MORNINGSTAR, INC., 10-Q filed on 11/6/2013
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2013
Oct. 31, 2013
Document and Entity Information Abstract
 
 
Entity Registrant Name
MORNINGSTAR, INC. 
 
Entity Central Index Key
0001289419 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q3 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
45,953,013 
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Revenue
$ 173,482 
$ 160,952 
$ 517,766 
$ 487,679 
Operating expense (1):
 
 
 
 
Cost of revenue
72,422 1
60,568 1
198,499 
186,143 
Sales and marketing
22,774 1
25,732 1
78,789 
81,431 
General and administrative
22,416 1
23,966 1
77,863 
77,090 
Depreciation and amortization
11,257 1
10,822 1
33,858 
31,616 
Total operating expense
128,869 1
121,088 1
389,009 
376,280 
Operating income (loss)
44,613 
39,864 
128,757 
111,399 
Non-operating income (expense):
 
 
 
 
Interest income (expense), net
630 
1,719 
2,035 
3,848 
Gain (loss) on sale of investments reclassified from other comprehensive income
(42)
(4)
1,106 
(52)
Equity Method Investments Holding Gain
(78)
0 
3,635 
0 
Other income (expense), net
261 
165 
(1,949)
(262)
Non-operating income (expense), net
771 
1,880 
4,827 
3,534 
Income before income taxes and equity in net income of unconsolidated entities
45,384 
41,744 
133,584 
114,933 
Income tax expense
14,265 
15,186 
42,647 
41,441 
Equity in net income of unconsolidated entities
315 
478 
1,172 
1,541 
Consolidated net income
31,434 
27,036 
92,109 
75,033 
Net (income) loss attributable to the noncontrolling interest
29 
34 
93 
62 
Net income attributable to Morningstar, Inc.
$ 31,463 
$ 27,070 
$ 92,202 
$ 75,095 
Net income per share attributable to:
 
 
 
 
Basic (in dollars per share)
$ 0.68 
$ 0.56 
$ 1.99 
$ 1.53 
Diluted (in dollars per share)
$ 0.68 
$ 0.56 
$ 1.98 
$ 1.51 
Dividends declared per common share
$ 0.00 
$ 0.10 
$ 0.25 
$ 0.30 
Dividends paid per common share
$ 0.13 
$ 0.10 
$ 0.25 
$ 0.30 
Weighted average shares outstanding:
 
 
 
 
Basic (in shares)
46,080 
47,975 
46,293 
49,028 
Diluted (in shares)
46,519 
48,481 
46,635 
49,664 
Condensed Consolidated Statements of Income (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
(1) Includes stock-based compensation expense of:
 
 
 
 
Allocated Share-based Compensation Expense
$ 3,416 
$ 3,994 
$ 11,153 
$ 11,594 
Cost of Revenue
 
 
 
 
(1) Includes stock-based compensation expense of:
 
 
 
 
Allocated Share-based Compensation Expense
1,471 
1,619 
4,863 
4,739 
Sales and Marketing
 
 
 
 
(1) Includes stock-based compensation expense of:
 
 
 
 
Allocated Share-based Compensation Expense
456 
493 
1,490 
1,433 
General and Administrative
 
 
 
 
(1) Includes stock-based compensation expense of:
 
 
 
 
Allocated Share-based Compensation Expense
$ 1,489 
$ 1,882 
$ 4,800 
$ 5,422 
Condensed Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Consolidated net income
$ 31,434 
$ 27,036 
$ 92,109 
$ 75,033 
Other comprehensive income (loss), net of tax:
 
 
 
 
Foreign currency translation adjustment
11,247 
7,375 
(4,952)
5,597 
Unrealized gains (losses) on securities:
 
 
 
 
Unrealized gains (losses) on available-for-sale investments, net of income tax of $605
774 
1,026 
1,774 
1,394 
Reclassification of adjustments for losses (gains) included in net income, net of income tax of $399
28 
0 
(706)
33 
Other comprehensive income (loss), net
12,049 
8,401 
(3,884)
7,024 
Comprehensive income (loss), net
43,483 
35,437 
88,225 
82,057 
Comprehensive (income) loss attributable to noncontrolling interest
40 
16 
246 
77 
Comprehensive income attributable to Morningstar, Inc.
$ 43,523 
$ 35,453 
$ 88,471 
$ 82,134 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Current assets:
 
 
Cash and cash equivalents
$ 176,959 
$ 163,889 
Investments
165,918 
157,529 
Accounts receivable, less allowance of $1,005 and $569, respectively
113,688 
114,361 
Deferred tax asset, net
3,155 
3,741 
Income tax receivable, net
3,451 
14,267 
Other
26,229 
20,823 
Total current assets
489,400 
474,610 
Property, equipment, and capitalized software, net
99,007 
84,022 
Investments in unconsolidated entities
38,376 
35,305 
Goodwill
326,741 
320,845 
Intangible assets, net
109,269 
116,732 
Other assets
11,357 
10,438 
Total assets
1,074,150 
1,041,952 
Current liabilities:
 
 
Accounts payable and accrued liabilities
35,984 
43,777 
Accrued compensation
60,745 
67,317 
Deferred revenue
151,850 
146,015 
Other
6,760 
256 
Total current liabilities
255,339 
257,365 
Accrued compensation
8,467 
8,281 
Deferred tax liability, net
22,188 
21,583 
Deferred rent
13,966 
15,368 
Other long-term liabilities
15,714 
12,460 
Total liabilities
315,674 
315,057 
Morningstar, Inc. shareholders' equity:
 
 
Common stock, no par value, 200,000,000 shares authorized, of which 46,068,303 and 46,541,571 shares were outstanding, respectively
5 
5 
Treasury stock at cost, 6,024,254 shares and 5,214,070 shares, respectively
(358,616)
(301,839)
Additional paid-in capital
533,146 
521,285 
Retained earnings
576,828 
496,354 
Accumulated other comprehensive income:
 
 
Currency translation adjustment
4,126 
8,925 
Unrealized gain on available-for-sale securities
1,855 
787 
Total accumulated other comprehensive income
5,981 
9,712 
Total Morningstar, Inc. shareholders' equity
757,344 
725,517 
Noncontrolling interest
1,132 
1,378 
Total equity
758,476 
726,895 
Total liabilities and equity
$ 1,074,150 
$ 1,041,952 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Statement of Financial Position [Abstract]
 
 
Allowance for Doubtful Accounts Receivable, Current
$ 1,005 
$ 569 
Common Stock, No Par Value
$ 0 
$ 0 
Common Stock, Shares Authorized
200,000,000 
200,000,000 
Common Stock, Shares, Outstanding
46,068,303 
46,541,571 
Treasury Stock, Shares
6,024,254 
5,214,070 
Condensed Consolidated Statement of Equity (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Common Stock
Treasury Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Non Controlling Interests
Balance at Dec. 31, 2012
$ 726,895 
$ 5 
$ (301,839)
$ 521,285 
$ 496,354 
$ 9,712 
$ 1,378 
Balance (in shares) at Dec. 31, 2012
46,541,571 
46,541,571 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity
 
 
 
 
 
 
 
Net Income (Loss)
92,109 
 
 
 
92,202 
 
(93)
Other Comprehensive Income (loss)
 
 
 
 
 
 
 
Unrealized gains (losses) on available-for-sale investments, net of income tax of $605
1,774 
   
   
   
   
1,774 
0 
Reclassification of adjustments for losses (gains) included in net income, net of income tax of $399
(706)
   
   
   
   
(706)
0 
Foreign currency translation adjustment, net
(4,952)
   
   
   
   
(4,799)
(153)
Other comprehensive income (loss), net
(3,884)
   
   
   
   
(3,731)
(153)
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net
(2,104)
0 
1,350 
(3,454)
   
   
   
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares)
 
356,023 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
 
 
 
 
 
Stock-based compensation - restricted stock units
10,493 
   
   
10,493 
   
   
   
Stock-based compensation - restricted stock
291 
   
   
291 
   
   
   
Stock-based compensation - stock options
369 
   
   
369 
   
   
   
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units
4,093 
   
   
4,093 
   
   
   
Common share repurchased
(58,127)
   
(58,127)
   
   
   
   
Common share repurchased (in shares)
 
(829,291)
 
 
 
 
 
Dividends declared - common shares outstanding
(11,578)
   
   
   
(11,578)
   
   
Dividends declared - restricted stock units
(81)
   
   
69 
(150)
   
   
Balance at Sep. 30, 2013
$ 758,476 
$ 5 
$ (358,616)
$ 533,146 
$ 576,828 
$ 5,981 
$ 1,132 
Balance (in shares) at Sep. 30, 2013
46,068,303 
46,068,303 
 
 
 
 
 
Condensed Consolidated Statement of Equity (Parenthetical) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Statement of Stockholders' Equity [Abstract]
 
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax
$ 605 
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax
$ 399 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Operating activities
 
 
Consolidated net income
$ 92,109 
$ 75,033 
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
 
 
Depreciation and amortization
33,858 
31,616 
Deferred income taxes
(2,315)
492 
Stock-based compensation expense
11,153 
11,594 
Provision for bad debt
730 
990 
Equity in net income of unconsolidated entities
(1,172)
(1,541)
Excess tax benefits from stock-option exercises and vesting of restricted stock units
(4,093)
(5,007)
Holding gain upon acquisition of additional ownership of equity method investments
(3,635)
0 
Other, net
12 
342 
Changes in operating assets and liabilities, net of effects of acquisitions:
 
 
Accounts receivable
(1,249)
(6,569)
Other assets
(2,887)
(3,551)
Accounts payable and accrued liabilities
(3,151)
(4,316)
Accrued compensation
(8,404)
(20,851)
Income taxes- current
17,205 
7,220 
Deferred revenue
6,004 
7,684 
Deferred rent
(1,273)
291 
Other liabilities
(679)
(1,111)
Cash provided by operating activities
132,213 
92,316 
Investing activities
 
 
Purchases of investments
(113,824)
(134,929)
Proceeds from maturities and sales of investments
108,599 
216,350 
Capital expenditures
(27,950)
(22,876)
Acquisitions, net of cash acquired
(11,079)
0 
Proceeds from Divestiture of Businesses
957 
0 
Purchases of equity and cost method investments
(2,751)
(10,304)
Other, net
432 
(4)
Cash used for investing activities
(45,616)
48,237 
Financing activities
 
 
Proceeds from stock-option exercises, net
3,172 
6,752 
Employee taxes withheld for restricted stock units
(5,276)
(3,992)
Excess tax benefits from stock-option exercises and vesting of restricted stock units
4,093 
5,007 
Common shares repurchased
(62,794)
(183,698)
Dividends paid
(11,657)
(14,867)
Other, net
(54)
(18)
Cash provided by (used for) financing activities
(72,516)
(190,816)
Effect of exchange rate changes on cash and cash equivalents
(1,011)
2,007 
Net increase (decrease) in cash and cash equivalents
13,070 
(48,256)
Cash and cash equivalents-beginning of period
163,889 
200,437 
Cash and cash equivalents-end of period
176,959 
152,181 
Supplemental disclosure of cash flow information:
 
 
Cash paid for income taxes
27,700 
33,163 
Supplemental information of non-cash investing and financing activities:
 
 
Unrealized Gain (Loss) on Available For Sale Investments
1,675 
2,221 
NonCashFinancingArrangement
$ 4,860 
$ 0 
Basis of Presentation of Interim Financial Information
Basis of Presentation of Interim Financial Information
Basis of Presentation of Interim Financial Information
 
The accompanying condensed consolidated financial statements of Morningstar, Inc. and subsidiaries (Morningstar, we, our, the Company) have been prepared to conform to the rules and regulations of the Securities and Exchange Commission (SEC). The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue, and expenses. Actual results could differ from those estimates. In the opinion of management, the statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly our financial position, results of operations, equity, and cash flows. These financial statements and notes are unaudited and should be read in conjunction with our Audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on February 28, 2013.

