated Statements of Income (Loss) for the three months ended March 31, 2023.

As part of this transaction, pursuant to the Tender Offer Agreement, Morningstar agreed to tender up to 10 million shares in Wealth Advisors to SBI. The tender offer closed on February 28, 2023, and SBI purchased 8,040,600 shares of Wealth Advisors from Morningstar, resulting in net proceeds of $26.2 million and a pre-tax gain of $18.4 million. The pre-tax gain is recorded within "Expense from equity method transaction, net" in our Condensed Consolidated Statements of Income (Loss) for the three months ended March 31, 2023.

Subsequent to the tender offer, the company's ownership percentage in Wealth Advisors decreased to 13.2% from 22.1%, and as a result, we no longer account for our investment in Wealth Advisors as an equity method investment. Each reporting period, we remeasure our remaining investment in Wealth Advisors, an equity security with a readily determinable value, at fair value and recognize unrealized holding gains or losses within "Other income, net" on our Condensed Consolidated Statements of Income. During the first quarter of 2023, we recognized an unrealized holding gain of $31.2 million, which is recorded within "Expense from equity method transaction, net" in our Condensed Consolidated Statement of Income (Loss) for the three months ended March 31, 2023.
    
Equity Securities without Readily Determinable Fair Value, Amount                 $ 50.7   $ 49.9
Wealth Advisors [Member]                      
Investments in Unconsolidated Entities [Line Items]                      
Business Exit Costs | ¥           ¥ 8.0          
SBI                      
Investments in Unconsolidated Entities [Line Items]                      
Sale of Stock, Number of Shares Issued in Transaction | shares         8,040,600 10,000,000          
Sale of Stock, Consideration Received Per Transaction         $ 26.2            
Gain on equity method transaction                 31.2    
Realized gain on sale of investments, reclassified from other comprehensive income                 $ 18.4    
v3.24.1.u1
Leases - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Lessee, Lease, Description [Line Items]    
Operating lease expense $ 10.4 $ 11.7
Variable lease, cost 3.2 4.1
Operating lease payments $ 10.7 $ 11.3
Minimum [Member]    
Lessee, Lease, Description [Line Items]    
Operating lease, weighted average remaining lease term 1 year  
Maximum [member]    
Lessee, Lease, Description [Line Items]    
Operating lease, weighted average remaining lease term 11 years  
v3.24.1.u1
Leases - Operating Lease Minimum Future Lease Commitments (Details)
$ in Millions
Mar. 31, 2024
USD ($)
Leases [Abstract]  
Remainder of 2019 $ 32.7
2020 36.4
2021 38.9
2022 31.3
2023 24.6
Thereafter 36.4
Total minimum lease commitments 200.3
Adjustment for discount to present value 21.8
Present value of lease liabilities $ 178.5
v3.24.1.u1
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details)
Mar. 31, 2024
Weighted-average remaining lease term (in years)  
Weighted-average remaining lease term (in years) 5 years 7 months 6 days
Weighted-average discount rate  
Weighted-average discount rate 3.90%
v3.24.1.u1
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs by Plan) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense $ 11.4 $ 12.2
Cost of revenue    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense 4.6 5.0
Sales and marketing    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense 1.9 1.6
General and administrative    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense $ 4.9 $ 5.6
v3.24.1.u1
Stock-Based Compensation (Narrative) (Details) - Restricted Stock Units and Performance Share Awards
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized stock-based compensation expense $ 78.8
Expected amortization period (months) 24 months
v3.24.1.u1
Income Taxes (Income Tax Reconciliation and Unrecognized Tax Benefits) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Income before income taxes and equity in net income (loss) of unconsolidated entities $ 87.0 $ 2.1  
Equity in investments of unconsolidated entities (1.5) (1.3)  
Total 85.5 0.8  
Income tax expense $ 21.3 $ 8.4  
Effective income tax rate 24.90%    
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract]      
Current liability $ 7.5   $ 6.2
Non-current liability 7.6   8.3
Total liability for unrecognized tax benefits 15.1   14.5
Concentration Risk [Line Items]      
Unrecognized Tax Benefits 13.4   13.0
Total Liability For Unrecognized Tax Benefits $ 15.1   $ 14.5
Effective tax rate   NMF  
Geographic Concentration Risk | Cash, Cash Equivalents and Investments | Total International      
Concentration Risk [Line Items]      
Percentage of cash, cash equivalents and investments held by operations outside of US 76.00%    
v3.24.1.u1
Income Taxes (Income Tax Contingency) (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Gross unrecognized tax benefits $ 13.4 $ 13.0
Gross unrecognized tax benefits that would affect income tax expense 13.4 13.0
Decrease in income tax expense upon recognition of gross unrecognized tax benefits $ 13.1 $ 12.8
v3.24.1.u1
Contingencies Contingencies (Details)
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Document Period End Date Mar. 31, 2024
v3.24.1.u1
Share Repurchase Program (Details)
$ in Millions
Mar. 31, 2024
USD ($)
Subsequent Event [Line Items]  
Share repurchase program, authorized amount $ 500.0
Stock repurchase program, remaining authorized repurchase amount $ 498.6