Certain prior period amounts have been reclassified to conform to our current period's presentation. We now include development expense in the cost of revenue category, which we previously referred to as cost of goods sold. We have reclassified development expense to include it in cost of revenue for all periods presented.

Separately, as a result of our recent reorganization (including new positions created, changes in focus for some existing roles, and the refinement of employee cost categorizations as we moved to a more centralized structure), approximately 180 net positions shifted from the general and administrative and sales and marketing categories to cost of revenue. For the three and nine months ended September 30, 2013 as compared with the corresponding periods in 2012, we estimate that changes related to our more centralized organizational structure added approximately $7 million of compensation expense to cost of revenue, and reduced the compensation expense in our sales and marketing and general and administrative expense categories by approximately $4 million and $3 million, respectively. These changes did not affect our total operating expense or operating income for any of the periods presented.
 
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
 
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
 
Acquisitions

Increased Ownership Interest in Morningstar Sweden AB

In May 2013, we acquired an additional 76% interest in Morningstar Sweden AB (Morningstar Sweden), increasing our ownership to 100% from 24%. Morningstar’s main offerings in Sweden include Morningstar Direct, Morningstar Data, Integrated Web Tools, and Morningstar.se, an investment information website for individual investors that provides fund and ETF data, portfolio tools, and market analysis. We began consolidating the financial results of this acquisition in our Consolidated Financial Statements on May 2, 2013.

Morningstar Sweden's total estimated fair value of $18,513,000 includes $14,554,000 in cash paid to acquire the remaining 76% interest in Morningstar Sweden and $3,959,000 related to the 24% of Morningstar Sweden we previously held. We determined the fair value of the previously held 24% investment independent of the acquired controlling interest by applying a minority interest discount based on analysis of comparable transactions. Accordingly, we recorded a non-cash holding gain of $3,635,000. The gain is included in non-operating income in our Unaudited Condensed Consolidated Statement of Income.

The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
 
 
($000)

Cash and cash equivalents
 
$
3,472

Accounts receivable and other current assets
 
519

Other non-current assets
 
244

Intangible assets
 
9,700

Goodwill
 
9,084

Deferred revenue
 
(1,191
)
Deferred tax liability
 
(2,272
)
Other current and non-current liabilities
 
(1,043
)
Total fair value of Morningstar Sweden
 
$
18,513



The allocation includes acquired intangible assets, as follows:
 
 
($000)

 
Weighted Average Useful Life (years)
Customer-related assets
 
$
9,700

 
14
Total intangible assets
 
$
9,700

 
14


We recognized a deferred tax liability of $2,272,000 mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes.

Goodwill of $9,084,000 represents the premium over the fair value of the net tangible and intangible assets acquired with this acquisition. We paid this premium for a number of reasons, including the opportunity to offer Morningstar's full suite of products and services to investors in Sweden and further leverage Morningstar's global reach, investment databases, and technology expertise.

Goodwill
 
The following table shows the changes in our goodwill balances from December 31, 2012 to September 30, 2013:
 
 
($000)

Balance as of December 31, 2012
$
320,845

Acquisition of remaining ownership in Morningstar Sweden
9,084

Other, primarily foreign currency translation
(3,188
)
Balance as of September 30, 2013
$
326,741



We did not record any significant impairment losses in the first nine months of 2013 or 2012. We perform our annual impairment reviews in the fourth quarter.

Intangible Assets

The following table summarizes our intangible assets: 
 
 
As of September 30, 2013
 
As of December 31, 2012
($000)
 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)
 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)
Intellectual property
 
$
29,799

 
$
(22,778
)
 
$
7,021

 
9
 
$
30,621

 
$
(21,527
)
 
$
9,094

 
9
Customer-related assets
 
141,824

 
(71,343
)
 
70,481

 
12
 
132,798

 
(63,005
)
 
69,793

 
12
Supplier relationships
 
240

 
(105
)
 
135

 
20
 
240

 
(96
)
 
144

 
20
Technology-based assets
 
80,553

 
(49,017
)
 
31,536

 
9
 
81,333

 
(43,809
)
 
37,524

 
9
Non-competition agreement
 
1,692

 
(1,596
)
 
96

 
4
 
1,765

 
(1,588
)
 
177

 
4
Total intangible assets
 
$
254,108

 
$
(144,839
)
 
$
109,269

 
10
 
$
246,757

 
$
(130,025
)
 
$
116,732

 
10
 
The following table summarizes our amortization expense related to intangible assets:
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Amortization expense
 
$
5,287

 
$
5,941

 
$
16,249

 
$
17,972


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

We expect intangible amortization expense for 2013 and subsequent years as follows:
 
 
($000)

2013
 
$
21,510

2014
 
20,507

2015
 
19,687

2016
 
15,118

2017
 
10,579

2018
 
8,593


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

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

We discuss our significant accounting policies in Note 3 of our Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on February 28, 2013.

In addition, effective January 1, 2013, we adopted FASB ASU No. 2013-2, Comprehensive Income (Topic 220). The amended guidance requires us to show the effects of items reclassified out of each component of accumulated other comprehensive income to net income on the face of the financial statement where net income is presented. The adoption of ASU No. 2013-2 did not have a material effect on our consolidated financial statements.

Furthermore, beginning with the third quarter of 2013, we revised our segment structure to reflect our shift to a more centralized organizational structure. We now report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results.
Income Per Share
Income Per Share
Income Per Share 

The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share:

 
 
 
Three months ended September 30
 
Nine months ended September 30
(in thousands, except per share amounts)
 
 
2013

 
2012

 
2013

 
2012

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

 
 

 
 
 
 
Net income attributable to Morningstar, Inc.:
 
 
$
31,463

 
$
27,070

 
$
92,202

 
$
75,095

Less: Distributed earnings available to participating securities
 
 
—

 
(12
)
 
(5
)
 
(39
)
Less: Undistributed earnings available to participating securities
 
 
(11
)
 
(53
)
 
(29
)
 
(144
)
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
 
$
31,452

 
$
27,005

 
$
92,168

 
$
74,912

 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
 
 
46,080

 
47,975

 
46,293

 
49,028

 
 
 
 
 
 
 
 
 
 
Basic net income per share attributable to Morningstar, Inc.
 
 
$
0.68

 
$
0.56

 
$
1.99

 
$
1.53

 
 
 
 
 
 
 
 
 
 
Diluted net income per share attributable to Morningstar, Inc.:
 
 
 
 
 
 
 
 
 
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
 
$
31,452

 
$
27,005

 
$
92,168

 
$
74,912

Add: Undistributed earnings allocated to participating securities
 
 
11

 
53

 
29

 
144

Less: Undistributed earnings reallocated to participating securities
 
 
(11
)
 
(53
)
 
(29
)
 
(142
)
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders
 
 
$
31,452

 
$
27,005

 
$
92,168

 
$
74,914

 
 
 


 


 


 


Weighted average common shares outstanding
 
 
46,080

 
47,975

 
46,293

 
49,028

Net effect of dilutive stock options and restricted stock units
 
 
439

 
506

 
342

 
636

Weighted average common shares outstanding for computing diluted income per share
 
 
46,519

 
48,481

 
46,635

 
49,664

 
 
 


 


 


 


Diluted net income per share attributable to Morningstar, Inc.
 
 
$
0.68

 
$
0.56

 
$
1.98

 
$
1.51


The following table shows the number of weighted average stock options, restricted stock units, and restricted stock excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive:
 
 
 
Three months ended September 30
 
Nine months ended September 30
(in thousands)
 
 
2013

 
2012

 
2013

 
2012

Weighted average stock options
 
 
—

 
9

 
—

 
12

Weighted average restricted stock units
 
 
1

 
—

 
19

 
81

Weighted average restricted stock
 
 
—

 
—

 
—

 
—

Total
 
 
1

 
9

 
19

 
93


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

Segment and Geographical Area Information
Segment and Geographical Area Information
Segment, Enterprise-Wide, and Geographical Area Information
 
Segment Information

Beginning with the third quarter of 2013, we revised our segment structure to reflect our shift to a more centralized organizational structure. We now report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results.

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

The accounting policies for our single reportable segment are the same as those described in “Note 3. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2012. We evaluate the performance of our reporting segment based on revenue and operating income.

Products and Services Information

We derive revenue from two product groups. The investment information product group includes all of our data, software, and research products and services. These products are typically sold through subscriptions or license agreements. The investment management product group includes all of our asset management operations, which earn the majority of their revenue from asset-based fees. The table below summarizes our revenue by product group.

External revenue by product group
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

 
Investment information
 
$
137,216

 
$
128,392

 
$
412,332

 
$
388,468

 
Investment management
 
36,266

 
32,560

 
105,434

 
99,211

 
Consolidated revenue
 
$
173,482

 
$
160,952

 
$
517,766

 
$
487,679

 


Geographical Area Information

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

External revenue by geographical area
 
 
 
 
 
 
 
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

United States
 
$
124,998

 
$
114,021

 
$
372,746

 
$
346,442

 
 
 
 
 
 
 
 
 
United Kingdom
 
14,148

 
13,711

 
41,316

 
42,160

Europe, excluding the United Kingdom
 
14,666

 
11,643

 
41,826

 
35,980

Australia
 
8,041

 
10,090

 
26,569

 
29,230

Canada
 
7,603

 
7,605

 
23,151

 
22,351

Asia, excluding Japan
 
2,580

 
2,420

 
7,836

 
7,156

Japan
 
783

 
924

 
2,400

 
2,889

Other
 
663

 
538

 
1,922

 
1,471

Total International
 
48,484

 
46,931

 
145,020

 
141,237

 
 
 
 
 
 
 
 
 
Consolidated revenue
 
$
173,482

 
$
160,952

 
$
517,766

 
$
487,679




Long-lived assets by geographical area
 
 
 
 
 
 
As of September 30
 
As of December 31
($000)
 
2013

 
2012

United States
 
$
77,713

 
$
60,371

 
 
 
 
 
United Kingdom
 
6,611

 
7,435

Europe, excluding the United Kingdom
 
2,061

 
2,356

Australia
 
1,184

 
1,402

Canada
 
1,400

 
1,773

Asia, excluding Japan
 
9,863

 
10,445

Japan
 
45

 
84

Other
 
130

 
156

Total International
 
21,294

 
23,651

 
 
 
 
 
Consolidated property, equipment, and capitalized software, net
 
$
99,007

 
$
84,022

Investments and Fair Value Measurements
Investments and Fair Value Measurements
Investments and Fair Value Measurements
 
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below:
 
 
 
As of September 30
 
As of December 31
($000)
 
2013

 
2012

Available-for-sale
 
$
129,316

 
$
125,786

Held-to-maturity
 
29,307

 
26,357

Trading securities
 
7,295

 
5,386

Total
 
$
165,918

 
$
157,529




The following table shows the cost, unrealized gains (losses), and fair values related to investments classified as available-for-sale and held-to-maturity:
 
 
 
As of September 30, 2013
 
As of December 31, 2012
($000)
 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

Available-for-sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Government obligations
 
$
28,515

 
$
8

 
$
(24
)
 
$
28,499

 
$
40,669

 
$
29

 
$
(608
)
 
$
40,090

Corporate bonds
 
67,763

 
13

 
(223
)
 
67,553

 
49,339

 
36

 
(292
)
 
49,083

Foreign obligations
 
1,297

 
—

 
(16
)
 
1,281

 
2,437

 
1

 
(19
)
 
2,419

Commercial paper
 
9,986

 
—

 
(1
)
 
9,985

 
2,000

 
—

 
—

 
2,000

Equity securities and exchange-traded funds
 
8,226

 
1,001

 
(156
)
 
9,071

 
19,613

 
1,359

 
(323
)
 
20,649

Mutual funds
 
10,624

 
2,395

 
(92
)
 
12,927

 
10,499

 
1,092

 
(46
)
 
11,545

Total
 
$
126,411

 
$
3,417

 
$
(512
)
 
$
129,316

 
$
124,557

 
$
2,517

 
$
(1,288
)
 
$
125,786

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Certificates of deposit
 
$
29,307

 
$
—

 
$
—

 
$
29,307

 
$
26,357

 
$
—

 
$
—

 
$
26,357


 
As of September 30, 2013 and December 31, 2012, investments with unrealized losses for greater than a 12-month period were not material to the Condensed Consolidated Balance Sheets and were not deemed to have other than temporary declines in value.

The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of September 30, 2013 and December 31, 2012. The expected maturities of certain fixed-income securities may differ from their contractual maturities because some of these holdings have call features that allow the issuers the right to prepay obligations without penalties.
 
 
 
As of September 30, 2013
 
As of December 31, 2012
($000)
 
Cost

 
Fair Value

 
Cost

 
Fair Value

Available-for-sale:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
53,470

 
$
53,308

 
$
87,599

 
$
86,784

Due in one to two years
 
54,091

 
54,010

 
6,846

 
6,808

Equity securities, exchange-traded funds, and mutual funds
 
18,850

 
21,998

 
30,112

 
32,194

    Total
 
$
126,411

 
$
129,316

 
$
124,557

 
$
125,786

 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
29,303

 
$
29,303

 
$
26,352

 
$
26,352

Due in one to three years
 
4

 
4

 
5

 
5

Total
 
$
29,307

 
$
29,307

 
$
26,357

 
$
26,357


 
As of September 30, 2013 and December 31, 2012, held-to-maturity investments included a $1,500,000 certificate of deposit held primarily as collateral against bank guarantees for our office leases, primarily in Australia.

The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Condensed Consolidated Statements of Income: 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Realized gains
 
94

 
219

 
$
2,320

 
$
689

Realized losses
 
(136
)
 
(222
)
 
(1,214
)
 
(741
)
Realized gains (losses), net
 
(42
)
 
(3
)
 
$
1,106

 
$
(52
)

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

The following table shows the net unrealized gains (losses) on trading securities as recorded in our Condensed Consolidated Statements of Income:
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Unrealized gains (losses), net
 
(741
)
 
181

 
$
(468
)
 
$
337



The fair value of our assets subject to fair value measurements and that are measured at fair value on a recurring basis using the fair value hierarchy and the necessary disclosures under FASB ASC 820, Fair Value Measurement, are as follows:
 
 
 
Fair Value
 
Fair Value Measurements as of September 30, 2013
 
 
as of
 
Using Fair Value Hierarchy
($000)
 
September 30, 2013
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Government obligations
 
$
28,499

 
$
—

 
$
28,499

 
$
—

Corporate bonds
 
67,553

 
—

 
67,553

 
—

Foreign obligations
 
1,281

 
—

 
1,281

 
—

Commercial paper
 
9,985

 
—

 
9,985

 
—

Equity securities and exchange-traded funds
 
9,071

 
9,071

 
—

 
—

Mutual funds
 
12,927

 
12,927

 
—

 
—

Trading securities
 
7,295

 
7,295

 
—

 
—

Cash equivalents
 
18,990

 
18,990

 
—

 
—

Total
 
$
155,601

 
$
48,283

 
$
107,318

 
$
—

 
 
 
Fair Value
 
Fair Value Measurements as of December 31, 2012
 
 
as of
 
Using Fair Value Hierarchy
($000)
 
December 31, 2012
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Government obligations
 
$
40,090

 
$
—

 
$
40,090

 
$
—

Corporate bonds
 
49,083

 
—

 
49,083

 
—

Foreign obligations
 
2,419

 
—

 
2,419

 
—

Commercial paper
 
2,000

 
—

 
2,000

 
—

Equity securities and exchange-traded funds
 
20,649

 
20,649

 
—

 
—

Mutual funds
 
11,545

 
11,545

 
—

 
—

Trading securities
 
5,386

 
5,386

 
—

 
—

Cash equivalents
 
398

 
398

 
—

 
—

Total
 
$
131,570

 
$
37,978

 
$
93,592

 
$
—


 
Level 1:
Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access.
Level 2:
Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3:
Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

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

We measure the fair value of money market funds, mutual funds, equity securities, and exchange-traded funds based on quoted prices in active markets for identical assets or liabilities. All other financial instruments were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from observable market data. We did not hold any securities categorized as Level 3 as of September 30, 2013 and December 31, 2012.
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities
 
Our investments in unconsolidated entities consist primarily of the following:
 
 
 
As of September 30


As of December 31

($000)
 
2013


2012

Investment in MJKK
 
$
21,359

 
$
20,540

Other equity method investments
 
6,322

 
6,288

Investments accounted for using the cost method
 
10,695

 
8,477

Total investments in unconsolidated entities
 
$
38,376

 
$
35,305


 
Morningstar Japan K.K. Morningstar Japan K.K. (MJKK) develops and markets products and services customized for the Japanese market. MJKK’s shares are traded on the Tokyo Stock Exchange under the ticker 47650. We account for our investment in MJKK using the equity method. The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price: 
 
 
As of September 30

 
As of December 31

 
 
2013

 
2012

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

 
 

Japanese yen (¥000)
 
¥
8,558,222

 
¥
3,109,579

Equivalent U.S. dollars ($000)
 
$
87,123

 
$
36,227



Other Equity Method Investments. As of September 30, 2013 and December 31, 2012, other equity method investments consist of our investment in Inquiry Financial Europe AB (Inquiry Financial) and YCharts, Inc. (YCharts). Inquiry Financial is a provider of sell-side consensus estimate data. Our ownership interest in Inquiry Financial was approximately 34% as of September 30, 2013 and December 31, 2012. YCharts is a technology company that provides stock research and analysis. Our ownership interest in YCharts was approximately 22% as of September 30, 2013 and December 31, 2012.

As of December 31, 2012, other equity-method investments also included our investment in Morningstar Sweden. Our ownership interest and profit-and-loss sharing interest in Morningstar Sweden was 24% at that date. In May 2013, we acquired an additional 76% interest in Morningstar Sweden, increasing our ownership to 100%. Upon acquiring the full ownership, we recorded a non-cash gain of $3,635,000. This gain represents the difference between the estimated fair value and the book value of our investment in Morningstar Sweden at the date of acquisition. Because Morningstar Sweden is now a wholly owned subsidiary, we no longer account for our investment using the equity method. Beginning in May 2013, we consolidate the assets, liabilities, and results of operations of Morningstar Sweden in our Unaudited Condensed Consolidated Financial Statements. See Note 3 for additional information concerning our acquisition of Morningstar Sweden.

We did not record any impairment losses on our equity method investments in the first nine months of 2013 or 2012.
 
Cost Method Investments. As of September 30, 2013 and December 31, 2012, our cost method investments consist of minority investments in HelloWallet LLC (HelloWallet) and Pitchbook Data, Inc. (Pitchbook). HelloWallet is a provider of personalized financial guidance to employees of Fortune 1000 companies. Pitchbook offers detailed data and information about private equity transactions, investors, companies, limited partners, and service providers.

We did not record any impairment losses on our cost method investments in the first nine months of 2013 or 2012.
Stock-Based Compensation
Stock-Based Compensation
Stock-Based Compensation
 
Stock-Based Compensation Plans
 
Our shareholders approved the Morningstar 2011 Stock Incentive Plan (the 2011 Plan) on May 17, 2011. As of that date, we stopped granting awards under the Morningstar 2004 Stock Incentive Plan (the 2004 Plan). The 2004 Plan amended and restated the Morningstar 1993 Stock Option Plan, the Morningstar 2000 Stock Option Plan, and the Morningstar 2001 Stock Option Plan.

The 2011 Plan provides for a variety of stock-based awards, including, among other things, stock options, restricted stock units, and restricted stock. We granted stock options, restricted stock units, and restricted stock under the 2004 Plan.

All of our employees and our non-employee directors are eligible for awards under the 2011 Plan.

Grants awarded under the 2011 Plan or the 2004 Plan that are forfeited, canceled, settled, or otherwise terminated without a distribution of shares, or shares withheld by us in connection with the exercise of options, will be available for awards under the 2011 Plan. Any shares subject to awards under the 2011 Plan, but not under the 2004 Plan, that are withheld by us in connection with the payment of any required income tax withholding will be available for awards under the 2011 Plan.

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

(in thousands)
 
2013

Shares available for future grants
 
4,563


 
Accounting for Stock-Based Compensation Awards
 
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded:
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Restricted stock units
 
$
3,196

 
$
3,396

 
$
10,493

 
$
9,944

Restricted stock
 
97

 
444

 
291

 
1,332

Stock options
 
123

 
154

 
369

 
318

Total stock-based compensation expense
 
$
3,416

 
$
3,994

 
$
11,153

 
$
11,594

 
 
 
 
 
 
 
 
 
Income tax benefit related to the stock-based compensation expense
 
$
846

 
$
931

 
$
2,944

 
$
2,735


 

The following table summarizes the amount of unrecognized stock-based compensation expense as of September 30, 2013 and the expected number of months over which the expense will be recognized:
 
 
Unrecognized stock-based compensation expense ($000)

 
Expected amortization period (months)
Restricted stock units
 
$
32,203

 
34
Restricted stock
 
614

 
19
Stock options
 
708

 
19
Total unrecognized stock-based compensation expense
 
$
33,525

 
33


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

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

The following table summarizes restricted stock unit activity during the first nine months of 2013:
Restricted Stock Units (RSUs)
 
Unvested

 
Vested but
Deferred

 
Total

 
Weighted
Average
Grant Date Value
per RSU

RSUs outstanding—December 31, 2012
 
727,145

 
18,782

 
745,927

 
$
53.37

Granted
 
244,364

 
—

 
244,364

 
69.99

Dividend equivalents
 
2,090

 
63

 
2,153

 
55.69

Vested
 
(256,105
)
 
—

 
(256,105
)
 
49.82

Vested but deferred
 
—

 
—

 
—

 
—

Issued
 
—

 
(2,257
)
 
(2,257
)
 
49.40

Forfeited
 
(42,862
)
 
—

 
(42,862
)
 
57.43

RSUs outstanding—September 30, 2013
 
674,632

 
16,588

 
691,220

 
60.40


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

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

We measured the fair value of the restricted stock on the date of grant based on the closing market price of our common stock on the day prior to the grant. We amortize the fair value of $9,363,000 to stock-based compensation expense over the vesting period. We have assumed that all of the remaining restricted stock will ultimately vest, and therefore have not incorporated a forfeiture rate for purposes of determining the stock-based compensation expense.
 
Stock Options

Stock options granted to employees vest ratably over a four-year period. Grants to our non-employee directors vest ratably over a three-year period. All grants expire 10 years after the date of grant. Almost all of the options granted under the 2004 Stock Incentive Plan have a premium feature in which the exercise price increases over the term of the option at a rate equal to the 10-year Treasury bond yield as of the date of grant. Options granted under the 2011 Plan have an exercise price equal to the fair market value on the grant date.

The following tables summarize stock option activity in the first nine months of 2013 for our various stock option grants. The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. 
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date
 
Underlying
Shares

 
Weighted
Average
Exercise
Price

Options outstanding—December 31, 2012
 
282,695

 
$
20.55

Granted
 
—

 
—

Canceled
 
(250
)
 
21.25

Exercised
 
(40,942
)
 
20.77

Options outstanding—September 30, 2013
 
241,503

 
21.24

 
 
 
 
 
Options exercisable—September 30, 2013
 
241,503

 
$
21.24


 
All Other Option Grants, Excluding Activity Shown Above
 
Underlying
Shares

 
Weighted
Average
Exercise
Price

Options outstanding—December 31, 2012
 
391,784

 
$
28.98

Granted
 
—

 
—

Canceled
 
(1,352
)
 
16.08

Exercised
 
(133,219
)
 
16.59

Options outstanding—September 30, 2013
 
257,213

 
36.15

 
 
 
 
 
Options exercisable—September 30, 2013
 
221,166

 
$
32.66

 
The following table summarizes the total intrinsic value (difference between the market value of our stock on the date of exercise and the exercise price of the option) of options exercised:
 
 
 
Nine months ended September 30
($000)
 
2013

 
2012

Intrinsic value of options exercised
 
$
8,964

 
$
17,161


 

The table below shows additional information for options outstanding and exercisable as of September 30, 2013:
 
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number of  Options

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

 
Aggregate
Intrinsic
Value
($000)

 
Exercisable Shares

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

 
Aggregate Intrinsic Value ($000)

$8.57 - $14.70
 
385

 
0.92
 
$
13.11

 
$
25

 
385

 
0.92
 
$
13.11

 
$
25

$21.18 - $48.37
 
426,656

 
1.39
 
24.15

 
23,513

 
426,656

 
1.39
 
24.15

 
23,513

$57.28 - $59.35
 
71,675

 
7.78
 
57.46

 
1,563

 
35,628

 
7.76
 
57.37

 
750

$8.57 - $59.35
 
498,716

 
2.31
 
28.93

 
$
25,101

 
462,669

 
1.88
 
26.70

 
$
24,288

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected to Vest
 
 
 
 
 
 
 
 
 
 
 
 
 
$8.57 - $59.35
 
498,716

 
2.31
 
$
28.93

 
$
25,101

 
 
 
 
 
 
 
 

 
The aggregate intrinsic value in the table above represents the total pretax intrinsic value all option holders would have received if they had exercised all outstanding options on September 30, 2013. The intrinsic value is based on our closing stock price of $79.26 on that date.

Excess Tax Benefits Related to Stock-Based Compensation
 
FASB ASC 718, Compensation—Stock Compensation, requires that we classify the cash flows that result from excess tax benefits as financing cash flows. Excess tax benefits correspond to the portion of the tax deduction taken on our income tax return that exceeds the amount of tax benefit related to the compensation cost recognized in our Statement of Income. The following table summarizes our excess tax benefits:
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Excess tax benefits related to stock-based compensation
 
$
251

 
$
459

 
$
4,093

 
$
5,007

Income Taxes
Income Taxes
Income Taxes
 
Effective Tax Rate

The following table shows our effective income tax rate for the three and nine months ended September 30, 2013 and September 30, 2012:
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Income before income taxes and equity in net income of unconsolidated entities
 
$
45,384

 
$
41,744

 
$
133,584

 
$
114,933

Equity in net income of unconsolidated entities
 
315

 
478

 
1,172

 
1,541

Net loss attributable to the noncontrolling interest
 
29

 
34

 
93

 
62

Total
 
$
45,728

 
$
42,256

 
$
134,849

 
$
116,536

Income tax expense
 
$
14,265

 
$
15,186

 
$
42,647

 
$
41,441

Effective tax rate
 
31.2
%
 
35.9
%
 
31.6
%
 
35.6
%

 
Our effective tax rate in the third quarter of 2013 was 31.2%, a decrease of 4.7 percentage points compared with the prior-year period. The effective tax rate decrease primarily reflects adjustments to certain deferred income tax benefits and the recognition of additional tax credits and incentives.

Unrecognized Tax Benefits

The table below provides information concerning our gross unrecognized tax benefits as of September 30, 2013 and December 31, 2012. The table also provides the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized.
 
 
As of September 30
 
As of December 31
($000)
 
2013

 
2012

Gross unrecognized tax benefits
 
$
14,880

 
$
12,699

Gross unrecognized tax benefits that would affect income tax expense
 
$
14,880

 
$
12,699

Decrease in income tax expense upon recognition of gross unrecognized tax benefits
 
$
12,323

 
$
10,446



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

 
 
As of September 30
 
As of December 31
Liabilities for Unrecognized Tax Benefits ($000)
 
2013

 
2012

Current liability
 
$
6,646

 
$
6,568

Non-current liability
 
7,758

 
5,659

Total liability for unrecognized tax benefits
 
$
14,404

 
$
12,227



We conduct business globally and as a result, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. We are currently under audit by federal and various state and local tax authorities in the United States, as well as tax authorities in certain non-U.S. jurisdictions. It is possible, though not likely, that the examination phase of some of these audits will conclude in 2013. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits.

We have not provided federal and state income taxes on accumulated undistributed earnings of certain foreign subsidiaries because these earnings have been permanently reinvested. Approximately 43% of our cash, cash equivalents, and investments as of September 30, 2013 were held by our operations outside of the United States. As such, we believe that our cash balances and investments in the United States, along with cash generated from our U.S. operations, will be sufficient to meet our U.S. operating and cash needs for the foreseeable future, without requiring us to repatriate earnings from these foreign subsidiaries. It is not possible to determine the amount of the unrecognized deferred tax liability related to the undistributed earnings.
 
Certain of our non-U.S. operations have incurred net operating losses (NOLs) which may become deductible
to the extent these operations become profitable. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. In the year that certain non-U.S. operations record a loss, we do not recognize a corresponding tax benefit thus increasing our effective tax rate. Upon determining that it is more likely than not that the NOLs will be realized, we reduce the tax valuation allowances related to these NOLs, which results in a reduction to our income tax expense and our effective tax rate in the period.

Contingencies
Contingencies
Contingencies

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

In September 2011, three individual investors in Life's Good S.T.A.B.L. Mortgage hedge fund (LG), Marta Klass, Gregory Martin, and Richard Roellig, filed a complaint in the United States District Court for the Eastern District of Pennsylvania against LG, its principal Robert Stinson, and several other parties, including Morningstar, Inc. (the Klass Matter). The plaintiffs claim that Morningstar committed fraud and aided and abetted the other defendants' breach of fiduciary duty through the 5-star rating LG obtained from Morningstar. The plaintiffs seek unspecified damages. Hedge fund managers self-report their performance data to Morningstar. More than a year before the Klass Matter, in June 2010, the SEC filed suit against LG and other entities claiming they were part of a Ponzi scheme operated by Stinson. As a result, LG and the other entities were placed in court-appointed receivership. Morningstar was not part of the SEC suit or receivership. Since that time, the Receiver, as part of his duties, has been investigating whether to assert claims against third parties. Morningstar is aware of 14 lawsuits filed by the Receiver seeking to recover money for the fund.

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

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

We have not provided an estimate of loss or range of loss in connection with this matter because no such estimate can reasonably be made.

Business Logic Holding Corporation

In November 2009, Business Logic Holding Corporation filed a complaint in the Circuit Court of Cook County, Illinois against Ibbotson Associates, Inc. and Morningstar, Inc. relating to Ibbotson's prior commercial relationship with Business Logic. Business Logic is alleging breach of contract and trade secret misappropriation in connection with Ibbotson's development of a proprietary web-service software and user interface that connects plan participant data with the Ibbotson Wealth Forecasting Engine. Business Logic seeks, among other things, compensatory damages, punitive damages, attorneys' fees, and injunctive relief. Ibbotson and Morningstar answered the complaint, and Ibbotson asserted a counterclaim against Business Logic alleging trade secret misappropriation and breach of contract, also seeking damages and injunctive relief. Business Logic filed a motion for summary judgment on its breach of contract claim, which was denied on October 1, 2013.

As noted above, Business Logic's complaint seeks, among other things, compensatory damages, punitive damages, attorneys' fees, and injunctive relief. With regard to compensatory damages, based on the analysis of Ibbotson's retained damages expert (who has assumed, solely for purposes of his analysis, that Business Logic will prevail with regard to the issue of liability), and recognizing the uncertainty inherent in litigation and our intention to continue to vigorously defend the claims made by Business Logic, our best estimate of the range of possible loss is between $0 and $5.4 million, excluding punitive damages or attorneys' fees, both of which are recoverable in certain circumstances under the Illinois Trade Secrets Act. Business Logic's retained damages expert (who has also assumed for purposes of her estimate that Business Logic will prevail with regard to the issue of liability) has, however, estimated compensatory damages of $84 million, excluding punitive damages or attorneys' fees. We dispute the conclusions reached and the methods employed by Business Logic's expert.

With regard to Business Logic's claim for injunctive relief, no reasonable estimate of loss or range of loss is possible.

Morningstar and Ibbotson continue to vigorously contest all the claims against them in this matter. We cannot, however, predict the outcome of the proceeding.

In addition to these proceedings, we are involved in legal proceedings and litigation that have arisen in the normal course of our business. Although the outcome of a particular proceeding can never be predicted, we do not believe that the result of any of these other matters will have a material adverse effect on our business, operating results, or financial position.
Share Repurchase Program
Share Repurchase Program Disclosure [Text Block]
Share Repurchase Program
 
In September 2010, the board of directors approved a share repurchase program that authorizes the repurchase of up to $100 million in shares of our outstanding common stock. In December 2011, the board approved a $200 million increase to the $100 million share repurchase program it announced in 2010. In December 2012, the board authorized the company to repurchase an additional $200 million in shares of our outstanding common stock, increasing the repurchase program from $300 million to $500 million with a revised expiration date of December 31, 2014. We may repurchase shares from time to time at prevailing market prices on the open market or in private transactions at our discretion. As of September 30, 2013, we had repurchased a total of 5,885,886 shares for $359,064,000 under this authorization.
Subsequent Events
Subsequent Events
Subsequent Events

In October 2013, our board of directors declared a quarterly dividend of 12.5 cents per share. The dividend was payable on October 31, 2013 to shareholders of record as of October 14, 2013.
Summary of Significant Accounting Policies (Policies)
Comprehensive Income, Policy [Policy Text Block] 

In addition, effective January 1, 2013, we adopted FASB ASU No. 2013-2, Comprehensive Income (Topic 220). The amended guidance requires us to show the effects of items reclassified out of each component of accumulated other comprehensive income to net income on the face of the financial statement where net income is presented. The adoption of ASU No. 2013-2 did not have a material effect on our consolidated financial statements.
Segment Reporting, Policy [Policy Text Block] 
Furthermore, beginning with the third quarter of 2013, we revised our segment structure to reflect our shift to a more centralized organizational structure. We now report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results.
Beginning with the third quarter of 2013, we revised our segment structure to reflect our shift to a more centralized organizational structure. We now report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results.

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

The accounting policies for our single reportable segment are the same as those described in “Note 3. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2012. We evaluate the performance of our reporting segment based on revenue and operating income.

Investment, Policy [Policy Text Block] 
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below:
Investments and Fair value Measurements (Policies)
Investment, Policy [Policy Text Block]
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below:
Goodwill and Other Intangible Assets (Tables)
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed 
The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
 
 
($000)

Cash and cash equivalents
 
$
3,472

Accounts receivable and other current assets
 
519

Other non-current assets
 
244

Intangible assets
 
9,700

Goodwill
 
9,084

Deferred revenue
 
(1,191
)
Deferred tax liability
 
(2,272
)
Other current and non-current liabilities
 
(1,043
)
Total fair value of Morningstar Sweden
 
$
18,513

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination 
The allocation includes acquired intangible assets, as follows:
 
 
($000)

 
Weighted Average Useful Life (years)
Customer-related assets
 
$
9,700

 
14
Total intangible assets
 
$
9,700

 
14
Schedule of Goodwill 
The following table shows the changes in our goodwill balances from December 31, 2012 to September 30, 2013:
 
 
($000)

Balance as of December 31, 2012
$
320,845

Acquisition of remaining ownership in Morningstar Sweden
9,084

Other, primarily foreign currency translation
(3,188
)
Balance as of September 30, 2013
$
326,741

Schedule of Intangible Assets 
The following table summarizes our intangible assets: 
 
 
As of September 30, 2013
 
As of December 31, 2012
($000)
 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)
 
Gross

 
Accumulated
Amortization

 
Net

 
Weighted
Average
Useful  Life
(years)
Intellectual property
 
$
29,799

 
$
(22,778
)
 
$
7,021

 
9
 
$
30,621

 
$
(21,527
)
 
$
9,094

 
9
Customer-related assets
 
141,824

 
(71,343
)
 
70,481

 
12
 
132,798

 
(63,005
)
 
69,793

 
12
Supplier relationships
 
240

 
(105
)
 
135

 
20
 
240

 
(96
)
 
144

 
20
Technology-based assets
 
80,553

 
(49,017
)
 
31,536

 
9
 
81,333

 
(43,809
)
 
37,524

 
9
Non-competition agreement
 
1,692

 
(1,596
)
 
96

 
4
 
1,765

 
(1,588
)
 
177

 
4
Total intangible assets
 
$
254,108

 
$
(144,839
)
 
$
109,269

 
10
 
$
246,757

 
$
(130,025
)
 
$
116,732

 
10
 
Schedule of Intangible Asset, Amortization Expense 
The following table summarizes our amortization expense related to intangible assets:
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Amortization expense
 
$
5,287

 
$
5,941

 
$
16,249

 
$
17,972

Schedule of Expected Amortization Expense 
We expect intangible amortization expense for 2013 and subsequent years as follows:
 
 
($000)

2013
 
$
21,510

2014
 
20,507

2015
 
19,687

2016
 
15,118

2017
 
10,579

2018
 
8,593


 
Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful life, and currency translations.
Income Per Share (Tables)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] 
The following table shows the number of weighted average stock options, restricted stock units, and restricted stock excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive:
 
 
 
Three months ended September 30
 
Nine months ended September 30
(in thousands)
 
 
2013

 
2012

 
2013

 
2012

Weighted average stock options
 
 
—

 
9

 
—

 
12

Weighted average restricted stock units
 
 
1

 
—

 
19

 
81

Weighted average restricted stock
 
 
—

 
—

 
—

 
—

Total
 
 
1

 
9

 
19

 
93


These stock options and restricted stock units could be included in the calculation in the future.
Schedule of Earnings Per Share, Basic and Diluted 
The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share:

 
 
 
Three months ended September 30
 
Nine months ended September 30
(in thousands, except per share amounts)
 
 
2013

 
2012

 
2013

 
2012

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

 
 

 
 
 
 
Net income attributable to Morningstar, Inc.:
 
 
$
31,463

 
$
27,070

 
$
92,202

 
$
75,095

Less: Distributed earnings available to participating securities
 
 
—

 
(12
)
 
(5
)
 
(39
)
Less: Undistributed earnings available to participating securities
 
 
(11
)
 
(53
)
 
(29
)
 
(144
)
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
 
$
31,452

 
$
27,005

 
$
92,168

 
$
74,912

 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
 
 
46,080

 
47,975

 
46,293

 
49,028

 
 
 
 
 
 
 
 
 
 
Basic net income per share attributable to Morningstar, Inc.
 
 
$
0.68

 
$
0.56

 
$
1.99

 
$
1.53

 
 
 
 
 
 
 
 
 
 
Diluted net income per share attributable to Morningstar, Inc.:
 
 
 
 
 
 
 
 
 
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders
 
 
$
31,452

 
$
27,005

 
$
92,168

 
$
74,912

Add: Undistributed earnings allocated to participating securities
 
 
11

 
53

 
29

 
144

Less: Undistributed earnings reallocated to participating securities
 
 
(11
)
 
(53
)
 
(29
)
 
(142
)
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders
 
 
$
31,452

 
$
27,005

 
$
92,168

 
$
74,914

 
 
 


 


 


 


Weighted average common shares outstanding
 
 
46,080

 
47,975

 
46,293

 
49,028

Net effect of dilutive stock options and restricted stock units
 
 
439

 
506

 
342

 
636

Weighted average common shares outstanding for computing diluted income per share
 
 
46,519

 
48,481

 
46,635

 
49,664

 
 
 


 


 


 


Diluted net income per share attributable to Morningstar, Inc.
 
 
$
0.68

 
$
0.56

 
$
1.98

 
$
1.51


Segment and Geographical Area Information (Tables)
Revenue from External Customers by Products and Services [Table Text Block] 
Products and Services Information

We derive revenue from two product groups. The investment information product group includes all of our data, software, and research products and services. These products are typically sold through subscriptions or license agreements. The investment management product group includes all of our asset management operations, which earn the majority of their revenue from asset-based fees. The table below summarizes our revenue by product group.

External revenue by product group
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

 
Investment information
 
$
137,216

 
$
128,392

 
$
412,332

 
$
388,468

 
Investment management
 
36,266

 
32,560

 
105,434

 
99,211

 
Consolidated revenue
 
$
173,482

 
$
160,952

 
$
517,766

 
$
487,679

 
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] 
External revenue by geographical area
 
 
 
 
 
 
 
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

United States
 
$
124,998

 
$
114,021

 
$
372,746

 
$
346,442

 
 
 
 
 
 
 
 
 
United Kingdom
 
14,148

 
13,711

 
41,316

 
42,160

Europe, excluding the United Kingdom
 
14,666

 
11,643

 
41,826

 
35,980

Australia
 
8,041

 
10,090

 
26,569

 
29,230

Canada
 
7,603

 
7,605

 
23,151

 
22,351

Asia, excluding Japan
 
2,580

 
2,420

 
7,836

 
7,156

Japan
 
783

 
924

 
2,400

 
2,889

Other
 
663

 
538

 
1,922

 
1,471

Total International
 
48,484

 
46,931

 
145,020

 
141,237

 
 
 
 
 
 
 
 
 
Consolidated revenue
 
$
173,482

 
$
160,952

 
$
517,766

 
$
487,679




Long-lived assets by geographical area
 
 
 
 
 
 
As of September 30
 
As of December 31
($000)
 
2013

 
2012

United States
 
$
77,713

 
$
60,371

 
 
 
 
 
United Kingdom
 
6,611

 
7,435

Europe, excluding the United Kingdom
 
2,061

 
2,356

Australia
 
1,184

 
1,402

Canada
 
1,400

 
1,773

Asia, excluding Japan
 
9,863

 
10,445

Japan
 
45

 
84

Other
 
130

 
156

Total International
 
21,294

 
23,651

 
 
 
 
 
Consolidated property, equipment, and capitalized software, net
 
$
99,007

 
$
84,022

Investments and Fair Value Measurements (Tables)
Schedule of Investments 
We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below:
 
 
 
As of September 30
 
As of December 31
($000)
 
2013

 
2012

Available-for-sale
 
$
129,316

 
$
125,786

Held-to-maturity
 
29,307

 
26,357

Trading securities
 
7,295

 
5,386

Total
 
$
165,918

 
$
157,529

Unrealized Gain (Loss) on Investments 
The following table shows the cost, unrealized gains (losses), and fair values related to investments classified as available-for-sale and held-to-maturity:
 
 
 
As of September 30, 2013
 
As of December 31, 2012
($000)
 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

 
Cost

 
Unrealized
Gain

 
Unrealized
Loss

 
Fair
Value

Available-for-sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Government obligations
 
$
28,515

 
$
8

 
$
(24
)
 
$
28,499

 
$
40,669

 
$
29

 
$
(608
)
 
$
40,090

Corporate bonds
 
67,763

 
13

 
(223
)
 
67,553

 
49,339

 
36

 
(292
)
 
49,083

Foreign obligations
 
1,297

 
—

 
(16
)
 
1,281

 
2,437

 
1

 
(19
)
 
2,419

Commercial paper
 
9,986

 
—

 
(1
)
 
9,985

 
2,000

 
—

 
—

 
2,000

Equity securities and exchange-traded funds
 
8,226

 
1,001

 
(156
)
 
9,071

 
19,613

 
1,359

 
(323
)
 
20,649

Mutual funds
 
10,624

 
2,395

 
(92
)
 
12,927

 
10,499

 
1,092

 
(46
)
 
11,545

Total
 
$
126,411

 
$
3,417

 
$
(512
)
 
$
129,316

 
$
124,557

 
$
2,517

 
$
(1,288
)
 
$
125,786

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Certificates of deposit
 
$
29,307

 
$
—

 
$
—

 
$
29,307

 
$
26,357

 
$
—

 
$
—

 
$
26,357

Investments Classified by Contractual Maturity Date 
The expected maturities of certain fixed-income securities may differ from their contractual maturities because some of these holdings have call features that allow the issuers the right to prepay obligations without penalties.
 
 
 
As of September 30, 2013
 
As of December 31, 2012
($000)
 
Cost

 
Fair Value

 
Cost

 
Fair Value

Available-for-sale:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
53,470

 
$
53,308

 
$
87,599

 
$
86,784

Due in one to two years
 
54,091

 
54,010

 
6,846

 
6,808

Equity securities, exchange-traded funds, and mutual funds
 
18,850

 
21,998

 
30,112

 
32,194

    Total
 
$
126,411

 
$
129,316

 
$
124,557

 
$
125,786

 
 
 
 
 
 
 
 
 
Held-to-maturity:
 
 

 
 

 
 

 
 

Due in one year or less
 
$
29,303

 
$
29,303

 
$
26,352

 
$
26,352

Due in one to three years
 
4

 
4

 
5

 
5

Total
 
$
29,307

 
$
29,307

 
$
26,357

 
$
26,357

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

The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Condensed Consolidated Statements of Income: 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Realized gains
 
94

 
219

 
$
2,320

 
$
689

Realized losses
 
(136
)
 
(222
)
 
(1,214
)
 
(741
)
Realized gains (losses), net
 
(42
)
 
(3
)
 
$
1,106

 
$
(52
)
Unrealized Gain (Loss) On Trading Securities 

The following table shows the net unrealized gains (losses) on trading securities as recorded in our Condensed Consolidated Statements of Income:
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Unrealized gains (losses), net
 
(741
)
 
181

 
$
(468
)
 
$
337

Fair Value, Assets Measured on Recurring Basis 

The fair value of our assets subject to fair value measurements and that are measured at fair value on a recurring basis using the fair value hierarchy and the necessary disclosures under FASB ASC 820, Fair Value Measurement, are as follows:
 
 
 
Fair Value
 
Fair Value Measurements as of September 30, 2013
 
 
as of
 
Using Fair Value Hierarchy
($000)
 
September 30, 2013
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Government obligations
 
$
28,499

 
$
—

 
$
28,499

 
$
—

Corporate bonds
 
67,553

 
—

 
67,553

 
—

Foreign obligations
 
1,281

 
—

 
1,281

 
—

Commercial paper
 
9,985

 
—

 
9,985

 
—

Equity securities and exchange-traded funds
 
9,071

 
9,071

 
—

 
—

Mutual funds
 
12,927

 
12,927

 
—

 
—

Trading securities
 
7,295

 
7,295

 
—

 
—

Cash equivalents
 
18,990

 
18,990

 
—

 
—

Total
 
$
155,601

 
$
48,283

 
$
107,318

 
$
—

 
 
 
Fair Value
 
Fair Value Measurements as of December 31, 2012
 
 
as of
 
Using Fair Value Hierarchy
($000)
 
December 31, 2012
 
Level 1

 
Level 2

 
Level 3

Available-for-sale investments:
 
 

 
 

 
 

 
 

Government obligations
 
$
40,090

 
$
—

 
$
40,090

 
$
—

Corporate bonds
 
49,083

 
—

 
49,083

 
—

Foreign obligations
 
2,419

 
—

 
2,419

 
—

Commercial paper
 
2,000

 
—

 
2,000

 
—

Equity securities and exchange-traded funds
 
20,649

 
20,649

 
—

 
—

Mutual funds
 
11,545

 
11,545

 
—

 
—

Trading securities
 
5,386

 
5,386

 
—

 
—

Cash equivalents
 
398

 
398

 
—

 
—

Total
 
$
131,570

 
$
37,978

 
$
93,592

 
$
—

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


As of December 31

($000)
 
2013


2012

Investment in MJKK
 
$
21,359

 
$
20,540

Other equity method investments
 
6,322

 
6,288

Investments accounted for using the cost method
 
10,695

 
8,477

Total investments in unconsolidated entities
 
$
38,376

 
$
35,305

Schedule of Equity Method Investments 
The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price: 
 
 
As of September 30

 
As of December 31

 
 
2013

 
2012

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

 
 

Japanese yen (¥000)
 
¥
8,558,222

 
¥
3,109,579

Equivalent U.S. dollars ($000)
 
$
87,123

 
$
36,227

Stock-Based Compensation (Tables)
Schedule of Shares Available for Future Grants 

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

(in thousands)
 
2013

Shares available for future grants
 
4,563

Schedule of Stock-Based Compensation Expense 
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded:
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Restricted stock units
 
$
3,196

 
$
3,396

 
$
10,493

 
$
9,944

Restricted stock
 
97

 
444

 
291

 
1,332

Stock options
 
123

 
154

 
369

 
318

Total stock-based compensation expense
 
$
3,416

 
$
3,994

 
$
11,153

 
$
11,594

 
 
 
 
 
 
 
 
 
Income tax benefit related to the stock-based compensation expense
 
$
846

 
$
931

 
$
2,944

 
$
2,735

Schedule of Unrecognized Stock-Based Compensation Expense 

The following table summarizes the amount of unrecognized stock-based compensation expense as of September 30, 2013 and the expected number of months over which the expense will be recognized:
 
 
Unrecognized stock-based compensation expense ($000)

 
Expected amortization period (months)
Restricted stock units
 
$
32,203

 
34
Restricted stock
 
614

 
19
Stock options
 
708

 
19
Total unrecognized stock-based compensation expense
 
$
33,525

 
33
Schedule of Restricted Stock Units Award Activity 

The following table summarizes restricted stock unit activity during the first nine months of 2013:
Restricted Stock Units (RSUs)
 
Unvested

 
Vested but
Deferred

 
Total

 
Weighted
Average
Grant Date Value
per RSU

RSUs outstanding—December 31, 2012
 
727,145

 
18,782

 
745,927

 
$
53.37

Granted
 
244,364

 
—

 
244,364

 
69.99

Dividend equivalents
 
2,090

 
63

 
2,153

 
55.69

Vested
 
(256,105
)
 
—

 
(256,105
)
 
49.82

Vested but deferred
 
—

 
—

 
—

 
—

Issued
 
—

 
(2,257
)
 
(2,257
)
 
49.40

Forfeited
 
(42,862
)
 
—

 
(42,862
)
 
57.43

RSUs outstanding—September 30, 2013
 
674,632

 
16,588

 
691,220

 
60.40

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

 
Weighted
Average
Exercise
Price

Options outstanding—December 31, 2012
 
282,695

 
$
20.55

Granted
 
—

 
—

Canceled
 
(250
)
 
21.25

Exercised
 
(40,942
)
 
20.77

Options outstanding—September 30, 2013
 
241,503

 
21.24

 
 
 
 
 
Options exercisable—September 30, 2013
 
241,503

 
$
21.24

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

 
Weighted
Average
Exercise
Price

Options outstanding—December 31, 2012
 
391,784

 
$
28.98

Granted
 
—

 
—

Canceled
 
(1,352
)
 
16.08

Exercised
 
(133,219
)
 
16.59

Options outstanding—September 30, 2013
 
257,213

 
36.15

 
 
 
 
 
Options exercisable—September 30, 2013
 
221,166

 
$
32.66

 
Schedule of Intrinsic Value of Stock Options Exercised During Period 
The following table summarizes the total intrinsic value (difference between the market value of our stock on the date of exercise and the exercise price of the option) of options exercised:
 
 
 
Nine months ended September 30
($000)
 
2013

 
2012

Intrinsic value of options exercised
 
$
8,964

 
$
17,161

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

The table below shows additional information for options outstanding and exercisable as of September 30, 2013:
 
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number of  Options

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

 
Aggregate
Intrinsic
Value
($000)

 
Exercisable Shares

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

 
Aggregate Intrinsic Value ($000)

$8.57 - $14.70
 
385

 
0.92
 
$
13.11

 
$
25

 
385

 
0.92
 
$
13.11

 
$
25

$21.18 - $48.37
 
426,656

 
1.39
 
24.15

 
23,513

 
426,656

 
1.39
 
24.15

 
23,513

$57.28 - $59.35
 
71,675

 
7.78
 
57.46

 
1,563

 
35,628

 
7.76
 
57.37

 
750

$8.57 - $59.35
 
498,716

 
2.31
 
28.93

 
$
25,101

 
462,669

 
1.88
 
26.70

 
$
24,288

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected to Vest
 
 
 
 
 
 
 
 
 
 
 
 
 
$8.57 - $59.35
 
498,716

 
2.31
 
$
28.93

 
$
25,101

 
 
 
 
 
 
 
 
Schedule of Tax Benefits Related to Share Based Compensation 
The following table summarizes our excess tax benefits:
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Excess tax benefits related to stock-based compensation
 
$
251

 
$
459

 
$
4,093

 
$
5,007

Income Taxes (Tables)
Schedule of Effective Income Tax Rate Reconciliation 
The following table shows our effective income tax rate for the three and nine months ended September 30, 2013 and September 30, 2012:
 
 
 
Three months ended September 30
 
Nine months ended September 30
($000)
 
2013

 
2012

 
2013

 
2012

Income before income taxes and equity in net income of unconsolidated entities
 
$
45,384

 
$
41,744

 
$
133,584

 
$
114,933

Equity in net income of unconsolidated entities
 
315

 
478

 
1,172

 
1,541

Net loss attributable to the noncontrolling interest
 
29

 
34

 
93

 
62

Total
 
$
45,728

 
$
42,256

 
$
134,849

 
$
116,536

Income tax expense
 
$
14,265

 
$
15,186

 
$
42,647

 
$
41,441

Effective tax rate
 
31.2
%
 
35.9
%
 
31.6
%
 
35.6
%
Schedule of Gross Unrecognized Tax Benefits 
The table below provides information concerning our gross unrecognized tax benefits as of September 30, 2013 and December 31, 2012. The table also provides the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized.
 
 
As of September 30
 
As of December 31
($000)
 
2013

 
2012

Gross unrecognized tax benefits
 
$
14,880

 
$
12,699

Gross unrecognized tax benefits that would affect income tax expense
 
$
14,880

 
$
12,699

Decrease in income tax expense upon recognition of gross unrecognized tax benefits
 
$
12,323

 
$
10,446

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

 
 
As of September 30
 
As of December 31
Liabilities for Unrecognized Tax Benefits ($000)
 
2013

 
2012

Current liability
 
$
6,646

 
$
6,568

Non-current liability
 
7,758

 
5,659

Total liability for unrecognized tax benefits
 
$
14,404

 
$
12,227

Goodwill and Other Intangible Assets (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended 0 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
May 3, 2013
Morningstar Sweden AB [Member]
Mar. 31, 2013
Morningstar Sweden AB [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Ownership interest acquired
 
 
 
 
 
76.00% 
 
Equity Method Investments
 
 
 
 
 
 
$ 3,959,000 
Equity method investment, ownership percentage
 
 
 
 
 
100.00% 
24.00% 
Total fair value of Morningstar Sweden
 
 
 
 
 
18,513,000 
 
Cash paid to acquire ownership interest
 
 
 
 
 
14,554,000 
 
Holding gain upon acquisition of additional ownership of equity method investments
(78,000)
0 
3,635,000 
0 
 
3,635,000 
 
Intangible assets
 
 
 
 
 
9,700,000 
 
Deferred tax liability
 
 
 
 
 
(2,272,000)
 
Goodwill
$ 326,741,000 
 
$ 326,741,000 
 
$ 320,845,000 
$ 9,084,000 
 
Goodwill and Other Intangible Assets (Allocation of the Estimated Fair Values of the Assets Acquired and Liabilities Assumed) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
May 3, 2013
Morningstar Sweden AB [Member]
Business Acquisition [Line Items]
 
 
 
Cash and cash equivalents
 
 
$ 3,472 
Accounts receivable and other current assets
 
 
519 
Other non-current assets
 
 
244 
Intangible assets
 
 
9,700 
Goodwill
326,741 
320,845 
9,084 
Deferred revenue
 
 
(1,191)
Deferred tax liability
 
 
(2,272)
Other current and non-current liabilities
 
 
(1,043)
Total fair value of Morningstar Sweden
 
 
$ 18,513 
Goodwill and Other Intangible Assets (Schedule of Acquired Intangible Assets) (Details) (Morningstar Sweden AB [Member], USD $)
In Thousands, unless otherwise specified
0 Months Ended
May 3, 2013
Acquired Finite-Lived Intangible Assets [Line Items]
 
Acquired intangible assets, value
$ 9,700 
Acquired intangible assets, weighted average useful life (years)
14 years 
Customer-related assets [Member]
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
Acquired intangible assets, value
$ 9,700 
Acquired intangible assets, weighted average useful life (years)
14 years 
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Goodwill, Impairment Loss
$ 0 
$ 0 
Goodwill [Roll Forward]
 
 
Goodwill, Beginning Balance
320,845 
 
Adjustments to 2010 acquisitions
9,084 
 
Other, primarily currency translation
(3,188)
 
Goodwill, Ending Balance
$ 326,741 
 
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
$ 254,108 
$ 246,757 
Accumulated Amortization
(144,839)
(130,025)
Intangible assets, Net
109,269 
116,732 
Weighted-Average Useful Life (years)
10 years 
10 years 
Intellectual Property [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
29,799 
30,621 
Accumulated Amortization
(22,778)
(21,527)
Intangible assets, Net
7,021 
9,094 
Weighted-Average Useful Life (years)
9 years 
9 years 
Customer Related Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
141,824 
132,798 
Accumulated Amortization
(71,343)
(63,005)
Intangible assets, Net
70,481 
69,793 
Weighted-Average Useful Life (years)
12 years 
12 years 
Supplier Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
240 
240 
Accumulated Amortization
(105)
(96)
Intangible assets, Net
135 
144 
Weighted-Average Useful Life (years)
20 years 
20 years 
Technology-Based Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
80,553 
81,333 
Accumulated Amortization
(49,017)
(43,809)
Intangible assets, Net
31,536 
37,524 
Weighted-Average Useful Life (years)
9 years 
9 years 
Non-competition Agreement [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross
1,692 
1,765 
Accumulated Amortization
(1,596)
(1,588)
Intangible assets, Net
$ 96 
$ 177 
Weighted-Average Useful Life (years)
4 years 
4 years 
Goodwill and Other Intangible Assets (Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
 
Amortization expense
$ 5,287 
$ 5,941 
$ 16,249 
$ 17,972 
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
 
 
2013
21,510 
 
21,510 
 
2014
20,507 
 
20,507 
 
2015
19,687 
 
19,687 
 
2016
15,118 
 
15,118 
 
2017
10,579 
 
10,579 
 
2018
$ 8,593 
 
$ 8,593 
 
Income Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
1 
9 
19 
93 
Earnings Per Share, Basic [Abstract]
 
 
 
 
Net income attributable to Morningstar, Inc.
$ 31,463 
$ 27,070 
$ 92,202 
$ 75,095 
Less: Distributed Earnings Available to Participating Securities
0 
(12)
(5)
(39)
Less: Undistributed earnings allocated to participating securities
(11)
(53)
(29)
(144)
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders
31,452 
27,005 
92,168 
74,912 
Weighted average common shares outstanding
46,080 
47,975 
46,293 
49,028 
Basic net income per share attributable to Morningstar, Inc.
$ 0.68 
$ 0.56 
$ 1.99 
$ 1.53 
Earnings Per Share, Diluted [Abstract]
 
 
 
 
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders
31,452 
27,005 
92,168 
74,912 
Add: Undistributed Earnings Allocated To Participating Securities
11 
53 
29 
144 
Less: Undistributed Earnings Reallocated to Participating Securities
(11)
(53)
(29)
(142)
Numerator for diluted net income per share - undistributed and distributed earnings available to common shareholders
$ 31,452 
$ 27,005 
$ 92,168 
$ 74,914 
Weighted average common shares outstanding
46,080 
47,975 
46,293 
49,028 
Net effect of dilutive stock options and restricted stock units
439 
506 
342 
636 
Weighted average common shares outstanding for computing diluted income per share
46,519 
48,481 
46,635 
49,664 
Diluted net income per share attributable to Morningstar, Inc.
$ 0.68 
$ 0.56 
$ 1.98 
$ 1.51 
Stock Options [Member]
 
 
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
0 
9 
0 
12 
Restricted Stock Units (RSUs) [Member]
 
 
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
1 
0 
19 
81 
Restricted Stock [Member]
 
 
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
0 
0 
0 
0 
Segment and Geographical Area Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
$ 173,482 
$ 160,952 
$ 517,766 
$ 487,679 
 
Stock-based compensation expense
3,416 
3,994 
11,153 
11,594 
 
Depreciation and amortization
11,257 1
10,822 1
33,858 
31,616 
 
Operating income (loss)
44,613 
39,864 
128,757 
111,399 
 
Payments to Acquire Property, Plant, and Equipment
 
 
27,950 
22,876 
 
Segment Reporting Information, Additional Information [Abstract]
 
 
 
 
 
Goodwill
326,741 
 
326,741 
 
320,845 
U.S. [Member]
 
 
 
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
124,998 
114,021 
372,746 
346,442 
 
Non-U.S. [Member]
 
 
 
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
48,484 
46,931 
145,020 
141,237 
 
Investment Management [Member]
 
 
 
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
36,266 
32,560 
105,434 
99,211 
 
Investment Information [Member]
 
 
 
 
 
Segment Reporting Information, Operating Income (Loss) [Abstract]
 
 
 
 
 
External revenue
$ 137,216 
$ 128,392 
$ 412,332 
$ 388,468 
 
Segment, Enterprise-Wide, and Geographical Area Information Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
$ 173,482 
$ 160,952 
$ 517,766 
$ 487,679 
 
Long-lived assets
99,007 
 
99,007 
 
84,022 
United States
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
124,998 
114,021 
372,746 
346,442 
 
Long-lived assets
77,713 
 
77,713 
 
60,371 
Non United States [Member]
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
48,484 
46,931 
145,020 
141,237 
 
Long-lived assets
21,294 
 
21,294 
 
23,651 
United Kingdom
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
14,148 
13,711 
41,316 
42,160 
 
Long-lived assets
6,611 
 
6,611 
 
7,435 
Europe excluding the United Kingdom [Member]
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
14,666 
11,643 
41,826 
35,980 
 
Long-lived assets
2,061 
 
2,061 
 
2,356 
Australia
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
8,041 
10,090 
26,569 
29,230 
 
Long-lived assets
1,184 
 
1,184 
 
1,402 
Canada
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
7,603 
7,605 
23,151 
22,351 
 
Long-lived assets
1,400 
 
1,400 
 
1,773 
Asia excluding Japan
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
2,580 
2,420 
7,836 
7,156 
 
Long-lived assets
9,863 
 
9,863 
 
10,445 
Japan
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
783 
924 
2,400 
2,889 
 
Long-lived assets
45 
 
45 
 
84 
Other
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
External revenue
663 
538 
1,922 
1,471 
 
Long-lived assets
$ 130 
 
$ 130 
 
$ 156 
Investments and Fair Value Measurements (Classification of Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Fair Value Disclosures [Abstract]
 
 
Available-for-sale
$ 129,316 
$ 125,786 
Held-to-maturity
29,307 
26,357 
Trading securities
7,295 
5,386 
Total
$ 165,918 
$ 157,529 
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Available-for-sale:
 
 
 
 
 
Available-for-sale securities, Cost
$ 126,411 
 
$ 126,411 
 
$ 124,557 
Available-for-sale Securities, Unrealized Gain
3,417 
 
3,417 
 
2,517 
Available-for-sale Securities, Unrealized Loss
(512)
 
(512)
 
(1,288)
Available-for-sale securities, Fair Value
129,316 
 
129,316 
 
125,786 
Held-to-maturity:
 
 
 
 
 
Held-to-maturity securities, Cost
29,307 
 
29,307 
 
26,357 
Held-to-maturity Securities, Unrecognized Gain
0 
 
0 
 
0 
Held-to-maturity Securities, Unrecognized Loss
0 
 
0 
 
0 
Held-to-maturity securities, Fair Value
29,307 
 
29,307 
 
26,357 
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
 
 
 
 
 
Available-for-sale securities, realized gains
94 
219 
2,320 
689 
 
Available-for-sale securities, realized losses
(136)
(222)
(1,214)
(741)
 
Available-for-sale securities, realized gains (losses), net
(42)
(3)
1,106 
(52)
 
Government Obligations [Member]
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
Available-for-sale securities, Cost
28,515 
 
28,515 
 
40,669 
Available-for-sale Securities, Unrealized Gain
8 
 
8 
 
29 
Available-for-sale Securities, Unrealized Loss
(24)
 
(24)
 
(608)
Available-for-sale securities, Fair Value
28,499 
 
28,499 
 
40,090 
Corporate Bonds [Member]
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
Available-for-sale securities, Cost
67,763 
 
67,763 
 
49,339 
Available-for-sale Securities, Unrealized Gain
13 
 
13 
 
36 
Available-for-sale Securities, Unrealized Loss
(223)
 
(223)
 
(292)
Available-for-sale securities, Fair Value
67,553 
 
67,553 
 
49,083 
Foreign Government Debt Securities [Member]
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
Available-for-sale securities, Cost
1,297 
 
1,297 
 
2,437 
Available-for-sale Securities, Unrealized Gain
0 
 
0 
 
1 
Available-for-sale Securities, Unrealized Loss
(16)
 
(16)
 
(19)
Available-for-sale securities, Fair Value
1,281 
 
1,281 
 
2,419 
Commercial Paper [Member]
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
Available-for-sale securities, Cost
9,986 
 
9,986 
 
2,000 
Available-for-sale Securities, Unrealized Gain
0 
 
0 
 
0 
Available-for-sale Securities, Unrealized Loss
(1)
 
(1)
 
0 
Available-for-sale securities, Fair Value
9,985 
 
9,985 
 
2,000 
Equity Securities and Exchange-traded Funds [Member]
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
Available-for-sale securities, Cost
8,226 
 
8,226 
 
19,613 
Available-for-sale Securities, Unrealized Gain
1,001 
 
1,001 
 
1,359 
Available-for-sale Securities, Unrealized Loss
(156)
 
(156)
 
(323)
Available-for-sale securities, Fair Value
9,071 
 
9,071 
 
20,649 
Mutual Funds [Member]
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
Available-for-sale securities, Cost
10,624 
 
10,624 
 
10,499 
Available-for-sale Securities, Unrealized Gain
2,395 
 
2,395 
 
1,092 
Available-for-sale Securities, Unrealized Loss
(92)
 
(92)
 
(46)
Available-for-sale securities, Fair Value
$ 12,927 
 
$ 12,927 
 
$ 11,545 
Investments and Fair Value Measurements (Cost and Fair Value of Investments Classified by Maturity) (Details) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Available-for-sale Securities, Debt Maturities [Abstract]
 
 
Available-for-sale securities, Due in one year or less, Cost
$ 53,470,000 
$ 87,599,000 
Available-for-sale securities, Due in one year or less, Fair Vlaue
53,308,000 
86,784,000 
Available-for-sale securities, Due in one to two years, Cost
54,091,000 
6,846,000 
Available-for-sale securities, Due in one to two years, Fair Value
54,010,000 
6,808,000 
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Cost
18,850,000 
30,112,000 
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Fair Value
21,998,000 
32,194,000 
Available-for-sale securities, Cost
126,411,000 
124,557,000 
Available-for-sale securities, Fair Value
129,316,000 
125,786,000 
Held-to-maturity Securities, Debt Maturities [Abstract]
 
 
Held-to-maturity securities, Due in one year or less, Cost
29,303,000 
26,352,000 
Held-to-maturity securities, Due within one year or less, Fair Value
29,303,000 
26,352,000 
Held-to-maturity securities, Due in one to three years, Cost
4,000 
5,000 
Held-to-maturity securities, Due in one to three years, Fair Value
4,000 
5,000 
Held-to-maturity securities, Cost
29,307,000 
26,357,000 
Held-to-maturity securities, Fair Value
29,307,000 
26,357,000 
Certificate of deposit held as collateral against Australia office lease
$ 1,500,000 
 
Investments and Fair Value Measurements (Unrealized Gains on Trading Securities) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
 
 
Unrealized gains (losses), net
$ (741)
$ 181 
$ (468)
$ 337 
Investments and Fair Value Measurements (Fair Value of Assets) (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Estimate of Fair Value Measurement [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading securities, fair value
$ 7,295 
$ 5,386 
Cash equivalents, fair value
18,990 
398 
Total investments, fair value
155,601 
131,570 
Estimate of Fair Value Measurement [Member] |
Government Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
28,499 
40,090 
Estimate of Fair Value Measurement [Member] |
Corporate Bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
67,553 
49,083 
Estimate of Fair Value Measurement [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
9,985 
2,000 
Estimate of Fair Value Measurement [Member] |
Equity Securities and Exchange-traded Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
9,071 
20,649 
Estimate of Fair Value Measurement [Member] |
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
12,927 
11,545 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading securities, fair value
7,295 
5,386 
Cash equivalents, fair value
18,990 
398 
Total investments, fair value
48,283 
37,978 
Fair Value, Inputs, Level 1 [Member] |
Government Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Corporate Bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Equity Securities and Exchange-traded Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
9,071 
20,649 
Fair Value, Inputs, Level 1 [Member] |
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
12,927 
11,545 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading securities, fair value
0 
0 
Cash equivalents, fair value
0 
0 
Total investments, fair value
107,318 
93,592 
Fair Value, Inputs, Level 2 [Member] |
Government Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
28,499 
40,090 
Fair Value, Inputs, Level 2 [Member] |
Corporate Bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
67,553 
49,083 
Fair Value, Inputs, Level 2 [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
9,985 
2,000 
Fair Value, Inputs, Level 2 [Member] |
Equity Securities and Exchange-traded Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading securities, fair value
0 
0 
Cash equivalents, fair value
0 
0 
Total investments, fair value
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Government Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Corporate Bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Equity Securities and Exchange-traded Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Foreign Government Debt Securities [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
1,281 
2,419 
Foreign Government Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
0 
0 
Foreign Government Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
1,281 
2,419 
Foreign Government Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities, fair value
$ 0 
$ 0 
Investments in Unconsolidated Entities (Details)
3 Months Ended 9 Months Ended 0 Months Ended
Sep. 30, 2013
USD ($)
Sep. 30, 2012
USD ($)
Sep. 30, 2013
USD ($)
Sep. 30, 2012
USD ($)
Dec. 31, 2012
USD ($)
Sep. 30, 2013
Morningstar Japan KK [Member]
USD ($)
Sep. 30, 2013
Morningstar Japan KK [Member]
JPY (¥)
Dec. 31, 2012
Morningstar Japan KK [Member]
USD ($)
Dec. 31, 2012
Morningstar Japan KK [Member]
JPY (¥)
Sep. 30, 2013
Other Equity Method Investments [Member]
USD ($)
Dec. 31, 2012
Other Equity Method Investments [Member]
USD ($)
Sep. 30, 2013
YCharts [Member]
Dec. 31, 2012
YCharts [Member]
Dec. 31, 2012
Morningstar Sweden AB [Member]
Sep. 30, 2013
Inquiry Financial Europe AB [Member]
Dec. 31, 2012
Inquiry Financial Europe AB [Member]
May 3, 2013
Morningstar Sweden AB [Member]
USD ($)
Mar. 31, 2013
Morningstar Sweden AB [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity method investments
 
 
 
 
 
$ 21,359,000 
 
$ 20,540,000 
 
$ 6,322,000 
$ 6,288,000 
 
 
 
 
 
 
 
Cost method investments
10,695,000 
 
10,695,000 
 
8,477,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investments in unconsolidated entities
38,376,000 
 
38,376,000 
 
35,305,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity method investment, ownership percentage
 
 
 
 
 
34.00% 
34.00% 
34.00% 
34.00% 
 
 
22.00% 
22.00% 
24.00% 
34.00% 
34.00% 
100.00% 
24.00% 
Ownership interest acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
76.00% 
 
Equity method investment, approximate market value
 
 
 
 
 
87,123,000 
8,558,222,000 
36,227,000 
3,109,579,000 
 
 
 
 
 
 
 
 
 
Equity-method investments, other than temporary impairment
 
 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of equity and cost method investments
 
 
2,751,000 
10,304,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost-method investments, other than temporary impairment
 
 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investments Holding Gain
$ (78,000)
$ 0 
$ 3,635,000 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
$ 3,635,000 
 
Stock-Based Compensation (Shares Available For Future Grants) (Details)
In Thousands, unless otherwise specified
Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Shares available for future grants
4,563 
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs by Plan) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Allocated Share-based Compensation Expense
$ 3,416 
$ 3,994 
$ 11,153 
$ 11,594 
Income tax benefit related to the stock-based compensation expense
846 
931 
2,944 
2,735 
Restricted Stock Units (RSUs) [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Allocated Share-based Compensation Expense
3,196 
3,396 
10,493 
9,944 
Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Allocated Share-based Compensation Expense
97 
444 
291 
1,332 
Stock Options [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Allocated Share-based Compensation Expense
$ 123 
$ 154 
$ 369 
$ 318 
Stock-Based Compensation (Schedule of Unrecognized Stock-based Compensation Expense) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
$ 33,525 
Expected amortization period (months)
33 years 
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
32,203 
Expected amortization period (months)
34 years 
Restricted Stock [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
614 
Expected amortization period (months)
19 years 
Stock Options [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized stock-based compensation expense
$ 708 
Expected amortization period (months)
19 years 
Stock-Based Compensation (Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $)
9 Months Ended
Sep. 30, 2013
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
 
RSUs outstanding, Beginning Balance, Unvested
727,145 
RSUs outstanding, Beginning Balance, Vested but Deferred
18,782 
RSUs outstanding, Beginning Balance, Total
745,927 
RSUs outstanding, Beginning Balance, Weighted Average Grant Date Valueper RSU
53.37 
Granted, Unvested
244,364 
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Grants In Period
0 
Granted, Total
244,364 
Granted, Weighted Average Grant Date Valueper RSU
$ 69.99 
Dividend equivalents, Unvested
2,090 
Dividend equivalents, Vestedd but Deferred
63 
Dividend equivalents, Total
2,153 
Dividend equivalents, Weighted Average Grant Date Valueper RSU
$ 55.69 
Vested, Unvested
(256,105)
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Vested In Period
0 
Vested, Total
(256,105)
Vested, Weighted Average Grant Date Valueper RSU
$ 49.82 
Vested but deferred, Unvested
0 
Vested but deferred, Vested but Deferred
0 
Vested but deferred, Total
0 
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested but Deferred Weighted Average Grant Date Fair Value
$ 0.00 
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Nonvested Issued in Period
0 
Issued, Vested but Deferred
(2,257)
Issued, Total
(2,257)
Issued, Weighted Average Grant Date Valueper RSU
$ 49.40 
Forfeited, Unvested
(42,862)
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Forfeited In Period
0 
Forfeited, Total
(42,862)
Forfeited, Weighted Average Grant Date Valueper RSU
$ 57.43 
RSUs outstanding, Ending Balance, Unvested
674,632 
RSUs outstanding, Ending Balance, Vested but Deferred
16,588 
RSUs outstanding, Ending Balance, Total
691,220 
RSUs outstanding, Ending Balance, Weighted Average Grant Date Valueper RSU
60.40 
Stock-Based Compensation (Stock Option Activity) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Intrinsic Value of Options Exercised [Abstract]
 
 
Intrinsic value of options exercised
$ 8,964 
$ 17,161 
Options Granted At Discount [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Options outstanding, Beginning Balance, Underlying Shares
282,695 
 
Granted, Underlying Shares
0 
 
Canceled, Underlying Shares
(250)
 
Exercised, Underlying Shares
(40,942)
 
Options outstanding, Ending Balance, Underlying Shares
241,503 
 
Options, Weighted Average Exercise Price [Abstract]
 
 
Options outstanding, Beginning Balance, Weighted Average Exercise Price
$ 20.55 
 
Granted, Weighted Average Exercise Price
$ 0.00 
 
Canceled, Weighted Average Exercise Price
$ 21.25 
 
Exercised, Weighted Average Exercise Price
$ 20.77 
 
Options outstanding, Ending Balance, Weighted Average Exercise Price
$ 21.24 
 
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract]
 
 
Options exercisable, Underlying Shares
241,503 
 
Options exercisable, Weighted Average Exercise Price
$ 21.24 
 
Option Grants Excluding Options Granted at Discount [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Options outstanding, Beginning Balance, Underlying Shares
391,784 
 
Granted, Underlying Shares
0 
 
Canceled, Underlying Shares
(1,352)
 
Exercised, Underlying Shares
(133,219)
 
Options outstanding, Ending Balance, Underlying Shares
257,213 
 
Options, Weighted Average Exercise Price [Abstract]
 
 
Options outstanding, Beginning Balance, Weighted Average Exercise Price
$ 28.98 
 
Granted, Weighted Average Exercise Price
$ 0.00 
 
Canceled, Weighted Average Exercise Price
$ 16.08 
 
Exercised, Weighted Average Exercise Price
$ 16.59 
 
Options outstanding, Ending Balance, Weighted Average Exercise Price
$ 36.15 
 
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract]
 
 
Options exercisable, Underlying Shares
221,166 
 
Options exercisable, Weighted Average Exercise Price
$ 32.66 
 
Stock-Based Compensation (Additional Information on Options) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Closing stock price used to calculate intrinsic value
$ 79.26 
Range One [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices
$8.57 - $14.70 
Range of Exercise Prices, Lower Limit
$ 8.57 
Range of Exercise Prices, Upper Limit
$ 14.70 
Options Outstanding, Number of Options
385 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
0 years 11 months 1 day 
Options Outstanding, Weighted Average Exercise Price
$ 13.11 
Options Outstanding, Aggregate Intrinsic Value
$ 25 
Options Exercisable, Exercisable Shares
385 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
0 years 11 months 1 day 
Options Exercisable, Weighted Average Exercise Price
$ 13.11 
Options Exercisable, Aggregate Intrinsic Value
25 
Range Two [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices
$21.18 - $48.37 
Range of Exercise Prices, Lower Limit
$ 20.96 
Range of Exercise Prices, Upper Limit
$ 47.86 
Options Outstanding, Number of Options
426,656 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
1 year 4 months 21 days 
Options Outstanding, Weighted Average Exercise Price
$ 24.15 
Options Outstanding, Aggregate Intrinsic Value
23,513 
Options Exercisable, Exercisable Shares
426,656 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
1 year 4 months 21 days 
Options Exercisable, Weighted Average Exercise Price
$ 24.15 
Options Exercisable, Aggregate Intrinsic Value
23,513 
Range Three [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices
$57.28 - $59.35 
Range of Exercise Prices, Lower Limit
$ 57.28 
Range of Exercise Prices, Upper Limit
$ 59.35 
Options Outstanding, Number of Options
71,675 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
7 years 9 months 11 days 
Options Outstanding, Weighted Average Exercise Price
$ 57.46 
Options Outstanding, Aggregate Intrinsic Value
1,563 
Options Exercisable, Exercisable Shares
35,628 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
7 years 9 months 4 days 
Options Exercisable, Weighted Average Exercise Price
$ 57.37 
Options Exercisable, Aggregate Intrinsic Value
750 
Range Four [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices
$8.57 - $59.35 
Range of Exercise Prices, Lower Limit
$ 8.57 
Range of Exercise Prices, Upper Limit
$ 59.35 
Options Outstanding, Number of Options
498,716 
Options Outstanding, Weighted Average Remaining Contractual Term (years)
2 years 3 months 22 days 
Options Outstanding, Weighted Average Exercise Price
$ 28.93 
Options Outstanding, Aggregate Intrinsic Value
25,101 
Options Exercisable, Exercisable Shares
462,669 
Options Exercisable, Weighted Average Remaining Contractual Life (years)
1 year 10 months 17 days 
Options Exercisable, Weighted Average Exercise Price
$ 26.70 
Options Exercisable, Aggregate Intrinsic Value
24,288 
Vested or Expected to Vest [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices, Lower Limit
$ 8.57 
Range of Exercise Prices, Upper Limit
$ 59.35 
Vested or Expected to Vest, Range of Exercise Prices
$8.57 - $59.35 
Vested or Expected to Vest, Number of Options
498,716 
Vested or Expected to Vest, Weighted Average Remaining Contractual Life (years)
2 years 3 months 22 days 
Vested or Expected to Vest, Weighted Average Exercise Price
$ 28.93 
Vested or Expected to Vest, Aggregate Intrinsic Value
$ 25,101 
Income Taxes (Income Tax Reconciliation and Unrecognized Tax Benefits) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
 
 
 
Income before income taxes and equity in net income of unconsolidated entities
$ 45,384 
$ 41,744 
$ 133,584 
$ 114,933 
 
Equity in net income of unconsolidated entities
315 
478 
1,172 
1,541 
 
Net (income) loss attributable to the noncontrolling interest
29 
34 
93 
62 
 
Total
45,728 
42,256 
134,849 
116,536 
 
Income tax expense
14,265 
15,186 
42,647 
41,441 
 
Effective income tax rate
31.20% 
35.90% 
31.60% 
35.60% 
 
Effective income tax rate reconciliation, change in percentage points compared with prior year period
 
(4.7)
 
 
 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract]
 
 
 
 
 
Current liabilities
6,646 
 
6,646 
 
6,568 
Non-current liabilities
7,758 
 
7,758 
 
5,659 
Total liability for unrecognized tax benefits
$ 14,404 
 
$ 14,404 
 
$ 12,227 
Income Taxes (Income Tax Contingency) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Income Tax Disclosure [Abstract]
 
 
Gross unrecognized tax benefits
$ 14,880 
$ 12,699 
Gross unrecognized tax benefits which would affect income tax expense
14,880 
12,699 
Decrease in income tax expense upon recognition of gross unrecognized tax benefits
$ 12,323 
$ 10,446 
Contingencies (Details) (Pending Litigation [Member], Business Logic Holding Corporation [Member], USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Pending Litigation [Member] |
Business Logic Holding Corporation [Member]
 
Loss Contingencies [Line Items]
 
Range of possible loss, minimum
$ 0 
Range of possible loss, maximum
5.4 
Damages sought, value
$ 84 
Share Repurchase Program (Details) (USD $)
1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2010
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Dec. 31, 2011
Share Repurchase Program [Abstract]
 
 
 
 
 
 
 
Common stock, dividends, per share, declared
 
$ 0.00 
$ 0.10 
$ 0.25 
$ 0.30 
 
 
Share repurchase program, authorized amount
$ 100,000,000 
 
 
 
 
$ 500,000,000 
$ 300,000,000 
Increase to share repurchase rogram, authorized amount
 
 
 
 
 
200,000,000 
200,000,000 
Shares repurchased, program life to date, shares
 
5,885,886 
 
5,885,886 
 
 
 
Shares repurchased, program life to date, value
 
$ 359,064,000 
 
$ 359,064,000 
 
 
 
Subsequent Events (Details)
3 Months Ended 9 Months Ended 0 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Oct. 4, 2013
Subsequent Event [Member]
Subsequent Event [Line Items]
 
 
 
 
 
Common stock, dividends, per share, declared
$ 0.00 
$ 0.10 
$ 0.25 
$ 0.30 
$ 12.5